Western Uranium Corporation
TSX VENTURE : WUC

Western Uranium Corporation

August 29, 2007 18:10 ET

Western Uranium Corporation Closes $21 Million Financing and Completes Strategic Alliance With Cameco Corporation

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 29, 2007) - Western Uranium Corporation (the "Company") (TSX VENTURE:WUC) is pleased to announce that it has completed the sale, to Cameco Corporation ("Cameco"), through a wholly-owned subsidiary, of 5,586,244 units (the "Units") at a price of $3.80 per Unit for gross proceeds of $21,227,727. Each Unit is comprised of one common share and one-half of a share purchase warrant. Each whole share purchase warrant entitles Cameco to acquire an additional common share at a price of $4.25 until August 29, 2008. The shares issued to Cameco in the private placement represent 10.0% of the Company's issued and outstanding share capital.

Proceeds of the offering will be used to fund ongoing exploration on the Company's uranium properties in Nevada, New Mexico and the Thelon Basin in Nunavut and the Northwest Territories. All securities issued pursuant to the private placement will have a four month hold period expiring on December 30, 2007.

In addition, and as initially announced on May 23, 2007, the Company and Cameco have executed an agreement (the "Strategic Alliance Agreement"), dated August 29, 2007, to form a Strategic Alliance. The acquisition, by Cameco, of a 10% equity interest in the Company, was completed pursuant to the Strategic Alliance Agreement. Also under the Strategic Alliance Agreement, Cameco has the right to earn a 70% joint venture interest on each economically viable stand alone deposit developed within any area currently in the Company's exploration portfolio upon the definition of 15 million pounds indicated or higher resources under NI 43-101 classifications. On either the Kings Valley, Nevada or Treeline, New Mexico projects these 15 million pounds must be in addition to the historical resources contained on each project.

With the close of this transaction Western Uranium is well funded to proceed with current and future exploration activities. The company treasury consists of $50 million in cash all of which is unencumbered by any asset back commercial paper.

About the Company

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; its executive management team is based in Reno, Nevada.

On behalf of the Board of Western Uranium Corporation

Pamela J. Klessig, President & CEO

This news release does not constitute an offer to sell or a solicitation of an offer to buy 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 an exemption from such registration is available.

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.

Contact Information