Uranium Power Corp.

Uranium Power Corp.

March 22, 2005 11:37 ET

Uranium Power Corp., Formerly Bell Coast Capital Corp., Options Sahara Uranium Mine, Utah


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: URANIUM POWER CORP.

TSX VENTURE SYMBOL: UPC

MARCH 22, 2005 - 11:37 ET

Uranium Power Corp., Formerly Bell Coast Capital
Corp., Options Sahara Uranium Mine, Utah

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 22, 2005) - Uranium
Power Corp. ("Uranium Power") (TSX VENTURE:UPC) is pleased to announce
that it has signed a letter of intent to option the Sahara Uranium Mine
located in Emery County, Utah USA. The Sahara Mine is approximately 14
miles (23km) SW of Green River, Utah. The property consists of over 375
unpatented lode-mining claims located on BLM land and five State of Utah
mining leases. The mine was developed in the late 1970's, with a decline
being driven approximately 2,600 ft (792m) and an additional 700 ft
(213m) of lateral development being completed. Mining was halted almost
immediately after it was started in 1980. Old mine records indicate that
only one truckload of ore was shipped in the 80's. The records of the
mine operator, Energy Fuels Nuclear, indicate a proven and probable
resource of approximately 500,000 lbs U3O8 with an average grade of
about 0.23% U3O8. Similar amounts of vanadium are predicted to exist.

The uranium mineralization is located in the Salt Wash member of the
Morrison formation in the upper Jurassic. The deposits are localized in
sandstones that fill paleo-stream channels, where organic material
creating a reducing environment. In this area, these channels typically
trend to the northeast. Drilling beyond the immediate mine area
indicates excellent potential to add to the resource base within the
project lands, by following the strike of the channels.

Previous drilling to 1959 delineated the Sahara Mine deposit. A 550-foot
decline was sunk and a small portion of the resource was mined
intermittently through 1977 by Trio Industries and others. In 1977,
Energy Fuels Nuclear bought into the project and ramped up drilling.
Over 450 reverse circulation drill holes, many about 500 feet in depth,
were used to delineate the first 1800 feet of the Sahara trend. Energy
Fuels geologist reported to the Vendors in various annual reports to
from 1985 to 1990 that the formation contained about 500,000 lbs
proven/probable U3O8 at an average grade of about 0.23% U3O8. Vanadium,
they estimated, existed in the formation in a ratio of between 1/1 and
1/2 Uranium/Vanadium, with the actual value probably closer to the 1/1
ratio. Their estimates and use of language predates the current JORC
standards.

Over 37 % of approximately 450 holes drilled on the Sahara mine property
intersected ore grade mineralization, according to Jim Andrus, former
Chief Uranium Geologist at Energy Fuels Nuclear. This included all wide
spaced exploration drilling done on the property, which showed that the
Sahara trend could be followed for over a mile across the old claims
block. The last wide spaced ore intercept occurred within 150 feet of
the former northern property boundary. Company geologists estimated in
the 1985 annual report that "The potential for developing over a million
lbs of U3O8 is very good" on that portion of the Sahara Trend then
controlled by Energy Fuels Nuclear. Additional properties in the current
land package follow the probable extension of the Sahara Trend to the
north and east. Substantial drilling in these areas did not occur
because Energy Fuels did not control the land position now controlled by
the Vendor and included in the land to be optioned to Uranium Power.

The resource calculations referred to in this release were not prepared
in the manner compliant with the guidelines published in National
Instrument 43-101.

In 1979, the Sahara Mine project was begun with the intention of mining
the Resource on the Sahara Trend and 3 Phase, 440 electricity was routed
to the property. A new haulage decline was driven to the area of
previous mining and the old decline cleaned out for extra ventilation.
700 feet of haulage drifts were completed. Pumping facilities to dewater
the mine were added, and two settling ponds completed.

By 1980, only one truckload of ore had been shipped to the Energy Fuels
mill facility near Blanding, Utah when the Three Mile Island Nuclear
accident occurred. At that point, no further mining went forward. The
facility was placed on standby and remained so until the early 1990's,
when Energy Fuels Nuclear, then facing financial setbacks, withdrew from
the project and reclaimed the property. All drill records, maps,
reports, etc. were turned over to the current owners and remain in their
possession to this day. Sahara Mine records indicate that development
expenditures on the property by Energy Fuels Nuclear during the 1970's
and 1980's exceeded $10,000,000 in today's dollars.

Note: References to reports by J.R. Andrus (1990: Sahara Claims,
1989-1990 Completion Report: Internal report for Energy Fuels Nuclear
Inc. and 1986: Sahara Claim Group, 1985 Annual Report Completion Report:
Internal report of Energy Fuels Nuclear Inc.) are considered relevant
and reliable, however Uranium Power has not independently verified these
reports.

Under the terms of the agreement, Uranium Power would initially option
70% of the Sahara Mine and surrounding properties based on the following
terms:

Upon signing by the Parties of a definitive agreement and after a due
diligence process to be completed by Uranium Power on or before April
30, 2005, Uranium Power will pay US$150,000 cash and issue 100,000
shares of Uranium Power Corp.

Uranium Power will commit to spending a minimum of US$750,000 in
exploration and development of the Sahara Mine Property in the first 2
years. An advance royalty payment of US$50,000 will be due in year 2.

In years 3 and 4, the advance payment and work program of Uranium Power
will be indexed to the Long Term contract sales price of U3O8 (LT U3O8),
as it exists on the anniversary date of the signing of the definitive
agreement in years 3 and 4. If the LT U3O8 is at or above US$40.00/lb,
Uranium Power will pay an advance payment of US$100,000 and commit to
$1,000,000 in work per year in both years. If the LT U3O8 is below
US$40.00/lb, the advance payment will be US$50,000 in both years, and
the work commitment will be US$500,000 in both years.

In years 5 to 11, the yearly advance payment will be keyed to the LT
U3O8 price as stated for years 3 and 4 above. If the LT U3O8 is at or
above US$40.00/lb, Uranium Power will pay a yearly advance payment of
$100,000 per year and $50,000 per year if below US$40.00/lb in all years.

Upon completion of the work commitment and positive feasibility, Uranium
Power would earn a 70% interest in the Sahara mine property. Uranium
Power would retain an option to acquire an additional 10% interest in
the property at any time for $1,000,000 cash, and beyond that, an
additional 5% interest in the property for $2,000,000 cash.

The Vendor and buyer will split equally any finder's fee payable to Jim
Petit (up to a total for both parties of $15,000.).

The agreement will be subject to prior acceptance for filing by the TSX
Venture Exchange.

To find out more visit our website at www.bellcoastcapital.com

URANIUM POWER CORP.

Rahoul Sharan, President

WARNING: The Company relies on litigation protection for "forward
looking" statements. Actual results could differ materially from those
described in the news release as a result of numerous factors, some of
which are outside the control of the Company.

This news release does not constitute an offer to sell or a solicitation
of an offer to sell any of the securities in the United States. The
securities have not been and will not be registered under the United
States Securities Act of 1933, as amended (the "U.S. Securities Act") or
any state securities laws and may not be offered or sold within the
United States or to U.S Persons unless registered under the U.S.
Securities Act and applicable state securities laws or an exemption from
such registration in available.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Uranium Power Corp.
    Rahoul Sharan
    President
    (604) 689-1810
    (604) 689-1817 (FAX)
    www.bellcoastcapital.com
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of the content of this News
    Release.