Macusani Yellowcake Inc.
TSX VENTURE : YEL
FRANKFURT : QG1

Macusani Yellowcake Inc.

September 30, 2010 10:41 ET

Macusani Yellowcake Announces High Grade Discovery at Kihitian Uranium Property, Peru

Discovery Hole Intersects 12.0 m Grading 0.92% U3O8 (39.4 ft Grading 18.3 lbs/ton U3O8) Including 3.0 m Grading 3.58% U3O8 (9.8 ft Grading 71.6 lbs/ton U3O8)

TORONTO, ONTARIO--(Marketwire - Sept. 30, 2010) - Macusani Yellowcake Inc. (the "Company") (TSX VENTURE:YEL)(FRANKFURT:QG1) is pleased to announce the initial assay results from the first drill hole of the Company's 99.5%-owned Kihitian uranium property on the Macusani Plateau, Peru. These results represent only the upper 100 metres of the first drill hole in the Chilcuno zone; the total depth of this hole is 200.0 metres.

The Company had previously announced that 297 m of existing adits in the Chilcuno zone of the Kihitian property had been channel sampled and returned an average of 0.626% U3O8 (12.52 lbs U3O8 per ton) from 146 samples (see press release dated January 13, 2010).

The Company's CEO, Peter Hooper, stated, "The latest results confirm that the Kihitian property contains some of the highest uranium grades drilled to date on our Macusani properties. With a radiometric anomaly that runs over 4 km of strike length, we are optimistic that a significant high grade, shallow uranium deposit can be outlined by further drilling."

KIHITIAN – CHILCUNO ZONE          
                 
1 Borehole PT-CH1-TV (Vertical)   EOH 200.00m    
                 
    From (m) To (m) Interval (m) U3O8(%) lb/t    
    22.00 34.00 12.00 0.92 18.33    
  Includes:          
    From (m) To (m) Interval (m) U3O8(%) lb/t    
    23.00 26.00 3.00 3.58 71.62    
  Note: The true widths of the above mineralized intersections remain to be determined.  

Based on the previous work performed by the Company's geologists on the adits, the Company believes that the high grade zone sits in a roughly horizontal orientation. However, more drilling will be required in order to determine the true widths of the mineralized intersections.

Quality Control and Analytical Procedures

Core samples have been crushed and representative samples analysed for Uranium (U) abundance and a suite of 40 elements. The necessary analytical quality control and assurance has been completed by insertion of reference material, duplicate samples and blank material. After crushing, the core is placed in sealed bags and shipped to the CIMM's preparation laboratories in Juliaca. Following the preparation stage, the sample pulps are sent to CIMM analytical laboratory in Lima where U and a suite of forty other elements are analysed using ICP-MS methodology.

CIMM Peru is an ISO certified assay laboratory. The program is designed to include a comprehensive assay quality control routine comprising the systematic use of standards, blanks and field duplicate samples. Secondary laboratories are used for check assaying.

Qualified Person

Mr. Ian Foreman, P.Geo., of Foremost Geological Consulting, an independent consultant to the Company, is a Qualified Person as defined under National Instrument 43-101, and has reviewed the scientific and technical data contained in this release.

About Macusani Yellowcake

Macusani Yellowcake Inc. is a Canadian uranium exploration company with over 24,000 hectares (240 km2) of mineral properties in south-eastern Peru, on the Macusani Plateau. The shares are traded on the TSX Venture Exchange under the symbol 'YEL' and on the Frankfurt Exchange under the symbol 'QG1'.

There are 59,881,284 common shares of Macusani Yellowcake Inc. outstanding.

This news release includes certain forward-looking statements concerning the future performance of Macusani's business, operations and financial performance and condition, as well as management's objectives, strategies, beliefs and intentions. Forward-looking statements are frequently identified by such words as "may", "will", "plan", "expect", "anticipate", "estimate", "intend" and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, competitive risks and the availability of financing, as described in more detail in the Company's recent securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward-looking statements and Macusani cautions against placing undue reliance thereon. Neither Macusani nor its management assume any obligation to revise or update these forward-looking statements.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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