Uranium Energy Corp
OTC Bulletin Board : URME

Uranium Energy Corp

November 21, 2006 09:06 ET

Uranium Energy Corp Increases Historically-Drill Proven Uranium Resources with Addition to South Texas Portfolio

AUSTIN, TEXAS--(CCNMatthews - Nov. 21, 2006) - Uranium Energy Corp (OTCBB:URME)(FWB:U6Z)(BERLIN:U6Z) is pleased to announce the acquisition of 100% of the Nichols Project, with an historic resource of 1.2 million pounds of uranium, located in South Texas.

The Nichols Project consists of 900 acres, and is located within the heart of the historic Karnes County uranium mining district. Karnes County is immediately adjacent to Goliad County, the site of the Company's advanced Goliad Project operations. The property was originally developed by Texaco Uranium (now ChevronTexaco), and reportedly contains an historic resource of 1.2 million pounds of e-U3O8. Uranium Energy Corp is currently negotiating with a third party to acquire all or part of the Texaco exploration and development database associated with this deposit.

Data reviewed to date, including gamma logs from oil wells in the immediate area of the deposit, indicate that the ore body lies within the Tertiary age Jackson Formation, and occurs at an average depth of 440 feet. Texaco Uranium's plans to mine this deposit using In-Situ Leach (ISL) mining methods suggests that the geology of the property is amenable to this environmentally and economically superior technology.

Uranium Energy Corp has submitted an application with the Texas Railroad Commission for an exploration permit to allow a drilling program to verify the reported resource. This will be the Company's fourth planned drilling site in the United States, and the second in the state of Texas. Each drill program, including Nichols, has the objective of confirming historically drill-proven uranium resources, as well as expanding indicated uranium resources as suggested by the historical drilling databases in our possession, with a view towards developing mineable reserves.

About Uranium Energy Corp

Uranium Energy Corp. (URME: OTCBB) is a US-based junior resource company with the objective of becoming a near-term ISL uranium producer in the United States. The Company is developing its advanced stage Goliad Project in South Texas, with ISL uranium production projected to begin in 2009. Uranium Energy Corp controls one of the largest historical uranium exploration and development databases in the US and 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.

Contact Information

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