Strathmore Minerals Corp.

Strathmore Minerals Corp.

January 30, 2007 15:58 ET

Strathmore Completes LOI With $8 Million Commitment From Yellowcake Mining

KELOWNA, BRITISH COLUMBIA--(CCNMatthews - Jan. 30, 2007) - Strathmore Minerals Corp. ("Strathmore") (TSX VENTURE:STM) is pleased to announce it has entered into a binding letter of intent to form a joint venture with Yellowcake Mining Inc. ("Yellowcake") to develop The Baggs, Juniper Ridge Project (Red Creek Claims and Associated State of Wyoming Lease) properties in the State of Wyoming, United States. The Juniper Ridge project is located in the Poison Basin uranium district in south central Wyoming, close to the Colorado border. The total acreage of the property is approximately 3,200 acres.

Mr. Dev Randhawa, Chairman and CEO of Strathmore commented, "We are very pleased to enter this JV as it marks the beginning of an aggressive strategy by our company to monetize our non-core assets. We can advance a number of uranium assets outside our targeted production areas." Mr. David Miller added, "The Baggs/Juniper Ridge properties offer an excellent opportunity for our new partner to develop as there is potential for a significant uranium resource and secure production much faster than starting a grass roots exploration project."

The property was originally discovered by Urangesellschaft U.S.A., Inc. in the 1970's and was known as the Juniper Ridge Uranium Deposit. The discovery of the Orebody was announced in September, 1979 (p. 60, Third Annual Uranium Seminar, Wyoming Mining and Metals Section of AIME - American Institute of Mining Engineers.). Over 2,000 holes were drilled in the 1970's by Urangesellschaft, USA and AGIP in the 1980's.

The terms of the transaction are summarized:

A) Strathmore will option an 80% interest in the Baggs Properties to Yellowcake and provide Yellowcake with all data in possession with respect to the Baggs Properties for the following consideration:

1. 9,000,000 shares of Yellowcake to be issued on closing;

2. $US 100,000 to be paid upon closing, $US 100,000 additional payment on each anniversary date for 4 years for a total of $US 500,000; and

3. An obligation to spend $US 1.6 million per year for a period of 5 years for a total of $US 8 million. Upon spending half of these funds, $US 4,000,000, Yellowcake will earn 50% of the optioned interest, and upon the additional $US 4,000,000 expended, Yellowcake will earn the additional 50% of the optioned interest to own 80% of the project; and

4. An NSR Yellowcake Royalty payment of 3% on the optioned portion on all future production.

B) In addition, in consideration for an initial payment of $US 25,000 upon closing, and a commitment for Yellowcake to spend $US 440,000 for a minimum period of one year, Yellowcake will finance the evaluation of the Strathmore Texas Database (also known as the Conoco Files) regarding uranium prospects in Texas. The expenditures will be required to fund additional office space and staff for analysis of the database, which includes travel and professional consultants (contract landman, etc.). If a suitable target is identified, Yellowcake will be required to spend the necessary funds to acquire land leases. Subsequently, Strathmore and Yellowcake will be 50/50 partners in the development of the identified targets resulting from the database.

Strathmore will be in charge of all operations on the Baggs Property during the Earn-in Period. Strathmore will manage the Conoco Texas Data Evaluation. Yellowcake will be the operator after it has earned its 80% interest in the Baggs Properties. David Miller (President and COO of Strathmore) will join the board of directors of Yellowcake upon closing.

The parties will use their best efforts to obtain all regulatory and other approvals and close within 90 days or as soon as mutually agreed upon.

Yellowcake (OTCBB:YCKM) is a Nevada based company with a mandate to develop uranium projects and in particular, the Baggs/Juniper Ridge properties. Yellowcake will arrange for a financing of 4 million units at no less than $1 each, each unit consisting of 1 share and 1/2 warrant at $1.50 for two years.

STRATHMORE MINERALS CORP. is a Canadian based resource company specializing in the strategic acquisition, exploration and development of uranium properties. Headquartered in Kelowna, British Columbia, the Company also has U.S. based Development Offices in Riverton, Wyoming and Santa Fe, New Mexico. STRATHMORE MINERALS CORP. Common Shares are listed on the TSX Venture Exchange under the symbol "STM".

This news release may contain forward-looking statements. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.


David Miller, President and COO

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

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