Uranium Bay Resources Inc.
TSX VENTURE : UBR

Uranium Bay Resources Inc.

July 14, 2008 10:56 ET

Uranium Bay Identifies Another 21 New Discrete Uranium Anomalies on Kauschiskach Uranium Property That are Worthy of Follow-Up

MONTREAL, QUEBEC--(Marketwire - July 14, 2008) - Uranium Bay Resources Inc. (TSX VENTURE:UBR) is pleased to inform shareholders that Geoff Campbell, GAP Geophysics director, has completed the Kauschiskach Uranium Property ("KUP or K1") geophysical report based on the summer 2007 helicopter airborne survey. Several significant uranium anomalies have been identified.

Further to the receipt of these results UBR technical team has completed a preliminary ground follow-up investigation that indicate the presence of at least one large zone of low-grade mineralization. A 600 - 1,000m drilling programme to investigate this mineralization will commence shortly after the completion of the UUP drilling programme.

The interpretation map is attached to this press release and will be available on the UBR website at www.uraniumbay.com.

The highlights of the report are that:

- More than 21 discrete uranium anomalies have been identified;

- Several of these anomalies have significant length and area;

- Several semi-regional "halo" zones(1) of enhanced uranium activity have been mapped. There are numerous "hot-spot" zones".

- These "hot-spot zones" are up to 1 500 m longest (continuous) dimension; and

- The discrete radiometric anomalies outlined on the interpretation map are worthy of significant ground-follow-up interest."

(1) These areas are shown on the attached map (http://media3.marketwire.com/docs/UBR_Map0714.pdf) as the large areas in the map with thin green horizontal or vertical lines.

Subsequent to receipt of the GAP report UBR has completed a helicopter borne preliminary investigation of the key anomaly identified in the north-west part of the property. This anomaly is a late stage intrusive granite of monzo-granitic composition (quartz and feldspar rich which is not banded) intruded into an earlier, very slightly banded whitish granite. The intrusive relationship is complex but uranium grade appears to increase towards the centre of the intrusive (away from the margins).

On the basis of these results UBR plans on drilling, during July and August 2008, some 600 - 1000m at K1 as part of the Uskawanis drilling programme

Background to the K1 Project

The K1 deposit is located some 60 kms north of La Grande 3, James Bay. The geology is Archaean granites of the Superior Province. The local geology consists of a monzonitic (white) granite intruded into an earlier slightly banded, slightly coarser grained pale granite that has numerous pegmatites and quart veins. The intruding granite tends to be very homogeneous and has few veins of any sort.

The uranium/ thorium is present at elevated levels in the younger granite. The central zone of this granite appears to have the better uranium grades (from handheld spectrometer) and the grade distinctly drops towards the margin of the intrusive. This is seen on the ground and from the airborne radiometry which shows a well defined higher grade core.

Mr. Bernard Tourillon, UBR's Chairman and CEO, comments:

"The discovery of more uranium mineralization on the K1 property combined with the already identified uranium mineralization on the Uskawanis and Wakeham properties increases the visibility of the UBR portfolio of uranium projects."

UBR's driven, methodical and scientific approach to Uranium exploration confirms our leadership position in Uranium exploration in the Province of Quebec, currently recognized as one of the best jurisdiction in the world for natural resource exploration.

Note

Mr. Vivian Stuart-Williams, (SACNASP), a Director of the Company and a Qualified Person as defined by National Instrument 43-101, supervised the preparation of the information in this news release.

Flow Through Financing

The Corporation announce that it has closed a non-brokered private placement in the amount of CND $453,000, for the sale of 4,118,181 flow-through units ("FT Unit"), at a subscription price of $0.11 per FT Unit.

Each FT Unit will consist of one (1) Flow-Through Share and one-half (1/2) non-flow-through common share purchase warrant of the Company ("Warrant"). Of the subscription price of CND $0.11 per FT Unit, the Company intends to allocate $0.109 to the price of the Flow-Through Share comprised in each FT Unit and $0.001 to the price of the Warrant comprised in each FT Unit. Each full Warrant will entitle the holder thereof, during a period of 24 months from the date of closing of the placement, to purchase one (1) common share at an exercise price of $ 0.18 per Common Share. Each share issued will have a mandatory four (4) month holding period from the date of closing of the placement.

Limited Market Dealer Inc. will receive a 3.12% finder's fee paid by way of 128,363 Common shares and 7.8 % finder's warrants, which will allow the finder to acquire 320,909 common shares at an exercise price of CDN $0.18 during a period of 24 months from the date of closing of the placement. Augen Gold,Corp. will receive a 0.88% finder's fee paid by way of 36,363 Common shares and 2.2 % finder's warrants, which will allow the finder to acquire 90,909 common shares at an exercise price of CDN $0.18 during a period of 24 months from the date of closing of the placement.

In another corporate matter

Uranium Bay also announces that its Board of Directors has granted 1,850,000 share purchase options at an exercise price of $0.11 per share to directors of the Corporation. These options are valid until July 14, 2011.

The option grant is subject to regulatory approval.

About Uranium Bay Resources Inc.

Uranium Bay Resources Inc. is a Canadian based junior resource and exploration company trading under the symbol UBR on the TSX Venture Exchange. The Company has 81,385,731 shares outstanding. The Company holds 100% of several U3O8 mineral exploration properties including the 314 km2 Uskawanis Uranium property located just south of the Opinaca reservoir, the 90 km2 Kauschiskach Uranium property located just 100 km NE of Radisson in the Quebec James Bay area of northern Quebec, and the five properties totalling 197 claims covering the Lac Georges (100 claims), Lac Forget (24 claims), Ruisseau Lebrun (38 claims), Maurice (19 claims) and Bloc extension 06 (16 claims) properties located in the Wakeham area, in eastern Quebec. In addition the Company holds two Namibian concessions known as Gunib and Grootfontein.

The TSX Venture Exchange (TSX-V) does not accept responsibility for the adequacy or accuracy of this release. This news release contains forward-looking statements reflecting Uranium Bay objectives, estimates, expectations and the impact of acquisitions on Uranium Bay's financial performance. These statements are identified by the use of verbs such as "believe", "anticipate", "estimate", and "expect" as well as by the use of future or conditional tenses. By their very nature, these types of statements involve risks and uncertainty. Consequently, reality may differ materially from Uranium Bay's projections or expectations.

Contact Information

  • Uranium Bay Resources Inc.
    Bernard J. Tourillon
    President and CEO
    514-846-3271
    Toll-free 1-888-666-3431
    or
    Uranium Bay Resources Inc.
    Guy Girard
    VP and CFO
    514-846-3271
    Toll-free 1-888-666-3431