Universal Uranium Ltd.
TSX VENTURE : UUL

Universal Uranium Ltd.

January 18, 2006 09:10 ET

Universal Uranium Options Interest in Silver Spruce's Labrador Properties

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 18, 2006) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Universal Uranium Ltd. (the "Company") (TSX VENTURE:UUL) is pleased to announce that it has optioned, from Silver Spruce Resources (SSE), the right to earn a majority interest in their 4,963 claim property (approximately 124,000 hectares/300,000 acres), in the Central Mineral Belt (CMB) of Labrador, Canada. Under the terms of the agreement, Universal can earn a 60-per-cent interest by spending $2-million on exploration over a three year period with a minimum of $500,000 the first year and $750,000 each of the following two years. During the earn in period Silver Spruce will be the operator.

Silver Spruce's claims are on strike with properties that lie both to the east and west of those held by Aurora Energy Inc. (Fronteer/Altius group) and Crosshair Exploration and Mining Corp. These companies staked known uranium showings and deposits, and carried out airborne radiometric surveys, which resulted in the location of new uranium showings in a number of areas which they are now drill testing. As a result of the exploration results and the rise in price of uranium, the CMB has seen extensive claim staking over the past few months.

Universal and Silver Spruce, following the lead of the earlier successful explorers, will carry out an extensive exploration program which will include airborne radiometric and magnetic surveys and ground follow up including geophysics, geochemistry, prospecting and geology, in 2006. Trenching and drilling will test mineralization located.

Universal Uranium Ltd. is a publicly held Canadian uranium exploration company focused on acquiring, exploring and developing uranium 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:

Clive H. Massey, President

In addition, this release is not for distribution to U.S. newswire services or for dissemination in the United States.

Standard & Poor's Listed

Issued Share Capital: 22,354,339


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