Transaction in Own Shares

12 May 2008 12:52

UME purchases more of its own shares Uruguay Mineral Exploration Inc ("the Company") (TSX VENTURE:UME) (LSE:UGY)announces that on 8 and 9 May, 2008 CIBC World Markets plc has purchased on itsbehalf 9,800 of its common shares ("Common Shares") at a price of C$ 2.64 pershare; these shares will be immediately cancelled. After such cancellation, thenumber of issued and outstanding Common Shares of the Company will be48,843,068. This purchase has been made following the announcement made on 11 December, 2007that, based upon the continued strength of its current and anticipated cashflows and balance sheet, the Company would spend not more than C$ 2 million tobuy-back its own shares and, in compliance with the TSX-V requirements, wouldpurchase no more than 2,446,313 Common Shares, which is equal to 5% of the totalissued and outstanding Common Shares of the Company as of such date. The cumulative total number of Common Shares purchased under this mandate is98,200 at an aggregate cost of C$ 317,336. Tony Shearer, Chairman commented: "As discussed in the 3rd quarter release, wewere surprised and a little disappointed that the drilling at depth near themine did not produce the results we were expecting. However we believe that wehave a number of very promising targets that we are drilling in 2008. TheCompany has bought back these shares as the Directors believe that the pricepaid is significantly lower than the Company's fair value." 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 Inc Tony Shearer, Chairman: +44 20 7602-1570; tonyshearer@btinternet.com David Fowler, CEO: 598 2 6016354; urumin@ume.com.uy Investor/Media Relations Emily Bruning, Shared Value Ltd: +44 (0) 20 7321 5027; ebruning@sharedvalue.net RBC Capital Markets Andrew Smith: +44 (0) 20 7029 7882; andrew.smith@rbccm.com Sarah Wharry: +44 (0)20 7653 4667; sarah.wharry@rbccm.com Copyright Business Wire 2008