U3O8 Corp.
TSX VENTURE : UWE

U3O8 Corp.

June 25, 2008 09:10 ET

U3O8 Corp. Reports Significant Uranium Mineralization from a Further 16 Of 56 Bore Holes Completed at Aricheng South

First resource estimate expected for completion in the fourth quarter of 2008

TORONTO, ONTARIO--(Marketwire - June 25, 2008) - U3O8 Corp. (TSX VENTURE:UWE), a Canadian uranium exploration company, reports significant intercepts of uranium mineralization from 16 additional drill holes on the Aricheng South fault-breccia zone in the Kurupung Batholith, located in the basement near the Roraima Basin in Guyana. These assay results provide more detail on the distribution of uranium grade in the Aricheng South area, which is one of two mineralized zones situated on the same 10 kilometre long structure. Further exploration will be focused on the possibility that other parts of this structure are mineralized.

"Completion of this phase of drilling at Aricheng South is a key milestone towards a resource estimate on the first basement-hosted uranium-bearing structure in the Kurupung Batholith," said Dr. Richard Spencer, U3O8 Corp's President and CEO. "This first resource calculation should be completed in the fourth quarter of 2008. Aricheng North is the second target area being prepared for resource estimation, where three drill rigs are now operating".

Dr. Spencer continued, "As well, magnetic data define the extension of the Aricheng South structure westwards to a mineralized zone in the Accori area. The fact that these two mineralized zones lie on the same structure focuses exploration on the possibility that other parts of the structure may be mineralized. As a result, our exploration becomes more predictive by being able to identify similar anomalies elsewhere in the Kurupung Batholith to refine our selection of areas for field exploration and scout drilling."

Today's results reaffirm U3O8 Corp's exploration model that a number of basement-hosted uranium-bearing breccias in the basement of the Roraima Basin form part of a structural network that may contain a total resource of meaningful and economic size -and underscores the similarity of the Roraima Basin with the Athabasca Basin in Saskatchewan with its structurally controlled uranium mineralization in the adjacent basement.

Aricheng South

The assay results reported here are from 16 holes of an extended 56-hole, 10,626 metre, Phase III drilling program that was completed in early June on the Aricheng South structure. Summary assay results from the first 20 holes in this 56-hole program were released on April 10, 2008 and May 7, 2008, and are available on SEDAR at www.sedar.com and at the company's website www.u3o8corp.com.

Assay results from Phase I and II drilling at Aricheng South were reported on August 1, 2007 and February 26, 2008 respectively, and are available on SEDAR at www.sedar.com and at www.u3o8corp.com. On receipt of the final assays from the Phase III drilling program, all assay, control and geological data for the 77 bore holes (13,453 metres) drilled at Aricheng South will be turned over to an external consulting company for a resource estimate to be undertaken. The resource estimate is expected to be completed in the fourth quarter of 2008.



Assay highlights from the 16 bore holes reported here include:

---------------------------------------------------------------------------
Intersection Grade
------------------------------------------------------------
Bore hole Core Estimated (i)lbs/
number From (m) To (m) length true width % U3O8 short ton
(m) (m) U3O8
---------------------------------------------------------------------------
ARS-043 132.0 151.5 19.5 16.9 0.122 2.4
---------------------------------------------------------------------------
Including 139.5 148.0 8.5 7.4 0.181 3.6
---------------------------------------------------------------------------
ARS-050 203.5 210.0 6.5 5.1 0.125 2.5
---------------------------------------------------------------------------
Including 207.0 209.0 2.0 1.6 0.305 6.1
---------------------------------------------------------------------------
ARS-057 27.0 33.5 6.5 6.3 0.120 2.4
---------------------------------------------------------------------------
Including 29.5 33.0 3.5 3.4 0.180 3.6
---------------------------------------------------------------------------
(i) Note: 1 short ton equals 2,000lbs or 0.907 metric tonnes


The location of drill holes relative to the ground scintillometer survey and previous drilling (results released on August 1, 2007, February 26, 2008, April 10, 2008 and May 7, 2008) is shown in Figure 1. Mineralization at Aricheng South occurs in two sub-parallel, east-west trending fault-breccia zones in the Kurupung Batholith. A long section of uranium grade and thickness in the principal structure, that has been traced over a strike length of 270 metres and to a depth of approximately 180 metres below surface, is shown in Figure 2. The principal structure dips approximately 600 to the north, and the mineralized zone varies in width from 4 metres to 34 metres.

Evidence for extensions to the Aricheng South structure

The fault breccia that contains the uranium mineralization in the Aricheng South area is located on the edge of an electromagnetic anomaly (Very Low Frequency-VLF) that extends well beyond the mineralization drilled to date (Figure 3). The extension of this structure to the east and west beyond the area drilled represents an immediate exploration target that will be investigated by further drilling.

The VLF anomaly coincides with a 10 kilometre long magnetic anomaly that links the Aricheng South, Accori North B and Accori North C targets (Figure 4). Results released from scout drilling in the Accori North C target on June 17, 2008, show that a 250 metre-long sector of the structure also contains significant mineralization. Assay results from a third sector of the structure, Accori North B, are likely to be released in July, 2008. Given that two sectors of this extensive structure have significant uranium grades raises the possibility that other parts of the 10 kilometre long structure could be mineralized.

Structural Link Provides Predictive Exploration Approach

For the first time, U3O8 Corp. has defined a structural link between mineralized zones located kilometres apart in the Kurupung Batholith. Magnetic data show that the Kurupung Batholith is cut by a number of structures similar to the one in which Aricheng South lies. Three of these other structures contain significant uranium grades that were drilled by Areva, therefore, U3O8 Corp. knows that these are prospective structures. Recognition of the structures that control mineralization allows the company to be more predictive about the possible location of additional mineralization along these same structures.

Aricheng North

Drilling of the 750 metre strike extent of the Aricheng North structure commenced in early June and three rigs are now deployed there. Drilling is planned to be completed in August, 2008. The objective of this drilling is to provide sufficient geological and uranium grade data from the structure in order to decide whether a resource estimate is warranted. If a resource estimate is undertaken, it would be planned for completion in the fourth quarter of 2008.

Quality Assurance & Quality Control

Diamond drilling at Aricheng South produced NQ (47.6 millimetre diameter) core. The core 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 1 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.

Mr. Richard Cleath (M.Sc.), Vice President of U3O8 Corp., a Qualified Person within the definition of that term in National Instrument 43-101 of the Canadian Securities Administrators, had overall responsibility for all aspects of target selection and drilling of the Aricheng South target. Mr. Cleath has supervised the preparation of, and verified, the technical information in this release.

Potential quantity and grade are conceptual in nature. There has been insufficient exploration to define a mineral resource on U3O8 Corp's properties and it is uncertain if further exploration will result in the target being delineated as a mineral resource.



Table 1. Summary of significantly mineralized intercepts cut in the third
tranche of 16 bore holes (3,074 metres) from Phase III drilling undertaken
in April, 2008, on the Aricheng South target.

---------------------------------------------------------------------------
---------------------------------------------------------------------------
Bore hole data Interval Grade
---------------------------------------------------------------------------
Estmated
Hole Total From To (m) Interval True U3O8
Depth (m) (m) (m) Thickness U3O8% lb/st
(m)
---------------------------------------------------------------------------
---------------------------------------------------------------------------
ARS-042 211.8 116.0 118.5 2.5 2.4 0.088 1.8
---------------------------------------------------------------------------
183.0 186.0 3.0 2.6 0.090 1.8
---------------------------------------------------------------------------
121.0 130.5 9.5 8.2 0.085 1.7
211.9 -----------------------------------------------------
132.0 151.5 19.5 16.9 0.122 2.4
-----------------------------------------------------------------
ARS-043 Including 139.5 148.0 8.5 7.4 0.181 3.6
-----------------------------------------------------------------
159.0 170.0 11.0 9.5 0.078 1.6
-----------------------------------------------------
171.0 185.0 14.0 12.1 0.068 1.4
---------------------------------------------------------------------------
130.5 133.5 3.5 3.1 0.076 1.5
-----------------------------------------------------
ARS-046 212.0 141.0 143.0 2.0 1.8 0.215 4.3
------------------------------------------------------
180.0 183.5 3.5 2.8 0.078 1.6
---------------------------------------------------------------------------
105.0 108.5 3.5 3.4 0.101 2.0
-----------------------------------------------------
ARS-047 202.8 109.5 117.0 7.5 7.4 0.054 1.1
-----------------------------------------------------
149.5 153.5 4.0 3.8 0.063 1.3
---------------------------------------------------------------------------
118.5 121.0 2.5 2.2 0.144 2.9
ARS-048 233.2 -----------------------------------------------------
124.5 126.5 2.0 1.8 0.076 1.5
---------------------------------------------------------------------------
161.0 162.5 1.5 1.4 0.084 1.7
ARS-049 220.9 -----------------------------------------------------
191.5 196.0 4.5 3.9 0.147 2.9
---------------------------------------------------------------------------
174.0 176.0 2.0 1.6 0.126 2.5
230.2 -----------------------------------------------------
ARS-050 203.5 210.0 6.5 5.1 0.125 2.5
-----------------------------------------------------------------
Including 207.0 209.0 2.0 1.6 0.305 6.1
---------------------------------------------------------------------------
ARS-051 220.7 109.5 111.0 1.5 1.4 0.082 1.6
---------------------------------------------------------------------------
ARS-052 248.0 No significant Results
---------------------------------------------------------------------------
131.5 133.5 2.0 1.9 0.082 1.6
ARS-053 236.0 -----------------------------------------------------
158.0 162.5 4.5 4.2 0.081 1.6
---------------------------------------------------------------------------
81.0 86.0 5.0 4.9 0.061 1.2
ARS-054 142.5 -----------------------------------------------------
89.0 91.5 2.5 2.5 0.057 1.1
---------------------------------------------------------------------------
147.0 149.0 2.0 1.8 0.080 1.6
-----------------------------------------------------
ARS-055 210 190.5 194.5 4.0 3.5 0.067 1.3
-----------------------------------------------------
223.0 229.5 6.5 5.1 0.050 1.0
---------------------------------------------------------------------------
127.7 27.0 33.5 6.5 6.3 0.120 2.4
ARS-057 -----------------------------------------------------------------
Including 29.5 33.0 3.5 3.4 0.180 3.6
---------------------------------------------------------------------------
ARS-058 103.1 43.5 46.0 2.5 2.5 0.087 1.7
---------------------------------------------------------------------------
84.5 87.5 3.0 2.9 0.052 1.0
ARS-059 127.1 ----------------------------------------------------
88.5 90.0 1.5 1.4 0.075 1.5
---------------------------------------------------------------------------
81.5 82.5 1.0 1.0 0.121 2.4
ARS-060 136.1 ----------------------------------------------------
89.0 98.0 9.0 8.9 0.070 1.4
---------------------------------------------------------------------------
---------------------------------------------------------------------------

Note: lb/st is an abbreviation for pounds per short ton. 1 short ton
equals 2,000lbs or 0.907 metric tonnes.


To view the Figure 1. map, please visit the following link: http://media3.marketwire.com/docs/u3o8map1.pdf

To view the Figure 2. map, please visit the following link: http://media3.marketwire.com/docs/u3o8map2.pdf

To view the Figure 3. map, please visit the following link: http://file.marketwire.com/release/u3o8map3.pdf

To view the Figure 4. map, please visit the following link: http://media3.marketwire.com/docs/u3o8map4.pdf

About U3O8 Corp.

U3O8 Corp. is a Canadian mineral exploration company based in Toronto, Canada. Currently focused on uranium exploration in the Roraima Basin in Guyana, South America, U3O8 Corp's primary business objective is to explore, develop and acquire uranium projects in the Americas. The company is well funded with over $18 million held solely in cash and Canadian chartered bank-backed Guaranteed Investment Certificates. At current rates of exploration expenditure, the company expects to be funded up until 2010.

U308 Corp. has exclusive uranium exploration rights in an area covering approximately 1.3 million hectares that straddles the edge of the Roraima Basin in Guyana. The company is advancing a two-pronged exploration strategy that focuses on:

- Exploration for multiple uranium-bearing structures within structural systems in the basement adjacent to the Roraima Basin with the concept that the individual veins could potentially aggregate to a significant total resource; and

- Exploration for unconformity-style uranium deposits at the base of the Roraima Basin, which are similar to those of the prolific Athabasca Basin in Saskatchewan.

For further information on the company's properties, please refer to the technical report prepared for the company by Dahrouge Geological Consulting Ltd. and dated September 15, 2006 as amended and restated December 12, 2006, available on SEDAR at www.sedar.com and on the company's website www.u3o8corp.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, currency fluctuations, dependence upon regulatory approvals, the uncertainty of obtaining additional financing and exploration risk. 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.

Basic shares outstanding: 23,057,700

Fully diluted shares outstanding: 25,281,000

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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