U3O8 Expands Land Position In Argentina

TORONTO - U3O8 Corp. has signed a letter of intent with Pacific Bay Minerals Ltd. to acquire three mineral properties, which are contiguous with U3O8 Corp's Cerro Solo East concessions adjacent to the state-owned Cerro Solo uranium deposit in Chubut Province, Argentina.

"This transaction increases U3O8 Corp's strategic land position adjacent to one of Argentina's largest uranium resources - the State's 13 million pound Cerro Solo deposit," said Dr. Richard Spencer, President and CEO. "Our priority project in Argentina is still Laguna Salada, which is progressing towards our goal of doubling the current resource and completing a scoping study this year. The acquisition of key properties in the Cerro Solo district sets up the next target for exploration after Laguna Salada. Our analysis of fault patterns and trends in the sedimentary strata in the district suggest that the area to the east of Cerro Solo is particularly prospective for uranium; hence, our efforts to consolidate our land position there."

The terms of the property acquisition are: U3O8 Corp. will issue 1.5 million shares to Pacific Bay, which are subject to a 4-month hold period; U3O8 Corp. will pay $100,000 in cash to Pacific Bay; and Pacific Bay retains a 2% net smelter royalty on the properties vended to U3O8 Corp. U3O8 Corp. has the right to purchase the royalty at any time for $3 million.