Macusani Yellowcake Inc.
TSX VENTURE : YEL
FRANKFURT : QG1

Macusani Yellowcake Inc.

October 20, 2010 19:15 ET

Macusani Yellowcake Announces Proposed Private Placement

TORONTO, ONTARIO--(Marketwire - Oct. 20, 2010) -

THIS PRESS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Macusani Yellowcake Inc. (the "Company") (TSX VENTURE:YEL) (FRANKFURT:QG1) announced today that it has engaged M Partners Inc. (the "Agent") to act as lead agent in connection with a private placement offering, to be completed on a marketed best efforts agency basis, to raise gross proceeds of up to Cdn$3.0 million from the sale of up to 12,000,000 units ("Units") priced at C$0.25 per Unit. Each Unit will consist of one common share and one common share purchase warrant. Each whole common share purchase warrant will be exercisable to acquire one common share in the capital of the Company at a price of C$0.35 for a period of 24 months from the closing of the private placement. All securities issued in the private placement will be subject to a 4-month hold period in Canada.

The offering is subject to customary conditions including, but not limited to, the receipt of all necessary corporate and regulatory approvals, including the approval of the TSX Venture Exchange.

Net proceeds of the offering will be used to fund further exploration of the Company's properties on the Macusani Plateau, Peru, and for working capital and general corporate purposes.

The private placement is expected to be completed on or about November 4, 2010.

The Agent will receive a cash commission equal to 7.0% of the gross proceeds raised in this private placement and compensation options entitling the Agent to purchase such number of Units as is equal to 7.0% of the aggregate number of Units sold pursuant to the private placement. Each compensation option will entitle the agent to purchase one Unit at an exercise price equal to the issue price of the Units for a period of 24 months following the closing date.

The securities being offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States in the absence of registration or an applicable exemption from the registration requirements. This press release does not constitute an offer to sell or the solicitation of an offer to purchase securities in the United States.

About Macusani Yellowcake

Macusani Yellowcake Inc. is a Canadian uranium exploration company with over 24,000 hectares (240 km(2)) 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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