Standard Uranium Inc.
TSX VENTURE : URN

Standard Uranium Inc.

January 10, 2006 15:43 ET

Standard Uranium Inc. Announces Completion of Acquisition of Uranium Assets in Texas

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 10, 2006) -

NOT FOR DISSEMINATION TO THE US OR TO US NEWSWIRE SERVICES

Standard Uranium Inc. (TSX VENTURE:URN) (the "Company" or "URN") is pleased to provide the following up date on the concurrent Everest Exploration Inc. ("EEI") property acquisition transaction and progress on the proposed business combination with Energy Metals Corporation ("EMC").

The transaction with EEI and Everest Resources Company ("ERC") that the Company previously announced on October 11, 2005 (the "Transaction") has been completed. URN South Texas Project, Ltd., an indirectly wholly owned subsidiary of the Company, has entered into a 99%-1% joint venture, South Texas Mining Venture, LLP ("JV"), wherein URN South Texas Project, Ltd. holds a 99% interest and EEI holds a 1% interest. The initial cash contributions to the JV permitted the JV to acquire the Hobson processing plant, the associated satellite mining facilities and a Texas database from EEI (collectively, the "Everest Assets") as well as certain leases covering the Palangana mining property from ERC (the "Palangana Property"). The aggregate cash contribution made on behalf of URN South Texas Project, Ltd. totalled $5,205,000 US. The JV acquired the Everest Assets from EEI and the Palangana Property from ERC. EEI will be the operator of the production facilities and will receive a net production royalty of US$0.75 per pound on the first 8,000,000 pounds of uranium oxide produced from the Hobson plant.

The funding for the Transaction was made through EMC as an instrumental part of the planned business combination. The $5,205,000 US payment was effected pursuant to a loan agreement dated January 5, 2006 with EMC. The loan, evidenced by way of a secured convertible debenture of up to $7,000,000US issued by the Company to EMC, has an interest rate of 4% per annum and is secured, which includes security against the Everest Assets and the Palangana Property. The remaining proceeds available under the convertible debenture will be advanced upon providing notice. Certain portions of the principal amount of the Loan ("Conversion Portion") shall be, from time to time, convertible into common shares of URN at the rate of $1.45 per common share of URN (the "Conversion Shares") upon 60 days written notice to URN from EMC (the "Exercise Notice"). The Conversion Portion cannot exceed the dollar value equal to $1.45 multiplied by 19.5% of the common shares of URN issued and outstanding on the date of the Exercise Notice ("Maximum Conversion"), such that the maximum number of Conversion Shares to be issued pursuant to the Exercise Notice does not exceed 19.5%. However, upon receipt of the Exercise Notice, URN shall have the option, within the 60 day notice period, of (i) prepaying the Conversion Portion and all outstanding interest; or (ii) issuing the Conversion Shares. Any shares issued on the conversion of the debenture will be subject to a four month hold period from January 5th 2006.

The Company and EMC report that work is progressing satisfactorily towards the business combination and that the proposed structure for this arrangement is being finalized.

The Company and EMC consider that through South Texas Project, Ltd, the parties will begin the transition from that of uranium explorers to uranium producer. This as a consequence of the existing permitted production facilities and a proven ISL uranium producing property position in south Texas.

The Company and EMC are advancing the business combination between the two entities that was previously announced on November 10, 2005. The parties have completed their initial due diligence procedures in accordance with the terms of the November letter of intent and are currently preparing the various required documents to obtain all the necessary approvals, including shareholder approval.

This press release is not an offer of securities for sale in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended. Securities may not be offered or sold in the United States absent registration or an exemption from registration.

The TSX Venture Exchange conditionally approved the loan and the Transaction subject to filing final documentation.

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

Contact Information