Uruguay Mineral Exploration Inc.

Uruguay Mineral Exploration Inc.

October 16, 2006 12:45 ET

Stock Options Granted

LONDON, UNITED KINGDOM--(CCNMatthews - Oct. 16, 2006) - Uruguay Mineral Exploration Inc. ("UME") (TSX VENTURE:UME) (AIM:UGY) announces on 16 October 2006 the grant of an aggregate of 570,000 stock options to Directors and Officers, all of which are exercisable at a price of CDN$ 3.90 per Common Share (the close price of 12 October 2006), on or before October 12, 2011. These options were granted on October 13, 2006 and vest in three equal parts on October 12, 2007, October 12, 2008 and October 12, 2009. The exercise is not subject to achievement of any performance conditions.

The following Directors and Officers granted the following stock options:

George Schroer 200,000 options
David Fowler 200,000 options
John Sadek 100,000 options
Julio Porteiro 50,000 options
Patricia Rodrfguez 20,000 options


Editors note: Uruguay Mineral Exploration Inc. is a gold producer and exploration company focussed on identifying and developing mineral opportunities in Uruguay. UME is a fully integrated mining company, possessing the skills necessary to explore and develop its discoveries. The Company operates the only producing gold mine in the country (San Gregorio), and is also the leading mineral exploration company in Uruguay having assembled an exploration portfolio based on gold, base metals (copper, nickel, lead, zinc) and diamond prospects. In the first half of 2003, the Company discovered the Arenal deposit, currently the largest known gold resource in Uruguay.

Uruguay Mineral Exploration Inc. is quoted in Canada (TSXV) and London (AIM) and Collins Stewart Limited is its Nominated Adviser and Broker.

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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