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Urex Energy Moves Forward With Preparations for Drill Testing of Uranium Properties in New Mexico and Argentina

Posted on: Thursday, 19 October 2006, 18:01 CDT

Urex Energy Corporation (the "Company" or "Urex") (OTCBB:URXE) announced that it has moved forward with preparations for drill testing of its uranium properties in New Mexico and Argentina. The Company estimates that drill test programs at its La Jara Mesa Extension Project and its Rio Chubut Project will commence in early to mid-November as permit approvals are obtained.

Urex has acquired a 100% interest in the La Jara Mesa Uranium Project which straddles the La Jara Mesa and Melrich uranium deposits in the Grants Mining Belt of New Mexico. The Grants Mining Belt is the most prolific uranium-producing district in the United States. Forging ahead with its drill testing program at the site, Urex has filed an application with the Mining and Minerals Division of the New Mexico - Energy Minerals and Natural Resources Department for a Minimal Impact Uranium Exploration Permit. The Company has proposed to drill 21 exploration holes to test the Brushy Basin Member of the Jurassic Morrison Formation which hosts uranium mineralization in the area and to test potential permissive stratigraphic horizons below the Brushy Basin Member for uranium content. Stewart Drilling of Milan, New Mexico will conduct the test program as lead contractor.

Urex has also moved ahead with drilling plans in Argentina. The Company owns a 98.8% interest in the Rio Chubut property which borders the 10 million pound Cerro Solo Uranium Deposit in Southern Argentina. A seismic refraction geophysical survey over the Company's Cerro Solo claim block will be conducted by Geophysical Exploration & Consulting S.A. in order to pinpoint possible uranium mineralization. Urex will use Patagonia Drilling S.A. to drill approximately 30 holes as part of its first phase drilling program.

Urex is actively engaged in the acquisition and exploration of uranium mining properties to meet the growing demand for uranium for nuclear power generation. Rising energy demand, significant increases in the cost of producing electricity due to escalating oil, coal, and natural gas prices, and concerns regarding global warming and energy supply security have led many governments to explore expanding (or in some cases starting) nuclear power generation programs.

According to the World Nuclear Association, as of August 2005, there were a total of 440 operable commercial nuclear power plants around the world supplying approximately 16% of the world's power requirements with an aggregate installed generating capacity of 367,684 megawatts requiring 178 million pounds of uranium per year. Today there are 27 new reactors under construction in eleven countries. Uranium demand and prices are reaching record levels.

About Urex Energy Corporation

Urex Energy Corp. is focused on actively exploring and developing uranium properties in Argentina and New Mexico. Urex owns a 99.8% interest in the Rio Chubut property comprised of 170,000 hectares of land which is adjacent to the Cerro Solo Uranium deposit located in Chubut Province within Patagonia of southern Argentina. The Cerro Solo exploration block is approximately 20 km x 50 km, and borders the Cerro Solo Uranium deposit to both the North and the South.

Urex also owns a 100% interest in the La Jara Mesa Extension uranium property consisting of 137 unpatented mining claims in the Grants Mining District, Cibola County, New Mexico. The La Jara Mesa Extension property lies adjacent to Laramide Resources Ltd.'s La Jara Mesa and Melrich uranium deposits. Between 1950 and 1978 the Grants Mining District produced 270 million pound of uranium oxide which ranks it as the most prolific uranium district in the United States.

Notice Regarding Forward Looking Statements

This news release contains "forward-looking statements", as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future, including any statements that Urex may or will discover uranium deposits through its exploration activities. Actual results relating to, among other things, reserves, results of exploration, capital costs, drilling programs and mine production costs could differ materially from those currently anticipated in such forward-looking statements. Factors affecting forward-looking statements include: the speculative nature of mining exploration and development activities; changes in ore reserve estimates; the productivity of Urex's mining properties; changes in the operating costs; changes in economic conditions and conditions in the precious metals, especially uranium, changes in the demand for precious metals, including uranium, foreign exchange and other financial markets; changes in the prices for uranium, precious metals or other minerals Urex develops or produces; changes in investment and exploration expenditure levels; litigation; legislation; environmental, judicial, regulatory, political and competitive developments in areas in which Urex operates; technological, mechanical and operational difficulties encountered in connection with Urex's mining activities; and labour relation matters and costs. You should refer to the risk disclosures set out in Urex's periodic reports filed from time-to-time with the Securities and Exchange Commission and available at www.sec.gov.

Source: Business Wire

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