Bluerock Resources Ltd.

Bluerock Resources Ltd.

September 06, 2007 09:54 ET

Bluerock Resources Signs Option Agreement to Purchase 100% of the J-Bird Uranium Mine Project, Montrose County, Colorado, USA

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 6, 2007) - Bluerock Resources Ltd. (TSX VENTURE:BRD) (the Company) announces it has signed an option agreement with Rimrock Exploration and Development Inc. (Rimrock) to purchase the J-Bird Uranium Mine Project in Montrose County, Colorado, USA.

The J-Bird Uranium Mine project consists of 25 mineral claims encompassing the newly permitted J-Bird Uranium Mine, mine site and surrounding area. The Project is located west of the historic Uravan Uranium/Vanadium Mineral Belt, Montrose County, Colorado which is the main target of the Company's aggressive uranium project acquisition and production strategy. The J-Bird Uranium Mine Project is permitted for mining operations with both the state and BLM offices, and this fact will allow the Company to initiate immediate development and production of the J-Bird Uranium Mine. A valid exploration drilling permit is also in place which will allow the Company to quickly advance exploration drilling on the Project.

The J-Bird claim block hosts three historic uranium producers (Maud, Prayer 9 and Yellow Bird) and adjoins a fourth historic uranium mine (Uranium Girl). Grade(1) at the Yellow Bird Uranium Mine was reported by the USGS to be 0.34% U3O8 and 1.80% V2O5. Recent exploration on the J-Bird claim block has been conducted by a private company, precluding the need to develop a reportable resource. However drilling in 2006 and 2007 defined four areas of uranium mineralization within 1,200 feet (360m) of the proposed J-Bird portal site.

(1)The historical data and information stated herein is not NI 43-101 compliant and has not been verified by the Company, but is considered relevant and reliable. The Company intends as part of its work program to verify the same using methods and calculations recognized under N.I. 43-101.

Of the 18 RC holes drilled in 2006 and 2007 five of these holes remain open. As a part of the Company's due diligence on the project, third party downhole gamma logging was conducted on these open holes. This program returned mineralized interval results from 0.066% eU3O8 over one foot (0.33m) to 0.756% eU3O8 over three feet (0.91m), which confirm the tenor of the reported values and speak to the economic potential of the project.

Company due diligence results are summarised below:

Hole ID Depth Interval Grade
(feet) (metres) (feet) (metres) % eU3O8
JB9-07 192.5 58.67 1.5 0.46 0.186
JB12-07 115.5 35.20 1 0.33 0.066
117.5 35.81 1.5 0.46 0.363
JB13-07 122.5 37.34 1 0.33 0.083
JB14-07 136 41.45 3 0.91 0.756
including 138 42.06 0.5 0.15 1.595
JB18-07 176 53.64 1.5 0.46 0.272
178 54.25 2.5 0.76 0.292

Century Geophysical Corp. was contracted by the Company to conduct this downhole gamma logging due diligence program. Century Geophysical Corp. has a long history of providing third party downhole probe services to the uranium exploration and development industry and is well known and respected in the industry. The Downhole gamma logging reported in this release utilized a "10 inch log, GAMMA-SP-RES" unit with calibration both prior to, and after the physical logging of the bore hole.

A 20,000 foot (6,100m) drilling program at the J-Bird Mine Project has been contracted to Rimrock Exploration and Development utilizing Rotary Circulation (RC) drilling. It is expected that this drilling will occur over the next year in several distinct programs, building iteratively on successive results. The Company intends to establish a resource at the J-Bird Uranium Mine in the summer of 2008.

Historical data (1960's vintage) from the Vanadium Corporation of America has been identified and will be integrated into the Company's exploration and development work at the J-Bird Uranium Mine Project.

Pending TSX Venture Exchange acceptance the Company will immediately move to execute an exploration drill program on the J-Bird Uranium Mine Project. The company also intends to collar an underground portal and extract a bulk sample in support of a scoping study to prepare the J-Bird Uranium Mine for production. The J-Bird Uranium Mine Project joins with Bluerock's Tramp Mine and Cone Mountain project to exceed a projected production threshold that will enable the Company to fulfill key toll milling requirements of Denison's White Mesa Uranium Mill, the only fully permitted Uranium mill in the US south west.

Under the terms of the agreement (which is subject to regulatory approval), the Company can purchase 100% of the J-Bird Uranium Mine Project from Rimrock by:

- Paying US$200,000 upon receipt of Exchange approval to the Agreement;

- Paying an additional US$300,000 on or before December 1, 2007;

- Paying an additional US$300,000 on or before August 21, 2008; and

- Completion of US$200,000 of Reverse Circulation Drilling.

Bluerock President Michael Collins commented: "Bluerock is very excited to begin work on the J-Bird Uranium Mine Project. The grade and tenor exceeds our expectations in developing an aggregate resource base in combination with the Cone Mountain Uranium Project and the Tramp Uranium Mine as we pursue our goal of becoming a uranium producer under a toll milling scenario. Bluerock will continue to work to identify significant uranium projects that can be developed and produced quickly under a toll milling structure.

Paul D. Gray, P.Geo. is the Qualified Person with respect to the J-Bird Uranium Mine Project and has reviewed and approved this press release.

Bluerock Resources Ltd. is a uranium exploration company focused on discovering tomorrow's energy today through the acquisition and development of conventional uranium resources.


Michael Collins, CEO, President and Director

Statements contained in this document that are not historical facts are forward looking statements as that term is defined in the private securities litigation reform act of 1995. Such forward -looking statements are subject to risks and uncertainties which could cause actual results to differ materially from estimated results. Such risks and uncertainties are detailed in the Company's filing with the B.C. Securities Commission.

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

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