First Metals Inc.

First Metals Inc.

December 17, 2007 10:29 ET

First Metals Arranges $3,080,000 Financing With $2,600,000 on a Bought Deal Basis

Initiates Immediate Major Drilling Campaign at Magusi River

TORONTO, ONTARIO--(Marketwire - Dec. 17, 2007) - First Metals Inc. (TSX:FMA) is pleased to announce that it has arranged to place 2,800,000 flow-through units for an aggregate of $3,080,000 .The lead orders are on a bought deal basis and the issue was over-subscribed. Each unit will consist of one common flow through share and one half warrant. Each whole warrant will entitle 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, the MineralFields Group has subscribed for $2,000,000 and MTAX 2007 (No.2) Mineral Limited Partnership has subscribed for $600,000. Finders' fees may be paid to arm's length parties in accordance with TSX Exchange policy with respect to the private placement. No finders'fees or commissions are being paid with respect to Insiders. The transaction is subject to regulatory approval.

Richard Williams, C.E.O. of First Metals, said "with over 30 truck loads now leaving daily from the Fabie Bay copper deposit for milling and smelting at the Horne facilities, more of our focus can shift to the advancement of our next project, the Magusi deposit, located in close proximity to the Fabie deposit. Starting in a few weeks, some 20,000 meters of drilling is planned. We are very pleased by the confidence expressed by the participants in providing a bought deal financing and look forward to the increased exposure that this financing should provide."

MineralFields Group (a division of Pathway Asset Management) is a Toronto-based mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors through out Canada during most of the calendar year, as well as hard-dollar resource limited partnerships to investors throughout the world. Pathway Asset Management also specializes in the manufacturing and distribution of structured products and mutual funds. Information about MineralFields Group is available at First Canadian Securities® is active in leading resource financings (both flow-through and hard dollar) on competitive, effective and service friendly terms, with investors both within and outside of the MineralFields Group.

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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