First Metals Inc.

First Metals Inc.

October 23, 2010 15:29 ET

First Metals Inc. Clarifies Kaskattama Inc. News Release

TORONTO, ONTARIO--(Marketwire - Oct. 23, 2010) - First Metals Inc. (TSX VENTURE:FMA.H) ("First Metals") has issued this release to clarify statements made in a news release issued by Kaskattama Inc. on October 22, 2010. In its release Kaskattama referenced the fact that First Metals and Kaskattama previously entered into a pre-merger agreement to complete an amalgamation transaction. While this statement is in fact accurate and consistent with First Metals' prior disclosure, what Kaskattama did not disclose in its release is that it has failed to satisfy certain conditions by the October 15, 2010 deadline set forth in such agreement and that First Metals had notified Kaskattama that as a result of this failure that such agreement was terminated. While First Metals and Kaskattama have been in discussions regarding an extension of this agreement, there is no assurance that such an agreement will be successfully concluded.

In the meantime First Metals continues to review all of its options including an orderly winding up of the company.

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

Neither 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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