UEX Corporation ("UEX") is pleased to announce that ground geophysical surveying is underway on its Riou Lake Project ("Riou Lake"), and has been recently completed on its Munroe Lake Project ("Munroe Lake"), one of the Northern Athabasca Uranium Projects (the "Northern Projects"). Riou Lake and Munroe Lake are 100%-owned by UEX and are located in the northern Athabasca Basin of Saskatchewan. The geophysical surveys were designed to better detail prospective areas previously explored with electromagnetic surveys, and drilling programs in 2006.
Riou Lake
2006 Drilling Program Results
In the fall of 2006, UEX carried out a helicopter-supported diamond drilling program on high-priority targets along the KC Conductor. Three holes were drilled totaling approximately 2,487 metres, including a hole that was restarted from a wedge at 335 metres depth after the initial hole was lost in highly fractured rock. One of the three holes encountered a narrow interval of uranium mineralization.
Hole RLG-D25 intersected uranium-bearing basement rock just below the unconformity at 602.3 metres, grading 0.66% U3O8 over 0.10 metres. The geochemical signature of the occurrence is similar to that of uranium deposits in the Athabasca Basin with accompanying enrichment in nickel, arsenic, cobalt, copper, lead, potassium and magnesium. A subsequent re-evaluation of the KC Conductor in the area of hole RLG-D25 indicates that the hole narrowly missed the optimum target location where the top of the conductor intersects the unconformity, interpreted to be approximately 25 metres north of the hole collar. Follow-up drilling is planned for this prospective area of the KC Conductor in 2007.
2007 Exploration Programs
A DC Resistivity survey totaling approximately 25.0 line kilometres is underway at Riou Lake within the Hocking Lake Corridor, a highly-prospective area with known faulting, graphitic conductors, and sandstone alteration on surface and in drill holes.
Follow-up drilling of any prospective targets interpreted from the ongoing ground surveys would occur as part of a summer 2007 helicopter-supported drilling program, or from a land-based drill, depending on the access to the target location.
Northern Projects
2006 Drilling Program Results
During the summer and fall of 2006, as part of the helicopter-supported exploration program UEX drilled 4,353 metres in 8 holes on four of the Northern Projects, namely Butler Lake, Fond du Lac, Munroe Lake, and Otherside River. The drilling program targeted anomalous geophysical responses obtained from the 2005 airborne and 2006 ground geophysical programs. None of the holes intersected significant uranium mineralization. However, on the Munroe Lake, hole ML-02 encountered strong dravite alteration in the sandstone. At the Butler Lake Project, anomalous uranium values up to 5 to 10 times background were observed in the basal 30.0 metres of sandstone. Hole BTL-01 also encountered anomalous nickel values below the unconformity, which was reached at 403.1 metres. A subsequent borehole electromagnetic survey of hole BTL-01 indicated that a strong basement conductor lies about 50 metres below the end of hole at 540.0 metres. Follow-up drilling is planned.
2007 Exploration Programs
A time-domain electromagnetic survey totaling 70.0 line kilometers has been recently completed at Munroe Lake in the vicinity of hole ML-02, and on other conductors interpreted from UEX's 2005 MEGATEM airborne survey. Follow-up drilling of interpreted conductors is planned as part of the helicopter-supported drilling program during the summer and fall of 2007.
The technical information in this document has been compiled and reviewed by Sierd Eriks, P. Geo., a qualified person as defined by National Instrument 43-101. True widths of drill hole intervals have not yet been determined. To access a map depicting UEX's Riou Lake and Northern Projects, please visit UEX's website at www.uex-corporation.com under "Latest Updates", and "Map Gallery".
About UEX
UEX is a Canadian uranium exploration company formed under an agreement between Pioneer Metals Corporation and Cameco Corporation. Cameco Corporation, 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 approximately 385,452 hectares (952,452 acres), are located in the eastern, western and northern perimeters of the Athabasca Basin, the world's richest uranium belt, which accounts for approximately 25% of the global primary uranium production. UEX's exploration budget for 2007 is approximately $25.0 million and the Company has a cash position of approximately $72.4 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 "forward-looking statements" that are based on UEX's current expectations, estimates, forecasts and projections. These forward-looking statements include statements regarding UEX's outlook for our future operations, plans and timing for the commencement or advancement of exploration activities on our properties, and other expectations, intention and plans that are not historical fact. The words "estimates", "projects", "expects", "intends", "believes", "plans", or their negatives or other comparable words and phrases are intended to identify forward-looking statements. Such forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Many of these factors are beyond the control of UEX. Consequently, all forward-looking statements made in this news release are qualified by this cautionary statement and there can be no assurance that actual results or developments anticipated by UEX will be realized. For the reasons set forth above, investors should not place undue reliance on such forward-looking statements. UEX disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise.
