First Bauxite Corporation Announces Positive Feasibility Study Results for Its Bonasika Refractory Bauxite Project in Guyana

FIRST BAUXITE CORPORATION ("First Bauxite" or the "Company") (TSX
VENTURE:FBX)(FRANKFURT:FBI)(BERLIN:FBI) is pleased to announce the positive
Feasibility Study ("FS") results for its 100% owned, Bonasika refractory grade
bauxite project (the "Project") located in Guyana, South America. The FS was
based on the bauxite reserves of the Bonasika 1, 2 & 5 deposits, which are
within the Bonasika Mining License. In addition a NI 43-101 Compliant Mineral
Resource estimate was also completed for the Upper Waratilla-Cartwright ("UWC")
deposit located within the Waratilla-Cartwright Prospecting License ("WCPL").
Met-Chem Canada Inc ("Met-Chem") of Montreal, Canada was the lead author of the
FS with participation and contribution of several industry experts and
consultants.


The FS commenced in September 2009 and has considered all aspects related to
development of the Project, including in-situ geology, mining, metallurgy,
processing and engineering, economics, marketing, social and environmental
considerations. The Feasibility Study defines and confirms the viability of an
operation based on sequential mining of the three (3) bauxite deposits located
on the Bonasika Mining License by open-pit, truck and excavator mining, with the
mined ore trucked for processing at a central wash plant facility located less
than 2 km from the Bonasika 1 & 2 pits. The wash plant concentrate will be
transported 23 km to the sintering plant and load out facilities at Sand Hills.
The Mine will operate at a production rate of 298,500 metric tons ("tonnes") of
raw, dry bauxite per year or 1,148 tonnes per day, the wash plant will produce
162,232 tonnes of washed bauxite concentrate and the two vertical pressurised
shaft kilns will produce 100,000 tonnes per year of sintered bauxite final
product. The Bonasika proven bauxite reserves support a mine life of 8.4 years
at an average cash operating cost of US$182 per tonne of sintered bauxite.


(All figures in US Dollars except where noted)

Highlights of the Feasibility Study include:



--  Target production of 100,000 tonnes of high quality sintered bauxite
    annually; 
--  Operations located 60 km from Georgetown, the capital of Guyana; 
--  Approximately, 7.5 million tonnes of Measured and Indicated mineral
    resources identified at Bonasika 1, 2 and 5 deposits and the UWC
    deposit; 
--  Mineral Reserves have been determined only from the 3 Bonasika deposits,
    totaling 2.5 million tonnes of which 69% are Proven and 31% Probable,
    producing a mine life of 8.4 years for the Project. The UWC resources
    were drilled concurrently with the FS work, and thus no Mineral Reserves
    were determined from UWC for the purpose of this FS; 
--  Relatively simple open-pit mining using a hydraulic excavator and load
    haul trucks to direct mine the soft bauxite ores and remove the shallow
    overburden; 
--  Low mining operating costs at US$1.21 per tonne of total material mined
    average over the mine life which corresponds to US$8.01 per tonne
    processed or US$23.91 per tonne of final product; 
--  Efficient, simple, low cost beneficiation for sizing and washing of
    bauxite ore to a low silica concentrate at $7.20 per tonne (US$3.89 per
    tonne of raw bauxite); 
--  Low cost and relatively short 23 km concentrate haul to the Sand Hills
    sintering plant and dock, at $4.13 per tonne (US$2.23 per tonne of ore
    processed); 
--  State of the art technology, vertical shaft kilns produce enhanced bulk
    density sintered bauxite product with zero particulate emissions, while
    consuming less than 50% of the energy consumed for equivalent output by
    a rotary kiln; 
--  Direct employment of 207 employees at the mine and the two processing
    plants; 
--  Total estimated capital costs for the Project of US$112.8 million with
    sustaining capital costs of US$7.5 million during the Bonasika mine
    life; 
--  A pre-tax Internal Rate of Return of 16.2% and a post-tax IRR of 12.2%
    on a US$182 per tonne (final product) cash operating costs and a US$475
    per tonne FOB price; and 
--  Sensitivity analyses suggests that the Project is robust and can
    withstand adverse changes between 10-20% in most critical parameters,
    such as capital and operating costs, fuel prices and product price. 
--  Significant upside potential: 
    --  The UWC NI 43-101 Compliant drilling has indicated a Mineral
        Resource of 4.9 million tonnes of high quality refractory bauxite,
        which has not been included in the FS economic evaluation; work is
        under way to complete the mineral reserves estimate to allow the
        inclusion of this UWC resource in the future mine plan; and 
    --  A new recently discovered outcropping bauxite zone in the WCPL and
        named the Lower Waratilla Prospect ("LWC") is currently subject of
        an aggressive drilling campaign; indications are it is a comparable
        size deposit to UWC, with similar quality bauxite, but at
        considerably shallower depth is now the target of a Preliminary
        Economic Analysis ("PEA") to determine the viability of including it
        in the bauxite resource base and future mine plans. 



Incorporating UWC and WCPL into the current mine plan will potentially extend
the current mine life, reduce operating costs and enable project expansion to be
considered.


Yannis Tsitos, the Company's President & Director, stated: "This Feasibility
Study substantiates the quality of our bauxite assets in Guyana and represents a
solid foundation upon which we will build and expand First Bauxite Corporation.
Today, we have taken another major step towards realizing our vision of building
a financially robust refractory grade bauxite operation in Guyana. Backed with
the Mineral Reserves of Bonasika and the additional Indicated bauxite resource
from upper Waratilla, the development of the Bonasika Project will unlock value
not only for the shareholders of the Company, but for all related Project
stakeholders and especially the local communities and the people of Guyana."


Hilbert Shields, the Company's CEO & Director, stated: "The challenge facing a
new supplier of refractory grade bauxite is to convince the customer that he can
be assured of a reliable supply of consistent quality product at a cost that
allows him to be globally competitive. With completion of our Feasibility Study,
where our approach has been to technically engineer the raw bauxite feed for our
modern vertical pressurized shaft kilns, First Bauxite has overcome this
challenge and now seeks to further enhance project economics. Guysin-90, First
Bauxite's proprietary product, will boast superior chemical and density
qualities since the natural inhomogeneities found in all raw bauxites, including
the traditionally high quality Guyana ores, is minimized through the
micronization of the raw bauxite for enhanced liberation of accessory
impurities, and subsequent controlled, blended aggregation into dense briquettes
to feed an energy efficient, zero dust emission, German engineered vertical
pressurized shaft kiln. This project is exciting to develop since it "moves
refractory bauxite production out of the stone age" (paraphrased after Bill
McCracken) and introduces new, energy efficient and environmentally friendly
technology by creating a new value added product to complement Guyana's
traditional spectrum of quality refractory bauxites."


BONASIKA FEASIBILITY STUDY

Contributors

The FS is based on technical information generated by Met-Chem together with
First Bauxite personnel and supporting input from independent firms with
specific technical expertise. Table 1 lists the responsible contributors to the
various parts of the FS:


Table 1: Feasibility Study Contributors



------------------------------------------------------------------------
COMPONENT                               RESPONSIBILITY, CONTRIBUTION   
------------------------------------------------------------------------
Project History, Property Holdings      First Bauxite                  
------------------------------------------------------------------------
Geology, Deposit Model, Drilling,       Bryan Osborne, Aluminpro       
Sampling                                                               
------------------------------------------------------------------------
Geologic Interpretation, Resource       Bryan Osborne, Aluminpro        
Estimate                                                               
------------------------------------------------------------------------
Mineral Reserves, Pit Design, Mine      Met-Chem                        
Planning                                                               
------------------------------------------------------------------------
Mineral Processing, Metallurgical       Met-Chem, George Bennett 
Testing                                 Consulting LLC                 
------------------------------------------------------------------------
Briquetting and Sintering Plant Design  Polysius AG                     
------------------------------------------------------------------------
Geotechnical                            Golder Associates               
------------------------------------------------------------------------
Infrastructure, Wharf                   Cemco, First Bauxite            
------------------------------------------------------------------------
Tailings, Water Management,             Roche                           
Environmental                                                          
------------------------------------------------------------------------
Environment, Permitting & Community     Environment Management 
                                        Consultants (EMC)              
------------------------------------------------------------------------
Legal and Regulatory                    First Bauxite                   
------------------------------------------------------------------------
CAPEX, OPEX, Price Survey               Met-Chem, First Bauxite        
------------------------------------------------------------------------
Financial Analysis                      Met-Chem, MICON                
------------------------------------------------------------------------



Exploration Drilling & Mineral Resources

The Bonasika Deposits and WCPL were historically drilled by DEMBA, a local
subsidiary of ALCAN; this historical drilling for which excellent drill logs
were recovered, served to guide the sonic drilling programs of First Bauxite
Corporation.


Table 2 summarizes the results of the sonic drilling exploration campaigns
undertaken by First Bauxite on the Bonasika ML and the WCPL, between June 2008
and May 2010.


Table 2: Exploration Drilling Work Summary 2008-2010



---------------------------------------------------------------------------
                                                                       WCPL
Exploration                                                             UWC
Activity               Bonasika 1    Bonasika 2    Bonasika 5       Deposit
---------------------------------------------------------------------------
Number of Holes                                                            
 Drilled                      237           166            58           150
---------------------------------------------------------------------------
Total (m)                    5363          3658          1568          6981
---------------------------------------------------------------------------
Average Hole                                                          
 Depth (m)                   22.6          22.0          27.0          46.5
---------------------------------------------------------------------------
Drill Hole              60 x 30 &                           
 Spacing (m)              60 x 60       60 x 30       60 x 60       85 x 85
---------------------------------------------------------------------------
Number of Cross                                                            
 Sections (E-W)                16            16            10            18
---------------------------------------------------------------------------
Mineralised Area                                                           
 Drilled (m)          400 x 1,300     400 x 500     200 x 700    1600 x 700
---------------------------------------------------------------------------



A NI 43-101 compliant mineral resource statement has been prepared for all three
of the Bonasika deposits using cut-off grades of greater than 48% Al2O3, less
than 20% SiO2 and less than 5% Fe2O3; cut-offs chosen to yield washed bauxite
grades of sufficient quality to produce sintered (calcined) refractory bauxite
of the target specification. The Mineral Resource statement for the three
Bonasika deposits is shown in Table 3.


Since November 2009, First Bauxite has been actively sonic drilling on the WCPL;
the UWC deposit has been drilled to depths of 60 m, with the average thickness
of the overburden and bauxite horizon being 40 m and 4.1 m respectively. A NI
43-101 compliant drill indicated Mineral Resource statement was also prepared
for the UWC deposit. As shown by Table 3, UWC, which remains still open to the
north, hosts a significant resource of bauxite with high alumina and low silica
and iron content.


Table 3: Mineral Resource Statement for Bonasika & UWC



---------------------------------------------------------------------------
Resources         Tonnage     Al2O3       LOI      SiO2      TiO2     Fe2O3
                       Kt         %         %         %         %         %
---------------------------------------------------------------------------
Bonasika 1                                                                 
---------------------------------------------------------------------------
  Measured          1,443     55.80     28.40     11.50      1.90      2.00
---------------------------------------------------------------------------
  Indicated            90     53.90     27.60     13.70      1.90      2.50
---------------------------------------------------------------------------
  Sub-total         1,533     55.69     28.35     11.70      1.90      2.03
---------------------------------------------------------------------------
Bonasika 2                                                                 
---------------------------------------------------------------------------
  Measured            342     54.73     27.56     13.55      1.93      1.69
---------------------------------------------------------------------------
  Indicated            90     54.86     27.55     13.42      1.79      1.85
---------------------------------------------------------------------------
  Sub-total           432     54.75     27.56     13.52      1.90      1.73
---------------------------------------------------------------------------
Bonasika 5                                                                 
---------------------------------------------------------------------------
  Indicated           645     55.06     27.86     12.75      1.76      1.98
---------------------------------------------------------------------------
Upper Waratilla                                                            
 Cartwright                                                                
---------------------------------------------------------------------------
  Indicated         4,918     58.94     29.36      7.85      2.28      1.01
---------------------------------------------------------------------------



In May 2009 the LWC, a zone of similar grade bauxite as the UWC, was discovered
outcropping in the southern sector of the WCPL. Current drilling at LWC is
indicating a significant resource of similar quality bauxite at considerably
shallower depths.


Mineral Reserves

Mineral Reserves were only determined for the Bonasika 1, 2 & 5 deposits of the
Bonasika Mining License. For greater clarity no Mineral Reserves were determined
for the UWC deposit of the WCPL and the NI 43-101 compliant mineral resource
listed in Table 3 is not included in the mining plan and economic analysis in
this Bonasika Feasibility Study.


Mineral Reserves for the Bonasika open pit mine were determined by Met-Chem who
imported the Aluminpro mineral resource database into Minesight 4.6 and
validated the block model. Open pit optimization was conducted on all three
Bonasika deposits to determine the pit limits using the pit optimizer module in
Minesight, which uses the 3 D Lerch-Grossman algorithm to evaluate the economic
viability of each ore block in the model. Only ore blocks in the Measured and
Indicated categories were included in the pit optimizer; Inferred ore blocks
were treated as waste. The production target was 100,000 tonnes of final product
(sintered bauxite); in order to meet this production the mining operation is
required to supply 298,500 tonnes of dry run of mine ore annually.


Table 4 below lists the Mineral Reserves, which formed the basis of the Mine Plan.

Table 4: Proven and Probable Mineral Reserves



--------------------------------------------------------------------------
                                 Total                                   
                Ore    OB Waste  Waste  Strip Al2O3 Fe2O3  SiO2  TiO2  LOI
                (kt)  (kt)  (kt)   (kt) Ratio    (%)   (%)   (%)   (%)  (%)
--------------------------------------------------------------------------
Bonasika 1                                                                
--------------------------------------------------------------------------
  Proven      1,398     -     -      -      -  54.6  2.15  12.6   1.9 27.8
--------------------------------------------------------------------------
  Probable       63     -     -      -      -  52.7  2.93  14.6   1.9 27.0
--------------------------------------------------------------------------
  Total       1,461 3,987 4,186  8,173    5.6  54.5  2.18  12.7   1.9 27.7
--------------------------------------------------------------------------
                                                                         
--------------------------------------------------------------------------
Bonasika 2                                                               
--------------------------------------------------------------------------
  Proven        330     -     -      -      -  53.9  1.77  14.8   1.9 27.0
--------------------------------------------------------------------------
  Probable       76     -     -      -      -  54.0  1.93  14.6   1.8 27.0
--------------------------------------------------------------------------
  Total         406 1,398   796  2,194    5.4  53.9  1.80  14.8   1.9 27.0
--------------------------------------------------------------------------
                                                                         
--------------------------------------------------------------------------
Bonasika 5                                                               
--------------------------------------------------------------------------
  Proven          0     -     -      -      -   0.0  0.00   0.0   0.0  0.0
--------------------------------------------------------------------------
  Probable      637     -     -      -      -  54.2  2.08  13.9   1.7 27.1
--------------------------------------------------------------------------
  Total         637 1,477 2,169  3,646    5.7  54.2  2.08  13.9   1.7 27.1
--------------------------------------------------------------------------
                                                                         
--------------------------------------------------------------------------
All Deposits                                                              
--------------------------------------------------------------------------
  Proven      1,728     -     -      -      -  54.5  2.08  13.0   1.9 27.6
--------------------------------------------------------------------------
  Probable      776     -     -      -      -  54.0  2.14  14.1   1.7 27.1
--------------------------------------------------------------------------
TOTAL
 RESERVES     2,504 6,862 7,151 14,013    5.6  54.3  2.10  13.3   1.8 27.4
--------------------------------------------------------------------------



Mine Plan

The mining method selected for the Bonasika project is conventional truck and
excavator for both overburden stripping and ore mining. The shallow pit depth,
low production levels and soft ground conditions favor a fleet of backhoe
oriented hydraulic excavators and articulated haul trucks. Mine operations for
the Bonasika Mine are planned for 5 days a week, using three 8 hour shifts, and
will start at Bonasika 2, which will produce for 16 months before mining shifts
to Bonasika 1 which will produce for the next five years; Bonasika 5 will be
mined last. Mining at each pit is scheduled to ensure grade control such that
the average feed grade to the plant is achieved through both selective mining
and blending from up to nine stockpiles at the wash plant.


The initial mining fleet will consist of 2 CAT 365 Excavators, 3-6 CAT 730 ADT
trucks and two CAT dozers to both strip the waste and overburden and supply ore
to the washplant, located less than 2 km away. The wash plant concentrate will
be hauled 23 km to the sinter plant at Sand Hills using 4 Kenworth C 500 trucks
of 30m3 capacity. A total mine work force of 40 to 62 employees will be required
to operate the Bonasika Mine and 18 employees will be needed for concentrate
haulage.


Rejects & Water Management

Rejects produced at the Bonasika site are sterile as the process does not use
any chemicals and the waste material is composed mainly of fine clay, very small
amounts of iron oxides and unrecovered bauxite. These components are inert and
do not require any treatment prior to deposition in the basins. Rejects quantity
to be managed over the life of the project is 1.15 Mt, at an estimated density
of the 1.25t/m3 and a solids content of 17.3%, the estimated volume of rejects
per annum is 110,000 m3. Two rejects basins, lined with geotextile fabric, with
a polishing pond before final discharge, have been designed to contain slimes
from the first 2 years of operation. In these basins, rejects water and rejects
remain at or below ground level and the good permeability of the sand permits
infiltration and discharge to the lower level polishing pond. At the end of life
of the Bonasika 2 pit, the rejects will be directed to that pit.


Bonasika Wash Plant 

The Bonasika Wash (process) Plant is located near the Bonasika open pits and
includes equipment for ore size reduction and for scrubbing/washing away the
kaolinitic clays for overall reduction of silica. The concentrate produced in
this facility will have an alumina content near 60% while silica is targeted at
less than 4%.


Metallurgical testing was done to characterize the bauxites and produce a flow
sheet that would allow for the production from the Bonasika raw feed bauxite of
refractory product after sintering of the following quality: AL2O3 greater than
85.0%, Fe2O3 less than 2.0%, SiO2 less than 6.2% while maximizing recovery. The
main impurities in the bauxite lithologies are the kaolin (which bears the
silica) and the various iron bearing, mostly hydroxide, minerals. To develop the
flowsheet, several tests were conducted at various locations where equipment and
technical services were available. The accumulated test results indicate that
proper blending of ore combined with desliming and dry high intensity magnetic
separation, are necessary elements of the process flow sheet required to ensure
the quality of the final product.


The run of mine ore will be stockpiled in front of the crusher to facilitate
blending of the feed over a grizzly to the primary roll crusher, the crushed
product is fed to a log washer for clay scrubbing and then to a vibrating deck
screen. All screen oversize is directed to a cage mill in closed circuit with
the wet screen; all sized material from the screen is pumped to a de-sliming
cyclone with the process 'unders' proceeding to a hindered settling cell for
removal of fine kaolins. Cell product is directed to a belt filter for
dewatering and then into storage awaiting transport to the sinter plant at Sand
Hills.


The Bonasika Wash Plant will operate for 260 days a year 5 days per week and two
8-hour shifts per day and will be operated by a staff of 32 employees; the plant
has a rated throughput of 1,148 dry tonnes per day.


Sand Hills Sinter (process) Plant

The Sinter Plant will be located at Sand Hills on the west bank of the Demerara
River; Bauxite concentrate produced at the Bonasika site plant will be loaded
into trucks and hauled, on an unpaved company built road, approximately 23 kms
to the Sinter plant. This plant is designed to perform drying, magnetic
separation to reduce iron bearing minerals, fine grinding, agglomeration,
sintering and material handling including loading sintered bauxite onto ocean
going vessels of up to 6,500 metric tonnes capacity.


The flow sheet for the Sand Hills plant, for which capacity has been established
at 477 tonnes per day, consists of retrieval of bauxite concentrate from storage
using a front end loader to feed the product to a fluid bed dryer where the
washed bauxite concentrate is dried and then sized and fed to a bank of
parallel, dry magnetic separators; some 5% of the feed stream is lost to the
magnetic concentrate fraction. The dried, non-magnetic product is then fine
ground in an airswept roller mill which discharges into pug mixers delivering
feed to multiple briquetting presses. The green briquettes are elevated to two
Polysius vertical pressurized shaft kilns, each rated at 50,000 tonnes per annum
production capacity, to be sintered at approximately 1650 degrees C to yield the
final, First Bauxite branded GUYSIN-90, high density, sintered bauxite product.


The Sand Hills plant, which will be staffed by 75 employees, will operate for
340 days per year, seven days per week and 24 hours per day; with a planned
shutdown of 2 weeks per year for maintenance including kiln refractory liner
maintenance.


Infrastructure

The Bonasika Mine site and the Sand Hills sinter plant and dock site are within
60 km of Georgetown, the capital city of Guyana; while Sand Hills is on the bank
of the navigable Demerara River, the sites are isolated from significant
population centers and there are no services such as roads, potable water and
electricity. First Bauxite will construct an essential new 23 km unpaved but all
weather road to service the mine and wash plant and install a 9.6 megawatts
power plant at Sand Hills and a wharf facility with 7 meter draft to accommodate
small ocean going vessels of up to 6500 tonne cargo capacity. A 25 kV power line
will be built alongside the haul road to supply power to the washplant and
support services and power and water will be provided to the few inhabitants of
Sand Hills and the neighboring community of Vreed-en-Rust. A site camp facility
will have to be established to house employees and office, warehousing, water
and sewage treatment and all similar ancillary service facilities will have to
be built.


Environmental & Permitting

The environmental and legal framework for construction and operation of a mining
project in Guyana is a combination of national, regional and international
policies, regulations and guidelines applicable in Guyana. Guyana Industrial
Minerals Inc. ("Ginmin"), a 100% owned local subsidiary of First Bauxite, has an
existing valid Mining License to operate the Bonasika Mines, in June the company
applied to the Guyana Geology and Mines Commission ("GGMC") to expand the size
of the Mining License to cover the Bonasika Plant site, the site of the tailings
basins and to make the Mining License contiguous with the WCPL. (See press
release of July 6, 2010). Ginmin in 2004 was issued the Environmental Permit
necessary to operate the Bonasika Mine; in 2009 Ginmin applied for renewal of
the Environmental Permit and was asked to submit an amended EIA and EMP to
support that application, this was submitted on July 20th, 2010.


Production Parameters, Capital & Operating Costs

The principal production parameters and Capital and Operating cost estimates are
shown in the Table 5. The FS cost estimates were done to an accuracy of +/-15%,
there is a contingency of 11.5%; electricity generation cost were estimated at
US$0.12 per kWh and fuel costs were based on an average crude oil reference
price of US$80.00 per barrel. Total workforce during normal operation is
estimated to be 207 employees.


Table 5: Project Principal Life of Mine Production and Cost parameters



---------------------------------------------------------------------------
Life of Mine Production                                                    
---------------------------------------------------------------------------
Ore Mined                                    2,504,000 tonnes              
---------------------------------------------------------------------------
Waste & Overburden Mined                     14,013,000 tonnes             
---------------------------------------------------------------------------
Strip Ratio                                  5.6                           
---------------------------------------------------------------------------
Production Rates                                                           
---------------------------------------------------------------------------
Mining Rate                                  298,500 tpa                   
---------------------------------------------------------------------------
Mine Life                                    8.4 years                     
---------------------------------------------------------------------------
Recovery                                     33.5%                         
---------------------------------------------------------------------------
Production of sintered bauxite               100,000 tpa                   
---------------------------------------------------------------------------
Capital Costs (USD)                                                        
---------------------------------------------------------------------------
Bonasika Site                                $20.571 million               
---------------------------------------------------------------------------
Sand Hills Site                              $58.045 million               
---------------------------------------------------------------------------
Indirect Costs                               $34.195 million               
---------------------------------------------------------------------------
Total Initial Capital                        $112.811 million              
---------------------------------------------------------------------------
Sustaining Capital                           $7.523 million                
---------------------------------------------------------------------------
Total Capital                                $120.334 million              
---------------------------------------------------------------------------
Life of Mine Operating Costs (USD)                                         
---------------------------------------------------------------------------
Mining                                       $8.01 per tonne processed     
---------------------------------------------------------------------------
Ore Processing                               $3.89 per tonne processed     
---------------------------------------------------------------------------
Concentrate Transport                        $2.23 per tonne processed     
---------------------------------------------------------------------------
Ore Processing - Sand Hills Plant            $36.69 per tonne processed    
---------------------------------------------------------------------------
Infrastructure & Services                    $2.33 per tonne processed     
---------------------------------------------------------------------------
General and Administration                   $7.92 per tonne processed     
---------------------------------------------------------------------------
Sub Total                                    $61.07 per tonne processed    
---------------------------------------------------------------------------
Operating Cost per tonne of product          $182.29 per tonne of final    
                                             product, GUYSIN-90            
---------------------------------------------------------------------------



Price Survey

Met-Chem conducted a final product price survey to establish a market price for
First Bauxite's Guysin-90 sintered bauxite product for use in the FS. The survey
was based on a review of the technical literature on refractory market and
products. Based on this review it was decided, for this FS, to use a sale price
of US$475 per tonne F.O.B. vessel, Guyana.


Calcined or sintered refractory bauxite is an important industrial mineral used
in the manufacturing of thermally, chemically and physically resistant
materials, "refractories". Refractory products are used as linings of furnaces
wherever industrial processes need to be contained at elevated temperatures or
corrosive environments. Hence the materials industry (i.e. steel, glass, cement,
copper, building bricks, etc) is totally reliant on refractory products. The
European, American, and the global refractory industry, is currently dependent
on bauxite imports from China or production in Guyana from a deposit owned by
the Chinese company, Bosai Minerals. The exports of refractory bauxite from
China are restricted and export duties have been imposed, resulting in an
intense search by global, non-Chinese, refractory companies for alternative
refractory bauxite resources.


Project Schedule & Development

The project implementation schedule is 18 months, this includes detailed
engineering, procurement, construction and commissioning of the facilities
including the main access road, the ore processing installations, the power line
to Bonasika site, the siltation ponds, the power plant installations, the wharf
and the site infrastructure required for the project.


The critical path of the Project is dictated by the sinter plant. To achieve the
proposed schedule, the procurement of long lead equipment such as: vertical
kilns, fluid bed dryer, briquetting presses, power generation equipment, etc.
must be completed during the first stage of detailed engineering. Concurrently
the main access road and site preparation design and contract documents and
procurement must be completed and awarded to successful contractor(s) to allow
for subsequent activities to start on time. The wharf execution should be done
early in the project to allow for easy unloading of process equipment and other
material required for the construction project.


Project Evaluation and Economics

The Bonasika Bauxite Project is an economically viable project based on the
assumptions used in this feasibility study.


The Bonasika Project yields a NPV at a discount rate of 7.5% of US$41.2 million
before tax and US$19.4 million after tax. The undiscounted cash flow is US$115.3
million before tax and US$73.9 million after tax. The before-tax and after-tax
cash flows evaluate to internal rates of return (IRR) of 16.2% and 12.2%
respectively. The project cash flow shows an undiscounted project payback period
of 4.5 years and 6.4 years at an annual discount rate of 7.5%.


The key financial assumptions are shown in Table 6:

Table 6: Financial Assumptions



-----------------------------------------------------------------
Refractory bauxite Price           US$475 per tonne              
-----------------------------------------------------------------
Allowance for off-spec material    5%                            
-----------------------------------------------------------------
Discount for off-spec material     20%                           
-----------------------------------------------------------------
Royalty                            1.5% of gross revenue         
-----------------------------------------------------------------
Corporate Tax Rate                 35%                           
-----------------------------------------------------------------
Capital Depreciation               20% per year                  
-----------------------------------------------------------------
Accounts Receivable                90% paid on shipping          
-----------------------------------------------------------------



Risks and Opportunities

Opportunities to enhance the project economics include the following:



--  Conversion of the 4.9 million tonnes of indicated resources at UWC into
    mineral reserves through in-fill definition drilling and the necessary
    engineering tests; 
--  Definition of additional bauxite resource discovered in other parts of
    the Waratilla-Cartwright PL beyond the above mentioned indicated
    resource - areas currently under drilling in the south and north into
    the newly defined Bonasika ML; 
--  Preparation of a NI 43-101 compliant PEA for mining the UWC deposit to
    analyze opportunities to extend the life of the operation, enhance
    profits and achieve operating flexibility and efficiencies; 
--  Conduct additional test work on the hydraulic classification overflows
    from the three (3) Bonasika lithologies treated. These overflows contain
    from 28 to 62% gibbsite. Further recovery of part of this gibbsite will
    further optimize the flow sheet and improve the currently estimated 33%
    recovery; and 
--  Detailed engineering to review the opportunities to reduce capital
    costs. 



Risks and mitigation strategy include the following:



--  Managing the construction direct and indirect costs by an experienced
    EPCM team. 
--  Engaging an independent expert to conduct an updated refractory bauxite
    market study to establish world market reception to a new source of
    premium quality sintered bauxite product; 
--  Continued collaboration with potential off-take customers to refine
    product/process as required; 



Next Steps

First Bauxite's Board of Directors ("BOD") has reviewed the Feasibility Study
and has accepted management's recommendation to approve the FS and authorize
advancing the project towards development. Specifically, the BOD has authorized
the tendering of the detail engineering contracts and instructed management to:




--  Advance the LWC ore body to NI 43-101 Compliant Mineral Reserve status
    and complete, before the end of 2010, a PEA level evaluation of the
    impact of mining the LWC on the Bonasika Project economics; 
--  Retain a Financial Advisor to prepare a financing plan; 
--  Retain a Independent Consultant to conduct a market price and supply
    impact study; 
--  Pursue off-take agreements directly with end user customers as well as
    through experienced distribution agents; 
--  Initiate detailed engineering of critical path long lead-time items. 



Conference Call

First Bauxite will hold a conference call today Thursday, July 29th 2010 at
6:00pm EST where senior management will discuss the feasibility study and
respond to questions from analysts and investors. To join the call:


In North America, Toll Free Access: 1-800-920-7487

International Access: 1-404-920-1710

Participant Pass Code: 64593659 #

About First Bauxite Corporation

First Bauxite Corporation (TSX VENTURE:FBX) is a Canadian natural resources
company engaged in the exploration and development of bauxite deposits, through
resource discovery and mining within a niche industrial market. The company has
its head-office in Vancouver and its current assets in Guyana, South America and
is managed by experienced geoscientists and business development professionals
with worldwide experience in the exploration and mining business across a number
of mineral commodities. The mission of First Bauxite is to become a near term,
medium size producer and supplier of high quality refractory grade calcined
bauxite. First Bauxite controls a large land package in Guyana's historical
coastal bauxite belt, including the Bonasika Mining License and the Waratilla
Prospecting License, covering deposits which were drilled in 1940's-60's by
ALCAN and which host near surface deposits of refractory grade bauxite. The
Company has commissioned a Feasibility Study over the Bonasika Project to
analyze the technical and economic parameters of an independent mining and
processing operation and is currently drilling the Waratilla bauxite deposits to
outline the resources and to upgrade the historical reserves to NI 43-101
compliance. First Bauxite has additional upside potential to the metallurgical
bauxite business, through an option agreement with Rio Tinto Mining and
Exploration Ltd, whereby Rio can earn up to 75% interest in the Company's
exploration ground by expending up to US$58 million in stages. Finally, the
Company has entered into an agreement to acquire all of the issued and
outstanding shares of Bauxite Corporation of Guyana Inc. ("BCGI") and
accordingly, 100% of its interest in the contiguous Tarakuli and Tarakuli
North-West Prospecting Licenses in Northeast Guyana, which host an historical
inferred bauxite resource of significant size and quality. For further
information on First Bauxite Corporation, please visit our corporate website at
www.firstbauxite.com.


Qualified Person's Statement

Mr. Daniel Houde, Eng., of Met-Chem Canada Inc., a qualified person under NI
43-101, is independent of the Corporation and has reviewed the scientific and
technical information in this news release and found it conform to the
Feasibility Study Report.


A NI 43-101 compliant Technical Report will be filed on the Company's website
and on SEDAR within 45 days.


On behalf of The Board of Directors of First Bauxite Corporation

Ioannis (Yannis) Tsitos, President & Director

Hilbert N. Shields, CEO & Director

This document contains certain forward looking statements which involve known
and unknown risks, delays, and uncertainties not under the Company's control
which may cause actual results, performance or achievements of the Company to be
materially different from the results, performance or expectation implied by
these forward looking statements.