UEX Corp T.UEX

UEX NEWS

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AREVA/UEX Plan Exploration Shaft at Shea Creek Uranium Project Trading Symbol: UEX-TSX VANCOUVER, April 10 /CNW/ - UEX Corporation ("UEX") is pleased to announce that it has been informed of, and fully supports AREVA Resources Canada Inc.'s ("AREVA") decision to launch the regulatory process regarding the sinking of an exploration shaft and development of an exploration drift at its Shea Creek Uranium Project ("Shea Creek") located in the western Athabasca Basin area of northern Saskatchewan. The proposed shaft has been strategically located between the Anne and Kianna Deposits to provide underground access to both deposits and the highly-prospective corridor between them (see UEX's website at www.uex-corporation.com for a map depicting shaft location). The proposed shaft will have a vertical depth from surface of approximately 950 metres and an estimated capital cost of $100 million (CDN). Preliminary site characterization and base line testing will commence this summer with the potential for the Project Description to be filed in the last quarter of 2007. Filing of the Project Description would commence the environmental assessment process during which applications will be made in order to obtain the necessary permits to construct the exploration shaft. "The decision to go underground at Shea Creek is the most significant event in UEX's short, five-year history," said Stephen Sorensen, President and CEO of UEX. "In my opinion, Shea Creek could eventually become one of the largest producing uranium projects in the world, elevating UEX to the ranks of a major uranium producer," said Sorensen. A schedule for the integration of development work into the ongoing exploration program has been established by AREVA. Presently, there are two drill rigs carrying out exploration drilling at the Kianna Deposit and a third rig is drilling exploration holes approximately 20 kilometres south of Shea Creek along the Shea Creek corridor. By mid-April, the third rig will move north to the Kianna Deposit area, and a fourth drill rig will arrive on site. Exploration and development programs will be integrated using four drills according to the following schedule: April to June 2007 ------------------ - Two diamond drills will be used for continued exploration of the mineralized zones at the Kianna Deposit until mid-June 2007; - Two diamond drills will be used to drill five pilot holes for exploration purposes beginning in mid-April in the area between the Anne and Kianna Deposits, which is a highly-prospective corridor about 600 metres long. These five pilot holes should be completed by mid-June 2007. Each pilot hole will be logged to acquire geotechnical data, and Packer testing will be carried out before the drill rigs are moved. The pilot holes may be used for directional exploration drilling at a later date. July and August 2007 -------------------- Two drills will be utilized for drilling 3 to 5 larger-diameter HQ-size hydrogeological holes to a depth of approximately 800 metres (to be confirmed) in the area chosen for the shaft. Three engineering holes should be completed by the end of July, and if five holes are drilled, the completion date is expected be the third week of August. The purpose of the hydrogeological holes will be to estimate the ground water flow into the shaft and the underground workings, at a scoping study level, for the Project Description. September to November 2007 -------------------------- In mid-September 2007 two drills will resume exploration drilling in the area of the Kianna and Anne Deposits. UEX estimates that it will earn an additional 12.25% interest in the Western Athabasca Projects, which includes Shea Creek, by the end of the 3rd Quarter 2007, increasing its interest from 24.5% to 36.75%. UEX anticipates that it will earn its full 49% interest by mid-2008. About the Kianna Deposit At the Kianna Deposit, high-grade uranium mineralization has been intersected in multiple zones at depths from 662 metres to 922 metres, a vertical distance of approximately 250 metres - located in sandstone high above the unconformity, at the unconformity, and below the unconformity in basement rocks, with unconformity depths ranging from approximately 710 to 760 metres. To date, the mineralization at the Kianna Deposit has been traced over a strike length of 200 metres and a width of 150 metres, and remains open in all directions. The AREVA-UEX drilling programs of 2004, 2005 and 2006 have outlined three distinct styles of high-grade uranium mineralization: - Perched, sandstone-hosted mineralization found in discrete zones tens of metres above the unconformity (previously announced 2005 hole SHE-114-5, 27.4% U(3)O(8) over 8.8 metres, including 58.3% U(3)O(8) over 3.5 metres); - Unconformity-type mineralization, in close proximity to the unconformity (previously announced 2006 hole SHE-115-3, grading 12.57% U(3)O(8) over 11.9 metres, including 27.35% U(3)O(8) over 4.2 metres); - Basement-hosted mineralization, found in zones up to 200 metres below the unconformity (previously announced 2005 hole SHE-114-11, grading 5.40% U(3)O(8) over 37.7 metres, including 25.46% U(3)O(8) over 4.0 metres). About the Anne Deposit The Anne Deposit is geologically comparable to the Kianna Deposit with both unconformity and basement mineralization. To date, the mineralization at the Anne Deposit has been traced over a strike length of 250 metres and a width of 100 metres and remains open in all directions. A systematic drilling program has outlined the current deposit, but with the recent focus on the Kianna Deposit, no work has been carried out on the Anne Deposit since the fall of 2004. Previous drilling programs have outlined two distinct styles of high grade mineralization: - Unconformity-type mineralization, in close proximity to the unconformity (previous hole SHE-99-2, grading 9.17% U(3)O(8) over 15.7 metres, including 36.37% U(3)O(8) over 2.5 metres); - Basement hosted mineralization, found in zones up to 35 meters below the unconformity: (previous hole SHE-96-3, grading 1.39% U(3)O(8) over 47.3 meters). Uranium grades are calculated from gamma probe logging. True widths of mineralized intervals have not yet been determined. The technical information in this news release was compiled and reviewed by Erwin Koning, P. Geo., AREVA's District Geologist, West Athabasca Region, a qualified person as defined by National Instrument 43-101. About AREVA Resources Canada Inc. AREVA, a uranium exploration and mining company, is a subsidiary of AREVA Group, a worldwide expert in the energy field with a strong industrial presence in over 40 countries. AREVA Group, through its Canadian subsidiary, has significant interests in several uranium deposits in the Athabasca Basin, including the producing McClean Lake Deposits operated by AREVA, the producing McArthur River Deposit operated by Cameco Corporation ("Cameco"), the Millenium Deposit, and the Cigar Lake Deposit. 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 approximately 385,452 hectares (952,452 acres), are located in the eastern, western and northern perimeters of the Athabasca Basin, the world's richest uranium belt, which accounts for approximately 25% of the global primary uranium production. UEX's exploration budget for 2007 is approximately $25.0 million and the Company has a cash position of approximately $73.0 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 "forward-looking statements" that are based on UEX's current expectations, estimates, forecasts and projections. These forward-looking statements include statements regarding UEX's outlook for our future operations, plans and timing for the commencement or advancement of exploration activities on our properties, and other expectations, intention and plans that are not historical fact. The words "estimates", "projects", "expects", "intends", "believes", "plans", or their negatives or other comparable words and phrases are intended to identify forward-looking statements. Such forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Many of these factors are beyond the control of UEX. Consequently, all forward-looking statements made in this news release are qualified by this cautionary statement and there can be no assurance that actual results or developments anticipated by UEX will be realized. For the reasons set forth above, investors should not place undue reliance on such forward-looking statements. UEX disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise. %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]