UME to Purchase Diamond Exploration Database

    LONDON, March 19 /CNW/ - Uruguay Mineral Exploration Inc. ("UME" or "the
Company") today announces that it has signed an agreement with SouthernEra
Diamonds Inc. ("SouthernEra") (TSX: SDM) to purchase its Uruguayan diamond
exploration database. Under the terms of the agreement, SouthernEra will
receive a cash payment of US$20,000 and an additional 0.8% royalty on any net
diamond sales from any diamond deposit discovered by the Company in Uruguay. A
further 0.2% royalty will be paid to Mr. N.R Baker, who has an interest in the

    The database, which relates to exploration completed by SouthernEra and
joint venture partners in Uruguay between 1993 and 2001, includes airborne
geophysical survey data, heavy mineral results from reconnaissance and
follow-up stream sample programmes, electron microprobe analysis of selected
kimberlite indicator minerals, and results of a diamond drill programme.

    The geophysical data includes 3,275 line kilometres of airborne magnetic
and electromagnetic data from surveys of four areas of northern Uruguay, all
of which were completed during 1994 at a line spacing of 200 metres. UME
intends to process and interpret this aeromagnetic data for kimberlite
pipe-like targets.

    David Fowler, Chief Executive of Uruguay Mineral Exploration, commented:
"The database we have purchased comprises more than 500 sample points, and
more than 800 electron microprobe analyses. During the current quarter, we
will incorporate this database, together with the processed geophysical data,
into our diamond exploration programme. We expect this to reduce the need for
sampling in some areas and accelerate our exploration programme for the Cinco
Rios project. During February 2007, we carried out a 50 metre line-spaced
ground magnetic survey for a total of 200 line kilometers at Cinco Rios and
identified targets, some of which have reported pyrope garnet and chrome
spinel, that will be trenched during the current quarter. These recent results
and the purchase of the database support our plan to continue to build value
in the project prior to a farm out or initial public offering."

    Qualified Person Statement

    The information presented in this press release has been reviewed and
verified by Mr Martin Jackson, Exploration Manager Diamonds. Mr Jackson is the
Qualified Person for the purposes of the AIM Guidance Note for Mining, Oil and
Gas Companies dated March 2006. Mr Jackson is a member of the Australasian
Institute of Mining and Metallurgy (AusIMM) and SEG. He has 20 years of
international experience in diamond exploration.

    Forward Looking Statements

    All statements, other than statements of historical fact, contained or
incorporated by reference in this news release, including any information as
to the future financial or operating performance of the Company, constitute
"forward-looking statements" within the meaning of certain securities laws,
including the "safe harbour" provisions of the Securities Act (Ontario) and
the United States Private Securities Litigation Reform Act of 1995 and are
based on expectations estimates and projections as of the date of this news
release. There can be no assurance that such statements will prove to be
accurate, such statements are subject to significant risks and uncertainties,
and actual results and future events could differ materially from those
anticipated in such statements. Forward-looking statements include, without
limitation success of exploration activities; permitting time lines; the
failure of plant; equipment or processes to operate as anticipated; accidents;
labour disputes; requirements for additional capital title disputes or claims
and limitations on insurance coverage. The Company disclaims any intention or
obligation to update or revise any forward looking statements whether as a
result of new information, future events and such forward-looking statements,
except to the extent required by applicable law.

    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 Collins Stewart Europe Limited is its Nominated Adviser and Broker.

For further information:

For further information: Uruguay Mineral Exploration Inc Tony Shearer,
Chairman 44 20 7602-1570 or David Fowler, CEO 598 2
6016354 or Shared Value Ltd Emily Bruning +44 20 7321
5027 or Collins Stewart Europe Limited Chris Rollason
+44 20 7523 8308

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