Year’s End President’s Report

Dear Shareholders and Friends,

With 2009 rapidly drawing to a close, I would like to take this occasion to reflect on accomplishments and challenges of the last year and to look ahead to 2010 and what it holds for First Bauxite Corporation.

Much has transpired in the market place in the past year, and the effects have been felt around the world. Starting in the mid-2008, the resource sector has been severely punished, with carried effects into the first half of 2009. The volatility of the financial markets and the restricted availability of financing for junior explorers and developers in the mining industry dictated focused exploration expenditures and limited spending in other corporate sectors. These market conditions, however, have offered FBX unprecedented opportunities to strengthen the Company.

The 2009 calendar year has truly been remarkable for First Bauxite Corporation in spite of the challenges we faced due to the economic turn down. In the first half of the year, our Board of Directors and Management took the conscious decision to focus the Company’s limited treasury at that time, rather than slowing down, to continue drilling our Bonasika bauxite deposits in Guyana. During these first 6 months, the company managed to raise in excess of $10 million and in June, we announced our strategic relationship with Pacific Road Capital Management and Pacific Road Resource Funds of Sydney, Australia. We implemented changes in our BOD and Mr. Lee Graber was added to our Board. Resource Outline drilling has been completed at Bonasika 1, 2 and 5 blocks of the Bonasika Mining License in Guyana and more than 450 holes were drilled over these bauxite deposits. Drilling results, various metallurgical tests and our bauxite’s quality have been superb indicating high alumina, low iron & titanium, moderate silica and very low levels of Alkalis, therefore a product that falls comfortably within the Refractory Calcined (RASC) bauxite category. The company has commissioned a full Feasibility Study under the supervision of Met-Chem of Montreal, Quebec, and till now we have achieved significant progress in the preparation of this Feasibility Study for the development of the Bonasika Refractory Bauxite Project. The company purchased a new state-of-the-art sonic drill and has commenced drilling of the bauxite deposits contained in the Waratilla-Cartwright Prospecting License in Guyana. During the year, progress has also been achieved on the exploration of our Essequibo regional exploration license by our JV partner Rio Tinto Alcan. First Bauxite’s management has been active in discussions with general bauxite and refractory bauxite industry members, throughout the whole spectrum, from the operating and engineering front to potential future clients of our envisaged product. Finally, management has not stopped reviewing new bauxite properties to potentially enhance and compliment our portfolio.

Most importantly for our shareholders, our Company’s success has been reflected to a robust stock price throughout the whole year; from a low of $0.73 last December, FBX reached an all-time high at $1.40 in recent weeks, and stock liquidity has significantly increased in the last quarter of 2009.

We look forward to 2010 with high expectations. Management anticipates that exploration and development activities in all our projects in Guyana will continue and the Bonasika Feasibility Study will be completed and presented to our BOD within the Q1 of the year. Subsequently, a NI 43-101 compliant resource and feasibility study will be filled and announced to the general public, and subject to being positive, a decision to proceed with project financing and mining project development will be taken. The Company will continue to focus on what it does best and all in our organizational structure look into 2010 with optimism.

In closing, as President of First Bauxite Corporation, I would like to thank and express our sincere appreciation to all of our shareholders, personnel, management and Directors, contractors, associates, authorities and friends for their continued trust, support and participation in our organization.

With my best wishes for the holiday season and may you enjoy HEALTH, PEACE & PROSPERITY in the New Year.

 

Yannis Tsitos

President & Director

First Bauxite Corporation