Statement re Production result for the quarter ended 31 August 2007

12 Sep 2007 07:00

Production Result for the Quarter Ended 31 August 2007 UME expects to produce 95,000 ounces for the Full Year Uruguay Mineral Exploration Inc ("UME") advises that production in the firstquarter ended 31 August 2007 was 18,464 ounces, lower than the target of 21,000ounces announced on 2 August 2007. Profits and cash flow for the quarter will belower than management expectations which were based on 21,000 ounces of goldproduction. Cash cost per ounce will be higher due to the lower productionlevels. Production in the first quarter was below the target as the grade of ore minedin the first benches directly under the Arroyo Corrales was lower thanestimated. More tonnes were encountered at lower grade with more overall ouncesmined from the area than estimated. Ore was fed to the plant as presented andthe additional ounces will be produced in future periods. The first benches directly beneath the Arroyo Corrales were classified asIndicated Resources as they could not be fully drilled due to accessrestrictions. These results have no implications for the remainder of the Arenalresource estimates. By the end of the month mining had advanced to deeper levels where grades werein line with reserve estimates. UME expects to achieve its stated target of95,000 ounces of production for the full year. Qualified Person's Statement The technical information presented in this press release has been reviewed andverified by Mr John Sadek, Vice President Operations and a Mining Engineer. Mr.Sadek is the Qualified Person for the purposes of the AIM Guidance Note onMining, Oil and Gas Companies dated March 2006. Mr Sadek has a Bachelor ofEngineering (Mining) from the University of Sydney and is a member of the AusIMMand SME. He has over 20 years of international experience in mining. ENDS The TSX Venture Exchange has not reviewed and does not accept responsibility forthe adequacy or accuracy of this news release. Editors note: Uruguay Mineral Exploration Inc. is a gold producer andexploration company focused on identifying and developing mineral opportunitiesin Uruguay. UME is a fully integrated mining company, possessing the skillsnecessary to explore and develop its discoveries. The Company operates the onlyproducing gold mine in Uruguay (San Gregorio), and is also the leading mineralexploration company in Uruguay having assembled an exploration portfolio basedon gold, base metals (copper, nickel, lead, zinc) and diamond prospects. Uruguay Mineral Exploration Inc. is quoted in Canada (TSXV) and London (AIM) andRBC Capital Markets is its Nominated Adviser and Broker. For further information, please contact: Uruguay Mineral Exploration IncTony Shearer, Chairman: +44 20 7602-1570tonyshearer@btinternet.comDavid Fowler, CEO: 598 2 6016354urumin@ume.com.uy Investor/Media RelationsEmily Bruning, Shared Value Ltd: +44 (0) 20 7321 5027ebruning@sharedvalue.net RBC Capital MarketsAndrew Smith: +44 (0) 20 7029 7882andrew.smith@rbccm.comSarah Wharry: +44 (0) 20 7653 4667sarah.wharry@rbccm.comMartin Eales: +44 (0) 20 7029 7881martin.eales@rbccm.com Copyright Business Wire 2007