Vancouver, British Columbia: Western Uranium Corporation (the “Company” or “Western Uranium”) is pleased to announce that it has completed its acquisition (the “Acquistion”) of all of the issued and outstanding shares of Ruby Hill Exploration Inc. (“Ruby Hill”) on May 31, 2006. The Acquisition was made pursuant to a letter agreement dated April 7, 2006 and amended on April 26, 2006 as previously announced on April 10, 2006 and May 10, 2006. Under the letter agreement, Western acquired the shares of Ruby Hill and, in exchange, issued 1.1 million shares of Western Uranium to the Ruby Hill shareholders. The Company will also issue 15,000 shares of Western Uranium in connection with a finder’s fee agreement. All of the shares issued in the transaction will be subject to a four-month hold period.
As a result of the Acquisition, Ruby Hill became a wholly owned subsidiary of the Company. Ruby Hill is the owner of prospecting permits and minerals claims granting exploration rights over approximately 486,000 acres in the Thelon Basin in Nunavut and the Northwest Territories. The Thelon Basin is geologically analogous to the Athabasca Basin and exhibits comparable exploration potential for hosting high grade uranium deposits. Currently, the Thelon Basin hosts one significant uranium deposit, the Kiggavik deposit, reported to contain 40 million pounds at a grade of 0.65% of U3O8 and which is located on the eastern perimeter of the northern extension of the basin in Nunavut. Drill intercepts from Cameco’s Boomerang Lake Project, on the western perimeter of the southern extension in the Northwest Territories, have yielded high grade uranium that suggest another significant deposit may develop with further work. The Thelon Basin has been far less intensively explored than the Athabasca Basin and this Acquisition places Western Uranium as an early entrant into a very prospective location. Western Uranium has already initiated a compilation of data generated by previous exploration groups active in the region during the last uranium exploration cycle in the late 1970’s and early 1980’s. Results from this compilation will be used to assist in guiding field work.
Dr. Neil Hillhouse, who was the founder of Ruby Hill Exploration Inc., has accepted Western Uranium’s offer to serve as Senior Technical Advisor. Dr. Hillhouse’s advice and direction will greatly assist in guiding Western Uranium’s exploration efforts in the Thelon Basin.
Western Uranium Corporation is a mineral exploration company with a focus on uranium. The Company has exploration properties near McDermitt, Nevada and Grants, New Mexico. The Company has its head office in Vancouver, Canada; and its executive management team is based in Reno, Nevada.
On behalf of the Board of
Western Uranium Corporation
“Pamela Klessig”
Pamela J. Klessig
President & CEO
For further information contact:
Western Uranium Corporation
Telephone: 775-827-3311
Email: info@westernuranium.com
Website: www.westernuraniumcorp.com
The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved of the contents of this press release.
Forward-looking statements: This document may contain statements about expected or anticipated future events and financial results that are forward-looking in nature and, as a result, are subject to certain risks and uncertainties, such as general economic, market and business conditions, the regulatory process and actions, technical issues, new legislation, competitive and general economic factors and conditions, the uncertainties resulting from potential delays or changes in plans, the occurrence of unexpected events, and the Company’s capability to execute and implement its future plans. Actual results may differ materially from those projected by management. For such statements, we claim the safe harbour for forward-looking statements within the meaning of the Private Securities Legislation Reform Act of 1995.
