financing and permitting issues will constrain production at MWS tailings (Gold Wheaton offtakes 25% of production) toonly one of three plants. The company believes that under its revised plan the MWS No. 5 dam should provide sufficient
tailings deposition capacity for one operating gold plant through the end of December, 2011. Consequently, with this
construction suspension and reduced production, First Uranium anticipates annual gold production of approximately 57,000
ounces in 2011 and 64,000 ounces in 2012 at MWS compared to earlier expectations of 175,000 ounces by 2011. However,
First Uranium also believes that the ability to secure the environmental authorization, as well as funding, sooner could
accelerate the annualized gold production rate to 140,000 ounces per annum. Gold Wheaton reduced its overall forecast gold
production based on reduced production from MWS by 20,000 ounces (17% reduction). Additionally, First Uranium announced
that ramp-up issues will affect fiscal 2011 production from the Ezulwini mine and delay ramp-up to max level of 265,000
ounces per year until fiscal 2013 (Gold Wheaton offtakes 7% of production). However Gold Wheaton expects to continue to
receive the contractually guaranteed production ounces from Ezulwini through 2010 and 2011. One Bay Street analyst
commented that the reduced guidance for MWS calendar 2010 and 2011 would lower his 5%/spot gold net asset value for Gold
Wheaton by US
.02. Under a worst case scenario if First Uranium does not complete third gold plant by June 2010, Gold
Wheaton is entitled to a penalty payment of US$42 million. If no payment is assumed and there is no gold stream beyond
December 2011, the analysts estimates that net asset value would decline by a further
.07 per share