ESO Uranium Corp.

ESO Uranium Corp.

August 29, 2007 15:41 ET

ESO Signs Drill Contract for Hook Lake Claims, South Athabasca Basin, Saskatchewan; Cash Position Secure at $6.2 Million-No ABCP

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 29, 2007) - ESO Uranium Corporation (TSX VENTURE:ESO)(FRANKFURT:E2G), the Company, is pleased to announce that a second contract has been signed with Cyr Drilling International Ltd. of Winnipeg. This will enable the start, in the next two weeks, of a 10 hole diamond drill program on its 132,000 acre (52,800 hectare) Hook Lake uranium claims. This program will be carried out using helicopter support for the drilling operation to allow access prior to winter freeze-up.

The drilling will test targets on a possible extension of the north-northeasterly striking Dirksen Structure which appears to extend through targets identified on the 100% owned Hook Lake claims. A second target area has been selected for the drill program that is on a sub-parallel structure lying to the west of the Dirksen. A drill hole (DER-4) by Imperial Oil and SMDC on the Dirksen structure is located 4 km from the south central boundary of the Hook Claims. This hole had grades of 0.24% (4.8 lb/t) U3O8 and 1.35% nickel reported for a 2.5 meter intercept located 9.8 meters below the unconformity at the base of the Athabasca Basin.

Drill target selection for the Hook claims has been based on airborne and ground geophysical surveys which included the Fugro Megatem airborne system and high resolution ground resistivity surveys carried out by Peter Wallcott and Associates. The drill target areas are near the up-ice head of boulder trains with previously identified geochemical anomalies; these anomalies include boron, illitic clay and other pathfinder elements that are seen in the alteration plumes above high grade Athabasca type uranium deposits.

ESO confirms that it does not hold asset backed commercial paper (ABCP) that may have recently caused a reduction of liquidity or financial losses for some companies. The ESO treasury is not exposed to any financial instruments directly involving the U.S. residential property market, mortgages or automobile loans. The Company's total cash and cash equivalents of approximately $6.2 million are held in cash and banker's acceptances (maturities of 90 days or less) with major Canadian banks and as advances to contractors.

For reference, the current spot price quoted by for uranium oxide is US$90 per pound of U3O8; an assay reported as 1.0% of U3O8 is equal to 20 pounds of uranium oxide per short ton - the conversion of percent metal or metal oxide from percent to pounds per short ton is done by multiplying the % value by 20.

On behalf of the Board of Directors of ESO Uranium Corp.

Ben Ainsworth, Vice President, Exploration

Please reference the ESO Uranium website for updated information.

Statements contained in this news release that are not historical facts are forward looking statements as that term is defined in the private securities litigation reform act of 1995. Such forward looking statements are subject to risks and uncertainties which could cause actual results to differ materially from estimated results. Such risks and uncertainties are detailed in the Company's filing with the Securities and Exchange Commission.

The Toronto Venture Exchange has not reviewed nor accepted responsibility for the adequacy or accuracy of the contents of this news release which has been prepared by management.

Contact Information

  • ESO Uranium Corp.
    Tom Corcoran
    Corporate Communications
    (604) 629-0293 or Toll Free: 1-866-629-0293
    ESO Uranium Corp.
    Bob Meister
    Corporate Communications
    (604) 629-0293 or Toll Free: 1-866-629-0293
    (604) 684-9365 (FAX)