UEX Corporation ("UEX") has received confirmation from AREVA subsidiary COGEMA Resources Inc. ("COGEMA") that the total amount of expenditures incurred by UEX as of July 31, 2005 on COGEMA's Western Athabasca Projects (the "Projects") is $7,546,598 (CDN), and that UEX has earned its first partial interest of 12.25% in the mineral dispositions as defined in the Western Athabasca Option Agreement ("the Agreement") between UEX and COGEMA.
In March 2004, UEX and COGEMA announced the Agreement whereby UEX has an option to acquire a 49% interest in what is now ten projects located in the Western Athabasca Basin area of northern Saskatchewan. The Projects include the Shea Creek Project ("Shea Creek"), which contains the Anne and Colette uranium deposits, and the new high-grade discovery at the 63B Zone located between the two deposits (
see UEX News Release July 13, 2005).
UEX has an option to acquire a 49% interest in the Projects by funding $30 million (CDN) in exploration expenditures over the next 11 years according to the following schedule:
(Year 1): ending December 31, 2005 $2,000,000
(Year 2): January 1, 2006 to December 31, 2006 $2,000,000
(Year 3): January 1, 2007 to December 31, 2007 $2,500,000
(Year 4): January 1, 2008 to December 31, 2008 $2,500,000
(Year 5): January 1, 2009 to December 31, 2009 $2,500,000
(Year 6): January 1, 2010 to December 31, 2010 $2,500,000
(Year 7): January 1, 2011 to December 31, 2011 $3,000,000
(Year 8): January 1, 2012 to December 31, 2012 $3,000,000
(Year 9): January 1, 2013 to December 31, 2013 $3,000,000
(Year 10): January 1, 2014 to December 31, 2014 $3,500,000
(Year 11): January 1, 2015 to December 31, 2015 $3,500,000
Total $30,000,000 (CDN)
UEX earns a 12.25% interest in the Projects for every $7.5 million (CDN) spent to a maximum total interest in the Projects of 49%.
"UEX's obligation in 2005 under the Agreement is $2 million, however, results from Shea Creek have far surpassed our expectations, which has led to a significant increase in exploration on that project," said Stephen Sorensen, President and CEO of UEX. "UEX is extremely pleased with COGEMA's operations at the Projects, and in particular, their exploration success at Shea Creek."
Diamond drilling at Shea Creek is ongoing within the 63B Zone area and the Colette Deposit, and is scheduled to continue through September 2005. Recent drilling results are being received, compiled and interpreted by COGEMA and UEX plans to release those results in early September 2005.
About COGEMA
COGEMA, a uranium exploration and mining company, is a subsidiary of AREVA, a worldwide expert in the energy field with a strong industrial presence in over 40 countries. The AREVA group, through COGEMA has significant interests in several uranium deposits in the Athabasca Basin, including the producing McClean Lake Deposits operated by COGEMA, the producing McArthur River Deposit operated by Cameco Corporation ("Cameco"), and the Cigar Lake Deposit, which is scheduled for production in 2007.
About UEX
UEX is a Canadian uranium exploration company formed under an agreement between Pioneer Metals Corporation and Cameco. Cameco, the world's largest supplier of uranium, is UEX's largest shareholder and manages exploration at UEX's 100% owned Hidden Bay Project. UEX began trading on the Toronto Stock Exchange in July 2002 and is actively involved in the exploration and development of 19 uranium projects, including seven that are 100% owned and operated by UEX, one joint ventured with COGEMA that is operated by UEX, ten under option from COGEMA and one under option from Japan-Canada Uranium Company, Limited, which are operated by COGEMA. The 19 projects, totaling 386,650 hectares (955,400 acres), are located in the eastern, western and northern perimeters of the Athabasca Basin, the richest uranium belt in the world, which accounts for approximately 30% of global primary uranium production. UEX has a cash position of approximately $50.0 million (CDN).
ON BEHALF OF THE BOARD OF DIRECTORS OF UEX CORPORATION
Stephen H. Sorensen, President & C.E.O.
Forward looking statements:
This news release contains certain forward-looking statements. These forward-looking statements are subject to a variety of risks and uncertainties beyond UEX's ability to control or predict, which could cause actual events or results to differ materially from those anticipated in such forward-looking statements. Although UEX believes that the assumptions inherent in the forward-looking statements are reasonable, undue reliance should not be placed on these forward-looking statements. 
