Bluerock Resources Ltd.

Bluerock Resources Ltd.

January 16, 2008 18:01 ET

Bluerock Resources Ltd. and Denison Mines (USA) Corp. Sign Letter of Intent on White Mesa Milling Agreement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 16, 2008) - Bluerock Resources Ltd. (TSX VENTURE:BRD) (the "Company") is pleased to announce that the Company and Denison Mines (USA) Corp. (Denison) have executed a Letter of Intent (LOI) with respect to an ore purchase and uranium toll milling agreement. The LOI envisions a three year toll milling agreement with two additional years extension by mutual consent and will allow for the production and processing of 60,000 tons of uranium ore in 2008 and 100,000 tons of uranium ore in each successive year.

This agreement sets a clear path for Bluerock to be the next uranium producer in America and generate cash flow based on that production.

President Michael Collins comments, "Bluerock is pleased to be the first uranium company to negotiate a framework for an ore purchase and toll milling agreement at the White Mesa Mill with Denison. This agreement is a pivotal step to reaching Bluerock's objective of becoming the next uranium producer in the United States. Bluerock employees are working diligently to move the Company's initial four uranium projects forward to fill the production levels that this agreement affords us."

Under the terms of the LOI, Bluerock agrees to deliver 25,000 tons of ore per year into Denison's Ore Purchase Program. Subsequent ore deliveries will be stockpiled at the White Mesa Mill and processed under a toll milling agreement, under which Bluerock will pay to Denison the direct costs to mill Bluerock's uranium ore plus a toll milling fee per ton of ore, which will be partly linked to the long-term uranium price. The ore purchase program affords Bluerock the opportunity to deliver uranium ore for immediate purchase and cash flow. The ore processed under the Toll Milling agreement captures the full market value of yellow cake and vanadium production. Toll Milling also allows Bluerock to manage the marketing of its uranium production. The LOI is contingent upon the execution and delivery of a toll milling agreement.

The Bluerock team is currently advancing four uranium mining projects in the Colorado Plateau to reach the LOI production targets including: 1) the fully permitted J-Bird Mine, which is under active development; 2) the Tramp Mine, which is permitted at the Colorado State level and a Plan of Operations is underway to bring it into compliance with the Federal Bureau of Land Management; 3) drilling and bulk sampling permits are under application on the Sunbeam Mine to move it towards a production decision; and 4) plans to advance the Cone Mountain Project have commenced.

Denison is a $1.6 billion diversified uranium mining company with production assets in Canada and the United States, including on the Colorado Plateau, where several of Bluerock's projects are located.

Haywood Securities Inc. assisted Bluerock with the transaction.

To date no feasibility study has been completed at the J-Bird Uranium Mine or any of Bluerock's uranium projects, and there is no certainty the proposed operations will be economically viable. Bluerock management believes however that the Company's uranium projects are capable of fulfilling Denison's White Mesa Mill's feed capacity in a timely manner. The term "ore" as utilized in this news release is in no way meant to imply a positive economic analysis has been completed on the Company's uranium projects.

Bluerock Resources Ltd. is a mining company focused on the acquisition, exploration and mining of conventional uranium resources in the United States.


Michael Collins, President and CEO


Certain of the statements made and information contained herein is "forward-looking information" within the meaning of the Ontario Securities Act and the Alberta Securities Act, including statements concerning our plans at our mineral projects, which 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 information. Forward-looking information is subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking information, including, without limitation, failure to establish mineral resources; delays in obtaining or failure to obtain required governmental, environmental or other project approvals; changes in national and local government legislation or regulations regarding environmental factors, royalties, taxation or foreign investment; political or economic instability; terrorism; inflation; changes in currency exchange rates; fluctuations in commodity prices; delays in the development of projects; shortage of personnel with the requisite knowledge and skills to design and execute exploration programs; difficulties in arranging contracts for drilling and other exploration and development services; dependency on equity market financings to fund programs and maintain and develop mineral properties; risks associated with title to resource properties, particularly in Mongolia, and difficulties of determining the validity of certain tenures and other risks and uncertainties, including those described in each management discussion and analysis. In addition, forward-looking information is based on various assumptions including, without limitation, the expectations and beliefs of management; the assumed long-term price of U308; the availability of permits and surface rights; access to financing, equipment and labour and that the political environment within Canada, the United States of America and Mongolia will continue to support the development of environmentally safe uranium mining projects. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information, whether as a result of new information, future events or otherwise.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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