Gold Wheaton Gold Corp.
TSX VENTURE : GLW

Gold Wheaton Gold Corp.

February 02, 2010 09:52 ET

Gold Wheaton Comments on First Uranium's Decision to Delay the Mine Waste Solutions Project and its Short Term Impact on Gold Wheaton

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 2, 2010) - Gold Wheaton Gold Corp. (TSX VENTURE:GLW) (the "Company") has received notice from First Uranium Corporation (TSX:FIU)(JSE:FUM) ("First Uranium") that First Uranium has elected to suspend construction and commissioning of the third gold plant at its Mine Waste Solutions ("MWS") project in South Africa. In addition, First Uranium plans to reduce its production at MWS from two gold plants to one gold plant at the end of March 2010. Under their revised plan, the MWS No. 5 Dam would provide sufficient tailings deposition capacity for one operating gold plant until the end of December 2011.

First Uranium recently announced that its environmental authorization for the new Tailings Storage Facility at MWS was withdrawn. This facility was designed to accommodate future tailings deposition at MWS.

With this construction suspension and reduced production, First Uranium has announced that it anticipates annual gold production of approximately 57,000 oz in 2010 and 64,000 oz in 2011 at MWS. In accordance with First Uranium's contractual commitments, 25% of this gold production is due to the Company.

"Gold Wheaton is extremely disappointed in the steps that First Uranium has taken as a result of its permitting and financial issues. It is possible that this action by First Uranium at MWS will trigger, amongst other things, a $42 million penalty payment due to Gold Wheaton if the project does not pass a technical completion test by June 1, 2010. We are committed to work with First Uranium as they resolve their current issues," said David Cohen, CEO and Chairman of Gold Wheaton.

"We remain confident of the quality of both the MWS and Ezulwini assets and their ability to produce gold given appropriate permitting and financial support. Gold Wheaton will continue to receive the contractually guaranteed production ounces from Ezulwini throughout 2010 and 2011. However the reduced production at MWS will reduce our overall forecast gold production by approximately 20,000 oz (17%) in each of 2010 and 2011. Our rights to the contractual gold production at each of the First Uranium mines survive regardless of the ongoing ownership of these mines."

Gold Wheaton is a gold company with 100% of its operating revenue from the sale of gold and precious metals produced by others. The Company has significant cash available and is actively pursuing specific further growth opportunities.

Cautionary Note Regarding Forward-Looking Statements
Except for the statements of historical fact contained herein, the information presented constitutes "forward looking statements". Such forward-looking statements, including but not limited to those with respect to the closing of the offering, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Gold Wheaton to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among other risks, risks related to the timing and completion of the proposed listing on the TSX and the proposed consolidation, the timing and quantum of any dividends, if any and those factors discussed in the section entitled "Description of Business - Risk Factors" in Gold Wheaton's Annual Information Form dated December 10, 2009 as filed on SEDAR. Although Gold Wheaton has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy and accuracy of the content of this news release.

Contact Information