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Uranium Energy Corp Grants Option to Neutron Energy to Acquire the Company’s Interest in the Cebolleta Uranium Project in New Mexico for $11 Million

November 12, 2009

AUSTIN TX – November 12, 2009 – Uranium Energy Corp (NYSE-AMEX: UEC, “the Company”) announces that the Company has entered into an option agreement (the “Option Agreement”) with Neutron Energy, Inc. (“Neutron”), a Nevada corporation, granting Neutron the exclusive option (the “Option”) to purchase the Company’s 49%-interest in Cibola Resources LLC (“Cibola”) for a cash payment of US$11,000,000.  In order to exercise its Option, Neutron must give the Company written notice of its intention to exercise the Option by December 31, 2009, and to pay by January 10, 2010.  If Neutron does not provide the Company with the written notice of exercise by the end of this year, the Option shall terminate and the Option Agreement shall be of no further force or effect.

Cibola is the owner of the Cebolleta uranium project, a mining lease covering approximately 6,700 acres in the Cebolleta Land Grant, 45 miles west of Albuquerque, New Mexico.  Cibola is owned 49% by the Company and 51% by Neutron, a private corporation based in Englewood, Colorado.

The status of the Cebolleta project is that the Cibola partners have recently submitted an application for a permit to proceed with exploration.

Amir Adnani, President and CEO, stated, "The Company's interest is to use the proceeds from this proposed sale to further strengthen and expand our uranium resource base in Texas.  Last month the Company announced agreements to acquire substantial additional assets in Texas, including a fully-licensed ISR processing facility, another advanced ISR project and a portfolio of prospective exploration properties.  Planning now to operate with a new regional strategy of developing satellite ISR uranium projects to feed a central processing plant, Uranium Energy Corp is acting to expand on a major opportunity in Texas."

About Uranium Energy Corp

Uranium Energy Corp. (NYSE-AMEX: UEC) is a U.S.-based exploration and development company with the objective of near-term uranium production in the U.S.  The Company’s Goliad ISR Uranium Project in South Texas is in the final stages of mine permitting for production, and was recently issued a Final Draft Mine Permit and a Final Draft Production Authorization for Production Area 1. The Company’s operations are managed by professionals with a recognized profile for excellence in their industry, a profile based on many decades of hands-on experience in the key facets of uranium exploration, development and mining. The company is well financed to execute on its key programs.

Contact North America: Investor Relations, Uranium Energy Corp.:
Toll Free: (866) 748-1030
Fax: (512) 535-0832
E-mail: [email protected]

Stock Exchange Information:
Frankfurt Stock Exchange Symbol: U6Z
ISN: US916896103

Safe Harbor Statement

This news release contains forward-looking statements within the meaning of Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities and Exchange Act of 1934, as amended.  Statements in this news release, which are not purely historical, are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future.  These statements involve risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements contained herein.  Such risks and uncertainties may include, but are not limited to, the impact of competitive products, the ability to meet customer demand, the ability to manage growth, acquisitions of technology, equipment or human resources, the effect of economic and business conditions, the ability to attract and retain skilled personnel and factors outside the control of the Company.  These forward-looking statements are made as of the date of this news release, and the Company assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements.  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 United States Securities and Exchange Commission.  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.