U3O8 Corp. Confirms That Uranium Mineralization Extends 900m Along the Aricheng West Corridor in the Kurupung Project, Guyana Infill Drilling to Commence Towards Increasing the NI 43-101 Resource

TORONTO, ONTARIO -- (Marketwire) -- 01/20/11 -- U3O8 Corp. (TSX VENTURE: UWE), a Canadian-based company, focused on exploration and resource expansion of uranium and associated commodities in South America, reports drill results that extend uranium mineralization to 900 metres ('m') in length along the Aricheng West structural corridor in the Kurupung Batholith in Guyana (Figure 1). Scout drilling shows that the Aricheng West area is one of nine consistently mineralized zones identified to date in the Kurupung uranium system. Mineralization remains open at depth and along strike on all structures. Aricheng West is scheduled to be the first of three uranium-bearing structures to undergo infill drilling, starting in March, towards the goal of increasing the current National Instrument 43-101 ('NI 43-101') resource estimate to 20 to 25 million pounds ('mlb')(1) on the Kurupung Project by the end of 2011.

'U3O8 Corp's scout drilling shows that the Kurupung is emerging as a large uranium system that could be of comparable size to peer deposits that typically contain 60 to 130mlb of uranium(2),' said Dr. Richard Spencer, U3O8 Corp's President and CEO. 'Concurrent with the scout drilling, infill drilling is planned to begin in the Kurupung as we aim to rapidly increase our NI 43-101 resource portfolio across our projects in Guyana, Colombia and Argentina in 2011.'

Table 1 - Assay Results for Aricheng West Structure

Summary of the principal mineralized intercepts cut in five bore holes (1,546m) completed in scout drilling on the extremities of the Aricheng West structure.

----------------------------------------------------------------------------
Bore Hole
 Number                       Intercept                         Grade
             ---------------------------------------------------------------
                                          Estimated True                U3O8
             From (m) To (m) Interval (m)  Thickness (m)  U3O8 (%)   (lb/st)
----------------------------------------------------------------------------
ARW-031            98    106            8            6.6     0.053       1.1
----------------------------------------------------------------------------
ARW-032            80     86            6            4.9     0.034       0.7
----------------------------------------------------------------------------
ARW-033            51     54            3            1.7     0.100       2.0
----------------------------------------------------------------------------
ARW-034           153    163           10            9.7     0.045       0.9
             ---------------------------------------------------------------
                  239    281           42           24.1     0.046       0.9
----------------------------------------------------------------------------
ARW-035           123    130            7            6.8     0.075       1.5
             ---------------------------------------------------------------
                  320    323            3            1.7     0.066       1.3
             ---------------------------------------------------------------
                  325    328            3            1.7     0.054       1.1
             ---------------------------------------------------------------
                  332    335            3            1.7     0.051       1.0
----------------------------------------------------------------------------

Note: lb/st is an abbreviation for pounds per short ton. 1 short ton = 2,000lbs or 0.907 metric tonnes.

Potential quantity and grade are based on drill results that define the approximate length, thickness, depth and grade of the target area, but are considered conceptual in nature. To date, there has been insufficient exploration to define a mineral resource at Aricheng West, and it is uncertain if further exploration will result in a mineral resource being defined in this area.

Aricheng West Structural Corridor

Scout drilling confirms that the two uranium-bearing structures, Aricheng West and Aricheng Epsilon, merge to form a mineralized corridor that is 900m in length (Figure 2). Uranium in the Aricheng West and Aricheng Epsilon zones is concentrated in a set of inclined, sheet-like breccias within the granitic Kurupung Batholith. The Aricheng Epsilon structure is sub-vertical in orientation while the Aricheng West structure has a roughly 'Y'-shaped cross section with the northern breccia inclined southward at an angle of 45 degrees to 55 degrees , and the southern arm of the 'Y' is sub-vertical.

The breccias occur within an envelope of albite-hematite-chlorite-calcite alteration that is non-magnetic, and are delineated by corridors of weak magnetism (shades of blue and green) in Figure 2. These weakly magnetic zones show the potential extent of the structures in which uranium-bearing shoots occur.

The uranium grade-thickness long section shows a predictable arrangement of higher uranium grades that gradually decrease towards the margins of the mineralized shoots (Figure 3). The Aricheng West shoot has been drilled to a depth of 150m below surface, while the Aricheng Epsilon shoot has been intersected at a depth of 250m below surface. Mineralization remains open at depth and along strike.

2011 Infill Drilling Plan

Infill drilling is expected to begin in March with the focus on higher grade shoots of three uranium-bearing zones in the Kurupung Project: the Aricheng West corridor, Aricheng C, and on the Accori North C structure. Approximately 11,000m of infill drilling will be required on nominal 50m by 50m centres. The aim is to use these close-spaced intercepts for a potential NI 43-101 resource estimate for completion by the end of 2011.

Quality Assurance & Quality Control

Diamond drilling at Aricheng West was undertaken with U3O8 Corp's own drill rig that produced NQ (nominal 47.6 millimetre diameter) core. A down-hole spectral gamma probe was used on the five bore holes reported on here to determine the extent of the mineralized intervals by providing an estimate of the uranium grade based on the radioactivity measured. Core from each mineralized interval was halved with a diamond saw on-site and half core samples were delivered to ACME Laboratory's preparation facility in Georgetown, Guyana. Sample blanks and certified standards were inserted at an average frequency of one per 25 samples. Sample pulps were then shipped by ACME to their analytical facility in Vancouver, BC, Canada, for analysis for uranium by ICP-MS after hot, four-acid digestion. The other half of the core was logged and is stored on-site, providing a complete record of the geology and mineralized zones drilled.

Dr. Richard Spencer (P.Geo.), CEO and President of U3O8 Corp., a Qualified Person within the definition of that term in NI 43-101 of the Canadian Securities Administrators, had overall responsibility for all aspects of target selection and drill-site location on the Aricheng West target. Dr. Spencer has supervised the preparation of, and verified, the technical information in this release.

To view 'Figure 1 - Clusters of Uranium-Bearing Structures in the Kurupung Batholith', please visit the following link: http://media3.marketwire.com/docs/KURUfig.pdf.

To view 'Figure 2 - Drill Hole Locations on the Aricheng West and Aricheng Epsilon Structures', please visit the following link: http://media3.marketwire.com/docs/ARICHfig.pdf.

To view 'Figure 3 - Long Section of the Aricheng West Corridor', please visit the following link: http://media3.marketwire.com/docs/ARICHWCfig.pdf.

About U3O8 Corp.

U3O8 Corp. is a Toronto-based exploration company, focused on exploration and resource expansion of uranium and associated commodities in South America - a promising new frontier for exploration and development. U3O8 Corp. has one of the most advanced portfolios of uranium projects in the region comprising NI 43-101 compliant resources in Guyana to significant historic resources in Colombia and near-resource and discovery potential in Argentina.

(1) Scout drilling results suggest that the Kurupung structures identified
    to date may contain a conceptual target of 13-18 million tonnes at a
    grade of 0.08% to 0.10% U3O8(estimated 30 to 35mlb U3O8) including the
    initial NI 43-101 resource estimate. The initial NI 43-101 resource
    estimate of 5.8mlb Indicated at an average grade of 0.10% (2.0 lbs/st)
    U3O8and 1.3mlb Inferred at an average grade of 0.09% (1.9 lbs/st)
    U3O8has been reported on the Aricheng North and Aricheng South
    structures in the Kurupung Batholith. Refer to the technical report
    dated January 14, 2009 titled 'A Technical Review of the Aricheng North
    and Aricheng South Uranium Deposits in Western Guyana for U3O8 Corp. and
    Prometheus Resources (Guyana) Inc., available on U3O8 Corp's web site at
    www.u3o8corp.com and on SEDAR at www.sedar.com.

(2) Geologically similar albitite-hosted uranium deposits worldwide
    including the Coles Hill deposit (USA), the Valhalla deposit (Australia)
    and Michelin deposit (Canada), typically host resources in the 60 to
    130mlb range with typical grades of 0.06% to 0.10% U3O8, within multiple
    mineralized structures. These deposits have not been independently
    verified by U3O8 Corp. and information regarding these deposits is drawn
    from publicly available information. Comparisons of U3O8 Corp's uranium
    resource and exploration targets with other uranium deposits are
    conceptual in nature. There is no certainty that further exploration of
    U3O8 Corp's uranium resource or other targets will result in the
    delineation of a similar mineral resource.

Forward-Looking Statements

Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of U3O8 Corp., including, but not limited to, the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with the uncertainty of exploration results and estimates and that the resource potential will be achieved on the company's exploration projects, currency fluctuations, dependence upon regulatory approvals, and the uncertainty of obtaining additional financing and exploration risk. There is no assurance that mineralization encountered at Aricheng West and other Kurupung targets will add to U3O8 Corp's resource base. 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.

To view 'Kurupung Emerging as a Large Uranium System in Guyana', please visit the following link: http://www.marketwire.com/library/20110119-U800i.jpg.

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

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Contacts:

U3O8 Corp.

Nancy Chan-Palmateer

Vice President, Investor Relations

(416) 868-1491
nancy@u3o8corp.com


U3O8 Corp.

Richard Spencer

President & CEO

(416) 868-1491
richard@u3o8corp.com