International Uranium Corporation
TSX : IUC

International Uranium Corporation

August 23, 2005 09:23 ET

IUC Earns-In 75% Interest in Moore Lake Uranium Project

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 23, 2005) - International Uranium Corporation ("IUC" or "the Company") (TSX:IUC) announces that it has provided JNR Resources Inc. ("JNR") notice that IUC intends to exercise the balance of its option to earn a 75% interest in the Moore Lake Property by subscribing for 173,913 units of JNR at a price of Cdn $1.15 per unit. Each unit will consist of one common share and one share purchase warrant entitling IUC to purchase one additional common share of JNR at a price of Cdn $1.16 for a period of two years. The private placement is subject to regulatory approval.

Under the terms of the option agreement, IUC was required to spend $4 million in exploration on the Moore Lake Property and invest $400,000 in JNR by way of private placement over a period of four years commencing October 21, 2003. To date, IUC has met its exploration commitments and $200,000 of its investment commitments. Upon closing of the private placement, IUC will have earned its 75% interest in the Moore Lake Property.

The private placement proceeds will be used to further exploration on the Moore Lake Property. JNR and IUC will form a joint venture to continue the exploration and development of the Property.

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 is a significant shareholder in Fortress Minerals Corp., a public company engaged in precious and base metal exploration in Mongolia and Russia.

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. United States investors are advised that while the term "inferred" resources is recognized and required by Canadian regulations, SEC does not recognize that term. Investors are cautioned not to assume that all or any part of mineral deposits in this category will ever be converted into reserves.

ON BEHALF OF THE BOARD

Ron F. Hochstein, President

Contact Information

  • International Uranium Corporation
    Sophia Shane
    Corporate Development
    (604) 689-7842
    (604) 689-4250 (FAX)
    www.intluranium.com