Universal Uranium Ltd.
TSX VENTURE : UUL

Universal Uranium Ltd.

May 20, 2008 09:00 ET

Universal Uranium Ltd. Acquires Strategic Potash Property and Announces $3.15 Million Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 20, 2008) - Universal Uranium Ltd. (the "Company") (TSX VENTURE:UUL) is pleased to announce that it has entered into an agreement, subject to regulatory approval, to acquire a 100% interest in 816 claims totaling 204 sq km (the "Property") located in the St.George's Bay Basin in western Newfoundland, from Alpha Uranium Resources Inc.

The St.George's Basin is geologically analogous to the Moncton subbasin in New Brunswick, which is Canada's second major potash mining district. The Property is bordering properties currently held by Altius Resources Inc., Sprott Resource Corp. and Vulcan Minerals (view map at www.universaluranium.com).

Previous drilling in several areas of the St. George's Basin have revealed large thicknesses of evaporitic rocks hosting significant beds of potash and carnallite. Universal plans to compile and re-interpret the historical data on the property in preparation for undertaking additional geophysical surveys on the newly acquired ground. Subsequent drilling will begin on the most favorable targets during the upcoming field season.

Under the terms of the Agreement, the Company will acquire a 100% interest in the Property by paying on closing; (i) CDN$40,000 in cash and, (ii) 500,000 previously unissued common shares of the company. The deemed price of these shares will be the closing price of the company's shares on the day of this news release. A finder's fee will apply in this transaction.

Ron Atlas, President and CEO of Universal Uranium, states: "Universal has, up till now, acquired and developed only uranium properties, and will continue to develop those assets. However, we feel that the reasons for acquiring such a strategic potash property, were simply too compelling."

In conjunction with this acquisition, the Company has arranged a non-brokered private placement consisting of 7,000,000 units at $0.45, for total proceeds of $3.15 million. Each unit consists of one common share and one whole transferable share purchase warrant. Each warrant is convertible into one common share at a price of $0.65 for a period of twenty-four (24) months. The proceeds from this financing will be used for working capital, development of the newly acquired property and development of our existing uranium projects. A finder's fee will apply in this private placement in accordance with the policies of the TSX Venture Exchange. The financing is subject to regulatory acceptance.

Universal Uranium Ltd. (TSX VENTURE:UUL) is a publicly held Canadian exploration company focused on acquiring, exploring and developing mineral properties located in favorable geo-political climates. The company is led by a highly skilled, experienced board and management team with significant successes in managing early stage mineral exploration companies.

ON BEHALF OF THE BOARD:

Ronald Atlas, President & Chairman of the Board

The Company seeks Safe Harbour.

Standard & Poor's Listed

Issued Share Capital: 44,115,069

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

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