FIRST METALS INC.55 University Avenue, Suite 1010TORONTO ON M5J 2H7Tel: 416-594-3223 Fax: 416-862-2659News Release "FMA"-TFirst Metals Operations Update
October 24th, 2008. Toronto, Ontario- First Metals Inc. ("FMA"-T) announces the followingupdate on its operations near Rouyn-Noranda, Quebec.Operations at the Fabie Mine are continuing with a number of cost cutting measures beingimplemented.
Company Treasurer, Jay Richardson, noted that "Despite the recent precipitous drop in the price ofcopper, the operations are benefiting from the favourable U.S./Cdn dollar exchange rate. The costsassociated with production, transportation and milling are all denominated in Canadian currency,whereas the payments for the delivered metals are in U.S. currency. Even at Thursday"s closingcopper price of U.S.$1.85/lb (equal to Cdn $2.34/lb), we are still above our cash cost of production. Weare continuing to generate cash at these levels, albeit at a significantly reduced rate."Development work at the Magusi VMS polymetallic deposit, located approximately 1.2km from theFabie Mine, has been placed on hold in an effort to preserve cash pending a recovery of copper andzinc prices.
Earlier this year, the Company completed a 20,000m program of in-fill drilling program from surfaceon 20m X 20m spacing to a depth of 350m. An updated National Instrument 43-101 TechnicalReport on the Magusi deposit is being prepared by Scott Wilson Roscoe Postle Associates Inc. Inaddition, the Company has upgraded the road to the site, installed infrastructure and collared theramp. The cost of placing the project on hold is not onerous.
Company President, Richard Williams, stated that "Given the amount of work that has beencompleted to date on the Magusi Project, the project can be advanced in a relatively short time onceconditions stabilize and metal prices improve. These cost saving measures are designed to preservecash and protect the long term interests of our shareholders and Noteholders. Close monitoring willcontinue."
First Metals Inc. has approximately 42.8 million shares issued and outstanding.
For further information, please visit the Company"s web site at or contactRichard Williams, President and CEO at (416) 364-3123 or e-mail:.We seek safe habour.