UEX Corp /AREVA Drilling Continues to Expand both Basement and Unconformity Mineralization at the Kianna Depo by 24hgold

Keywords : Canada | Uranium |

News Release - Thursday, September 29, 2011
UEX/AREVA Drilling Continues to Expand both Basement and Unconformity Mineralization at the Kianna Deposit SHE-130-11 Intersects 25.3 Metres Grading 0.78% eU3O8 and SHE-130-12 Intersects 32.0 Metres Grading 0.81% eU3O8

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UEX Corporation ("UEX") is pleased to announce results from eight directional drill holes from the continued exploration of the Kianna Deposit ("Kianna") on the Shea Creek Project ("Shea Creek") as reported to UEX by the project operator, AREVA Resources Canada Inc. ("AREVA"). Shea Creek hosts the Kianna, Anne, Colette and 58B deposits and is one of ten 49%-owned Western Athabasca Uranium Projects joint-ventured with AREVA.

Drill hole intersections in the SHE-130 series continue to outline a new zone of mineralization that links the main Kianna basement resource with a northern, parallel zone of structurally controlled mineralization (see Figure 1 and UEX news release dated May 3, 2011). In addition, drilling expanded unconformity mineralization northward. These drill intersections are outside of the existing National Instrument 43-101 ("N.I. 43-101") compliant mineral resource estimate.

Mineralization intersected in drill holes SHE-130-5A to SHE-130-12 at the unconformity ("UC") and in the underlying basement rocks ("B") includes the following notable intercepts:

SHE-130-5A:	(B)	0.96%	eU₃O₈ over 2.1 metres;
SHE-130-6:	(UC)	1.61%	eU₃O₈ over 2.9 metres;
SHE-130-7:	(B)	1.35%	eU₃O₈ over 2.1 metres, and
	(B)	4.40%	eU₃O₈ over 2.5 metres;
SHE-130-8:	(UC)	0.77%	eU₃O₈ over 2.8 metres, and
	(B)	0.70%	eU₃O₈ over 3.9 metres;
SHE-130-9:	(UC)	0.48%	eU₃O₈ over 2.5 metres, and
	(B)	1.34%	eU₃O₈ over 1.0 metres;
SHE-130-11:	(B)	0.86%	eU₃O₈ over 2.6 metres, and
	(B)	0.78%	eU₃O₈ over 25.3 metres, including
	(B)	1.32%	eU₃O₈ over 12.0 metres;
SHE-130-12:	(B)	0.81%	eU₃O₈ over 32.0 metres, including
	(B)	2.21%	eU₃O₈ over 4.0 metres, and
	(B)	1.64%	eU₃O₈ over 5.3 metres.

Complete results from the drilling are reported in Table 1. Uranium grades reported here have been calculated from gamma probe logging. True widths of mineralized intervals have not yet been determined.

"The expansion of the Kianna Deposit northward, both at the unconformity and in basement-hosted rocks, was one of our goals for the 2011 drilling program. The combined efforts of the AREVA and UEX exploration teams have resulted in a successful program to date, and drilling is ongoing in this area," said Graham Thody, President and CEO of UEX.

The new zone of mineralization which lies to the north of the main Kianna basement resource was initially intersected in 2010. During that program, drill hole SHE-136-1 intersected 1.84% U₃O₈ over 16.6 metres approximately 50 metres to the north of the main Kianna basement zone. Subsequent drilling intercepts in the area include 2011 drill hole SHE-130-4, which intersected 1.28% eU₃O₈ over 25.1 metres, and in the current drilling program, those reported in drill holes SHE-130-11 and SHE-130-12.

Geologically, these intercepts occur in a shallow south to southeast-dipping zone of mineralization which exploits a mafic unit within the hosting gneiss sequence. The mafic unit associated with the new zone may also control a high-grade oreshoot in the lower part of the Kianna Deposit. The new zone is open to the northeast, southwest and updip to the north, where it may join a steeply dipping mineralized fault that is parallel to and 75 metres north of the Kianna basement zone. This parallel zone was previously intersected by drill hole SHE-114-17, which intersected 7.8 metres grading 4.38% U₃O₈. Further drilling in 2011 will test extensions of this open network of mineralized zones, and will also test downdip extensions of the main Kianna basement zone, particularly for a higher grade oreshoot at its down plunge intersection with the new zone.

The SHE-130 series drill holes in the Kianna area are part of a larger exploration program on the Shea Creek Project. Currently, there are three drills operating on the project, one each at the Colette and Kianna deposits and one drilling the area between the Kianna and the 58B deposits. Drilling will continue through to November 2011.

Qualified Persons and Data Acquisition
Technical information in this news release has been reviewed and approved by R. Sierd Eriks, P.Geo., UEX's Vice-President of Exploration, David Rhys, P.Geo., UEX Advisory Board member and Erwin Koning, P.Geo., AREVA's District Geologist, West Athabasca Region, who are Qualified Persons as defined by National Instrument 43-101.

Equivalent grade results were obtained using a DHT27-STD gamma probe which collects continuous readings along the length of the drill hole. Probe results are calibrated using an algorithm calculated from the comparison of probe results against geochemical analyses in previous drill holes in the Shea Creek area.

About Shea Creek
UEX reported a combined N.I. 43-101 compliant mineral resource estimate for the Kianna, Anne and Colette deposits of 1,872,600 tonnes grading 1.54% U₃O₈ containing 63.57 million pounds of U₃O₈ in the Indicated category and an additional 1,068,900 tonnes grading 1.04% U₃O₈ in the Inferred category containing 24.53 million pounds of U₃O₈ at a cut-off of 0.3% U₃O₈ (see UEX news release dated May 26, 2010). This mineral resource estimate is based on drilling information up to December 31, 2009. Results from the 2010 drilling, which include the expansion of Kianna and the discovery of the 58B Deposit, are not incorporated in this resource estimate.

This estimate confirms Shea Creek as the largest undeveloped uranium resource in the Athabasca Basin. It also ranks as the third largest uranium resource in the Basin, exceeded in size only by McArthur River and Cigar Lake. Resources at Shea Creek are largely open and have excellent potential for both expansion of known areas of mineralization and discovery of new zones.

About UEX
UEX is a Canadian uranium exploration and development company actively involved in 18 uranium projects, including six that are 100% owned and operated by UEX, one joint venture with AREVA that is operated by UEX, as well as ten joint-ventured with AREVA and one under option from JCU (Canada) Exploration Company, Limited, which are operated by AREVA. The 18 projects, totaling 338,972 hectares (837,618 acres), are located in the eastern, western and northern perimeters of the Athabasca Basin, the world's richest uranium belt, which accounts for approximately 18% of the global primary uranium production. UEX is currently developing several uranium deposits in the Athabasca Basin which include the Kianna, Anne, Colette and 58B deposits at its 49%-owned Shea Creek Project, a joint venture with AREVA in the western Athabasca Basin, and the Horseshoe, Raven and West Bear deposits located at its 100%-owned Hidden Bay Project in the eastern Athabasca Basin. With a cash position of approximately $13.5 million at June 30, 2011, UEX is well-financed to carry out its remaining 2011 exploration and development programs.

About AREVA Resources Canada Inc.
AREVA, a uranium exploration, mining and milling company, is a subsidiary of AREVA group, the global nuclear industry leader with an expanding presence in the renewable energies field and 50,000 employees worldwide to help supply safer, cleaner and more economical energy to the greatest number of people. AREVA group, through its Canadian subsidiary, has significant interests in several uranium deposits in the Athabasca Basin, including the McClean Lake, Midwest and Shea Creek deposits operated by AREVA, as well as the McArthur River, Cigar Lake and Millennium deposits operated by Cameco Corporation. AREVA also holds a majority interest in the Kiggavik deposits in Nunavut.

FOR FURTHER INFORMATION PLEASE CONTACT

Graham C. Thody
President & CEO,
(604) 669-2349

Forward-Looking Information
This news release may contain statements that constitute "forward-looking information" for the purposes of Canadian securities laws. Such statements are based on UEX's current expectations, estimates, forecasts and projections. Such forward-looking information includes statements regarding UEX's resource estimates, outlook for our future operations, plans and timing for exploration activities, and other expectations, intention and plans that are not historical fact. The words "estimates", "projects", "expects", "intends", "believes", "plans", or their negatives or other comparable words and phrases are intended to identify forward-looking information. Such forward-looking information is based on certain factors and assumptions and are subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by such forward-looking information. Important factors that could cause actual results to differ materially from UEX's expectations include uncertainties relating to interpretation of drill results and geology, additional drilling results, continuity and grade of deposits, public acceptance of uranium as an energy source, fluctuations in uranium prices and currency exchange rates, changes in environmental and other laws affecting uranium exploration and mining, and other risks and uncertainties disclosed in UEX's Annual Information Form and other filings with the applicable Canadian securities commissions on SEDAR. Many of these factors are beyond the control of UEX. Consequently, all forward-looking information contained in this news release is qualified by this cautionary statement and there can be no assurance that actual results or developments anticipated by UEX will be realized. For the reasons set forth above, investors should not place undue reliance on such forward-looking information. Except as required by applicable law, UEX disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise.

TABLE 1
2011 Shea Creek (Kianna) Drill Results
Results are reported with a grade of greater than 0.1% U₃O₈ and
a grade-thickness product of greater than 0.2

Hole	Total Depth of Hole (metres)	Depth to Unconformity (metres)	From (metres)	To (metres)	Length (metres)	Avg. Grade Within the Intersection (% eU₃O₈)	Type�
SHE-130-4*	978.0	722.5	709.5	712.7	3.2	0.96	UC
			718.2	722.1	3.9	0.19	UC
			842.9	844.7	1.8	0.46	B
			851.1	852.0	0.9	0.23	B
			888.1	888.8	0.7	0.30	B
			894.0	919.1	25.1	1.28	B
		including	903.7	913.2	9.5	2.30	B
			935.9	938.8	2.9	0.36	B
SHE-130-5	804.0	718.7	Hole not probed
SHE-130-5A	1023.0	718.5	879.7	881.8	2.1	0.96	B
			913.0	914.3	1.3	0.31	B
SHE-130-6	1044.0	720.3	717.3	720.2	2.9	1.61	UC
			852.1	853.1	1.0	0.47	B
			887.8	889.0	1.2	0.30	B
SHE-130-7	1027.0	724.8	722.5	724.7	2.2	0.29	UC
			728.1	729.1	1.0	0.35	B
			759.8	760.4	0.6	0.33	B
			856.9	859.0	2.1	1.35	B
			863.3	863.9	0.6	0.29	B
			875.7	876.8	1.1	2.14	B
			881.9	884.4	2.5	4.40	B
			896.1	900.0	3.9	0.39	B
SHE-130-8	894.0	726.9	721.3	723.3	2.0	0.30	UC
			725.0	727.8	2.8	0.77	UC
			852.5	856.4	3.9	0.70	B
			859.1	859.7	0.6	0.48	B
SHE-130-9	939.0	731.0	729.0	731.5	2.5	0.48	UC
			891.6	892.3	0.7	0.51	B
			899.6	900.2	0.6	0.43	B
			903.6	904.6	1.0	1.34	B
			920.1	921.3	1.2	0.33	B
			923.0	924.4	1.4	0.17	B
SHE-130-10	1077.0	720.6	718.6	719.8	1.2	0.25	UC
SHE-130-11	954.0	718.6	705.4	706.2	0.8	0.69	UC
			892.0	894.6	2.6	0.86	B
			902.1	927.4	25.3	0.78	B
		including	902.1	908.4	6.3	0.50	B
		including	909.5	912.0	2.5	0.23	B
		including	915.4	927.4	12.0	1.32	B
SHE-130-12	925.5	717.3	710.7	711.9	1.2	0.39	UC
			714.6	716.5	1.9	0.18	UC
			882.5	914.5	32.0	0.81	B
		including	882.5	883.9	1.4	1.51	B
		including	885.1	889.1	4.0	2.21	B
		including	896.9	902.2	5.3	1.64	B

* Previously reported hole - (see UEX news release dated May 3, 2011)
� UC - Unconformity mineralization
B - Basement mineralization

Note: Uranium grades are calculated from gamma probe logging. True widths of mineralized intervals have not yet been determined.

FIGURE 1
2011 Shea Creek (Kianna) Series SHE-130 Drill Results

Interpretation of Kianna basement mineralization showing 2011 drill holes of the SHE-130 series and the position of the new zone of mineralization in green joining the known Kianna basement zones.

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