UraMin Inc. ("UraMin" or the "Company") - Mining Convention with the Republic of Senegal



    
    -  License area is highly prospective with known uranium mineralisation
       historically reported at 3.8 million lbs at a grade of 0.24% U3O8
    -  Over 40,000 metres of historical drilling previously undertaken
    -  Stable, favourable fiscal regime for duration of the prospecting and
       mining period
    

    TORONTO, March 22 /CNW/ - UraMin is pleased to announce that its 100%
subsidiary, UraMin Exploration Limited, has entered into a Mining Convention
with the Republic of Senegal to prospect for and, if economically viable, mine
uranium and related minerals in the Saraya East region of Eastern Senegal.
    The area covered by the Mining Convention is described as "Saraya East"
and is 2,992 km(2) in extent. The area was extensively explored by COGEMA-BRGM
in a three phase program during the late 1950's, 1970's and early 1980's.
Uranium mineralisation was identified as being Episyenite hosted, resulting
from hydrothermal remobilisation and alteration of the surrounding granites.
An historical estimate of approximately 750,000 tonnes at an average grade of
0.24% U3O8, which equates to 3.8 million lbs of U3O8, was completed by
COGEMA(*). However, the project was not economical to mine at the uranium prices
of the time. Recorded intersections are at depths ranging from 50 to 220
meters below the surface. In terms of the Convention, UraMin Exploration has
committed itself to spending US$5,996,000 on its prospecting activities in
Senegal over a three year period.
    The Mining Convention provides for favourable fiscal conditions, many of
which remain stable for the duration of the prospecting and mining period.
During the prospecting period the Company benefits from a total tax, customs
and excise exemption, save for limited UEMOA royalties. In addition, provision
is made for a temporary admission system, free imports and exports, the
opening of local bank accounts and other benefits aimed at facilitating
prospecting and decreasing costs.
    Following preparation of a feasibility study, if the project should
proceed to the mining phase, UraMin is required to incorporate a local
Senegalese company which shall be responsible for conducting, and shall
benefit from, the mining operations. The State shall be entitled to a free
carried 10% interest in such company and, at its election and on commercial
terms, to acquire a further 20% interest for value, which value must be agreed
or independently determined. All moneys invested by UraMin in research or
mining, however, are recoverable from the mining company prior to distribution
of any profits. The Convention also provides for numerous tax, customs and
excise exemptions and benefits during the mining period, free export of
product mined and the stability of tax and legal provisions.
    Ian Stalker, Chief Executive said, "UraMin's Senegalese project
represents an exciting advanced greenfields opportunity in an area of
established prospectivity. The project, along with our established greenfields
projects in Canada, Mozambique and Tchad, serves to provide depth to UraMin's
exploration portfolio."
    Sam Jonah, Chairman, said, "UraMin is happy to include Senegal in its
portfolio of greenfields operations. The Senegalese project evidences UraMin's
ongoing growth in its quest to become a leading global uranium producer
focussed on Africa. I have every confidence that UraMin's management team will
ensure the successful implementation of UraMin's latest project."

    
    Glossary

    -------------------------------------------------------------------------
    Feasibility   a comprehensive study of a deposit in which all geological,
    study         engineering, operating, economic and other relevant
                  factors are considered in sufficient detail for it to
                  reasonably serve as the basis for a final decision by a
                  financial institution to finance the development of the
                  deposit for mineral production
    -------------------------------------------------------------------------
    UEMOA         Union Economique et Monétaire Ouest Africaine
    -------------------------------------------------------------------------
    COGEMA-BRGM   Compagnie générale des matières nucléaires - Bureau de
                  recherches géologiques et minières
    -------------------------------------------------------------------------
    Lb            Pound
    ------------------------------------------------------------------------
    U3O8          triuranium octaoxide
    -------------------------------------------------------------------------
    Uranium       heavy silvery-white metallic element found in several
                  minerals, notably uraninite and carnotite
    -------------------------------------------------------------------------

    (*) Information in this document which relates to the COGEMA historical
        estimates has been reviewed by Mr. G M Greenway of Snowden Mining
        Industry Consultants. A Registered Natural Scientist with the South
        African Council for Natural Scientists. Mr Greenway is an independent
        consultant to UraMin and has consented to the inclusion in this
        announcement of his name in the form and context in which it appears.
        No more recent estimates or data are available to the issuer. The
        UraMin Qualified Person ("QP") has not done sufficient work to
        classify the historical estimates as current Mineral Resources as per
        the CIM (2005) guidelines and section 2 of National Instrument
        43-101. The information used in the estimation of these historical
        resource estimates has not been verified by the QP and these
        estimates should not be relied upon. The issuer is not treating the
        historical estimates as current Mineral Resources as defined in
        sections 1.2 and 1.3 of National Instrument 43-101 and as per the CIM
        (2005) guidelines. The QP considers the historical estimates to be
        relevant to UraMin's proposed exploration programmes. A review of the
        available documentation suggests that in preparing historical
        resource estimates COGEMA applied reasonable practices.
    

    Background Information:

    UraMin (www.uramin.com) was established in 2005 to acquire and develop
mineral properties, predominantly uranium. Following the private placement the
Company currently has working capital of approximately US$300 million and a
market capitalization of approximately US$1.3 billion on an undiluted basis.
UraMin (www.uramin.com) is traded on the Alternative Investment Market of the
London Stock Exchange plc and the Toronto Stock Exchange under the symbol UMN.
    UraMin is currently focusing on the development of its advanced stage
exploration projects at Trekkopje in Namibia, Bakouma in the Central African
Republic and Ryst Kuil in South Africa. Through a South African joint venture,
UraMin also enjoys additional prospecting license applications for important
uranium deposits in the Karoo, South Africa. No assurance can be given that
remaining applications for prospecting licences will be successful.

    Forward-Looking Statements:

    This press release contains statements that are "forward-looking".
Generally, the words "expect," "intend," "estimate," "will" and similar
expressions identify forward-looking statements. By their very nature,
forward-looking statements are subject to known and unknown risks and
uncertainties that may cause our actual results, performance or achievements,
or that of our industry, to differ materially from those expressed or implied
in any of our forward-looking statements. Statements in this press release
regarding the Company's business or proposed business, which are not
historical facts, are "forward looking" statements that involve risks and
uncertainties, such as estimates and statements that describe the Company's
future plans, objectives or goals, including words to the effect that the
Company or management expects a stated condition or result to occur. Since
forward-looking statements address future events and conditions, by their very
nature, they involve inherent risks and uncertainties. Actual results in each
case could differ materially from those currently anticipated in such
statements.
    Investors are cautioned not to place undue reliance on forward-looking
statements, which speak only as of the date they are made.





For further information:

For further information: Ian Stalker, Chief Executive Officer; Neil
Herbert, Finance Director; James Pitman, Vice President Business Development,
Tel: +27 11 783 5056; London, Canaccord Adams Limited, Robin Birchall/Tyler
Broda, Tel: +44 20 7050 6741; Toronto, Steve Vaughan, (416) 643-6924

Organization Profile

URAMIN INC.

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