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Re: News Release - Friday, November 28, 2008
Gold Wheaton Signs Definitive Agreement With First Uranium
Corporation
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Vancouver, British Columbia: November 28, 2008 - Gold Wheaton Gold
Corp. (TSX-V: GLW) ("GWC") is pleased to announce that Gold Wheaton
(Barbados) Corporation ("Gold Wheaton"), a wholly-owned subsidiary of
GWC, has signed a definitive agreement with First Uranium Corporation
(TSX:FIU, JSE:FUM) ("First Uranium") further to the letter of intent
which was previously announced by GWC on November 4, 2008. Gold
Wheaton will purchase a minimum of 20,000 ounces of gold in 2009 (up to
a maximum of 25 percent of the gold production) and thereafter 25
percent of the life-of-mine gold production from First Uranium's Mine
Waste Solutions tailings recovery operation ("MWS") in South Africa.
First Uranium will submit applications for approval of the transaction
to the South African Reserve Bank and the South African Revenue
Service. Upon satisfaction of certain escrow deposit conditions, Gold
Wheaton shall pay US$50 million (the "First Payment") into escrow, with
the escrow to be released upon the satisfaction of certain closing
conditions including registration of a notarial bond on certain of the
MWS tailings dams and a pledge of 25 percent of the gold produced from
MWS.
Under the terms of the transaction, in addition to the First Payment,
Gold Wheaton shall pay First Uranium:
- subject to financing, US$75 million on or before three months
following closing (the "Second Payment"), failing which the purchase
shall be reduced to 10 percent of the life-of-mine gold production
and appropriate credits will be made; and
- an ongoing payment equal to the lesser of US$400 per ounce and the
prevailing spot price (subject to an annual inflation adjustment of
1 percent, starting in the fourth year after the First Payment).
Gold Wheaton will not be required to contribute to any capital or
exploration expenditures in respect of First Uranium's tailings
recovery operation. Gold Wheaton will be provided with a right of
first refusal on any future gold stream agreements or similar
arrangements proposed to be entered into by First Uranium or its
subsidiaries in respect of the MWS project or the Ezulwini mine.
"We are pleased to move forward with First Uranium on this transaction
and cement a long term relationship." commented David Cohen, Chairman
and CEO of Gold Wheaton. "In addition to their current production, they
have made substantial positive progress on the phase 2 expansion
project and remain on track for the planned commissioning in the second
quarter of 2009."
Closing of the transaction is expected to occur on or before December
12, 2008.
For further information, please contact:
Gold Wheaton Gold Corp.
David Cohen, Chairman and Chief Executive Officer
+1 (778) 373-0107
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy and accuracy of the content of this
news release.
Cautionary Note Regarding Forward-Looking Statements
Safe Harbor Statement under the United States Private Securities
Litigation Reform Act of 1995: Except for the statements of historical
fact contained herein, the information presented constitutes
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Such forward-looking
statements, including but not limited to those with respect to the
price of gold, platinum or palladium, the timing and amount of
estimated future production, costs of production, reserve determination
and reserves conversion rates involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of GWC or First Uranium to be materially
different from any future results, performance or achievements
expressed or implied by such forward-looking statements. Such factors
include, among other risks, risks related to the integration of
acquisitions, risks related to international operations, risks related
to joint venture operations, the actual results of current exploration
activities, actual results of current reclamation activities,
conclusions of economic evaluations and changes in project parameters
as plans continue to be refined as well as future prices of gold,
platinum or palladium, as well as those factors discussed in the
section entitled "Description of Business - Risk Factors" in GWC's
Annual Information Form dated August 19, 2008 as filed on SEDAR.
Although GWC has attempted to identify important factors that could
cause actual results to differ materially, there may be other factors
that cause results not to be as anticipated, estimated or intended.
There can be no assurance that such statements will prove to be
accurate as actual results and future events could differ materially
from those anticipated in such statements. Accordingly, readers should
not place undue reliance on forward-looking statements.
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Copyright (c) 2008 GOLD WHEATON GOLD CORP. (TSX-V:GLW) All rights
reserved. For more information visit our website at
http://www.goldwheaton.com/ or send mailto:info@goldwheaton.com
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