First Metals Inc.
TSX : FMA

First Metals Inc.

May 26, 2009 17:50 ET

First Metals Bi-Weekly Default Status Report

TORONTO, ONTARIO--(Marketwire - May 26, 2009) - First Metals Inc. (TSX:FMA) previously announced in a news release dated March 23rd, 2009 (the "News Release") that its December 31st, 2008 audited annual financial statements (the "Annual Financial Statements") would not be filed by March 31st, 2009 as required. The delay is caused by the ongoing proceedings under the Bankruptcy and Insolvency Act (the "Act").

Until the Annual Financial Statements have been filed, First Metals will continue to comply with the alternative information guidelines set out in National Policy 12-203, and will issue bi-weekly press releases to keep shareholders and others informed of significant events in relation to the filing of its Annual Financial Statements.

A meeting of First Metals' creditors was held on May 6, 2009, at which time the Corporation's proposal was accepted by its creditors. A motion to the court to approve the proposal has been set down for June 17, 2009. The proposal is being made in order to facilitate First Metal's ability to implement a restructuring plan.

As a result of the proceedings, First Metals will not be in a position to file its December 31st, 2008 audited financial statements until the proposal has been completed and formally accepted under the Act. First Metals presently expects this to occur on or before June 17, 2009, following which First Metals intends to immediately file its 2008 Annual Financial Statements and the March 31, 2009 unaudited interim financial statements.

Further to the News Release which can be viewed at www.sedar.com, in accordance with National Policy 12-203, First Metals confirms that:

- it is anticipated that the Annual Financial Statements will be filed on or before June 17, 2009. This is the only material change from the information contained in the News Release.

- First Metals' stated intentions in the News Release have not changed other than announcing the expected filing date of the Annual Financial Statements as on or before June 17, 2009.

- The filing of the March 31, 2009 unaudited interim financial statements are in default of financial statement filing requirements. It is First Metals' stated intention to also file these on or about June 18, 2009, once the Annual Financial Statements have been filed

- there is no other material information concerning the affairs of First Metals that has not been generally disclosed.

First Metals Inc. has approximately 42.8 million shares issued and outstanding.

The statements made in this news release may contain certain forward-looking statements. Actual events or results may differ from the Corporation's expectations. Certain risk factors may also affect the actual results achieved by the Corporation.

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