U3O8 Corp. cuts 14 metres at 0.106% (2.1 pounds per short ton) U₃O₈

at Aricheng South

Assay results from an additional ten holes confirm that uranium mineralization is open in all directions and expand the resource potential at Aricheng South

Toronto, Ontario ? October 30, 2008 ? U3O8 Corp. (TSX Venture: UWE), a Canadian uranium exploration company, reports significant intercepts of uranium mineralization from an additional ten holes drilled in the Aricheng South breccia zone in the Kurupung Batholith, located in the basement near the Roraima Basin in Guyana (Figure 1).  These assay results confirm the continuity of mineralized shoots within the host structure, which remain open along strike and at depth, and extend the resource potential at Aricheng South.  A total of 87 bore holes for 15,800 metres have now been completed at Aricheng South.      

?These latest results from Aricheng South contribute to a body of evidence that suggests a strong similarity in grade, distribution and geology to the sizeable Michelin uranium deposit in Labrador.  Like Michelin, uranium at Aricheng South is located in basement rocks and is concentrated in mineralized shoots that are enclosed by albite alteration,? said Dr. Richard Spencer, U3O8 Corp?s President and CEO.  ?The additional drill data has been delivered to the independent consulting company that is conducting the initial resource estimate on Aricheng South, which is on schedule for release in December, 2008.?

Dr. Spencer continued, ?In light of current capital market conditions, we have rationalized our exploration programs to conserve cash while maintaining momentum on key projects aimed at delivering near term value.  Given its resource prospects, we will focus on expanding the overall size of the mineralized zone at Aricheng South by using wider-space drilling to add potential pounds of uranium in a cost-efficient manner.  Intense exploration continues on defining alteration and geochemical zoning in specific unconformity-related targets in the Roraima Basin.  With over $12 million in cash, U3O8 Corp. is in a fortunate position to continue to judiciously advance its disciplined exploration efforts and to build on promising findings to date.?

Assay highlights from the ten bore holes at Aricheng South reported here include:

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

Aricheng South

Drilling to date at Aricheng South (87 bore holes for 15,800 metres) has delineated uranium mineralization (Figure 2a):

?         over a strike length of 270 metres and shown that mineralization is open along strike;

?         to a maximum depth of 180 metres below surface and is open at depth; and

?         concentrated in near-vertical shoots.

Aricheng South appears to be analogous with Aurora Energy Resources? Michelin deposit in Labrador (that has a measured and indicated resource of about 48 million pounds grading at 0.12% U₃O₈*).  Similar to Michelin, mineralization at Aricheng South is basement-hosted and is concentrated in mineralized shoots that are enclosed by albite alteration ? a class of deposits termed ?albitite-hosted? uranium. 

For ease of comparison, the U₃O₈ grade-thickness data for Aricheng South have been contoured using the same intervals and colour scheme as used for the Michelin deposit in Aurora?s 43-101 report dated April 7, 2008*. Comparison of the long section from Aricheng South with that of the Michelin deposit shows a marked similarity in tenor and distribution of mineralization (Figure 3). 

VLF-EM (Very Low Frequency Electromagnetic) data suggests that the Aricheng South mineralized structure extends for a significant distance along strike.  VLF-EM data from the Aricheng South area shows that the geophysical anomaly on which mineralization has been drilled to date extends a further 300 metres to the west and approximately 400 metres to the east (Figure 2b).  The ongoing drill program aims to establish the extent to which the extensions of the Aricheng South structure may be mineralized. 

Summary assay results for previous drilling at Aricheng South were released on August 1, 2007; February 26, 2008; April 10, 2008; May 7, 2008; June 25, 2008 and August 12, 2008.  All reported assay results are available at www.sedar.com and www.u3o8corp.com. 

Drill hole locations relative to the ground scintillometer survey and previous drilling are shown in Figure 4.  

Potential quantity and grade are conceptual in nature.  There has been insufficient exploration to define a mineral resource on U3O8 Corp?s properties and it is uncertain if further exploration will result in the target being delineated as a mineral resource.

Aricheng North and Aricheng West

Further drilling at Aricheng North and Aricheng West has been completed.  Results from these two albitite-hosted uranium target areas are scheduled for release in November 2008.

Exploration Outlook and Strategy

Given current volatile financial markets, U3O8 Corp. has refined its corporate strategy to be appropriately prudent with its capital while optimizing the near term exploration potential of its key projects, as follows:  

?         Cash Conservation ? Scale down exploration efforts to focus on priority projects. Reduce monthly expenditure by about 40%, which reduces the burn rate to the extent that current cash reserves should be sufficient for approximately 18 months.  With its own drill rigs, U3O8 Corp?s drill cost of around $67 per metre (all inclusive) is roughly half that of typical contract drilling.  Ownership of the rigs also gives the company the flexibility to quickly expand or further reduce its drill programs as necessary.  The company will continue to monitor the global market situation and may adjust its programs, depending on future market conditions.

?         Basement-Hosted Uranium Exploration in the Kurupung Batholith:

o        Initial Resource Estimates ? Complete the resource estimates currently underway on the first two basement-hosted structures at Aricheng South and Aricheng North, which are due at the end of 2008.  These initial resource estimates are expected to be interim in nature since mineralization in both structures is still open along strike and at depth.  U3O8 Corp. intends to periodically update the resource contained in these structures as the extent of mineralization is expanded by further drilling.

o        Realize Full Resource Potential at Aricheng South ? Given its analogy with the Michelin deposit, focus ongoing drilling to determine the size of the mineralized zone at Aricheng South.  Consistent with the Michelin model, wider-spaced drilling will now be used at Aricheng South to expeditiously convert metres drilled into in situ pounds of uranium. 

?         Unconformity-Related Uranium Exploration in the Roraima Basin:

o        Intense exploration for unconformity-related uranium continues on specific target areas in the Roraima Basin.  Field work is concentrating on ground radiometric surveys to identify areas of radiation and is being combined with spectral analysis of clay minerals in order to identify alteration zoning within the Roraima Basin.  This field-based exploration provides a cost-effective means of identifying the most prospective parts of the wider target areas. 

Quality Assurance & Quality Control

Diamond drilling at Aricheng South 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. 

Mr. Richard Cleath (M.Sc.), Vice President of U3O8 Corp., 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 Aricheng South target.  Mr. Cleath has supervised the preparation of, and verified, the technical information in this release. 

Table 1 ? Assay Results for Aricheng South

Summary of significantly mineralized intercepts cut in the additional ten bore holes (2,223 metres) undertaken in August, 2008, at Aricheng South.

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

Figure 1 ? Map of Magnetic Data and Interpreted Structures in Kurupung Batholith

a.      Map of magnetic data from the Kurupung Batholith shows interpreted structures (black lines).  The margins of the Kurupung Batholith are marked by southeast orientated magnetic anomalies that coincide with the location of 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 sigmoidal structures extending between the bounding shear zones with known mineralized zones shown.  The mineralized shoot in the Aricheng South structure is located where a splay-fault intersects the principal sigmoidal structure.  The mineralized zone at Aricheng South is labeled in red.

Figure 2 ? Long Section and VLF-EM Image of the Aricheng South Structure

a.      A provisional long section of the principal structure at Aricheng South 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.

b.      A Very Low Frequency Electromagnetic (VLF-EM) image suggests the possible strike extension of the mineralization at Aricheng South both to the east and west of the area in which drilling has been conducted to date.  The VLF-EM data shows the location of the bore holes drilled to date that have shown uranium mineralization to lie on the northern contact of the orange-coloured anomaly.  Further drilling will test for uranium mineralization along the obvious extensions of the Aricheng South structure.

Figure 3 ? Aricheng South compared with the Long Section of Michelin Deposit

The same long section of the Aricheng South structure from Figure 2 is inserted here at the same scale, and using the same colour scheme for uranium grade-thickness values, as are used in the long section of Aurora Energy?s 48 million pound Michelin deposit in Labrador*.  Comparison of these long sections shows the similarity in tenor and distribution of mineralization in Aricheng South in relation to the Michelin deposit.

Figure 4 ?Drill Hole Locations at Aricheng South

Map shows the ground scintillometer radiometric anomaly at Aricheng South with the location of Phase I, II and previously reported Phase III drill holes labelled in black. The additional ten drill holes, whose results are reported here, are labelled in red. 

About U3O8 Corp.

U3O8 Corp. is a Canadian mineral exploration company based in Toronto, Canada.  Currently focused on uranium exploration in the Roraima Basin in 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 $12 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 focuses on:

?         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 the company?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.  

*Aurora Energy?s Michelin resource estimate has not been independently verified by U3O8 Corp. and is based on Aurora?s Form 43-101F1 Technical Report dated April 7, 2008 and amended on August 28, 2008. Comparisons of U3O8 Corp?s target with Aurora?s Michelin deposit are conceptual in nature.  There is no certainty that further exploration will result in the delineation of a similar mineral resource.

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: 25,472,250