TITAN URANIUM INC. ANNOUNCES CLOSING OF PRIVATE PLACEMENT OFFERING

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

SASKATOON, SK, Dec. 2 /CNW/ - Titan Uranium Inc. ("Titan" or the "Company") (TSX-V:TUE, FSE:T4X) is pleased to announce that it has closed its previously announced non-brokered private placement offering of units (the "Units") at a price of $0.30 per Unit and flow-through units (the "FT Units") at a price of $0.45 per FT Unit (the "Offering"), for aggregate gross proceeds of $6,940,713.90 from the issue and sale of 16,576,630 Units and 4,372,722 FT Units.  The net proceeds of the Offering are to be used by the Company to advance licensing and permitting activities on Titan's Sheep Mountain project, for exploration of Titan's Canadian properties, and to provide general working capital.

Each Unit consists of one common share in the capital of Titan (a "Common Share") and one Common Share purchase warrant (each whole Common Share purchase warrant, a "Warrant").  Each FT Unit consists of one Common Share issued on a "flow-through" basis pursuant to the provisions of the Income Tax Act (Canada) (a "Flow-Through Share") and one-half of one Common Share purchase warrant (each whole Common Share purchase warrant, a "FT Warrant").  Each whole Warrant entitles the holder thereof to purchase one Common Share for a period of two years from the closing date of the Offering (the "Closing Date") at an exercise price of $0.45 per Common Share.  Each whole FT Warrant entitles the holder thereof to purchase one Common Share for a period of two years from the Closing Date at an exercise price of $0.50 per Common Share.

Certain insiders of Titan purchased an aggregate of 1,383,333 Units and 1,900,000 FT Units pursuant to the Offering.

In connection with the Offering, Titan has paid to certain finders a cash fee of up to 8% of the aggregate gross proceeds raised pursuant to the efforts of such finders (the "Cash Fee"), and has issued to certain finders that number of non-transferable warrants equal to 8% of the Units and FT Units sold pursuant to the efforts of such finders (the "Finder's Warrants").   Each Finder's Warrant entitles the holder thereof to acquire, for a period of two years from the Closing Date, finder's units of Titan (a "Finder's Unit") at a price of $0.30 per Finder's Unit, each Finder's Unit consisting of one Common Share and one non-transferrable Common Share purchase warrant (a "Unit Warrant").  Each whole Unit Warrant entitles the holder thereof to acquire, for a period of two years from the Closing Date, one Common Share at a price of $0.45 per Common Share.  The aggregate Cash Fee paid to finders pursuant to the Offering is $549,057, and the aggregate number of Finder's Warrants issued to finders pursuant to the Offering is 1,409,200. 

The securities issued under the Offering are subject to a four-month plus one-day hold period from the Closing Date, in accordance with applicable securities laws.

"Proceeds from this financing allows the Company to continue its growth strategy of development in the U.S.A. and exploration in Canada," commented Brian Reilly, Titan's President and CEO.  "Development and expansion of the Sheep Mountain Project in Wyoming positions this past-producer as one of a very few near-term production sites in the uranium sector.  In addition, we plan to drill exploration properties in the Athabasca Basin of Saskatchewan as we advance these properties toward discovery."

This news release does not constitute an offer to sell or the solicitation of an offer to buy the securities in the United States.  The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements of such act.

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

About Titan Uranium Inc.

Titan's vision is to be a leading mid-tier North-American uranium exploration, development and mining company. Our mission is to create shareholder value by advancing quality projects to production.

Our growth strategy is driven by three elements:

• Development: A pre-feasibility study has been completed at the Sheep Mountain Uranium Project, Wyoming. The deposit contains a NI 43-101 compliant probable reserve of 14.2M lbs. of U3O8 (6,393,000 tons at 0.111% eU3O8).
• Exploration: The goal is to discover world class uranium deposits by exploring over 1.5M acres of land in the proven Athabasca and prospective Thelon Basins. Exploration programs are also active in Utah and Wyoming.
• Consolidation: The Company is actively pursuing M & A opportunities and focused on uranium-friendly jurisdictions such as Saskatchewan and Wyoming.

Titan has gained market recognition for its ability to attract strategic partners to participate in the exploration of its properties. Japan Oil, Gas and Metals National Corporation and Mega Uranium Ltd. are partners in current exploration programs managed by Titan.

ON BEHALF OF TITAN URANIUM INC.

Brian A. Reilly, President

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.  This news release includes certain "forward-looking statements".  All statements other than statements of historical fact included in this release, including, without limitation, statements regarding the planned use of proceeds of the Offering, potential mineralization and reserves, exploration results, and future plans, expectations and objectives of Titan, are forward-looking statements that involve various risks and uncertainties.  There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.  Important factors that could cause actual results to differ materially from Titan's expectations are exploration risks detailed from time to time in the filings made by Titan with securities regulators.

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For further information:

Investor Relations
Titan Uranium Inc.
Phone: [phone] or 604-925-1810
Facsimile: 306-651-5105
Email: [email protected]
www.titanuranium.com