International Uranium Corporation

International Uranium Corporation

March 07, 2005 12:44 ET

IUC Announces Acquisition of Southeast Utah Uranium Resources and Initiation of Permitting for Production Start Up


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: INTERNATIONAL URANIUM CORPORATION

TSX SYMBOL: IUC

MARCH 7, 2005 - 12:44 ET

IUC Announces Acquisition of Southeast Utah Uranium
Resources and Initiation of Permitting for Production
Start Up

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 7, 2005) -
International Uranium Corporation ("IUC" or the "Company") (TSX:IUC) is
pleased to announce that the Company is finalizing the addition of two
key properties adjoining its existing Bullfrog mining claims in Garfield
County in southeast Utah (To view attached map please click on the
following link:
http://www2.ccnmatthews.com/database/fax/2000/0307iuc.jpg). The properties
being added encompass the entire Tony M Mine, which was extensively
developed in the early 1980's but was never put into production.
Addition of the Tony M Mine properties, comprised of a Utah State
section and 17 privately-held unpatented mining claims, to the company's
existing holdings will nearly double the identified uranium resources
the Company controls in Garfield County.

The Utah State section was recently offered by sealed competitive bid,
and the Company has been selected as the winning bidder with an initial
cash bid of U.S. $1.0 million. Finalization of lease terms and royalty
provisions is presently in progress with the State.

In addition to the State section, the Company has signed a letter of
intent to acquire 17 privately-held unpatented mining claims. Terms
include cash payments of $200,000, $50,000 paid upon signing of the
letter of intent and $150,000 payable upon signing of the formal
agreements as well as 250,000 shares of the Company. The owner will also
have uranium and vanadium royalties. The Company and the owner of the
claims are in the process of finalizing formal agreements, which will be
subject to regulatory approvals.

Ron Hochstein, President of International Uranium Corporation, stated
that "the combination of the Tony M Mine properties with the Company's
Bullfrog mining claims (collectively the "Henry Mountains Complex")
consolidates one of the largest known uranium resources in the Colorado
Plateau District. The Properties are within hauling distance of our
White Mesa Mill, and the consolidated resources will provide a long term
source of feed to the Mill. The addition of the new properties is an
exciting opportunity for the Company and is the first time in the
history of these properties that they have been consolidated under one
operator."

The Company is beginning the permitting process for the Henry Mountain
Complex with the aim to put these mines into production immediately upon
receipt of the required permits. The Henry Mountain Complex is a unique
uranium production opportunity in the U.S., and the Company plans to
develop the consolidated project into a consistent uranium production
center. The company also controls several other properties in the
Colorado Plateau and Arizona Strip Districts that will also provide feed
to the White Mesa Mill.

The Henry Mountains Complex uranium resources are hosted in basal sand
units of the Salt Wash member of the upper Jurassic Morrison Formation.
Regionally the Salt Wash has been the primary source of uranium/vanadium
ores on the Colorado Plateau throughout its history. The following
inferred resource estimates are based on the work of the past operators
and may not reflect current mining parameters:



HENRY MOUNTAINS COMPLEX URANIUM INFERRED RESOURCES

------------------------------------------------
Deposit Tons Grade Pounds U3O8
------------------------------------------------
Tony M Mine 3,549,000 0.15 10,898,000
------------------------------------------------

------------------------------------------------
Bullfrog
------------------------------------------------
Southwest 461,000 0.32 2,906,000
------------------------------------------------
Copper Bench 1,009,000 0.31 6,184,000
------------------------------------------------
Indian Bench 468,000 0.41 3,834,000
------------------------------------------------
Bullfrog Total 1.938,000 0.33 12,924,000
------------------------------------------------

------------------------------------------------
TOTAL 5,487,000 0.217 23,822,000
------------------------------------------------


The addition of the Tony M Mine brings IUC's total inferred resources in
the U.S. to approximately 34 million pounds U3O8.

These resource estimates were prepared by previous operators and are
based on close-spaced drilling, but have not been confirmed to be
compliant with National Instrument 43-101. All data has been reviewed by
Ron Hochstein, P.Eng., a Qualified Person pursuant to NI 43-101.

IUC is engaged in uranium exploration and production. It holds
significant uranium deposits in Mongolia and uranium and vanadium
deposits in the U.S. and a fully permitted 2,000 ton per day
uranium/vanadium mill near Blanding, Utah (one of only two operating
uranium mills in the U.S.), as well as uranium exploration properties in
the Athabasca Region in Canada. The Company also processes and recycles
uranium-bearing waste materials as an environmentally superior
alternative to direct disposal. In addition, the Company owns
approximately 58% of the outstanding shares of Fortress Minerals Corp.,
a public company engaged in precious and base metal exploration in
Mongolia.

Statements contained in this news release which are not historical facts
are forward-looking statements that involve risks, uncertainties and
other factors that could cause actual results to differ materially from
those expressed or implied by such forward-looking statements. Factors
that could cause such differences, without limiting the generality of
the following, include: risks inherent in exploration activities;
volatility and sensitivity to market prices for uranium and vanadium;
the impact of the sales volume of uranium and vanadium; competition;
reliance on income from processing uranium-bearing waste materials; the
impact of change in foreign currency exchange rates and interest rates;
imprecision in resource and reserve estimates; environmental and safety
risks including increased regulatory burdens; changes to reclamation
requirements; unexpected geological or hydrological conditions;
political risks arising from operating in certain developing countries;
a possible deterioration in political support for nuclear energy;
changes in government regulations and policies, including trade laws and
policies; demand for nuclear power; replacement of production and
failure to obtain necessary permits and approvals from government
authorities; weather and other natural phenomena; ability to maintain
and further improve positive labour relations; operating performance of
the facilities; success of planned development projects; and other
development and operating risks. Although IUC believes that the
assumptions inherent in the forward-looking statements are reasonable,
undue reliance should not be placed on these statements, which only
apply as of the date of this release. IUC disclaims any intention or
obligation to update or revise any forward-looking statement, whether as
a result of new information, future events or otherwise.

ON BEHALF OF THE BOARD

Ron F. Hochstein, President

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    International Uranium Corporation
    Sophia Shane
    Corporate Development
    (604) 689-7842
    (604) 689-4250 (FAX)
    www.intluranium.com