Uranium Energy Corp Extends Option Agreement Deadline for $11-Million Sale of
Interest in New Mexico Project

NYSE Amex Equities Exchange Symbol - UEC

AUSTIN, TX , Jan. 5 /CNW/ - Further to its news release dated November 12, 2009 , Uranium Energy Corp. (NYSE-AMEX: UEC, "the Company") has granted a three-month extension to Neutron Energy Inc. ("Neutron"), until March 31, 2010 , to provide written notice of its intention to purchase the Company's 49% joint venture interest in Cibola Resources LLC ("Cibola") for a cash payment of US$11,000,000. If Neutron elects to exercise the option to purchase the Company's interest in Cibola, the date by which funds must be paid and the transaction closed has been extended to April 12, 2010 . If Neutron does not provide written notice of its intention to exercise the option by March 31, 2010 , the option will terminate, and the option agreement will be of no further force or effect.

Additionally, the option agreement provides that Neutron will fund Cibola's obligations for the months of August 2009 , through March 2010 . Regardless of whether Neutron exercises its option, Neutron has agreed to release the Company from all liabilities with respect to these obligations, and the Company's interest in Cibola will not be diluted due to Neutron's funding of the project during this period.

Cibola is the owner of the Cebolleta uranium project, a mining lease covering approximately 6,700 acres in the Cebolleta Land Grant, located 45 miles west of Albuquerque , New Mexico . Cibola is owned 49% by the Company and 51% by Neutron, a private corporation based in Englewood, Colorado.

About Uranium Energy Corp

Uranium Energy Corp (NYSE-AMEX: UEC) is a U.S.-based exploration and development company with the objective of near-term uranium production in the U.S. The Company's fully licensed and permitted Hobson processing facility is central to all of its projects in South Texas, including the Goliad and Palangana in-situ recovery uranium projects which are in the final stages of mine permitting for production. The Company's operations are managed by professionals with a recognized profile for excellence in their industry, a profile based on many decades of hands-on experience in the key facets of uranium exploration, development and mining. The Company is well financed to execute on its key programs.

    
    Stock Exchange Information:
    NYSE AMEX: UEC
    Frankfurt Stock Exchange Symbol: U6Z
    WKN: AØJDRR
    ISN: US916896103
    

Safe Harbor Statement

Except for the statements of historical fact contained herein, the information presented in this news release constitutes "forward-looking statements" as such term is used in applicable United States and Canadian laws. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Any other statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans, "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and should be viewed as "forward-looking statements". Such forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and other factors include, among others, the actual results of exploration activities, variations in the underlying assumptions associated with the estimation or realization of mineral resources, the availability of capital to fund programs and the resulting dilution caused by the raising of capital through the sale of shares, accidents, labour disputes and other risks of the mining industry including, without limitation, those associated with the environment, delays in obtaining governmental approvals, permits or financing or in the completion of development or construction activities, title disputes or claims limitations on insurance coverage. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements contained in this news release and in any document referred to in this news release.

Forward looking statements are made based on management's beliefs, estimates and opinions on the date the statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable law. Such forward-looking statements reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions, including, the risks and uncertainties outlined in our most recent financial statements and reports and registration statement filed with the United States Securities and Exchange Commission (the "SEC") (available at www.sec.gov) and with Canadian securities administrators (available at www.sedar.com). Such risks and uncertainties may include, but are not limited to, the risks and uncertainties set forth in the Company's filing with the SEC, such as the ability to obtain additional financing, the ability to manage growth, acquisitions of technology, equipment or human resources, the effect of economic and business conditions, the ability to attract and retain skilled personnel and factors outside the control of the Company. These forward-looking statements are made as of the date of this news release, and the Company assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although the Company believes that the beliefs, plans, expectations and intentions contained in this news release are reasonable, there can be no assurance those beliefs, plans, expectations or intentions will prove to be accurate. Investors should consider all of the information set forth herein and should also refer to the risk factors disclosed in the Company's periodic reports filed from time-to-time with the SEC. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. Investors are cautioned that historical production is not necessarily indicative of future production potential.

For further information: North America: Investor Relations, Uranium Energy Corp: Toll Free: [phone], Fax: [phone], E-mail: [email protected]