Uracan discovers up to 2.83 pounds per ton U3O8 over 41.7 feet in shallow diamond drilling in Saskatchewan

    Trading Symbol: (TSX - V): URC


    -   Multiple zones of mineralization including 12.7 meters of 0.142% U3O8
        (41.7 feet of 2.83 pounds per ton U3O8) only 30 meters from surface,
        and 19.5 meters of 0.083% U3O8 (64 feet of 1.66 pounds per ton U3O8)
        75 meters from surface
    -   These drill holes at Portage Zone represent a new discovery in
    -   Additional wide zones of uranium mineralization at Narrows Lake, 1 km
        north of Portage zone

    VANCOUVER, July 10 /CNW/ - Uracan is pleased to announce initial drill
results from its 100% owned Pipewrench Lake Property located 100 km south of
the Athabasca Basin in Saskatchewan.
    A total of 2,596 meters of diamond drilling in 16 holes was completed
prior to spring break up. Three zones outlined in the summer 2007 channel
sampling and mapping programs were drill tested: Portage Zone, Narrows Lake
Zone and the Pipewrench North Zone.

    Portage Zone Drilling
    A total of 520.5 meters in four holes was completed on the Portage Zone.
The Portage Zone has had no historic drilling and limited historic surface
sampling and represents a new discovery on the Pipewrench Lake Property.
Follow up surface work is planned during the upcoming summer work program,
with additional drilling contemplated for this new discovery area. Three
diamond drill holes encountered the mineralized zone with:

    -   12.7 m of 0.142% U3O8 (41.7 feet of 2.83 lb/t U3O8) (08PWL-014)
    -   19.5m of 0.083% U3O8 (63.97 feet of 1.66 lb/t U3O8) (08PWL-014)
    -   7.5m of 0.054% U3O8 (24.6 feet of 1.08 lb/t U3O8) (08PWL-013)
    -   7.5m of 0.039% U3O8 (24.6 feet of 0.78 lb/t U3O8) (08PWL-013)
    -   16.5m of 0.018% U3O8 (54.1 feet of 0.36 lb/t U3O8) (08PWL-015)

    This drilling targeted uranium mineralization encountered in surface
channel sampling in 2007. Uranium mineralization at the Portage showing is
hosted by pegmatite dykes and pelitic gneisses.
    The exact structural setting and orientation of the mineralized zone at
Portage is uncertain, but is thought to be a steeply dipping antiformal fold
structure based on geological mapping of the area. The topographic low hosting
the Portage Zone mineralized outcrop extends for at least 275 meters, and
appears to extend under small lakes to the north and south of the trend.
    Mineralization at the Portage Zone is open along strike to the north and
south, as well as down dip. Mineralization also extends to surface, as noted
in the 2007 channel sampling. There is very good potential that additional
uranium mineralization may exist along the eastern limb of the interpreted
antiformal structure as well as along strike to the north and south.
    Holes 08PWL-013 and 08PWL-014 were drilled off the same drill set up at a
110 azimuth. Hole 08PWL-014 was drilled at a steeper angle (-70 degrees) than
hole 13 (-45 degrees). Hole 08PWL-015 was drilled at a 290 azimuth and at a
dip of -45 degrees. The two main mineralized zones occur approximately
20 meters apart, and have several narrow mineralized intervals (1.5 to
3 meters wide) between them with grades ranging between 0.019% and 0.062%
U3O8. Uranium mineralization is focused in these main mineralized zones.
    08PWL-015 was collared approximately 100m south of 08PWL-013 and
08PWL-014 to undercut the area of 2007 channel sampling. This drill hole,
collared in the mineralized zone, was drilled at a different orientation to
holes 13 and 14 to confirm the dip of the mineralization noted in them. Drill
hole 08PWL-016 was drilled at a 110 azimuth from the same setup as 08PWL-015
and did not encounter the mineralized zone, indicating that the mineralization
has a steep southwest dip on the western limb of the antiformal structure.

    Narrows Lake Drilling
    At the Narrows Lake Zone has had limited historical surface work and
diamond drilling in the 1960s and 1970s. Uracan's winter 2008 diamond drill
program drilled 530 m over three holes and encountered:

    -   21.9 meters of 0.016% U3O8 (71.85 feet of 0.32 lbs/t U3O8) in
        08PWL-010 and
    -   18 meters of 0.020% U3O8 (59.1 feet of 0.4 lbs/t U3O8) in 08PWL-010

    Mineralization in this area is hosted by pegmatites within pelitic
gneisses as seen elsewhere on the property. Additional work is planned this
summer to further outline the controls of mineralization at Narrows Lake.

    Pipewrench North Drilling
    Uracan drilled 1,545 meters in nine holes at the Pipewrench North Zone.
Results indicate that the trend of the mineralization is oriented
approximately azimuth 220 within a topographic low. Mineralization is hosted
by a sequence of pegmatites and pelitic gneisses, with up to 3.27m of 0.046%
U3O8 (10.7 feet of 0.92lbs/t U3O8) encountered. Further work on Pipewrench
North is planned for the upcoming summer exploration program.

    Assay Summary Table
    The Portage, Narrows Lake and Pipewrench North zones occur within
Uracan's 100km(2) Pipewrench Lake Property which is located within the
Wollaston Domain of the Canadian Shield. The Wollaston Domain forms the
basement rocks of the majority of the uranium deposits in the Athabasca Basin.
It is a prospective area for significant uranium mineralization in
Saskatchewan, and is well exposed at surface on the Pipewrench Lake Property.
    Selected results from the winter 2008 diamond drill program are listed in
the table below:

    Area             Drill Hole    From (m)    To (m)  Length (m)     U3O8%
    Portage           08PWL-013      24.68      32.18        7.5      0.054
    Portage           08PWL-013      38.18      39.68        1.5      0.023
    Portage           08PWL-013      47.18      48.68        1.5      0.062
    Portage           08PWL-013      57.68      65.18        7.5      0.039
    Portage           08PWL-014       38.2       50.9       12.7      0.142
      includes        08PWL-014       39.7         44        4.3      0.383
    Portage           08PWL-014       65.1       68.1          3      0.019
    Portage           08PWL-014       81.1      100.6       19.5      0.083
      includes        08PWL-014       81.1       85.6        4.5      0.214
    Portage           08PWL-015        8.5         25       16.5      0.018
    Pipewrench North  08PWL-001      25.13       28.4       3.27      0.046
    Narrows Lake      08PWL-010       12.6       34.5       21.9      0.016
    Narrows Lake      08PWL-010       85.5      103.5         18      0.020
    Narrows Lake      08PWL-010      167.5      170.5          3      0.052

    A full listing of the winter 2008 diamond drilling results and drill hole
locations will be posted to Uracan's website in the near future: www.uracan.ca
    Samples were shipped in sealed containers to SRC Geoanalytical
Laboratories of Saskatoon Saskatchewan for analysis. SRC Geoanalytical
Laboratories is the laboratory facility used for all assays from the
Pipewrench Lake Property program. All samples were analyzed using standard ICP
partial and total digestion methods.
    A QA/QC program was implemented as part of the sampling procedure for the
drill program. Field duplicates and field blanks were inserted into the sample
stream with at least one blank and one duplicate inserted per group of 24
samples sent to the laboratory. The laboratory also has an extensive in house
quality control system.

    Uracan Resources Ltd. is a publicly-listed uranium exploration company,
exploring for shallow, bulk tonnage style of uranium mineralization in Canada.
Uracan is led by a team of proven exploration and mine entrepreneurs and
mine-builders. The information in this news release has been prepared and
reviewed by Marc Simpson, P. Geo., the Company's Qualified Person under
National Instrument 43-101 standards.

    The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release. The foregoing
information may contain forward-looking statements relating to the future
performance of Uracan Resources Ltd. Forward-looking statements, specifically
those concerning future performance, are subject to certain risks and
uncertainties, and actual results may differ materially. These risks and
uncertainties are detailed from time to time in the Company's filings with the
appropriate securities commissions.

For further information:

For further information: Gregg J. Sedun, President and CEO, (604)
682-5580; Keith Schaefer, Vanguard Shareholder Solutions, (604) 608-0824

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