Uruguay Mineral Exploration Inc.

Uruguay Mineral Exploration Inc.

October 12, 2006 09:03 ET

Uruguay Mineral Exploration Inc.: Annual General Meeting

Chairman's Statement

LONDON, ENGLAND--(CCNMatthews - Oct. 12, 2006) - At its Annual General Meeting to be held later today, Tony Shearer, the Chairman of Uruguay Mineral Exploration Inc. (TSX VENTURE:UME)(AIM:UGY) will make the following comments:


'First, I would like to welcome Julio Porteiro and Patricia Rodriguez to their first AGM. Julio is the first Uruguayan on the board of UME and Patricia joins us as Company Secretary. I am delighted to have them both.

Chris Clark steps down at this AGM as CEO. I thank Chris for all he has done for the company since he and Mike Schwabe founded it in 1996. It is always difficult to hand over the reins, but this year has been the time for new energy and commitment to take UME onto the next stage.

David Fowler, the new CEO, now has a top class team, with George Schroer (Vice President Exploration) in addition to John Sadek, General Manager Operations, and the people who support them. We are hoping to appoint a Finance Director to release David from this responsibility (so he can focus solely on his role as CEO) and the search for a suitably qualified person is underway.

Field Visit Results

Last week I joined our team of geologists on a week-long field trip. In addition to George Schroer and David Fowler we were joined by Bill Lindqvist, a Non-Executive Director, the experienced and very able independent consultant Bill Howald (the former General Manager Exploration for Americas of Placer Dome), and our existing Uruguayan geological staff as well as the two new experience exploration geologists that George has already appointed, Julio Villagas and Alex Raab. The trip reinforced to me that we now have the team to work on the substantial opportunities that exist in Uruguay, such as along the Isla Crystallina belt. There are also gold opportunities for us in the Dom Feliciano mobile belt and the Florida Belt in the south of Uruguay where we have 4 to 5 advanced exploration projects.

Strategy and Trading Update

To achieve further growth we believe it is important to focus on gold. As a result we plan to farm out opportunities for our base metals assets and our diamond projects. We are reviewing a number of possibilities for realising value for our shareholders.

Whilst production in the first quarter was lower than we planned, we are working hard to achieve our target of about 100,000 ounces for the year.

There is no denying that we have not made as much exploration progress as we would have liked in the last 18 months. However, there are numerous opportunities and there is much to do. We have the right CEO, and he has the team to develop the prospects, though it will undoubtedly take time to fully implement our strategy.

The Board feels confident about the future. One indication of this is that we are proposing to pay a maiden dividend.'

Tony Shearer


Editors note: Uruguay Mineral Exploration Inc. is a gold producer and exploration company focussed on identifying and developing mineral opportunities in Uruguay. UME is a fully integrated mining company, possessing the skills necessary to explore and develop its discoveries. The Company operates the only producing gold mine in the country (San Gregorio), and is also the leading mineral exploration company in Uruguay having assembled an exploration portfolio based on gold, base metals (copper, nickel, lead, zinc) and diamond prospects. In the first half of 2003, the Company discovered the Arenal deposit, currently the largest known gold resource in Uruguay.

Uruguay Mineral Exploration Inc. is quoted in Canada (TSXV) and London (AIM) and Collins Stewart Limited is the Nominated Adviser and broker.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

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