November 20, 2010

Uranium Energy Corp Launches First New ISR Uranium Mine in U.S. in 5 years

Published on Saturday Nov 20 2010

Palangana is the first new ISR uranium mine to achieve production in the U.S. in over 5 years.

Uranium Energy Corp is pleased to announce that the Company has started uranium production using in-situ recovery (ISR) methods at the Palangana Project in South Texas.

Phase I of three separate development phases of the wellfield at Production Area 1 (PAA-1) is 100% complete, with more than 45 injection wells and production wells drilled, cased and tested. The Company is very pleased with the water volume that each well has yielded during the testing phase. Now, gaseous oxygen and carbon dioxide are being added to the circulating ground water, which has activated the mining process of dissolving the uranium from surrounding sandstones.

Amir Adnani, President and CEO, stated, "We are exceedingly proud that Palangana is the first new ISR uranium mine to achieve production in the U.S. in over 5 years. Kudos are due to our many professionals who have been working very hard to reach this important milestone. Palangana is one of the Company's four projects in South Texas. This initial production is really just the first step in the Company's regional strategy of greatly expanding resources and production in the re-emerging South Texas Uranium Belt, with the next project, the nearby Goliad ISR project, anticipated to join Palangana as a producing asset next year."

Harry Anthony, Chief Operating Officer, added, "The next milestone will be the start of regular deliveries of uranium-loaded resin beads to our Hobson processing plant, scheduled to commence before month-end. Shortly thereafter, we will be marketing and delivering yellowcake, the Company's valuable final product. Hobson is a newly refurbished, state-of-the-art processing plant, and anchors the Company's South Texas regional strategy with up to 3.0 million pounds of annual capacity."

Phase 1 of the PAA-1 wellfield is in operation with 30 injection wells and 15 production wells on-line, with each being brought gradually up to maximum flow rates of approximately 50 gallons per minute.

Phases II and III of the PAA-1 wellfield each will contain 45 production and injection wells. All Phase II wells have been completed, and are targeted to commence mining in the first quarter of 2011. Installation of Phase III wells is underway with three rigs actively casing and then completing each well. The Company is scheduling these wells to come on-line and to start production during the second quarter of 2011. The average depth of wells throughout the PAA-1 wellfield is 450 feet.

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