UEX/AREVA Drilling Expands Basement Mineralization at Kianna Deposit: SHE-130-4 Intersects 25.1 Metres Grading 1.28% eU(3)O(8), Including 9.5 Metres Grading 2.30% eU(3)O(8)

Trading Symbol: UEX-TSX

VANCOUVER, May 3 /CNW/ - UEX Corporation ("UEX") (TSX: UEX) is pleased to announce results from its first directional drill hole from the continued exploration of the Kianna Deposit ("Kianna") on the Shea Creek Project ("Shea Creek") as reported to UEX by the project operator, AREVA Resources Canada Inc. ("AREVA"). Shea Creek hosts the Kianna, Anne, Colette and 58B deposits and is one of ten 49%-owned Western Athabasca Uranium Projects joint-ventured with AREVA (see Figure 1).

The mineralized intersection in the basement of hole SHE-130-4 represents a 20 metre extension to the north of the main zone of basement mineralization in the Kianna Deposit. The intercept both expands the outline of the Kianna basement zone, and potentially links the main Kianna basement mineralization with a northern, parallel zone of structurally controlled mineralization which has now been intersected in several drill holes outside of the existing resource.  Further drilling is in progress to test for mineralization to the west and east of the SHE-130-4 intercepts.

Significant mineralization was intersected in drill hole SHE-130-4 both at the unconformity ("UC") and in the underlying basement rocks ("B"). Highlights of the drill results include:

SHE-130-4:    (UC)   0.96% eU3O8 over 3.2 metres,   
    (B)   1.28% eU3O8 over 25.1 metres, including
        2.30% eU3O8 over 9.5 metres;
    (B)   0.36% eU3O8 over 2.9 metres;

Complete results from the drilling are reported in Table 1. Uranium grades reported here have been calculated from gamma probe logging. True widths of mineralized intervals have not yet been determined.

"The new basement intercept is significant because it likely links what was previously thought to represent two distinct parallel mineralized zones, and consequently could greatly expand the area of known basement mineralization at Kianna" said UEX Advisory Board Member, David Rhys.

Drill hole SHE-130-4 is the first of four directional drill cuts planned for the 2011 drilling program at the Kianna Deposit which is part of a larger exploration program on the Shea Creek Project. Currently, there are three drills operating on the project, two at the Colette Deposit and one at the Kianna Deposit.

SHE-130-4 was designed to follow up on successful drilling results from the SHE-136 series drill holes which were obtained during the 2010 program (see Figure 2). The SHE-136 series drill holes intersected new, open areas of structurally controlled mineralization which are developed to the north of the main Kianna basement deposit in an area of sparse drilling, including 1.84% eU3O8 over 16.6 metres in drill hole SHE-136-1 (see UEX news release dated September 11, 2010).  These intercepts lie outside of UEX's 2010 Kianna resource estimate within a large basement-hosted clay alteration zone that has the potential to contain additional areas of mineralization, and extensions of the main zone of basement-hosted mineralization at Kianna which is open is several areas.

To view maps of the 2011 drilling at the Kianna Deposit, please access this news release on UEX's website at www.uex-corporation.com.

Qualified Persons and Data Acquisition
Technical information in this news release has been reviewed and approved by R. Sierd Eriks, P.Geo., UEX's Vice President of Exploration and Erwin Koning, P.Geo., AREVA's District Geologist, West Athabasca Region, who are Qualified Persons as defined by National Instrument 43-101.

Equivalent probe results were obtained using a DHT27-STD gamma probe which collects continuous readings along the length of the drill hole. Probe results are calibrated using an algorithm calculated from the comparison of probe results against geochemical analyses in previous drill holes in the Shea Creek area.

About Shea Creek
UEX reported a combined N.I. 43-101 compliant mineral resource estimate for the Kianna, Anne and Colette deposits of 1,872,600 tonnes grading 1.54% U3O8 containing 63.57 million pounds of U3O8, in the Indicated category and an additional 1,068,900 tonnes grading 1.04% U3O8 in the Inferred category containing 24.53 million pounds of U3O8 at a cut-off of 0.3% U3O8 (see UEX news release dated May 26, 2010). This mineral resource estimate is based on drilling information up to December 31, 2009. Results from the 2010 drilling, which include the expansion of Kianna and the recently discovered 58B Deposit, are not incorporated in this resource estimate.

This estimate confirms Shea Creek as the largest undeveloped uranium resource in the Athabasca Basin. It also ranks as the third largest uranium resource in the Basin, exceeded in size only by McArthur River and Cigar Lake. Resources at Shea Creek are largely open and have excellent potential for both expansion of known areas of mineralization and discovery of new zones.

About UEX
UEX is a Canadian uranium exploration and development company actively involved in 18 uranium projects, including six that are 100% owned and operated by UEX, one joint venture with AREVA that is operated by UEX, as well as ten joint-ventured with AREVA and one under option from JCU (Canada) Exploration Company, Limited, which are operated by AREVA. The 18 projects, totaling 338,972 hectares (837,618 acres), are located in the eastern, western and northern perimeters of the Athabasca Basin, the world's richest uranium belt, which accounts for approximately 22% of the global primary uranium production. UEX is currently developing several uranium deposits in the Athabasca Basin which include the Kianna, Anne, Colette and 58B deposits at its 49%-owned Shea Creek Project, a joint venture with AREVA in the western Athabasca Basin, and the Horseshoe, Raven and West Bear deposits located at its 100%-owned Hidden Bay Project in the eastern Athabasca Basin. With a cash position of approximately $16.8 million at December 31, 2010, UEX is well-financed to carry out its 2011 exploration and development programs budgeted at approximately $9.6 million.

About AREVA Resources Canada Inc.
AREVA, a uranium exploration, mining and milling company, is a subsidiary of AREVA group, the global nuclear industry leader with an expanding presence in the renewable energies field, and 50,000 employees worldwide to help supply safer, cleaner and more economical energy to the greatest number of people. AREVA group, through its Canadian subsidiary, has significant interests in several uranium deposits in the Athabasca Basin, including the McClean Lake, Midwest and Shea Creek deposits operated by AREVA, as well as the McArthur River, Cigar Lake and Millennium deposits operated by Cameco Corporation. AREVA also holds a majority interest in the Kiggavik deposits in Nunavut.

Forward-Looking Information
This news release may contain statements that constitute "forward-looking information" for the purposes of Canadian securities laws. Such statements are based on UEX's current expectations, estimates, forecasts and projections. Such forward-looking information includes statements regarding UEX's resource estimates, outlook for our future operations, plans and timing for exploration activities, 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 information. Such forward-looking information is based on certain factors and assumptions and 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 information. Important factors that could cause actual results to differ materially from UEX's expectations include uncertainties relating to interpretation of drill results and geology, additional drilling results, continuity and grade of deposits, public acceptance of uranium as an energy source, fluctuations in uranium prices and currency exchange rates, changes in environmental and other laws affecting uranium exploration and mining, and other risks and uncertainties disclosed in UEX's Annual Information Form and other filings with the applicable Canadian securities commissions on SEDAR. Many of these factors are beyond the control of UEX. Consequently, all forward-looking information contained in this news release is 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 information. Except as required by applicable law, UEX disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise.

TABLE 1
2011 Shea Creek (Kianna) Drill Results
               
Hole Total Depth
of Hole
(metres)
Depth to
Unconformity
(metres)
From
(metres)
To
(metres)
Length
(metres)
Avg. Grade
Within the
Intersection
(% eU3O8)
Type†
 SHE-130-4 978.0 722.5 709.5 712.7 3.2 0.96 UC
       718.2 722.1 3.9 0.19 UC
       842.9 844.7 1.8 0.46 B
       845.9 846.5 0.6 0.18 B
       851.1 852.0 0.9 0.23 B
       888.1 888.8 0.7 0.30 B
      894.0 919.1 25.1 1.28 B
    including 903.7 913.2 9.5 2.30 B
      925.8 927.5 1.7 0.11 B
      935.9 938.8 2.9 0.36 B
      941.2 943.1 1.9 0.07 B

†  UC - Unconformity mineralization
B - Basement mineralization
P - Perched mineralization

Note: Uranium grades are calculated from gamma probe logging. True widths of mineralized intervals have not yet been determined.

SOURCE UEX Corporation

For further information:

Graham C. Thody
President & CEO,
(604) 669-2349

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UEX Corporation

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