Completion Of The Winter Drill Program At Hook Lake Joint Venture

TORONTO - Purepoint Uranium Group Inc. announced the completion of its winter drill program at the Hook Lake Joint Venture at the Carter Corridor. The Hook Lake Project is a joint venture between Cameco Corporation (39.5%), Orano Canada Inc. (39.5%), and Purepoint (21%) and lies on trend with high-grade uranium discoveries.

”As this was our first pass drilling of the Carter Corridor, the main conductive trend was tested using 800 meter step-outs towards the north in order to identify the most prospective geology," said Scott Frostad, Vice President Exploration. "Our team was thrilled when the fifth hole of the program, CRT23-05, encountered elevated radioactivity associated with graphitic shearing and intense clay alteration. The downhole gamma results are the highest counts-per-second we've seen outside of our Spitfire discovery."

Drill hole CRT23-05 targeted a Stepwise Moving Loop Electromagnetic conductor and encountered the unconformity at a depth of 280m. The hole intersected a sheared/faulted chlorite-altered, graphitic diorite gneiss over 15 meters before encountering 5 meters of intense clay alteration. The graphitic shear featured elevated radioactivity, including 3,950 cps over 0.9m from 318.9 to 319.8m and 1,660 cps over 2.2m from 330.5 to 332.7m from the downhole probe. The handheld spectrometer showed the radioactivity to be almost totally sourced from uranium.

Drill hole CRT23-06 was collared on the same pad as CRT23-05 using a similar dip of -60 but with the azimuth swung 34 degrees toward the south. The target represents a 100-meter step out from the CRT23-05 graphitic shear zone intercept. The hole intersected a 35 m sheared/faulted graphitic diorite gneiss interval from 309m to 344m before being completed at 404 m. The handheld spectrometer showed the radioactivity from CRT23-06 to be primarily related to thorium, suggesting that follow-up drilling should test the area north of CRT23-05.

A Mount Sopris 2PGA-1000 downhole total gamma probe was utilized for radiometric surveying. The total gamma results provided in Table 1 were selected using a cutoff of 500 cps over a 0.3 meter width. Core sampling is facilitated using a RS-125 Handheld Gamma-Ray Spectrometer that provides a readout of equivalent %K, ppm of U and Th. All drill intercepts are core width and true thickness is yet to be determined.