International Uranium Corporation

International Uranium Corporation

May 12, 2005 09:01 ET

IUC And JV Partner Santoy Resources Expand Hatchet Lake Claims

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 12, 2005) - International Uranium Corporation ("IUC" or "the Company")(TSX:IUC) is pleased to announce that IUC and Santoy Resources Ltd. ("Santoy") have jointly agreed to acquire, by contract staking, 13 mineral exploration claims totaling 63,489 hectares (156,881 acres) on the northeast margin of the Athabasca Basin. The majority of the ground is contiguous with and will be integrated into the 50:50 Santoy - IUC Hatchet Lake Joint Venture Project. This brings the total of the Hatchet Lake Joint Venture project to 33 mineral exploration claims totalling 123,378 hectares or over 300,000 acres. Santoy will be the initial operator of the Hatchet Lake Joint Venture.

The claims were staked on the basis of a northeastward continuation of regional structural trends and faults that host the Millennium, the McArthur River, the Cigar Lake and the Midwest Lake uranium ore bodies. The properties cover a series of magnetic lows and electromagnetic conductors that were partially drill investigated as part of the Dawn Lake Project by the Cameco - Cogema Joint Venture.

IUC's President, Ron Hochstein, P.Eng., a Qualified Person pursuant to NI 43-101, has reviewed the contents and technical information contained in this news release.

IUC is engaged in uranium exploration and production. It holds significant uranium deposits in Mongolia and uranium and vanadium deposits in the U.S. and a fully permitted 2,000 ton per day uranium/vanadium mill near Blanding, Utah (one of only two operating uranium mills in the U.S.), as well as uranium exploration properties in the Athabasca Region in Canada. The Company also processes and recycles uranium-bearing waste materials as an environmentally superior alternative to direct disposal. In addition, the Company owns approximately 56% of the outstanding shares of Fortress Minerals Corp., a public company engaged in precious and base metal exploration in Mongolia.

Statements contained in this news release which are not historical facts are forward-looking statements that involve risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause such differences, without limiting the generality of the following, include: risks inherent in exploration activities; volatility and sensitivity to market prices for uranium and vanadium; the impact of the sales volume of uranium and vanadium; competition; reliance on income from processing uranium-bearing waste materials; the impact of change in foreign currency exchange rates and interest rates; imprecision in resource and reserve estimates; environmental and safety risks including increased regulatory burdens; changes to reclamation requirements; unexpected geological or hydrological conditions; political risks arising from operating in certain developing countries; a possible deterioration in political support for nuclear energy; changes in government regulations and policies, including trade laws and policies; demand for nuclear power; replacement of production and failure to obtain necessary permits and approvals from government authorities; weather and other natural phenomena; ability to maintain and further improve positive labour relations; operating performance of the facilities; success of planned development projects; and other development and operating risks. Although IUC believes that the assumptions inherent in the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this release. IUC disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. United States investors are advised that while the term "inferred" resources is recognized and required by Canadian regulations, SEC does not recognize that term. Investors are cautioned not to assume that all or any part of mineral deposits in this category will ever be converted into reserves.


Ron F. Hochstein


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