FirstBauxite Completes Bonasika Bauxite Project Feasibility Study Update

First Bauxite Corporation (TSXV: FBX) is pleased to announce the completion of the feasibility study for the completion of the Bonasika bauxite project and to announce significant improvements resulting from the inclusion of Bonasika 6 and 7 deposits in the economic analysis. In the past year, the company has been working hard to optimize and update the Bonasika feasibility study announced last year and to extract refractory grade bauxite from its 100% Bonasika project in Guyana, South America, and to produce 100,000 tons of sinter bauxite per year. The recently completed Bank Acceptable Feasibility Study Update (BFSU) was prepared by Met-Chem Canada Inc. (“Met-Chem”) under the supervision of G Mining Services (“GMining”) and supported by an independent advisory panel.

In September 2010, First Bauxite released an NI 43-101 technical report titled “The Bonasika Project Feasibility Study (BFS) in Guyana”, which was also completed by Met-Chem, which outlines from Bonasika 1, Bonasika 2 Feasibility study results for the exploitation of refractory grade bauxite in the Bonasika 5 deposit. During the 2010 study, the company also conducted additional investigations and drilling of Bonasika 6 and 7 deposits. The results show that Bonasika 7 is a large deposit with reserves double that of Bonasika 1, 2 & 5. Although the mineral in Bonasika 7 is buried under a thick cover, it is of good quality and can be selectively mined. In addition, the iron content is low enough so that no magnetic separation is required. As a result, First Bauxite has updated the 2010 BFS to include the resources and reserves of the Bonasika 6 and 7 deposits in the economic analysis and change the mining plan to first exploit the Bonasika 7 deposit. The annual production target for sinter bauxite remains at 100,000 tons.

Feasibility study update

Calcination or sintering of refractory bauxite is an extremely important industrial mineral used in the manufacture of thermal, chemical and/or physical resistant materials (refractories). Fire-resistant products are mainly used as furnace linings or other high-temperature vessels. These industrial processes are carried out in environments where extreme temperatures are high and/or corrosion needs to be avoided. Therefore, all pyrometallurgy (iron, aluminum, copper, nickel, etc.), ceramics, refractory building bricks, cement, and glass that are used to extract metals from ores, as well as petroleum cracking converted into their basic components, are dependent on refractory products.

The BFSU is based on the assessment of NI 43-101 mineral resources and mineral reserves within the Bonasika 1, 2, 5, 6 & 7 deposits. The BFSU established and confirmed the economic feasibility of bauxite mining and sintering operations based on the orderly mining of the Bonashika deposit. The sintered bauxite finished product production level will remain at 100,000 tons per year and will be sold under the trade name GUYSIN®. Mining will begin with the Bonasika 7 deposit, which has a life of 22 years.

The BFSU considered all aspects related to project development, including in situ geology, mining, metallurgy, processing and engineering, economics, marketing and logistics, social and other economic factors.

Contributors

The BFSU is based on technical information obtained by Met-Chem, a number of other independent consulting companies (with complementary domain-specific expertise) and support from First Bauxite personnel.

BFSU highlights include:

- Exploration work within the five Bonasika deposits supervised by Aluminpro indicated that there were approximately 12.8 million tons of measured and indicated mineral resources in its deposits.

——The annual production level of the Sand Hills processing plant is 100,000 tons of sintered refractory bauxite.

- The total capital cost of the project is approximately $160.8 million, of which 36.9 million is capital maintenance.

- The direct operating cost is about $211.04 per ton

- Project financial analysis shows that according to the average selling price of $475/ton, the project's internal rate of return is 18.7% (before tax) and taxes are 17.7%.

- The payback period is approximately 5 years.