Pacific Road Resources funds announce exchange of convertible notes in First Bauxite Corporation

The Pacific Road Resources Funds announce that PRRF has exchanged the non-interest bearing convertible notes issued by First Bauxite Corporation in the aggregate principal amount of $8,000,000, which were due to mature on June 26, 2014 and July 23, 2014, for promissory notes having the full principal amount plus an amount for certain fees and expenses, and a maturity date of January 19, 2016. The Replacement Notes will bear interest at an annual rate of 10% (compounded monthly and payable on maturity). As a result of the exchange, PRRF will no longer have the right to convert the Notes into common shares of the Company.

After giving effect to the exchange, assuming full exercise of the 5,660,376 common share purchase warrants previously held by PRRF, PRRF would hold 18,788,360 common shares of the Company, representing approximately 15.25% of the then outstanding common shares of the Company.

In addition, PRRF holds an option to purchase additional Notes from the Company in the aggregate principal amount of US$20 million which will be convertible into common shares of the Company based on the formula as described in the joint press release issued on June 4, 2009. As the number of common shares issuable to PRRF is contingent, in part, upon future values and share prices, the number of shares that PRRF could acquire should it purchase the Second Tranche Notes and exercise its conversion rights in full cannot be determined at this time. However, based on the current minimum conversion price, PRRF would acquire a minimum of 17,269,355 additional shares (assuming a conversion price of CDN$1.24 and an exchange rate of US$1.00 equals CDN$1.0707). Assuming full exercise or conversion of all securities held by PRRF on this basis and that no other convertible securities of the Company were converted or exchanged, PRRF would hold approximately 36,057,715 common shares of the Company, representing approximately 26% of the then outstanding common shares of the Company.

PRRF purchased the securities for investment purposes and may or may not purchase or sell securities of the Company in the future on the open market or in private transactions, depending on market conditions and other factors.