UGL Enterprises Ltd.

UGL Enterprises Ltd.

March 31, 2005 09:00 ET

UGL Acquires High-Grade Nergui Uranium Property; Northern Mongolia


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: UGL ENTERPRISES LTD.

TSX VENTURE SYMBOL: UGS

MARCH 31, 2005 - 09:00 ET

UGL Acquires High-Grade Nergui Uranium Property;
Northern Mongolia

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 31, 2005) - UGL
Enterprises Ltd. (TSX VENTURE:UGS)

Mr. Arnold Armstrong, President of UGL Enterprises Ltd. (UGL) announces
that UGL has acquired a 100% interest in the Nergui Uranium Property in
Northern Mongolia.

The Nergui Property covers 123,562 contiguous hectares located in the
Mongolian province of Bulgan Aimag, north central Mongolia.

The property has a multi-year exploration history dating back to the
height of the Cold War (1983) and continuing until as recently as 1992.
All programs on the Nergui property, including geophysics, were
commissioned by the Russian Government and were supervised by Russian
sanctioned field crews. Some of the highest Uranium grades ever recorded
in Mongolia were discovered during the initial Russian program in 1983.
The Russians then continued to advance the property in 1986, 1990, and
1992.

Detailed records during this period were typically returned to Moscow
for filing and are at this point considered unavailable but efforts are
still being made by UGL to source them. Summary reports however, and
some other key data, were filed in government offices in Ulaanbaatar,
Mongolia. These reports have been evaluated by UGL; they include
geographic coordinates for the areas of greatest interest as well as
recorded uranium grades over multiple mineralized zones. The records are
not to NI 43-101 standards.

The Russian records outline the discovery of multiple uranium zones on
Nergui including at least two high-grade zones. Zone 1 reported grades
of between 4% and 10% Uranium over up to 700m in length with widths of
30-40m. Zone two reported grades of between 1.07% and 1.27% Uranium over
up to 100m in length with widths of 0.2 to 3m. At least one low-grade,
but anomalous zone is reported with a length up to 1400m and widths
between 30 and 70m.

Mr. Arnold Armstrong, President and CEO of UGL Enterprises states: "The
attention that the Russians gave Nergui between 1983 and 1992 makes us
particularly optimistic for our shareholders". He adds; "despite Nergui
being an outstanding addition to our extensive Mongolian uranium
portfolio it by no means caps it. UGL is committed to uranium
exploration in Mongolia and continues to review other quality
acquisitions."

Within 30 days UGL Enterprises will conduct its first field operations
on Nergui. This program will define targets for a proposed UGL drill
program to commence later this year and bring information on the
previous known Russian workings up to NI 43-101 standards.

Uranium exploration has advanced considerably in the 13 years since the
most recent Nergui program ended in 1992. The UGL program will include
detailed prospecting of the areas of interest using GR-130G and GIS-W32
model spectrometers. The GIS-W32 spectrometers will provide the data
required to construct radioelement maps. The GIS-W32 spectrometers will
also be used for detailed radioelement mapping of the known uranium
showings as well as new showings that may be discovered. In addition to
the radioactive element prospecting, standard geological mapping and
rock sampling will also be performed all in preparation for drilling.
Over 80% of the property remains unexplored, thus providing an extensive
area with a geological profile of significant interest. The uranium
occurrences on Nergui are reported as being hosted within sandstone and
siltstone of the Ikh Uul formation, formed in the Early to Middle
Triassic. The sedimentary rock has been described as: "sandstone and
siltstone with grayish gravelite phosphate". World-class uranium
deposits in Mongolia are typically hosted in sandstone type deposits
similar to those found on Nergui.

There are several major Uranium discoveries in Mongolia that are hosted
in the same environment as UGL's Nergui project; they include the Dornod
Deposit which has 40,128,000 pounds(i) grading 0.118%, 31,664,000
pounds(i) grading 0.177% and 26,349,000 pounds grading 0.236% and the
Gurvanbulag project (Western Prospector) which has a reported resource
of 22,679,160 pounds(i) grading 0.245% and an additional 19,183,616
pounds grading 0.135%. ((i) source: National Bank report February 25,
2005).

Despite the highly encouraging results on Nergui the property has not
yet been drilled. This was primarily due to the fact that uranium
production during the height of Russian involvement in Mongolia was
concentrated east of Bulgan (province) in the province of Dornod. Here
discoveries of significance were first recorded in Mongolia and a
railroad was constructed linking the Mongolian uranium mines with
Russian smelter facilities.

The reported high-grade zones on Nergui are located within 20 km
southwest of the town (soum) of Selenge. Access to this region is by 270
kilometres of paved and dirt roads linking it to Mongolia's capital city
Ulaanbaatar.

From the center of the Nergui license it is 55km by road to the
Erdent-Daikhan Railway which links directly to Mongolia's main railway
130km due east. The railroads connect Nergui to Mongolia's capital
UlaanBaatar before continuing south onto Beijing, China and the Yellow
Sea. Northwestward the lines link Mongolia with Moscow, Russia and
onwards to Europe.

UGL Enterprises now has 100% ownership of four Uranium projects (in
addition to its seven gold/copper projects) all located in some of
Mongolia's most prospective uranium regions.

UGL has built its Uranium portfolio based in part upon the extensive
exploration results/data that was amassed during the Russian government
authorized exploration programs conducted primarily during the Cold War.

UGL Enterprises has the ability to conduct simultaneous exploration
programs on three or more Uranium projects inside Mongolia. An
exploration program similar to the proposed Nergui program will also be
conducted on UGL's Maikhan property in the very near future. (See UGL
press release Feb. 22/05)

Further information on UGL's Uranium (and other) properties, including
Nergui, can be found at www.uglenterprises.com.

In consideration for a 100% interest in the Nergui property UGL
Enterprises has agreed to pay the vendor US$136,500 US dollars and
250,000 shares of UGL at a deemed price of $0.60 per share. This
transaction is subject to exchange approval.

ABOUT UGL

UGL Enterprises Ltd. is a junior resource company trading on the
TSX-Venture Exchange under the trading symbol "UGS". UGL Enterprises has
eleven uranium, gold and copper exploration projects located throughout
Mongolia. The Company has a strategic alliance with Mine Info Ltd., a
leading Mongolian Exploration company, and has a full time office in the
capital city, Ulaan Baatar.

Forward-Looking Statements: Statements in this release that are
forward-looking statements are subject to various risks and
uncertainties concerning the specific factors disclosed under the
heading "Risk Factors" and elsewhere in the Corporation's periodic
filings with Canadian Securities Regulators. Such information contained
herein represents management's best judgment as of the date hereof based
on information currently available. The companies do not assume the
obligation to update any forward-looking statement.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    UGL Enterprises Ltd.
    Arnold Armstrong
    President/CEO
    (604) 683-7361
    or
    UGL Enterprises Ltd.
    Paul McKenzie
    Director
    (604) 689-1810
    info@uglenterprises.com
    www.uglenterprises.com
    or
    Fuller Fletcher & Associates Ltd. of London, UK
    European Investor Inquiries
    +44 (0) 20 7256 5204
    info@fullerfletcher.com
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.