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Last updated on April 16, 2014 at 8:06 EDT

Uranium Energy Corp to Acquire a Large Uranium Project in Paraguay

May 12, 2011
        --  In-situ recovery amenability indicated by Company's initial
            aquifer test;
        --  Historic mineralized trends established by Anschutz Corporation
            in 1980s;
        --  247,000-acre project holds large-scale potential with similar
            mineralization and geological setting as the Company's ISR
            projects in South Texas

NYSE Amex Equities Exchange Symbol – UEC

CORPUS CHRISTI, TX, May 12 /PRNewswire-FirstCall/ – Uranium Energy Corp (NYSE-AMEX: UEC,
the “Company”) is pleased to announce that, effective May 11, 2011, the
Company has entered into a Share Exchange Agreement (the “Agreement”)
with a Nevada company (the “Vendor”) whereby the Company is acquiring a
Paraguayan company which holds a 100% legal and beneficial interest in
two unencumbered prospecting permits covering 247,000 acres located in
the area of Coronel Oviedo, Paraguay (the “Property”), subject to a
gross overriding royalty.

The total purchase price for the Paraguayan company is the issuance of
225,000 restricted common shares in the capital of the Company.

The Company has also agreed to pay the Vendor a royalty interest in the
amount of one and one-half percent (1.5%) of the gross proceeds
received by the Company in connection with any uranium which is
produced and sold from mineral interests in the Property. The Company
also has the exclusive right and option at any time to acquire one-half
percent (0.5%) of the aggregate royalty interest for US$500,000. The
Vendor has granted the Company a right of first refusal to acquire all
or any portion of the remaining one percent (1.0%) royalty interest.

Amir Adnani, President and CEO, stated, “The Company’s primary focus
remains on our production and near-term  production projects in South
Texas.  At the same time, we are committed to identifying new and
potentially exceptional opportunities with scale in the United States
and abroad. The Coronel Oviedo Property is located in stable and
business-friendly Paraguay, is geologically very similar to the South
Texas uranium belt and is anticipated to be ISR-amenable as initially
indicated through our pump-test studies. This opportunity profile is an
excellent fit for our technical team who has a distinctive track record
of discovering and advancing sandstone-hosted uranium deposits. Share
dilution to acquire the project is far below 1%, and we plan to
commence exploration immediately.”

Prior Exploration

The Property, covering over  247,000 acres in central Paraguay, was
subject to extensive uranium exploration between 1976 and 1983 by
Anschutz Corporation of Denver, Colorado, and by Crescent Resources
Corp. between 2006 and 2008.  Most of the uranium occurrences in this
environment are “roll-front” type mineralization similar to deposits
currently being produced by low-cost in-situ recovery (ISR) methods in
Texas, the western United States, Central Asia and Australia. The work
by Anschutz and Crescent was centered on a large belt of
Permo-Carboniferous age continental sandstones that represent the
western flank of the Parana Basin. According to the Geological Survey
of Brazil or CPRM, these same sandstones within the Brazilian section
of the Parana Basin contain numerous uranium occurrences including the
Figueira Mine that hosted 19 million pounds of U3O8 according to
published government reports.

Between 1976 and 1983, Anschutz Corporation, with joint venture partners
Korea Electric Power and Taiwan Power Company, spent approximately
US$30 million evaluating an area covering over 6.2 million acres of
prospective ground in central and eastern Paraguay. This work consisted
of airborne radiometric and magnetic surveys, detailed geological
mapping, and ground geophysical and geochemical surveys, which narrowed
down the areas of interest.  This work was followed by regional-scale
drilling at initially 9-mile spacing, drilled across inferred host
trends.

Anschutz identified the Property as prospective towards the end of their
regional program.  In total, approximately 28 widely spaced drill holes
were drilled on the Property, and of these, 17 drill holes showed
significant uranium values, with the best being 6.2 feet of 0.153% U3O8
at a starting depth of 785 feet.  The drilling also identified three
mineralized fronts, and a 75 mile-long fault structure which appears to
have been the source of the gases that localized the concentration of
uranium, again very similar to a South Texas-type uranium depositional
model.

From 2006 to 2008, the Property was optioned to Crescent Resources. 
During this period, a total of 24 holes were drilled and logged in the
southern portion of the Property, offsetting mineralized holes drilled
by Anschutz.  According to Crescent’s 2008 NI 43-101 Technical Report,
of the 24 holes drilled, a total of 14 had a grade-thickness (GT)
product (in feet) equal to or greater than 0.30GT.  GT values equal to
and above 0.30 are typically considered producible under ISR production
methodology. The best hole reported by Crescent intersected 0.062% U3O8
over 13.5 feet. The Crescent and Anschutz drilling identified an
open-ended mineralization area characterized by tabular mineralization
similar to that found at the Company’s Goliad Project.  The known
uranium mineralization on the Property intersected by the past drilling
is at depths between 450 and 750 feet. Crescent dropped the option on
the Property in 2008.

Aquifer Test

During 2010, and prior to entering into the Agreement, the Company
conducted a 24-hour aquifer test in the area of the mineralization
trend identified by the combined Anschutz-Crescent drilling programs. 
The test, performed by HydroSolutions based in Denver, Colorado, was
designed to assess aquifer properties of the Fine Grained Sand Unit
(FGSU), a uranium-bearing sandstone within the San Miguel Formation.
The focus of the test was to determine if the aquifer could sustain
extraction rates typical of ISR mining of uranium.

Results of the test indicate that the uranium-bearing unit has aquifer
characteristics that would support operational rates for ISR mining.
There is sufficient hydraulic head and aquifer transmissivity that
would allow individual wells to be pumped at rates of up to 45
gallons/min for sustained intervals. The aquifer properties determined
from the hydrologic test fall within the range of values determined at
other uranium ISR projects located in Wyoming, Texas and Nebraska.
Production rates from wells in these areas are typically in the range
of 10 to 50 gallons/min.

The Company is currently evaluating all available technical data in
preparation for an exploration program to commence very soon.

Advisory Board for the Paraguay Project

As a key factor in the Property acquisition, the Company has now added
two uranium industry veterans, Dr. Bernie D. Schmeling and Carlos
Figueredo, to a special advisory board focusing on Paraguay to bolster
its management capabilities in Latin America.

Dr. Schmeling, currently Chief Operating Officer of Semin S.A., is a
professional geophysicist and has more than 35 years of experience in
exploration programs worldwide and mining projects for uranium and
other commodities.  Previously, he was a member of the original Uranerz
team as a senior and chief geophysicist for 19 years. During this
period, he was closely involved, starting in 1975, with the discovery
and development of the major uranium deposit at Key Lake in
Saskatchewan, Canada. For 13 years, he managed all geophysical programs
as well as all contracted work including all drill hole data
evaluations and U3O8-grade calculations. This work included studies of
radiometric disequilibrium factors and density determinations for the
U3O8 resource calculations at diverse sandstone deposits in Texas,
Wyoming, Nebraska, Colorado and other states. Since 2006, he has been
fully involved in the exploration and development activities of Semin
S.A. in Paraguay and other South American countries. Dr. Schmeling is
recognized internationally as one of the few leading experts in uranium
exploration including ISR exploration.

Carlos Figueredo has 25 years of experience in mineral and oil
exploration in Paraguay as Chief Geologist and Assistant Mineral
Exploration Manager of Semin S.A. He formerly worked for Anschutz
Corporation during its initial exploration efforts in Paraguay.  He
played a pivotal role in the development of the Coronel Oviedo project,
as well as discoveries of other commodities in eastern Paraguay.

The technical information in this news release was prepared in
accordance with the Canadian regulatory requirements set out in
National Instrument 43-101 and reviewed by Clyde L. Yancey, P.G., Vice
President of Exploration for Uranium Energy Corp, a qualified person
under NI 43-101

About Uranium Energy Corp

Uranium Energy Corp is a U.S.-based uranium production, development and
exploration company operating North America’s newest emerging uranium
mine. The Company’s fully licensed and permitted Hobson processing
facility is central to all of its projects in South Texas, including
the Palangana in-situ recovery project, which is ramping up initial
production, and the Goliad in-situ recovery project which is in the
final stages of mine permitting for production.  The Company’s
operations are managed by professionals with a recognized profile for
excellence in their industry, a profile based on many decades of
hands-on experience in the key facets of uranium exploration,
development and mining.

Stock Exchange Information:
NYSE-AMEX: UEC
Frankfurt Stock Exchange Symbol: U6Z
WKN: AØJDRR
ISN: US916896103

Safe Harbor Statement

Except for the statements of historical fact contained herein, the
information presented in this news release constitutes “forward-looking
statements” as such term is used in applicable United States and
Canadian laws. These statements relate to analyses and other
information that are based on forecasts of future results, estimates of
amounts not yet determinable and assumptions of management. Any other
statements that express or involve discussions with respect to
predictions, expectations, beliefs, plans, projections, objectives,
assumptions or future events or performance (often, but not always,
using words or phrases such as “expects” or “does not expect”, “is
expected”, “anticipates” or “does not anticipate”, “plans, “estimates”
or “intends”, or stating that certain actions, events or results “may”,
“could”, “would”, “might” or “will” be taken, occur or be achieved) are
not statements of historical fact and should be viewed as
“forward-looking statements”. Such forward looking statements involve
known and unknown risks, uncertainties and other factors which may
cause the actual results, performance or achievements of the Company to
be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements.
Such risks and other factors include, among others, the actual results
of exploration activities, variations in the underlying assumptions
associated with the estimation or realization of mineral resources, the
availability of capital to fund programs and the resulting dilution
caused by the raising of capital through the sale of shares, accidents,
labor disputes and other risks of the mining industry including,
without limitation, those associated with the environment, delays in
obtaining governmental approvals, permits or financing or in the
completion of development or construction activities, title disputes or
claims limitations on insurance coverage. Although the Company has
attempted to identify important factors that could cause actual
actions, events or results to differ materially from those described in
forward-looking statements, there may be other factors that cause
actions, events or results not to be as anticipated, estimated or
intended. There can be no assurance that such statements will prove to
be accurate as actual results and future events could differ materially
from those anticipated in such statements. Accordingly, readers should
not place undue reliance on forward-looking statements contained in
this news release and in any document referred to in this news release.

Certain matters discussed in this news release and oral statements made
from time to time by representatives of the Company may constitute
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995 and the Federal securities laws. Although
the Company believes that the expectations reflected in such
forward-looking statements are based upon reasonable assumptions, it
can give no assurance that its expectations will be achieved. 
Forward-looking information is subject to certain risks, trends and
uncertainties that could cause actual results to differ materially from
those projected. Many of these factors are beyond the Company’s ability
to control or predict. Important factors that may cause actual results
to differ materially and that could impact the Company and the
statements contained in this news release can be found in the Company’s
filings with the Securities and Exchange Commission. For
forward-looking statements in this news release, the Company claims the
protection of the safe harbor for forward-looking statements contained
in the Private Securities Litigation Reform Act of 1995. The Company
assumes no obligation to update or supplement any forward-looking
statements whether as a result of news information, future events or
otherwise.  This press release shall not constitute an offer to sell or
the solicitation of an offer to buy securities. 

Important Additional Information Will Be Filed With the SEC

In connection with the previously announced proposed merger (the
“Merger”) between the Company and Concentric Energy Corp.
(“Concentric”), the Company intends to file relevant materials with the
United States Securities and Exchange Commission (the “SEC”), including
a registration statement on Form S-4 (the “Registration Statement”),
which will include a preliminary prospectus and related materials to
register the securities of the Company to be issued in exchange for
securities of Concentric. The Registration Statement will incorporate a
proxy statement (the “Proxy Statement”) that Concentric plans to file
with the SEC and mail to its stockholders in connection with obtaining
stockholder approval of the Merger. The Registration Statement and the
Proxy Statement will contain important information about the Company,
Concentric, the Merger and related matters. Investors and security
holders are urged to read the Registration Statement and the Proxy
Statement carefully when they are available. Investors and security
holders will be able to obtain free copies of the Registration
Statement and the Proxy Statement when they become available, and other
documents filed with the SEC by the Company and Concentric, through the
web site maintained by the SEC at www.sec.gov. Documents filed by the
Company with the SEC may be obtained free of charge by contacting the
Company at: Uranium Energy Corp.; attention: Mr. Mark Katsumata, CFO;
500 North Shoreline, Suite 800N, Corpus Christi, Texas, 78401; Tel:
(866) 748-1030

Concentric, and its directors and executive officers, may be deemed to
be participants in the solicitation of proxies from Concentric’s
stockholders in connection with the Merger. Information regarding any
special interests of these directors and executive officers in the
Merger will be included in the Proxy Statement. 

SOURCE Uranium Energy Corp


Source: newswire