Titan Uranium Inc.

Titan Uranium Inc.

October 01, 2009 15:21 ET

Titan Uranium Inc. to Acquire 100% Interest in Sheep Mountain Property

SASKATOON, SASKATCHEWAN--(Marketwire - Oct. 1, 2009) - Titan Uranium Inc. (TSX VENTURE:TUE)(FRANKFURT:T4X) ("Titan") is pleased to announce that it has closed the previously announced agreement (the Agreement) with Uranium One Inc. ("TSX: UUU") to acquire the 50% interest held by Uranium One in the Sheep Mountain property, Fremont County, Wyoming. This will result in Titan holding a 100% interest in the property which hosts an NI 43-101 compliant Inferred Resource of 15.6 million pounds of U3O8. In conjunction with this transaction, Titan will acquire Uranium One's 50% interest in the Hollie claims, Emery County, UT and transfer its 50% interest in the Breccia Pipe project, AZ and the Burro Canyon project in Colorado to Uranium One.

The terms of the agreement include:

- An initial cash payment of US$850,000 for Sheep Mountain and for the Hollie claims;

- A payment of US$2,000,000 if the month-end spot uranium price reported by Ux Consulting Company exceeds US$65.00 per pound within three years of the closing date, payable within six months;

- A further payment of US$4,000,000 if the month-end spot uranium price reported by Ux Consulting Company exceeds US$85.00 per pound within three years of the closing date, payable within twelve months;

- Titan will assume the full amount of the reclamation bond for the property on closing (total bond amount is US$2.1M of which Titan has already contributed 50%);

- A credit of US$500,000 payable to Titan on closing, as payment for the transfer of Titan's 50% interest in the Breccia Pipes project in Arizona and in the Burro canyon project in Colorado to Uranium One; and

- The termination of the existing Joint Venture between the two companies.

Chris Healey, COO for Titan, P.Geo is the Qualified Person responsible for the technical content of this release.

About Titan Uranium Inc.

Titan has gained market recognition for its ability to attract strategic partners to participate in exploration on its properties in Canada by virtue of its 1.6 million acre land position and its technical expertise. The option agreement participants of Titan include: Japan Oil, Gas and Metals National Corporation (JOGMEC), Vale Exploration Canada Inc. (VEC), and Mega Uranium Ltd. These optionees are expected to contribute $4.7 million in exploration programs managed by Titan in 2009.

Titan recently completed a business combination with UPC (Titan Uranium Inc. PR- August 4, 2009) which adds a number of highly prospective properties, mainly in the United States, to Titan's portfolio.


Brian A. Reilly, President


Certain information contained in this news release constitutes forward-looking information within the meaning of applicable securities legislation (collectively, "forward-looking statements"). All statements in this news release that are not statements of historical fact (including statements containing the words "expects", "does not expect", "plans", "anticipates", "does not anticipate", "believes", "intends", "estimates", "estimates", "projects", "potential", "scheduled", "forecast", "budget" and similar expressions) should be considered forward-looking statements. All such forward-looking statements are subject to important risk factors and uncertainties, many of which are beyond Titan's ability to control or predict. A number of important factors could cause actual results or events to differ materially from those indicated or implied by such forward-looking statements.

Titan assume's no obligation to update the information in this communication, except as otherwise required by law. Additional information identifying risks and uncertainties is contained in Titan's filings with the various provincial securities commissions which are available online at www.sedar.com. Forward-looking statements are provided for the purpose of providing information about the current expectations, beliefs and plans of the management of each of Titan relating to the future. Readers are cautioned that such statements may not be appropriate for other purposes. Readers are also cautioned not to place undue reliance on these forward-looking statements, that speak only as of the date hereof.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts 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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