First Bauxite Corporation Announces Non-Brokered Private Placement

First Bauxite Corporation announces that, further to its news release issued May 23, 2012, it has now closed the non-brokered private placement (the "Private Placement") to Resource Capital Fund V LP and certain entities comprising the Pacific Road Resources Funds for a total of 22,641,510 units (the "Units") at a price of $0.53 per Unit raising a total of $12,000,000. Each Unit consists of one common share and one-half of a transferable common share purchase warrant (a "Warrant"). Each whole Warrant is exercisable for one additional common share (a "Warrant Share") of the Company until October 12, 2015, at an exercise price of $0.75 per Warrant Share.

In connection with the Private Placement, a fee of $210,000 was paid in cash to Pacific Road Capital Management Pty Limited, manager and/or advisor to the entities comprising the Pacific Road Resources Funds, and 396,226 Units at a deemed price of $0.53 per Unit were issued to Resource Capital Fund V LP instead of a cash fee, with each Unit having the same terms and conditions as the Units issued under the Private Placement with the exception of the warrants, which are non-transferable. The common shares and Warrants issued pursuant to the Private Placement and as fees are subject to a statutory hold period which expires on October 13, 2012.

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

The 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.