First Metals Inc.

First Metals Inc.

December 21, 2007 18:00 ET

First Metals Closes $3,080,000 Financing

TORONTO, ONTARIO--(Marketwire - Dec. 21, 2007) - First Metals Inc. (TSX:FMA) is pleased to announce that it has completed the private placement which was announced on December 17th, 2008, selling 2,800,000 units at a price of $1.10 per unit to raise gross proceeds of $3,080,000.

Each unit consists of one common flow through share and one half warrant. Each whole warrant entitles the holder to purchase one additional non-flow through common share for $1.75 in the first year and $2.00 in the subsequent year.

The proceeds of this private placement will be used to accelerate a major drilling campaign on the Magusi Copper, Zinc, Gold and Silver massive sulphide deposit, near Rouyn-Noranda, Quebec and to advance other exploration targets. It is anticipated that $1,500,000 will be spent during the first quarter of 2008 on a drilling programme designed to further delineate the Magusi mineral resource, from surface to the 200 meter level.

Insiders of the Company have subscribed for $220,000. Finder's fees have been paid to arm's length parties in accordance with TSX Exchange policy with respect to the private placement. No finder's fees or commissions are being paid with respect to insiders. The TSX has given conditional approval to the transaction.

First Metals Inc. is bringing into production the Fabie Bay and Magusi River Copper, Zinc, Gold and Silver Projects, near Rouyn-Noranda, Quebec, Canada acquired from Globex Mining Enterprises, Inc. There are approximately 36 million shares issued and outstanding.

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