URU Metals Limited Regulatory News (URU)

19 May 2008 10:59

For immediate release

19 May 2008

Niger Uranium Limited

("Niger Uranium" or "the Company")

Phase II of Argentinean Uranium Exploration Programme Underway

Niger Uranium Limited (AIM: URU), the uranium focused exploration and investment company with interests in Niger, Namibia and South America, announces the commencement of Phase II of the Uranium Exploration Programme over the permits filed by UrAmerica Plc (UrA) in Chubut and Salta provinces, Argentina. In April, Niger Uranium announced that it had acquired an initial 20.08 per cent. strategic interest in UrAmerica, an Argentinean based private company with uranium exploration projects throughout South America. 

Highlights

Initial Phase II to define uranium drill targets commenced 21 April 2008. Work has been completed in Chubut but is ongoing in the Salta Province of Argentina.

Field mapping and sampling programmes underway and includes radiometric and hyperspectral analysis and geochemical soil and rock surveys across the license area.

Historic CNEA (Comisión Nacional de Energía Atómica, Argentina) data has been used to target lithologies expected to host mineralisation.

Work is being undertaken by Alto Americas, a highly respected remote sensing and geological exploration company based in Buenos Aires.

Drilling phase expected to commence third quarter 2008.

Ian Stalker, Deputy Chairman of Niger Uranium, said: 

"Niger Uranium continues to build its portfolio of uranium projects alongside the development of its wholly-owned uranium exploration projects in Niger on which encouraging drilling results have recently been announced.

We are delighted to announce the commencement of work in the "uranium rich" provinces of Salta and Chubut by our strategic partner in South America, UrAmerica. This geographical diversification emphasises our intent to grow Niger Uranium within the international uranium community concentrating on areas with historical production environments."

The objective of Phase II is to delineate promptly and accurately uranium drilling targets with these areas. This component of the exploration programme entails detailed field mapping and sampling programmes that will include radiometric and spectroscopic analysis and geochemical analysis across the license areas. By integrating all the data using GIS and other mapping software a number of drilling targets will be delineated that will be prioritised so that drilling can commence without delay. This phase of sampling and drill target generation should be completed by the end of July 2008 for the licence areas.

UrAmerica has license applications in the provinces of Chubut and Salta that will be issued once full scale exploration commences. These applications cover 123,240 hectares in the San Jorge Basin in Chubut and 61,973 hectares in the Tonco Amblayo Basin in Salta. 

UrAmerica used historic CNEA data, geological and drainage maps, data acquisition from field campaigns (including hyperspectral surveys) and ASTER data to produce a variety of interpreted maps and images that were used to select the target lithologies expected host mineralisation. This study completed the first component of Phase I of the exploration programme.

The exploration work is being conducted on behalf of UrAmerica by Alto Americas, a hyperspectral remote sensing and exploration company in Argentina.

Uranium Deposits in Argentina

The UrAmerica properties in Chubut are grouped into 13 claim blocks that are located south of the Cerro Solo Deposit. Cerro Solo was explored by CNEA and a pre-feasibility project completed in 1997. 

The Salta license applications held by UrAmerica are over the Yacorite Formation that is made up of the sedimentary rocks that host the uranium mineralization in the Don Otto Mine that was mined between 1960 and 1981. 

UrAmerica has made license applications for exploration in Columbia and Paraguay.

The Directors believe that UrAmerica is well placed within Argentina to maximise the opportunity of entering into potential agreements with the CNEA with a view to investment in their existing operations.  CNEA has been a uranium yellow cake producer from its own operated state mines in the two areas where UrAmerica has an interest. Argentina has two nuclear reactors with approved plans to build two more.

Qualified Person

The information contained in this announcement has been reviewed by Keith Kenyon (MSc. AUS IMM), Geochemical Consultant to Niger Uranium. He is the Qualified Person overseeing the geochemical exploration on the In Gall-Irhazer licences. Mr. Kenyon has 36 years experience in gold and uranium exploration and geochemistry and he is undertaking to act as a Qualified Person for the purposes of this announcement.

GLOSSARY

Forward-Looking Statements:

This press release contains statements that are "forward-looking". Generally, the words "expect," "intend," "estimate," "will" and similar expressions identify forward-looking statements. By their very nature, forward-looking statements are subject to known and unknown risks and uncertainties that may cause our actual results, performance or achievements, or that of our industry, to differ materially from those expressed or implied in any of our forward-looking statements. Statements in this press release regarding the Company's business or proposed business, which are not historical facts, are "forward looking" statements that involve risks and uncertainties, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.

Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made.

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