U3O8 Corp. Discovers Potentially Large Area of Shallow Uranium-Vanadium Mineralization Adjacent to Its Laguna Salada Deposit in Argentina

TORONTO, ONTARIO--(Marketwired - Dec. 4, 2013) - U3O8 Corp. (TSX:UWE) (OTCQX:UWEFF), a Canadian-based company focused on exploration and development of uranium resources and associated commodities in South America, has identified a mineralized area located on the southern extension of its Laguna Salada Deposit in Chubut Province, Argentina (Figure 1). The La Susana discovery contains similar near-surface, free-digging mineralization to Laguna Salada and has potential to add to the current uranium-vanadium resource defined in accordance with National Instrument 43-101 ("NI 43-101")¹.

"The uranium-vanadium mineralization at La Susana is typical of the Laguna Salada Deposit and has a footprint that is potentially double the size of the current resource - suggesting considerable resource growth potential and reaffirming the district-scale prospects of the region," said Dr. Richard Spencer, U3O8 Corp's President and CEO. "A larger resource could further enhance the economics of the project which are being defined in a preliminary economic assessment ("PEA") that is nearing completion on the initial deposit at Laguna Salada. With an advanced uranium project in a country committed to bringing more nuclear reactors online and a joint venture currently being negotiated with Petrominera Chubut S.E., the provincial mining company, U3O8 Corp. is positioning Laguna Salada as a potential low-cost, near-term producer in Argentina."

La Susana Discovery - Southern Extension of the Laguna Salada Deposit

Mineralization at La Susana is typical of the Laguna Salada style uranium-vanadium that is found at shallow depth in free-digging gravels. Uranium and vanadium at Laguna Salada was initially discovered along the edge of the gravel mesas where the mineralized layer, which is capped by a layer of barren gravel on the top of the mesas, comes to surface. It was only with trenching and pitting in the interior of the mesas that the extent of the mineralization became clear at Laguna Salada. A similar situation extends to the La Susana area, where the uranium-vanadium bearing layer has been traced along the western and eastern edges of the mesa, some 10 kilometres ("km") to 15km apart (Figure 1). The mineralized layer at La Susana lies at an average depth of 0.5 metres ("m") below surface. The next step in exploration of La Susana is pitting and trenching to determine the extent of mineralization beneath the barren cap in an area of about 100 square kilometres ("km²"). 

Vertical channel samples defined an average grade of 78ppm uranium (U₃O₈) and 290ppm vanadium (V₂O₅) from a gravel layer averaging 0.5m thick at La Susana (Table 1). Mineralization at La Susana is hosted in the same unconsolidated gravel unit that hosts the Guanaco sector of the Laguna Salada Deposit. Screening to remove the pebbles and coarse sand from the mineralized fines at Laguna Salada, concentrated over 90% of its uranium in about 10% of the gravel's original mass, resulting in a 10-11 times increase of uranium grades. The soft, unconsolidated gravel in the Laguna Salada Deposit is amenable to low-cost continuous surface mining that involves no blasting or crushing, and alkaline leaching to extract the uranium and vanadium with a solution of baking soda (sodium bicarbonate) and washing soda (sodium carbonate). 

Table 1 - Assay Results from Channel Sampling of Free-Digging Mineralization at La Susana

To view Figure 1 - Map of La Susana Discovery Relative to the Laguna Salada Deposit, please visit the following link: http://media3.marketwire.com/docs/915443_fig1.pdf

Quality Assurance & Quality Control ("QAQC")

For a summary of the QAQC procedures used by U3O8 Corp. on its Laguna Salada Project, refer to its May 20, 2011 technical report entitled "Laguna Salada Project, Chubut Province, Argentina: NI 43-101 Technical Report: Initial Resource Estimate" (the "Technical Report"), available on the company's web site at www.u3o8corp.com and on SEDAR at www.sedar.com. 

Dr. Richard Spencer, President & CEO of U3O8 Corp. and a Qualified Person as defined by NI 43-101, has supervised the preparation of, and verified the technical information contained in this press release. Potential quantity and grade is conceptual in nature. There has been insufficient exploration to define a mineral resource at La Susana to date, and it is uncertain if further exploration will result in such target being delineated as a mineral resource.

About U3O8 Corp.

U3O8 Corp. is focused on exploration and development of uranium resources and associated commodities in South America. The company's uranium resources comprise three NI 43-101 deposits defined in Colombia, Argentina and Guyana:

• Berlin Deposit, Colombia - a recent PEA shows that Berlin could be a zero cash cost uranium producer thanks to revenue from by-products of phosphate, vanadium, nickel, rare earths (yttrium and neodymium) and other metals occurring in the same deposit;
• Laguna Salada Deposit, Argentina - a near surface, free-digging uranium, vanadium deposit that is potentially amenable to low-cost mining and processing methods; and
• Kurupung Deposit, Guyana - an initial uranium deposit in a large emerging uranium district.

Screening to remove the pebbles from the mineralized fines resulted in uranium grades increasing to 620-670ppm comparable to mill feed grades of similar deposits operating elsewhere in the world. Based on the NI 43-101 resource, several projects of similar size and grade near Laguna Salada have the potential to contain a cumulative target of 9-11 million tonnes at a grade of 100ppm to 150ppm U₃O₈ (~20-25Mlb).

Additional information on U3O8 Corp., its mineral resources and technical reports are available at www.u3o8corp.com. Follow U3O8 Corp. on Facebook: www.facebook.com/u3o8corp, Twitter: www.twitter.com/u3o8corp and Youtube: www.youtube.com/u3o8corp. Below

Forward-Looking Statements

Certain information in this release are forward-looking statements with respect to the proposed joint venture and development plans, economic potential and growth targets of U3O8 Corp's current projects. Forward-looking statements consist of statements that are not purely historical, including statements regarding beliefs, plans, expectations or intensions for the future, and include, but not limited to, statements with respect to: (a) a joint venture with the Chubut Government, (b) the low-cost, near-term production goal of Laguna Salada, (c) compliance with current Chubut mining law, (d) the Laguna Salada and Berlin PEAs, (e) beneficiation test work on Laguna Salada, (f) the La Susana discovery, including its potential size and resource potential, (g) the market opportunities for uranium from Argentina, and (h) the potential of the Kurupung district in Guyana. Basis for such assumptions include that: (i) discussions with the Chubut Government will be favourable, (ii) actual results of our exploration, resource goals, metallurgical testing, economic studies and development activities will continue to be positive and proceed as planned, (iii) requisite regulatory and governmental approvals will be received on a timely basis on terms acceptable to U3O8 Corp., and (iv) economic, political and industry market conditions will be favourable. However, such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements, including, but not limited to: (1) that a joint venture will not be formed with the Chubut Government, (2) timing and outcome of the PEA or that a mine will be achieved on the Laguna Salada Project in compliance with current Chubut mining law, (3) exploration on the La Susana discovery will not result in additional resources; (4) risks that a mine will not be achieved on the Berlin Deposit and other exploration projects, (5) that beneficiation test work will continue to be favourable and results from small scale metallurgical testing can be duplicated on a larger scale, (6) the inherent uncertainties and speculative nature associated with exploration results, resource estimates, potential resource growth, future metallurgical test results, changes in project parameters as plans evolve, (7) volatility of commodity prices, (8) dependence on regulatory approvals and changes in legislation, environmental compliance, community support and the political and economic climate, (9) availability of future financing, and (10) exploration risk and other factors beyond the control of U3O8 Corp. including those factors set out in the "Risk Factors" in our Annual Information Form available on SEDAR at www.sedar.com.

Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. U3O8 Corp. assumes no obligation to update such information, except as may be required by law.