UEX Corp /AREVA Drilling Continues to Outline Thick Mineralization at the Colette Deposit: Drill Hole SHE-66- by 24hgold

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Wednesday, August 08, 2012

UEX/AREVA Drilling Continues to Outline Thick Mineralization at the Colette Deposit: Drill Hole SHE-66-10 Intersects 10.9 Metres Grading 1.96% eU3O8

UEX Corporation ("UEX") is pleased to announce results from the continued exploration of the Colette and the 58B deposits, both of which are located in the northern portion of the Shea Creek Project ("Shea Creek") in the Athabasca Basin of northern Saskatchewan. Shea Creek hosts the Kianna, Anne, Colette and 58B deposits (Figure 1) and is one of ten 49%-owned Western Athabasca Uranium Projects joint-ventured with AREVA Resources Canada Inc. ("AREVA"), the project operator.

The 2012 drilling program to date has met its objectives to confirm the continuity of mineralization in the northern portion of the Colette Deposit ("Colette") and further delineate the 58B Deposit ("58B"). Highlights of the program are as follows:

Confirmation that the higher grade unconformity and perched mineralization in the northern portion of the Colette Deposit is continuous over a lateral area of at least 100 x 50 metres and extends up to 25 metres above the unconformity; and
Further definition of northern portions of the 58B Deposit at the unconformity and better constraint of the distribution of basement mineralization.

Drilling Results - Colette Deposit

The mineralized intersections in holes SHE-66-7 to SHE-66-13 confirm the continuity of unconformity and perched mineralization in the northern portion of the Colette Deposit. The mineralization largely straddles the basal Athabasca unconformity ("UC") and also occurs perched ("P") above the unconformity. Highlights of the drill results include (see Table 1 for complete results):

SHE-66-7:	(UC)	0.29% eU₃O₈ over 9.1metres, including
		0.54% eU₃O₈ over 2.0 metres, and
		0.58% eU₃O₈ over 1.9 metres;
SHE-66-8:	(UC)	0.27% eU₃O₈ over 11.1 metres, including
		0.50% eU₃O₈ over 2.4 metres, and
		0.67% eU₃O₈ over 1.5 metres;
SHE-66-9:	(P)	0.60% eU₃O₈ over 11.5 metres, including
		0.78% eU₃O₈ over 5.9 metres, and
		0.49% eU₃O₈ over 4.6 metres;
	(UC)	1.37% eU₃O₈ over 1.5 metres;
SHE-66-10:	(P)	1.96% eU₃O₈ over 10.9 metres,
	(UC)	0.62% eU₃O₈ over 3.1 metres;
SHE-66-11:	(UC)	0.45% eU₃O₈ over 4.9 metres, including
		0.68% eU₃O₈ over 3.0 metres;
SHE-66-13:	(UC)	0.95% eU₃O₈ over 5.2 metres.

Drill holes SHE-66-7 to SHE-66-13, as identified in Figure 2, are the last directional drill cuts that were planned for the 2012 drilling program at the Colette Deposit. The holes were designed to follow up on successful drilling results from the SHE-66 series drill holes at Colette obtained in 2011 and early 2012. These included intervals of 1.28% eU₃O₈ over 26.0 metres in drill hole SHE-66-2 and 1.22% eU₃O₈ over 27.9 metres in drill hole SHE 66 3 (see UEX news release dated October 31, 2011). Previous results reported earlier this year include 0.98% eU₃O₈ over 19.4 metres in drill hole SHE-66-4 (see UEX news release dated May 31, 2012).

These drill holes continue to define a thick flat-lying lens of mineralization at the unconformity which, on the basis of its overall morphology, suggests that the new intercepts are within 90% of true thickness. Mineralization is open to the northeast in the direction of UEX's and AREVA's Douglas River Project.

In addition to the unconformity mineralization, drill holes SHE-66-9 and SHE-66-10 intersected perched mineralization grading 0.60% eU₃O₈ over 11.5 metres, including 0.78% eU₃O₈ over 5.9 metres and 1.96% eU₃O₈ over 10.9 metres, respectively.

Drilling Results -- 58B Deposit

Five drill holes were completed during the 2012 exploration program at 58B, an emerging new deposit identified during 2010 and located in an area between the Kianna and Colette deposits (Figure 3).

The 58B Deposit was not included in the May 2010 N.I. 43-101 mineral resource estimate. Previously reported drilling in 2010 includes unconformity and basement intercepts of 6.53% eU₃O₈ over 1.6 metres in drill hole SHE-133-5, 2.13% eU₃O₈ over 10.6 metres in drill hole SHE-133-7, 6.55% eU₃O₈ over 2.4 metres in drill hole SHE-133-4 and 1.32% eU₃O₈ over 5.8 metres in drill hole SHE-133-11 (see UEX news releases dated June 14, 2010, March 17, 2010 and September 21, 2010).

Drilling during 2012 in the 58B area was designed to test down dip and lateral extensions of basement mineralization and the extent and continuity of overlying unconformity mineralization. Significant intercepts include (see Table 2 for complete results):

SHE-104-9:	(UC)	0.44% eU₃O₈ over 6.2 metres;
SHE-104-10:	(UC)	0.49% eU₃O₈ over 1.2 metres,
	(B)	0.23% eU₃O₈ over 10.0 metres, and
	(B)	0.35% eU₃O₈ over 6.3 metres;
SHE-104-11:	(UC)	2.12% eU₃O₈ over 2.3 metres, and
	(UC)	0.65% eU₃O₈ over 1.8 metres;
SHE-133-13:	(B)	2.27% eU₃O₈ over 1.2 metres;
SHE-133-14:	(UC)	0.19% eU₃O₈ over 1.4 metres.

The new 58B results further define northern portions of the mineralized zone at the unconformity and better constrain the distribution of basement mineralization. Broad areas of the highly prospective structural corridor hosting the 58B Deposit that lie between the Kianna and Colette deposits remain sparsely tested and will be the subject of additional drilling in future programs.

The holes drilled in the Colette and 58B areas are part of a larger, $6.0-million exploration program on the Shea Creek Project and conclude the 2012 planned exploration in these areas. Currently, the two drills operating on the project are being moved to the Kianna Deposit ("Kianna") to test basement mineralization discovered in 2011 which lies north of the main Kianna basement zone. Drilling in 2011 identified a new zone which extends from the north side of the Kianna main basement zone and may join with a second steeply dipping mineralized structure to the north. This new zone, which lies outside of the Kianna mineral resource estimate, has returned broad intercepts of mineralization including 1.28% eU₃O₈ over 25.1 metres in drill hole SHE-130-4 and 0.81% eU₃O₈ over 32.0 metres in drill hole SHE-130-12, for which true widths have not yet been determined (see UEX news releases dated May 3, 2011 and September 29, 2011). The 2012 drilling at Kianna will target these areas, as well as exploring the continuity of higher grade portions of unconformity and basement mineralization in the southern portion of the deposit.

Further information regarding UEX's projects, including maps, is available on UEX's website at www.uex-corporation.com.

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 each Qualified Persons as defined by National Instrument 43-101.

Equivalent grade results reported here 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

Effective May 26, 2010, UEX reported a global mineral resource estimate for the Kianna, Anne and Colette deposits as tabulated below in "About UEX". This estimate is based on drilling information up to December 31, 2009. Subsequent results, which include the identification of the 58B Deposit and the expansion of the Kianna and Colette deposits, are not incorporated in the 2010 mineral resource estimate.

The 2010 mineral resource estimate confirmed Shea Creek as the largest undeveloped uranium resource in the Athabasca Basin. Shea Creek 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.

At the conclusion of the 2012 exploration program, UEX intends to update its mineral resource estimates for the Shea Creek deposits to include the results from the 2010, 2011 and 2012 drilling campaigns.

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 308,320 hectares (761,875 acres), are located in the eastern, western and northern perimeters of the Athabasca Basin, the world's richest uranium belt, which accounts for approximately 17% of the global primary uranium production. UEX is currently advancing several uranium deposits at its two major projects 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 $16.1 million at June 30, 2012, UEX is well-financed to carry out its remaining 2012 exploration and development programs.

UEX's two major projects have mineral resource estimates as follows:

UEX Corporation - Indicated Mineral Resources ^{(1) (2) (3)}

Project	Tonnes	Grade U₃O₈ (%)	Total U₃O₈ (lbs)	UEX�s share U₃O₈ (lbs)
Shea Creek ⁽⁴⁾	1,872,600	1.540	63,572,000	31,150,280
Hidden Bay ⁽⁵⁾	10,372,500	0.160	36,623,000	36,623,000
TOTAL INDICATED	12,245,100	0.371	100,195,000	67,773,280

UEX Corporation - Inferred Mineral Resources ^{(1) (2) (3)}

Project	Tonnes	Grade U₃O₈ (%)	Total U₃O₈ (lbs)	UEX�s share U₃O₈ (lbs)
Shea Creek ⁽⁴⁾	1,068,900	1.041	24,525,000	12,017,250
Hidden Bay ⁽⁵⁾	1,109,200	0.111	2,715,000	2,715,000
TOTAL INFERRED	2,178,100	0.567	27,240,000	14,732,250

Notes:

The mineral resource estimates follow the requirements of National Instrument 43-101 -- Standards of Disclosure for Mineral Projects and classifications follow CIM definition standards.
The Shea Creek mineral resources were estimated at a cut-off of 0.30% U₃O₈.
The Hidden Bay mineral resources were estimated at a cut-off of 0.05% U₃O₈.
The Shea Creek mineral resource estimates (including the Kianna, Anne and Colette deposits) are included in the Shea Creek Technical Report with an effective date of May 26, 2010 which was filed on SEDAR at www.sedar.com on July 9, 2010.
The Hidden Bay mineral resource estimates (including the Horseshoe, Raven and West Bear deposits) are included in the Hidden Bay Technical Report with an effective date of February 15, 2011 which was filed on SEDAR at www.sedar.com on February 23, 2011. The West Bear mineral resource estimate is entirely in the Indicated category.

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 48,000 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 and Cigar Lake 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 mineral resource and mineral reserve 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 is 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, participation in joint ventures, reliance on other companies as operators, 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
2012 Shea Creek (Colette) Drill Results
Results are reported with a grade of greater than 0.1% eU₃O₈ 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-66-4*	762.0	724.2	674.2	679.2	5.0	0.27	P
			including 674.2	676.7	2.5	0.45	P
			700.4	719.8	19.4	0.98	UC
			including 700.4	705.8	5.4	0.83	UC
			including 707.1	718.6	11.5	1.25	UC
SHE-66-5*	744.0	702.0	693.8	703.3	9.5	0.32	UC
			including 695.0	696.5	1.5	0.92	UC
SHE-66-6*	783.0	711.9	708.3	712.6	4.3	0.76	UC
			720.1	721.0	0.9	0.49	B
SHE-66-7	828.0	704.8	696.35	705.45	9.1	0.29	UC
			including 698.85	700.85	2.0	0.54	UC
			including 703.55	705.45	1.9	0.58	UC
			750.35	754.35	4.0	0.22	B
			including 750.35	752.05	1.7	0.37	B
SHE-66-8	806.0	709.3	702.6	713.7	11.1	0.27	UC
			including 702.6	704.2	1.6	0.49	UC
			including 708.8	711.2	2.4	0.50	UC
			including 712.2	713.7	1.5	0.67	UC
SHE-66-9	801.0	717.0	698.1	709.6	11.5	0.60	P
			including 698.1	704.0	5.9	0.78	P
			including 705.0	709.6	4.6	0.49	P
			714.3	715.8	1.5	1.37	UC
SHE-66-10	774.0	728.5	673.8	684.7	10.9	1.96	P
			710.8	713.9	3.1	0.62	UC
			including 710.8	712.9	2.1	0.88	UC
SHE-66-11	805.5	728.7	714.5	719.4	4.9	0.45	UC
			including 714.5	717.5	3.0	0.68	UC
SHE-66-12	789.0	722.4	No significant values
SHE-66-13	816.0	724.6	717.8	723.0	5.2	0.95	UC

* Previously reported hole - (see UEX news release dated May 31, 2012)
� P - Perched mineralization
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.

TABLE 2
2012 Shea Creek (58B) Drill Results
Results are reported with a grade of greater than 0.1% eU₃O₈ 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-104-9	921.0	725.9	718.7	724.9	6.2	0.44	UC
			783.7	784.3	0.6	0.34	B
SHE-104-10	945.0	729.4	723.8	725.0	1.2	0.49	UC
			770.8	780.8	10.0	0.23	B
			including 771.5	772.8	1.3	0.99	B
			including 779.0	780.8	1.8	0.42	B
			883.3	889.6	6.3	0.35	B
			including 883.3	886.9	3.6	0.44	B
			including 888.0	889.6	1.6	0.39	B
SHE-104-11	923.0	716.7	708.8	711.1	2.3	2.12	UC
			715.1	716.9	1.8	0.65	UC
SHE-133-13	887.0	720.4	756.6	757.8	1.2	2.27	B
			795.7	796.2	0.5	0.75	B
SHE-133-14	873.0	731.0	728.7	730.1	1.4	0.19	UC

� P - Perched mineralization
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

FIGURE 2

FIGURE 3

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