Denison Mines Inc.
TSX : DEN

Denison Mines Inc.

March 24, 2006 10:16 ET

Denison Establishes an Exploration Beachhead in Australia

TORONTO, ONTARIO--(CCNMatthews - March 24, 2006) -

Not for distribution to United States newswire services or for dissemination in the United States

Denison Mines Inc. (TSX:DEN) announces that it has entered into a Strategic Alliance in Australia with Energy Metals Limited. Energy Metals is listed on the Australian Stock Exchange and trades under the symbol EME.

As part of the Strategic Alliance, Denison has subscribed for 3 million Energy Metals shares at an issue price of A$1.50 for a total cost of C$3,774,000, giving Denison a 12% equity interest (on an undiluted basis) and making Denison the second largest shareholder of Energy Metals. Denison will have the option to participate pro-rata in any future equity issues of Energy Metals and have a right of first refusal over Energy Metals' uranium properties in respect to any sale or joint venture arrangement provided Denison continues to hold at least 7.5% of Energy Metals' issued and outstanding capital. The newly-acquired shares are subject to a hold period of 12 months.

To check the Ngalia Regional Tenements map, please click on the following link:

http://www.ccnmatthews.com/docs/ngalia.jpg

Energy Metals has interests in seven good uranium exploration projects in Western Australia and the Northern Territory. Most of the properties contain uranium mineralization discovered in the 1970s. Energy Metals' experienced management intends to use the funds raised from this equity issue primarily to fast track exploration of its highly prospective uranium projects in the Northern Territory, particularly on the high-grade Bigrlyi project and the recently granted Ngalia Regional project. Funds will also be utilized for the acquisition of new exploration and development projects in Australia and for the upgrading of calcrete uranium prospects in Western Australia. Further information on Energy Metals and its properties can be found on its website at www.energymetals.net.

The establishment of this Strategic Alliance with Energy Metals gives Denison a beachhead in Australia, the second largest uranium producing country in the world, and a unique opportunity to explore for and develop new uranium reserves and resources required to supply fuel to the nuclear power industry worldwide.

About Denison

Denison Mines Inc. is a uranium exploration, development and production company whose principal assets are a 22.5% interest in one of the world's largest uranium facilities at McClean Lake in Northern Saskatchewan and its 25.17% interest in the Midwest Uranium Project. It is actively engaged in exploration activities in Canada's Athabasca Basin and in Mongolia. It is also engaged in mine decommissioning and environmental services through its Denison Environmental Services division and provides management services to Uranium Participation Corporation. Additional information on Denison is available on SEDAR at www.sedar.com and on Denison's website at www.denisonmines.com.

Contact Information

  • Denison Mines Inc.
    E. Peter Farmer
    President and Chief Executive Officer
    (416) 979-1991 Extension 231
    or
    Denison Mines Inc.
    Donald C. Campbell
    Vice President, Marketing and Special Projects
    (416) 979-1991 Extension 238
    www.denisonmines.com