U3O8 Corp.
TSX VENTURE : UWE

U3O8 Corp.

August 12, 2008 09:00 ET

U3O8 Corp. Cuts 17 Metres at 0.116% (2.3 Pounds Per Short Ton) U3O8 at Aricheng South

Assay results from final 20 holes of a 56-hole drill program mark final step towards a resource estimate in Q4 2008

TORONTO, ONTARIO--(Marketwire - Aug. 12, 2008) - U3O8 Corp. (TSX VENTURE:UWE), a Canadian uranium exploration company, reports significant intercepts of uranium mineralization from the final 20 holes in the Aricheng South fault-breccia zone in the Kurupung Batholith, located in the basement near the Roraima Basin in Guyana (Figure 1). These assay results are part of a 56-hole, 10,731 metre Phase III infill drill program designed to provide detail on the distribution of uranium grade at Aricheng South. U3O8 Corp. has now completed the planned drill program for the Aricheng South structure, which totalled 13,558 metres in 77 bore holes.

"With the completion of the planned drill program at Aricheng South, U3O8 Corp. now advances to a resource estimate on this first of multiple basement-hosted uranium-bearing structures identified in the Kurupung Batholith," said Dr. Richard Spencer, U3O8 Corp's President and CEO. "All assay and geological data for Aricheng South will be delivered to an independent consulting company for resource estimation, targeted for completion in the fourth quarter of 2008."

Dr. Spencer continued, "In addition, U3O8 Corp. recently completed the Phase III infill drill program at Aricheng North. Final data from this second mineralized structure will be reported shortly and then submitted for independent resource estimation, which is also expected to be done by the end of 2008. Exploration drilling will now focus on the next group of structures, including Accori and Aricheng West, with the goal of preparing them for resource estimation in early 2009 - on track with our exploration objective of aggregating mineralization from a number of veins to reach a resource of meaningful size."



Assay highlights from the 20 bore holes at Aricheng South reported
here include:

----------------------------------------------------------------------
Intersection Grade
-----------------------------------------------------------
Core Estimated (i)lbs/
Bore hole length true width short ton
number From (m) To (m) (m) (m) % U3O8 U3O8
----------------------------------------------------------------------
ARS-065 98.5 115.0 16.5 15.0 0.096 1.9
----------------------------------------------------------------------
ARS-066 138.5 152.0 13.5 11.4 0.094 1.9
----------------------------------------------------------------------
Including 143.0 146.0 3.0 2.5 0.238 4.8
----------------------------------------------------------------------
ARS-072 118.0 138.0 20.0 17.0 0.116 2.3
----------------------------------------------------------------------
Including 130.0 138.0 8.0 6.8 0.198 4.0
----------------------------------------------------------------------
ARS-073 132.0 160.5 28.5 24.2 0.092 1.8
----------------------------------------------------------------------
Including 151.0 157.0 6.0 5.1 0.139 2.8
----------------------------------------------------------------------
ARS-075 163.5 190.5 27.0 23.1 0.083 1.7
----------------------------------------------------------------------
ARS-076 164.5 166.0 1.3 1.3 0.211 4.2
-----------------------------------------------------------
173.5 176.5 2.6 2.5 0.270 5.4
----------------------------------------------------------------------
(i) Note: 1 short ton equals 2,000 lbs or 0.907 metric tons


Aricheng South

Mineralization at Aricheng South occurs in two sub-parallel, east-west trending fault-breccia zones in granodiorite in the Kurupung Batholith. Phase I, II and III drilling has delineated uranium mineralization over a strike length of 270 metres and to a depth of approximately 180 metres below surface. The principal structure dips approximately 600 to the north, and the mineralized zone varies in width from 4 metres to 34 metres.

A long section of uranium grade and thickness in the principal structure shows that uranium content (width of mineralized zone multiplied by its grade) increases gradually and predictably towards a central mineralized shoot (Figure 2). The principal shoot is still open at depth and increasing grade-thickness in the western part of the long section may constitute the edge of a second shoot. Therefore, an additional 2,000 metre, 12-hole drill program is underway focusing on two areas:

- Delineating the eastern margin of the principal mineralized shoot; and

- Determining whether the western extremity is the edge of a second mineralized shoot.

The Aricheng South assay results reported here are from the final 20 holes of a 56-hole, 10,731 metre, Phase III drilling program (Table 1). Results from the first 36 holes of Phase III drilling were released on April 10, 2008, May 7, 2008 and June 25, 2008. Phase I (5 holes for 761 metres) and Phase II (16 holes for 2,067 metres) results were reported on August 1, 2007 and February 26, 2008 respectively. All reported assay results are available at www.sedar.com and www.u3o8corp.com.

Drill hole locations relative to the ground scintillometer survey and previous drilling (results released on August 1, 2007, February 26, 2008, April 10, 2008, May 7, 2008 and June 25, 2008) are shown in Figure 3.

Aricheng North

A 53-hole, 8,831 metre Phase III program on Aricheng North was recently completed ahead of schedule and all assay results are expected by the end of August, 2008. The objective of the Phase III drill program was to define the extent and grade of mineralization over a 750 metre sector of the Aricheng North structure. Provided that the results delineate consistent mineralization over areas of significant size, a resource estimate will be undertaken for completion in the fourth quarter of 2008. Aricheng North would represent the second of the basement-hosted uranium-bearing breccias to be advanced to resource estimation in line with the objective of defining an aggregate resource of significant size in the Kurupung Batholith adjacent to the Roraima Basin.

Quality Assurance & Quality Control

Diamond drilling at Aricheng South produced NQ (47.6 millimetre diameter) core. The core was halved with a diamond saw on site and half core samples were delivered to ACME Laboratory's preparation facility in Georgetown, Guyana. Sample blanks and certified standards were inserted at an average frequency of 1 per 25 samples. Sample pulps were then shipped by ACME to their analytical facility in Vancouver, BC, Canada, for analysis for uranium by ICP-MS after hot, four-acid digestion.

Mr. Richard Cleath (M.Sc.), Vice President of U3O8 Corp., a Qualified Person within the definition of that term in National Instrument 43-101 of the Canadian Securities Administrators, had overall responsibility for all aspects of target selection and drilling of the Aricheng South target. Mr. Cleath has supervised the preparation of, and verified, the technical information in this release.

Potential quantity and grade are conceptual in nature. There has been insufficient exploration to define a mineral resource on U3O8 Corp's properties and it is uncertain if further exploration will result in the target being delineated as a mineral resource.



Table 1 - Assay Results for Aricheng South

Summary of significantly mineralized intercepts cut in the final 20 bore
holes (3,918 metres) from Phase III drilling undertaken in May and June,
2008, on the Aricheng South target.

------------------------------------------------------------------------
Bore hole data Interval Grade
------------------------------------------------------------------------
Estimated
True
Total From Interval Thickness U3O8
Hole Depth (m) (m) To (m) (m) (m) U3O8% lb/st
------------------------------------------------------------------------
------------------------------------------------------------------------
ARS-033 199.70 99.0 103.5 4.5 4.1 0.051 1.0
------------------------------------------------------------------------
ARS-034 172.05 110.0 119.0 9.0 8.6 0.050 1.0
------------------------------------------------------------------------
55.5 62.0 6.5 6.3 0.050 1.0
----------------------------------------------------
ARS-056 169.4 80.5 98.0 17.5 17.1 0.056 1.1
----------------------------------------------------
127.5 133.0 5.5 5.2 0.070 1.4
------------------------------------------------------------------------
ARS-061 166 84.0 86.0 2.0 2.0 0.056 1.1
------------------------------------------------------------------------
ARS-062 130.2 46.0 51.0 5.0 4.9 0.158 3.2
------------------------------------------------------------------------
ARS-063 154.6 111.0 121.5 10.5 9.5 0.095 1.9
----------------------------------------------------------------
Including 115.5 121.0 5.5 5.0 0.132 2.6
------------------------------------------------------------------------
9.5 26.5 17.0 15.0 0.061 1.2
ARS-064 169.8 ----------------------------------------------------
38.0 46.5 8.5 7.5 0.050 1.0
------------------------------------------------------------------------
98.5 115.0 16.5 15.0 0.096 1.9
----------------------------------------------------
ARS-065 238.9 128.0 138.0 10.0 9.1 0.061 1.2
----------------------------------------------------
141.5 146.0 4.5 4.1 0.069 1.4
------------------------------------------------------------------------
131.0 135.5 4.5 3.8 0.068 1.4
247.6 ----------------------------------------------------
ARS-066 138.5 152.0 13.5 11.4 0.094 1.9
----------------------------------------------------------------
Including 143.0 146.0 3.0 2.5 0.238 4.8
------------------------------------------------------------------------
153.5 157.0 3.5 3.2 0.078 1.6
----------------------------------------------------
ARS-067 217.7 161.0 165.5 4.5 4.1 0.075 1.5
----------------------------------------------------
167.0 172.0 5.0 4.6 0.071 1.4
------------------------------------------------------------------------
160.5 34.5 44.5 10.0 9.7 0.088 1.8
----------------------------------------------------------------
ARS-068 Including 37.0 41.5 4.5 4.4 0.106 2.1
----------------------------------------------------------------
60.5 65.0 4.5 4.4 0.061 1.2
----------------------------------------------------
69.0 72.5 3.5 3.4 0.060 1.2
------------------------------------------------------------------------
ARS-069 214.9 171.5 179.0 7.5 6.4 0.113 2.3
------------------------------------------------------------------------
110.0 113.0 3.0 2.9 0.052 1.0
ARS-070 187.5 ----------------------------------------------------
132.0 137.0 5.0 4.7 0.085 1.7
------------------------------------------------------------------------
ARS-071 220.6 115.5 127.5 12.0 11.7 0.058 1.2
------------------------------------------------------------------------
172.5 118.0 138.0 20.0 17.0 0.116 2.3
ARS-072 ----------------------------------------------------------------
Including 130.0 138.0 8.0 6.8 0.198 4.0
------------------------------------------------------------------------
ARS-073 214.0 132.0 160.5 28.5 24.2 0.092 1.8
------------------------------------------------------------------------
Including 151.0 157.0 6.0 5.1 0.139 2.8
------------------------------------------------------------------------
84.5 88.5 4.0 3.7 0.079 1.6
----------------------------------------------------
ARS-074 226.9 117.0 126.5 9.5 8.9 0.085 1.7
----------------------------------------------------
137.5 144.0 6.5 6.1 0.056 1.1
------------------------------------------------------------------------
ARS-075 256.0 163.5 190.5 27.0 23.1 0.083 1.7
------------------------------------------------------------------------
145.0 154.0 7.7 7.6 0.053 1.1
----------------------------------------------------
ARS-076 251.2 164.5 166.0 1.3 1.3 0.211 4.2
----------------------------------------------------
173.5 176.5 2.6 2.5 0.270 5.4
----------------------------------------------------
207.0 213.5 5.1 5.9 0.067 1.3
------------------------------------------------------------------------
ARS-077 148 50.5 54.0 3.5 3.4 0.081 1.6
------------------------------------------------------------------------
Note: lb/st is an abbreviation for pounds per short ton. 1 short ton equals
2,000 lbs or 0.907 metric tons.


To view Figure 1 - Map of Magnetic Data and Interpreted Structures in Kurupung Batholith, please visit:

http://media3.marketwire.com/docs/uwe1.pdf

To view Figure 2 - Long Section of Aricheng South Structure, please visit:

http://media3.marketwire.com/docs/uwe2.pdf

To view Figure 3 - Drill Hole Locations at Aricheng South, please visit:

http://media3.marketwire.com/docs/uwe3.pdf

About U3O8 Corp.

U3O8 Corp. is a Canadian mineral exploration company based in Toronto, Canada. Currently focused on uranium exploration in the Roraima Basin in Guyana, South America, U3O8 Corp's primary business objective is to explore, develop and acquire uranium projects in the Americas. The company is well funded with over $16 million held solely in cash and Canadian chartered bank-backed Guaranteed Investment Certificates. At current rates of exploration expenditure, the company expects to be funded up until 2010.

U308 Corp. has exclusive uranium exploration rights in an area covering approximately 1.3 million hectares that straddles the edge of the Roraima Basin in Guyana. The company is advancing a two-pronged exploration strategy that focuses on:

- Exploration for multiple uranium-bearing structures within structural systems in the basement adjacent to the Roraima Basin with the concept that the individual veins could potentially aggregate to a significant total resource; and

- Exploration for unconformity-style uranium deposits at the base of the Roraima Basin, which are similar to those of the prolific Athabasca Basin in Saskatchewan.

For further information on the company's properties, please refer to the technical report prepared for the company by Dahrouge Geological Consulting Ltd. and dated September 15, 2006 as amended and restated December 12, 2006, available on SEDAR at www.sedar.com and on the company's website www.u3o8corp.com.

Forward-Looking Statements

Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of U3O8 Corp., including, but not limited to, the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with the uncertainty of exploration results and estimates, currency fluctuations, dependence upon regulatory approvals, the uncertainty of obtaining additional financing and exploration risk. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.

Basic shares outstanding: 23,057,700

Fully diluted shares outstanding: 25,476,000

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

Contact Information