U3O8 Corp.

U3O8 Corp.

October 15, 2010 09:46 ET

U3O8 Corp. Completes $7.2 Million Private Placement

TORONTO, ONTARIO--(Marketwire - Oct. 15, 2010) -


U3O8 Corp. (TSX VENTURE:UWE) (U3O8 Corp. or the "Company") is pleased to announce the closing of a fully subscribed brokered private placement previously announced on September 22, 2010 and September 29, 2010 (the "Offering). U3O8 Corp. has issued 23,989,100 units (the "Units") at a price of $0.30 per Unit for gross proceeds of $7,196,730. The Offering was led by Dundee Securities Corporation and included PowerOne Capital Markets Limited and Canaccord Genuity Corp. (the "Agents"). Insiders of U3O8 Corp. purchased, directly or indirectly, approximately $2.2 million of the Offering.

Each Unit consists of one common share and one-half of one transferable common share purchase warrant. Each full warrant is exercisable into one common share for a period of two years after the Closing Date at a price of $0.45 per common share. In the event that at any time after February 15, 2011, the closing price for U3O8 Corp's common shares is greater than $0.70 per share for a period of 20 consecutive trading days, the Company may accelerate the expiry date of the warrants to the 30th day after notice of the accelerated expiry date has been given by U3O8 Corp.

As partial consideration for their services in connection with the Offering, the Agents received broker warrants entitling them to acquire, in the aggregate, up to 1,239,342 common shares of U3O8 Corp. at an exercise price of $0.45 per share until October 14, 2012.

The securities issued under this financing will be subject to a four-month hold period from the Closing Date of the Offering, expiring February 15, 2011. U3O8 Corp. intends to use the net proceeds to advance the exploration and development of its projects in Guyana, Colombia and Argentina and for general working capital purposes.

"We are pleased to have strengthened our balance sheet, which allows us to continue to advance our lead projects in Colombia, Guyana and Argentina with the potential to expand our resource portfolio in the near-term," said Dr. Richard Spencer, U3O8 Corp's President and CEO. "An initial drill program is underway on the Berlin Project in Colombia with the goal of advancing the project for potential National Instrument 43-101 ("NI 43-101") resource estimation in 2011. Scout drilling continues in Guyana with the aim of further increasing the potential size of the Kurupung uranium resource. In addition, extensive trenching in the Laguna Salada Project in Argentina continues to identify additional mineralization towards completion of a potential NI 43-101 resource estimate by the end of 2010."

This news release does not constitute an offer to sell or solicitation of an offer to sell any securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

About U3O8 Corp.

U3O8 Corp. is a Toronto-based exploration company focused on exploration of uranium and associated commodities in South America. Additional information on U3O8 Corp., each material project and technical reports are available on the company's web site at www.u3o8corp.com and on SEDAR at www.sedar.com.

Forward-Looking Statements

Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of U3O8 Corp., including, but not limited to, the impact of general economic conditions, industry conditions, volatility of financial markets and commodity prices, risks associated with the uncertainty of exploration results and estimates and that the resource potential will be achieved on exploration projects, currency fluctuations, dependence upon regulatory approvals, and the uncertainty of obtaining additional financing and exploration risk. There is no assurance that the Kurupung Project, Berlin Project and Laguna Salada Project will add to U3O8 Corp's resource base in the short-term, or at all. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.

Neither the 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.

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