Uranium Energy Corp Receives Production Area-1 Draft Authorization at Goliad

    Company Provides Additional Updates on the Permitting Process for the
    Goliad In-Situ Recovery ("ISR") Uranium Project in South Texas

    Frankfurt Stock Exchange Symbol - U6Z

    AUSTIN, May 20 /CNW/ - Uranium Energy Corp (NYSE AMEX:   UEC, "the
Company") is pleased to announce that it has received a Draft Production Area
Authorization for Production Area 1 at the Company's Goliad ISR Uranium
Project from the Texas Commission on Environmental Quality ("TCEQ"). The
authorization was received on May 4, and the Company has 30 days to review the
authorization for accuracy and to offer suggested changes to TCEQ. At the end
of the 30-day review period in June, the Company expects to receive
instructions from TCEQ to announce the receipt of the Final Draft Production
Area Authorization publicly.

    Status of Permitting Progress at the Goliad Project

    As noted in an earlier press release on December 2, 2008, the Company
completed its filing of all required permit applications for In-Situ Recovery
of uranium at the Company's flagship Goliad Project in South Texas. In Texas,
uranium producers and near-term producers deal with one agency, the Texas
Commission on Environmental Quality ("TCEQ"), for all required and related
permits and licenses. Since December, 2008, significant progress has been made
in processing the applications, and a brief update of the permit status

    (a) Mine Permit -- The final draft mine permit was issued by TCEQ in June
        2008, and after providing public notice and responding to public
        comments, the Executive Director of TCEQ recommended issuance of the
        mine permit in November 2008.

        The next step will be a public hearing, as normally occurs in the
        mine permitting process, so that opposing views can be aired and
        reviewed. The public hearing is conducted by the State Office of
        Administrative Hearings ("SOAH"). At the conclusion of the
        administrative hearing, SOAH will make its recommendation to TCEQ's
        commissioners, and the commissioners will render a final decision.
        The first step of the administrative hearing process began on May 14
        when a preliminary hearing was held by SOAH. Uranium Energy Corp is
        pleased with the outcome of the hearing and is looking forward to
        completing this final stage in the process.

    (b) Production Area Authorization (PA-1) - As noted above, the Company
        received a draft authorization on May 4 and expects to publish notice
        of the final draft in June.

    (c) Permit by Rule - The proposed Goliad operation was evaluated by TCEQ
        for an air quality permit and it was determined that since the
        operation will not produce significant air contaminants, TCEQ issued
        the Company a Permit by Rule in January this year.

    (d) Radioactive Material License - TCEQ is conducting its technical
        review of the Radioactive Material License Application. The
        Company stands ready to promptly respond to TCEQ's request for
        additional information that may be needed to complete the technical
        review of the application.

    (e) Waste Disposal Well Permit - TCEQ has completed a significant part of
        the technical review of the application. During the review, TCEQ
        requested some additional information, and UEC expects to provide
        this information to the agency next week. Upon receiving the
        information, TCEQ will be able to complete the final stages of the
        technical review during the next few months.

    (f) The U.S. Army Corps of Engineers issued the Company a Jurisdictional
        Determination in August 2008. Because the project will not impact
        waters of the U.S., a 404 permit is not required.

    (g) A Cultural Resource Survey and Assessment was completed by an
        independent expert. The Survey concluded that the Goliad Project will
        not have any impact on cultural resources in the permit area, and
        that no further work is required on this matter by the Company. As
        required by the rules, the Texas Historical Commission reviewed the
        assessment and concurred, in July 2008, that the project will not
        have a significant impact on cultural resources.

    (h) Texas Parks and Wildlife has completed its review of the proposed
        mine plan and concluded in May 2008 that there will be no significant
        impact to wildlife.

    About Uranium Energy Corp

    Uranium Energy Corp (NYSE-AMEX:   UEC, "the Company") 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 expertise.

    Stock Exchange Information:

    Frankfurt Stock Exchange Symbol: U6Z
    ISN: US916896103

    Forward-Looking Statement Disclaimer

    Except for the statements of historical fact contained herein, the
information presented in this news release constitutes "forward-looking
statements" as such term is used in applicable United States and Canadian
laws. These statements relate to analyses and other information that are based
on forecasts of future results, estimates of amounts not yet determinable and
assumptions of management. In particular, statements concerning historical
mineral resource estimates should be viewed as forward-looking statements to
the extent that they involve estimates of the mineralization that will be
encountered if the property is developed. Any statements that express or
involve discussions with respect to predictions, expectations, beliefs, plans,
projections, objectives, assumptions or future events or performance are not
statements of historical fact and should be viewed as "forward-looking
statements". Such forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of the Company to be materially different from any
future results, performance or achievements expressed or implied by such
forward-looking statements. Such risks and other factors include, among
others, the actual results of exploration activities, variations in the
underlying assumptions associated with the estimation or realization of
mineral resources, the availability of capital to fund programs and the
resulting dilution caused by the raising of capital through the sale of
shares, accidents, labour disputes and other risks of the mining industry
including, without limitation, those associated with the environment, delays
in obtaining governmental approvals, permits or financing or in the completion
of development or construction activities, title disputes or claims
limitations on insurance coverage. Forward looking statements are made based
on management's beliefs, estimates and opinions on the date the statements are
made and the Company undertakes no obligation to update forward-looking
statements if these beliefs, estimates and opinions or other circumstances
should change, except as required by applicable law. Such forward-looking
statements reflect our current views with respect to future events and are
subject to certain risks, uncertainties and assumptions, including, the risks
and uncertainties outlined in our most recent financial statements and reports
and registration statements filed with the United States Securities and
Exchange Commission (the "SEC") (available at www.sec.gov) and with Canadian
securities administrators (available at www.sedar.com). 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 SEC. 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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