UWE U3O8 Corp

U3O8 Corp. (TSX VENTURE:UWE), a Canadian-based company focused on exploration
and resource expansion of uranium and associated commodities in South America,
has signed a letter of intent with Pacific Bay Minerals Ltd. to acquire three
mineral properties, which are contiguous with U3O8 Corp's Cerro Solo East
concessions adjacent to the state-owned Cerro Solo uranium deposit in Chubut
Province, Argentina (Figure 1).


"This transaction increases U3O8 Corp's strategic land position adjacent to one
of Argentina's largest uranium resources - the State's 13 million pound Cerro
Solo deposit(1)," said Dr. Richard Spencer, U3O8 Corp's President and CEO. "Our
priority project in Argentina is still Laguna Salada, which is progressing
towards our goal of doubling the current resource and completing a scoping study
this year. The acquisition of key properties in the Cerro Solo district sets up
the next target for exploration after Laguna Salada. Our analysis of fault
patterns and trends in the sedimentary strata in the district suggest that the
area to the east of Cerro Solo is particularly prospective for uranium; hence,
our efforts to consolidate our land position there." 


(1) The Cerro Solo deposit contains an estimated 5,950 tonnes of recoverable
uranium (about 13 million pounds ("mlb")) as reported on the web site of
Argentina's National Nuclear Commission (Comision Nacional de Energia Atomica
("CNEA") on June 5, 2009. The Cerro Solo resource is owned by the Argentina
Federal Government through the CNEA. The CNEA does not use the same categories
for mineral resources as set out in National Instrument 43-101 ("NI 43-101"),
and the resource was not prepared in accordance with NI 43-101. A "qualified
person" as defined in NI 43-101 has not done sufficient work to classify this
resource as current mineral resources or reserves; accordingly, U3O8 Corp. is
not treating such resource in this manner. However, the resource is still
considered by U3O8 Corp. to be relevant as it provides an indication of the
known uranium mineralization in the region. 


The terms of the property acquisition are:



--  U3O8 Corp. will issue 1.5 million shares to Pacific Bay, which are
    subject to a 4-month hold period; 
--  U3O8 Corp. will pay $100,000 in cash to Pacific Bay; and 
--  Pacific Bay retains a 2% net smelter royalty on the properties vended to
    U3O8 Corp. U3O8 Corp. has the right to purchase the royalty at any time
    for $3 million. 



Cerro Solo Uranium District

The Cerro Solo resource is reported to contain approximately 13mlb(1) of
uranium, making it one of the largest uranium deposits in Argentina. Exploration
drilling is reported to have been ongoing for the past year with the objective
of increasing the resource. 


At present, Argentina imports all the fuel for its three nuclear plants from
Canada and has expressed interest in resuming domestic uranium production to
feed its growing nuclear reactor fleet. Both Cameco and Areva have recently
negotiated joint venture agreements with junior uranium companies in Chubut, the
province in which the Cerro Solo deposit and U3O8 Corp's Laguna Salada and Cerro
Solo East projects are located.


Uranium mineralization in the Cerro Solo deposit is located in Cretaceous
sandstones at a depth of 50 metres ("m") to 130m below surface. U3O8 Corp's
targets within its consolidated land position, the Cerro Solo East Project
(49,100 hectares in extent), lie at similar depth. Exploration for
sandstone-hosted deposits similar to Cerro Solo on U3O8 Corp's land package
would incorporate Pacific Bay's radiometric surveys with geophysics (IP) to
locate the pyrite cap that typically overlies these deposits along with
sedimentary facies analysis and alteration mapping.


Laguna Salada Project Update

Two new discoveries of gravel-hosted uranium-vanadium mineralization have been
identified by U3O8 Corp's ongoing exploration in the vicinity of its Laguna
Salada Project. More detailed trenching is planned to better define these new
mineralized zones, towards the goal of increasing the project's current uranium
resource to 20-25mlb(2) in 2012.


Due to the soft, unconsolidated nature of the gravel, exploration to date has
been done mainly through the excavation of pits to a maximum depth of 3m. A
vibrosonic rig that is designed to recover a "core" of gravel encased in a
plastic tube, is in the process of being imported and should allow exploration
and sampling of the full 8m thickness of the gravel. The plan is to continue to
use the excavator as an exploration tool with vibrosonic drilling being used to
delineate the extent and grade of the mineralization to greater depth in order
to contribute to growing the resource at Laguna Salada.


Our prior metallurgical testwork showed that sieving the gravel to remove the
pebbles and coarse material concentrated the uranium and vanadium in the fine
sand fraction and increased grades by three to 11 times at Laguna Salada
(September 21, 2011 press release). Additional metallurgical tests are underway
with the aim of further concentrating the uranium by passing the fine sand
through hydrocyclones. Results from these tests should be reported in Q2 2012.
This hydrocyclone method was used successfully by Deep Yellow Ltd. on its Tubas
Red Sand deposit in Namibia, which contains unconsolidated sand similar in many
ways to the fine sand that results from screening the pebbles out of the gravels
at Laguna Salada. 


Regulatory Update on Chubut Province

An open-pit mining ban is currently in effect in Chubut Province, Argentina.
Draft legislation is reported to propose that open-pit mining could be allowed
in the central semi-desert plain of the province. A similar approach, that
allows mining in the central plain, is in effect in the adjacent Santa Cruz
Province. U3O8 Corp's principal exploration projects in Argentina, namely Laguna
Salada and Cerro Solo East, are located in this central plain of Chubut
Province. Other advanced projects in this area are CNEA's Cerro Solo uranium
deposit and Pan American Silver's Navidad silver project, both of which are
reported to be due for development by open-pit mining methods. 


Qualified Persons

Dr. Richard Spencer, P. Geo., President & CEO of U3O8 Corp., a Qualified Person
within the definition of that term in NI 43-101 of the Canadian Securities
Administrators, has supervised the preparation of, and verified, the technical
information relating to the Cerro Solo East and Laguna Salada projects provided
above. 


The property acquisition remains subject to the approval of the TSX Venture
Exchange.


About U3O8 Corp. 

U3O8 Corp. is a Toronto-based exploration company focused on exploration and
resource expansion of uranium and associated commodities in South America - a
promising new frontier for uranium exploration and development. U3O8 Corp. has
one of the most advanced portfolios of uranium projects in the region comprising
NI 43-101 compliant resources in Colombia, Guyana and Argentina.


(2) Based on the NI 43-101 resource defined at Laguna Salada, two targets of
similar size and grade have the potential to contain a cumulative target of 9-11
million tonnes at a grade of 100ppm to 150ppm U3O8 (estimated 20-25mlb). Refer
to the technical report dated May 20, 2011 titled, "Laguna Salada Project,
Chubut Province, Argentina: NI 43-101 Technical Report: Initial Resource
Estimate" available on U3O8 Corp's web site at www.u3o8corp.com and on SEDAR at
www.sedar.com. 


Forward-Looking Statements

Certain information set forth in this news release may contain forward-looking
statements that involve substantial known and unknown risks and uncertainties.
These forward-looking statements are subject to numerous risks and
uncertainties, certain of which are beyond the control of U3O8 Corp., including,
but not limited to, the possibility that the open-pit mining ban in Chubut
Province may not be lifted or amended on terms that would allow for mining of
the Laguna Salada Project, the impact of general economic conditions, industry
conditions, volatility of commodity prices, risks associated with the
uncertainty of exploration results and estimates, that a mineral resource will
be defined on the Cerro Solo East Project or the resource growth potential will
be achieved at Laguna Salada, currency fluctuations, dependence upon regulatory
approvals, and the uncertainty of obtaining additional financing and exploration
risk. 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. 


To view Figure 1 (Location of U3O8 Corp's Land Position Relative to Argentina's
Cerro Solo Deposit), please visit the following link:
http://media3.marketwire.com/docs/u308f1a4.pdf. 


Satellite image shows the location of U3O8 Corp's uranium concessions (black
box) and newly acquired properties (yellow boxes) that are located adjacent to
the state-owned Cerro Solo deposit referred to in the press release, and the
areas in which uranium mineralization (red outlines) has been identified in
exploration drilling. Limited drilling (green dots) had been carried out by Mega
Uranium Ltd. in 2006/2007 prior to U3O8 Corp. acquiring this ground in mid 2010.

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