Uranium One to Place Dominion Operations on Care and Maintenance

    Trading Symbols: UUU - Toronto Stock Exchange, JSE Limited (Johannesburg
    Stock Exchange)

    VANCOUVER, BC and JOHANNESBURG, South Africa, Oct. 22 /CNW/ - Uranium One
Inc. ("Uranium One") today announced that its board of directors has decided
to place the Dominion Uranium Project on care and maintenance.
    The decision to place Dominion on care and maintenance reflects the
significant deterioration in the Project's economics associated with the
continuing decline in uranium prices over the last year and significant
inflation-related increases in Project costs, together with a slower than
expected ramp-up in development and production.
    The decision follows the completion of the Company's detailed life of
mine planning process and budget for the Project, which has shown that the
Project would require a sustained recovery in uranium prices, as well as
significant additional capital investment, in order to become economically
viable. While the longer term fundamentals of the uranium market remain
attractive, Uranium One is not able, in light of current credit and general
market conditions, to incur the required additional capital investment at this
    In accordance with the requirements of applicable South African
legislation, Uranium One has initiated consultations with the National Union
of Mineworkers and Uranium One's joint venture partners with regard to today's
decision and will be providing notification thereafter to the South African
regulatory authorities. In the meantime, Uranium One will be exploring
strategic alternatives available to it at Dominion, including a sale or other
disposition of its interest in the Project and, absent any improvement in
Project economics, the potential closure of the Project.
    Uranium One expected to produce 1.1 million pounds U(3)O(8) from Dominion
in 2009; revised production guidance for the Uranium One group will be
provided with the Company's third quarter financial results in mid-November
2008. Uranium One is in the process of assessing the values at which the
Dominion assets are carried in its financial statements.
    Uranium One's consolidated cash balance as at September 30, 2008 of
US$99 million, together with the US$65 million subsequently drawn under
Uranium One's Canadian credit facility, will provide Uranium One with
sufficient cash resources to permit it to continue with planned operational
and capital expenditures in Kazakhstan and the United States, after providing
for estimated suspension costs at Dominion.
    Jean Nortier, Chief Executive Officer of Uranium One said:
    "While today's decision is unfortunately the only course of action open
to us in the current economic climate, we will be working with our joint
venture partners and other Project stakeholders, with a view to identifying
and evaluating all options potentially available for Dominion. At this time, I
would like to express my sincere thanks to the management team and the
workforce at Dominion - their dedication, hard work and support over the past
several years have been greatly appreciated."
    Uranium One will be hosting a conference call and webcast to discuss the
situation at Dominion at 10:00 a.m. (Eastern Time) on Wednesday, October 22,
2008. Participants may join the call by dialing toll free 1-800-590-1817 or
1-416-644-3417 for local calls or calls from outside Canada and the United
States. A live webcast of the call will be available through CNW Group's
website at: www.newswire.ca/webcast
    A recording of the conference call will be available for replay for a two
week period beginning at approximately 12:00 p.m. today by dialing toll free
1-877-289-8525 or 1-416-640-1917 for local calls or calls from outside Canada
and the United States. The passcode for the replay is 21286933. A replay of
the webcast will be available on our website at www.uranium1.com.

    Cautionary Statement

    No stock exchange, securities commission or other regulatory authority
    has approved or disapproved the information contained herein.

    Forward-looking statements: This press release contains certain
forward-looking statements. Forward-looking statements include but are not
limited to those with respect to the price of uranium, the estimation of
mineral resources and reserves, the realization of mineral reserve estimates,
the timing and amount of estimated future production, costs of production,
capital expenditures, costs and timing of the development of new deposits,
success of exploration activities, permitting time lines, currency
fluctuations, requirements for additional capital, government regulation of
mining operations, environmental risks, unanticipated reclamation expenses,
title disputes or claims and limitations on insurance coverage and the timing
and possible outcome of pending litigation. In certain cases, forward-looking
statements can be identified by the use of words such as "plans", "expects" or
"does not expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate", or "believes"
or variations of such words and phrases, or state that certain actions, events
or results "may", "could", "would", "might" or "will" be taken, occur or be
achieved. Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of Uranium One to be materially different from any
future results, performance or achievements expressed or implied by the
forward-looking statements. Such risks and uncertainties include, among
others, the actual results of current exploration activities, conclusions of
economic evaluations, changes in project parameters as plans continue to be
refined, possible variations in grade and ore densities or recovery rates,
failure of plant, equipment or processes to operate as anticipated, accidents,
labour disputes or other risks of the mining industry, delays in obtaining
government approvals or financing or in completion of development or
construction activities, risks relating to the integration of acquisitions, to
international operations, to prices of uranium and gold as well as those
factors referred to in the section entitled "Risk factors" in Uranium One's
Annual Information Form for the year ended December 31, 2007, which is
available on SEDAR at www.sedar.com, and which should be reviewed in
conjunction with this document. Although Uranium One has attempted to identify
important factors that could cause actual actions, events or results to differ
materially from those described in forward-looking statements, there may be
other factors that cause actions, events or results not to be as anticipated,
estimated or intended. There can be no assurance that forward-looking
statements will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward-looking
statements. Uranium One expressly disclaims any intention or obligation to
update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise, except in accordance with applicable
securities laws.

    %SEDAR: 00005203E

For further information:

For further information: Jean Nortier, Chief Executive Officer, Tel:
(604) 601-5642; Chris Sattler, Senior Vice President, Corporate Development
and Investor Relations, Tel: (416) 350-3657; For further information about
Uranium One, please visit uranium1.com

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