U3O8 Corp. cuts 25 metres grading 0.099% U₃O₈ (2.0 lbs per short ton) at Accori North C

Accori North results confirm multiple uranium-bearing structures in Kurupung Batholith 

Toronto, Ontario - August 21, 2008 - U3O8 Corp. (TSX Venture: UWE), a Canadian uranium exploration company, reports additional significant uranium results from its Phase I drilling of the Accori North targets in the Kurupung Batholith in the basement near the Roraima Basin in Guyana (Figure 1). 

Highlights on the exploration progress of the Accori North targets include:

?         Phase I drilling of the Accori North targets continue to confirm continuity of uranium grade;

?         The latest hole at the Accori North C target intersected 25 metres grading 0.099% (2.0 lbs per short ton) U₃O₈, which confirms the presence of a high grade-thickness centre within the structure;

?         Drilling has traced the uranium-bearing structure at the Accori North C target over a strike distance of 250 metres and to a depth of some 125 metres below surface;

?         An additional 2,000 metre, nine-hole program at Accori North C will further test the continuity of mineralization within this structure; and

?         The Accori North area constitutes the third sector of the Kurupung Batholith in which drilling has demonstrated consistent uranium mineralization;

The mineralized sector in the Accori North area underscores U3O8 Corp's exploration concept that multiple uranium-bearing structures in the basement may aggregate to a resource of significant and potentially economic size.  Subsequent drilling will test the extension of the higher-grade uranium intersections, particularly in the Accori North C zone.  The goal is to advance the Accori North area through infill drilling in late 2008 to resource estimation early next year, building on resource estimates for Aricheng South and Aricheng North that are scheduled for completion in late 2008. 

Assay highlights from the 11 bore holes in the Accori North targets reported here include:

* Note: 1 short ton = 2,000lbs or 0.907 metric tons

# Estimated true width is unknown until the orientation of the structure has been established.

A Phase I drilling program of 2,308 metres in 15 holes has been completed on three structures in the Accori North area:  Accori North A, Accori North B and Accori North C.  The assay results reported here are as follows:

?         Accori North A: results of 7 holes, totalling 910 metres;

?         Accori North B: results of 3 holes, totalling 463 metres; and

?         Accori North C: results from the fifth hole of 5 holes totalling 935 metres (assays from the previous four holes were released on June 17, 2008).

All reported assay results are available at www.sedar.com and www.u3o8corp.com.

Uranium mineralization in the Accori North area is contained within breccias in granodiorites of the Kurupung Batholith and is enclosed within an albite-chlorite-hematite alteration assemblage. 

Accori North A

Two bore holes drilled in the Accori North A target (Figure 2) intersected thick zones of mineralization (Figure 3 and Table 1).  Five additional holes returned no significant values, which may indicate that uranium at Accori North A is contained in a pipe-like breccia body several tens of metres in diameter, or that the mineralized zone has been displaced by faulting.  A VLF-EM (Very Low Frequency Electromagnetic) survey is expected to clarify the structure at Accori North A.  The need for further drilling will be assessed once the VLF-EM data has been interpreted. 

Accori North B and Accori North C

Magnetic data show that the mineralized targets of Accori North B and Accori North C lie 1.2 kilometres apart on the same, east-west orientated structure, which further extends some seven kilometres to the east into the mineralized zone of Aricheng South (Figure 4). 

Uranium mineralization in the Accori North C sector of this structure has now been intersected over a distance of 250 metres, to a depth of approximately 125 metres below surface and is open along strike and down-dip.  Mineralization occurs within a sheet-like breccia that strikes east and dips to the south at approximately 85?.  The mineralized breccia varies from 5 metres to 33 metres in width.  

The fifth and latest hole drilled at Accori North C has confirmed a high grade-thickness centre within the structure (Table 1).  The fifth hole was drilled beneath the previous four holes in order to test the continuity of grade with depth and to determine the inclination of the mineralized breccia zone.  The grade-thickness diagram illustrates increasing metal content (product of width of the mineralized zone and its grade) with depth in Accori North C (Figure 5).  Further drilling (2,000 metres in nine holes) to test the continuity of mineralization in Accori North C is planned to commence in September 2008.

The three bore holes drilled in the Accori North B target all intersected a tabular breccia that corresponds with a magnetic anomaly that links the Accori North B and Accori North C targets.  Uranium mineralization was intersected in one hole in the Accori North B sector, albeit at lower grades and over narrower widths than at Accori North C (Figure 5).  The drilling of the Accori North B target may have been into a low-grade interval between mineralized shoots.  A VLF-EM survey is planned in order to better define the structure of the Accori North B-C sectors of the breccia. It is anticipated that further drilling will be done on the basis of the detail provided by the VLF-EM survey and a three-hole, 900 metre drill program has provisionally been budgeted for the Accori North B sector.  

Potential quantity and grade reported here from the Accori North targets are conceptual in nature. There has been insufficient exploration to define a mineral resource on the company's properties and it is uncertain if further exploration will result in the target area being delineated as a mineral resource.

Quality Assurance & Quality Control

Diamond drilling at Accori North produced NQ (47.6 millimetre diameter) core.  The core was halved with a Diamond saw on site and half core samples were delivered to ACME Laboratory's preparation facility in Georgetown, Guyana.  Sample blanks and certified standards were inserted at an average frequency of 1 per 25 samples.  Sample pulps were then shipped by ACME to their analytical facility in Vancouver, BC, Canada, for analysis for uranium by ICP-MS after hot, four-acid digestion. 

Richard Cleath (M.Sc.), U3O8 Corp's Vice President, a Qualified Person within the definition of that term in National Instrument 43-101 of the Canadian Securities Administrators, had overall responsibility for all aspects of target selection and drilling of the Accori North targets.  Mr. Cleath has supervised the preparation of, and verified the technical information in this release. 

Table 1 - Assay Results for Accori North Targets

Summary of significantly mineralized intercepts cut in the Phase I, 15-hole, 2,308 metre program at the Accori North A, Accori North B and Accori North C structures. 

Note: lb/st is an abbreviation for pounds per short ton.  1 short ton = 2,000lbs or 0.907 metric tons. 

* Previously released results from June 17, 2008.

# Estimated true width is unknown until the orientation of the structure has been established.

Figure 1 - Location of Accori North Targets in the Kurupung Bathlolith

Uranium radiometric data from the airborne geophysics survey carried out by U3O8 Corp. over the Kurupung Batholith shows the location of the principal uranium targets.  The Accori North A, Accori North B and Accori North C structures are highlighted in yellow and located near the south-western margin of the batholith.

Figure 2 - Drill Hole Locations of the Three Sectors in the Accori North Area

Map shows the location of the bore holes drilled by U3O8 Corp. in the Accori North A, Accori North B and Accori North C targets.  Bore holes, whose results are included in this press release, are shown in red.

Figure 3 - Cross Section of Accori North A Target      

Cross section through bore holes ACCON-A-001 and 003 in the Accori North A target show the shape and extent of the mineralized zone that was intersected.  The coloured tabs on the bore hole traces are a histogram of U₃O₈ grade arranged with warm colours representing higher values to lower values in cool colours.

Figure 4 - Map of Magnetic Data and Interpreted Structures in Kurupung Batholith

a.       Map of magnetic data from the Kurupung Batholith show interpreted structures (black lines).  The margins of the Kurupung Batholith are marked by southeast orientated magnetic anomalies that coincide with shear zones.  The open "S"-shaped curves that extend between the bounding shear zones of the Kurupung Batholith are termed sigmoidal structures.

b.      Simplified structural interpretation of the Kurupung Batholith show the simoidal structures extending between the bounding shear zones with known mineralized structures shown.  The mineralized shoot in the Aricheng South structure is located where a splay-fault intersects the principal sigmoidal structure.  The mineralized zones at Accori North A, Accori North B and Accori North C are labelled in red.

Figure 5 - Long Section of Accori North B and Accori North C Targets

A provisional long section of the principal structures at Accori North B and Accori North C shows the distribution of grade-thickness values (the product of the width of the mineralized interval and its U₃O₈ grade in %) on a vertical projection of the structure.  The coloured circles demarcate the pierce points on the structure.  A pierce point is the approximate location at which each bore hole intersects the structure. 

About U3O8 Corp.

U3O8 Corp. is a Canadian uranium exploration company based in Toronto, Canada.  Currently focused on exploration in the Roraima Basin area of Guyana, South America, U3O8 Corp.'s primary business objective is to explore, develop and acquire uranium projects in the Americas.  The Company is well funded with over $14 million held solely in cash and Canadian chartered bank-backed Guaranteed Investment Certificates.  At current rates of exploration expenditure, the company expects to be funded up until 2010.

U308 Corp. has exclusive uranium exploration rights in an area covering approximately 1.3 million hectares that straddles the edge of the Roraima Basin in Guyana.  The company is advancing a two-pronged exploration strategy that includes:

?         Exploration for multiple uranium-bearing structures within structural systems in the basement adjacent to the Roraima Basin with the concept that the individual veins could potentially aggregate to a significant total resource; and

?         Exploration for unconformity-style uranium deposits at the base of the Roraima Basin, which are similar to those of the prolific Athabasca Basin in Saskatchewan. 

For further information on U3O8 Corp's properties, please refer to the technical report prepared for the company by Dahrouge Geological Consulting Ltd. and dated September 15, 2006 as amended and restated December 12, 2006, available on SEDAR at www.sedar.com and on the company's website www.u3o8corp.com.  Potential quantity and grade are conceptual in nature. 

Forward-Looking Statements

Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties.  These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of U3O8 Corp., including, but not limited to, the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with the uncertainty of exploration results and estimates, currency fluctuations, dependence upon regulatory approvals, the uncertainty of obtaining additional financing and exploration risk.  Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. 

For information, please contact:

U3O8 Corp.

(416) 868-1491

Nancy Chan-Palmateer

Vice President, Investor Relations

nancy@u3o8corp.com

Richard Spencer

President & CEO

richard@u3o8corp.com

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

U3O8 Corp. (TSX-V: UWE)

Basic shares outstanding: 23,057,700

Fully diluted shares outstanding: 25,476,000