U3O8 Corp.

U3O8 Corp.

February 23, 2012 06:45 ET

U3O8 Corp's Resource Drilling Intersects 13m at 0.11% U3O8 at Aricheng West in the Kurupung Project, Guyana

Updated Resource Estimate Being Finalized

TORONTO, ONTARIO--(Marketwire - Feb. 23, 2012) - U3O8 Corp. (TSX VENTURE:UWE), a Canadian-based company focused on uranium exploration and resource expansion in South America, reports results from another 17 holes from the resource drilling completed on the Aricheng West structure in the Kurupung Batholith in Guyana (Figure 1). A National Instrument 43-101 ("NI 43-101") resource estimate on Aricheng West is due to be reported in March 2012.

"These latest infill drill results from Aricheng West were completed for NI 43-101 purposes, and continue to underscore the size potential of the uranium system in the Kurupung Project," said Dr. Richard Spencer, U3O8 Corp's President and CEO. "Exploration drilling to date has identified 10 consistently uranium-mineralized structures, two of which contain previously reported NI 43-101 resources1, and a further two are currently undergoing resource estimation for release in March 2012. The plan for this year is to undertake scout drilling that aims to set up targets for infill drilling in due course."

Table 1 - Assay Results for Aricheng West

Summary of significantly mineralized intercepts cut in a further 17 bore holes completed in the infill drilling program at Aricheng West (Figure 2).

Intercept Grade
Bore Hole Estimated
Number From To Interval True U3O8 U3O8
(m) (m) (m) Thickness (m) (%) (lb/t)
ARW-058 257 267 10 7.07 0.099 2.18
278 289 11 7.78 0.095 2.09
ARW-059 51 61 10 9.90 0.119 2.62
343 347 4 3.15 0.051 1.12
ARW-060 208 218 10 6.16 0.062 1.36
266 274 8 4.93 0.054 1.19
106 111 5 3.08 0.172 3.78
112 117 5 3.08 0.097 2.14
ARW-061 278 283 5 3.08 0.088 1.94
288 296 8 4.93 0.055 1.22
368 378 10 6.16 0.038 0.84
ARW-062 83 85 2 1.29 0.044 0.96
240 247 7 4.95 0.060 1.32
ARW-063 257 276 19 13.44 0.109 2.40
279 284 5 3.54 0.053 1.17
ARW-064 342 350 8 5.95 0.115 2.54
162 170 8 4.93 0.057 1.25
ARW-065 182 188 6 3.69 0.043 0.95
222 226 4 2.46 0.155 3.40
ARW-066 58 60 2 1.64 0.070 1.55
ARW-067 No Significant Results
ARW-068 68 76 8 4.81 0.040 0.88
ARW-069 55 62 7 4.21 0.093 2.04
ARW-070 191 197 6 4.24 0.074 1.62
305 311 6 4.24 0.047 1.04
ARW-071a 315 318 3 1.50 0.119 2.62
129 135 6 3.94 0.050 1.10
ARW-072b 205 213 8 5.25 0.044 0.97
291 295 4 2.62 0.047 1.03
ARW-073 Hole abandoned due to technical difficulties at 37m depth
ARW-074 75 81 6 3.00 0.075 1.65
Note: lbs/t is an abbreviation for pounds per tonne.

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. The drilling reported in this release constitutes infill drilling on the Aricheng West structure with the aim of defining a mineral resource. No mineral resource has been completed on the Aricheng West structure to date, and it is uncertain if further exploration will result in such target being delineated as a mineral resource.

Aricheng West Structure

Uranium at Aricheng West is concentrated in a set of near-vertical, sheet-like breccias that have an easterly trend that extends over 1km and is still open along strike. The principal mineralized structures correspond closely with corridors of unusually weak magnetism that goes beyond the area that has been drilled (Figure 2). Extensions to these weakly magnetic corridors constitute targets that warrant further exploration drilling.

Mineralization at Aricheng West extends from the near-surface saprolite to at least 340 metres ("m") below surface. Saprolite is the layer of clay that lies between the soil and hard-rock, and is formed by the weathering of rock in tropical environments. Original uranium minerals found in hard-rock at depth have weathered to a secondary uranium-bearing mineral called torbernite in the clay layer. This may represent a low-cost mining component to the Kurupung Project since open-pit mining of the clay layer would be relatively inexpensive while uranium is typically easily leached from torbernite. Metallurgical test work is underway on samples of mineralized saprolite to determine the extent to which uranium can be extracted. The saprolite varies in thickness from 10m to 80m over the Kurupung Project area, and averages 20m thick at Aricheng West.

Quality Assurance & Quality Control

QA/QC procedures for Aricheng West are the same as those used in U3O8 Corp's exploration elsewhere in the Kurupung Project as described in the press release dated April 20, 2011, available on the company's web site at www.u3o8corp.com and on SEDAR at www.sedar.com.

Dr. Richard Spencer, President and CEO 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 target and drill-site selection at the Aricheng West target. Dr. Spencer has supervised the preparation of, and verified, the technical information in this release.

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 uranium 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, Argentina and Colombia.

(1) Scout drilling results suggest that the 10 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 of 5.8mlb Indicated at 0.10% U3O8 and 1.3mlb Inferred at 0.09% 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 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 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 mineralization encountered at Aricheng West 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.

To view figure 1, please visit the following link: http://media3.marketwire.com/docs/U3O8Figure1Feb22.pdf.

To view figure 2, please visit the following link: http://media3.marketwire.com/docs/Figure2Feb23.pdf.

To view the image associated with this press release, please visit the following link: http://media3.marketwire.com/docs/Kurupung%20Project.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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