Uranium Energy Corp
OTC Bulletin Board : URME

Uranium Energy Corp

May 23, 2006 09:00 ET

Uranium Energy Corp. Commences Drilling Operations at Goliad Uranium Project in South Texas

AUSTIN, TEXAS--(CCNMatthews - May 23, 2006) -

Seventy-Hole Program Consists of 32,000 Feet of Drilling to Confirm and Prove ISL-Amenability of the 5.2-Million Pound Historical Uranium Resource

Uranium Energy Corp ("the Company") (OTCBB:URME)(FWB:U6Z)(BERLIN:U6Z) announces that drilling operations began on its Goliad Project in south Texas on May 16, 2006, as part of the Phase I drilling program described in the Company's press release of April 27. The program calls for 32,000 feet of drilling, consisting of 70 test holes, with the key objectives of confirming the existing 5.2 million pounds of historically drill-indicated resources on the property, as well as proving the metallurgical suitability of the ore mineralization for In-Situ Leach mining techniques.

The first phase of drilling is designed to confirm and complement the previously-drilled 250,000 feet of results generated by Moore Energy Corp. during the early 1980s. The confirmation drilling will offset areas of known ore-grade mineralization, and a minimum of two test holes will be cored through ore intervals. Agitation leach tests will be run on select core intervals to evaluate the ore's amenability to in-situ recovery methodology.

It is anticipated that the field program will take seven weeks to complete, and results will be forthcoming within a month of completing the program.

Company geologists, including Clyde Yancey, PGeo, who was the manager of Moore Energy's exploration program at Goliad, estimate that Goliad hosts an additional 10 to 15 million pounds of uranium resources, based on their analysis of historical exploration of the property. Phase II of the drilling program, scheduled to begin in the second half of 2006, will focus on exploring and developing documented mineralized ore zone extensions. This will constitute the beginning of the systematic expansion of the Goliad resource base.

The development is progressing as planned on all fronts, and is on track to accomplish the Company's near-term objective of uranium production in south Texas.

About Uranium Energy Corp

Uranium Energy Corp (URME: OTCBB) is a US-based junior resource company with the near-term objective of uranium production in the United States. The company has a mandate to acquire historical uranium resources that can quickly be developed into producing uranium mines. Its management is comprised of veteran mining and exploration professionals eminent in the field of uranium, whose collective experience in the mining industry, and specifically in the uranium mining sector, gives the Company over 200 years of uranium mine-finding and uranium mine development expertise. Uranium Energy Corp is well positioned to capitalize on the world's current significant alternative energy boom. Visit www.uraniumenergy.com for more information.

Safe Harbor Statement

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This release includes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties including, but not limited to, the impact of competitive products, the ability to meet customer demand, the ability to manage growth, acquisitions of technology, equipment, or human resources, the effect of economic and business conditions, and the ability to attract and retain skilled personnel. The Company is not obligated to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.

Contact Information

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