Western Uranium Corporation
TSX VENTURE : WUC

Western Uranium Corporation

December 22, 2008 08:30 ET

Western Uranium Corporation Provides 2008 Work Program Summary

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 22, 2008) - Western Uranium Corporation ("WUC" or the "Company") (TSX VENTURE:WUC) is pleased to provide a summary of the results from the field programs for 2008.

The final results from the work program undertaken on the Kings Valley Project during the field season have been received. The drill program focused on testing a number of uranium targets identified from previous geophysical and geochemical surveys in the Bull Basin and Old Man Springs areas. Twenty-eight core holes were drilled for a total of 6,323 meters. The program successfully identified areas that contain elevated levels of uranium mineralization, which warrant follow-up with additional drilling during the 2009 program. In addition to this work, one core hole, KV-63, was drilled in the Midnight Mine area as a twin to a KV-19, a reverse circulation hole drilled in 2006 that intercepted significant uranium, gold, silver and molybdenum mineralization (Press release dated: Oct. 10, 2006).

Results from KV- 63 are listed below.



True
Interval Thickness %U3O8 Au Ag MoS
meters meters Chem g/t g/t %

KV-63 84.1-114.9 17.5 0.206 0.664 38.8 0.028
includes 95.7-110.8 8.7 0.320 0.849 69.8 0.045
includes 101.1-105.4 2.4 0.529 1.133 217.5 0.091


KV-63 provided much needed geologic clarification as to the nature of the mineralization and the rock units which host mineralization. In addition, the results verified the analytical results returned from the earlier reverse circulation drilling in 2006. The corresponding interval in KV-63 to KV-19 returned very similar results. KV-63 was designed as a vertical hole to accurately twin the original reverse circulation hole. The widths noted above are listed in true thickness as it was possible to define the dip of the zone containing the mineralization from the examination of the core. In addition, a better understanding of the geological setting has developed over the course of the past two to three field seasons.

In addition to the intervals outlined above that are hosted in volcanic units, uranium mineralization up to 0.86% occurring in nearly flat lying thin veinlets (0.09 meters) was intercepted in underlying granites. These intercepts lie approximately 30 meters below the interval listed above at a depth of 140 meters. While this interval is insignificant in width, it suggests that deep drilling into the underlying granites focused along structural zones may encounter higher grades and thicker intervals if the roots of the mineralizing system can be located.

Geologic work to date has identified a large area of approximately 11 kilometers in strike length and 3 kilometers in width covering three prospective regional targets: Bull Basin, Old Man Springs, and Albisu. 27 core holes for a total of approximately 6200 meters of drilling were completed for a first pass test over these three areas. 786 meters were drilled at Albisu, ALB 01-04, 4274 meters were drilled in Bull Basin, BB-01-16 and 1099 meters at Old Man Springs OMS 01-07. A summary of the drill results is listed at the end of the release along with a map showing the drill hole locations. The drill program was designed to test variable models for hosting uranium mineralization. Drill holes were targeted using a combination of results from radon track-etch surveys, geophysical surveys - both ground and airborne, photo linear interpretations, and geologic field mapping. The drilling in Bull Basin substantiated that elevated levels of uranium occur at or near the interface between the overlying sedimentary units and the underlying volcanic rocks, suggesting the basin may hold mineralization similar in style as the nearby Aurora Deposit in Oregon. Background levels of uranium range from less than detection to single digit ppm values. Near the contact between the moat sediments and the underlying volcanic rocks, levels of chemically detectable uranium elevate to double digit values of uranium. Several holes also intercepted geochemically elevated levels of uranium within the moat sediments and below the interface well into the underlying basalts. During a technical review it was noted by Cameco to the Western Uranium personnel that although the levels of uranium were in the 10-30 ppm range in random zones in the basalt, these concentrations are above normal background levels for what is encountered in fresh, unaltered basalts. Much of the mineralization at the Aurora Deposit in Oregon is hosted in high-iron basalt.

Concurrent with the drilling program additional detailed geologic mapping was on-going. This work identified an area on the western side of Bull Basin that exhibits a number of large boulder trains of silica sinter along with widespread sinter float. The sinter yields counts of 300-400 gamma cps on the scintillometer. Along with the paleo hot springs material the surrounding volcaniclastic rocks exhibit weak to moderate amounts of silicification and argillization. Seven of the 16 holes drilled in Bull Basin were concentrated in this location due to favorable surficial alteration and structural preparation of the rock. Probing of the first few drill holes detected elevated zones of radioactivity ranging in the 0.01% - 0.05% U3O8, which led to more concentrated drilling in this location. Most of the drill assays returned chemical values of uranium that were lower than the probe encountered suggesting a disequilibrium problem where the daughter products from the decay chain of uranium are being picked up with the gamma probe and the uranium has been mobilized to a different locality. Drill hole BB-13 contained two, 3-meter intervals that returned chemical assays of 0.015% and 0.014% U3O8 at 116 meters and 123 meters, respectively. The corresponding probe intercepts returned 0.037% and 0.034% U3O8. Drill hole BB-14, however, had two 0.6 meter intercepts that returned chemical assays of 0.051% and 0.022% U3O8 at 53m and 156m, respectively, while the corresponding probe values returned 0.051% and 0.017% U3O8. All of these results are encouraging and will be useful for vectoring in on additional drill sites during the 2009 program.

A number of the holes encountered highly elevated levels of arsenic and mercury along with scattered intercepts of low levels of silver, gold and molybdenum. Additional study is needed to determine the significance of these elements but the levels of the arsenic and mercury are consistent with those found in mineralizing hot springs systems associated with metal deposits.

There is a dominant north-south corridor of mineralization and alteration that strikes 24 kilometers along the western rim of the McDermitt Caldera. The southern part of the trend is defined by the known zones of uranium mineralization reported by the company in previous press releases. The north end where ALB-04 is located appears to be a gold-enriched portion of the system (Press release dated October 29, 2008).



ALB-04(iiii) 3.5 - 35 m: 164 ppb gold
104 - 105.5 m: 12.5 g/t gold and 14.2 g/t silver
105.5 - 114 m: 171 ppb gold
137 - 145 m: 289 ppb gold
154 - 229 m: 391 ppb gold
Includes the following intervals:
155.5 - 157.0: 1.03 g/t gold
170.7 - 178.3: 1.91 g/t gold
180.0 - 184.5: 0.53 g/t gold

(iiii) ALB-04 was geochemically elevated in gold nearly the entire 255
meters of the drill hole. There are currently not adequate controls
on the geology to determine true thickness but it does not appear to
have been drilled down a structure.


Along this entire trend, scattered old prospect pits and random historic drill holes tend to have elevated geochemical signatures of metals that may occur proximal to large mineral systems. Many of the holes are geochemically elevated significantly above background concentrations in arsenic, mercury, and silver along with scattered zones of elevated gold and molybdenum. All of these elements, when examined on a regional scale, suggest that an extremely large, active, multi-element metalliferrous system has been active in the caldera. The 2008 program provided important geologic and geochemical data that will assist in guiding the next phase of the program during 2009. The program for 2009 is in the planning stages with several deep drill holes planned in the vicinity of the Moonlight area, follow-up drilling in Bull Basin along with a more extensive drill test of the gold mineralized zone around Albisu.



2008 DRILL HOLE SUMMARY

BB equals Bull Basin
OMS equals Old Man Springs
ALB equals Albisu

NSR equals no significant results

Drill Hole

BB-01-04(i) NSR(i)
BB-05 NSR
BB-06(ii) NSR
BB-07 NSR
BB-08(i) NSR
BB-09-12(iii) NSR
BB-13(iii) 116 - 119 m: 0.012% U3O8 chemical assay
124 - 127 m: 0.014% U3O8 chemical assay
BB-14(iii) 53 - 53.6 m: 0.051% U3O8 chemical assay
156 - 156.6 m: 0.022% U3O8 chemical assay
BB-15 NSR
BB-16(i) NSR

OMS-01(ii) 0 - 7 m: 0.059% MoS2
OMS-02(ii) NSR
OMS-03-07 NSR

ALB-01 46 - 47.5 m: 17 g/t silver, plus zones of weakly
anomalous gold
ALB-02 6.3 - 8 m: 0.012% U3O8 chemical assay
28.3 - 29.5 m: 49 g/t silver
33.1 - 35 meters: 12 g/t silver
ALB-03 NSR

(i) intercepted geochemically elevated levels uranium over 6 - 30 meters
at sediment/volcanic contact
(ii) intercepted elevated levels of uranium in basalt
(iii) These holes encountered geochemically elevated levels of uranium in
the volcanic rocks along with gold, silver, arsenic and mercury


WUC QA/QC Program

Quality Control and Assurance for all sampling projects at Kings Valley is under the direction of Mr. John Rice, a Qualified Person as defined by National Instrument 43-101 standards. Core samples are collected daily from the drill site and transported back to the field office, where WUC personnel photograph each box. WUC geologists then log the core, noting rock types and alteration. The core is then split and packaged in sealed heavy weight polyethylene bags. Core samples are delivered by WUC employees to American Assay Laboratories located in Sparks, Nevada.

American Assay Laboratory's quality control system complies with the requirements for the International Standards ISO 9001:2000 and ISO 17025:1999. Analytical accuracy and precision are monitored by the use of reagent blanks, reference samples, and sample duplicates. Additionally, WUC selects duplicate samples which are then submitted to a third party lab for separate confirmation analysis.

WUC contracted Minerals Exploration and Environmental Chemistry Laboratories, located in Washoe Valley, Nevada, to develop a set of analytical standards for uranium quality control. WUC standards were made at 0.01%, 0.05%, 0.10%, and 1.0% U3O8. Once prepared, the standards were submitted to six different accredited assay laboratories for round robin analysis and confirmation of grade before use. Control samples are submitted with each round of samples submitted to the laboratory.

THELON BASIN, NUNAVUT

The Company conducted a short field program in Nunavut during this past summer to complete a reconnaissance level examination of the prospecting permits. This work assisted in guiding the claim staking to convert portions of the permits to claims as required by regulations. 49 claims totaling 126,542 acres were staked to cover the most favorable areas of the permits. The camp has been dismantled and removed from the area. No further work is planned in the near term, and depending on the resolution of the caribou issue the Company will carefully consider whether Nunavut is a politically acceptable environment in which to conduct further exploration. An adequate amount of expenditure has been made in the area to keep the claims in good standing for the next two years.

About the Company

Western Uranium Corporation is a mineral exploration company with a focus on uranium. The Company has exploration properties in Nevada, 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.

The contents of this press release were reviewed by Ms. Pamela Klessig for WUC. Ms. Klessig has sufficient experience to review this release and is a Qualified Person as defined by NI 43-101.

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.

To view the map accompanying this release please click on the following link: http://media3.marketwire.com/docs/wuc1222.pdf

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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