UC Resources Ltd.

UC Resources Ltd.

May 01, 2007 11:00 ET

UC Resources' Update on McFauld's VMS Project in Northern Ontario

TORREON, COAHUILA, MEXICO and VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 1, 2007) - UC Resources Ltd. (the Company) (TSX VENTURE:UC) is pleased to provide an update on the completion of a gravimetric survey at the McFauld's Lake volcanic-hosted massive sulphide ("VMS") project, located in northern Ontario in the James Bay Lowlands, containing significant copper, zinc, gold and silver mineralization. This survey was conducted by Spider Resources Inc. (TSX VENTURE:SPQ), UC's joint venture partner on McFauld's Lake. The survey crosses McFauld's #1, #2, #3 and #4 VMS occurrences and precedes a planned deep EM geophysical survey over the same grid scheduled for late May or early June. The JVX geophysical crew mobilized to the project area on April 9th and surveying was completed April 17th (three days earlier than planned) including an additional two infill lines.

The initial interpretation of the previous 2005 gravity survey suggested that there was a large gravity anomaly centered near and parallel to the existing base line; basic modeling of the excess mass inferred by the gravity anomaly suggested this mass was located at least 600 metres below the surface. This excess mass anomaly was not explained by the diamond drilling completed on the McFaulds #3 occurrence prior to the first survey, the excess mass was located in the same position at the McFaulds #3 occurrence with respect to the grid and base line and extended much further to the northwest as well as to depth.

2007 Gravimetric Survey Results

Results of the gravimetric survey recently completed and interpreted by Dr. Allan Spector, consultant to JVX Ltd., have been received. The interpretation of the new results, based upon more complete coverage, now suggests that there are present 4 gravity anomalies, coincident with the 4 known and partially drilled sulphide occurrences (McFaulds #1, #2, #3 and #4) all within the main "C" grid, that was extended to the northeast to cover McFaulds #1 and #2 massive sulphide occurrences for the purposes of this new survey. The interpretation that suggested a deep gravity anomaly lying at great depth between McFaulds #1 and #3 in the initial 2005 gravity survey was not confirmed by the new survey data. When referring to McFaulds #3 occurrence, Dr. Spector states, "M3 is an egg-shaped gravity anomaly about 0.8 mgal in amplitude, observed on 3 lines; 500E, 800E and 1100E." The anomalous zone has a strike length of about 800m. From modeling it has a thickness of about 20m and a depth extent of over 300m. Dr. Spector estimates that the M3 anomaly represents excess mass of 6 million tons. This estimate is not to be considered a "resource estimate" for the McFaulds #3 massive sulphide occurrence, it is merely an interpretation of mass based upon the measured varying physical properties of the rocks that contain this massive sulphide occurrence, when compared to the surrounding rocks. This information, however, gives management a better understanding of the possible scope or size potential for this partially drilled off massive sulphide occurrence, as well as the other nearby occurrences, that were covered by the present survey. A similar estimate of excess mass can be calculated for the other three anomalies identified in the survey area, however additional gravity surveying was strongly recommended to close off the definition of these anomalies.

In addition, the gravity data suggests that there is a major fault structure trending NE-SW, located 100 to 150 meters southeast of McFaulds #1 and #3 occurrences, placing these two occurrences equidistant from this gravimetrically rendered fault/contact zone. This structure is noticed in aeromagnetic and electromagnetic surveys completed in 2003 and 2004. It is important to note that McFaulds #5 and #6 occurrence are also located proximal to this same feature, both being equidistant from the contact zone, to the northwest as well. This set of geophysical observations support the concept that the McFaulds Lake occurrences are structurally controlled VMS deposits of the Noranda style, as opposed to replacement style massive sulphide mineralization.

In addition to the geophysical survey, Spider also completed the cutting out of the perimeter around the originally staked claims as required for land surveyors, should Spider elect to eventually bring the property to mining lease status.

The current program was funded entirely by Spider, now the funding obligation for the project will shift to UC Resources Ltd. ("UC"). UC plans on starting their exploration program on this project in early June, consisting of deep geophysical surveying, followed by diamond drilling any anomalies identified by the deep geophysical program and tracing the aforementioned occurrences to depth and along strike.

UC, has an option to earn-in up to a 55% undivided interest in the McFauld's Lake project, which is currently owned, as to an undivided 50% interest, by each of Spider and KWG as per the LOI signed in early March 2007. UC shall then become the operator of the property during the term of their option.

The McFauld's Lake VMS project was initially discovered in 2002, while Spider, KWG and De Beers Canada Exploration Inc. in joint venture were exploring the project area for kimberlites. De Beers holds a 1.5% net smelter royalty on the project, 0.5% of which can be purchased from De Beers by Spider and KWG for $1.5 million. The claims outlined for the aforementioned perimeter survey define the property that De Beers has the royalty on.

To date, 10 isolated VMS occurrences have been identified and drill tested on the project, two of which have undergone detail drilling. UC plans to continue exploring this new VMS camp.

States Richard J. Hamelin, President & CEO of UC: "UC is very pleased with the results of this work. We would like to thank Spider Resources for their excellent work to date on this project, and are eager to begin the drilling phase at McFauld's Lake. We are very confident in the potential of this VMS project based upon the results obtained not only in this recent geophysical program, but the entire exploration program by Spider which included 47 drill holes comprising over 15, 000 metres. A highlight of the drill program was a drill hole in 2004 which intersected 18.8 meters containing 8.02% copper at a vertical depth of 250 meters."

UC Resources (TSX VENTURE:UC) is a Canadian exploration, development and production company which has an opportunity-driven acquisition strategy. Its main focus is on production and exploration opportunities in Mexico, and it is looking to achieve at least 700 tonnes/day of gold & silver production in Mexico by the end of the year. However, it is also active in Canada on very select basis exploration projects, such as the McFauld's Lake VMS Project, which have the potential to add significant shareholder value.

This press release has been prepared by management of UC Resources Ltd. and has been approved for dissemination by Neil Novak P.Geo. of Cambridge, Ontario, a Qualified Person under Canadian Securities guidelines, in his capacity as Vice President for UC Resources Ltd.

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

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