U3O8 Corp.
TSX VENTURE : UWE

U3O8 Corp.

April 20, 2011 06:45 ET

U3O8 Corp. Intersects 28m at 0.075% U3O8 at Accori North C in the Kurupung Project, Guyana

Mineralized Structure Poised for Infill Drilling to Potentially Add to NI 43-101 Resources

TORONTO, ONTARIO--(Marketwire - April 20, 2011) -U3O8 Corp(TSX VENTURE:UWE), a Canadian-based company, focused on exploration and resource expansion of uranium and associated commodities in South America, reports drill results that confirm the extent of a second uranium-bearing shoot at Accori North C, one of the nine consistently mineralized structures identified to date in the Kurupung Batholith in Guyana (Figure 1).

"Accori North C is one of the first consistently mineralized areas emerging in the southwest margin of the batholith, and underscores the growing size potential of the Kurupung uranium system," said Dr. Richard Spencer, U3O8 Corp's President and CEO. "With the confirmation of the width of a second shoot at Accori North C, this structure is scheduled to be one of the mineralized zones in the Kurupung to undergo infill drilling this year. Resource drilling is currently focused on the Aricheng C structure, towards the goal of increasing our current National Instrument 43-101 ("NI 43-101") resources to between 20 and 25 million pounds1 on the Kurupung Project by the end of 2011."

Table 1 – Assay Results for Accori North C

Summary of the principal mineralized intercepts cut in four bore holes (965m) completed in scout drilling of the Accori North C structure. The location of the bore holes referred to in the table is shown in Figure 2.

IntervalGrade
Bore Hole
Number

From
(m)

To
(m)
Interval
(m)
Estimated
true width
(m)

U3O8
%

U3O8
lb/st
911263528.20.0751.50
ACCON-C-021 116126108.10.1342.68
ACCON-C-022115 11943.20.1052.09
ACCON-C-023 No Significant Results
ACCON-C-024 No Significant Results
Note: lb/st is an abbreviation for pounds per short ton.1 short ton = 2,000lbs or 0.907 metric tonnes.

Potential quantity and grade are based on drill results that define the approximate length, thickness, depth and grade of the target area, but are considered conceptual in nature. To date, there has been insufficient exploration to define a mineral resource at Accori North C, and it is uncertain if further exploration will result in a mineral resource being defined in this area.

Mineralization at Accori North C

Scout drilling has confirmed the presence of two uranium-bearing shoots in the Accori North C structure; the shoots are 130 metres ("m") to 150m wide and are separated by a low-grade gap of 75m to 100m (Figure 3). Mineralization remains open at depth and there is good potential for additional shoots to lie along the eastern extension of the Accori North C structure. The concentration of uranium into shoots is a feature evident in other parts of the Kurupung Batholith, and is characteristic of albitite-hosted uranium deposits around the world.

Bore holes, ACCON-C-023 and ACCON-C-24, aimed to test the western extension of the Accori North C structure where it extends into a sedimentary sequence adjacent to the Kurupung Batholith which, due to its permeability and chemical reactivity, could constitute a prime host for uranium mineralization. Scout drilling encountered moderate alteration without significant uranium grades and no further drilling is planned for that target. All consistent uranium mineralization intersected in the Kurupung Project to date is located within the granites of the Kurupung Batholith.

Uranium mineralization at Accori North C is contained within a crackle breccia zone that is enclosed by an albite-chlorite-hematite-calcite alteration assemblage. The sheet-like breccia zone strikes east and dips to the south at an angle of between 70° and 85°. The mineralized breccia varies from approximately 2m to 34m in width.

A total of 24 bore holes for 5,209m, inclusive of the four bore holes from which results are reported in Table 1 above, have been drilled at Accori North C. Assay results for holes previously drilled at Accori North C were released on June 17, 2008, August 21, 2008 and May 20, 2009.

Exploration Potential of the Accori North C Structural Corridor

Most uranium drilled by U3O8 Corp. to date lies within weakly magnetic corridors within the magnetic Kurupung Batholith. Mineralization at Accori North C lies on one of the most conspicuous, weakly magnetic corridors in the batholith, the eastern extension of which is considered to be highly prospective. Several radiometric anomalies that lie along the weakly magnetic corridor are suspected to show where additional mineralized shoots come close to surface beneath the clayey soil cover (Figure 4). This target concept is supported by bore hole ACCON-B-003, drilled in 2008 that intersected anomalous mineralization of 2m at a grade of 0.097% U3O8 on the edge of one of these radiometric anomalies (Figure 4, press release dated August 21, 2008). These targets will be prioritized for scout drilling in the future.

Quality Assurance & Quality Control

Diamond drilling at Accori North C was undertaken with U3O8 Corp's own drill rig that produced NQ (nominal 47.6 millimetre diameter) core. A down-hole spectral gamma probe was used on the four bore holes reported on here to determine the extent of the mineralized intervals by providing an estimate of the uranium grade based on the radioactivity measured. Core from each mineralized interval was halved with a diamond saw on-site and half core samples were delivered to ACME Laboratory's preparation facility in Georgetown, Guyana. Sample blanks and certified standards were inserted at an average frequency of one per 25 samples. Sample pulps were then shipped by ACME to their analytical facility in Vancouver, BC, Canada, for analysis for uranium by ICP-MS after hot, four-acid digestion. The other half of the core was logged and is stored on-site, providing a complete record of the geology and mineralized zones drilled.

Dr. Richard Spencer (P.Geo.), CEO and President of U3O8 Corp., a Qualified Person within the definition of that term in NI 43-101 of the Canadian Securities Administrators, had overall responsibility for all aspects of target selection and drill-site location on the Accori North C target. Dr. Spencer has supervised the preparation of, and verified, the technical information in this release.

To view Figure 1 – Clusters of Uranium-Bearing Structures in the Kurupung Batholith, please visit the following link: http://media3.marketwire.com/docs/fig1u3o.pdf

To view Figure 2 – Drill Hole Locations of the Accori North C Structure, please visit the following link: http://media3.marketwire.com/docs/fig2u3o.pdf

To view Figure 3 – Long Section of Accori North C, please visit the following link: http://media3.marketwire.com/docs/fig3u3o.pdf

To view Figure 4 – Target Concept in the Accori North C Structural Corridor, please visit the following link: http://media3.marketwire.com/docs/fig4u3o.pdf

About U3O8 Corp.

U3O8 Corp. is a Toronto-based exploration company, focused on exploration and resource expansion of uranium and associated commodities in South America – a promising new frontier for exploration and development. U3O8 Corp. has one of the most advanced portfolios of uranium projects in the region comprising NI 43-101 compliant resources in Guyana and Argentina to significant historic resources in Colombia.

(1)Scout drilling results suggest that the Kurupung structures identified to date may contain a conceptual target of 13-18 million tonnes at a grade of 0.08% to 0.10% U3O8 (estimated 30 to 35 million pounds ("mlb") U3O8) including the initial NI 43-101 resource estimate. The initial NI 43-101 resource estimate of 5.8mlb Indicated at an average grade of 0.10% (2.0 lbs/st) U3O8 and 1.3mlb Inferred at an average grade of 0.09% (1.9 lbs/st) U3O8 has been reported on the Aricheng North and Aricheng South structures in the Kurupung Batholith. Refer to the technical report dated January 14, 2009 titled "A Technical Review of the Aricheng North and Aricheng South Uranium Deposits in Western Guyana for U3O8 Corp. and Prometheus Resources (Guyana) Inc., available on U3O8 Corp's web site at http://www.u3o8corp.com/and on SEDAR at http://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 commodity prices, risks associated with the uncertainty of exploration results and estimates and that the resource potential will be achieved on the company's exploration projects, currency fluctuations, dependence upon regulatory approvals, and the uncertainty of obtaining additional financing and exploration risk. There is no assurance that mineralization encountered at Accori North C and other Kurupung targets will add to U3O8 Corp's resource base. 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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