Macusani Yellowcake Inc.
TSX VENTURE : YEL

Macusani Yellowcake Inc.

October 15, 2008 16:57 ET

Macusani Yellowcake Announces Private Placement to Homeland Uranium

TORONTO, ONTARIO--(Marketwire - Oct. 15, 2008) - Macusani Yellowcake Inc. (TSX VENTURE:YEL) ("Macusani") announced today that it has entered into an agreement with Homeland Uranium Inc. ("Homeland") for the purchase by Homeland of 7,619,047 units of Macusani at a price of $0.2625 per unit for proceeds to Macusani of approximately C$2 million. Each unit is comprised of one common share and 0.60 of a common share purchase warrant, with each whole warrant exercisable for a 24-month period to acquire an additional common share at a price of C$0.35 per share. Homeland is a Toronto-based unlisted public uranium exploration company with properties in the United States and Niger. Based on the 24,296,285 common shares of Macusani presently issued and outstanding, following completion of the placement Homeland would own approximately 23.9% of the number of common shares then outstanding and 33.4% if all warrants acquired in the private placement were exercised by Homeland.

In conjunction with the private placement, Macusani has agreed to grant to Homeland exclusivity rights until September 15, 2009 to negotiate and enter into an agreement respecting a business combination between the two companies. The exclusivity rights also preclude Macusani from soliciting other transactions regarding a change a control and provide Homeland with matching rights before Macusani may accept, approve or recommend an unsolicited change of control transaction.

The private placement is subject to all necessary regulatory and shareholder approvals, including the approval of the TSX Venture Exchange. All securities issued pursuant to the private placement will be subject to a 4-month hold period.

Macusani proposes to use the net proceeds from this offering to fund further exploration of the company's Colibri II-III mineral concessions located on the Macusani plateau in Peru, and for working capital and general corporate purposes.

About Macusani Yellowcake Inc.

Macusani controls over 20,000 hectares (2,000 km2) of mineral exploration properties prospective for uranium on the Macusani plateau in Peru.

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

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