First Bauxite Corporation Announces Signing Letter of Intent to Enter Into Its First Sintered Bauxite Supply Off-Take Agreement

First Bauxite Corporation CA:FBX -7.14% (frankfurt:FBI)(berlin:FBI) ("First Bauxite" or the "Company") is pleased to announce that it has signed a Letter of Intent ("LOI") to enter into its first Sintered Bauxite Supply Off-Take Agreement ("Off-Take Agreement") with a global refractory products manufacturer (the "Customer"). The LOI commits both the Company and the Customer to conclude a multi-year Off-Take Agreement within six months from the date of signing based on terms which have been set out in the LOI. The LOI reflects the recognition by the Customer that FBX is in the process of securing "Bankable" Off-Take Agreements to underpin the debt component of its project financing plan.

"The Customer is a leading producer of shaped and monolithic refractories and a significant purchaser of refractory bauxite," stated Hilbert N. Shields, President and CEO. "The Customer's strategic interest in becoming First Bauxite's inaugural consumer is gratifying in that it further validates the high quality of First Bauxite's expected Guysin(R) product from a prominent end-user of refractory bauxite."

First Bauxite has received feedback from a number of potential customers on all continents who are end users of the Company's Guysin(R) product and to whom "lab-scale" manufactured Guysin(R) samples were distributed for qualifying in their own test facilities. The responses have been very positive and have generated requests for larger samples that can be integrated and "works tested" in their benchmarked product lines.

Mr. Ioannis (Yannis) Tsitos, Interim Chairman, commented, "The execution of this first LOI represents an important step towards securing project financing to bring the Bonasika refractory bauxite mine into production. Along with the recently announced Bankable Feasibility Study Update, receipt of the Environmental Permit, and the signing of the Mineral Agreement in Guyana, the conversion of market interest in Guysin(R) into a Sintered Bauxite Supply Off-Take Agreements is a significant milestone in enabling First Bauxite to develop this world-class project."