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Austin, TX, March 17, 2009 -- Uranium Energy Corp (NYSE-Alt: UEC; the “Company”) is pleased to announce that the Company has entered into an option and joint venture agreement (the “Agreement”) with Uran Limited (“Uran”) of Perth, Australia on the Company’s Grants Ridge Uranium Project in New Mexico. The Agreement follows Uran’s satisfactory completion of due diligence work on the project in February.
Uran can earn a 65% interest in the project from Uranium Energy Corp over a five-year option period by completing an initial payment of $75,000 in cash (payment made), plus incurring exploration expenditures of $100,000 in Year 1, $200,000 in Year 2, $300,000 in Year 3, $400,000 in Year 4, and $500,000 in Year 5, including completion of a feasibility study. Uran will also deliver a total of 3.25 million shares to the Company staged over 3 years. One-million shares have been received in accordance with the Agreement. Uran can withdraw from the joint venture after expenditures of $250,000.
The Grants Ridge Uranium Project is in the Grants Mineral Belt, in the southeastern part of the Ambrosia Lake uranium region approximately 70 miles west of Albuquerque. The Grants belt produced over 340 million pounds of U3O8 (154,545 tonnes) prior to 1986 and was the largest producing uranium field in the U.S. during the previous production cycle. The Grants Ridge Project includes nine historic uranium mines which operated prior to and during the early 1980s according to New Mexico Bureau of Geology and Mineral Resources (“NMBGMR”) Bulletin 153 (1995).
Active exploration in the area is being carried out by several companies. A number of NI 43-101-compliant resource statements have been reported in the surrounding area in the last two years, and permitting is underway to open at least two uranium mines according to public filings at the New Mexico Mining and Minerals Division office.
Amir Adnani, president and CEO, stated, “We are very pleased to be working with Uran, and to get onsite and find out the exploration potential at Grants Ridge. It’s one of a great number of properties held by the Company that show exceptional potential based on earlier exploration results. Uran Limited has a strong technical team with a mandate to acquire, develop and mine uranium deposits internationally. Uran has additional assets in the Czech Republic, Ukraine and Bulgaria.”
The Grants Ridge Project consists of 270 registered mining lode claims and several leases covering 4,260 acres (1,724 hectares) in the central part of the Grants Mineral Belt. The project targets the Todilto Limestone, which hosts numerous historic underground and open-pit mines with grades ranging from 0.18-0.38% U3O8, with an average mined grade of 0.20% U3O8. Many of the historic mines also produced vanadium according to NMBGMR Bulletin 153 (1995). Known mineralization is in fairly flat-lying stratigraphic units, at depths ranging from surface at the Section 4 and Section 9 mines, to approximately 500 feet (150 meters) at the F33 mine, underlying Grants Ridge.
Grants Ridge is a very prospective uranium project with potential for low-cost mining based on:
Uran has retained a local consulting firm to carry out the baseline studies necessary for the submission of an application for an Exploration Permit to initiate drilling. Plans for a drilling program on two areas of the project, the historic Section 4 and F33 mines, have commenced. Drilling is scheduled to commence in late 2009, subject to approval of the Exploration Permit.
Surface radiometric surveys will commence immediately in specific areas to establish radioactivity levels due to previous mining, to provide a baseline for future reclamation. A radiometric survey of existing mine waste and low-grade dumps on Section 4 indicates that these areas generally contain greater than 500 ppm U3O8, potentially highly suitable for heap leaching. Detailed surveys and mapping of the dumps are planned for this year. Other activities planned for 2009 include metallurgical studies regarding the amenability of heap leaching. A second stage of drilling is anticipated in mid-2010 so that a resource estimate can be determined.
The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 and reviewed by Clyde L. Yancey, P.G., Vice President-Exploration for Uranium Energy Corp, a qualified person under NI 43-101.
A copy of the JV Agreement was attached to the Company’s Current Report on Form 8-K dated January 14, 2009.
About Uranium Energy Corp
Uranium Energy Corp (NYSE - Alt: UEC) is a US-based resource company with the objective of becoming a near-term ISR uranium producer in the United States. Utilizing its extensive information library of historic uranium exploration and development work, the Company has acquired and is advancing uranium properties throughout the southwestern US. A Draft Mine Permit was recently issued for the Company’s lead project, the Goliad ISR Uranium Project in south Texas. Operational management is comprised of pre-eminent uranium mining and exploration professionals whose collective experience in this industry gives the Company ongoing uranium mine-finding and mine development expertise.
Contact North America: Investor Relations, Uranium Energy Corp.
Toll Free: (866) 748-1030
Fax: (512) 535-0832
E-mail: [email protected]
Stock Exchange Information:
New York Stock Exchange - Alternext Symbol: UEC
Frankfurt Stock Exchange Symbol: U6Z
WKN: AØJDRR
ISN: US916896103
Forward-Looking Statement Disclaimer
Except for the statements of historical fact contained herein, the information presented in this news release constitutes “forward-looking statements” as such term is used in applicable United States and Canadian laws. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. In particular, statements concerning historical mineral resource estimates should be viewed as forward-looking statements to the extent that they involve estimates of the mineralization that will be encountered if the property is developed. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and should be viewed as “forward-looking statements”. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and other factors include, among others, the actual results of exploration activities, variations in the underlying assumptions associated with the estimation or realization of mineral resources, the availability of capital to fund programs and the resulting dilution caused by the raising of capital through the sale of shares, accidents, labour disputes and other risks of the mining industry including, without limitation, those associated with the environment, delays in obtaining governmental approvals, permits or financing or in the completion of development or construction activities, title disputes or claims limitations on insurance coverage. Forward looking statements are made based on management’s beliefs, estimates and opinions on the date the statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable law. Such forward-looking statements reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions, including, the risks and uncertainties outlined in our most recent financial statements and reports and registration statements filed with the United States Securities and Exchange Commission (the “SEC”) (available at www.sec.gov) and with Canadian securities administrators (available at www.sedar.com). Although the Company believes that the beliefs, plans, expectations and intentions contained in this news release are reasonable, there can be no assurance those beliefs, plans, expectations or intentions will prove to be accurate. Investors should consider all of the information set forth herein and should also refer to the risk factors disclosed in the Company’s periodic reports filed from time-to-time with the SEC. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
Any historical mineral resources referred to by the Company in this news release and in any referenced technical report have not been estimated in accordance with the definition standards on mineral resources of the Canadian Institute of Mining, Metallurgy and Petroleum referred to in National Instrument 43-101, commonly referred to as “NI 43-101”. As a reporting issuer in Canada, we are required by Canadian law to provide disclosure in accordance with NI 43-101. U.S. reporting requirements for disclosure of mineral properties are governed by the SEC Industry Guide 7. NI 43-101 and Guide 7 standards are substantially different, however Guide 7 does allow the disclosure of mineral resources where required to be disclosed by foreign law.
