First Bauxite Corporation
TSX VENTURE : FBX
FRANKFURT : FBI
BERLIN : FBI

First Bauxite Corporation

May 23, 2012 12:08 ET

First Bauxite Corporation Announces Non-Brokered Private Placement

TORONTO, ONTARIO--(Marketwire - May 23, 2012) - First Bauxite Corporation ("First Bauxite" or the "Company") (TSX VENTURE:FBX)(FRANKFURT:FBI)(BERLIN:FBI) is pleased to announce that the Company is proceeding with a non-brokered private placement (the "Private Placement") to Resource Capital Fund V LP and certain entities comprising the Pacific Road Resources Funds for up to 22,641,510 units (the "Units") at a price of $0.53 per Unit to raise total proceeds of $12,000,000. Each Unit will consist of one common share and one-half of a transferable common share purchase warrant (a "Warrant"). Each whole Warrant will be exercisable for one additional common share (a "Warrant Share") of the Company for a period of 36 months following the closing of the Private Placement, at an exercise price of $0.75 per Warrant Share.

A fee equal to 3.5% of the gross proceeds will be paid in cash or the equivalent value of Units to certain parties on completion of the Private Placement.

The Private Placement is subject to the approval of the TSX Venture Exchange.

Net proceeds of the Private Placement will be used primarily to fund the continued development of the Company's Bonasika refractory grade bauxite property in Guyana, as well as general working capital expenses.

Funds used for the Bonasika property will include the commencement of the Engineering Project Construction Management work, including front end detailed engineering and design of the mine plant and processes, in addition to the preparation of bulk sampling for distribution to potential customers, and commercial debt financing and marketing activities.

About First Bauxite

First Bauxite Corporation (TSX VENTURE:FBX) is a Canadian natural resource company engaged in the exploration and development of bauxite deposits in Guyana, South America. The Company has its head office in Toronto and is managed by experienced geoscientists and business development professionals with worldwide experience in the exploration and mining business across a number of mineral commodities. The mission of First Bauxite is to become a near term, medium size producer and supplier of high quality refractory grade sintered (calcined) bauxite. First Bauxite controls a large land package in Guyana's historical coastal bauxite belt, including the Bonasika Mining License, the Waratilla-Cartwright Prospecting License, and the Essequibo PGGS Prospecting Permit. The Company also holds the Tarakuli and contiguous Tarakuli North-West Prospecting Licenses in Northeast Guyana. The Company's Bankable Feasibility Study Update defines and confirms the economic viability of an operation based on sequential mining of the two (2) bauxite deposits (Bonasika 6 and Bonasika 7), and the construction of a washing plant facility, a sintering plant, and load out facilities, at Sand Hills. The Bonasika 1, 2 and 5 deposits are additional value and would increase the mine of life from 36 years to 44.5 years. For further information on First Bauxite Corporation, please visit our corporate website at www.firstbauxite.com.

On behalf of The Board of Directors of First Bauxite Corporation

Hilbert N. Shields, President & CEO

Certain statements contained herein constitute "forward-looking statements". Forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements may include words such as "developing", "will", "move forward", "next", "obtaining", "constructing" and similar expressions. These statements include, but are not limited to, statements regarding the continued advancement of the Bonasika Bauxite Project. These forward- looking statements are based on current expectations and entail various risks and uncertainties. Actual results may materially differ from expectations, if known and unknown risks or uncertainties affect our business, or if our estimates or assumptions prove inaccurate. Factors that could cause results or events to differ materially from current expectations expressed or implied by the forward-looking statements, include, but are not limited to, the effect of capital market conditions and other factors on capital availability; availability of sufficient financing to fund planned or further required work in a timely manner and on acceptable terms; changes in project parameters as plans continue to be refined and other risks more fully described in the Company's Management Discussion & Analysis of Financial Position and Results of Operations, which is available on SEDAR at www.sedar.com. Readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release. Except as required by law, the Company assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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