UEX Corp T.UEX

NEWS RELEASE

[good2004]

Attention Business Editors: UEX Begins 2006 Drilling Program at Riou Lake and Northern Athabasca Uranium Projects and Announces 2006 Winter Exploration Results Trading Symbol: UEX-TSX VANCOUVER, Aug. 24 /CNW/ - UEX Corporation ("UEX") announced today that a $2.6 million (CDN) summer/fall diamond drilling program is underway at the Riou Lake Uranium Project ("Riou Lake") and the Northern Athabasca Projects (the "Northern Projects"). UEX's 100%-owned Riou Lake and Northern Projects form a contiguous land position across the northern rim of the Athabasca Basin totaling 117,041 hectares (289,091 acres) in size, and are located near the town of Stony Rapids, Saskatchewan. The 2006 drilling program, totaling approximately 10,000 metres and using two helicopter-supported drill rigs, is designed to test high-priority targets that are either not readily accessible by land or which must be drilled under summer conditions. Drilling at Riou Lake, including the Radioactive Springs area, is planned to follow-up encouraging results from previous drilling programs. The Northern Projects targets chosen by UEX have seen little historical drilling, and this helicopter-supported program is the first drilling to be carried out in several of the project areas. The drilling program is expected to continue into October 2006. To view a map of Riou Lake and the Northern Projects, please access UEX's website at www.uex-corporation.com under "Latest Updates". 2006 Winter Exploration Program Results Riou Lake 2006 Winter Geophysical Surveys A program of 46.4 kilometres of UTEM III moving loop electromagnetic surveys was carried out to better define geophysical conductors outlined by the 2005 MEGATEM(R) airborne electromagnetic survey and previous ground electromagnetic surveys northeast of the Radioactive Springs area. The survey further defined a strong basement conductor, the KC Conductor, which displays a number of apparent fault offsets interpreted as high-priority drill targets. A ground gravity survey totaling 83.3 kilometres was also carried out to assist in ongoing interpretation of the 2005 FALCON airborne gravity-gradiometer and radiometric survey. Northern Projects 2006 Winter Geophysical Survey A fixed-loop, time-domain electromagnetic ("TDEM") survey, totaling 40.8 kilometres, was carried out on UEX's Butler Lake Project ("Butler Lake"), one of the five Northern Projects staked by UEX in late 2004. The Butler Lake conductive trend, first identified by the 2005 MEGATEM(R) survey, was successfully delineated by the 2006 ground TDEM survey and represents the first "ground-truthing" of airborne anomalies within UEX's Northern Projects. The Otherside River, Munroe Lakes, Fond du Lac and Jacques Point projects are the other four projects making up UEX's Northern Projects. 2006 Summer/Fall Diamond Drilling Program Riou Lake 2006 Drilling Program The 2006 helicopter-supported, diamond drilling program at Riou Lake is planned to consist of approximately 6,000 metres of diamond drilling in about eight (8) holes. In addition to other geological targets, UEX plans to test high-priority geophysical targets along the 10 kilometre strike length of the KC Conductor, including follow-up drilling in the Radioactive Springs area at the southwestern end of the KC Conductor, where uranium mineralization encountered in 2005 hole RLG-D21-2 graded 0.44% U(3)O(8) over 0.10 metre, with accompanying anomalous values of arsenic, nickel, cobalt, and copper. Northern Projects 2006 Drilling Program UEX plans to drill approximately 4,000 metres in about ten (10) holes using a helicopter-supported drill rig. Two holes are planned at the Butler Lake Project to test the Butler Lake conductive trend recently defined by ground and airborne geophysics in an area that has never been drill-tested. The depth to the unconformity at Butler Lake is estimated to be between 200 to 300 metres in the vicinity of the planned drilling. The balance of the Northern Projects drilling program will test other high-priority targets selected by integration of airborne geophysics and historical geological data. The technical information in this document has been reviewed by Sierd Eriks, P. Geo., a qualified person as defined by National Instrument 43-101. True widths of mineralized intervals reported have not yet been determined. About UEX UEX is a Canadian uranium exploration company formed under an agreement between Pioneer Metals Corporation and Cameco Corporation. Cameco Corporation, 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 venture with AREVA that is operated by UEX, ten under option from AREVA and one under option from Japan-Canada Uranium Company, Limited, which are operated by AREVA. 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 the global primary uranium production. UEX's exploration budget for 2006 is $19.0 million and the Company has a cash position of approximately $84.0 million. 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. %SEDAR: 00017609E For further information: 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]