Uranium Energy Corp Announces New Uranium Discovery in Texas

Company Geologists Believe Discovery May Constitute a New Uranium District in Texas

AUSTIN, TX – December 10, 2007 – Uranium Energy Corp announces the completion of the Company’s initial exploration of a 100%-controlled lease block in south Texas in an area outside of the historic South Texas Uranium Trend.   The exploration program consisted of 21 drill holes totaling 9,230 feet of drilling. Results are shown in the table below.  The program was designed to test the presence of mineralized trends in the Carrizo Sand. To date, the Carrizo Sand has received very little exploration, and no commercial uranium deposits have been developed here.

Wold Nuclear explored this area in the late 1970s. Uranium Energy Corp has Wold’s exploration records, consisting of reports, maps and drill logs, which identify approximately five miles of mineralized trend, with the potential for stacked or multiple mineralized horizons.  This mineralized trend has been leased by the Company. Wold’s exploration came during a period of declining uranium prices and the project has not been developed further.  Historic core-hole data recorded chemical assays of 9.0’ of 0.077% and 5.0’ of 0.11% U3O8, with disequilibrium factors (DEF) of 1.93 and 2.03, respectively.  This disclosure of historic grades and DEF has not been independently verified.  The statement is considered relevant, but cannot be relied upon without verification. 

The lower Tertiary-age Carrizo Sand underlies the middle to upper Tertiary-age Jackson, Catahoula, Oakville and Goliad formations (in ascending order) that host the majority of the historic uranium deposits of the South Texas Uranium Trend.  The Carrizo Sand outcrops approximately 60-80 miles west-northwest of the established trend.  The thickness of the Carrizo was found to vary from 70 to approximately 140 feet thick, consisting of fine to very fine-grained, well-sorted sandstone, possessing a very high quartz content, and occurring below the groundwater table. Geochemically, the sands were found to be pervasively precipitated, with surface oxidation penetrating 30 to 50 feet below ground surface.

Uranium Energy Corp’s exploration drilling was carried out on parallel drilling lines or fences placed perpendicular to the postulated strike of the mineralization, and spaced roughly 400 feet apart.  At least two vertically separate mineralized zones were encountered and traced by drilling across the lease block for several miles, confirming historical data.  The highest grade of mineralization recorded was 4.0 feet of 0.05% (see Table 1 below), and this was based on gamma logs before adjusting for the historic disequilibrium multiple.

The mineralization appears to be stratabound and associated with tuffaceous horizons and not reminiscent of the classic roll-front geometry typical of the South Texas Trend.  The sands are below the groundwater table and Company geologists believe the mineralization would be recoverable by the In Situ Recovery (ISR) method of mining. Results shown below are based on gamma logs before adjusting for the historic disequilibrium multiple.

TABLE 1: Carrizo Project Mineralized Intercepts Drilled by Uranium Energy Corp

Company geologists are currently analyzing the drilling data, as well as associated geochemical data collected during the exploration program.  Initial GT values are indicative of potential ISR values.  Planning is underway for a follow-up drilling program in early 2008. Chemical analysis is planned to determine the effective disequilibrium factor and to finalize assays.

The scientific and technical information in this news release has been prepared and reviewed by Clyde Yancey, P. Geo., VP of Exploration of Uranium Energy Corp, a qualified person as defined by NI43-101.

About Uranium Energy Corp

Uranium Energy Corp (AMEX: UEC) is a US-based junior resource company with the objective of becoming a near-term ISR uranium producer in the United States.  The Company controls one of the largest historical uranium exploration and development databases in the US.  Through the use of these databases, the Company has acquired advanced uranium properties throughout the southwestern US.  The operational management is comprised of pre-eminent uranium mining and exploration professionals, whose collective experience in the uranium mining industry gives the Company ongoing uranium mine-finding and uranium mine development expertise. 

Safe Harbor Statement

This news release contains forward-looking statements within the meaning of Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities and Exchange Act of 1934, as amended.  Statements in this news release, which are not purely historical, are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future.  These statements involve risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements contained herein.  Such risks and uncertainties may include, but are not limited to, the impact of competitive products, the ability to meet customer demand, the ability to manage growth, acquisitions of technology, equipment or human resources, the effect of economic and business conditions, the ability to attract and retain skilled personnel and factors outside the control of the Company.  These forward-looking statements are made as of the date of this news release, and the Company assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements.  Although the Company believes that the beliefs, plans, expectations and intentions contained in this news release are reasonable, there can be no assurance those beliefs, plans, expectations or intentions will prove to be accurate.  Investors should consider all of the information set forth herein and should also refer to the risk factors disclosed in the Company’s periodic reports filed from time-to-time with the United States Securities and Exchange Commission.  This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor there any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.