Murchison United N.L

June 25, 2008 02:00 ET

Murchison Secures Strategic Alliance With Areva

                                                                                                  MURCHISON UNITED NL
                                                                                                      ACN 009 087 852
                                                                                       ASX CODE:  MUR,  AIM CODE: MUU
                                                                       Telephone: +618 9322 4071, Fax: +618 9322 4073
                                                                                           ASX, AIM and Media Release
                                                                                                         25 June 2008



*       Entered into a Cooperation Agreement with global industrial & nuclear energy conglomerate, Areva.

*       Areva to acquire initial 5% stake in Murchison through a placement of Shares each at A$ 0.135 per share.

*       Murchison  to  issue shares to Areva equivalent to a further 10% in consideration for access to  its  
        extensive geological database on Mauritania, including Bir En Nar, and provision of technical services, 
        equipment and personnel.

*       Exploration to be fast-tracked at priority Bir En Nar Uranium Project and other prospects in Mauritania.

*       Agreement to form Joint Venture on delineation of minimum 60m lbs inferred JORC resource within two years.

PERTH,  25  June 2008 - Australian-based international uranium exploration company, Murchison United NL (ASX: MUR,  AIM:
MUU),  is  pleased  to  announce  that  it  has  executed a wide-ranging Cooperation  Agreement  with  the  French-based
multinational industrial and nuclear energy giant, Areva NC ("Areva"), to accelerate the exploration and development  of
its portfolio of uranium projects in Mauritania, West Africa.

The  agreement  encompasses  a  strategic  investment in Murchison, access to  Areva's  extensive  uranium  database  in
Mauritania,  technical cooperation and support from the French-based company There is also an agreement to  establish  a
Joint Venture between Murchison and Areva if the exploration programme is successful in identifying a minimum of 60m lbs
of  JORC Code compliant inferred uranium resources, agreed between the parties, within the next two years.  The 60m  lbs
of JORC Code compliant inferred uranium resources is only an indicative target and there is no assurance that it will be

The agreement represents a significant endorsement of Murchison's uranium exploration assets and strategy in Mauritania,
in  particular  its rapidly emerging Bir En Nar Project, located in the northern Zednes Region, where  it  has  reported
outstanding exploration results over the past 12 months.

It  caps  a  successful  18  months for Murchison, during which it has repositioned as a  West  African-focused  uranium
explorer with over 15,000km2 of prospective tenure in Mauritania and Guinea.

Cooperation Agreement

The  agreement  between Murchison and Areva lays the foundations for a long-term strategic alliance  to  accelerate  the
exploration,  evaluation and development of Murchison's extensive uranium portfolio in Mauritania -which is  covered  by
Areva's detailed historical uranium database.

The key components are:

    *   An  agreement  for Areva to subscribe for 19,009,131 shares, being 5% of Murchison's issued  capital  at  a
        subscription price of A$ 0.135, equal to the 8-week Volume Weighted Average Price of Murchison's shares preceding the
        announcement date;
    *   The granting to Murchison of rights to access and utilise Areva's extensive geological database covering the
        Republic of Mauritania including Murchison's tenement holdings, and the provision by Areva of equipment, technical
        services and personnel to assist in accelerating Murchison's current exploration programs. The consideration for this
        will be the issue to Areva of shares equivalent to a further 10% stake in the Company. This will result in a further
        39,919,175 new Murchison shares being issued to Areva.

    *   An agreement to establish a Joint Venture between Areva and Murchison if exploration during the 2-year period
        after signing the agreement delineates a minimum of 60m lbs of uranium JORC inferred Resources;

    *   It is envisaged that Areva would earn an initial interest in the Joint Venture on commercial terms prevailing
        at the time based on internal valuation and market valuations and would be able to increase this stake during the pre-
        feasibility phase and with the opportunity to eventually increase its interest to 100% at exploitation  time  on
        commercial terms prevailing ;

    *   Areva  will also have the option to acquire 100% marketing rights on any future production from  the  Joint
        Venture tenements.

Under  the  proposed  Joint  Venture  arrangements, it is envisaged that Areva  will  conduct  the  pre-feasibility  and
feasibility  studies  and become the operator of any future mining operation. Therefore, Areva  is  committed  from  the
agreement to stay involved in the project for a minimum of 2 years, corresponding to the exploration phase.

The  placing  of  shares  in Murchison with Areva in consideration for the database access and provision  for  technical
services  may  require the approval of existing Murchison shareholders. If so, the Company will convene an Extraordinary
General Meeting to obtain this approval as soon as practicable.

About Murchison United

Murchison  United  NL  is  an  Australian-based company whose principal activity is minerals  exploration.  The  company
currently  has  uranium  exploration  projects in Mauritania and Guinea in West  Africa  and  copper  interests  in  the
Millennium copper leases in Cloncurry, Queensland and the Maroochydore copper project in Western Australia.

Murchison  has  secured  an  extensive portfolio of uranium exploration projects comprising  some  15,400km2  of  highly
prospective  tenements  in  Mauritania and Guinea, West Africa. Its objective is to delineate  significant  new  uranium
deposits within these under-explored terrains.

The  Company  recently  confirmed the significant potential and prospectivity of the Bir En Nar Project  in  Mauritania,
after  announcing final downhole radiometric logging results, including further significant high-grade results from  its
recently completed maiden RC drilling program.

26  of  the  38  holes  tested  returned intercepts calculated at greater than 1,000ppm  eU3O8.  Seven  holes  contained
intercepts  exceeding  5,000ppm eU3O8, with a maximum intercept of 1.55m at 18,280ppm eU3O8. Murchison  considers  these
results to be very encouraging and confirm the prospectivity for uranium mineralisation.

The  Bir  En Nar prospect is a 900 metre long radioactive zone extending 50-70 metres in width and following a  tectonic
structure in a NW-SE direction. A smaller parallel zone occurs a few hundred metres to the SW.

The  permit  areas  are located in the north of the country near the town of Bir Moghrein and at Bir En  Nar  in  Zednes
region.  These  were  originally  identified by the Company's Technical Director, Mr  Bosse  Gustafsson,  from  a  study
commissioned by the World Bank and further refined from aeroradiometric data highlighting the region's prospectivity for
uranium occurrences.

Fig.1 Location of Murchison United's exploration permits in Mauritania (to view image, please open the following link in
a new window)

In Guinea, the Company is scheduled to conduct a follow-up 5,000m diamond drilling program at Firawa prospect in Guinea,
in  September 2008 following the wet season, targeting a JORC compliant resource estimate to follow up initial  drilling
carried out in 2007. Encouraging results of up to 1,325ppm U3O8 were returned from drilling at Firawa last year.

Commenting  on  the  announcement, Murchison United's Managing Director, Mr Mark Reilly,  said:  "We  are  delighted  to
announce  this  landmark agreement with Areva, which represents the most significant development in  Murchison's  recent
history and a key turning point for the Company."

"Importantly, the agreement will give us access to Areva's extensive database on uranium mineralisation in Mauritania as
well  as the support of an experienced and fully equipped Areva technical team including an Exploration Project Manager,
Resource & Reserves Manager and drilling expert," Mr Reilly continued.

"Areva's  corporate predecessors have undertaken a significant amount of historical exploration activity in  Mauritania,
including  over  our  tenements, and their extensive database contains a vast amount of invaluable  information  on  our
exploration projects and other uranium prospects in the country.

"This will give us the additional technical capacity to really step up exploration activities with a view to delineating
a  substantial JORC Code compliant resource, initially at Bir En Nar, possibly during the second half of this year,"  he

"Areva  is a leading global expert in nuclear energy and a major global multinational corporation," Mr Reilly continued.
"We  are  truly  delighted to have secured their involvement in our West African uranium exploration  activities,  which
represents a major endorsement of the quality of our projects and our team, and a vindication of the strategic direction
we have taken over the past two years.

"Importantly,  Areva  has  the  technical capacity and funding capabilities to rapidly advance  and  bring  new  uranium
projects into production, and this will prove to be a major advantage for Murchison moving forward," he added.

Following  the Cooperation Agreement, Murchison also confirmed today that it intended to announce a proposed  change  of
name shortly to more accurately reflect its focus as an emerging West African uranium company.

Mark Reilly
Managing Director

For further information contact:

Mark Reilly, Managing Director
Murchison United N.L.                     Tel: +618 9322 4071

Ewan Leggat/Laura Littley
Fairfax I.S. PLC                          Tel: +44 20 7598 5368

Stuart Laing
RFC Corporate Finance Ltd                 Tel: +618 9480 2506
(AIM Nominated Adviser to the Company)

Jos Simson/Ed Portman
Conduit PR                                Tel : +44 20 7429 6603


The  information in this report that relates to exploration results in West Africa is based on information  compiled  by
Mr.  Bosse  Gustafsson,  who  is  a member of the European Federation of Geologists a Recognised  Overseas  Professional
Organisation  ("ROPO"). Mr Bosse Gustafsson is a full time Technical Director of Murchison United NL and is  responsible
for  exploration activities in Mauritania and Guinea. Mr Gustafsson has sufficient experience, which is relevant to  the
style  of  mineralisation and the type of deposit under consideration and to the activity, which he  is  undertaking  to
qualify  as  a  Competent  Person as defined in the 2004 Edition of the 'Australian Code for  Reporting  of  Exploration
Results, Mineral Resources and Ore Reserve'. Mr Gustafsson consents to the inclusion in this report of the matters based
on their information in the form and context in which it appears.

Down  hole  gamma  logging/probing of drill holes provides a powerful tool for uranium companies  to  explore  for,  and
evaluate, uranium deposits. Such a method measures the natural gamma rays emitted from material surrounding a drill hole
out  to  around 0.5 metre from its centre - the gamma probe is therefore capable of sampling a much larger  volume  than
that  which  would  normally  be  recovered from a core or RC hole. These measurements  are  used  to  estimate  uranium
concentrations with the commonly accepted initial assumption being that the uranium is in (secular) equilibrium with its
daughter products (or radio-nuclides) which are the principal gamma emitters. If uranium is not in equilibrium (viz.  in
disequilibrium) - as a result of the redistribution (depletion or enhancement) of uranium and/or its daughter products -
then  the  true  uranium  concentration in the holes logged using the gamma probe will be higher  or  lower  than  those
reported in the announcement.

Total  count  gamma  logging does not account for energy derived from thorium and potassium but  is  calibrated  on  the
uranium  band  and  factor applied to account for the average effect of thorium and potassium and  thus  the  result  is
expressed  as  an equivalent value or ppm eU308. The logging programme was undertaken by Poseidon Geophysics  (Pty)  Ltd
utilising  an  Auslog  Logging  System using instruments calibrated at Pelindaba, South Africa,  an  IAEA  accepted  and
approved  standard  facility. Data was converted from raw counts per second of natural gamma rays  to  eU3O8  using  the
calibration constant obtained from measurements made at the Pelindaba calibration borehole. Poseidon Geophysics  carried
out  regular  checks  to  validate  the  accuracy of probe data using a test  hole,  BNR14,  located  on  site.  Uranium
mineralisation  grades  through  this report annotated with a sub-prefix 'e' have been reported  as  uranium  equivalent
grades derived from down-hole gamma ray logging results and should be regarded as approximations only.

About Areva

More about

With  manufacturing  facilities in 43 countries and a sales network in more than 100 countries, AREVA  offers  customers
reliable technological solutions for CO2-free power generation and electricity transmission and distribution. We are the
world  leader  in  nuclear  power and the only company to cover all industrial activities  in  this  field.  Our  65.000
employees  are committed to continuous improvement on a daily basis, making sustainable development the focal  point  of
the  group's  industrial  strategy. AREVA's businesses help meet the 21st century's greatest challenges:  making  energy
available to all, protecting the planet, and acting responsibly towards future generations.


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