First Metals Inc.

First Metals Inc.

February 26, 2007 10:11 ET

First Metals Inc.: Announcement

TORONTO, ONTARIO--(CCNMatthews - Feb. 26, 2007) - First Metals Inc. (TSX:FMA) announces that its Board of Directors has approved the Company entering into a Cdn. $ 20 Million, three (3) year term loan arranged through Jennings Capital. Receipt of Board approval is a condition of closing the financing. No other regulatory authorizations are required. Closing is scheduled to take place as soon as definitive documentation is completed. Full details will be provided at that time.

This financing will permit the Company to meet all financial requirements associated with its Letter of Intent to custom mill ore at Xstrata Copper Canada's Horne mill, located in Rouyn-Noranda, Quebec (see Jan 11/07 Release: "First Metals Signs Letter of Intent with Xstrata Copper for Custom Milling").

This financing will also provide the requisite working capital for the production phase without the need for further equity financing.

First Metals is a development company currently focused on the Fabie Bay and Magusi River Copper, Zinc, Gold and Silver Projects, near Rouyn-Noranda, Quebec, Canada acquired from Globex Mining Enterprises, Inc. last year. The Company has 30.8 Million shares issued and outstanding and is listed on the Toronto Stock Exchange.

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