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ATHABASCA URANIUM ACQUIRES STRATEGIC EAST KEY LAKE OPTION

February 8, 2011

               TSXV: UAX
US Symbol:  ATURF

VANCOUVER, Feb. 8 /PRNewswire-FirstCall/ – Athabasca Uranium Inc. (“Athabasca” or the
“Company”) is pleased to announce that it has entered into an agreement
with an arm’s-length vendor by which the Company has the option to earn
a 100% interest in the East Key Lake Property in northeast
Saskatchewan.  

The 749-hectare East Key Lake Property is located on the eastern margin
of the uranium-rich Athabasca Basin, the most productive
uranium-producing region in the world. The Property is adjacent to
Hathor Exploration’s Russell South Project and Triex Minerals’ Highrock
Project, and is approximately 15 kilometers from Cameco’s Key Lake
Mine, which has historic production of over 200 million pounds of
uranium and is currently processing ore from the McArthur River Mine.

The Company can earn a 100% interest in the Property by paying $40,000
and issuing 1,000,000 common shares to the Vendor, by making additional
payments totalling $750,000 over the next 42 months and by filing
$3,000,000 in exploration expenditures on the Property within four
years.  A 1% net smelter return royalty has also been granted to the
Vendor, which may be purchased by the Company for $1,500,000.  The
Agreement is subject to regulatory approval. 

The East Key Lake Property is the first of three strategic acquisitions
in the Athabasca Basin on which the Company has an exclusive right of
first offer, as announced January 20, 2011.  “East Key Lake is a
strategic addition to our property portfolio. The Key Lake Mine and its
history of production are legendary – that, combined with the data
acquired through our current heli-borne Z-TEM survey of the area,
presented us with a compelling prospect,” commented Gil Schneider,
Athabasca President & CEO.  “We look forward to advancing this Project
through our 2011 exploration program.”

Preliminary results from the Company’s Z-TEM survey have shown excellent
correlation with the Saskatchewan government’s EXTECH IV regional
Mag/EM survey conducted in 2004.  An examination of total magnetic
intensity (TMI) revealed a roughly northeast-trending magnetic feature,
interpreted as an archean granitic fold or body.  In addition,
electromagnetic (EM) data revealed a significant conductive anomaly
coincident with a magnetic low, just west of the magnetic high.  This
conductive region has been preliminarily evaluated as a high priority
target zone at East Key Lake.  Uranium-rich mineralization at the Key
Lake, Collins Bay and McClean mines were all discovered at or near
conductive sandstone layers at the transition between sandstone and
granitic zones, presumably because these are regions of faulting
through which mineralizing fluids have entered the Basin. 

The Z-TEM survey, which is now at 73% completion, should be completed in
the near term – upon completion, all Z-TEM data will be processed and
correlated with existing data, including a 2006 GEOTEM survey conducted
by International Uranium Corp.  Ground surveying is slated to begin
within a few weeks on several of the Company’s projects, including East
Key Lake.  Drilling is likely to follow soon thereafter.

Investor Relations Appointment

The Company is also pleased to announce that it has appointed Skyblue
Relations as its investor relations service provider.  Skyblue is
headed by Todd Hanas, who has been providing investor relations to
public companies and been involved in the resource industry for the
past fifteen years. Skyblue will be responsible for daily interaction
with investors and shareholders, marketing the company to both retail
and institutional investors, as well as making introductions to
industry analysts and the media. The Company has entered into an
investor relations agreement with Skyblue for a term of one year,
paying a fee of $7,500 per month.  The Agreement is subject to the
approval of the TSX Venture Exchange.

About Athabasca Uranium

Athabasca Uranium Inc. is a junior uranium exploration and development
company trading on the TSX Venture Exchange under the symbol UAX. The
Company’s stated vision is to acquire and explore prospective
properties located in the uranium-rich Athabasca Basin in northeast
Saskatchewan, utilizing leading-edge technologies to become a
world-class uranium mining company. 

Additional information on Athabasca Uranium, its properties and
exploration activities is available at the Company’s website: www.athabascauranium.com.

ON BEHALF OF THE BOARD OF DIRECTORS

   “Gil Schneider”

Gil Schneider, President & CEO

Neither the TSX Venture Exchange nor its Regulations Services Provider
(as that term is defined in policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.

SOURCE Athabasca Uranium Inc.


Source: newswire



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