UME Announces Intention to Make Normal Course Issuer Bid

    MONTEVIDEO, URUGUAY, December 11 /CNW/ - Uruguay Mineral Exploration Inc
(TSX VENTURE:UME) (LSE:UGY) ("UME", "the Company"), announces its intention to
make a Normal Course Issuer Bid ("NCIB") for its common shares ("Common
Shares") through the facilities of and subject to the approval of the TSX
Venture Exchange.

    The Board would activate the NCIB if adequate stock became available at a
price that it regarded as attractive, and in these circumstances the NCIB
would be funded from the Company's existing cash resources. Given the strength
of the Company's financial position, the NCIB would not compromise either the
funding of the Company's aggressive exploration programmes or the continuance
of the Company's dividend policy.

    In such circumstances, the Company intends to buy back over a twelve
month period up to the equivalent of C$ 2 million (approximately GBP 973,000
at the current exchange rate) of its Common Shares at market price. Any such
purchases would not exceed 5% of the total issued and outstanding shares of
the Company. The Company intends to cancel any shares purchased under the

    Tony Shearer, Chairman of the Board, commented: "The objective of the
NCIB is to increase shareholder value by acquiring shares at a price that the
Directors believe is significantly lower than the Company's fair value. The
Company has a strong Balance Sheet with low gearing, substantial cash flow
generation from current production levels, and significant exploration
prospects. The purchase of shares represents an attractive opportunity and a
sensible use of a portion of available funds for the benefit of all

    Subject to the approval of the TSX-V, the NCIB will begin after the
release of the Second Quarter Results of the 2007/2008 financial year on
January 9th, 2008 and will end twelve months thereafter on January 8th 2009,
observing the purchasing restrictions during "black out" or "close" periods
and will be performed through WH Ireland Stockbrokers Limited as independent

    The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this news release.

    Editors' note: Uruguay Mineral Exploration Inc. is a gold producer and
exploration company focused on identifying and developing mineral
opportunities in Uruguay. UME is a fully integrated mining company, possessing
the skills necessary to explore and develop its discoveries. The Company
operates the only producing gold mine in Uruguay (San Gregorio), and is also
the leading mineral exploration company in Uruguay having assembled an
exploration portfolio based on gold, base metals (copper, nickel, lead, zinc)
and diamond prospects.

    Uruguay Mineral Exploration Inc. is quoted in Canada (TSXV) and London
(AIM) and RBC Capital Markets is its Nominated Adviser and Broker.

For further information:

For further information: Uruguay Mineral Exploration Inc Tony Shearer,
Chairman: +44 20 7602-1570 David Fowler, CEO: 598 2
6016354 or Investor/Media Relations Shared Value Ltd: Emily
Bruning, +44 (0) 20 7321 5027 or RBC Capital Markets
Andrew Smith, +44 (0) 20 7029 7882 Sarah Wharry, +44
(0)20 7653 4667

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