European Uranium Resources Ltd. (EUU: TSX-V; TGPN: Frankfurt) (the “Company”) confirms in response to queries about recent trading activity that there is no material news pending.
As disclosed most recently on February 29, 2012, pursuant to a project acquisition, the Company issued 10,727,969 shares of the Company to Mawson Resources Ltd. (TSX:MAW). Pursuant to a shareholder and court approved plan of arrangement and pending the approval of the TSX Venture Exchange, Mawson will distribute these 10,727,969 shares of the Company to its shareholders on a pro-rata basis before April 30, 2012. A significant proportion of these shares will be distributed to Mawson shareholders who are also shareholders of the Company and it is expected that these mutual shareholders will not immediately sell the shares they receive on distribution.
The Company has assembled a portfolio of outstanding uranium projects in Slovakia, Sweden and Finland at all stages of the exploration / development pipeline. The flagship property is the high-grade Kuriskova project in Slovakia. A recently completed prefeasibility study demonstrates that Kuriskova could be one of the lowest cost uranium producers in the world. European Uranium Resources Ltd. has a strong base of supportive shareholders, including AREVA, ranked first in the global nuclear power industry and a key player in uranium mining. The company is well-funded, with $8.5 million cash at December 31, 2011.
Over the next twelve to eighteen months the Company expects to:
The development of the Kuriskova project can potentially provide Slovakia, which is among the world’s highest per capita consumers of nuclear power, a secure source of uranium for thirty years. There are multiple exploration targets within the Kuriskova license area which have the potential to expand the resource. In addition to Kuriskova, European Uranium also has the Novoveska Huta deposit on which a resource has been defined plus several exploration targets on other licenses in Slovakia.
European Uranium acquired seven uranium properties located in Sweden and Finland from Mawson Resources Ltd. on February 29 2012: the Hotagen, Duobblon, Kapell and Aronsjö projects in Sweden and the Riutta, Asento and Nuottijärvi projects in Finland. The potential of this portfolio of projects is demonstrated by the results at the Riutta project announced by Mawson on September 20, 2011. Mawson reported that best result from a 10 hole diamond drill program at the Riutta project totaling 1,065 metres comes from drill hole AREVA DH 1 which intersected 11.3 m at 0.68% uranium oxide ("U3O8") including 3.7 metres at 1.53% U3O8 from 28.3 metres. The true thickness of the interval is estimed to be 8.6 m. Mawson reported that this is the best uranium drill result in Finland's history and demonstrates the potential for high grade and near surface uranium at the Riutta project. High grade uranium mineralization has now been drilled over 450 m of strike within a larger 3.6 km trend. The Riutta project is fully permitted for exploration; mineralization remains open along strike and down dip, and European Uranium looks forward to further testing the project's potential.
The technical content of this release has also been reviewed and approved for European Uranium by Dorian L. Nicol, President and CEO, and a Qualified Person as defined in NI 43-101.
EUROPEAN URANIUM RESOURCES LTD.
Dorian L. (Dusty) Nicol, President and CEO
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.
This news release contains forward-looking statements that are based on the Corporation's current expectations and estimates. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "suggest", "indicate" and other similar words or statements that certain events or conditions "may" or "will" occur. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements. Such factors include, among others: the actual results of current exploration activities; conclusions of economic evaluations; changes in project parameters as plans to continue to be refined; possible variations in ore grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing; and fluctuations in metal prices. There may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Corporation disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.