Gold Wheaton Gold Corp.

Gold Wheaton Gold Corp.

November 28, 2008 20:17 ET

Gold Wheaton Signs Definitive Agreement With First Uranium Corporation

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 28, 2008) - Gold Wheaton Gold Corp. (TSX VENTURE:GLW) ("GWC") is pleased to announce that Gold Wheaton (Barbados) Corporation ("Gold Wheaton"), a wholly-owned subsidiary of GWC, has signed a definitive agreement with First Uranium Corporation (TSX:FIU)(JSE:FUM) ("First Uranium") further to the letter of intent which was previously announced by GWC on November 4, 2008. Gold Wheaton will purchase a minimum of 20,000 ounces of gold in 2009 (up to a maximum of 25 percent of the gold production) and thereafter 25 percent of the life-of-mine gold production from First Uranium's Mine Waste Solutions tailings recovery operation ("MWS") in South Africa.

First Uranium will submit applications for approval of the transaction to the South African Reserve Bank and the South African Revenue Service. Upon satisfaction of certain escrow deposit conditions, Gold Wheaton shall pay US$50 million (the "First Payment") into escrow, with the escrow to be released upon the satisfaction of certain closing conditions including registration of a notarial bond on certain of the MWS tailings dams and a pledge of 25 percent of the gold produced from MWS.

Under the terms of the transaction, in addition to the First Payment, Gold Wheaton shall pay First Uranium:

- subject to financing, US$75 million on or before three months following closing (the "Second Payment"), failing which the purchase shall be reduced to 10 percent of the life-of-mine gold production and appropriate credits will be made; and

- an ongoing payment equal to the lesser of US$400 per ounce and the prevailing spot price (subject to an annual inflation adjustment of 1 percent, starting in the fourth year after the First Payment).

Gold Wheaton will not be required to contribute to any capital or exploration expenditures in respect of First Uranium's tailings recovery operation. Gold Wheaton will be provided with a right of first refusal on any future gold stream agreements or similar arrangements proposed to be entered into by First Uranium or its subsidiaries in respect of the MWS project or the Ezulwini mine.

"We are pleased to move forward with First Uranium on this transaction and cement a long term relationship," commented David Cohen, Chairman and CEO of Gold Wheaton. "In addition to their current production, they have made substantial positive progress on the phase 2 expansion project and remain on track for the planned commissioning in the second quarter of 2009."

Closing of the transaction is expected to occur on or before December 12, 2008.

Cautionary Note Regarding Forward-Looking Statements

Safe Harbor Statement under the United States Private Securities Litigation Reform Act of 1995: Except for the statements of historical fact contained herein, the information presented constitutes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements, including but not limited to those with respect to the price of gold, platinum or palladium, the timing and amount of estimated future production, costs of production, reserve determination and reserves conversion rates involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of GWC or First Uranium 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 integration of acquisitions, risks related to international operations, risks related to joint venture operations, the actual results of current exploration activities, actual results of current reclamation activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as future prices of gold, platinum or palladium, as well as those factors discussed in the section entitled "Description of Business - Risk Factors" in GWC's Annual Information Form dated August 19, 2008 as filed on SEDAR. Although GWC 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

  • Gold Wheaton Gold Corp.
    David Cohen
    Chairman and Chief Executive Officer
    (778) 373-0107