Cue Resources Ltd.
TSX VENTURE : CUE

Cue Resources Ltd.

May 14, 2008 12:41 ET

Cue Resources Ltd. Reports NI 43-101 Compliant Resource on a Portion of the San Antonio Uranium Deposit, Yuty Project, Paraguay

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 14, 2008) - Cue Resources Ltd. (TSX VENTURE:CUE) (the "Company") is pleased to announce that a resource study has been completed on a portion of the San Antonio uranium deposit of the Yuty Project, Republic of Paraguay. The study was carried out by Scott Wilson Roscoe Postle Associates Inc. (Scott Wilson RPA), of Toronto, Ontario. The resource estimate and classification of the Mineral Resources conforms to the reporting requirements of National Instrument 43-101.

SUMMARY

- Indicated Resource: 7.8M tonnes @ 0.030 % eU3O8 containing 5.1Mlbs eU3O8

- Inferred Resource: 2.5M tonnes @ 0.040 % eU3O8 containing 2.2Mlbs eU3O8

The estimate was carried out using the GT (grade x thickness) Contour Method which is the industry standard method for this type of sandstone hosted uranium deposit. A cut-off grade of 0.02% eU3O8 was used, and a minimum vertical thickness of 1.5 metres. These cut offs are consistent with common practice for the evaluation of this style of mineralization.

The estimate of Mineral Resource covers only that portion of the deposit which has been drilled in sufficient detail to meet the Indicated and Inferred resource definitions contained in the CIM guidelines. This includes less than two-thirds of the mineralized strike length identified by previous drilling. The depth to the mineralization ranges from 80 metres to 150 metres, and averages about 100 metres.

THE YUTY PROJECT

Cue has the right to earn a 100% interest in the project; it currently owns a 30% interest in Transandes Paraguay, S.A. and is in the process of completing an earn-in for the remaining 70%. Transandes has a 236,000 hectare exploration permit granting the exclusive rights to explore for uranium on the Yuty project in south-east Paraguay.

Between 1976 and 1982, Anschutz Corporation, along with JV partners KEPCO and Taiwan Power, drilled approximately 280 holes in the vicinity of the San Antonio deposit. Since July 2007, Cue has drilled an additional 170 holes. The results of this drilling show that the core portion of the deposit is considerably wider than had been previously identified, with more consistent mineralization. This drilling has enabled Cue to move the project from the Historical Estimate stage to a compliant resource in both the Indicated and Inferred categories after only 8 months of drilling. This is a major step forward for this exciting project.

A program of core testing, reported February 8, 2008, shows that disequilibrium is not a problem for the deposit. Indeed, at grades over 0.10% eU3O8, the true grade may be significantly understated by the use of radiometric grades.

Preliminary leach test work, previously announced on March 27, 2008, indicates that very high recoveries (up to 96.7%) can be obtained from core samples, using an acid lixiviant. Environmental baselines studies are underway to position the company for an early production decision.

Although field work to date has concentrated on the known mineralization at San Antonio, there are many other high potential targets on this very large project. Several received limited drilling by Anschutz, yielding very positive results.

PARAGUAYAN POLITICS

The results of the recent presidential elections in the Republic of Paraguay are considered by Cue to be extremely positive. The President-elect, Fernando Lugo is an Independent who is strongly linked to the centrist Liberal Party. The Liberal Party is fully committed to maintaining a climate conducive to industrial development.

RESOURCE ESTIMATE

The resource estimate is summarized below:



Indicated:
Layer tonnes % eU3O8 contained lbs eU3O8
1 7,100,000 0.030 4,750,000
2 660,000 0.022 320,000
--------- ------- -------------------
Total 7,760,000 0.030 5,070,000

Inferred:
Layer tonnes % eU3O8 contained lbs eU3O8
1 2,180,000 0.044 2,080,000
2 300,000 0.020 130,000
--------- ------- -------------------
Total 2,480,000 0.040 2,210,000


This resource estimate is based on downhole radiometric logging data, and is therefore reported as "eU3O8" or "equivalent U3O8". The validity of using this type of data has been demonstrated in a previously announced (February 6, 2008) extensive chemical assay program. A report, conforming to the reporting requirements of National Instrument 43-101 will be filed on SEDAR as soon as it is available, and not later than 45 days from the issuance of this news release.

FUTURE PLANS

Given this major advance in the project, Cue now intends to pursue an aggressive work program. Planned work includes additional metallurgical testing, mineralogy studies, continued baseline environmental work, and a substantial drilling program. This work will lead to the initiation of a pre-feasibility study at an early date.

Chris M. Healey. P.Geo, COO Cue, is the Qualified Person responsible for the technical content of this release, and Hrayr Agnerian, P.Geo., is the Qualified Person for the resource estimate.

CUE RESOURCES LTD.

Chris Healey, Chief Operating Officer

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 Resources Ltd.
    Chris Healey
    Chief Operating Officer
    (604) 921-1810
    (604) 921-1898 (FAX)