First Bauxite Corporation Announces Non-Brokered Private Placement

First Bauxite Corporation announces that the Company is proceeding with a non-brokered private placement (the "Private Placement") to Resource Capital Fund V LP and certain entities comprising the Pacific Road Resources Funds for up to 22,641,510 units (the "Units") at a price of $0.53 per Unit to raise total proceeds of $12,000,000. Each Unit will consist of one common share and one-half of a transferable common share purchase warrant (a "Warrant"). Each whole Warrant will be exercisable for one additional common share (a "Warrant Share") of the Company for a period of 36 months following the closing of the Private Placement, at an exercise price of $0.75 per Warrant Share.

A fee equal to 3.5% of the gross proceeds will be paid in cash or the equivalent value of Units to certain parties on completion of the Private Placement.

The Private Placement is subject to the approval of the TSX Venture Exchange.

Net proceeds of the Private Placement will be used primarily to fund the continued development of the Company's Bonasika refractory grade bauxite property in Guyana, as well as general working capital expenses.

Funds used for the Bonasika property will include the commencement of the Engineering Project Construction Management work, including front end detailed engineering and design of the mine plant and processes, in addition to the preparation of bulk sampling for distribution to potential customers, and commercial debt financing and marketing activities.