High Plains Uranium, Inc.

High Plains Uranium, Inc.

August 28, 2006 09:00 ET

High Plains Forms JV with New Horizon Uranium and Canyon Resources

CHEYENNE, WYOMING--(CCNMatthews - Aug. 28, 2006) - High Plains Uranium (TSX:HPU) is pleased to announce that it has completed the JV Exploration, Development and Mine Operating Agreement (the "Agreement") to form the Sand Creek Joint Venture with the Converse Joint Venture covering an area of known uranium occurrences in Converse County, Wyoming. The Sand Creek JV covers a defined area of approximately 92,000 acres (37,300 hectares), located east and south of Douglas, Wyoming. The primary goal of the Sand Creek JV is to move as rapidly as possible to the production of uranium by the In-Situ-Leach mining method.

The Converse Joint Venture ("Converse") is composed of New Horizon Uranium Corporation, a private company based in Golden, Colorado, and Canyon Resources Corporation (AMEX:CAU), also a Colorado-based mining company.

Under the terms of the Agreement, High Plains will contribute its surface and mineral holdings within the defined area. Converse will also contribute its holdings as well as historical geologic data, drill logs and engineering studies done in the 1970's and 1980's in the defined area. The Sand Creek JV will be 70% owned by Converse and 30% owned by High Plains with revenues and expenses allocated accordingly. Both members of the Sand Creek JV will market their respective share of production and New Horizon will be the operator of the Sand Creek JV.

Uranium mineralization has previously been identified in the White River Formation that trends through the Sand Creek JV area. That trend is believed to be highly prospective and is the same formation containing Cameco Corporation's Crow Butte in-situ leach (ISL) operation in Nebraska.

A seismic geophysical program of six survey lines totalling 21,000 feet was completed this month to assist in location of approximately 30 drill holes as part of New Horizons 2006 Converse exploration program. This work was completed over an area that will be included in the Sand Creek area of interest. A permit application has been submitted by New Horizon to Wyoming Department of Environmental Quality and drilling is planned to commence in October. These drill holes have been located based on interpretation of work done by Canyon and its joint venture partners in the early 1980s, which will be partially confirmed by the recent geophysical program. Converse has completed a draft NI 43-101 report by a qualified person estimating resource potential on its acreage within the defined area. This report will be modified to reflect High Plains' contribution and released at the appropriate time.

High Plains Uranium, Inc. is a Wyoming based uranium exploration and development company focused on the development of uranium deposits in Wyoming and Texas, which are amenable to In-Situ Leach mining methods.

Thomas Parker, President & CEO, a 'qualified person' for the purpose of the NI 43-101, has reviewed the contents and technical information contained in this news release.

This news release contains forward-looking statements; these statements relate to future events or future performance and reflect management's current expectations and assumptions. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management of High Plains. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements. These forward-looking statements are made as of the date hereof and High Plains does not assume any obligation to update or revise them to reflect new events or circumstances.

The TSX has not reviewed and does not accept responsibility for this news release.

Contact Information

  • High Plains Uranium, Inc.
    Tom Parker
    President and CEO
    (307) 433-8708