Uranium One Becomes Operator at Mkuju River Project in Tanzania

TORONTO, ON and JOHANNESBURG, South Africa, June 7, 2011 /CNW/ --
TORONTO, ON and JOHANNESBURG, South Africa, June 7, 2011 /CNW/ - Uranium
One Inc. ('Uranium One') announced that its 51% shareholder, JSC
Atomredmetzoloto, has today completed the acquisition of Mantra
Resources Ltd. ('Mantra').  Uranium One also announced that it has now
become operator of Mantra's Mkuju River Project in Tanzania pursuant to
agreements entered into with ARMZ in connection with today's closing.

Operating Agreement

Uranium One will manage the development of the Mkuju River Project and
other Mantra exploration activities pursuant to an operating agreement
entered into on June 6, 2011 between Uranium One, ARMZ and Mantra.

Development of the Mkuju River Project is to be completed in accordance
with a revised feasibility study scheduled for completion in Q1 2012
and work programs approved by Uranium One and ARMZ.

Loan Agreement

In accordance with a loan agreement between Uranium One and Mantra dated
June 6, 2011, Uranium One has also agreed to provide a credit facility
to fund the development of the Mkuju River Project and other Mantra
exploration activities. The credit facility will be guaranteed by ARMZ.

Prior to completion of the revised feasibility study, work at Mkuju
River will be funded from Mantra's existing cash balance and from cash
flow from Uranium One's Kazakhstan operations.

Mkuju River Project

The Mkuju River Project is a large scale, uranium development project
located in southern Tanzania.

As previously announced, Uranium One has a call option to acquire Mantra
from ARMZ for consideration equal to ARMZ's cost plus certain
additional expenditures, exercisable for a period of 12 months from
today's closing.  ARMZ also has a put option to sell Mantra to Uranium
One for the same consideration at the end of such 12 month period. The
call option and the put option may be extended to 24 months if Uranium
One partially exercises that option and acquires approximately 15% of
Mantra for US $150 million before January 31, 2012.  The option to
acquire the remaining 85% interest in Mantra (or 100% if the option is
not partially exercised) is subject to Uranium One minority shareholder
approval.

About Uranium One

Uranium One is one of the world's largest publicly traded uranium
producers with a globally diversified portfolio of assets located in
Kazakhstan, the United States and Australia.

Cautionary Statement

No stock exchange, securities commission or other regulatory authority
has approved or disapproved the information contained herein.

Forward-looking statements: This press release contains certain
forward-looking statements. Forward-looking statements include but are
not limited to those with respect to the price of uranium, the
estimation of mineral resources and reserves, the realization of
mineral reserve estimates, the timing and amount of estimated future
production, costs of production, capital expenditures, costs and timing
of the development of new deposits, success of exploration activities,
permitting time lines, currency fluctuations, requirements for
additional capital, government regulation of mining operations,
environmental risks, unanticipated reclamation expenses, title disputes
or claims and limitations on insurance coverage and the timing and
possible outcome of pending litigation. In certain cases,
forward-looking statements can be identified by the use of words such
as 'plans', 'expects' or 'does not expect', 'is expected', 'budget',
'scheduled', 'estimates', 'forecasts', 'intends', 'anticipates' or
'does not anticipate', or 'believes' or variations of such words and
phrases, or state that certain actions, events or results 'may',
'could', 'would', 'might' or 'will' be taken, occur or be achieved.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of Uranium One to be materially different
from any future results, performance or achievements expressed or
implied by the forward-looking statements. Such risks and uncertainties
include, among others, the completion of the transactions described in
this press release, the future steady state production and cash costs
of Uranium One, the actual results of current exploration activities,
conclusions of economic evaluations, changes in project parameters as
plans continue to be refined, possible variations in grade and ore
densities or recovery rates, failure of plant, equipment or processes
to operate as anticipated, accidents, labour disputes or other risks of
the mining industry, delays in obtaining government approvals or
financing or in completion of development or construction activities,
risks relating to the integration of acquisitions and the realization
of synergies relating thereto, to international operations, to prices
of uranium as well as those factors referred to in the section entitled
'Risk Factors' in Uranium One's Annual Information Form for the year
ended December 31, 2010 which is available on SEDAR at www.sedar.com. Although Uranium One 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 forward-looking
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. Uranium One expressly disclaims any intention or obligation
to update or revise any forward-looking statements, whether as a result
of new information, future events or otherwise, except in accordance
with applicable securities laws.

For further information about Uranium One, please visit www.uranium1.com.

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Chris Sattler
Chief Executive Officer
Tel: 1 647 788 8500

Anton Jivov
Manager, Corporate Development and Investor Relations
Tel: 1 647 788 8461