UEX Corp T.UEX

CAMECO'S PARTICIPATION

[good2004]

Cameco's Participation Increases UEX Private Placement to $53 Million 1/31/2006 VANCOUVER, Jan. 31, 2006 (Canada NewsWire via COMTEX) -- /NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/ Trading Symbol: UEX-TSX UEX Corporation ("UEX") announced today that Cameco Corporation ("Cameco") has advised it will participate in UEX's previously announced private placement by subscribing for 2,222,600 common shares at a price of $5.00 per share. Under the provisions of the agreement dated October 23, 2001 entered into by Pioneer Metals Corporation, UEX and Cameco, at the time UEX was formed, Cameco was granted a right to participate on a pro rata basis in any future common share offerings by UEX so long as Cameco holds not less than 20% of the issued and outstanding common shares of UEX. Cameco currently owns 36,842,869 common shares of UEX, or approximately 21.74% of UEX's issued and outstanding common shares. On January 25, 2006, UEX announced a $42.0 million private placement of 6,000,000 common shares at $5.00 per share and 2,000,000 flow-through common shares at $6.00 per share. The syndicate of underwriters led by Dundee Securities Corporation, and including CIBC World Markets Inc. and Sprott Securities Inc., informed the company that the private placement was fully-subscribed soon after the announcement of the financing. Cameco's participation in the offering increases the private placement to an aggregate of 10,222,600 common shares for gross proceeds of $53,113,000. Upon closing of the private placement, Cameco will own 39,065,469 common shares of UEX. Proceeds of the private placement will be used for exploration and development of UEX's uranium projects located in the Athabasca Basin area of northern Saskatchewan, Canada, and for general corporate purposes. UEX's exploration budgets for 2006 are estimated at $17.0 million (CDN). Upon closing of this financing, UEX will have a cash position in excess of $95.0 million (CDN). The offering is scheduled to close on or about February 15, 2006 and is subject to certain conditions including, but not limited to, satisfactory due diligence and the receipt of all necessary approvals including the approval of the Toronto Stock Exchange. About UEX UEX is a Canadian uranium exploration company formed under an agreement between Pioneer Metals Corporation and Cameco. Cameco, the world's largest supplier of uranium, is UEX's largest shareholder. UEX began trading on the Toronto Stock Exchange in July 2002 and is actively involved in the exploration and development of 19 uranium projects, including seven that are 100% owned and operated by UEX, one joint ventured with COGEMA that is operated by UEX, ten under option from COGEMA and one under option from Japan-Canada Uranium Company, Limited, which are operated by COGEMA. The 19 projects, totaling 386,650 hectares (955,400 acres), are located in the eastern, western and northern perimeters of the Athabasca Basin, the world's richest uranium belt, which accounts for approximately 30% of global primary uranium production. ON BEHALF OF THE BOARD OF DIRECTORS OF UEX CORPORATION Stephen H. Sorensen, President & C.E.O. Forward looking statements: This news release contains certain forward-looking statements. These forward-looking statements are subject to a variety of risks and uncertainties beyond UEX's ability to control or predict, which could cause actual events or results to differ materially from those anticipated in such forward-looking statements. Although UEX believes that the assumptions inherent in the forward-looking statements are reasonable, undue reliance should not be placed on these forward-looking statements. This press release does not constitute an offer to sell or a solicitation 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 law and may not be offered or sold in the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available. %SEDAR: 00017609E SOURCE: UEX Corporation UEX CORPORATION, Suite 1007 - 808 Nelson Street, Vancouver, B.C., Canada, V6Z 2H2, PH: [phone], FAX [phone], Website: www.uex-corporation.com, email: [e-mail]