UEX Reports Fall 2008 Drilling Results for the Horseshoe Northeast Area: HU-289 Intersects 0.57% U(3)O(8) over 23.0 Metres Outside of the Existing Horseshoe Resource



    Trading Symbol: UEX-TSX

    VANCOUVER, Feb. 9 /CNW/ - UEX Corporation ("UEX") is pleased to announce
final drilling results from the fall 2008 drilling program at the Horseshoe
Deposit ("Horseshoe"), which is located within UEX's 100%-owned Hidden Bay
Project in the eastern Athabasca Basin of northern Saskatchewan, Canada. The
program mainly comprised definition and stepout drilling in the Horseshoe
Northeast area, which lies outside and to the northeast of the existing
resource for the Horseshoe Deposit. Results include intercepts of 0.57%
U(3)O(8) over 23.0 metres in hole HU-289, and 0.26% U(3)O(8) over 41.5 metres
in hole HU-302, both of which lie in the Horseshoe Northeast area. In
addition, several holes were drilled in portions of the Horseshoe resource
area to upgrade areas previously classified as Inferred resources to Indicated
status.
    "These new zones of mineralization will further expand our large resource
base at Hidden Bay, and bolster our 2009 goal of establishing resources of 40
million pounds of U(3)O(8) at this project," said Stephen Sorensen, President
and CEO of UEX.
    As previously reported in the January 5, 2009 news release, the
Horseshoe, Raven, and West Bear deposits collectively contain, at a cutoff
grade of 0.05% U(3)O(8), National Instrument 43-101 ("N.I. 43-101") compliant
resources that include 7,624,414 tonnes grading 0.175% U(3)O(8), which contain
29,425,500 pounds U(3)O(8) in the Indicated category, and a further 805,200
tonnes grading 0.144% U(3)O(8) in the Inferred category containing 2,560,000
pounds of U(3)O(8). Within these combined resources, the resources for the
Horseshoe Deposit comprise 3.58 million tonnes grading 0.24% U(3)O(8) in the
Indicated category containing 18.69 million pounds of U(3)O(8), and 0.31
million tonnes grading 0.21% U(3)O(8) in the Inferred category containing 1.43
million pounds of U(3)O(8). Resources for both deposits were estimated by K.
Palmer of Golder Associates Ltd. ("Golder"). The Horseshoe resources are
documented in a technical report dated November 13, 2008 which is filed on
SEDAR. An updated report also containing the Raven Deposit ("Raven") resource
will be filed shortly on SEDAR.
    The results reported here pertain to drill holes completed since
September 1, 2008, which includes 49 diamond drill holes totaling 15,369 m,
comprising hole numbers HU-261 to HU-309 inclusive. Drill holes before that
date (numbered up to HU-259 and RU-160) have been incorporated into the
Horseshoe and Raven resources mentioned above. Results for these preceding
drill holes are summarized in the N.I. 43-101 technical report pertaining to
the Horseshoe and Raven deposits that is filed on Sedar, dated November 12,
2008, and entitled Technical Report on the Geology of, and Drilling Results
from, the Horseshoe and Raven Uranium Deposits, Hidden Bay Property, Northern
Saskatchewan.

    Horseshoe Northeast Drilling Results

    Drilling in the Horseshoe Northeast area targets areas of historically
known, but poorly defined, mineralization intersected by Gulf Minerals Canada
("Gulf") in the 1970s which lie 50 to 250 metres to the northeast of the
current Horseshoe resource area. In addition, exploration drilling targeting
potential up and down dip extensions of clay alteration known to be associated
with uranium mineralization was completed during this program. A total of 37
drill holes comprising 12,105 metres were completed in this area between
September and November 2008, providing a first pass of widely spaced drill
holes on approximately 60-metre spaced cross sections. Significant drilling
intercepts are listed in Table 1; highlights include the following:

    
    -   0.051% U(3)O(8) over 54.0 metres in hole HU-267 (section 4954N)
    -   0.580% U(3)O(8) over 7.7 metres in hole HU-289 (section 4805N)
    -   0.567% U(3)O(8) over 23.0 metres, also in hole HU-289, including
        1.903% U(3)O(8) over 3.7 metres (section 4805N)
    -   1.493% U(3)O(8) over 1.3 metres in hole HU-298 (section 4870N)
    -   0.098% U(3)O(8) over 37.8 metres in hole HU-301 (section 4870N)
    -   0.258% U(3)O(8) over 41.5 metres in hole HU-302, including 3.985%
        U(3)O(8) over 0.7 metres (section 4870N)
    -   0.066% U(3)O(8) over 41.2 metres, and 0.078% U(3)O(8) over 17.8
        metres in hole HU-308 (section 4915N)
    

    True thickness and morphology of the mineralization associated with these
intercepts has yet to be defined. These and the additional intercepts listed
in Table 1 are interpreted to outline two principal pods of mineralization
which lie beyond the current Horseshoe resources. The first includes a
possible reappearance of the B East zone which drilling had previously
suggested was terminating at section 4785N, or alternatively a new associated
pod, at depths of 300 to 400 metres below surface, represented by intercepts
in holes HU-289 and HU-302 which lie 30 to 100 metres northeast of the current
resource outline. A second significant zone, which lies at shallower depths of
80 to 250 metres below surface, and 130 to 250 metres to the northeast of the
current resource, is a broad lower-grade zone which is represented by
intercepts in drill holes HU-267 and HU-308. Mineralization style in both
zones is similar to that intercepted in other parts of the Horseshoe Deposit,
defined by nodular and disseminated pitchblende-uranophane-boltwoodite
mineralization in hematite alteration adjacent to clay alteration zones which
are hosted by folded, competent arkosic quartzite gneiss, and quartzite.
Drilling in the current winter 2009 program, which commenced in early January
2009, is following up and defining the extent of mineralization in these
areas. Drill holes HU-263 to HU-266 and HU-271 to HU-280 tested exploration
targets outside of the areas of known Gulf historical intercepts, but did not
intersect any significant mineralization.

    Horseshoe Infill Drilling Results

    Widely spaced drill holes in the Horseshoe S2 zone precluded much of this
zone from being classified as Indicated status in the recent Horseshoe
resource estimate. To better define this zone, which lies just southwest of
the higher grade Horseshoe A zone, 11 holes were drilled in October 2008.
These holes successfully defined the extent of the zone and confirmed its
continuity, with several intercepts returning higher grades than adjacent
drill holes in the resource. In addition, one hole, HU-297, was also drilled
to better define the Horseshoe C zone and overlying B zones. In total, 12
holes comprising 3,264 metres were completed. Significant results are as
follows, and additional composites are listed in Table 1:

    
    -   0.358% U(3)O(8) over 5.6 metres in hole HU-270 (S2 zone, section
        4516N)
    -   0.885% U(3)O(8) over 7.6 metres in hole HU-282 (S2 zone, section
        4495N)
    -   0.073% U(3)O(8) over 37.7 metres in hole HU-284 (S2 zone, section
        4495N)
    -   0.457% U(3)O(8) over 7.3 metres in hole HU-286 (S2 zone, section
        4520N)
    -   0.229% U(3)O(8) over 8.0 metres in hole HU-288 (S2 zone, section
        4520N)
    -   0.225% U(3)O(8) over 34.2 metres in hole HU-291 (S2 zone, section
        4520N)
    -   0.176% U(3)O(8) over 25.0 metres in hole HU-297 (BE zone, section
        4715N)
    

    These results will be incorporated into the Horseshoe wireframe model,
and will form part of a global Horseshoe resource update that will include the
Horseshoe Northeast results once the current drilling program is completed,
which is expected to be in April 2009. The mineralization in these intercepts
occurs in shallow dipping lenticular zones, so the intercepts do approximate
true thickness since they cross these zones at a high angle.

    Winter 2009 Drilling Program

    The winter 2009 drilling program on the Hidden Bay property is now well
underway utilizing three diamond drills operated by Driftwood Diamond Drilling
Ltd. of Smithers, B.C. Two drills are currently defining the Horseshoe
Northeast mineralization, and a third drill is testing extensions of the
southwestern end of the Raven Deposit, where additional historical drilling
intersections also lie outside of the current Raven resource. The current
winter program is budgeted at $5.5 million, which will include approximately
25,000 metres of drilling. In addition to defining extensions of
mineralization in the Horseshoe Northeast and Raven West areas, this program
will also test the following:

    
    -   Currently open extensions of the eastern part of the Raven Deposit;
    -   The area between the two deposits where mineralization was
        historically intersected;
    -   The down dip extent of the alteration zones that host the Raven and
        Horseshoe deposits; and
    -   Additional outlying exploration targets where clay alteration
        intersected by historical drilling is coincident with resistivity and
        gravity anomalies that are comparable with the setting of known
        mineralization.
    

    UEX intends to update its existing, previously disclosed N.I. 43-101
compliant resources on the Horseshoe and Raven deposits after the completion
and receipt of all geochemical data from the winter drilling program. With
over 90% of resources at Horseshoe and Raven already in the Indicated
category, metallurgical studies completed on both deposits, environmental
baseline studies underway, and initial geotechnical work completed, UEX is
well advanced in addressing components of upcoming scoping and feasibility
studies which will commence fully once the global resource is completed after
the winter drilling program.

    About the Horseshoe and Raven Deposits

    Mineralization at the Horseshoe and Raven deposits comprises shallow
dipping zones of hematization with disseminated and veinlet
pitchblende-boltwoodite-uranophane that are hosted by folded arkosic quartzite
gneiss. Mineralization comprises a combination of disseminated
pitchblende-chlorite-hematite, and narrower, higher grade nodular and veinlet
pitchblende in hematite-clay alteration. Mineralization in the resource area
at Horseshoe has been defined to date continuously over a strike length of
approximately 600 metres and a dip length of up to 300 metres, occurring at
depths of 100 to 420 metres below surface. At Raven, which lies 0.5 kilometres
west of Horseshoe, mineralization in the current resource has been defined
over a strike length to date of approximately 700 metres at depths below
surface of 100 to 300 metres in two dominant, subhorizontal zones. Both
deposits are hosted by competent basement rocks that could be amenable to both
open-pit and conventional underground ramp access mining methods, pending a
positive feasibility study. The deposits are located less than 5 kilometres
south of Cameco Corporation's Rabbit Lake operations, and 12 kilometres
southeast of AREVA Resources Canada Inc.'s ("AREVA") McClean Lake operations.
    Raven and Horseshoe mineralization comprises pitchblende and other
uranium oxides and silicates without potentially deleterious nickel-arsenide
minerals that may affect extraction and pose tailings disposal problems. As
reported in the September 29, 2008 news release, representative samples
derived from composited drill core assay rejects from the Horseshoe Deposit,
and from three HQ diameter metallurgical holes from both the Horseshoe and
Raven deposits, have undergone preliminary testing for leach and effluent
treatment conditions and grindability analysis under the direction of Melis
Engineering Ltd. at SGS Lakefield Research Limited in Lakefield, Ontario.
Leaching tests on composites indicate that the uranium in the Horseshoe and
Raven deposits is easily leached under relatively mild atmospheric leach
conditions. The excellent extraction levels are comparable to other
metallurgically simple basement hosted deposits in the region, including the
nearby Eagle Point Deposit.
    In progressing toward a combined feasibility study on the Horseshoe and
Raven deposits, environmental baseline studies were commenced by Golder in
2006, and Golder continues to collect biological, hydrogeological and other
environmental data. During the 2007 and 2008 drilling programs, geotechnical
studies of the area of the deposits also commenced, assessing rock properties
and hydrogeology. Further baseline and geotechnical studies are scheduled for
2009 following the input of more detailed information on the project design
generated from initial scoping work prior to commencement of the full
feasibility study. Several additional infill holes were drilled to upgrade
Inferred portions of the Horseshoe Deposit to Indicated status in October,
2008, which confirmed mineralization continuity in the two largest Inferred
zones at Horseshoe; results will be reported when received.
    The technical information in this document has been compiled and reviewed
by D. Rhys, P. Geo., a geological consultant to UEX and a qualified person as
defined by N.I. 43-101.

    About UEX

    UEX is a Canadian uranium exploration and development company actively
involved in 19 uranium projects, including seven that are 100% owned and
operated by UEX, one joint venture with AREVA that is operated by UEX, ten
joint-ventured with AREVA and one under option from Japan-Canada Uranium
Company, Limited, which are operated by AREVA. The 19 projects, totaling
374,513 hectares (925,442 acres), are located in the eastern, western and
northern perimeters of the Athabasca Basin, the world's richest uranium belt,
which accounts for approximately 23% of the global primary uranium production.
UEX is currently developing several uranium deposits in the Athabasca Basin
which include the Kianna, Anne and Colette deposits at its Shea Creek Uranium
Project, a joint venture with AREVA in the western Athabasca Basin, and the
West Bear, Raven and Horseshoe deposits located at its 100% owned Hidden Bay
Project in the eastern Athabasca Basin. UEX's exploration and development
budgets planned for 2009 total approximately $16.5 million, of which UEX will
be responsible for approximately $10.9 million, with additional funds
available for potential expansion pending the drilling results.

    
           ON BEHALF OF THE BOARD OF DIRECTORS OF UEX CORPORATION

                             Stephen H. Sorensen,
                               President & CEO
    

    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 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 statements. Important factors that could
cause actual results to differ materially from UEX's expectations include
uncertainties relating to interpretation of drill results and geology,
continuity and grade of deposits, fluctuations in uranium prices and currency
exchange rates, and other risks and uncertainties disclosed in UEX's Annual
Information Form and other filings with the securities commission on SEDAR.
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. 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.
                     Fall 2008 Horseshoe Drilling Program
               Intersections from Drill Holes HU-261 to HU-309.

    Only intervals with composite grades greater than 0.05% U(3)O(8) and a
grade-thickness product greater than 0.1 are listed below. All analyses were
performed by Saskatchewan Research Council by ICP. No intervals greater than
0.05% U(3)O(8) and a grade thickness product higher than 0.1 were intersected
in holes HU-263-266, 268, 271-280, 285, 290, 293, 299, 303 and 309. Drill
holes HU-271 and HU-277 were lost before reaching target depth.

    -------------------------------------------------------------------------
    Hole         Section      Depth     From      To     Length   Avg. Grade
                 (North)     of Hole  (metres) (metres) (metres) (% U(3)O(8))
                             (metres)
    -------------------------------------------------------------------------
    HU-261     4890            378.7    338.0    339.8      1.8        0.202
    HU-261                              354.6    355.1      0.5        1.474
    -------------------------------------------------------------------------
    HU-262     4890            360.0    221.9    223.7      1.8        0.071
    -------------------------------------------------------------------------
    HU-267(*)  4954            282.0    102.0    104.6      2.6        0.074
    HU-267                              112.0    114.0      2.0        0.055
    HU-267                              121.5    122.5      1.0        0.124
    HU-267                              133.0    142.0      9.0        0.055
    HU-267                              161.0    162.0      1.0        0.132
    HU-267                              165.8    167.0      1.2        0.154
    HU-267                              202.0    256.0     54.0        0.051
    HU-267     including                202.0    205.0      3.0        0.210
    HU-267     including                212.0    220.0      8.0        0.076
    HU-267     including                237.0    240.0      3.0        0.204
    HU-267     including                255.0    256.0      1.0        0.206
    -------------------------------------------------------------------------
    HU-269     4516            221.0    128.6    129.2      0.6        0.499
    -------------------------------------------------------------------------
    HU-270     4516            221.0    173.5    179.1      5.6        0.358
    HU-270     including                178.7    179.1      0.4        4.197
    -------------------------------------------------------------------------
    HU-281     4820            371.0    211.9    213.2      1.3        0.234
    -------------------------------------------------------------------------
    HU-282     4495            209.0    166.7    174.3      7.6        0.885
    HU-282     including                172.6    174.3      1.7        3.048
    -------------------------------------------------------------------------
    HU-283     4820            340.0    296.2    297.1      0.9        0.629
    -------------------------------------------------------------------------
    HU-284     4495            212.0    133.5    171.2     37.7        0.073
    HU-284     including                155.4    157.4      2.0        0.378
    HU-284                              183.2    185.0      1.8        0.081
    -------------------------------------------------------------------------
    HU-286     4520            251.0    189.0    196.3      7.3        0.457
    HU-286     including                191.0    192.0      1.0        1.580
    HU-286                              207.0    207.6      0.6        0.506
    -------------------------------------------------------------------------
    HU-287     4870            329.0    160.7    162.4      1.7        0.094
    HU-287                              255.0    258.0      3.0        0.058
    HU-287                              285.0    285.7      0.7        0.391
    -------------------------------------------------------------------------
    HU-288     4520            242.0    178.0    186.0      8.0        0.229
    -------------------------------------------------------------------------
    HU-289     4805            409.0    232.0    239.7      7.7        0.580
    HU-289     including                232.0    233.9      1.9        1.492
    HU-289                              315.9    317.5      1.6        0.196
    HU-289                              350.1    373.1     23.0        0.567
    HU-289     including                354.9    358.7      3.8        1.280
    HU-289     including                355.8    356.5      0.7        4.598
    HU-289     including                369.1    372.8      3.7        1.903
    HU-289     including                369.6    370.2      0.6        5.706
    -------------------------------------------------------------------------
    (*) HU-267 interval also composites to 0.035% U3O8 over 156 m, from
        100.0-256.0 m



    -------------------------------------------------------------------------
    Hole         Section      Depth     From      To     Length   Avg. Grade
                 (North)     of Hole  (metres) (metres) (metres) (% U(3)O(8))
                             (metres)
    -------------------------------------------------------------------------
    HU-291     4520            221.0    143.8    178.0     34.2        0.225
    HU-291     including                172.4    178.0      5.6        0.395
    -------------------------------------------------------------------------
    HU-292     4870            401.0    276.5    277.5      1.0        0.117
    HU-292                              331.5    332.0      0.5        1.486
    -------------------------------------------------------------------------
    HU-294     4805            402.0    212.7    214.4      1.7        0.088
    -------------------------------------------------------------------------
    HU-295     4870            311.0    154.5    155.5      1.0        0.134
    HU-295                              174.6    179.0      4.4        0.129
    HU-295                              287.0    287.4      0.4        1.191
    HU-295                              296.4    296.8      0.4        0.495
    -------------------------------------------------------------------------
    HU-296     4560            239.0    191.2    195.0      3.8        0.108
    -------------------------------------------------------------------------
    HU-297     4715            455.0    274.5    276.1      1.6        0.358
    HU-297                              281.9    285.0      3.1        0.055
    HU-297                              292.4    294.0      1.6        0.198
    HU-297                              308.1    333.1     25.0        0.176
    HU-297                              339.5    344.0      4.5        0.135
    -------------------------------------------------------------------------
    HU-298     4870            464.0    346.2    347.5      1.3        1.493
    HU-298                              374.0    377.0      3.0        0.050
    HU-298                              392.5    397.2      4.7        0.178
    -------------------------------------------------------------------------
    HU-300     4954            419.0    303.8    305.6      1.8        0.085
    HU-300                              313.6    314.9      1.3        0.147
    -------------------------------------------------------------------------
    HU-301     4870            302.0    153.2    191.0     37.8        0.098
    HU-301     including                186.9    189.2      2.3        0.792
    -------------------------------------------------------------------------
    HU-302     4805            453.0    342.5    384.0     41.5        0.258
    HU-302     including                342.5    345.5      3.0        0.814
    HU-302     including                357.9    358.6      0.7        3.985
    HU-302     including                377.0    384.0      7.0        0.449
    HU-302                              413.5    414.5      1.0        0.154
    -------------------------------------------------------------------------
    HU-304     4954            260.0    158.9    164.0      5.1        0.068
    HU-304                              184.0    185.8      1.8        0.092
    -------------------------------------------------------------------------
    HU-305     4870            497.0    224.0    225.5      1.5        0.111
    HU-305                              261.5    266.5      5.0        0.089
    -------------------------------------------------------------------------
    HU-306     4985            294.0     94.0     99.0      5.0        0.105
    HU-306                              133.0    140.5      7.5        0.104
    HU-306                              218.0    219.0      1.0        0.137
    -------------------------------------------------------------------------
    HU-307     4954            302.0    152.6    154.7      2.1        0.111
    HU-307                              166.7    168.3      1.6        0.080
    HU-307                              177.1    189.0     11.9        0.055
    -------------------------------------------------------------------------
    HU-308     4915            305.0    126.3    167.0     41.2        0.066
    HU-308                              267.0    284.3     17.3        0.078
    -------------------------------------------------------------------------
    

    %SEDAR: 00017609E




For further information:

For further information: UEX CORPORATION, SUITE 1007 - 808 NELSON
STREET, VANCOUVER, B.C., CANADA , V6Z 2H2, PH: (604) 669-2349, FAX (604)
669-1240, Website: www.uex-corporation.com, email: uex@intergate.ca

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