SOURCE: Uranium City Resources

August 17, 2007 10:07 ET

UCR Provides Update on Progress of NI-43-101 Report

KIRKLAND LAKE, ON--(Marketwire - August 17, 2007) - Uranium City Resources Inc. (TSX-V: UCR) (BERLIN: A0F7F5) is pleased to provide shareholders with an update on the progress of the NI-43-101 report currently being prepared by Watts Griffis and McOuat Limited of Toronto.

Watts, Griffis and McOuat Limited ("WGM"), a well-known firm of consulting geologists and engineers, has been fulfilling the role of Independent Qualified Person (IQP) for the Uranium City Resources ("UCR") Project since 2005. WGM carried out a site visit in August 2006 and again in June 2007. During the latter visit, uranium intersections of stored UCR drillholes were examined and 17 independent check samples of mineralized split drill core (quarter split) were taken by WGM for assaying. Also, the locations of several UCR drillholes were confirmed using a GPS instrument. WGM observed core logging and sampling procedures and commented on QA/QC protocols which in general were found to be in compliance with CIM best practices standards. This work was undertaken to support an independent Mineral Resource estimate currently being compiled by WGM.

During the site visit, WGM made a few recommendations to ensure that the Mineral Resource estimate complied with National Instrument 43-101. Taking a longer term view, WGM also recommended that UCR twin a few drill holes with earlier Eldorado holes to confirm the mineralization, grades and lithology. Despite the credibility assigned to the former Crown Corporation's work, twinning was thought to be a necessary step since Eldorado sampled the entire core leaving no sample media as a permanent record or for confirmation purposes.

During the period following the site visit WGM has completed:

* Importing 41 drill hole data records (collar, down-hole survey, sample
  assay and lithology) into GEMCOM software;
* Generating 15 cross-sections for refining the geological interpretations;
* Construction of two topographic surfaces (based on 10 m and 5 m contours)
  while recommending a new survey to tie the existing grids into a
  common system;
* Amending the cross-sectional orientation to better correlate the
  mineralization, and re-creating the geological cross sections; and,
* Reviewing the re-interpreted geology pursuant to creating a 3-dimensional
  geological block model of the East Target.

During the next 2-3 weeks, WGM plans to carry out the following work program:

* Digitizing the mineralization outlines in GEMS in 3D space;
* Re-interpreting the mineralized envelop, if necessary, to ensure the
  outlines are internally consistent for valid 3-D solid generation;
* Generating a 3D Model of the mineralization;
* Preparing assay composites within the mineralized envelope;
* Performing geo-statistical analysis on the composites, including create
  3D variograms to obtain correlation directions;
* Designing a search ellipsoid for block modeling of the uranium resources;
* Interpolation of sample data within the block model; and,
* Reporting of the Mineral Resource estimate.

Commenting on the progress of this report, UCR President and CEO Robert Kasner noted, "UCR is extremely pleased by progress made to date at the East Target. The completion of the NI-43-101 compliant report by WGM along with the generation of a 3-D model of the mineralization will provide a valuable platform from which to continue building and expanding the East Target."

This news release has been reviewed and approved for Watts, Griffis and McOuat Limited by Al Workman, P.Geo. and Vice-President.

Additional information on Uranium City Resources' and its exploration efforts in Uranium City is available at www.uraniumcityresources.com.

The technical information in this news release has been reviewed by Jim Kermeen, P. Eng., a qualified person as defined by National Instrument 43-101.

Forward-looking statements:

This news release contains certain forward-looking statements. These forward-looking statements are subject to a variety of risks and uncertainties beyond UCR's control or prediction and could cause actual events or results to differ materially from those anticipated in such forward-looking statements. Although UCR believes that the assumptions inherent in the forward-looking statements are reasonable, undue reliance should not be placed on these forward-looking statements.

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