UC Resources Ltd.

UC Resources Ltd.

October 16, 2006 12:26 ET

UC Resources Ltd.: Phase III Exploration Program Commences on 64,000 Hectare Copalquin Project in Durango, Mexico

TORREON, COAHUILA, MEXICO and VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 16, 2006) - UC Resources Ltd. (TSX VENTURE:UC) (the "Company")

UC Resources is pleased to announce that Phase III drilling has commenced on the Company's 100% owned flagship exploration property, Copalquin, which is located in the Northwest corner of Durango, Mexico. The property is a 64,000 hectare land package which encompasses 23 historically productive silver and gold mines within its boundaries.

The main objective of the Phase III program will be to delineate the extent of the high grade silver and gold mineralization identified at the La Soledad prospect, a previous producing high-grade mine. As announced July 20, 2006 the first hole ever completed below the historic La Soledad mine workings (DDH 06-07) intersected 5.2 meters of mineralization averaging 45 g/ton gold and 1,563 g/ton silver. These results were in line with previous, historic results. The planned program will include up to nine additional drill holes designed to test the projected extension of the La Soledad zone. Assay results will be released as they become available.

Concurrent with the drilling at La Soledad field crews will prepare sites to test the strike extensions of the mineralized zones identified at Cometa and Refugio. The Phase III program will also test several extensive alteration zones and gold geochemical anomalies identified during Phase II. All of these target areas have either returned significant drill intercepts, which are open to expansion, or exhibit extensive hydrothermal alteration and/or gold geochemical anomalies. This part of the Phase III program aims to extend the size of the epithermal system.

On completion of the fall program an independent 43-101 compliant technical report will be completed detailing all historic drilling results at Copalquin in addition to the results of Phase II and III drilling at La Soledad. It is expected that the 43-101 will be submitted in Q1, 2006 and provide an inferred mineral resource. The technical information contained in this release was prepared by Carl von Einsiedel, P.Geo., a "qualified person" within the meaning of National Instrument 43-101 for the Copalquin Project.

UC Resources is a Canadian exploration, development and production company focused on silver and gold in Mexico, and is on track to enter production by the end of 2006.

On behalf of the Board of Directors,

Richard J. Hamelin, President/Director

This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, Investors should review the Company's registered filings what are available at www.sedar.com.

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

Contact Information