Western Uranium Corporation

Western Uranium Corporation

March 22, 2010 08:30 ET

Western Uranium Finalizes Agreement With Kenai Resources for Continued Gold Exploration at Albisu Gold Project, Kings Valley, Nevada

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 22, 2010) - Western Uranium Corporation (TSX VENTURE:WUC) ("Western" or "the Company")  announces that it has reached an agreement dated March 19, 2010 with Kenai Resource Ltd. (TSX VENTURE:KAI) ("Kenai") for Kenai to continue exploring the Albisu gold property located at the northern end of the Kings Valley Project in north-western Nevada, approximately 35 kilometres west of McDermitt, at the Nevada/Oregon border. The project, covered by 136 unpatented lode mining claims, is located in Humboldt County, immediately south of the Oregon border in the northern Nevada epithermal province, which includes the Sleeper, Hog Ranch and Hycroft deposits.

The terms of the transaction agreed to between Western and Kenai, are summarized below:

  • Kenai has the right to an earn-in giving it a 60 per cent joint venture interest in Western's Albisu project claims, subject to the following payments and expenditures.
  • Kenai will issue 250,000 shares of Kenai stock to WUC at commencement subject to TSX Venture Exchange approval.
  • Kenai is to be manager and operator of the project, and will keep the claims in good standing at all times.
  • Kenai must pay Western $30,000, $70,000, $300,000 and $400,000 on or before the first to fourth annual anniversary dates respectively from the date of the agreement.
  • Kenai will fund $250,000 on Albisu project exploration expenditures by December 31, 2010.
  • Kenai will fund $500,000 and $1,200,000 on Albisu project expenditures by the third and fourth annual anniversary dates respectively.
  • Kenai has the option following the earn-in period to increase its interest in the joint venture from 60 per cent to 80 per cent by completion of a bankable feasibility study and payment of $1,000,000 in cash to Western.
  • Kenai has the usual rights of withdrawal during the operation of the project.

Western is pleased to have Kenai Resources as a partner in continuing the gold exploration at the Albisu claims. As reported on in press releases dated October 29, 2008, July 21, 2009 and August 4, 2009, this is an area of strongly anomalous gold as defined by 15 core holes drilled by Western in 2008 and 2009. As it is Western's intention to focus on additional uranium exploration at the Kings Valley Project, the Company believes this agreement allows for advancement of any potential gold project in this area of the Kings Valley Project. Western currently controls over 2000 unpatented contiguous Federal Mining Claims in the McDermitt Caldera which makes up the Kings Valley Project. The area covered by the 136 claims subject to this agreement lie at the far northern end of the claim block in an area that is more dominantly anomalous in gold as opposed to uranium.

About the Company

Western Uranium Corporation is a mineral exploration company. The Company has exploration properties in Nevada, New Mexico and in the Thelon Basin, Nunavut for uranium and has entered into an earn-in agreement with AuEx Ventures for the Baza gold-copper project in Spain. 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"

Pamela J. Klessig
President & CEO

The TSX Venture Exchange has neither approved nor disapproved of the contents of this press release. Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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