September 11, 2008 08:30 ET
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 10, 2008) - Western Uranium Corporation ("the "Company" or "Western Uranium") (TSX VENTURE:WUC) provides the following message to the shareholders of the Company.
"As Chairman of Western Uranium Corporation, I would like to share my thoughts on the current equity markets and the prospects for our company. We are experiencing a dramatic revaluation of the shares of companies in the junior resource sector. After several of the best years imaginable for commodity prices and related equity prices, the resource sector is in a virtual meltdown as investors take liquidity in equities from this sector to offset investment losses related to the fallout from the global credit crisis. Many of the institutions who invested in this sector are now forced sellers as individuals pull money out of their accounts. The selling price is not a factor in this market scenario. Western Uranium shares have fallen from a high of $2.46 at the end of May to a recent low of $0.62, a drop of approximately 75% in value. This in the face of a successful spin off of Western Lithium Canada Corporation ("Western Lithium") and the initiation of drilling on our Kings Valley Project in Nevada. The Company currently has $50 million in cash which represents $0.85 per share given our 60 million shares outstanding. In addition, the Company owns 15.0 million shares of Western Lithium currently priced at $0.55 per share or $8.3 million which represents another $0.14 cents per Western Uranium share for a total of $1.00 per share in cash and securities. As a company, we are stronger in many respects when compared to our peer group. Opportunities are being presented to your management team from companies unable to finance their current programs. This deal flow will increase if the market continues to sell off. The Company can afford to be very selective and will only consider transactions that would be significantly accretive to our valuation.
The Company's exploration budget through the end of the year is approximately $2.0 to $3.0 million. Our current exploration program is designed to provide an initial test of the large geochemical anomalies at the Old Man Springs and Bull Basin target areas. The program is being conducted with the use of helicopter support in order to alleviate some of the tedious permitting process associated with truck mounted drilling. It is imperative that we generate concrete results this Fall in order to design and submit a larger drill program for the coming year. Results to date have been very encouraging in terms of rock types, alteration and mineralization encountered. The targets are quite large in aerial extent and geologically complex. The current drill program is providing much needed data to develop a three dimensional geological model to assist in guiding additional exploration. Programs of this scale require patience and determination to be successful. Our strategic partner, Cameco Corporation, the world's largest uranium producer, agrees with and supports our conceptual model and exploration plan. As stated in our presentations, it is our opinion that the McDermitt Caldera is a unique geologic feature in respect to its prospectivity to host uranium as well as other metalliferous deposits such as Western Lithium's extensive lithium holdings.
To date, Western Uranium has delineated a NI 43-101 compliant inferred resource of approximately 5 million pounds of uranium along the western caldera margin. Subsequent regional exploration work led us to what appears to potentially be a much larger system in the Old Man Springs/Bull Basin area.
Western Uranium is an exploration company; we are well funded and have a highly qualified team of professionals engaged in the search for uranium resources that will increase the value of your shares. We are concerned with the current share price but are also comfortable that the market will eventually recover. The future for uranium and nuclear power is brighter than ever. High prices for oil, coal and the need for other clean energy sources will continue to bring informed decision makers to this obvious conclusion. Western Uranium's goal is to discover and develop commercial uranium deposits both domestically and worldwide as opportunities arise. We have managed our new company well by keeping focused on our core asset, are well capitalized, have the support of a major uranium mining company, and developed our programs at reasonable costs with a minimum of dilution.
I would also point out that we have the opportunity to participate in the future growth of Western Lithium as it develops its world class lithium assets for a growing battery market for the plug-in hybrid and electric automobile revolution. The future is about energy, how we generate electricity and how we store and utilize electricity will be primary themes going forward. Western Uranium is well capitalized and positioned to take advantage of the upcoming energy revolution. I want to thank you all for your support and encouragement in these difficult times."
On behalf of the Board of Western Uranium Corporation
R. Edward Flood, Chairman
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.
Western Lithium Corporation is a mineral exploration and development company with a focus on lithium. The company has an exploration property in Kings Valley, Nevada through a lease option agreement with a wholly owned subsidiary of Western Uranium Corporation.
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.
Western Uranium CorporationPamela KlessigChief Executive Officer(775) 827-3311Email: firstname.lastname@example.orgWebsite: www.westernuraniumcorp.com
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