UGL Enterprises Ltd.

UGL Enterprises Ltd.

January 17, 2006 09:00 ET

UGL Enterprises Ltd.: Behre Dolbear & Company Engaged to Prepare NI 43-101 Technical Report and Modeling for Ulaan Ovoo Coal Project, Mongolia; Final Ulaan Ovoo Purchase Agreement Signed

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 17, 2006) - UGL Enterprises Ltd. (TSX VENTURE:UGS) ("UGL") reports that the final agreement to purchase the Ulaan Ovoo coal project, northern Mongolia, has been signed and that UGL has contracted Behre Dolbear & Company (USA), Inc. to complete assessment and modeling of the historical inferred 78 million tonne bituminous coal resource (see November 22, 2005 Press Release) and surrounding area of interest. The assessment will include completion of a NI 43-101 compliant Technical Report and the interpretation, collation and digitization of the project's historical drilling (66 holes) and sampling data. An exploration and development program of infill and step-out drilling and coal sampling will be designed to further validate, upgrade and expand the project's historical resource estimates. Work on the reports has already commenced and is scheduled to be completed by February 28, 2006.

The exploration and development program is designed to develop a Resource estimate compliant with NI 43-101. This will also advance a planned scoping study designed to outline potential of the Ulaan Ovoo project to become a new, long-life, large producing bituminous coal operation. The Company is currently evaluating proposals for the scoping study.

The Ulaan Ovoo project is in the large Jurassic-age Zelter coal basin in northern Mongolia, very close to the Russian border. Detailed work on the Ulaan Ovoo project, performed in 1975 by the Mongolian Ministry of Geology and Energy and in 1993-1997 by Erdenet, a Mongolian state-owned mining and processing company, defined a substantial area of hard coal together with a significant area of additional potential. The excellent exploration results combined with strong bituminous coal prices, excellent project infrastructure and proximity to expanding markets are very encouraging for the Ulaan Ovoo project.

The project is well situated to supply Russia, Northern China and many parts of Asia with low-sulphur, high-volatile bituminous coal having an average heating value of approximately 7,300 kcal/kg. (equivalent to 13,270 BTU/ton). These qualities are amenable for power generation. The main Mongolian railroad which links Mongolia with Russia, China, and deep sea ports is only 120 km's east at Shaamar and is accessible year round by unpaved road. The project is only 8 km's by year round unpaved road from the Russian border. Russia is the world's 6th largest coal importer and in 2003 imported 24 million tonnes of coal (World Coal Counsel).

The company currently is involved in preliminary marketing discussions with potential coal buyers in several countries. The Mongolian government has issued the Ulaan Ovoo Project a transferable 55 year mining license with a 45 year extension option. Successful marketing negotiations could lead to early production.

Behre Dolbear is one of the oldest, continually operating minerals industry consulting firms in the world, they offer fully integrated management consulting and technical advisory services specializing exclusively in the minerals industries from offices around the world. Behre Dolbear has successfully performed numerous coal assignments globally for major and junior mining companies alike.

Effectively immediately, UGL Director Mr. Ranjeet Sundher has been appointed President of UGL, replacing Mr. Arnold Armstrong who will retain his role as CEO and is appointed Chairman of the Board.


UGL Enterprises Ltd. is a junior resource company trading on the TSX-Venture Exchange under the trading symbol "UGS". UGL has 18 uranium properties, 9 gold and copper exploration projects, and has recently contracted to acquire the Ulaan Ovoo Coal project, all located in Mongolia. UGL has a strategic alliance with Mega Uranium Ltd. to jointly develop its uranium assets, and with Mine Info Ltd., a leading Mongolian exploration service company. UGL has a full time office in Mongolia's capital, Ulaanbaatar.

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.

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

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