UC Resources Ltd.
TSX VENTURE : UC

UC Resources Ltd.

August 24, 2006 09:53 ET

UC Resources Signs LOI for Minera El Alizal S.A. de C.V. Acquisition

TORREON, COAHUILA, MEXICO and VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 24, 2006) - UC Resources Ltd. (TSX VENTURE:UC) (the "Company") -

UC Resources Ltd. (UC) is pleased to announce that it has signed a Letter of Intent to acquire 90% of the outstanding shares of Minera El Alizal S.A. de C.V. (El Alizal), a Mexican company, incorporated in Chihuahua, Chihuahua, Mexico.

The main asset of El Alizal is the La Dura mining project located in the Copalquin mining district in the state of Durango, and is in very close proximity to UC's existing Copalquin exploration project. The project is comprised of four contiguous exploitation concessions, totaling 761 hectares. The La Dura concession incorporates the La Dura epithermal vein system which was the principal source of material for a 60 tonne per day flotation concentrating plant located on the property.

Production will originally be derived from approximately 100,000 tonnes of tailings that contain good grades of gold and silver, and will be followed by ore that will be processed from the existing stockpiles. Work on the existing mine will begin very shortly, with the objective of further defining the resource and mine extensions through a drilling campaign. The Company will issue progress reports in a timely manner.

The Terms of the contract are as follows:

On Closing:

Payment of $100,000 USD (of which $50,000 USD has already been paid)

And the issuance of 3,000,000 shares of UC Resourced Ltd.

Total cash consideration for the acquisition is $1,000,000 USD over a period of five years.

The Company will commit to a minimum of $2,000,000 USD in exploration work over a five year period.

The acquisition is conditional upon a normal course 60 day Due Diligence period, and the completion of a NI 43-101 report, followed by the approval of the TSX Venture Exchange.

Management of UC is very pleased to make this acquisition, as it fits in very well with its current projects in Mexico. The terms are now more befitting of the Company's overall strategy for the area, allowing UC to briskly pursue the economic potential that is believed to exist on the property. Because of its close proximity to UC Resources exploration program currently in place at Copalquin, this acquisition adds a certain degree of vertical integration to the program. The current milling facilities on site are in very good condition and can be expanded upon to meet the potential future needs of the Company in this region.

This acquisition is one more step towards Management's goal of making the Company an important precious metals producer in the very near future.

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.

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