Magnum Uranium Corp.
TSX VENTURE : MM

Magnum Uranium Corp.

July 31, 2008 11:33 ET

Magnum Uranium Announces San Rafael Project Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 31, 2008) - Magnum Uranium Corporation ("Magnum" or the "Company") (TSX VENTURE:MM) is pleased to announce that a hydrogeologic and mineralogical program for the Down Yonder uranium deposit was initiated on July 25, 2008. The program is designed to be the first step in determining whether uranium in-situ recovery (ISR) extraction processes are technically feasible.

The Down Yonder uranium deposit exists as part of the Company's larger San Rafael Uranium Project located in Emery County, Utah. The Down Yonder was originally discovered by Continental Oil (Conoco) geologists in the late 1960's and early 1970's as result of exploration drilling conducted east of the core of the Tidwell Uranium District and north-northeast of the Acerson Mineral Belt. The Tidwell and San Rafael Uranium Districts have been the site of considerable historic exploration and drilling and production, with over 4 million pounds of uranium and 5.4 million pounds of vanadium produced. A recent Magnum press release (March 25, 2008) announced the completion of a National Instrument Policy 43-101 Mineral Resource Report that estimates an Indicated mineral resource of 729,100 pounds of U3O8 contained in 199,100 tons at an average grade of 0.183% eU3O8 and an additional Inferred mineral resource of 1,071,100 pounds of U3O8 contained in 292,900 tons at an average grade of 0.185% eU3O8. Although historical mining in the district has been conducted using conventional techniques, the possibility that in-situ recovery (ISR) techniques for extraction of sandstone hosted uranium at the Down Yonder may be possible. The following Phase I pre-feasibility study is being conducted to determine if ISR is technically feasible.

Project activities include a drilling program and aquifer testing program. The drilling program will include geological and geophysical logging of drill holes and collecting representative cores for geotechnical and geochemical testing. Specifically, the drill core samples will be subjected to 'bottle roll' preparation and extraction procedures. Initially, hydrogen peroxide will be utilized during the bottle roll procedure as a lixiviant. Analytes to be evaluated include iron, vanadium, arsenic, selenium, molybdenum and sulfur. Additionally, representative core samples will be analyzed for vertical and horizontal permeability, gradation, and density.

The aquifer testing program will consist of installing and developing a groundwater production well and four observation wells in selected drill holes, collecting and analyzing groundwater samples, and performing an aquifer pumping test. The wells will be permitted, designed, completed, developed, and tested in accordance with the State of Utah Department of Minerals and Geology regulations and guidelines.

The wells will be designed to evaluate the hydraulic characteristics of the uranium mineral bearing aquifer within the limited study area. The wells will be drilled to an average depth of 975 feet where groundwater production is anticipated to produce water at a rate exceeding 50 gallons per minute. Water samples will be analyzed to define background water quality characteristics.

Data will be analyzed to determine potential uranium extraction efficiencies as well as determining if potential environmental concerns may arise from mobilizing metals in the event ISR technology is deemed to be economically and technology feasible.

Magnum has entered into a contractual arrangement with R Squared Incorporated (R2), a respected Denver-based environmental engineering firm, to perform the ISR feasibility evaluations. R2 will work in conjunction with and under the supervision of Magnum's qualified management team.

Drilling is anticipated to commence in August and aquifer and laboratory testing will occur in late September and early October. Preliminary results from the program are anticipated to be available by the end of October.

"If ISR is technically feasible at San Rafael, it would greatly impact the economics of the deposit in a positive sense and expedite the production time horizon of this project," said Magnum President & CEO Craig Lindsay. "Next year, Magnum will be looking at this same process for our uranium deposits located near the Smith Ranch in the Powder River Basin sands of Wyoming."

Dr. John R. Carden, Ph.D., P. Geo., a Qualified Person as defined by National Instrument Policy 43-101, is responsible for the technical information contained in this news release.

The Company

Magnum is a Vancouver-based minerals exploration company focused on the acquisition and development of uranium assets in North America. Currently, Magnum's primary property holdings are located in the Western United States, specifically Wyoming, Utah, Idaho, and New Mexico, and in Canada's Athabasca Basin.

ON BEHALF OF THE BOARD

Craig T. Lindsay, President & CEO

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of 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 neither approved or disapproved of the contents herein.

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