ATHABASCA URANIUM ANNOUNCES $2.2 MILLION PRIVATE PLACEMENT

/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

TSXV: UAX
US Symbol:  ATURF

VANCOUVER, Nov. 25 /CNW/ - Athabasca Uranium Inc. (the "Company") is pleased to announce that it has arranged a private placement in the capital of the Company (the "Offering") for gross proceeds of up to $2,200,000.

The Offering is comprised of up to 6,956,522 flow through units (the "FT Units") at a price of $0.23 per FT Unit and up to 3,000,000 units (the "NFT Units") at a price of $0.20 per NFT Unit for aggregate gross proceeds of up to $2,200,000.  Each FT Unit will consist of one common share in the capital of the Company which will be designated as a flow-through share pursuant to the Income Tax Act (Canada) and one share purchase warrant (a "FT Warrant").  Each FT Warrant will entitle the holder to purchase one common share in the capital of the Company (a "Share") at a price of $0.35 per Share for a period of one year from the closing of the Offering.  Each NFT Unit will consist of one Share and one share purchase warrant (a "NFT Warrant").  Each NFT Warrant will entitle the holder to purchase one Share at a price of $0.30 per Share for a period of one year from the closing of the Offering.

The Company may pay finder's fee on all or portions of the Offering within the maximum amount permitted by the policies of the TSX Venture Exchange. 

Closing of the Offering is subject to a number of conditions, including receipt of all necessary corporate and regulatory approvals, including approval of the TSX Venture Exchange.  All securities issued in connection with the Offering will be subject to a statutory hold period of four months plus a day from the date of issuance in accordance with applicable securities legislation. 

The proceeds from the Offering will be used to fund exploration programs on the Company's McCarthy Lake, Webb River and McGregor Lake uranium properties located in the Athabasca Basin region of northern Saskatchewan, and for general working capital and corporate purposes.

Regarding the Offering, Company President & CEO Gil Schneider commented:  "This funding, our recent property acquisitions and climbing uranium prices now have us positioned nicely in the Athabasca Basin.  With the recent freeze-up occurring, we can commence mobilizing exploration equipment almost immediately."

About Athabasca Uranium

Athabasca Uranium Inc. is a uranium exploration and development company acquiring and exploring properties located in the uranium-rich Athabasca Basin in northeast Saskatchewan.  The Company's stated vision is to explore the region using leading-edge technology to become a world-class uranium mining company.  Additional information on Athabasca Uranium and its vision is available on the Company's website at www.athabascauranium.com.

ON BEHALF OF THE BOARD OF DIRECTORS

   "Gil Schneider"

Gil Schneider, President & CEO

This news release does not constitute an offer to sell or solicitation of an offer to sell any of the securities in the United States.  The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to a U.S. Person unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Forward-Looking Statements: This news release contains 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.

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

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