Universal Uranium Ltd.
TSX VENTURE : UUL

Universal Uranium Ltd.

October 01, 2007 09:01 ET

Universal Uranium Announces Flow-Through Financing With MineralFields

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 1, 2007) - Universal Uranium Ltd.(the "Company") (TSX VENTURE:UUL) is pleased to announce that it will be proceeding with a private placement of 2,352,940 flow-through units ("FT Units") at a price of $0.85 per FT Unit for gross proceeds of $2,000,000. The Company anticipates that funds controlled by the MineralFields Group will subscribe for the entire private placement.

Each FT Unit will consist of one flow-through common share and one-half of a share purchase warrant. Each full warrant will entitle the holder to purchase one additional common share of the Company at a price of $1.25 in the first year and $2.00 in the second year. The warrants will be subject to a 30 day early expiration upon formal notification by the Company of a closing price, for 30 consecutive trading days, of $1.50 or greater in the first year and $2.25 or greater in the second year.

The private placement is subject to TSX Venture Exchange acceptance and required regulatory approvals. All of the securities issued pursuant to this offering will have a hold period expiring four months after the closing date.

The net proceeds of the private placement will be used to finance the Company's exploration programs on its Labrador properties, which will constitute Canadian exploration expenses (as defined in the Income Tax Act) and will be renounced for the 2007 taxation year.

A finder's fee will apply in this transaction in accordance with the policies of the TSX Venture Exchange (the "Exchange").

Universal Uranium Ltd. (TSX VENTURE:UUL) is a publicly held Canadian uranium exploration company focused on acquiring, exploring and developing uranium properties located in favorable geo-political climates. The Company is led by a highly skilled, experienced board and management team with significant successes in managing early stage mineral exploration companies.

ON BEHALF OF THE BOARD:

Ronald Atlas, Chairman of the Board

Standard & Poor's Listed

Issued Share Capital: 38,933,403

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. The Company seeks Safe Harbour.

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