SOURCE: Uranium City Resources

May 30, 2007 09:00 ET

UCR Commences Drilling on Quartzite Ridge Property

KIRKLAND LAKE, ON--(Marketwire - May 30, 2007) - Uranium City Resources Inc. - (TSX-V: UCR) (BERLIN: A0F7F5): UCR (or the Company) is pleased to report the remainder of the drill hole results for its Phase 2 drilling program on the East Target on which more than 41 holes were drilled. The most salient results of these final holes FT07-39, FT07-40 and FT07-41 performed on the ice of Verna Lake in an effort to intersect the U mineralization in bedrock at the East Target, are presented below.

Hole FT07-39, while being drilled from its location on the ice on Verna Lake, intersected a near surface, low grade mineralized zone that returned 0.012% U3O8 over 6 meters (20 feet). This drill hole was oriented at 45 degrees and this intersection is believed to be true width. The observation of low grade U zones at shallow depths between 13.50 and 58.50m, which includes a zone of 6m wide, are indicative of significant U mineralization in this area. In addition, it indicates that shallow mineralization is extensive over a linear distance of more than 450 meters from hole FT07-39 to FT07-35. Hole FT07-35 (see press release of April 25, 2007) also contained shallow and wide zone of U mineralization with 0.204% U3O8 over 10 meters (32.8 feet) with a 5 meter portion (16.4 feet) grading 0.387% U3O8.

Drill hole FT07-40 contains similar low grade shallow mineralization and returned 0.017% U3O8 over 1 meter (3.28 feet).

Drill hole FT07-41 also shows low grade shallow mineralization and returned 0.033% U3O8 over 3 meters (10 feet).

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HOLE     Total Hole   Dip    From    To     Length   Average Grade Within
       Depth (meters)     (meters) (meters)(meters)    Interval (%U3O8)
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FT07-39    226.0     -45°    13.50   14.50   1.00           0.014%
                             29.40   30.00   0.60           0.025%
                             52.50   58.50   6.00           0.012%
                             -----   -----   ----           -----
                             83.60   84.10   0.50           0.019%

FT07-40    154.0     -45°    29.00   30.00   1.00           0.017%

FT07-41    184.0     -45°    16.00   17.00   1.00           0.080%
                     -45°    56.00   59.00   3.00           0.033%
                     -45°    63.00   65.00   2.00           0.021%
                     -45°    165.00  167.00  2.00           0.030%
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The database of these 41 holes has been submitted to Watts Griffis & McOuat for the preparation of a Technical Report (NI43-101) that will include the resource estimate of the U mineralization at the East Target project.

Preparations are now being made for a Phase 3 drilling program at the East Target project and all drilling permits have been applied for. Phase 3 will encompass infill drilling between Verna Lake and the previous holes done as part of Phase 1 and 2. In addition, Phase 3 drilling will provide for infill drilling between previous drill holes and the St Louis Fault as well as drilling across the St Louis Fault.

Commenting on these results and future exploration work, UCR's CEO, Bob Kasner, stated, "....our geologists are very encouraged by the presence of shallow low grade U mineralization from the 9 holes drilled over ice on Verna Lake. The data from these holes when combined with data from Phase 1 and 2 suggests U mineralization may well extend over 1 km in total length..."

While awaiting the resource estimate and Technical Report from Watts Griffis McOuat, UCR has started to evaluate the potential for U mineralization at its Quartzite Ridge property. Quartzite Ridge is located approximately 15 km south of Uranium City on the Crackingstone Peninsula of Beaverlodge Lake. Mineral exploration of the Crackingstone Peninsula commenced during the 1940s.

Former producing Uranium mines are located to the south-west of the property (Gunnar Mine 1955-1963) and to the north-west of the property (Lorado Mine 1957-1959). (1)

Of particular interest on this property is the presence of layers of un-metamorphosed sandstones and conglomerate units of the Martin Group which overlay older basement rocks of the Tazin Group.

Previous geochemical sampling in 2005 and 2006 of the Martin group sediments and along the unconformity between the older basement rocks and the overlying rocks of the Martin Group indicated the potential for uranium mineralization due to:

(a) The presence of a silica-rich zone and intense quartz veining over an
    area 50 x 30 meters within the Martin Group sediments combined with
    anomalous uranium values of up to 210 ppm U in quartz veins.

(b) Strong hematization, pyritization and anomalous radioactivity reaching
    up to 125 ppm U in the conglomerate rocks of Martin Group sediments.

(c) Anomalous radioactivity noted in fractures associated with "block
    faulting" of the Martin Group sediments.
More than five holes have now been drilled through the conglomerate and sandstone sediments of the Martin Group and into the underlying older basement rocks in order to intersect the radioactive fractures and quartz veining systems that cut these rocks. Features observed so far in core samples include:
   (a) quartz veining with drusy quartz

   (b) brecciation, faulting and shear zones

   (c) alteration in wall rocks, hematization and bleaching
All of the above are characteristics of the chemical reaction of a hydrothermal fluid with sedimentary and basement rocks. Such evidence of hydrothermal reactions, veining, fracturing and faulting suggest the possibility of a uranium mineralizing event in the basement rocks and the overlying sediments at the Quartzite Ridge project.

(1) Beck, L. (1969) Uranium deposits of the Athabasca Region (NTS Area 74N, 74O, 74P). Saskatchewan Geological Survey; Saskatchewan Energy and Mines, Report 126.

The technical information in this news release has been reviewed by Jim Kermeen, P.Eng. -- a qualified person as defined by National Instrument 43-101.

Forward-looking statements:

This news release contains certain forward-looking statements. These forward-looking statements are subject to a variety of risks and uncertainties beyond UCR's control or prediction and could cause actual events or results to differ materially from those anticipated in such forward-looking statements. Although UCR believes that the assumptions inherent in the forward-looking statements are reasonable, undue reliance should not be placed on these forward-looking statements.

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