Cue Resources Ltd.
TSX VENTURE : CUE

Cue Resources Ltd.

January 15, 2008 12:14 ET

Cue Resources Ltd. Reports Continued Positive Results From Drilling at the Yuty Uranium Project, Paraguay; Resource Estimate and Metallurgical Testing Underway

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 15, 2008) - Cue Resources Ltd. ("Cue") (TSX VENTURE:CUE) is pleased to announce that the Phase 2 exploration drilling on the San Antonio zone of the Yuty uranium project has been completed and has continued to intersect significant thicknesses and uranium grades. A total of 63 holes have been previously reported (November 7, 2007). The 43 holes drilled since then into the same zone continue to show substantial thicknesses of significant uranium mineralization, contained in sandstones. This brings the total meterage drilled this year to 10705 meters in 106 holes. Drilling on Phase 3, to extend the defined zone, will start in January 2008 with three drill rigs.

An NI 43-101 compliant resource estimate is underway by Scott Wilson RPA in Toronto. To allow inclusion of all of the drilling up to December 15, the anticipated completion is January 31, 2008.

Metallurgical test work is also underway. Agitation leach tests are currently being conducted at Hazen Research, Inc. in Denver, CO. This will be followed by a column leach test. Results of this testing program are expected to be completed by February 2008.

The results of 287 core samples, being analyzed for disequilibrium, are expected by the end of January, 2008.

To summarize the 2007 drill results, of the 106 holes drilled;

13 holes (12.3%) have grade x thickness in excess of 0.5 m% eU3O8;

64 holes (60.4%) have grade x thickness between 0.1 and 0.5 m% eU3O8;

7 holes (6.6%) have grade x thickness between 0.06 and 0.1 m% eU3O8;

10 holes (9.4%) have grade x thickness between 0.02 and 0.06 m% eU3O8;

12 holes (11.6%) are anomalous or barren.

Taking a minimum grade x thickness of 0.2 m% eU3O8, the average thickness of the 51 holes included is 9.5 meters and the average grade is 0.05% eU3O8. These values are very comparable to those values found in operating ISR mines in Kazakhstan (see references in Cue release dated Nov 7, 2007).

Highlights of the most recent drilling include:



TD Ave Grade Thickness Grade x thickness
Hole meters %eU3O8 meters feet m% ft%
------ --------- ------ ---- ----- -----
SA1084 132.0 0.037 10.3 33.8 0.38 1.25

SA1091 137.4 0.049 8.4 27.6 0.41 1.35

SA1092 138.5 0.032 15.1 49.5 0.48 1.58

SA1095 147.0 0.036 10.2 33.5 0.37 1.20

SA1120 137.8 0.029 10.9 35.8 0.32 1.04

SA1124 151.0 0.045 9.3 30.5 0.42 1.37

SA1127 144.3 0.056 14.7 48.2 0.82 2.70


A complete listing of all intersections from the 2007 drill program may be found on Cue's website, www.cueresources.ca.

The grades are reported as equivalent uranium (eU3O8) as determined by downhole radiometric logging equipment. The logging was performed using equipment purchased from Mount Sopris Instruments, of Golden, Colorado. Quality control and quality assurance is being provided by Dr Bernie Schmeling, a contract geophysicist.

Chris M. Healey. P.Geo, COO Cue, is the qualified person responsible for the technical content of this release.

Cue has the right to earn a 100% interest in the project; it currently owns a 30% interest in Transandes Paraguay, S.A. and is in the process of completing an earn-in for the remaining 70%. Transandes has an exploration permit granting the exclusive rights to explore for uranium on the Yuty project in south-east Paraguay.

Cue has recently (September 6, 2007) announced a financing and strategic alliance agreement with Cameco Global Exploration Ltd. ("Cameco"). That Letter Agreement established a strategic alliance between the two companies, including three tranches of financing, as well as a provision to create joint ventures within the Yuty project area. Cameco is a wholly owned subsidiary of Cameco Corporation a reporting company having its shares posted and called for trading on the Toronto and New York Stock Exchanges. Cameco Corporation is the world's largest uranium producer.

The first two tranches were closed in 2007, for USD$4.5 Million and CDN $2.5 Million respectively. The third tranche, CDN$12.5 Million, will close in early 2008, subject to Cue meeting certain milestones.

CUE RESOUCES LTD.

Chris Healey, Chief Operating Officer

WARNING: The Company relies on litigation protection for "forward looking" statements. Actual results could differ materially from those described in the news release as a result of numerous factors, some of which are outside the control of the Company. This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this News Release.

Contact Information

  • Cue Resouces Ltd.
    Chris Healey
    Chief Operating Officer
    (604) 921-1810
    (604) 921-1898 (FAX)
    Website: www.cueresources.ca