ESO signs drill contract for Hook Lake claims, South Athabasca Basin, Saskatchewan; cash position secure at $6.2 million - No ABCP

    Trading Symbol TSX-V - ESO
    Frankfurt - E2G

    VANCOUVER, Aug. 29 /CNW/ - ESO Uranium Corporation (TSX-V: ESO), the
Company, is pleased to announce that a second contract has been signed with
Cyr Drilling International Ltd of Winnipeg. This will enable the start, in the
next two weeks, of a 10 hole diamond drill program on its 132,000 acre (52,800
hectare) Hook Lake uranium claims. This program will be carried out using
helicopter support for the drilling operation to allow access prior to winter
    The drilling will test targets on a possible extension of the
north-northeasterly striking Dirksen Structure which appears to extend through
targets identified on the 100% owned Hook Lake claims. A second target area
has been selected for the drill program that is on a sub-parallel structure
lying to the west of the Dirksen. A drill hole (DER-4) by Imperial Oil and
SMDC on the Dirksen structure is located 4 km from the south central boundary
of the Hook Claims. This hole had grades of 0.24% (4.8 lb/t) U3O8 and 1.35%
nickel reported for a 2.5 meter intercept located 9.8 meters below the
unconformity at the base of the Athabasca Basin.
    Drill target selection for the Hook claims has been based on airborne and
ground geophysical surveys which included the Fugro Megatem airborne system
and high resolution ground resistivity surveys carried out by Peter Wallcott
and Associates. The drill target areas are near the up-ice head of boulder
trains with previously identified geochemical anomalies; these anomalies
include boron, illitic clay and other pathfinder elements that are seen in the
alteration plumes above high grade Athabasca type uranium deposits.
    ESO confirms that it does not hold asset backed commercial paper (ABCP)
that may have recently caused a reduction of liquidity or financial losses for
some companies. The ESO treasury is not exposed to any financial instruments
directly involving the U.S. residential property market, mortgages or
automobile loans. The Company's total cash and cash equivalents of
approximately $6.2 million are held in cash and banker's acceptances
(maturities of 90 days or less) with major Canadian banks and as advances to

    For reference, the current spot price quoted by for uranium oxide
is US$90 per pound of U3O8; an assay reported as 1.0% of U3O8 is equal to
20 pounds of uranium oxide per short ton - the conversion of percent metal or
metal oxide from percent to pounds per short ton is done by multiplying the %
value by 20.

    On behalf of the Board of Directors of ESO Uranium Corp.

    "Ben Ainsworth"
    Vice President, Exploration

    Please reference the ESO Uranium website for updated information.

    The Toronto Venture Exchange has not reviewed nor accepted responsibility
for the adequacy or accuracy of the contents of this news release which has
been prepared by management. Statements contained in this news release that
are not historical facts are forward looking statements as that term is
defined in the private securities litigation reform act of 1995. Such forward
looking statements are subject to risks and uncertainties which could cause
actual results to differ materially from estimated results. Such risks and
uncertainties are detailed in the Company's filing with the Securities and
Exchange Commission.

For further information:

For further information: For Corporate Communications please contact:
Tom Corcoran or Bob Meister, ESO Uranium Corp., Vancouver, BC, Phone: (604)
629-0293, Toll Free: 1-866-629-0293, Email:

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