March 24, 2011


VANCOUVER, March 24 /PRNewswire/ – Athabasca Uranium Inc. (“Athabasca” or the
“Company”) is pleased to announce preliminary results of its 3,246 line
kilometer heliborne Z-TEM (Z-Axis Tipper EM) survey of the East Key
Lake, McGregor Lake, Webb River and McCarthy Lake uranium projects,
located on the southeastern margin of the Athabasca Basin,

Z-TEM is effective at identifying discrete vertical conductive anomalies
as well as features at the unconformity and basement. In general,
conductive anomalies existing within magnetic discontinuities may
represent primary exploration indicators for altered sandstones and
mineralized zones. In the Athabasca Basin, the vast majority of uranium
mines and exploration deposits – including Denison’s Wheeler River
Project, Fission’s Waterbury Lake Project, Hathor’s Roughrider Zone and
JNR/Denison’s Moore Lake Project – are associated with subsurface
graphitic conductors.

Multiple, highly prospective targets were successfully identified
through the Z-TEM survey as follows:

McCarthy Lake (50% Interest)

Two significant conductive zones were identified in the Z-TEM survey,
confirming and augmenting the results of the Tempest Mag/EM survey
flown in 2007.  Conductor A appears to be a two-lobed structure,
roughly 5km in length, originating in the southeast and striking
northwest. This target, which exists within a magnetic low, persists
through all channels of the Tempest survey and appears to extend to the
unconformity, and possibly into the basement.  Conductor B is
approximately 6 kilometres in length in the northwestern quadrant of
the McCarthy Property. The target has a northeastern strike and again
lies within a magnetic low. In addition, a prominent northwest magnetic
feature, interpreted as a 10 kilometer fault, appears to cut across
Conductor A and B.

Webb River (100% Interest)

Results of the Z-TEM strongly correlate with Saskatchewan government’s
EXTECH IV regional Mag/EM survey conducted in 2004. The center of the
property, which has a relatively low magnetic response, appears to be
strongly dilated to the northeast.  An array of northeasterly trending
conductors was also identified by the Z-TEM, correlating strongly with
airborne and ground VLF-EM and magnetometer surveys carried out by
Sander Geophysics and Phantom Exploration Services in 1979-1980.
Strongly magnetic features appear to be acting as controls for the
northeasterly trending conductors.  Refinement of the Z-TEM data is
expected to produce viable exploration targets within the conductive

McGregor Lake (100% Interest)

Results of the Z-TEM correlate strongly with a 2006 GEOTEM survey
commissioned by IUC.  In general, the southern extent of this 18,699ha
project is dominated by a strongly magnetic northeasterly striking
feature.  In the north, several conductors, each several kilometers in
length, were identified. Conductor E lies at the northern edge of a
magnetic feature and its northwesterly strike crosscuts the
predominantly northeasterly magnetic features.  Two conductors, F and
G, correspond to the southern extent of the Moore Lake Complex. Several
other conductive anomalies also were noted.

East Key Lake (100% Interest)

Z-TEM data shows 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

The Company is currently refining the Z-TEM dataset and results which
will be crucial in prioritizing the projects for ground surveying.
Final interpretation is expected over the next thirty days. Athabasca’s
VP Exploration Dr. Peter Born, P.Geo, commented: “The quality of
anomalies will be assessed and then prioritized to establish areas for
subsequent ground surveys and drilling”.

Dr. Peter Born, P.Geo, is responsible for the technical content in this

About Athabasca Uranium

Athabasca Uranium Inc. is a uranium exploration and development company
using leading-edge technology to explore an aggregate of over 80,000
acres strategically located in the uranium-rich Athabasca Basin region
of northeast Saskatchewan.  Additional information on Athabasca Uranium
and its exploration projects is available on the Company’s website at www.athabascauranium.com.


   “Gil Schneider”

Gil Schneider, President & CEO

Some of the statements contained in this press release are
forward-looking statements and information within the meaning of
applicable securities laws. Forward-looking statements and information
can be identified by the use of words such as “expects”, “intends”, “is
expected”, “potential”, “suggests” or variations of such words or
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SOURCE Athabasca Uranium Inc.

Source: newswire

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