UEX Commences Winter 2011 Hidden Bay Drilling Program

Trading Symbol: UEX-TSX

VANCOUVER, Jan. 27 /CNW/ - UEX Corporation ("UEX") is pleased to announce that its winter 2011 diamond drilling program has commenced on its 100%-owned Hidden Bay Project in the eastern Athabasca Basin of northern Saskatchewan, Canada. Two drills operated by Lantech Drilling Services Inc. are currently being utilized on the Project. Drilling totaling approximately 12,000 metres with a budget of $2.0 million will focus on targets in the vicinity of the Horseshoe and Raven deposits as well as in the Shamus Lake area.

Given the successful results from drilling the Horseshoe and Raven deposits over the last several years, UEX intends to carry out an aggressive drilling program to test additional geological and geophysical targets in the area. These outlying exploration targets include areas with resistivity and gravity anomalies similar to those at the Horseshoe and Raven deposits, suggesting the possibility of new zones of clay alteration which may be associated with uranium mineralization. This drill program will also test structural targets where projections of known faults may extend across potentially favourable lithologies that are host to uranium mineralization.

In addition to the drilling program in the Horseshoe and Raven deposit areas, further exploration drilling is planned for the Shamus Lake area ("Shamus") in the northwestern part of the Hidden Bay property. This area, which lies just south of and along strike from UEX's Telephone Lake area and the Sue Deposits on the adjacent McClean Lake mine property operated by AREVA Resources Canada Inc. ("AREVA"), has the potential for the discovery of Sue C or Eagle Point style mineralization along the Telephone Lake Fault.

Drilling at Shamus will target areas identified by recent geophysical data which are down dip from several previously intersected areas of uranium mineralization encountered near the Athabasca unconformity and in underlying basement rocks.

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. The two deposits are located less than 5 kilometres south of Cameco's Rabbit Lake milling operation, and 22 kilometres southeast of AREVA's McClean Lake milling operation. As previously announced in July 2009, the Horseshoe and Raven deposits collectively contain, at a cutoff grade of 0.05% U3O8, National Instrument 43-101 ("N.I. 43-101") compliant resources of:

  • 35.04 million pounds of U3O8 grading 0.155% U3O8 in the Indicated category; and
  • 2.72 million pounds of U3O8 grading 0.111% U3O8 in the Inferred category.

These resource estimates are supported by a technical report by K. Palmer, P.Geo. of Golder Associates Ltd. ("Golder"), with an effective date of July 15, 2009 filed on SEDAR (www.sedar.com) on September 8, 2009.

With a high proportion of the Horseshoe and Raven resource base in the Indicated category, UEX has engaged SRK Consulting (Canada) Inc. ("SRK") of Vancouver, BC to perform a scoping-level evaluation of the potential economic viability of mining the deposits. The SRK scoping report is expected to be completed in the first quarter of 2011.

To view additional information and maps of the deposits, visit UEX's website at www.uex-corporation.com. This website also contains the recent presentation on the Horseshoe and Raven deposits made by David Rhys at the Saskatchewan Geological Survey Open House in November 2010.

Qualified Persons

Technical information in this news release has been reviewed by R. Sierd Eriks, P.Geo., UEX's Vice-President of Exploration and David Rhys, P.Geo., UEX Advisory Board member, both of whom who are Qualified Persons as defined by N.I. 43-101.

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.

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.

SOURCE UEX Corporation

For further information:

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

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