SOURCE: Uruguay Mineral Exploration Inc.

October 13, 2005 05:33 ET

First Quarter Results; UME Declares Q1 Profit of US$ 2.24m

CALGARY, AB -- (MARKET WIRE) -- October 13, 2005 -- Uruguay Mineral Exploration Inc. (TSX-V: UME) (AIM: UGY) ("UME" or the "Company"), the profitable mid-tier gold producer and explorer, today released its results for the first quarter ended August 31, 2005.

Highlights were:

--  Net profit after tax of US$ 2.24m or US$ 0.05 per share.
--  Cash flow from operations of US$4.189m before non-cash working capital
    movements; equivalent to US$ 0.09 per share.
--  Gold production of 25,163 ounces meets 100,000 ounces per annum target
    rate.
--  An average cash cost of US$212/oz approaches the targeted US$200/oz.
--  Revenues of US$11.721m with average price of gold sold of US$432 per
    ounce.
    
Chairman Tony Shearer comments, "It is pleasing to see the Arenal mine performing in accordance with expectations, and unit costs being aggressively lowered. Exploration is making good progress as well with increased emphasis now being placed on Lascano and the Rivera Diamond project, in addition to our strong near-mine program."

Further details are available in the Management Discussion and Analysis that accompanies the Financial Statement, which are available from www.uruguayminerals.com or http://www.sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00004014

Editors note: Uruguay Mineral Exploration Inc., which joined AIM in December 2004, is a gold producer and exploration company focussed on identifying and developing mineral opportunities in Uruguay. UME is a fully integrated mining company, possessing the skills necessary to explore and develop its discoveries. The Company operates the only producing gold mine in the country (San Gregorio), and is also the leading mineral exploration company in Uruguay having assembled an exploration portfolio based on gold, base metals (copper, nickel, lead, zinc) and diamond prospects. In the first half of 2003, the Company discovered the Arenal deposit, currently the largest known gold resource in Uruguay. It is quoted in Canada (TSXV) and London (AIM) and Panmure Gordon & Co is the nominated adviser.

Contact Information

  • For further information, please contact

    Uruguay Mineral Exploration Inc

    Tony Shearer
    Chairman
    + 44 20 7523 5914
    Email Contact

    Chris Clark
    President
    +59 82 601 6354
    Email Contact

    PJ Lewis
    + 44 7950 003 138
    Email Contact


    Panmure Gordon & Co

    Mathew Robinson
    +44 207 459 3600

    Jonathan Retter
    +44 207 459 3600