Company Targets Initial 10,000-Meter Drilling Campaign To Commence Q3 This Calendar Year.

Uranium Energy Corp (NYSE-AMEX: UEC) announced that it has now completed the acquisition of a Paraguayan company which holds a 100% legal and beneficial interest in two unencumbered prospecting permits covering an aggregate of 247,000 acres located in the area of Coronel Oviedo, Paraguay . 

The Company has issued 225,000 restricted common shares in the capital of the Company to complete the purchase. In the event of uranium production from the Property, the Company will pay a small royalty to the prior owner as detailed in the earlier news release.

President and CEO Amir Adnani stated, “We like this new district-scale opportunity in stable and business-friendly Paraguay. The Coronel Oviedo project makes an excellent fit for our technical team. The geology is very similar to the South Texas uranium belt and is anticipated to be ISR-amenable. We plan to drill the project in Q3, and we look forward to reporting further on its potential. Our objective here is to achieve an initial NI 43-101-qualified resource as quickly as possible.”

About the Coronel Oviedo Project

The Property covers over 247,000 acres in central Paraguay. Most of the uranium occurrences in this environment are “roll-front” type deposits similar to those currently producing uranium by low-cost in-situ recovery (ISR) methods in Texas, the western United States, Central Asia and Australia.

Currently, the Company is preparing a geological model based on historical data, and is pacing its exploration program at Coronel Oviedo to be able to initiate an approximate 10,000-meter drilling program in the 3rd Quarter of this calendar year.

Historical data is based on extensive uranium exploration on the Property between 1976 and 1983 by Anschutz Corporation and by Crescent Resources between 2006 and 2008. A total of 31 drill holes, out of the 52 holes drilling by both Anschutz and Crescent, show significant uranium values.

The Crescent and Anschutz drilling identified open-ended, tabular-like mineralization similar to that found at the Company’s Goliad Project. The known uranium mineralization on the Property intersected by the past drilling is at depths between 450 and 750 feet.

Prior to completing the acquisition, the Company enlisted HydroSolutions, of Denver, Colorado, to conduct a 24-hour aquifer test in the mineralized area identified by the Anschutz-Crescent drilling programs to determine if the aquifer could sustain extraction rates typical of ISR mining of uranium; and it can.

To support operations in Latin America, the Company has appointed Dr. Bernie D. Schmeling and Carlos Figueredo to a special advisory board focusing on Paraguay. Dr. Schmeling, is a professional geophysicist and is currently Chief Operating Officer of Semin S.A. With more than 35 years of experience in exploration and mining, Dr. Schmeling is internationally recognized as one of the few leading experts in uranium ISR exploration. Carlos Figueredo has 25 years of experience in mineral and oil exploration in Paraguay as Chief Geologist and Assistant Mineral Exploration Manager of Semin S.A. He formerly worked for Anschutz Corporation during its initial exploration efforts in Paraguay and played a pivotal role in the earlier development of the Coronel Oviedo project.

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