DGAP-News: Uranium Energy Corp Acquiring Major Additional Section of Coronel Oviedo Uranium District in Paraguay

ID: 1051437
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(businesspress24) - DGAP-News: Uranium Energy Corp. / Key word(s): Miscellaneous
Uranium Energy Corp Acquiring Major Additional Section of Coronel
Oviedo Uranium District in Paraguay

31.10.2011 / 14:15

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Uranium Energy Corp Acquiring Major Additional Section of Coronel Oviedo
Uranium District in Paraguay

- Company to control 987,000 acres of highly prospective uranium-bearing
region with similar geology to South Texas Uranium Belt

- Previously announced 10,000-meter drilling program has now commenced on
portion of district acquired earlier this year

Corpus Christi, TX - October 31, 2011 -- Uranium Energy Corp (NYSE-AMEX:
UEC, the 'Company') is pleased to announce that, effective on October 25,
2011, the Company has entered into a Property Purchase Agreement (the
'Purchase Agreement') with three Paraguayan companies (collectively, the
'Vendors') pursuant to which the Company's Paraguayan subsidiary proposes
to acquire, subject to a gross overriding royalty, a 100% legal and
beneficial interest in and to a total of six unencumbered prospecting
permits covering approximately 740,000 acres which are located in the area
of Coronel Oviedo, Paraguay (collectively, the 'Property'; and in the
aggregate the 'Acquisition').

The Property interests being acquired are contiguous on the northwest, west
and east of the Company's 247,000-acre Coronel Oviedo Project in central
Paraguay, which was acquired as announced in May this year. This proposed
acquisition increases the Company's total land package held in Paraguay to
987,000 acres.

The Purchase Agreement is subject to normal conditions precedent to closing
which include, without limitation, prior satisfactory due diligence and
approvals by MOPC, the ministry in Paraguay with jurisdiction over mining,


and NYSE Amex. The total purchase price for the Property interests is the
issuance of 100,000 restricted common shares in the capital of the Company
and cash payment of $7,500.

The Company has also agreed to provide the Vendors with a royalty interest
in the amount of one and one-half percent (1.5%) of the gross proceeds
received by the Company in connection with any uranium which is produced
and sold from any of the mineral interests in the Property. The Company
also has the exclusive right and option at any time to acquire one-half
percent (0.5%) of the aggregate royalty interest for $500,000 and, in
addition, the Vendors have granted the Company a right of first refusal to
acquire all or any portion of the remaining one percent (1.0%) royalty
interest.

The area being acquired received reconnaissance exploration by Anschutz
Corporation from 1976 to 1983. This work included an airborne radiometric
and magnetic survey, detailed Track Etch surveys, geochemical stream
sediment and soil sampling, and drilling. A total of 18 wide-spaced holes
were drilled on this new property by Anschutz with eight showing uranium
mineralization. The area has also been covered by the Company's recently
completed carborne radiometric survey, which outlined several promising
drilling target areas. All of this historical and recent data has been
compiled by Company geologists, and, upon completion of the acquisition,
will be incorporated into the ongoing 10,000-meter drilling program.

Drilling commenced on the fully-controlled portion of the project area on
October 1 this year. Prior to and concurrent with the initiation of the
drilling program, a detailed regional structural analysis and a carborne
radiometric/spectrographic survey were completed across the Project under
the direction of Dr. Bernie Schmeling, professional geophysicist and a
member of the Company's advisory board for Paraguay. These surveys, coupled
with the historical data, have aided in the initial exploratory hole
placement. These holes are being drilled on east-west oriented 'fences,'
with spacings between holes ranging from one-half to one kilometer.
Initially, four east-west fences are planned, with several kilometers
between fences. The drilling program is anticipated to extend into the
first quarter of 2012.

The technical information in this news release was prepared in accordance
with the Canadian regulatory requirements set out in National Instrument
43-101 and reviewed by Clyde L. Yancey, P.G., Vice President of Exploration
for Uranium Energy Corp, a qualified person under NI 43-101.

Contact North America: Investor Relations, Uranium Energy Corp:
Toll Free: (866) 748-1030
Fax: (361) 888-5041
E-mail: info(at)uraniumenergy.com

Stock Exchange Information:
NYSE-AMEX: UEC
Frankfurt Stock Exchange Symbol: U6Z
WKN: AØJDRR
ISN: US916896103

Notice to U.S. Investors

The mineral resources referred to herein have been estimated in accordance
with the definition standards on mineral resources of the Canadian
Institute of Mining, Metallurgy and Petroleum referred to in NI 43-101 and
are not compliant with U.S. Securities and Exchange Commission (the 'SEC')
Industry Guide 7 guidelines. In addition, measured mineral resources,
indicated mineral resources and inferred mineral resources, while
recognized and required by Canadian regulations, are not defined terms
under SEC Industry Guide 7 and are normally not permitted to be used in
reports and registration statements filed with the SEC. Accordingly, we
have not reported them in the United States. Investors are cautioned not to
assume that any part or all of the mineral resources in these categories
will ever be converted into mineral reserves. These terms have a great
amount of uncertainty as to their existence, and great uncertainty as to
their economic and legal feasibility. In particular, it should be noted
that mineral resources which are not mineral reserves do not have
demonstrated economic viability. It cannot be assumed that all or any part
of measured mineral resources, indicated mineral resources or inferred
mineral resources will ever be upgraded to a higher category. In
accordance with Canadian rules, estimates of inferred mineral resources
cannot form the basis of feasibility or other economic studies. Investors
are cautioned not to assume that any part of the reported measured mineral
resources, indicated mineral resources or inferred mineral resources
referred to in this news release are economically or legally mineable.

Under NI 43-101 an issuer may disclose an estimate of the quantity and
grade of a historical mineral resource made before the instrument came into
force if the estimate is an estimate of mineral resources prepared by or on
behalf of a person or company other than the issuer and the disclosure
identifies the source and date of the historical estimate, confirms that
the historical estimate is relevant, comments on its reliability, and
explains any differences between the categories used in the historical
resource and those permitted by NI 43-101. Any such resources are
historical in nature and were compiled before the implementation of NI
43-101 reporting standards, and the Company may not have independently
verified any such resource so is not treating them as current resources.
Any such historical resources were prepared to industry standards in place
at the time and are considered relevant today. Any such estimate, although
prepared by experienced personnel and considered relevant should not be
relied on.

Safe Harbor Statement

Except for the statements of historical fact contained herein, the
information presented in this news release constitutes 'forward-looking
statements' as such term is used in applicable United States and Canadian
laws. These statements relate to analyses and other information that are
based on forecasts of future results, estimates of amounts not yet
determinable and assumptions of management. Any other statements that
express or involve discussions with respect to predictions, expectations,
beliefs, plans, projections, objectives, assumptions or future events or
performance (often, but not always, using words or phrases such as
'expects' or 'does not expect', 'is expected', 'anticipates' or 'does not
anticipate', 'plans, 'estimates' or 'intends', or stating that certain
actions, events or results 'may', 'could', 'would', 'might' or 'will' be
taken, occur or be achieved) are not statements of historical fact and
should be viewed as 'forward-looking statements'. Such forward looking
statements involve known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements of the
Company to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements. Such
risks and other factors include, among others, the actual results of
exploration activities, variations in the underlying assumptions associated
with the estimation or realization of mineral resources, the availability
of capital to fund programs and the resulting dilution caused by the
raising of capital through the sale of shares, accidents, labor disputes
and other risks of the mining industry including, without limitation, those
associated with the environment, delays in obtaining governmental
approvals, permits or financing or in the completion of development or
construction activities, title disputes or claims limitations on insurance
coverage. Although the Company has attempted to identify important factors
that could cause actual actions, events or results to differ materially
from those described in forward-looking statements, there may be other
factors that cause actions, events or results not to be as anticipated,
estimated or intended. There can be no assurance that such statements will
prove to be accurate as actual results and future events could differ
materially from those anticipated in such statements. Accordingly, readers
should not place undue reliance on forward-looking statements contained in
this news release and in any document referred to in this news release.

Certain matters discussed in this news release and oral statements made
from time to time by representatives of the Company may constitute
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995 and the Federal securities laws. Although the
Company believes that the expectations reflected in such forward-looking
statements are based upon reasonable assumptions, it can give no assurance
that its expectations will be achieved. Forward-looking information is
subject to certain risks, trends and uncertainties that could cause actual
results to differ materially from those projected. Many of these factors
are beyond the Company's ability to control or predict. Important factors
that may cause actual results to differ materially and that could impact
the Company and the statements contained in this news release can be found
in the Company's filings with the Securities and Exchange Commission. For
forward-looking statements in this news release, the Company claims the
protection of the safe harbor for forward-looking statements contained in
the Private Securities Litigation Reform Act of 1995. The Company assumes
no obligation to update or supplement any forward-looking statements
whether as a result of new information, future events or otherwise. This
press release shall not constitute an offer to sell or the solicitation of
an offer to buy securities.


End of Corporate News

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31.10.2011 Dissemination of a Corporate News, transmitted by DGAP - a
company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

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Date: 10/31/2011 - 09:15
Language: English
News-ID 1051437
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