First Metals Inc.

First Metals Inc.

November 27, 2006 12:14 ET

First Metals Contracts $2.4 Million Power Line

TORONTO, ONTARIO--(CCNMatthews - Nov. 27, 2006) - First Metals Inc. (TSX:FMA) is pleased to announce that it has commissioned and paid Quebec Hydro $2.4 million for the construction of a 31 km power line to its project sites at the Fabie Bay Copper and the Magusi River Zinc-Copper deposits near Rouyn-Noranda.

This hydro project involves the installation of some 560 power poles, leading to the two deposits. Quebec Hydro has already obtained all of the necessary permits, including a Certificate of Authorisation. Formal work on the project will start immediately with the completion expected by the end of January.

First Metal's Chairman, James Beatty, stated: "This is another milestone in the rapid development of these projects as we move from the exploration phase towards production." He also noted that "under the terms of the agreement, First Metals may recoup up to 60% of the costs relating to this expenditure, over time."

By being connected to the power grid, First Metals will benefit from a number of efficiencies and reduce long term operating costs at both sites. Company president, Brian A Ferguson noted that: "The co-operation of Quebec Hydro in expeditiously carrying out the engineering studies and obtaining permits is very much appreciated, as it greatly assists in meeting our development schedule."

First Metals is a development stage company advancing the Fabie Bay and Magusi River Copper-Zinc-Gold and Silver deposits in the Noranda Mining Camp in Western Quebec. First Metals has 30.8 million shares outstanding and is listed on the Toronto Stock Exchange.

On behalf of the Board

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