Uranium Energy Corp

Uranium Energy Corp

January 29, 2008 09:00 ET

Uranium Energy Corp Announces Progress With Drilling at Its Goliad Project

AUSTIN, TEXAS--(Marketwire - Jan. 29, 2008) - Uranium Energy Corp (AMEX:UEC)(FRANKFURT:U6Z)(BERLIN:U6Z) announces continuing development at the Company's Goliad Project in Texas. Notable developments include:

- Continuing success with step-out drilling that is increasing the extent of known mineralized trends in both B and D Sands at Goliad;

- Ongoing drilling to support the permitting process, extensive coring program; and

- Addition of quality technical personnel at the project site.

Drilling and Coring Program

Uranium Energy Corp is pleased to report continued progress with drilling activities toward the permitting of its Goliad Project in Goliad County, Texas. The Company filed its mining permit application in August 2007. Drilling is ongoing with seven drilling rigs.

Drilling in November and December 2007 at Goliad consisted of 116 drill holes, targeting the B and D Sands. Sixty-two (62) of the drill holes targeted the B Sand and 54 were drilled principally to assess D Sand mineralization in the project area.

Number Strongly No
Zone of holes Mineralized Mineralized Shows Shows
A A Zone Not Targeted
B 62 15 31 16 0
C C Zone Not Targeted
D 54 2 17 34 1
Strongly Mineralized - Uranium mineralization above a GT of 0.30
Mineralized - Uranium mineralization between GT's of 0.2 and 0.3
Show - Gamma anomaly to less than 0.2GT
No Show - Barren

Drilling in the B Sand was for regulatory and permitting activities. Rather than continuing to confirm historical mineralization or step-out drilling, the B Zone drilling activities during this period concentrated on identifying the limits of mineralization around the strongly mineralized area. In order to obtain a Production Area Authorization (PAA) permit from the Texas Commission on Environmental Quality (TCEQ), the lateral extent of the mineralized area must be determined. For this reason, drill holes were located to define the limits of the strongly mineralized B Sand.

The November-December program included:

- Obtaining information for Production Area Authorization - 1 to submit to TCEQ for B Sand, which included

- drilling to delineate the outline of the B Sand mineral zone;

- in-fill drilling to verify continuity of the identified mineral layers; and

- verification of confining zones above and below the B Sand.

Fifty-four (54) step-out holes were drilled to evaluate D Sand gamma anomalies. Of these, 17 encountered significantly elevated gamma zones and two encountered high-level gamma zones. These intercepts indicate an extension of the current mineralized trend in the D Sand.

Results of the November-December drilling program include:

- Extending the B Sand and further defining the strongly mineralized trend in order to commence PAA-1 drilling; and

- Identifying new strongly mineralized zones in previously un-drilled areas in the D Sand.

In October 2007, the Company undertook an extensive coring program designed to support the historic Goliad disequilibrium factors (DEFs), developed from prompt fission neutron (PFN) logging during the early 1980's. DEF refers to the ratio of the actual grade of uranium in the rock to the grade obtained from gamma ray logging. A positive DEF of 1.0 or greater indicates a higher grade of uranium than what is obtained from logging. Historic DEFs in the range of 1.4 to 1.7 were demonstrated in each of the four mineralized sand zones by PFN logging at the Goliad Project.

In order to confirm the historic PFN DEF data, three holes were cored through each mineralized interval of the four sand zones, offsetting previously drilled, highly mineralized holes. Between 15 and 20 samples, one-foot each, were collected from each hole, or approximately 45-60 samples from each zone. The samples were shipped to Energy Laboratories in Casper, Wyoming, an independent certified minerals lab, for analysis of chemical uranium content and eU3O8. From these analyses, DEFs for each one-foot interval can be calculated. The table below presents the gamma ray data obtained from logging each of the core holes. This data will be compared to the laboratory analytical data when received.

Cored Interval Mineralization Grade GT
Hole ID Sand (ft) Thickness (ft) (%) (ft%)
CA-1 A 105.5 to 128.6 26.0 0.091 2.366
CA-2 A 107 to 136 12.5 0.049 0.609
CA-3 A 80 to 101 17.5 0.066 1.155
CB-1 B 166 to 182.6 9.0 0.089 0.801
CB-2 B 190 to 204.5 2.5 0.035 0.087
CB-3 B 185 to 201.1 5.5 0.031 0.171
CC-1 C 172.5 to 191.5 2.0 0.028 0.056
CC-2 C No sample recovery through mineralized zone.
CC-3 C 250 to 269.7 6.5 0.037 0.241
CC-4 C 240 to 258.5 8.5 0.047 0.400
CD-1 D 305 to 324.5 less than 0.02
CD-2 D 380 to 401.3 2.0 0.031 0.062
CD-3 D 390 to 410.3 16.0 0.056 0.896

- Grade cutoff was at 0.02%, consistent with the 43-101 historic resource

The results of the coring program will be used to support the development of a Canadian National Instrument 43-101 qualified resource. National Instrument 43-101 is the Canadian requirement for disclosure of historic and ongoing work on mineral bodies leading up to their development and ultimate mining. Only mineral bodies meeting the stringent criteria as described in the document can be classified as a 43-101 qualified resource.

Project Technical Staff Additions

Uranium Energy Corp is pleased to announce at this time the addition of two Production Geologists to the Company's Goliad Project production staff. Augio Bian, PhD, Texas A&M University-College Station, is a research hydrogeologist who will be supporting both the geological and engineering teams. Dr. Bian recently received his degree and will bring a considerable technical background to the project. Carl Wentz, received his BSc in Geology in 2000 from Texas A&M University-College Station. Mr. Wentz brings seven years of practical field geology skills as well as environmental compliance experience to the project. He will also be supporting both the geological and engineering teams.

The technical information in this news release was prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 and reviewed by Clyde L. Yancey, P.G., Vice President of Exploration for Uranium Energy Corp, a qualified person under NI 43-101.

About Uranium Energy Corp

Uranium Energy Corp (AMEX:UEC) is a US-based junior resource company with the objective of becoming a near-term ISR uranium producer in the United States. The Company 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.

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.

Contact Information

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    Email: info@uraniumenergy.com