Cue Resources Ltd.
TSX VENTURE : CUE

Cue Resources Ltd.

July 16, 2007 13:03 ET

Cue Capital Corp. Announces Start of Drilling on Yuty Project, Paraguay

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 16, 2007) - Cue Capital Corp. (TSX VENTURE:CUE) "Cue" is pleased to announce that drilling has commenced at the San Antonio area on the Yuty uranium project in the Republic of Paraguay. Two rigs will be employed; a rotary rig to drill down to approximately 25 meters and then set surface casing, and a diamond drill rig to drill to the target depth. The initial program will consist of 20 - 30 holes to validate the previous drilling results from the early 1980's, as well as to provide core samples for disequilibrium and physical property testing. This will be followed by a program of 150 to 200 delineation holes to better define the San Antonio trend.

Under two previously announced agreements, Cue can earn up to a 100% interest in Transandes Paraguay S.A (Transandes), the holder of the exploration permit for the property. The initial agreement dated November 3, 2006 between Cue and the vendors, Sebastian Reidl and Alex Hirtz, allows Cue to earn a 70% interest in Transandes by completing an $8,000,000 work commitment, delivering a preliminary feasibility study, and issuing 4,000,000 shares to the vendors by December 31, 2009. A recent agreement dated June 28, 2007 allows Cue to purchase the remaining 30% interest by paying the vendors $4,500,000 by August 27, 2007 in addition to certain balloon payments based on future resource estimates, and payment of a 2.5% production royalty.

The terms of acquisition of the additional 30% are subject to Cue completing a further financing and TSX Venture Exchange approval.

Chris Healey, P.Geo, COO of Cue Capital commented; "The commencement of drilling represents a significant milestone in the advancement of this project. The overall objective is to generate a database sufficient to estimate a compliant resource on the project, as well as to better define the ultimate potential of this large, 236,000 ha, property."

For more information on the Yuty project, please visit our website at www.cueresources.ca.

CUE CAPITAL CORP.

Chris Healey, COO & Director

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.

Contact Information

  • Cue Capital Corp.
    Chris Healey
    COO & Director
    (604) 921-1810
    (604) 921-1898 (FAX)
    Website: www.cueresources.ca