Uranium Energy Corp Announces Inferred Resource of 1.3 Million Pounds eU3O8 at Nichols Project in South Texas

    Nichols Resource Makes Prospective Satellite for Company's Nearby Goliad
    ISR Project

    NYSE Alternext - UEC
    Frankfurt Stock Exchange Symbol - U6Z

    AUSTIN, TX, Jan. 21 /CNW/ - Uranium Energy Corp (NYSE-Alt:UEC; the
"Company") is pleased to announce that the Company has received an independent
National Instrument 43-101 technical report for the Nichols Project, Karnes
County, Texas, that estimates an inferred mineral resource of approximately
900,000 tons of eU3O8, at an average grade of 0.07% or 1,307,000 pounds. This
inferred mineral resource estimate was completed using accepted methods
mandated by CSA National Instrument 43-101 ("NI 43-101") and the Canadian
Institute of Mining ("CIM") classifications.
    The Nichols property consists of 1,040.7 acres of contiguous leases
located about six miles south of the town of Falls City, Texas. The Nichols
lease is approximately 50 miles from the Company's Goliad ISR Uranium Project,
for which the Company has obtained a Draft Mine Permit and submitted
additional permitting applications. Management anticipates that any mineral
resources identified and extracted at Nichols would be processed at the
planned Goliad plant.
    Texaco conducted an exploration program on the Nichols property in 1979
and 1980. The Company has engineering drawings that indicate that Texaco was
planning to develop an ISR operation on the property. The leases were later
taken over by Chevron Resources.
    The complete Nichols Project NI 43-101 Technical Report will be filed and
available shortly on the SEDAR website, at www.sedar.com, and on the Company's
website at www.uraniumenergy.com. The Technical Report is authored by Thomas
A. Carothers, P.Geo., a qualified person as defined in NI 43-101, who has over
30 years of uranium experience, substantially in the South Texas Uranium
trend. His experience includes working directly for two operating ISR mining
companies in South Texas, US Steel and Tenneco Uranium, during the 1970s and
    The Nichols Technical Report reflects the inferred mineral resource
estimate based on the results from 34 drill holes and one core hole recently
completed by the Company in 2008 as follows:

    Inferred Mineral Resource Estimate Summary

    Cutoff GT (%  Tons     Average        Pounds      Average     Range
    grade times            Grade          eU(3)O(8)   Thickness   of
    the                    %eU(3)O(8)(*)              (ft)        Depths
    thickness)                                                     (ft)
    0.3           900,000  0.07           1,307,000   6           300 to 450

    (*)Values Rounded to Nearest Hundredth

    A cut-off grade of 0.02% eU(3)O(8) and a grade-thickness (GT) product
equal to or greater than 0.3 were used to define the mineral resources (GT is
defined as the value calculated for a specific downhole interval by
multiplying the average mineral grade in %eU(3)O(8) times the interval
thickness in feet). These cutoffs are in the range of most ISR mining
operations in the south Texas trend and in other states where mining from
similar depths with similar mineralization occurs. Mr. Carothers is of the
opinion that the methodology and inferred mineral resources determined by the
Company were completed using accepted industry standards and the
classification of resources meets the CIM definition standards as required by
NI 43-101.
    The results of borehole gamma-ray and resistance logs, prompt fission
neutron (PFN) logs, and lithologic logs indicate that elevated uranium
mineralization occurs in four distinct sand units in the Whitsett Formation of
the Jackson Group at this locality. All of the mineralized units are below the
water table at depths from approximately 300 to 450 feet. Evaluation of
existing average grade of uranium mineralization data and the depth of
mineralized zones indicate that in-situ recovery (ISR) is potentially the most
suitable mining method for this project.
    Mr. Carothers made the following recommendation in the Technical Report
to further define the Nichols Project resource base: "The first step should be
to proceed with another phase of exploration drilling, including selective
coring. This is recommended for this project to upgrade the mineral resource
classification to indicated and measured resources. Additionally this will
provide further definition of the site mineralization mode, data verification,
and better define the site geology and groundwater flow regime."
    The technical information in this news release has been prepared in
accordance with the Canadian regulatory requirements set out in NI 43-101 and
reviewed by Clyde L. Yancey, P.G., Vice President-Exploration for the Company,
a QP under NI 43-101.

    About Uranium Energy Corp

    Uranium Energy Corp (NYSE - Alt: UEC) is a US-based resource company with
the objective of becoming a near-term ISR uranium producer in the United
States. Utilizing its extensive information library of historic uranium
exploration and development work, the Company has acquired and is advancing
uranium properties throughout the southwestern US. A Draft Mine Permit was
recently issued for the Company's lead project, the Goliad ISR Uranium Project
in south Texas. Operational management is comprised of pre-eminent uranium
mining and exploration professionals whose collective experience in this
industry gives the Company ongoing uranium mine-finding and mine development

    Stock Exchange Information:

    New York Stock Exchange - Alternext Symbol: UEC
    Frankfurt Stock Exchange Symbol: U6Z
    ISN: US916896103

    Forward-Looking Statement Disclaimer

    This news release contains forward-looking statements within the meaning
of Section 27A of the United States Securities Act of 1933, as amended, and
Section 21E of the United States Securities and Exchange Act of 1934, as
amended. Statements in this news release, which are not purely historical, are
forward-looking statements and include any statements regarding beliefs,
plans, expectations or intentions regarding the future. These statements
involve risks and uncertainties which could cause actual results to differ
materially from those in the forward-looking statements contained herein. Such
risks and uncertainties may include, but are not limited to, the impact of
competitive products, the ability to meet customer demand, the ability to
manage growth, acquisitions of technology, equipment or human resources, the
effect of economic and business conditions, the ability to attract and retain
skilled personnel and factors outside the control of the Company. These
forward-looking statements are made as of the date of this news release, and
the Company assumes no obligation to update the forward-looking statements or
to update the reasons why actual results could differ from those projected in
the forward-looking statements. Although the Company believes that the
beliefs, plans, expectations and intentions contained in this news release are
reasonable, there can be no assurance those beliefs, plans, expectations or
intentions will prove to be accurate. Investors should consider all of the
information set forth herein and should also refer to the risk factors
disclosed in the Company's periodic reports filed from time-to-time with the
United States Securities and Exchange Commission. This news release shall not
constitute an offer to sell or the solicitation of an offer to buy nor shall
there be any sale of these securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or qualification
under the securities laws of any such jurisdiction.

For further information:

For further information: North America: Investor Relations, Uranium
Energy Corp., Toll Free: (866) 748-1030, Fax: (512) 535-0832, E-mail:

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