First Bauxite Corporation Announces Non-Brokered Private Placement

All amounts are expressed in Canadian dollars unless otherwise specified.

First Bauxite Corporation ("First Bauxite" or the "Company") (TSX
VENTURE:FBX)(FRANKFURT:FBI)(BERLIN:FBI) is pleased to announce that, further to
its news release issued May 23, 2012, it has now closed the non-brokered private
placement (the "Private Placement") to Resource Capital Fund V LP and certain
entities comprising the Pacific Road Resources Funds for a total of 22,641,510
units (the "Units") at a price of $0.53 per Unit raising a total of $12,000,000.
Each Unit consists of one common share and one-half of a transferable common
share purchase warrant (a "Warrant"). Each whole Warrant is exercisable for one
additional common share (a "Warrant Share") of the Company until October 12,
2015, at an exercise price of $0.75 per Warrant Share.


In connection with the Private Placement, a fee of $210,000 was paid in cash to
Pacific Road Capital Management Pty Limited, manager and/or advisor to the
entities comprising the Pacific Road Resources Funds, and 396,226 Units at a
deemed price of $0.53 per Unit were issued to Resource Capital Fund V LP instead
of a cash fee, with each Unit having the same terms and conditions as the Units
issued under the Private Placement with the exception of the warrants, which are
non-transferable. The common shares and Warrants issued pursuant to the Private
Placement and as fees are subject to a statutory hold period which expires on
October 13, 2012. 


The Private Placement remains subject to the final approval of the TSX Venture
Exchange.


The proceeds of the Private Placement will be used primarily to fund the
continued development of the Company's Bonasika refractory grade bauxite
property in Guyana, as well as general working capital expenses.


Funds used for the Bonasika property will include the commencement of the
Engineering Project Construction Management work, including front end detailed
engineering and design of the mine plant and processes, in addition to the
preparation of bulk sampling for distribution to potential customers, and
commercial debt financing and marketing activities. 


"We are extremely appreciative of the financial support from Pacific Road
Resources Funds and Resource Capital Funds in these demanding capital markets
conditions" stated Hilbert N. Shields, President & CEO. "Pacific Road Capital
Funds and Resource Capital Funds clearly see the longer term value in First
Bauxite by closing a private placement at a premium to market. These proceeds
will contribute significantly to First Bauxite continuing on the path to
production in 2014."


About First Bauxite 

First Bauxite Corporation (TSX VENTURE:FBX) is a Canadian natural resource
company engaged in the exploration and development of bauxite deposits in
Guyana, South America. The Company has its head office in Toronto 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 sintered
(calcined) bauxite. First Bauxite controls a large land package in Guyana's
historical coastal bauxite belt, including the Bonasika Mining License, the
Waratilla-Cartwright Prospecting License, and the Essequibo PGGS Prospecting
Permit. The Company also holds the Tarakuli and contiguous Tarakuli North-West
Prospecting Licenses in Northeast Guyana. The Company's Bankable Feasibility
Study Update defines and confirms the economic viability of an operation based
on sequential mining of the two (2) bauxite deposits (Bonasika 6 and Bonasika
7), and the construction of a washing plant facility, a sintering plant, and
load out facilities, at Sand Hills. The Bonasika 1, 2 and 5 deposits are
additional value and would increase the mine of life from 36 years to 44.5
years. For further information on First Bauxite Corporation, please visit our
corporate website at www.firstbauxite.com.


On behalf of The Board of Directors of First Bauxite Corporation

Hilbert N. Shields, President & CEO

Certain statements contained herein constitute "forward-looking statements".
Forward-looking statements look into the future and provide an opinion as to the
effect of certain events and trends on the business. Forward-looking statements
may include words such as "developing", "will", "move forward", "next",
"obtaining", "constructing" and similar expressions. These statements include,
but are not limited to, statements regarding the continued advancement of the
Bonasika Bauxite Project. These forward- looking statements are based on current
expectations and entail various risks and uncertainties. Actual results may
materially differ from expectations, if known and unknown risks or uncertainties
affect our business, or if our estimates or assumptions prove inaccurate.
Factors that could cause results or events to differ materially from current
expectations expressed or implied by the forward-looking statements, include,
but are not limited to, the effect of capital market conditions and other
factors on capital availability; availability of sufficient financing to fund
planned or further required work in a timely manner and on acceptable terms;
changes in project parameters as plans continue to be refined and other risks
more fully described in the Company's Management Discussion & Analysis of
Financial Position and Results of Operations, which is available on SEDAR at
www.sedar.com. Readers are cautioned not to place undue reliance on the
forward-looking statements contained in this press release. Except as required
by law, the Company assumes no obligation to update or revise any
forward-looking statement, whether as a result of new information, future events
or any other reason.