FIRST METALS INC. ANNOUNCES DEVELOPMENTS IN RESTRUCTURING PROCESS

TORONTO, March 24 /CNW/ -- 
TORONTO, March 24 /CNW/ - First Metals Inc (FMA.H-NEX) (the "Corporation") announced today that pursuant to its ongoing restructuring process
 that it has executed an agreement for the disposition of its Fabie Bay
 and Magusi River properties, together with certain assets related
 thereto, for aggregate consideration of $500,000 payable in common
 shares of Globex Mining Enterprises (TSX:GMX) at a deemed issue price
 of $3.00 per share.  In connection with the foregoing transaction the
 Corporation also announced that Quebec Superior Court, Commercial
 Chamber today issued an order appointing Demers Beaulne Inc. to act as
 receiver to certain assets of the Corporation in order to complete the
 disposition of the foregoing assets. It is anticipated that the
 transfer of such assets will be completed on or about March 28, 2011. 
 The net proceeds of this sale will be used to repay amounts owing to
 the Corporation's secured noteholders.


The Corporation also announced today that the previously disclosed
 disposition of certain of its heavy equipment for total cash proceeds
 of $1,100,000 has been completed and the net proceeds from such sale
 are being held in trust in favour of the Corporation's secured
 noteholders.


About FMA


First Metals Inc. is a resource company with two main Zinc-Copper
 deposits, Fabie Bay and Magusi River.  Fabie Bay was producing until
 December 2008 when production was suspended.  The company filed a
 proposal under Part III of the Bankruptcy and Insolvency Act in April
 2009.  The company received approval for is proposal under Part III of
 the Bankruptcy and Insolvency Act in June 2009.


Some of the statements contained in this release are forward-looking
 statements, such as estimates and statements that describe the
 Corporation's future intentions, plans, objectives or goals, including
 words to the effect that the Corporation or management expects a stated
 condition or result to occur. Since forward-looking statements address
 future events and conditions, by their very nature, they involve
 inherent risks and uncertainties. Actual results in each case could
 differ materially from those currently anticipated in such statements.


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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p Michael Churchill, President and CEO, at [phone] /p 

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