U3O8 Corp. Announces $600,000 Non-Brokered Private Placement

TORONTO, Oct. 19, 2015 /CNW/ - U3O8 Corp. (TSX: UWE, OTCQX: UWEFF, SSE: UWECL) ("U3O8 Corp." or the "Company"), announces that it is undertaking a best efforts non-brokered private placement of up to 24,000,000 units ("Units") at a price of $0.025 per Unit, for gross proceeds of approximately $0.6 million (the "Offering"). Dr. Keith Barron, founder, major shareholder and director of the Company, will provide a lead order of $243,000. In addition, an affiliate of DSC Advisors, LP, plans to take up $150,000 of the Offering, and an affiliate of Extract Advisors LLC, a further $150,000.

Each Unit shall consist of one common share of U3O8 Corp. ("Share") and one Share purchase warrant ("Warrant").  Each Warrant shall entitle the holder to purchase one Share at an exercise price of $0.035 for a period of 36 months from the closing date.

The net proceeds will be used to fund ongoing work on advancing the Laguna Salada uranium-vanadium deposit in Argentina towards a pre-feasibility study. The Preliminary Economic Assessment ("PEA") completed in September 2014 showed that the economics of the project benefit from a larger resource, and a proportion of the funding is planned for further exploration of discoveries already made adjacent to Laguna Salada.  In addition, work is also planned for an initial pilot plant designed to provide more detail on costs associated with mining and processing of uranium-vanadium – bearing gravels from the project – and this data would be available for incorporation in a future pre-feasibility or full feasibility study. Funds would also be used to maintain the Berlin project in Colombia in good standing, and for general corporate purposes.

The securities issued and issuable pursuant to the Offering will be subject to a statutory 4-month hold period. The Offering is subject to a number of conditions, including, without limitation, receipt of all regulatory approvals.

Dr. Barron's participation in the offering constitutes a "related party transaction" as defined under Multilateral Instrument 61-101 ("MI 61-101"). Such participation is subject to approval of the directors who are independent of Dr. Barron, and is expected to be exempt from the valuation and minority approval requirements of MI 61-101, as the fair market value of the shares to be issued to Dr. Barron will not exceed 25% of the Company's market capitalization.

About U3O8 Corp.

U3O8 Corp. is an advanced exploration company focused on exploration and resource expansion of uranium and associated commodities in South America – a promising new frontier for uranium exploration and development. In just one year, U3O8 Corp.'s uranium resources have grown 7-fold with deposits now in Colombia, Argentina and Guyana comprising of:

• Laguna Salada Deposit, Argentina – a preliminary economic assessment ("PEA") shows this near surface, free-digging uranium-vanadium deposit is potentially amenable to low-cost mining and processing methods;
  
  
• Berlin Deposit, Colombia – a PEA shows that Berlin could be a potential low-cost uranium project thanks to revenue from by-products of phosphate, vanadium, nickel, rare earths (yttrium and neodymium) and other metals occurring in the same deposit; and
  
  
• Kurupung Deposit, Guyana – an initial uranium deposit in a large emerging uranium district.

Additional information on U3O8 Corp. and its mineral resources are available at www.u3o8corp.com.

Forward-Looking Statements

This news release includes certain "forward looking statements" with respect to the Offering, and the development plans, economic potential and growth targets of U3O8 Corp.'s projects. Forward-looking statements consist of statements that are not purely historical, including statements regarding beliefs, plans, expectations or intensions for the future, and include, but not limited to, statements with respect to: (a) the low-cost and near-term development of Laguna Salada, (b) the Laguna Salada and Berlin PEAs, (c) the potential of the Kurupung district in Guyana, (d) the waiver of future fees by the Company's directors, (e) completion, proceeds, and use of proceeds of the Offering, and participation of insiders therein, (f) the price and market for uranium, and (g) the participation in the Offering of certain subscribers. These statements are based on assumptions, including that: (i) actual results of our exploration, resource goals, metallurgical testing, economic studies and development activities will continue to be positive and proceed as planned, and assumptions in the Laguna Salada and Berlin PEAs prove to be accurate, (ii) a joint venture will be formed with the provincial petroleum and mining company on the Argentina project, (iii) requisite regulatory and governmental approvals will be received on a timely basis on terms acceptable to U3O8 Corp., (iv) economic, political and industry market conditions will be favourable, and (v) financial markets and the market for uranium will improve for junior resource companies in the short-term. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in such statements, including, but not limited to: (1) changes in general economic and financial market conditions, (2) changes in demand and prices for minerals, (3) the Company's ability to establish appropriate joint venture partnerships, (4) litigation, regulatory, and legislative developments, dependence on regulatory approvals, and changes in environmental compliance requirements, community support and the political and economic climate, (5) the inherent uncertainties and speculative nature associated with exploration results, resource estimates, potential resource growth, future metallurgical test results, changes in project parameters as plans evolve, (6) competitive developments, (7) availability of future financing, (8) exploration risks, and other factors beyond the control of U3O8 Corp. including those factors set out in the "Risk Factors" in our Annual Information Form available on SEDAR at www.sedar.com. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. U3O8 Corp. assumes no obligation to update such information, except as may be required by law. For more information on the above-noted PEAs, refer to the September 18, 2014 technical report titled "Preliminary Economic Assessment of the Laguna Salada Uranium-Vanadium Deposit, Chubut Province, Argentina" and the January 18, 2013 technical report titled "U3O8 Corp. Preliminary Economic Assessment on the Berlin Deposit, Colombia."

SOURCE U3O8 Corp.