SOURCE: Uruguay Mineral Exploration Inc.

April 28, 2005 08:40 ET

CAD$9.9m Increase in Working Capital

CALGARY, AB -- (MARKET WIRE) -- April 28, 2005 -- Uruguay Minerals Exploration Inc. (TSX-V: UME) (AIM: UGY) has increased working capital by CAD$9.9m following the exercise of all the warrants scheduled to expire on 21 April 2005. A total of 2,640,000 warrants were exercised at $CAD3.75 each, including the 2,012,250 warrants referred to in the Quarterly report released on 14 April 2005. Of the total funds received as a result of this exercise ($CAD 9,900,000), $CAD 7,545,937 was received subsequent to February 28, 2005, the Company's latest quarter end.

Following the conversions, the Company now has 46,092,418 shares, 250,000 warrants and 2,784,000 options on issue.

The new funds raised will be used to accelerate exploration progress and retire debt.

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

Editors note: Uruguay Mineral Exploration Inc. is a gold producer and exploration company focussed on identifying and developing mineral opportunities in Uruguay. UME is a fully integrated mining company, possessing the skills necessary to explore and develop its discoveries. The Company operates the only producing gold mine in the country (San Gregorio), and is also the leading mineral exploration company in Uruguay having assembled an exploration portfolio based on gold, base metals (copper, nickel, lead, zinc) and diamond prospects. In the first half of 2003, the Company discovered the Arenal deposit, currently the largest known gold resource in Uruguay. It is quoted in Canada (TSXV) and London (AIM) and Durlacher Limited is the nominated adviser.

Contact Information

  • For further information, please contact:

    Uruguay Mineral Exploration Inc.
    Tony Shearer, Chairman
    + 44 20 7523 5914
    tony@tonyshearer.com

    Chris Clark, President
    +59 82 601 6354
    urumin@adinet.com.uy

    PJ Lewis
    + 44 7950 003 138
    pjlewis@tiscali.co.uk

    Durlacher Limited
    Mathew Robinson
    +44 207 459 3600

    Jonathan Retter
    +44 207 459 3600