Uranium Power Corp.
TSX VENTURE : UPC

Uranium Power Corp.

January 19, 2007 12:01 ET

Uranium Power Corp Provides Update

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 19, 2007) - Uranium Power Corp. ("Uranium Power" "UPC") (TSX VENTURE:UPC) is pleased to provide this update to shareholders of the company on current activities and plans for 2007. The main activity of immediate interest is the potential sale of the uranium assets of our joint venture partner, U.S. Energy Corp. (NASDAQ Capital "USEG") and Crested Corp. (OTCBB "CBAG") d/b/a/ USECC to sxr Uranium One Inc. ("Uranium One"). Uranium One recently announced that it has extended the deadline for closing the deal for three months, to April 9, 2007. However, according to Mr. Keith Larsen, Chairman of USEG, this deal is expected to close within 45 days of the January 8, 2007 announcement, or no later than late February. Once the situation is cleared up, Uranium Power management will meet with the joint venture partner to approve work plans and budgets for 2007.

In addition to advancing our current properties, UPC will aggressively pursue the acquisition of additional uranium properties. UPC remains well funded and currently has in excess of $5.0 million in the treasury.

The major objective for 2007 will be the advancement of the Sheep Mountain project, which has an NI 43-101 Inferred Resource of 15.6 million pounds U3O8. The mine is fully licenced and permitted, and can be brought back into production at an early date. Clarification of the ownership of our partner's interest will substantially enhance our ability to determine a more specific schedule.

Additional historical resources have been identified on the Sheep Mountain property, which total 6.5 million pounds U3O8, and are located in the North Gap area of the property. These historical resources were prepared before implementation of National Instrument 43-101. Recent independent verification of the data has not been performed and USECC/UPC have not completed sufficient exploration work to verify the historical estimate. The historical resources were prepared to industry standards at the time and are considered relevant today. USECC/UPC are not treating the historical estimates as NI 43-101 defined resources verified by a qualified person and they should not be relied upon.

Chris M Healey, P. Geo, is the Qualified Person as defined in NI 43-101 responsible for the technical information in this release.

UPC looks forward to an opportunity to meet with Rio Tinto Energy America, the owners of the Sweetwater Mill, located about 20 miles south of Sheep Mountain, to discuss production plans. The mill has been professionally mothballed and is in excellent condition; the mill also holds a performance-based operating licence from the U.S. Nuclear Regulatory Commission, which was renewed in 2004 for a 10-year term. The rated capacity for the mill is 3000 tons per day.

Activities will continue at all of our other joint venture properties in the US. In particular we have been very active in acquiring new breccia pipe targets in northern Arizona. Our land holdings there have increased substantially from 64 lode mining claims to 215. With this significant land position, in a very attractive area for exploration, we believe that we have significantly enhanced the potential for the discovery of mineralized breccia pipes.

Chris M. Healey, P.Geo, President of Uranium Power commented that, "While we have an excellent portfolio of properties in the USA, with both near-term production and mid-term exploration potential, we are not going to rest on our laurels. A major objective for 2007 is to aggressively pursue new acquisitions in the uranium sector. This may include properties outside our traditional area of activity, that being the western United States."

Rahoul Sharan, Chairman of Uranium Power added, "The appointment of Chris as President of the company is a clear indication of our plans to grow the company with new acquisitions."

URANIUM POWER CORP.

CHRIS M. HEALEY, President

WARNING: The Company relies on litigation protection for "forward-looking" statements. Actual results could differ materially from those described in the news release as a result of numerous factors, some of which are outside the control of the Company.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

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

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