Uruguay Mineral Exploration Inc.: Stock Options Granted

MONTEVIDEO, URUGUAY--(Marketwire - October 16, 2008) - Uruguay Mineral Exploration Inc. ("UME" or the "Company") (TSX-V: UME) (AIM: UGY), a gold production and exploration company, announced today that, in accordance with the company's stated policy, it has granted an aggregate of 912,750 stock options to Directors, Officers and employees, vesting within a two year period, exercisable at a price of CDN$ 0.60 per Common Share with 5 year expiry.

UME employees were granted a total of 477,750 stock options. The balance equivalent to 435,000 stock options was granted to the following Directors:

Tony Shearer            25,000
William Lindqvist       25,000
Roger Davey             25,000
Julio Porteiro          25,000
David Fowler            75,000
Ignacio Salazar        110,000
George Schroer          75,000
John Sadek              75,000

ENDS

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

About Uruguay Mineral Exploration Inc.

Uruguay Mineral Exploration Inc. (UME) is a gold production and exploration company that identifies and develops mineral opportunities in South America. UME is a fully integrated mining company, possessing the skills necessary to explore and develop its discoveries. UME operates San Gregorio, the only producing gold mine in Uruguay, and is the leading mineral exploration company in Uruguay with an exploration portfolio of gold, diamonds and base metal prospects, including copper, nickel, lead, and zinc.

Uruguay Mineral Exploration Inc. is quoted in Canada (TSXV) and London (AIM) and RBC Capital Markets is its Nominated Adviser and Broker. More information can be found at www.uruguayminerals.com

Contact Information: For further information, please contact: Uruguay Mineral Exploration Inc. Tony Shearer Chairman +44 (0)20 7602 1570 David Fowler CEO + 598 2 6016354 Investor Relations Susan Borinelli Breakstone Group +1 646-330-5907 RBC Capital Markets Andrew Smith +44 (0) 20 7029 7882 Sarah Wharry +44 (0)20 7653 4667