UraMin Announcement to U.S. Holders - Tax Information

    TORONTO, June 12 /CNW/ - On June 12, 2007, UraMin Inc. ('UMN' TSX and
AIM) announced that the Company has determined that it is a passive foreign
investment company ("PFIC") for U.S. federal income tax purposes and has been
a PFIC since 2005. This determination is important to all U.S. persons who
hold equity in the Company (including individual U.S. citizens or permanent
residents along with U.S. corporations, partnerships, trusts, and estates).
Further, this determination of PFIC status may be contrary to certain
representations or warranties made to U.S. purchasers in private placements
since 2005.
    Generally, a PFIC is a non-U.S. corporation that has, for a particular
year, either (i) at least 75% of revenues being passive investment income (the
"income test") or (ii) at least 50% of gross assets being a type that produces
passive investment income (the "assets test"). The Company has determined that
it is and has been since 2005 a PFIC under the assets test. A U.S. holder of
equity securities in a PFIC is subject to special tax rules. In general, the
U.S. equity holder is subject to tax at the highest rates applicable to
ordinary income on certain distributions from a PFIC and on the holder's gain
from the sale of the PFIC's equity securities. Under certain circumstances,
deferred taxes and interest may also be imposed as if the PFIC-related income
had been earned by the U.S. equity holder ratably over its holding period in
the PFIC equity. As an alternative to the default U.S. tax consequences of
holding equity in a PFIC, U.S. holders may make a so-called qualifying
electing fund ("QEF") election. With a valid QEF election, a U.S. holder
reports each year its pro rata share of the PFIC's ordinary earnings and net
capital gain. Furthermore, such an election potentially entitles the U.S.
holder to treat gain on the sale of the PFIC's equity securities as capital
gain (if permitted under otherwise applicable U.S. tax rules), long-term if
the securities have been held for more than a year. Generally, U.S. holders
may make the QEF election with respect to securities of the Company acquired
in 2007. Under certain conditions, U.S. holders may also make the QEF election
retroactively to apply to securities of the Company acquired in prior years.
    The Company is currently taking steps to provide its U.S. equity holders
with appropriate information on its website to assist such holders in working
productively with their independent tax advisors to address how the Company's
PFIC status affects their particular tax situation. The Company strongly
suggests that each U.S. equity holder review this situation immediately and
take this press release and the information available at www.uramin.com to its
independent tax advisor to determine what, if any, action is appropriate.
    General information is available about the Company by accessing UraMin's
web site at www.uramin.com and SEDAR at www.sedar.com.

    U.S. Internal Revenue Service Circular 230 Notice
    To ensure compliance with U.S. Internal Revenue Service Circular 230,
U.S. equity holders are hereby notified that: (a) any discussion of U.S.
federal tax issues contained or referred to in this press release or any
document referred to is not intended or written to be used, and cannot be
used, by U.S. equity holders for the purpose of avoiding penalties that may be
imposed on them under the United States Internal Revenue Code; (b) such
discussion is written for use in connection with the promotion or marketing
(within the meaning of U.S. Internal Revenue Service Circular 230) of the
transactions or matters addressed herein; and (c) U.S. equity holders should
seek advice based on their particular circumstances from an independent tax


    UraMin (www.uramin.com) was established in 2005 to acquire and develop
mineral properties, predominantly uranium. Following the private placement the
Company currently has a market capitalization of approximately US$1.9 billion
on an undiluted basis. UraMin (www.uramin.com) is traded on the Alternative
Investment Market of the London Stock Exchange plc and the Toronto Stock
Exchange under the symbol UMN.
    UraMin is currently focusing on the development of its advanced stage
exploration projects at Trekkopje in Namibia, Bakouma in the Central African
Republic and Ryst Kuil in South Africa. Through a South African joint venture,
UraMin also enjoys additional prospecting license applications for important
uranium deposits in the Karoo, South Africa. No assurance can be given that
remaining applications for prospecting licenses will be successful.

    Forward-Looking Statements:

    This press release contains statements that are "forward-looking".
Generally, the words "expect," "intend," "estimate," "will" and similar
expressions identify forward-looking statements. By their very nature,
forward-looking statements are subject to known and unknown risks and
uncertainties that may cause our actual results, performance or achievements,
or that of our industry, to differ materially from those expressed or implied
in any of our forward-looking statements. Statements in this press release
regarding the Company's business or proposed business, which are not
historical facts, are "forward looking" statements that involve risks and
uncertainties, such as estimates and statements that describe the Company's
future plans, objectives or goals, including words to the effect that the
Company or management expects a stated condition or result to occur. Since
forward-looking statements address future events and conditions, by their very
nature, they involve inherent risks and uncertainties. Actual results in each
case could differ materially from those currently anticipated in such
    Investors are cautioned not to place undue reliance on forward-looking
statements, which speak only as of the date they are made.

For further information:

For further information: Ian Stalker, Chief Executive Officer, Neil
Herbert, Finance Director, Tel: +27 11 783 5056; Nominated Advisor, Canaccord
Adams Limited, Robin Birchall, Tyler Broda, Tel: +44 20 7050 6500; Toronto,
Steve Vaughan, Tel: (416) 643-6924

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