Laramide Resources Ltd.

Laramide Resources Ltd.

August 21, 2006 12:30 ET

Laramide Annouces New US Uranium Joint Venture

TORONTO, ONTARIO--(CCNMatthews - Aug. 21, 2006) - Laramide Resources Ltd. (TSX:LAM) is pleased to announce that it has entered into a joint venture agreement with Power Reserves Group LLC, a private US based uranium company, to explore for roll-front style uranium deposits in the western United States. This deposit type is typically amenable to in-situ leaching (ISL) production techniques and thus is a priority target of many of the companies currently exploring in the United States.

The initial area targeted by the new joint venture - which will be known as the Sioux Uranium Project - is located in a well known western US Basin that hosts other identified uranium deposits. The exact location of the Project is being kept confidential at present as the joint venture is in the process of a major land acquisition and leasing program. An initial exploration program will follow and will consist of a minimum of 50 drill holes on widely spaced fences targeting the host sandstone layer. The target identified is considered highly prospective for hosting roll-front uranium mineralisation based on available public information from both extensive oil and gas drilling and water well tests. Target depth of the drill holes is expected to be 300 to 600 feet and permitting for the drilling is well advanced with a target of drill start-up in the fourth quarter of 2006.

Terms of the joint venture allow for Laramide to earn up to a 70% participating interest by funding the Sioux Uranium Project through feasibility. The initial exploration earn-in is US $2.5 million over three years for a 51% interest with cash payments totalling US $600,000 required over the same period. The first year's commitment is a $150,000 cash payment on signing (paid) and a work commitment of US $750,000 which is sufficient to fund the initial 50 hole drilling program. An additional $200,000 will be advanced to the joint venture and is dedicated to the expansion of the land position. Good progress on advancing Laramide's other uranium interests, including its' other US uranium properties in Utah and New Mexico, is being made and will be included in the disclosure provided in connection with the release of Laramide's second quarter financial results.

Laramide Resources Ltd. ("Laramide") is a Toronto-based resource company specializing in the acquisition and development of advanced stage mineral properties. Laramide has a diverse portfolio of assets, all of which are leveraged to commodity fundamentals. The Company's lead project is the Westmoreland Project, Queensland, Australia.

This press release contains forward-looking statements. The actual results could differ materially from a conclusion, forecast or projection in the forward-looking information. Certain material factors or assumptions were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information.

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

Contact Information

  • Laramide Resources Ltd.
    Marc C. Henderson
    Toronto, Canada +1 (416) 599 7363
    Laramide Resources Ltd.
    Peter Mullens
    VP Exploration/Corporate Development
    Brisbane, Australia +61 (7) 3831 3407