High Plains Uranium, Inc.

High Plains Uranium, Inc.

June 01, 2006 14:50 ET

High Plains Announces Letter of Intent for Joint Venture with Energy Fuels Resources

CHEYENNE, WYOMING--(CCNMatthews - June 1, 2006) -


High Plains Uranium, Inc. ("High Plains") (TSX:HPU) is pleased to announce that it has executed a letter of intent to form a mining joint venture with Energy Fuels Resources Corporation, the wholly owned U.S. subsidiary of Volcanic Metals Exploration Inc. The joint venture covers 191 unpatented federal lode mining claims held by High Plains in northern Arizona. The primary goal of the joint venture will be to move toward production from the Claims at the earliest opportunity.

Under the terms of the letter of intent, HPU will contribute its 191 claims to the joint venture and Energy Fuels will contribute data it holds on the claims and will act as the operator of the joint venture. Over a period of up to six years, Energy Fuels will be required to spend a designated amount to earn an 80% interest in the joint venture. Following the completion of the earn-in by Energy Fuels, High Plains will own the remaining 20% interest in the joint venture.

Amounts committed to be spent on the joint venture by Energy Fuels will first go towards the exploration of the properties, and following delineation of one or more ore deposits, the development of the production facility on the properties

"We are pleased to enter into a joint venture with a management team experienced in producing uranium from high grade breccia pipes in northern Arizona," said Tom Parker, President and CEO of High Plains. "This joint venture allows High Plains to continue its focus on our core business of developing and producing In-Situ-Leach uranium properties in Wyoming and Texas, while providing an alternate source for uranium production."

The letter of intent is subject to the completion of a definitive agreement, regulatory approvals and the approval of the boards of directors of both companies.

High Plains Uranium is a Wyoming based uranium exploration and development company focused on the development of uranium deposits in Wyoming and Texas, which are amenable to In Situ Leach mining methods.

Volcanic Metals Exploration Inc. is a Toronto-based mineral exploration company in uranium & vanadium projects located in the State of Colorado through its wholly-owned subsidiary Energy Fuels Resources Corporation, and with gold, base metals and platinum group projects in Newfoundland and Quebec.

This news release contains forward-looking statements; these statements relate to future events or future performance and reflect management's current expectations and assumptions. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management of High Plains. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements. These forward-looking statements are made as of the date hereof and High Plains does not assume any obligation to update or revise them to reflect new events or circumstances.

The TSX has not reviewed and does not accept responsibility for this news release.

Contact Information

  • High Plains Uranium, Inc.
    Tom Parker
    President and CEO
    (307) 433-8708