Western Uranium Corporation

Western Uranium Corporation

December 15, 2008 08:30 ET

Western Uranium Corporation Adopts Shareholder Rights Plan

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 15, 2008) - Western Uranium Corporation (TSX VENTURE:WUC) ("the Company") announces that it has adopted a shareholder rights plan (the "Plan") effective today, subject to ratification by the Company's shareholders at the next annual general meeting to be held in early 2009.

Under the plan, the Board of Directors has authorized the issuance of the rights to holders of its common shares at the rate of one right for each common share outstanding to automatically attach to the common shares without further action by the shareholders. The Plan has been adopted to ensure the fair treatment of shareholders in the event of an unsolicited takeover offer for the Company's common shares and has not been adopted in the response to, or in anticipation of, any acquisition or takeover offer.

The rights issued under the Plan will become exercisable if a person or group acquires 20% or more of the common shares of the Company without complying with the "permitted bid" provisions of the Plan or without approval of the Company's Board of Directors. Should such an acquisition occur, holders of rights (other than the acquiring person or group) will be entitled to acquire a significant number of common shares of the company at discount to the market price at that time. The rights are not triggered by purchases of voting shares made pursuant to a permitted bid, which is a takeover bid made by way of a formal takeover bid circular to all holders of common shares on identical terms, which is open for at least 60 days and is for a minimum of at least 50% of the outstanding voting shares held by independent shareholders, and which permits shareholders who tender their shares to subsequently withdraw them before the closing date of the bid.

The Plan is intended to provide the Board of Directors with adequate time to consider other alternatives to maximize shareholder value and to allow competitive bids to emerge. The Plan will also help to ensure, to the extent possible, that all shareholders of the Company are treated equally and fairly in connection with any takeover bid for the Company.

On behalf of the Board of Western Uranium Corporation

Pamela J. Klessig, President & CEO

Western Uranium Corporation is a mineral exploration company with a focus on uranium. The company has exploration properties in Kings Valley, Nevada, Treeline, New Mexico and in the Thelon Basin, Nunavut and the Northwest Territories. The Company has its head office in Vancouver, Canada; and its executive management team is based in Reno, Nevada.

The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved or disapproved of the contents of this press release.

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