Titan Uranium Inc.

Titan Uranium Inc.

December 23, 2008 15:55 ET

Titan Uranium Inc. 2008 Exploration Highlights and Corporate Update

SASKATOON, SASKATCHEWAN--(Marketwire - Dec. 23, 2008) - Titan Uranium Inc. ("Titan" or the "Company") (TSX VENTURE:TUE)(FRANKFURT:T4X), a North American generative explorer, is pleased to provide the Company's 2008 exploration highlights and corporate update. Exploration expenditures in 2008 totaled approximately Cdn $10.5 million and included 9,244 metres of diamond drilling. Highlights from exploration work carried out on the Company's Athabasca and Thelon properties are as follows:

Athabasca Basin

Sand Hill Project (Sand Hill Lake, Rook II properties): On April 11, 2008 the Company signed an agreement with Vale Exploration Canada, a wholly-owned subsidiary of Companhia Vale do Rio Doce (Vale), whereby Vale can acquire a 60% working interest in the Company's Sand Hill project by funding Cdn $12,000,000 of exploration over five years. In 2008, exploration consisted of drilling in seven holes (1,290 metres). Extensive clay alteration was intersected in the sandstone rocks. Elevated uranium and boron values were observed. Two holes (714 metres) were drilled on Rook II; however, no significant radioactivity was intersected. Vale agreed to accelerate expenditures and in late summer carried out soil and twig geochemical sampling over the prime target area on Sand Hill Lake. Several weakly anomalous areas were defined. Many areas on the property displayed anomalous uranium values in sediments sampled as part of a lake sediment survey. Ground geophysical surveys were completed in the fall. Follow-up diamond drilling and additional ground geophysical surveys are planned for 2009.

Virgin Trend Project (Virgin Trend, Knight properties): On May 23, 2008 the Company signed an agreement with Japan Oil, Gas and Metals National Corporation (JOGMEC) whereby JOGMEC can acquire an undivided 50% working interest in the Company's Virgin Trend project by funding Cdn $9,000,000 of exploration over three years. An airborne Megatem and magnetic survey was completed in late 2007 and the results interpreted in early 2008. The survey located a deep conductor in the south part of the project. Exploration carried out in 2008 included a Bell Aerospace Airborne Gravity Gradiometer survey. In addition, a ground electromagnetic (EM) survey was conducted using JOGMEC's state of the art, deep-penetrating Squitem system. Geophysical data are being processed and interpreted and will be used in conjunction with other exploration results to choose targets to be drill-tested in early 2009.

Border Block Project (Maybelle River, Gartner Lake, King, Castle South properties): On November 12, 2008 the Company signed a second agreement with JOGMEC whereby JOGMEC can acquire an undivided 50% working interest in the Company's Border Block project by funding Cdn $6,000,000 of exploration over four years. Prior to signing the agreement, Titan completed an extensive program of ground geophysical surveys on the Border Block project to better define airborne anomalies identified by airborne EM surveys. Numerous basement anomalies were identified and interpreted to reflect graphitic metasedimentary rocks. Several targets were drill-tested in late 2008 and results are pending.

Thorburn Lake Property: In 2008, four holes (1,573 metres) were drilled to test a conductor identified by a 2007 ground time domain electromagnetic (TDEM) survey. All four holes intersected clay alteration and fractured, poorly consolidated sections of sandstone rocks. Hole TBN-08-02 intersected anomalous uranium (2.87 to 20.9 ppm uranium) in the last 12 metres of sandstone rocks located above the unconformity. Hole TBN-08-04 intersected 0.057% U3O8 (487 ppm uranium) over 0.6 metres at the unconformity. The alteration observed in the basal sandstone rocks, the bleaching and clay alteration in the basement rocks, combined with the anomalous uranium values and the uranium mineralization at the unconformity, indicate the presence of a uranium mineralizing hydrothermal system.

Carlson Creek Property: In 2008, three holes (1,631 metres) were drilled to follow up on interesting results recorded during the Company's 2007 drill program. Two of the holes intersected graphitic pelitic schist, which is the probable source of the conductor identified in a 2006 versatile time domain electromagnetic (VTEM) survey. Hole Drill hole CC-08-04 intersected fractured and bleached zones in the sandstone rocks at depths of 350 and 400 metres above the unconformity. Composite chip samples in these zones contained 2.22 and 1.87 ppm uranium, respectively. These values are 4 to 5 times higher than normal background for the sandstone rocks and are typical values observed in altered zones above unconformity type uranium deposits.

Fleming Property: In 2008, seven drill holes (1,689 metres) were completed to test anomalies defined by a 2007 airborne EM survey. Three of the four holes intersected anomalous levels of uranium and/or boron in the sandstone rocks. Three holes did not reach the target depth.

R-Seven Project (R-Seven, Rook I properties): In February 2008, Titan staked four claims (13,894 hectares) along the southern boundary of the Rook I property to cover the potential for basement style uranium mineralization in this area. Ur-Energy Inc. elected not to continue its earn-in on the R-Seven Project Option Agreement effective March 17, 2008.

Keefe Lake Property: An airborne VTEM survey was completed in 2008.

Thelon Basin

Thelon Project (Nunavut properties): In the 2008 summer field program, 12 holes (1,244 metres) were drilled to test six targets which represent the interpreted bedrock sources of glacially dispersed uranium-bearing boulder trains. The best drill hole intersection from the 2008 drill campaign was hole R22-08-01 which recorded 0.19% U3O8 over 0.40 metres. Titan carried out prospecting on the claims staked in 2007 and on selected other areas. Numerous boulders with anomalous radioactivity were identified and 62 were sent for analysis. The best results were from the RAD113 claim where 4 boulders were analyzed and recorded a high value of 0.24% U3O8. Additionally, 25 bulk till samples were collected in the vicinity of magnetic anomalies and analyzed for kimberlite indicator minerals. No kimberlite indicator minerals were identified. The Thelon Project is the subject of an option agreement with Mega Uranium Ltd. (Mega), with Titan as operator. With its contribution of Cdn $5,000,000 in exploration expenditures in 2007 and 2008, Mega has fulfilled its earn-in obligations for a 51% working interest in the project.

Corporate Update

As a function of significant adverse changes in the business climate and a significant decrease in Titan's market capitalization compared to the carrying value of its resource properties, the Company wrote-down its resource properties by Cdn $44,500,000 to reflect the results of an impairment analysis on the Athabasca Basin properties. The impairment analysis was performed based on estimated future cash flows from relevant exploration earn-in agreements on Athabasca Basin properties discounted to present value. The analysis and subsequent write down was required based on the interpretation of Canadian Generally Accepted Accounting Principles (GAAP) regarding net recoverable value and was not influenced by the exploration activities performed to date.

"Titan's growth strategy in 2008 focused on advancing exploration projects and attracting strategic partners," according to President Brian Reilly. "The results of our exploration activities to date are encouraging and several of our projects exhibit many of the elements typically associated with unconformity-type uranium deposits; however, much more work is required. We have secured sustainable funding to the future and will finish the year with approximately $5,500,000 in our treasury. Titan will be an active explorer in 2009 and should be well-positioned when the financial markets rebound."

J. Allan McNutt, P. Geo., M.A.Sc., is Titan's Qualified Person (as defined by National Instrument 43-101) for uranium projects and is responsible for the technical information contained in this release.

About Titan Uranium Inc.

Titan's growth strategy is driven by advancing exploration projects to discovery in the proven Athabasca and prospective Thelon basins. Titan has gained market recognition for its ability to attract strategic partners to participate in exploration on its properties by virtue of its 1.5 million acre land position and technical expertise. In 2008, Japan Oil, Gas and Metals National Corporation (JOGMEC) signed two letters of agreement with Titan to explore the Company's Virgin Trend and Border Block projects as an element of its mandate to seek a stable supply of natural resources for Japan. In April 2008, Vale Exploration Canada Inc. (VEC), a wholly-owned subsidiary of Companhia Vale do Rio Doce (Vale), the world's second largest mining company by market capitalization, signed an agreement with Titan on the Sand Hill Lake/Rook II project. Titan also has a major joint venture project underway in the Thelon Basin with Mega Uranium Ltd. Additional partnerships are at the planning stage.

Partners of Titan have the option to expend Cdn $22.5 million in exploration programs managed by Titan between 2009 and 2012. The partners can earn a portion of Titan's interest in these strategically located properties in the Athabasca and Thelon basins. Optionees of Titan properties spent Cdn $6 million on exploration programs managed by Titan in 2008.

Titan is well-financed and ideally positioned to emerge as a pre-eminent explorer in the uranium industry. Based in Saskatoon, Saskatchewan, Titan boasts proven senior leadership, a highly experienced technical team and a dominant land position in Canada's world-class uranium districts.


Brian A. Reilly, President

This News Release includes certain "forward-looking statements". All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of Titan Uranium, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Titan Uranium's expectations are exploration risks detailed herein and from time to time in the filings made by Titan Uranium with securities regulators.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

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