Powertech Uranium Corp.
FRANKFURT : P8A
TSX : PWE

Powertech Uranium Corp.

December 02, 2009 14:11 ET

Powertech Announces Drawdown of Second Tranche of $13.8 Million Loan Facility

VANCOUVER, BRITISH COLUMBIA--(Marketwire – Dec. 2, 2009) - POWERTECH URANIUM CORP. ("Powertech" or the "Company") (TSX:PWE)(FRANKFURT:P8A) today announces that it has completed the drawdown of the second Cdn.$3.45 million tranche (the "Convertible Tranche") of the Cdn.$13.8 million loan facility (the "Loan Facility") entered into with Societe Belge de Combustibles Nucleaires Synatom SA ("Synatom") on October 14, 2009, as disclosed in the Company's news release of October 15, 2009.

The Company intends to use the proceeds of the Convertible Tranche for working capital and to advance its mineral properties towards production.

Terms of the Convertible Tranche

The Convertible Tranche bears interest at the rate of 7% per annum with interest compounding and accruing from December 1, 2009, being the date of drawdown, and payable at the maturity date of June 1, 2011. On the maturity date, the Company will repay the applicable principal amount of the tranche amount borrowed, together with all accrued and unpaid interest thereon. Repayment of the Convertible Tranche will be secured by existing security granted by the Company and its wholly-owned subsidiaries to Synatom and by further security granted in the Loan Facility.

The principal amount of the Convertible Tranche, but not the interest thereon, is convertible, at Synatom's option, into up to 6,900,000 common shares of the Company at a conversion price of Cdn.$0.50 per share, subject to customary anti-dilution adjustments in the event of a subdivision, consolidation or reclassification of the Company's common shares or the issuance of common shares to shareholders as a stock dividend.

About Powertech Uranium Corp.

Powertech Uranium Corp. is a mineral exploration and development company that, through its Denver-based subsidiary Powertech (USA), Inc., holds the Dewey-Burdock Uranium Deposit in South Dakota, the Centennial Project in Colorado and the Dewey Terrace and Aladdin Projects in Wyoming. The Company's key personnel have over 200 years of experience in the uranium industry throughout the United States, and have permitted more than a dozen in-situ operations for production. For more information, please visit http://www.powertechuranium.com.

POWERTECH URANIUM CORP.

Richard F. Clement Jr., President & CEO

Disclaimer for Forward-Looking Information

Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding the Company's overall business development objectives and plans. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements reflect management's current views and are based on certain expectations, estimates and assumptions which may prove to be incorrect. A number of risks and uncertainties could cause our actual results to differ materially from those expressed or implied by the forward-looking statements, including: (1) the possibility that Synatom will convert the Convertible Tranche into common shares of the Company, (2) whether the Company will be able to repay amounts owing under the Convertible Tranche as they become due, (3) whether the Company will draw down any or all of the remaining two tranches of the Loan Facility, and (4) other factors beyond the Company's control. These forward-looking statements are made as of the date of this news release and the Company assumes no obligation to update these forward-looking statements, or to update the reasons why actual results differed from those projected in the forward-looking statements. Additional information about these and other assumptions, risks and uncertainties are set out in the "Risks and Uncertainties" section in the Company's MD&A filed with Canadian security regulators.

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

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