SOURCE: UC Resources Ltd.

January 25, 2006 14:52 ET

UC Resources Ltd. Signs Letter of Intent for Acquisition of Production Facilities at La Dura Mine at Durango, Mexico

TORREON, COAHUILA, MEXICO and VANCOUVER, BC -- (MARKET WIRE) -- January 25, 2006 -- UC Resources Ltd. (TSX-V: UC) (the "Company") today announces the signing of a Letter of Intent with Cia. Minera El Alizal S.A. de C.V. to acquire a seventy-five (75)% interest in the production facilities of the La Dura Mining Project located NW Durango, Mexico.

The general scope of the agreement is that UC Resources Ltd., acting through its wholly owned Mexican subsidiary, Minera Planet S.A. de C.V., agrees to enter into a Joint Venture Agreement with Cia. Minera El Alizal S.A. de C.V., in order to extract and process ore and tailings, at the La Dura Mine. The La Dura Mine is a historical producer of Gold and Silver, and has a sixty (60) tonnes per day milling facility on site.

The agreement will allow UC to earn a seventy-five (75)% interest in the project by paying all of the costs associated with the start-up of the mine and milling facilities at the project. The initial duration of the contract will be until October 31st, 2008.

The Joint Venture Agreement will be subject to certain conditions and clauses, the most important of which will be that a satisfactory due diligence be conducted by the Company.

UC Resources has made several significant corporate achievements of recent and is currently underway on Phase 2 of the Exploration Program on its 100% interest in the 19,269 hectare (192 sq km's) historically productive gold and silver Copalquin Project. The Copalquin mining district is located in NW corner of the State of Durango, Mexico and is centrally position within Mexico's prolific Sierra Madre Mining belt. Copalquin, the company's flagship property has returned both high-grade gold and silver results from recent drilling in Phase 1 exploration program in early 2005.

The company continues to actively search for additional quality strategic assets for UC to become a producing gold and silver exploration and development in Mexico.

On behalf of the Board of Directors,

Richard J. Hamelin, President/Director

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

Contact Information

  • For further information:
    William Elston
    VP Corporate Development, Officer
    #1000, 355 Burrard Street Vancouver, B.C. V6C2G8 Canada
    Toll Free: 1-800-366-8566 (Canada & USA)
    Website: www.ucresources.net