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| | Thursday, August 23, 2007
Bluerock Resources Signs Option Agreement On Cone Mtn. Uranium Project, Mesa County, CO, USA
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Vancouver, B.C., August 23, 2007 - Bluerock Resources Ltd. (TSX-V: BRD) (the Company) announces it signed an option agreement to purchase 100% interest in the Cone Mountain Uranium project, Mesa County, Colorado, USA. The project is located in the Uravan Uranium Mineral Belt near the historic October Uranium Mine and the Energy Fuel's Whirlwind Uranium Mine. The Cone Mountain uranium project was developed by Atlas Mineral Corp. (Atlas) in the early 1980's but was not put into production due to unfavourable uranium prices at that time.
The Company has obtained historical data* from the project which describes seven discrete blocks of mineralization with grades from 0.17% U3O8 to 1.49% U3O8 and an average grade of 0.80% U3O8, (or 16 pounds of U3O8 per ton) over a thickness 1.6 feet (0.5m). Ore intervals correlate well between holes and with an average distance of 50 feet (15m), demonstrate continuity. An historic* 1982 Atlas "Mine Development Plan" indicates that exploitation of all seven mineralized zones would require less than 1480 feet (450m) of underground development which could be completed rapidly once a positive production decision can be made. The fact that Atlas intended to develop the Cone Mountain uranium deposit in the face of falling uranium prices in the early 1980's speaks to the high value Atlas placed on the uranium deposit.
*The historical work was conducted by Atlas Minerals Corp, a major integrated uranium company in the 1970's and 1980's, the reliability of this data is unknown but considered reasonable by Company management. This historical data is non-N.I. 43-101 compliant and should not be relied upon. It is the Company's intention to verify this historical data. Confirmation work may produce results that differ substantially from the historic results.
The Company intends to move quickly to permit and execute a due diligence drilling program and subsequent bulk sample program to define the economics for development of this uranium project. A total of 61 drill holes have been recorded by Atlas to May 1982. The bulk of the defined uranium mineralization is located in the "Blocks 3 and 6" which remain open to expansion on strike. The other five blocks are significantly under-drilled and also present strong targets for the development of uranium resources. On the successful closure of due diligence, the Company intends to move quickly towards a production decision by extending the drilling program to expand on known areas of mineralization and conduct a bulk sampling program.
Highlights of historic* drill intersections include:
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Mineral Drill Thickness Grade
Block Hole # ft, (m) eU3O8 %
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Block 1 BL-1 1.5, (0.4) 0.52
Block 2 BL-2 2.0, (0.6) 1.32
Block 3 BL-3 1 1.0, (0.3) 1.40
Block 3 BL-3 2 1.0, (0.3) 0.63
Block 3 BL-3 3 1.5, (0.4) 1.41
Block 3 BL-3 4 1.5, (0.4) 0.49
Block 3 BL-3 5 1.0, (0.3) 0.66
Block 4 BL-4 1.5, (0.4) 0.41
Block 5 BL-5 1 2.0, (0.6) 0.97
Block 5 BL-5 2 1.5, (0.4) 1.49
Block 6 BL-6 1 2.0, (0.6) 0.32
Block 6 BL-6 2 2.0, (0.6) 0.48
Block 6 BL-6 3 1.5, (0.4) 0.30
Block 6 BL-6 4a 1.0, (0.3) 0.17
Block 6 BL-6 4b 2.5, (0.7) 0.54
Block 6 BL-6 5 1.0, (0.3) 0.56
Block 6 BL-6 6 1.0, (0.3) 0.58
Block 7 BL-7 1 1.5, (0.4) 1.23
Average 1.6, (0.4) 0.80
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President Michael Collins commented: "The Cone Mountain uranium project is an excellent example of the Company's objective of adding significant shareholder value by acquiring advanced uranium projects with solid economics, the potential to be developed rapidly and that have real potential for adding minable uranium resources. Bluerock expects that the Cone Mountain uranium project will add pounds to our uranium resource base and will form an integral part of our mine production strategy as we move forward to become a uranium producer under a toll milling scenario."
Under the terms of the agreement (which is subject to regulatory approval), the Company can purchase a 100% interest in the Cone Mountain Uranium Project by:
• Paying US$100,000 as a down payment on the project, refundable under certain conditions of a due diligence process;
• Pay US$300,000 and issue 100,000 Shares on closing due diligence, but in no event prior to April 21, 2008; and
• Paying US$450,000 and issue 200,000 Shares within five business days following the earlier of the commencement of commercial production from any part of the Property, or, two years from the date Bluerock provides notice to the Vendors that it is satisfied with its due diligence review.
Paul D. Gray, P.Geo. is the Qualified Person with respect to the Cone Mountain Project and has reviewed and approved this press release.
Bluerock Resources Ltd. is a uranium exploration company focused on discovering tomorrow's energy today through the acquisition and development of conventional uranium resources.
ON BEHALF OF THE BOARD OF DIRECTORS
Michael Collins
CEO, President and Director
For further information, please contact:
Cary Martin, Manager of Investor Relations
Bluerock Resources Ltd.
350-580 Hornby St,
Vancouver BC, V6C 3B6
Telephone: (604) 687-2471
Facsimile: (604) 687-2472
Website: www.bluerockresources.com
Email: cmartin@bluerockresources.com
Statements contained in this document that are not historical facts are forward looking statements as that term is defined in the private securities litigation reform act of 1995. Such forward -looking statements are subject to risks and uncertainties which could cause actual results to differ materially from estimated results. Such risks and uncertainties are detailed in the Company's filing with the B.C. Securities Commission.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release
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