The year-over-year change was primarily a result of the significant foreign exchange gain on translation in the value of Canadian and South African assets, liabilities, revenues and expenses converted to US dollars, which strengthened against the South African rand and the Canadian dollar during the year. The higher revenue from increased gold sales also contributed to reducing the size of the consolidated loss in FY 2009. The gain on translation more than offset the decrease in interest income during the year.

Production increased in FY 2009 relative to FY 2008, as the gold plant at the Ezulwini Mine commenced gold production in Q3 2009 and the processing of tailings at Mine Waste Solutions (MWS) continued to improve. Notwithstanding the progress made, neither the Ezulwini Mine nor MWS were operating at full production capacity during FY 2009.

Revenue for FY 2009 was generated from the sale of gold from the MWS operations and, beginning in Q3 2009, also included a limited amount of revenue from the sale of gold from the Ezulwini Mine. Prior to Q3 2009, the Ezulwini Mine was still in a ramp-up phase and did not achieve commercial levels of production. Consequently, results from the mining operations at the Ezulwini Mine were only included in the consolidated results for the second half of FY 2009, but since the mine had not yet achieved full production capacity, this operation generated a substantial loss due to the mine’s fixed operating costs being spread over a limited amount of early-stage production. Gross profit from MWS increased year over year by 309% as a result of increased throughput and gold sales, but was not sufficient to offset the negative operating results from the Ezulwini Mine. The company had no uranium production during FY 2008 or FY 2009.

Gordon Miller, First Uranium’s president and chief executive officer commented, “While not yet recording positive cash flow and earnings, we are encouraged that our financial performance is headed in the right direction and reflects our status as a gold producer at both operations and that, with the startup of uranium production, the majority of our capital expenditures at the Ezulwini Mine are now behind us. We expect that operating profit and cash flow will benefit from the completion of the significant capital expenditure programs at the Ezulwini Mine in FY 2009 and at MWS in FY 2010.”

The revenues and related costs derived from the gold processing plant were included in the company’s financial results beginning Q3 2009.

As mine production was in the early stages of development and management had decided to focus on the completion of the refurbishment of the shaft, the time available for active mining was limited so that the Ezulwini Mine recorded reduced tonnages and higher than planned Cash Costs (as defined in note (b) to the table above) of $2,032 per ounce in Q4 2009 and $1,919 per ounce in FY 2009. Consequently the Ezulwini Mine incurred a gross loss of $4.9 million in Q4 2009 and $11.1 million in FY 2009, respectively. It is anticipated that the high unit costs will decrease and operating and financial performance will improve significantly as the underground mining, development and production activities increase.

In Q4 2009, the Ezulwini Mine sold 4,267 ounces of gold, contributing to the 10,082 ounces of gold sold during FY 2009, compared to a plan of 19,001 ounces. The lower than planned gold sales were primarily due to limited mining activity and the processing of the low-grade surface stockpiles, while the shaft rehabilitation work was being completed.

At MWS, the company achieved 94.3% of its gold sales forecast during FY 2009 and showed significant improvement in its financial results. Gold sold by MWS in FY 2009 was 42,857 ounces compared to a plan of 45,461 ounces. Decreased throughput, grade and recovery during Q4 2009 compared to Q3 2009 were primarily the result of lower feed grade and higher clay content, combined with intermittent work stoppages due to unusually severe thunderstorms during the rainy season.

MWS generated $9.9 million of revenue from 10,417 ounces of gold sold at an average selling price of $948 per ounce in Q4 2009 compared to $6.4 million from 7,263 ounces of gold sold at an average selling price of $876 per ounce in Q4 2008. During FY 2009, MWS generated $37.8 million of revenue from 42,857 ounces of gold sold at an average selling price of $881 per ounce compared to $21.4 million from 28,094 ounces of gold sold at an average selling price of $874 per ounce in FY 2008. Pursuant to the Gold Stream Transaction, the ounces delivered by MWS into the contract during Q4 2009 were accounted for in revenue at the gold spot rate per ounce at the time of delivery and the proceeds from these ounces were used to settle against a derivative liability. If the ounces delivered into the Gold Stream Transaction were recognized at $400 per ounce as per the agreement, then the average selling price would have been $815 per ounce.

A total of 43,099 ounces of gold were produced at MWS in FY 2009 at an average Cash Cost of $397 per ounce compared to 28,192 ounces of gold produced during FY 2008 at an average Cash Cost of $535 per ounce. The increased revenues as well as the reduction in operating costs at MWS (despite the inclusion of $1.7 million of costs related to the Gold Stream Transaction) resulted in the significant increase in gross profit from tailings processed at MWS from $4.8 million in FY 2008 to $19.8 million in FY 2009.

At the end of FY 2009, First Uranium had total assets of $566.5 million, total liabilities of $296.4 million and shareholders’ equity of $270.1 million. The company had cash and cash equivalents of $112.0 million compared to $164.7 million at the end of FY 2008. The company currently holds its funds in cash and bank-sponsored guaranteed investment certificates with Canadian and South African banks. The decrease in cash and cash equivalents from the end of FY 2008 to the end of FY 2009 was the net result of $211.3 million of cash utilized during FY 2009 on capital expenditures for the ongoing development of the company’s two mining operations partially offset by the $170.9 million from financing activities.

The cash utilized in operating activities during FY 2009 was primarily attributable to the overall increase in operating costs, which more than offset the cash generated from gold sales. The cash generated from operating activities during FY 2008 was mainly the result of the net interest earned on cash balances during the year and the payment by associate company, Simmer and Jack Mine, Limited, of an outstanding receivable.

In February 2009, the company raised net proceeds of $47.6 million from a private placement of 20.5 million units at Cdn$3.00 per unit, each unit comprised of one common share and one-half of a common share purchase warrant. In March, 2009, the company also received the gross amount of $75 million as the second tranche payment pursuant to the Gold Stream Transaction.

Operational Overview

During Q4 2009, First Uranium:

At the Ezuwlini Mine, milled 108,622 tonnes of ore at an average recovered grade of 1.22 grams of gold per tonne, producing 4,267 ounces of gold;

At MWS treated a total of 1.7 million tonnes of tailings through the gold plant at an average recovered grade of 0.19 grams of gold per tonne, producing a total of 10,513 ounces of gold at a Cash Cost of $379 per ounce;

Installed and connected 10 MW of diesel-fired electrical power generators at the Ezulwini Mine and installed a 30 MW power plant at MWS; and

In line with the accelerated schedule, completed key elements of the rehabilitation of the Ezulwini Mine shaft, which allowed the shaft to be dedicated entirely to the development and mining of the Middle Elsburg and Upper Elsburg ore bodies.