1st Quarter Results

13 Oct 2005 10:00

Uruguay Mineral Exploration Inc13 October 2005 URUGUAY MINERAL EXPLORATION INC. MEDIA RELEASE 13th October, 2005: IMMEDIATE SYMBOLS: UME (TSXV), UGY(AIM) First Quarter Results UME declares Q1 Profit of US$ 2.24m Uruguay Mineral Exploration Inc. ("UME" or the "Company"), the profitablemid-tier gold producer and explorer, today released its results for the first quarter ended August 31, 2005. Highlights were: • Net profit after tax of US$ 2.24m or US$ 0.05 per share. • Cash flow from operations of US$4.189m before non-cash working capital movements; equivalent to US$ 0.09 per share. • Gold production of 25,163 ounces meets 100,000 ounces per annum target rate. • An average cash cost of US$212/oz approaches the targeted US$200/oz. • Revenues of US$11.721m with average price of gold sold of US$432 per ounce. Chairman Tony Shearer comments "It is pleasing to see the Arenal mine performingin accordance with expectations, and unit costs being aggressively lowered.Exploration is making good progress as well with increased emphasis now beingplaced on Lascano and the Rivera Diamond project, in addition to our strongnear-mine program." Further details are available in the Management Discussion and Analysis thataccompanies the Financial Statement, which are available fromwww.uruguayminerals.com or http://www.sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00004014 ENDS Editors note: Uruguay Mineral Exploration Inc., which joined AIM in December2004, is a gold producer and exploration company focussed on identifying anddeveloping mineral opportunities in Uruguay. UME is a fully integrated miningcompany, possessing the skills necessary to explore and develop its discoveries.The Company operates the only producing gold mine in the country (San Gregorio),and is also the leading mineral exploration company in Uruguay having assembledan exploration portfolio based on gold, base metals (copper, nickel, lead, zinc)and diamond prospects. In the first half of 2003, the Company discovered theArenal deposit, currently the largest known gold resource in Uruguay. It isquoted in Canada (TSXV) and London (AIM) and Panmure Gordon & Co is thenominated adviser. For further information, please contact Uruguay Mineral Exploration Inc Tony Shearer, Chairman + 44 20 7523 5914; tony@tonyshearer.com Chris Clark, President +59 82 601 6354; urumin@adinet.com.uy PJ Lewis + 44 7950 003 138; pjlewis@tiscali.co.uk Panmure Gordon & Co Mathew Robinson +44 207 459 3600 Jonathan Retter +44 207 459 3600 This information is provided by RNS The company news service from the London Stock Exchange