First Metals Inc.
TSX : FMA

First Metals Inc.

May 12, 2009 16:54 ET

First Metals Inc. Obtains MCTO Due to Late Filing of Annual Financial Statements

TORONTO, ONTARIO--(Marketwire - May 12, 2009) - First Metals Inc. (TSX:FMA) ("First Metals" or the "Corporation") provides this Notice of Default further to National Policy 12-203 ("NP 12-203") advising that First Metals was not able to file its annual financial statements for the year ending December 31, 2008 on or before the prescribed deadline of March 31, 2009. In accordance with NP 12-203, the Corporation has submitted an application for a Management Cease Trade Order (MTCO) in respect of this late filing, which has been accepted by the Ontario Securities Commission.

As previously disclosed, First Metals' failure to file its audited financial statements within the prescribed period of time was due to ongoing restructuring proceedings commenced by the Corporation under the Bankruptcy and Insolvency Act (the "Act"). A meeting of First Metals' creditors was held on May 6, 2009, at which time the Corporation's proposal was accepted by its creditors. The Corporation expects that a motion to the court to approve the proposal will be heard on or about June 11, 2009.

The Corporation expects that its audit financial statements for the fiscal year ended December 31, 2008, will be filed on or before the date of the court approval motion. Further, the Corporation confirms that it intends to satisfy the requirements to file the appropriate Default Status Reports as prescribed by NP 12-203 so long as it remains in default of its requirements to file its financial statements within the prescribed period of time.

First Metals also confirms that there is no other material information concerning the affairs of First Metals that has not been generally disclosed as of the date hereof.

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 Company's expectations. Certain risk factors may also affect the actual results achieved by Company.

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