Uranium Energy Corp
OTC Bulletin Board : URME
FRANKFURT : U6Z
BERLIN : U6Z

Uranium Energy Corp

March 05, 2007 09:01 ET

Uranium Energy Corp Announces Confirmation Drilling Results and Progress on Permitting of Its Goliad Project in South Texas

AUSTIN, TEXAS--(CCNMatthews - March 5, 2007) - Uranium Energy Corp (OTCBB:URME)(FRANKFURT:U6Z)(BERLIN:U6Z) -

Highlights include:

1) Highest Grade Thickness Intersection to Date: 35 ft of 0.11% (3.78 GT) at 155 ft depth

2) Favorable Results from B Sand Ore Zone Suggest Resource Expansion

Uranium Energy Corp is pleased to announce the results of continued confirmation drilling and progress on mine permitting at its 100% controlled Goliad project in Goliad County, Texas. The Company began confirmation drilling on the Goliad property in May 2006 and is continuing drilling at the present time. The drilling objectives include (1) confirming 5.2 million pounds of historically indicated resources as defined by Moore Energy in the late 1980s, and (2) extending historically identified mineral trends.

Since the last drilling report dated November 9, 2006, the Company has completed 109 confirmation drill holes. Fifty-two were completed in 2006 after November 9, and an additional 57 holes were drilled in January and February. Confirmation drilling in the latter part of 2006 was concentrated on two key mineral leases in the western part of the project area comprising the majority of the 5.2 million pounds delineated by Moore Energy. Ore-grade mineralization is contained in four stratigraphically separate sands in this area. These sands were designated by Moore Energy as the A, B, C, and D Sands. Ore-grade mineralization at Goliad is defined as grade multiplied by thickness, or a Grade Thickness (GT) greater than 0.3. Forty-two of the 109 confirmation holes encountered ore-grade mineralization. Twelve of the ore grade holes were in the A Sand, 20 were in the B Sand, 4 were ore-grade in the C Sand, and 6 holes were ore-grade in the D Sand.

Initial 2007 drilling efforts to date have targeted the B Sand and C Sand ore bodies. Of the 57 holes drilled to date in 2007, 23 have intersected ore-grade mineralization. Favorable results suggest that resources within the B Sand ore body may be expanded. Some selected ore grade intercepts encountered since the last drilling report are provided in the table below. GT values from these holes ranged from 0.49 to 3.78.



SELECTED ORE GRADE CONFIRMATION HOLES

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Avg. Grade Grade Thickness
Hole # Sand Ore Thickness (Ft) (%) GT
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32201-N65 B 28.0 0.074 2.07
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32201-N66 B 12.5 0.059 0.73
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30892-74C A 26.0 0.040 1.04
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32201-N77 B 23.0 0.124 2.85
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32201-N79 B 7.0 0.079 0.55
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32201-N80 B 11.5 0.095 1.09
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32201-N81 B 32.5 0.066 2.14
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32201-N97 B 12.5 0.055 0.68
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32201-100C B 35.0 0.108 3.78
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32201-N11 C 21.5 0.023 0.49
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32201-N53 C 13.0 0.039 0.50
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32202-97 A 25.0 0.042 1.05
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32202-117 A 17.5 0.062 1.08
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30892-99 D 43.0 0.052 2.23
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30892-102 D 21.0 0.060 1.26
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Samples from three core holes in the A Sand taken during Phase I drilling in 2006 are presently undergoing laboratory analyses to confirm the degree of disequilibrium in the ore body. Specialized downhole logging by Moore Energy in the 1980s indicated positive disequilibrium factors ranging from about 1.4 to 1.7 in the various mineralized sands. Positive values indicate that the mineralized zones are higher grade than standard gamma ray logging indicates.

The Company will continue confirmation drilling through March 2007 with five drilling rigs. Upon completion of the confirmation drilling program, the Company will begin on-trend drilling seeking extensions of Goliad Sand mineralization.

Mine Permitting Progress

Uranium Energy Corp is progressing through the requirements by the Texas Commission on Environmental Quality (TCEQ) for a Mine Permit. An essential part of the Mine Permit is to establish the regional baseline, or background, water quality conditions within the area to be mined. As part of the establishment of baseline water quality conditions within the planned permit area, the TCEQ required that fourteen regional water quality wells be installed within the proposed permit area. The purpose of the wells is to assess the pre-mining water quality of the four mineralized sands (A, B, C, and D). At this time six of the fourteen wells have been installed and sampled.

Also included in the establishment of regional baseline water quality conditions is the sampling and analysis of private water wells within a 1-kilometer radius of the permit area. This action has been completed.

About Uranium Energy Corp

Uranium Energy Corp (OTCBB:URME) is a US-based junior resource company with the objective of becoming a near-term ISR uranium producer in the United States. The Company is developing its advanced-stage Goliad Project in South Texas, with ISR uranium production projected to begin in 2009. Uranium Energy Corp controls one of the largest historical uranium exploration and development databases in the US. Through the use of these databases, the Company has acquired advanced uranium properties throughout the southwestern US. The operational management is comprised of pre-eminent uranium mining and exploration professionals, whose collective experience in the uranium mining industry gives the Company ongoing uranium mine-finding and uranium mine development expertise. Uranium Energy Corp is well positioned to capitalize on the current alternative energy boom. For more information, please visit www.uraniumenergy.com.

Safe Harbor Statement

This news release contains forward-looking statements within the meaning of Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities and Exchange Act of 1934, as amended. Statements in this news release, which are not purely historical, are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. These statements involve risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements contained herein. Such risks and uncertainties may include, but are not limited to, the impact of competitive products, the ability to meet customer demand, the ability to manage growth, acquisitions of technology, equipment or human resources, the effect of economic and business conditions, the ability to attract and retain skilled personnel and factors outside the control of the Company. These forward-looking statements are made as of the date of this news release, and the Company assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although the Company believes that the beliefs, plans, expectations and intentions contained in this news release are reasonable, there can be no assurance those beliefs, plans, expectations or intentions will prove to be accurate. Investors should consider all of the information set forth herein and should also refer to the risk factors disclosed in the Company's periodic reports filed from time-to-time with the United States Securities and Exchange Commission. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

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