Majescor Resources Inc.
TSX VENTURE : MJX

Majescor Resources Inc.

August 24, 2006 08:30 ET

Majescor Spins-out its Baker Lake Uranium Rights in the Thelon Basin for a Major Stake in a New Uranium Company-Airborne Geophysical Survey to Commence

MONTREAL, QUEBEC--(CCNMatthews - Aug. 24, 2006) - Majescor Resources Inc. ("Majescor")(TSX VENTURE:MAJ) is pleased to announce that it has entered into an agreement with Uranium World Energy Inc. ("UWE"), a recently formed private company, whereby UWE can acquire a 100% interest in Majescor's Baker Lake uranium project, located 20 to 40 km south of the Kiggavik group of Uranium deposits, in southwest Nunavut.

The Baker Lake uranium project consists of two continuous claim blocks totaling 19 permits ("the property") owned by De Beers Canada Exploration Inc. ("De Beers"). Majescor has an option to earn up to an 80 % interest in the project from De Beers (see press release, October 25, 2005).

The terms of the transaction with UWE stipulate that Majescor agrees to sell and transfer its uranium rights to the property in exchange for the receipt of one million common shares of UWE upon signing of the agreement and a commitment by UWE to spend $400,000 in exploration on the property as well as issuing an additional one million common shares before December 31st, 2006. At this point UWE will be deemed to have earned a 50% interest in the property from De Beers. Uranium World Energy can further increase its interest in the project to 80% by spending another $240,000 in exploration and issuing another one million common shares to Majescor before December 31st, 2008. Majescor will own a total of three million shares of UWE once all the above conditions have been met. Plans are for UWE to go public through an Initial Public Offering on the TSX Venture exchange before the end of 2006.

The Baker Lake project is located approximately 50 km west of the town of Baker Lake, in the eastern Arctic area of Nunavut. It lies on the eastern margin of the Thelon Basin and it has the potential to support one or more basement-hosted uranium deposits including the breccia-type encountered at the Kiggavik group of uranium deposits to the North. The Thelon Basin also bears striking geological similarities to the prolific Athabasca Basin located 300 km to the southwest, in Saskatchewan. However, the Thelon Basin is relatively under-explored and it has not yet been systematically prospected using modern technologies as the bulk of the exploration was mostly reconnaissance work done in the uranium boom years of the 1970's and 1980's.

MPH Consulting Limited of Toronto has been retained by Majescor to conduct a comprehensive technical review of the historical Uranium exploration data for the Baker Lake area, as well as for the design of the 2006 exploration program. The geological compilation and analysis work has resulted in the identification of high priority areas across the property and the selection of 7 target blocks for deep-penetrating airborne geophysical surveying. The 7 blocks will be covered as part a broader 9,287 line-kilometre geophysical survey of De Beer's Uranium and Diamond permits at Baker Lake, to be implemented by Majescor in the next two weeks.

Majescor's President and CEO, Marc-Andre Bernier, states: "The spin-off of our uranium rights at Baker Lake to Uranium World Energy, as is the case of our recent acquisition of gold and base metals projects in Madagascar, is part of our strategy to create additional shareholder value by taking advantage of other mineral development opportunities in the areas of the world where we are actively seeking diamonds. Uranium has become a sought-after commodity as is reflected by its current price of $US47 per pound U3O8, a 30% increase over its record 2005 closing price of $US36. International uranium stocks are limited and new deposits must be found to meet future world demand. The Thelon Basin is one of those areas of Canada which holds much promise for new Uranium discoveries as it is being extensively explored and new exploration companies like UWE take on the challenge of bringing forth innovative exploration concepts and utilizing modern exploration methodologies".

This press release has been approved by Jacques Letendre, P.Geo, Principal Consultant and director of Majescor, acting as the "Qualified person" for the company under National Instrument 43-101.

About the Company:

Majescor is an aggressive exploration company with a large portfolio of diamond properties in Quebec, as well as projects in Nunavut, the Northwest Territories, Brazil and Madagascar, where the Company has also recently acquired new gold and base metal properties.

To find out more about Majescor Resources Inc. (TSX-V:MAJ), visit our website at www.majescor.com

This press release is available on the Majescor IR HUB for investor commentary, feedback and questions. Investors are asked to visit http://www.agoracom.com/IR/Majescor. Alternatively, investors are asked to e-mail all questions and correspondence to MAJ@agoracom.com where they can also request addition to the investor e-mail list to receive all future press releases and correspondence directly.

The TSX Venture Exchange does not accept responsibility for adequacy or accuracy of this release.

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