Uruguay Mineral Exploration Inc.: Production for the Quarter Ended February 28, 2007 Approval of Stream Diversion Lascano Update

    LONDON, March 5 /CNW/ - Uruguay Mineral Exploration Inc. (the "Company")
(TSX:UME) (LSE:UGY) confirms that, in line with disclosed forecasts, it has
produced 27,921 ounces of gold for the quarter ended February 28, 2007 making
a total of 67,155 ounces for the nine months ended 28th February 2007. Ore
processed for the quarter was 331,058 tonnes at a grade of 2.79 g/t at a 94 %

    The Company is also pleased to announce that it has received final
environmental approvals to commence the diversion of the Corrales stream as
well as mining approvals for the expansion of the Arenal open pit. Easements
covering the land on which the diversion will occur are expected to be granted
this week, allowing construction to commence.

    The second diamond drill hole at Lascano has been stopped at a depth of
700 meters due to poor ground conditions. From observation of the core for the
second drill hole it is evident that over 600 meters of alternating mafic lava
flows and mafic intrusive material were intersected, with the former
predominating. The rocks encountered exhibit various degrees of iron oxide
metasomatic alteration locally and some weak pyretic mineralization around
faults. These observations are encouraging in as much as such iron metasomatic
alteration can accompany copper/gold metalization. Petragraphic analysis and
assays are pending. Drilling of the third hole will start in early March 2007.
The results on the first two drill holes justify a further three diamond drill
holes (making a total of six holes) that have now been planned to explain more
fully the structural setting causing the anomaly. Drilling of the three
additional holes is expected to start in April 2007 and to be completed in
June 2007.

    Tony Shearer, Chairman, said "We are on track to produce 95,000 ounces of
gold for the year to 31st May 2007. The approval of the Corrales stream
diversion demonstrates the continued commitment of the Uruguayan authorities
to developing the mining industry. We are very pleased with the core that we
have seen from the first two drill holes at Lascano, as is evident from our
decision to extend the drilling program. Each new drill hole is providing
important information to allow us to advance our interpretation of the
geological setting. A full review of these and our other exploration
activities will be included with the 3rd quarter results which will be
released in mid April."

    Qualified Persons Statement

    The information presented in this press release has been reviewed and
verified by Mr George Schroer Vice President Exploration and a Certified
Professional Geologist. Mr Schroer is the Qualified Person for the purposes of
the AIM Guidance Note on Mining, Oil and Gas Companies dated March 2006. Mr
Schroer has a Bachelor of Science in Geology from Colorado State University
and is a member of SEG and AIPG. He has over 20 years of international
experience in exploration.

    The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this news release.

    Editors note: Uruguay Mineral Exploration Inc. is a gold producer and
exploration company focussed on identifying and developing mineral
opportunities in Uruguay. UME is a fully integrated mining company, possessing
the skills necessary to explore and develop its discoveries. The Company
operates the only producing gold mine in Uruguay (San Gregorio), and is also
the leading mineral exploration company in Uruguay having assembled an
exploration portfolio based on gold, base metals (copper, nickel, lead, zinc)
and diamond prospects.

    Uruguay Mineral Exploration Inc. is quoted in Canada (TSXV) and London
(AIM) and Collins Stewart Europe Limited is its Nominated Adviser and Broker.

For further information:

For further information: Uruguay Mineral Exploration Inc Tony Shearer,
Chairman +44 20 7602-1570 tonyshearer@btinternet.com or David Fowler, CEO +598
2 6016354 urumin@adinet.com.uy or Shared Value Ltd Emily Bruning +44 20 7321
5027 ebruning@sharedvalue.net or Collins Stewart Europe Limited Chris Rollason
+44 20 7523 8308 crollason@collins-stewart.com

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