Cue Resources Ltd.
TSX VENTURE : CUE

Cue Resources Ltd.

January 11, 2011 09:00 ET

Cue Resources Ltd. Confirms and Expands Mineralization at San Antonio, Yuty Project, Paraguay

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 11, 2010) - Cue Resources Ltd. ("Cue") (TSX VENTURE:CUE) is pleased to announce the results of its recently completed drill program on its 100% owned Yuty Project in the Republic of Paraguay. The program consisted of 33 drill holes for a total of 3596 meters. The objectives of the program were to expand the previously defined limits of the San Antonio deposit, as well as to increase the understanding of some areas with resources where the drilling is relatively wide spaced.

The drilling has successfully identified a modest expansion of the deposit limits to the south and west of the main zone, and has also successfully confirmed previously identified high grade mineralized zones within the deposit limits.

Drilling was performed by two diamond drill rigs and two reverse circulation rigs. Radiometric (gamma) and electric downhole logging was completed on all holes. The logging was performed using industry standard equipment which was calibrated both in Paraguay and in the US Department of Energy test pits in Grand Junction, CO USA. Equivalent uranium grades (eU3O8) were estimated from the downhole gamma readings, as per standard industry practice. Doug Beahm, PE, PG, is a qualified person and was on site during the initiation of the drilling program during which time he assisted in the development of standard protocols for geophysical logging, calibration, and log interpretation. Mr. Beahm observed the drilling and geophysical logging practices and can attest as to the reliability of the data collected during the drilling program for the purposes of resource calculations in accordance with 43-101 regulations and CIM standards.

Of the 33 drill holes, 5 were not completed to the target horizon because of adverse drilling conditions. Of the 28 holes that reached the target, 10 had intersections greater than a GT (grade x thickness) of 0.10 m% eU3O8, and an additional 13 had intersections exceeding a GT of 0.03 m% eU3O8 (the minimum cut-off used for inclusion in the resource estimate mentioned below).

Highlights of the drill program include:

Drill Hole # Type Total Depth Best Intercept GT (m%eU3O8)
THK (m) To (m) From (m) %eU3O8
1245 Step Out 126.00 2.59 83.82 86.41 0.05 0.12
1246 Step Out 118.65 1.99 83.86 85.85 0.11 0.22
1255 Infill 106.20 6.28 78.00 84.28 0.08 0.50
1256 Infill 102.00 2.59 77.40 79.99 0.05 0.12
1257 Infill 102.00 3.29 78.30 81.59 0.03 0.11
1258 Infill 93.00 2.49 74.21 76.70 0.07 0.17
1260 Infill 91.20 0.90 85.38 86.28 0.12 0.11
1262 Infill 102.00 6.28 72.42 78.70 0.20 1.22
1266A Infill 102.00 5.69 71.92 77.61 0.03 0.14
1268 Infill 112.00 3.09 88.57 91.66 0.11 0.35

"We are satisfied that we have now identified the western extension of the San Antonio deposit and confirmed earlier results showing a higher grade zone in the main ore body at San Antonio with this first of a 2 part drill program," commented Bob Tyson, president and CEO of Cue. "The Company plans to continue this process with another 3500 meter drill program planned for the southern extension in the coming weeks".

Chris M. Healey, P.Geo, a director of Cue, is the Qualified Person responsible for the technical content of this release.

About Cue Resources

Cue Resources Ltd. is focused on developing the Yuty Uranium District in south-eastern Paraguay. Two major drilling campaigns have been completed by Cue leading to the completion of the most recent NI 43-101 compliant resource reporting an Indicated Resource of 9.0M tonnes @ 0.042% eU3O8 containing 8.3M lbs eU3O8 and an Inferred Resource of 1.1M tonnes @ 0.050% eU3O8 containing 1.2M lbs eU3O8. Column leach tests have demonstrated recovery of up to 86% of the contained uranium from cores taken from San Antonio. In addition, laboratory testing on drill cores has shown permeability and porosity values within the range of existing commercial ISR operations. For detailed information, please see the Cue web site at http://www.cue-resources.com.

On behalf of the Board of Directors

Robert S. Tyson, President and Chief Executive Officer

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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