UGL Enterprises Ltd.
TSX VENTURE : UGS

UGL Enterprises Ltd.

May 15, 2006 19:14 ET

UGL Comments on Windfall Profit Tax Law

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 15, 2006) - UGL Enterprises Ltd. (TSX VENTURE:UGS) is advised that on Friday, May 12th, the Government of Mongolia passed the Windfall Profit Tax Law relating to copper and gold revenues. UGL is largely unaffected by this law, as its main assets are the Ulaan Ovoo and Chandgana Tal Coal projects and a portfolio of Uranium projects. Nevertheless UGL's President, Ranjeet Sundher, commented:

"We are very surprised by this new law, and notwithstanding that our coal and uranium projects are not subject to this law, we will be working closely with other foreign companies and our contacts in Mongolia to have it repealed."

An official version of the law has not been disseminated to the public although UGL understands it will be released later this week. The President of Mongolia has the ability to veto the new law. A veto by the President would prevent its implementation.

- ABOUT UGL -

UGL Enterprises Ltd. is a junior resource company trading on the TSX-Venture Exchange under the trading symbol "UGS". In addition to the Ulaan Ovoo Coal Project, UGL is also developing the Chandgana Tal Coal Project in Eastern Mongolia and has 14 uranium properties and several gold and copper exploration projects located throughout Mongolia. UGL has a strategic alliance with Mega Uranium Ltd. to jointly develop its uranium assets, and with Mine Info Ltd., a leading Mongolian exploration service company. UGL has a full time office in Mongolia's capital, Ulaanbaatar.

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

Contact Information

  • UGL Enterprises Ltd.
    Paul McKenzie
    Director
    (604) 642-COAL (2625)
    info@uglenterprises.com
    www.uglenterprises.com
    or
    Fuller Fletcher & Associates Ltd. of London, UK
    Nick Fuller
    European Investor Inquiries
    +44 (0) 20 7256 5204
    or
    Fuller Fletcher & Associates Ltd. of London, UK
    Samantha Fletcher
    European Investor Inquiries
    +44 (0) 20 7256 5204