UEX Corporation ("UEX") is pleased to announce the results from the final 11 drill holes of the Summer/Fall 2006 advanced exploration program at the Horseshoe Deposit. The Raven and Horseshoe Deposits ("Raven-Horseshoe") are located within UEX's 100% owned Hidden Bay Project in the eastern Athabasca Basin of northern Saskatchewan, Canada, close to Cameco Corporation's ("Cameco") Rabbit Lake and AREVA's McClean Lake milling operations.

Raven-Horseshoe hosts a total historical resource estimate of 6.7 million tonnes at an average grade of 0.16% U3O8, representing approximately 23 million contained pounds of U3O8. [Note: this is a historical resource completed by Gulf Minerals ("Gulf") that was not estimated using current Canadian Institute of Mining, Metallurgy and Petroleum categories based on widely spaced drill holes, and for which no current resource or reserve confidence categories were applied.] For the purposes of clarity in referring to internal zones developed within them, Raven and Horseshoe will be referred to as separate deposits in this and future disclosure.

"Historical Raven-Horseshoe mineralization is situated entirely within competent basement rocks, similar to Cameco's nearby Eagle Point Deposit at Rabbit Lake with no overlying sandstone. Similar underground ramp access and conventional underground mining methods employed at Eagle Point could be used at Raven-Horseshoe if an economic resource is defined," said Stephen Sorensen, President and CEO of UEX.

The results from the Summer/Fall program, all drilled within the Horseshoe Deposit, included, in hole HU-22, 0.39% U3O8 over 38.97 metres from 208.52 metres to 247.49 metres, including 1.19% U3O8 over 3.01 metres and 1.37% U3O8 over 4.62 metres, and, in hole HU-24, 0.20% U3O8 over 36.30 metres from 307.50 metres to 343.80 metres, including 0.36% U3O8 over 11.30 metres.

"HU-22 and HU-24 extend the Horseshoe mineralization defined by the previously-reported intersection in hole HU-16 of 12.35 metres grading 4.53% U3O8 to an adjacent section 60 metres to the northeast into an area outside the known historical resource," said Sorensen. Sorensen went on to say that: "HU-16 and HU-22 are the best holes ever reported from Raven-Horseshoe."

The 11 drill holes reported here are the final holes of the 27-hole 2006 Summer/Fall drilling program, which forms part of the Phase 2 drilling program within Raven-Horseshoe. UEX's Phase 2 program is intended to provide sufficient drilling density to enable calculation of a National Instrument 43-101 ("N.I. 43-101") compliant resource estimate. The program is planned to continue in January 2007 using 4 drill rigs, to provide further infill and step-out drilling.


2006 Summer/Fall Drilling Results

Drilling reported here comprises 6 holes from section 4700 N in the Horseshoe Deposit, located 60 metres northeast of the previously-released intercept in hole HU-16 (4.53% U3O8 over 12.35 metres), which represents the best intercept to date in the deposit, on section 4640N, two holes (HU-26, HU-27) drilled to commence further drilling on additional sections to the north, and three holes (HU-17, HU-23 and HU-25) completed to infill previously drilled areas on and grid south of section 4640N. UEX's drilling has identified two sub-zones within the Horseshoe Deposit, named the "A" and "B" zones. The latest intercepts expand the extent of both of these zones. Drill hole results are listed in Table 1. Significant results include the following mineralized intersections, for which true thickness has not yet been determined:

• Hole HU-22: 0.39% U3O8 over 38.97 metres from 208.52 metres to 247.49 metres, including 1.37% U3O8 over 4.62 metres and 1.19% U3O8 over 3.01 metres (A zone)
• Hole HU-24: 0.20% U3O8 over 36.30 metres from 307.50 metres to 343.80 metres, including 0.36% U3O8 over 11.30 metres (probable B zone)
• Hole HU-20: 0.53% U3O8 over 5.55 metres from 292.00 metres to 297.55 metres and 0.25% over 4.82 m from 279.68 metres to 284.50 metres (B zone)
• Hole HU-19: 0.58% U3O8 over 2.20 metres from 259.50 metres to 261.70 metres (B zone)

The Horseshoe A and B zones are interpreted as two shallow, southeast-dipping, zones of hematite-clay-pitchblende alteration that strike in a northeast direction. UEX's drilling continues to define mineralization within the sub-zones. The A and B zones occur at vertical depths of 110 to 275 metres and 180 to 330 metres below surface, respectively, with both deepening to the northeast. The strike length of both sub-zones is still open to the northeast, and has now been expanded to at least 200 metres. The intercept reported in HU-16 occurs in the A zone, which is also host to the intercept in hole HU-22, reported above, and which is located 60 metres northeast of hole HU-16. The intercept in hole HU-24 lies 50 to 80 metres beneath the A zone, and may define a southeast extension of the B zone, or a steeper, down dip extension of the A zone located in hole HU-22. Both the A and B zones are open to the northeast into areas outside the limits of the historical Gulf drilling, and the intercept in hole HU-24 is open both to the south and east. An additional hole in this area, hole HU-17, drilled 40 metres grid south from hole HU-16 on the same cross section, did not obtain any significant intercepts, and bounds the A zone to the south on that section.

In addition to the drill holes described above, two further holes, HU-23 and HU-25, were completed to infill previously-drilled areas grid south of section 4640N. Both intersected low-grade mineralization, which confirms the continuity of portions of the A zone through these areas and demonstrates that the mineralization in hole HU-25 still open to the north.

Full results are shown in Table 1 below. Only intervals with grades greater than 0.15% U3O8 and a grade-thickness product of greater than 0.1 are listed in Table 1. Analyses were performed by the Saskatchewan Research Council Geoanalytical Laboratories ("SRC") utilizing ICP. True widths of mineralized intervals have not yet been determined.


2006 Geophysical Survey

Gulf carried out geophysical surveys over Raven-Horseshoe in the 1970's that identified an east-northeast trending coincident resistivity, gravity and magnetic low anomaly which corresponds with the known areas of mineralization at Raven-Horseshoe. The gravity anomaly broadens to the east and extends south of the historically-defined area of mineralization, into an area where historical drill holes are sparse and often shallow. The anomaly may reflect lower density clay alteration within the quartzite sequence that could be host to uranium mineralization. UEX's 2006 drilling program suggests that the alteration, and potentially mineralization intersected in the A and B zones, may extend eastward into the poorly-tested portions of this anomaly.

Gulf's resistivity survey was less extensive than the gravity and magnetic surveys, and was limited to an area directly over the known areas of mineralization at Raven-Horseshoe. Recently, resistivity surveys elsewhere in the Athabasca Basin have successfully defined clay alteration in sandstone associated with uranium deposits to much greater depths than 1970's-style surveys. To better define the extent of clay alteration at Raven-Horseshoe, UEX carried out a resistivity survey over Raven-Horseshoe in November 2006 that extended beyond the coverage of the historical Gulf survey area. The survey has identified a large resistivity anomaly that is coincident with the historic Gulf gravity anomaly, and which extends east and southeast of the Horseshoe Deposit. Several widely spaced diamond drill holes are planned to test this area during the 2007 program.

Raven-Horseshoe Winter 2007 Exploration Program
Four diamond drills will test the deposit area with a planned metreage of approximately 24,000 metres. Objectives of the program are fourfold:

• to continue drilling step-out drill holes to the northeast in successive cross sections spaced 60 metres apart to test the extent of newly defined, and historically intersected mineralization in the Horseshoe Deposit;
• to provide 15 to 30 metre spaced infill drilling of mineralization intersected during the 2006 program;
• to test peripheral geophysical targets and potential extensions of mineralization;
• to drill central portions of the Raven Deposit, where only widely-spaced historical Gulf drilling has been completed, and where Gulf obtained intercepts of up to 0.60% U3O8 over 11.28 metres in hole LB-040.

It is anticipated that the 2007 winter program will be of sufficient drilling density to provide the basis for calculation of a N.I. 43-101 compliant resource estimate for the central Horseshoe Deposit (A and B zones), and will define the extent and continuity of significant mineralization in other portions of Raven-Horseshoe defined by historical drilling. Additional drilling may be required to infill these other areas during the summer of 2007 prior to inclusion in a resource estimate.
Golder Associates will continue environmental baseline studies during 2007. In addition, UEX has engaged Golder to begin a study of geotechnical and metallurgical data from Raven-Horseshoe drill core for the purposes of future feasibility studies.

About the Raven and Horseshoe Deposits
Raven-Horseshoe are basement-hosted type deposits and are located approximately 5 kilometres southeast of the edge of the Athabasca Group sandstones, which normally cover uranium deposits in the Athabasca Basin. They are located less than 5 kilometres south of the Rabbit Lake Mill owned by Cameco Corporation ("Cameco") and 12 kilometres southeast of AREVA's McClean Lake uranium mining and milling operations.

Raven-Horseshoe are comprised of two shallow plunging deposits developed over a 2.5 kilometre strike length, and at depths of 50 to 450 metres below surface in quartzite. Mineralization is hosted by zones of hematite alteration which fringe the margins of a broad, south dipping, fault-controlled clay alteration zone, in a geometry that is comparable to some roll-front style uranium deposits. Unlike unconformity-type deposits such as McArthur River and Cigar Lake, Raven-Horseshoe lie within competent pre-Athabasca basement rocks with no overlying sandstone that could allow underground ramp access and conventional underground mining methods if an economic resource is defined. Cameco's producing Eagle Point Mine, located 17 kilometres to the northeast, is also in basement rocks and is mined by conventional underground methods.

UEX's drilling programs at Raven-Horseshoe are designed to identify bodies of coherent higher-grade mineralization within the historical Gulf resource, and potential extensions of mineralization not identified by Gulf, which could be mined selectively by underground methods. Drilling reported to date by UEX during 2005 and 2006 has tested 250 metres of the 1,100 metre strike length of the Raven Deposit, and approximately 450 metres of the 800 metre strike length of the Horseshoe Deposit, as defined by Gulf.

To view cross sections of Raven-Horseshoe, please access UEX's website at www.uex-corporation.com under "Latest Updates".

Sample Handling and Quality Assurance
Geochemical samples are selected with the aid of a hand-held scintillometer to identify areas of above-background radioactivity. Samples are split, with half remaining in the core box, and the remainder shipped to SRC where they are crushed and ground to minus 106 microns. The pulp is digested in aqua regia leach and analyzed by ICP for uranium and other elements. In addition to the geochemical analyses, down-hole probe radiometric results, obtained for all drill holes on completion of drilling, provide an independent check of the geochemical data. Probe results can be used for grade calculations where poor ground conditions occur and drill core recoveries are low, although at Raven-Horseshoe recoveries are generally at, or close to, 100%. UEX has commenced systematic insertion of sample blanks into the sample stream. In addition, repeat analyses are routinely analyzed, and laboratory standards are inserted by SRC to assess sample repeatability and accuracy of results.

The technical information in this news release has been compiled by David Rhys, P. Geo., a qualified person as defined by N. I. 43-101.

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. 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 venture with AREVA that is operated by UEX, ten under option from AREVA and one under option from Japan-Canada Uranium Company, Limited, which are operated by AREVA. The 19 projects, totaling 386,650 hectares (955,400 acres), are located in the eastern, western and northern perimeters of the Athabasca Basin, the world's richest uranium belt, which accounts for approximately 30% of the global primary uranium production. UEX's exploration budget for 2006 was $19.0 million, and the Company has a cash position of approximately $77.5 million.

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 ("statements") which are subject to a variety of risks and uncertainties beyond UEX's ability to control or predict, and which could cause actual events or results to differ materially from those anticipated in such statements. Although UEX believes that the assumptions inherent in the statements are reasonable, undue reliance should not be placed on them.

Table 1.

Summer/Fall 2006 Horseshoe Drilling Program

Significant Intersections from Drill Holes HU-01 to HU-27

Only intervals with grades greater than 0.15% U 3 O 8 and grade-thickness product greater than 0.1 are listed below. Analyses performed by SRC by ICP.

Hole	Total Depth of Hole (metres)	From (metres)	To (metres)	Length (metres)	Avg. Grade Within the Intersection (% U 3 O 8 )
HU-27	452	309.60	311.30	1.70	0.39
HU-26	368	No intervals grading more than 0.15% U 3O 8
HU-25	340	172.51	173.26	0.75	0.18
		209.09	210.00	0.91	0.18
HU-24	361	307.50	343.80	36.30	0.20
	Including	322.20	333.50	11.30	0.36
HU-23	288	174.90	176.25	1.35	0.30
HU-22	359	208.52	247.49	38.97	0.39
	Including	208.52	211.53	3.01	1.19
	and	222.45	227.07	4.62	1.37
		257.60	258.18	0.58	0.31
		325.23	325.55	0.32	0.33
HU-21	347	310.00	311.40	1.40	0.19
		312.60	313.00	0.40	0.32
		319.50	320.00	0.50	0.26
HU-20	341	279.68	284.50	4.82	0.25
		292.00	297.55	5.55	0.53
	Including	294.50	295.23	0.73	1.54
		301.00	301.69	0.69	0.22
HU-19	311	94.40	95.20	0.80	0.23
		207.60	209.50	1.90	0.25
		221.10	221.40	0.30	0.36
		225.80	227.50	1.70	0.22
		252.70	253.80	1.10	0.53
		259.50	261.70	2.20	0.58
		276.00	278.50	2.50	0.38
	Including	277.90	278.50	0.60	1.36
		284.50	285.00	0.50	0.40
HU-18	356	111.80	112.15	0.35	0.21
		245.60	246.25	0.65	0.19
		250.10	251.30	1.20	0.16
		259.00	260.70	1.70	0.68
HU-17	311	No intervals grading more than 0.15% U 3O 8
HU-16*	272	199.60	213.85	14.25	3.97
	Including	201.50	213.85	12.35	4.53
	which includes	204.80	208.20	3.40	10.30
	which includes	204.80	205.40	0.60	22.17
	and	212.85	213.60	0.75	12.38
HU-15*†	320	180.50	192.00	11.50	0.62
	Including	180.50	183.40	2.90	0.76
	which includes	181.00	181.40	0.40	3.81
	and	188.80	191.00	2.20	1.94
		193.60	194.20	0.60	0.20
HU-14*	309	168.70	169.50	0.80	0.28
		179.90	181.40	1.50	0.44
		208.20	208.60	0.40	0.31
HU-13*	317	239.00	242.35	3.35	0.38
	Including	240.70	242.35	1.65	0.60
HU-12*	321	187.00	191.20	4.20	0.31
		196.30	197.30	1.00	0.24
HU-11*	341	242.66	243.55	0.89	0.47
		253.30	257.85	4.55	0.81
	Including	256.08	257.85	1.77	1.75
HU-10*		No intervals grading more than 0.15% U 3O 8
HU-09*	266	190.90	191.20	0.30	0.58
HU-08*	353	156.30	157.40	1.10	0.26
		164.30	173.00	8.70	0.25
	Including	165.50	167.40	1.90	0.58
		184.50	186.00	1.50	0.18
HU-07*	323	163.58	175.14	11.56	0.40
	Including	163.85	164.52	0.67	1.14
	and	166.08	171.26	5.18	0.58
	which includes	170.74	171.26	0.52	1.89
HU-06*	302	166.93	168.23	1.30	0.21
		171.85	183.30	11.45	0.33
	Including	174.64	178.20	3.56	0.61
	and	180.47	180.67	0.20	2.52
HU-05*		No intervals grading more than 0.15% U 3O 8
HU-04*		No intervals grading more than 0.15% U 3O 8
HU-03*		No intervals grading more than 0.15% U 3O 8
HU-02*		No intervals grading more than 0.15% U 3O 8
HU-01*		No intervals grading more than 0.15% U 3O 8
* Results previously announced. † Includes unsampled interval from 185.7-186.9 m, composited here at zero grade. Interval has now been sampled and will be reported when results are received.