Great Bear Uranium Corp.

Great Bear Uranium Corp.

July 07, 2008 09:40 ET

Great Bear Uranium Executes Letter of Intent to Acquire Chord Property From Strathmore Minerals Corp.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 7, 2008) - Great Bear Uranium Corp. (the "Company" or "Great Bear") (CNQ:GTBR) is pleased to announce that it has entered into a Letter of Intent ("LOI") with Strathmore Minerals Corp. ("Strathmore") for an option to acquire a 100% interest in the Chord Uranium Property located in South Dakota, USA.

The Chord Property comprises twenty-two claims totalling 440 acres and is located approximately 15 miles north of the town of Edgemont, South Dakota. Uranium was first discovered at Chord in the 1970s and extensive drilling by previous operators Tennessee Valley Authority and Union Carbide outlined a historic uranium resource estimate totalling 3.8 million lbs U3O8 at an average grade of 0.11% U3O8.

(Date of
Resource Resource
Location Estimate) Classification Tonnage Grade % U3O8 lbs/U308
Chord, Union Historical: 1,727,000 0.11 3,800,000
South Carbide/ Measured,
Dakota TVA (1998) Indicated &

The foregoing historical resource estimate was completed prior to the implementation of NI 43-101. Given the quality of the historic work completed, the Company believes the resource estimate to be both relevant and reliable. However, a qualified person has not completed sufficient work to classify the historic mineral resource as a current mineral resource. Hence, it should not be relied upon. The Company is not treating this historical estimate as a NI 43-101 defined mineral resource or mineral reserve.

Uranium mineralization at the Chord Property primarily occurs within sandstones of the Chilson Member of the Cretaceous Lakota Formation. Mineralization is shallow and generally less than 500 feet in depth. The deposit can be classified as a "roll front" type. Roll front deposits account for a significant portion of the global uranium supply and are common throughout south-western South Dakota and neighbouring Wyoming State. Powertech Uranium Corp's Dewey-Burdock Project, for instance, is located about 10 kilometers north of Chord and contains a classic roll front type deposit with a NI 43-101 compliant Inferred Resource of 1.8 million tonnes containing 7.6 million pounds of U3O8 with an average grade of 0.21% U3O8.

As per the terms of the LOI, Strathmore will grant Great Bear the option to acquire 100% interest in the Chord Property by making cash payments totaling C$4,100,000 to Strathmore as follows:

(a) C$100,000 within three days following the date (the "Effective Date") of execution and delivery of a formal agreement;

(b) An additional $300,000 not more than 90 days after the Effective Date;

(c) An additional $400,000 not later than the first anniversary of the Effective Date;

(d) An additional $600,000 not later than the second anniversary of the Effective Date;

(e) An additional $800,000 not later than the third anniversary of the Effective Date;

(f) An additional $900,000 not later than the fourth anniversary of the Effective Date;

(g) An additional $1,000,000 not later than the fifth anniversary of the Effective Date;

The completion of the transaction is subject to the execution of a definitive agreement, technical and legal due diligence by Great Bear, and final acceptance of any filings required to be made by Strathmore with the TSX-V and by Great Bear with the CNQ.

The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 and reviewed on behalf of the company by Dr. Lawrence Dick P.Geo, a qualified person.


Great Bear Uranium Corp. is a well financed mineral exploration company focused on the strategic acquisition, exploration, and development of uranium properties. The Company has assembled a strong portfolio of projects in some of Canada's foremost uranium producing and exploration regions - the Athabasca Basin, Thelon Basin, and Uranium City Mining District - and is well positioned to discover new sources of supply. While exploring these properties management will continue to target the acquisition of additional uranium interests that are value-creating. Great Bear's shares are listed on the CNQ exchange under the symbol "GTBR".

This news release may contain forward-looking statements. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.


Donald Gee, President and CEO

The CNQ has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

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