Uranium Power Corp.

Uranium Power Corp.

March 23, 2006 09:30 ET

Uranium Power Corp. Updates Burro Canyon Drilling

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 23, 2006) - Uranium Power Corp. ("UPC") (TSX VENTURE:UPC) and U.S. Energy Corp. (NASDAQ:USEG) are pleased to announce highly encouraging results from their recently completed drilling program on the Burro Canyon uranium project in San Miguel County, Colorado. A total of 17 holes were drilled, for a cumulative total of 20,303 feet. Of the 16 holes that reached the target Salt Wash formation, 9 encountered significant mineralization, and two can be considered to be well-mineralized. In addition, zones of anomalous radioactivity up to 65 feet in thickness were encountered.

The program was designed as a first test of the area, with widely-spaced holes (400 to 800 feet apart). The primary objective was to define the depositional environment prior to more closely-spaced drilling. The thick zones of anomalous radioactivity, located within sandstone horizons, are indicative of a sand channel with reducing capacity, a characteristic that is essential for the deposition of uranium. The substantial thicknesses encountered in the current drill program, when combined with the significant mineralization in 9 of the holes, represent highly encouraging results.

The holes were drilled by Bob Beeman Drilling, of Moab, UT, using standard rotary drilling techniques. All holes were geophysically logged by Century Geophysical, of Tulsa, OK. Uranium contents were calculated from the gamma ray log, producing a record of eU3O8 (equivalent U3O8), an industry standard method for evaluating uranium mineralization. To date, no coring has been carried out on the project. Coring will be necessary at a later date to determine whether or not the uranium is in equilibrium. The equilibrium state is an indication of the reliability of gamma ray logging. Typically the older the mineralization, the less likely it is that disequilibrium will affect the relationship between equivalent and the true uranium content. Significant disequilibrium is not expected for this project.

The drilling results are summarized in the following table:

Hole # TD Intercept data

SR-1001 1240 830.0-832.5 2.0 ft @ 0.026% eU3O8
SR-1002 1200 854.5-857.0 2.5 ft @ 0.038% eU3O8
SR-1003 1220 no significant mineralization
SR-1004 860 no significant mineralization
SR-1005 1100 no significant mineralization
SR-1006 1160 987.0-991.5 4.5 ft @ 0.046% eU3O8
SR-1007 1150 946.5-951.5 5.0 ft @ 0.091% eU3O8
SR-1008 1100 no significant mineralization
SR-1009 1100 no significant mineralization
SR-1010 1150 367.0-369.0 2.0 ft @ 0.015% eU3O8
SR-1011 1050 abandoned
SR-1012 1265 1144.0-1146.0 2.0 ft @ 0.094% eU3O8
SR-1013 1280 1142.0-1145.5 3.5 ft @ 0.55% eU3O8 and
1152.5-1156.0 5.5 ft @ 0.19% eU3O8
SR-1014 1360 no significant mineralization
SR-1015 1312 no significant mineralization
SR-1016 1356 1193.5-1195.0 1.5 ft @ 0.058% eU3O8
SR-1017 1400 1180.0-1184.0 4.0 ft @ 0.29% eU3O8

USE, the project operator is currently evaluating the results and will develop a proposal to the joint venture for the next phase of drilling.

UPC - Chris M. Healey, P. Geo, a Director of UPC, is the Qualified Person responsible for the technical information in this release.

Mark Larsen, President of U.S. Energy Corp., and Rahoul Sharan, President of Uranium Power Corp., commented; "We are pleased by these very encouraging results at such an early stage in the exploration of this project. The potential for the discovery of a significant uranium deposit has been clearly enhanced by this drilling, and we look forward to commencing our Phase 2 close spaced drilling in the near future. The drilling plans are progressing nicely in conjunction with U.S. Energy's efforts to start the Shootaring Mill."


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 is available.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this News Release.

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