Energy Metals Corporation

Energy Metals Corporation

November 10, 2005 14:50 ET

Energy Metals Corporation and Standard Uranium Inc. to Complete Business Combination

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 10, 2005) - Energy Metals Corporation (TSX VENTURE:EMC) ("Energy Metals") is pleased to announce that it has entered into an initial letter of intent with Standard Uranium Inc. (TSX VENTURE:URN) ("Standard Uranium") dated November 10, 2005 (the "Letter Agreement"), whereby the parties will enter into a business combination, such that Standard Uranium will become a wholly-owned subsidiary of the Energy Metals (the "Proposed Transaction"). Pursuant to the terms of the Letter Agreement, Energy Metals intends to acquire all of the issued and outstanding common shares of Standard Uranium on the basis of 0.64 common shares of Energy Metals for every 1.00 common share of Standard Uranium expected to be issued and outstanding as of the date of the Proposed Acquisition. It is expected that the Proposed Transaction will occur by way of a take-over bid, plan of arrangement or amalgamation subject to review of tax, accounting, corporate and securities law issues. The Proposed Transaction will be subject to a 45 day due diligence period by both parties and receipt of regulatory approval, including that of the TSX Venture Exchange and shareholder approval of Energy Metals and Standard Uranium, if applicable.

Standard Uranium's primary business is the acquisition and development of historically identified uranium projects in countries with favourable geology and mining environments. Standard Uranium holds uranium projects in Arizona, Wyoming and Colorado. In addition it has agreements to acquire, on a joint venture basis, certain assets of Everest Exploration Inc. and Everest Resource Company, which include the existing Hobson Plant uranium recovery facility to produce uranium oxide product from the Palangana property in Texas (the "Everest Acquisition"). Standard Uranium currently has 12,809,926 common shares, 810,000 stock options and 2,565,000 common share purchase warrants issued and outstanding. In addition, Standard Uranium may issue additional common shares, stock options or other convertible securities prior to the completion of the Proposed Transaction and all such securities would be subject to the Proposed Transaction.

Completion of the Proposed Transaction is subject to a number of conditions, including, but not limited to, completion of due diligence, entering into of formal agreements, receipt of all required regulatory and shareholder approvals. In addition, completion of the Proposed Transaction will be subject to termination in the event of any material adverse change, including without limitation, the cancellation or termination of the Everest Transaction. There can be no assurance that the Proposed Transaction will be completed as proposed or at all.

The acquisition of Standard Uranium is in line with Energy Metals Board's strategy that Energy Metals undertake aggressive steps to become one of the largest U.S. domestic uranium producers and resource base holders in the public sector. Some of the initial benefits that will be realized are:

- The opportunity for near term uranium oxide production with the acquisition of the Hobson Plant and the Palangana property

- The Maybell project in northwestern Colorado with historic resources of 40 million pounds of oxide (U3O8) as reported by URN April 6th 2005

- Additional opportunities in Wyoming with eight properties of merit and the ability to consolidate Energy Metal's Arizona properties with those of Standard Uranium's for exploration and joint ventures

- Extensive Texas data base with the Everest Acquisition

- Access to several key personnel affiliated with Everest as well as Standard Uranium, thereby creating one of the top ISL (in-situ leaching) production teams in the United States

In addition, Energy Metals has agreed to advance up to US$7,000,000 to Standard Uranium for the purpose of Standard Uranium meeting the funding requirements for the Everest Acquisition. It is currently expected that the loan will have a three year term and will bear a 4% per annum interest rate. The loan shall be convertible into common shares of Standard Uranium from time to time at the rate of $1.45 per common share. The conversion terms shall provide, among other things, that at no time will Energy Metals acquire greater than 19.5% of the then issued and outstanding shares of Standard Uranium. It shall also contain certain automatic conversion features and will be subject to receipt of all required TSX Venture Exchange approvals. Standard Uranium is continuing its due diligence and negotiations regarding the Everest Acquisition and is in the process of submitting materials to the TSX Venture Exchange to obtain regulatory approval. There can be no assurance that the Everest Acquisition will be completed as proposed or at all.

In conjunction with the foregoing, Energy Metals announces that it has arranged for a non-brokered private placement of 2 million of its shares at a price of CDN$3.10 per share for gross proceeds of up to CDN$6,200,000. The proceeds of the private placement will be used for Energy Metals' general working capital and property acquisition and development. The private placement is subject to regulatory acceptance.

Energy Metals Corporation is a Canadian listed company involved in developing resources to power the 21st century. The Company has adopted a corporate strategy to focus on the acquisition and development of uranium assets in politically favorable and mining-friendly jurisdictions within the United States to take advantage of the continuing growth in the U.S. and worldwide of demand for electrical energy. This increasing consumption is occurring at a time when uranium mine supplies are dwindling and inventories are being depleted.

The Company is targeting advanced uranium prospective properties in Wyoming that are amenable to ISL (in-situ leaching). This form of uranium mining was pioneered in Wyoming. It utilizes water wells and oxygen-fortified groundwater to mine the uranium in place. Energy Metals Corporation is also actively advancing other conventional mining and ISL opportunities for uranium properties in the States of Utah, Nevada, Oregon, Arizona and South Dakota.


Paul Matysek, CEO and President

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

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