VIL - Village Main Reef Limited - First Uranium Corporation to dispose of

VIL - Village Main Reef Limited - First Uranium Corporation to dispose of       
Mine Waste Solutions (Proprietary) Limited and Ezulwini Mine for no less than   
US$405 million                                                                  
Village Main Reef Limited                                                       
(formerly known as Village Main Reef Gold Mining Company (1934) Limited)        
(Registration number 1934/0057034/06)                                           
Share Code: VIL                                                                 
ISIN: ZAE000154761                                                              
("Village")                                                                     
FIRST URANIUM CORPORATION ("FIU") TO DISPOSE OF MINE WASTE SOLUTIONS            
(PROPRIETARY) LIMITED ("MWS") AND EZULWINI MINE FOR NO LESS THAN US$405         
MILLION                                                                         
Village shareholders are referred to the announcement by FIU on 2 March 2012,   
released on the news service of the Toronto Stock Exchange, and the             
announcement by FIU today, released on the Securities Exchange News Service     
of the JSE Limited, dealing with FIU`s intention to dispose of -                
    *    MWS and its subsidiaries to AngloGold Ashanti, for a cash              
         consideration of US$335 million; and                                   
    *    the Ezulwini Gold Mine to Gold One International Limited for a cash    
consideration of US$70 million,                                        
as separate transactions (collectively "the disposal").                         
In this regard, Village reminds its shareholders that Village is the holder     
of 392,874 Mine Waste Solution Rand Denominated Convertible Notes with a face   
value of R1000 per note ("MWS Notes") which are well secured over the assets    
of MWS, as well as 13,556,739 FIU ordinary shares (comprising 5,7% of the       
issued share capital of FIU).                                                   
The announcement by FIU indicates that it is the intention of FIU to repay      
the MWS Notes in full from the proceeds of the disposal. The stated             
completion date is the end of June 2012 and at that time Village will receive   
some R393 million in lieu of the MWS Notes and a further approximate R20m for   
its remaining FIU shares.                                                       
Village has in the past indicated that it will distribute most of the           
proceeds from the settlement of the MWS Notes to Village shareholders by way    
of a special dividend. At the time of receiving the proceeds, the board of      
Village will consider what amount, if any, needs to be used to further          
strengthen the Village balance sheet or to fund further growth opportunities    
that could create value for Village shareholders.                               
The proposed disposal by FIU remains subject to a number of conditions.         
Bernard Swanepoel, Village CEO, commented: "The potential disposal by FIU is    
obviously great news for Village as this would enable us to unlock full and     
fair value from our secured MWS Notes as well as the remainder of our FIU       
shares"                                                                         
05 March 2012                                                                   
Sponsor                                                                         
Java Capital                                                                    
Investor relations                                                              
Vestor                                                                          
Date: 05/03/2012 11:59:40 Supplied by www.sharenet.co.za                     
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