Uranium Energy Corp to Commence Drilling at Nichols Project in South Texas

    Nichols Represents the First Satellite Development Opportunity for the
    Company's Goliad ISR Project

    American Stock Exchange Symbol - UEC
    Frankfurt Stock Exchange Symbol - U6Z

    AUSTIN, Texas, Aug. 13 /CNW/ - Uranium Energy Corp (AMEX:   UEC; the
"Company") is pleased to announce the finalization of drilling plans for the
Company's 100%-owned Nichols Project in Karnes County, Texas. The plan calls
for 30 exploration holes for a total of approximately 18,000 feet of drilling.
Permitting has been submitted and approved by the Texas Railroad Commission,
Division of Surface Mining. Development of the Nichols Project aligns with the
Company's plan to establish satellite facilities for its advanced Goliad ISR
Uranium Project. Drilling at Nichols is scheduled to commence next week.
    The Nichols Project consists of 900 acres, and is located within the
heart of the historic Karnes County uranium mining district. Karnes County is
immediately adjacent to Goliad County, the site of the Company's Goliad ISR
Project. The Nichols Project was originally explored by Texaco Uranium (now
ChevronTexaco), and reportedly contains an historic resource of 1.2 million
pounds of e-U(3)O(8). Uranium Energy's initial assessment of the historic
data, the property and regional geology at Nichols indicates an excellent
opportunity to expand on the resource work performed by Texaco. Following
completion of the drilling program, the Company plans to have an independent
Technical Report prepared under NI 43-101 guidelines.
    The foregoing historical resource estimate for the Nichols Project was
completed prior to the implementation of NI 43-101 standards. Given the
quality of the historic work, the Company believes the resource estimate to be
relevant, however a qualified person has not completed sufficient work to
classify the historic mineral resources as current mineral resources, and the
estimate should not be relied upon.
    Data reviewed to date, including Texaco data, and geophysical logs from
oil wells in the immediate area of the deposit, indicate that the historic
mineralization lies within the Tertiary-age Jackson Formation, and occurs at
an average depth of 440 feet. Historic reports in the Company's possession
indicate that Texaco Uranium had planned to recover the uranium at the Nichols
site using In-Situ Recovery (ISR) mining methods.
    Harry Anthony, Chief Operating Officer, stated, "Strategically, the
Goliad ISR Project is central to a great number of uranium resource sites in
South Texas. Nichols is the Company's first project that may become a
satellite development site with the capacity to feed material for processing
at the central plant. This is one reason this drilling program is exciting for
the Company. Several additional nearby sites are under review for near-term
    The technical information in this news release has been prepared in
accordance with the Canadian regulatory requirements set out in National
Instrument 43-101 and reviewed by Clyde L. Yancey, P.G., Vice
President-Exploration for Uranium Energy Corp, a qualified person under NI

    About Uranium Energy Corp

    Uranium Energy Corp (AMEX:   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 expertise.

    Stock Exchange Information:
    American Stock Exchange Symbol: UEC
    Frankfurt Stock Exchange Symbol: U6Z
    ISN: US916896103

    Safe Harbor Statement

    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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