UEX Receives West Bear Preliminary Feasibility Study Reporting Probable
Reserves Containing 1,492,261 Pounds U(3)O(8) at a Grade of 0.94% U(3)O(8)

Trading Symbol: UEX-TSX

VANCOUVER, Feb. 18 /CNW/ - UEX Corporation ("UEX") has received the results of the Preliminary Feasibility Study (the "Study") on the West Bear Deposit ("West Bear") prepared by Golder Associates Ltd. ("Golder"). Upon finalization, the Study will be filed on SEDAR at www.sedar.com and posted on UEX's website at www.uex-corporation.com.

West Bear is located in the southernmost part of the Hidden Bay Project which also contains the Horseshoe and Raven Deposits to the northeast of West Bear. The combined National Instrument 43-101 ("N.I. 43-101") compliant resource estimate at a 0.05% U(3)O(8) cut-off for the Horseshoe, Raven and West Bear Deposits is 36.623 million pounds of U(3)O(8) with an average grade of 0.160% U(3)O(8) in the Indicated Mineral Resource category and 2.715 million pounds of U(3)O(8) with an average grade of 0.111% U(3)O(8) in the Inferred Mineral Resource category. These resources include a previously released N.I. 43-101 compliant Indicated Mineral Resource estimate of 1.585 million pounds of U(3)O(8) grading 0.843% U(3)O(8) at a 0.04% U(3)O(8) cut-off for West Bear.

The Study has upgraded the previously released West Bear resource estimate to a Probable Mineral Reserve estimate of 1,492,261 pounds of U(3)O(8) grading 0.94% U(3)O(8) at a cut-off of 0.18% U(3)O(8) which represents 96% of the mineral resource. The high conversion rate reflects the near surface nature of the West Bear mineralization which is amenable to open cast mining in a shallow pit. The Study also reports metallurgical testing resulting in an estimated overall uranium recovery of 95%.

The Study presents the base case scenario uranium price of $77.73 (Canadian) per pound of U(3)O(8), resulting in a Net Present Value of $23.4 million and an Internal Rate of Return of 118%. The feasibility of West Bear is most sensitive to the uranium price and is moderately sensitive to capital and operating costs. A detailed uranium price sensitivity analysis is provided in the Study as follows:

    
    -------------------------------------------------------------------------
                                      Pre-tax                Post-tax
    -------------------------------------------------------------------------
    U(3)O(8) Price (C$/lb)     NPV (C$M)   IRR (%)     NPV (C$M)   IRR (%)
    -------------------------------------------------------------------------
           50.00                   -2.8       n/a          -3.1       n/a
    -------------------------------------------------------------------------
           75.00                   32.6       161          20.8       105
    -------------------------------------------------------------------------
       77.73 (base case)           36.5       180          23.4       118
    -------------------------------------------------------------------------
          100.00                   68.0       332          44.6       223
    -------------------------------------------------------------------------
          125.00                  103.5       502          68.5       340
    -------------------------------------------------------------------------
    

The uranium price sensitivity analysis is presented on an undiscounted basis as West Bear would be mined within a period of approximately 12 months. Potentially economic material would be mined using open pit methods and then transported off-site to an existing processing facility for custom milling. Capital costs are estimated to be approximately $20.8 million and mine closure costs are estimated at $8.75 million. Working capital requirements are estimated to be approximately $0.5 million per month over the life of the operation. The Study concludes with various recommendations regarding environmental, socio-economic, toll-milling and mining matters.

"We are pleased with the preliminary economics of West Bear" said Graham Thody, President and CEO of UEX, who further noted that "West Bear's value will be enhanced as a result of UEX's continued development of its significant Hidden Bay assets, which include the nearby Horseshoe and Raven Deposits."

The technical information in this news release has been compiled by R. Sierd Eriks, P.Geo., UEX's Vice President of Exploration, and reviewed by David Sprott, P.Eng., of Golder and Kevin Palmer, P.Geo., of Golder, who are Qualified Persons as defined by N.I. 43-101.

About UEX

UEX is a Canadian uranium exploration and development company actively involved in 19 uranium projects, including seven that are 100% owned and operated by UEX, one joint venture with AREVA that is operated by UEX, ten joint ventures with AREVA and one under option from JCU (Canada) Exploration Company, Limited, which are operated by AREVA. The 19 projects, totaling 353,134 hectares (872,613 acres), are located in the eastern, western and northern perimeters of the Athabasca Basin in Saskatchewan, the world's richest uranium belt, which accounts for approximately 21% of global primary uranium production. UEX is currently developing several uranium deposits in the Athabasca Basin which include the Kianna, Anne and Colette Deposits at its 49%-owned Shea Creek Uranium Project, a joint venture with AREVA in the western Athabasca Basin, and the Horseshoe, Raven and West Bear Deposits located at its 100%-owned Hidden Bay Project in the eastern Athabasca Basin.

    
           ON BEHALF OF THE BOARD OF DIRECTORS OF UEX CORPORATION

                               Graham C. Thody,
                             President & C.E.O.
    

Forward-Looking Statements

This news release contains "forward-looking statements" that are based on UEX's current expectations, estimates, forecasts and projections. These forward-looking statements include statements regarding UEX's outlook for our future operations, plans and timing for the commencement or advancement of exploration activities on our properties, and other expectations, intention and plans that are not historical fact. The words "estimates", "projects", "expects", "intends", "believes", "plans", or their negatives or other comparable words and phrases are intended to identify forward-looking statements. Such forward-looking statements are based on certain factors and assumptions and are subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Important factors that could cause actual results to differ materially from UEX's expectations include uncertainties relating to interpretation of drill results and geology, continuity and grade of deposits, fluctuations in uranium prices and currency exchange rates, and other risks and uncertainties disclosed in UEX's Annual Information Form and other filings with securities regulators on SEDAR. Many of these factors are beyond the control of UEX. Consequently, all forward-looking statements made in this news release are qualified by this cautionary statement and there can be no assurance that actual results or developments anticipated by UEX will be realized. For the reasons set forth above, investors should not place undue reliance on such forward-looking statements. Except as required by applicable law, UEX disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise.

%SEDAR: 00017609E

For further information: UEX CORPORATION, SUITE 1007 - 808 NELSON STREET, VANCOUVER, B.C., CANADA, V6Z 2H2, PH: [phone], FAX [phone], Website: www.uex-corporation.com, email: [email protected]