U3O8 Corp.
TSX VENTURE : UWE

U3O8 Corp.

May 25, 2011 06:45 ET

U3O8 Corp's Drilling Confirms Consistent Uranium, Vanadium, Phosphate & Rare Earth Mineralization Extending Over 2.5km in the Berlin Project, Colombia

Trenching Shows Mineralization Continues Northward Beyond the Historic Resource Area

TORONTO, ONTARIO--(Marketwire - May 25, 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 assay results from a further four bore holes and three trenches completed in the Berlin Project in Caldas Province, Colombia. The Berlin Project is a sediment-hosted, multi-commodity prospect with a historic resource1 of 12.9 million tonnes at an average grade of 0.13% U3O8 (38 million pounds ("mlb") U3O8) estimated on the southernmost 4.4 kilometres ("km") of a 10.5km long mineralized trend. This historic work did not include estimates for commodities other than uranium.

"U3O8 Corp's exploration drilling has now confirmed consistent, multi-commodity mineralization in the southernmost 2.5km of the Berlin trend," said Dr. Richard Spencer. "Trenching has also shown that the mineralization occurs in the northern part of the trend, corroborating previous exploration for the first time, and highlighting the upside of the project beyond the historic resource. Trenching will continue along the whole 10.5km trend, followed by drilling. In the southern portion, we are now focused on infill drilling with the aim of converting part of the historic resource into an initial National Instrument 43-101 ("NI 43-101") uranium resource in late 2011."

Dr. Spencer continued, "Metallurgical testing on drill core samples from Berlin is ongoing to define a means of extracting the various metals and phosphate, although the work is progressing more slowly than anticipated and results are now expected in the latter half of the year. A bulk sample has also recently been sent to Australian Nuclear Science and Technology Organization (ANSTO) for further work. ANSTO has extensive experience with similar types of ore – it established the process to extract uranium and rare earths from phosphate, generating co-product phosphoric acid, at the Nolans Bore deposit in Australia. The Berlin Project shares many characteristics with the Nolans Bore deposit."

Table 1 – Assay Results from Drilling in the Southern Part of the Berlin Project

Summary results for the four bore holes drilled from platform P6 in the southern part of the Berlin Project2 (Figures 1 and 2).


Platform
Bore
Hole
#
From
(m)

To
(m)
Estimated
True Width(m)
U3O8V2O5P2O5MoY2O3ReAg
%lbs
/st
%%ppmppmppmppm
DDB17237.40240.403.000.0911.810.407.715414245.32.6
P6DDB18227.02229.772.750.0951.900.387.495064315.92.3
DDB19225.78228.352.570.0851.710.447.475614285.42.0
DDB20295.58298.532.950.0701.410.437.416344976.62.6

Table 2 – Assay Results from Trenches in the Northern Part of the Berlin Project

Summary results for the three trenches excavated in the northern part of the Berlin Project2 (Figure 1).

Trench
#
Estimated True
Width (m)
U3O8V2O5
(%)
P2O5
(%)
Mo
(ppm)
Y2O3
(ppm)
Re
(ppm)
Ag
(ppm)
(%)(lbs/st)
TB310.920.0500.990.6310.11024480.091.05
TB321.380.0571.140.545.6584360.004.99
TB332.470.1292.590.7418.1531,1100.071.10
2 Assay results – lbs/st is an abbreviation for pounds per short ton. 1 short ton = 2,000lbs or 0.907 metric tonnes. Potential quantity and grade are conceptual in nature. There has been insufficient exploration to define a mineral resource at the Berlin Project to date and it is uncertain if further exploration will result in the target being delineated as a mineral resource.

Mineralization

The mineralized unit at Berlin is a sedimentary layer that lies beneath an organic-rich, black shale that is Cretaceous in age (Figure 2). The mineralized layer changes in composition from fine-grained sandstone that transitions laterally through carbonate-bearing siltstone to carbonate rock. Mineralization lies at the top of this variable unit.

Microscopic study of drill core samples shows that the majority of the phosphate occurs as fine, crystalline fluorapatite (Ca5(PO4)F) masses in the sandstone, carbonate-bearing siltstone and carbonate rock. Most of the metals of potentially economic interest occur as phosphate minerals, or are associated with the fluorapatite.

Quality Assurance and Quality Control ("QAQC")

QAQC are incorporated by reference to the press release dated February 24, 2011, available on U3O8 Corp's web site at www.u3o8corp.com and on SEDAR at www.sedar.com.

Dr. Richard Spencer, President & CEO of U3O8 Corp., a Qualified Person within the definition of that term in NI 43-101 of the Canadian Securities Administrators, has supervised the preparation of, and verified the technical information in this release.

(1) The Berlin resource estimate is historical and is reported in Castano, R. (1981), Calcul provisoire des reserves geologiques de Berlin, sur la base des resultants des sondages, unpublished Minatome report, 15p. There has been insufficient exploration work completed to verify the historic estimate. U3O8 Corp. is not treating the historical estimate as current mineral resources and it should not be relied upon or considered a NI 43-101 compliant resource. The majority of the prior exploration on the Berlin Project was conducted by the French company, Minatome, between 1978 and 1981 during which time 11 widely-spaced bore holes were drilled, 20 trenches were dug and three adits were excavated. The historic estimate was generated on the southern 4.4km of a 10.5km long syncline (Figure 1). Historic data from trenching shows that anomalous grades of uranium continue along strike to the north.

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.

For further information on U3O8 Corp's Berlin Project, refer to the technical report entitled "Review of Historic Exploration Data from the Unaniferous Black Shales of the Berlin Project and Chaparral Concession, Colombia: A guide to future exploration" prepared by Richard Spencer and Richard Cleath dated March 23, 2010 and available at www.sedar.com. Additional information on U3O8 Corp. is available on the company's web site at 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, the timing of laboratory results, volatility of 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 Berlin 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.

To view Figure 1 – Map Shows the Location of Trenches and Drill Platforms in the Berlin Project please visit the following link: http://media3.marketwire.com/docs/uwemaplocations1.pdf.

To view Figure 2 – Cross Section of the Berlin Project at Drill Platform P6 please visit the following link: http://media3.marketwire.com/docs/uwemaplocations2.pdf.

To view the photo associated with this press release, please visit the following link: http://www.marketwire.com/library/20110524-U3O8%20Corp.800.jpg.

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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