Uranium Energy Corp Initiates Operations at Hobson Processing Facility in
South Texas

• First shipment of uranium loaded resins from Palangana now received at Hobson, processing has started
• First wellfield at Palangana ramping up production

NYSE Amex Equities Exchange Symbol - UEC

CORPUS CHRISTI, TX, Dec. 1 /CNW/ - Uranium Energy Corp (NYSE AMEX: UEC, the "Company") is pleased to announce that the Company has started the processing of the first shipment of uranium-loaded resins at its Hobson processing plant. This shipment and the start of processing follows the Company's announcement on November 17, 2010 of the initial in-situ recovery (ISR) of uranium at Palangana in South Texas. The shipment, received at the Hobson plant on Sunday, November 28, consisted of 500 cubic feet of uranium-loaded resins contained within one of the Company's two U.S. Department of Transportation-approved tanker trailers specially built for this purpose.

Harry Anthony, Chief Operating Officer, stated, "Hobson is a state-of-the-art processing facility now operating under the supervision of experienced staff headed by VP Production Bob Underdown and Hobson Superintendent Greg Kroll. We are confident of standard and secure operations here. We will continue to ramp up production at the Palangana ISR project and the Hobson processing facility over the ensuing weeks and months."

The process of converting uranium loaded resin beads to marketable yellowcake (U3O8) at Hobson is as follows: stripping the uranium from the resin beads using a salt solution, precipitating the yellowcake slurry from the salt solution, filtering it from the remaining solution, then vacuum drying and packaging the yellowcake into drums for delivery.  For more information on ISR mining, visit www.uraniumenergy.com and view the animated video noted on the home page.

About Uranium Energy Corp

Uranium Energy Corp is a U.S.-based uranium production, development and exploration company operating North America's newest uranium mine. The Company's fully licensed and permitted Hobson processing facility is central to all of its projects in South Texas, including the Palangana in-situ recovery project, which has just initiated production, and the Goliad in-situ recovery project which is 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.

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.

Certain matters discussed in this news release and oral statements made from time to time by representatives of the Company may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the Federal securities laws. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved.  Forward-looking information is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Many of these factors are beyond the Company's ability to control or predict. Important factors that may cause actual results to differ materially and that could impact the Company and the statements contained in this news release can be found in the Company's filings with the Securities and Exchange Commission. For forward-looking statements in this new release, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The Company assumes no obligation to update or supplement any forward-looking statements whether as a result of new information, future events or otherwise.  'This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities.  The securities offered and sold in the private placement Offering have not been registered under the United States Securities Act of 1933, as amended (the "Securities Act"), or any state securities laws, and may not be offered or sold in the United States absent registration, or an applicable exemption from registration under the Securities Act and applicable state securities laws.

For further information:

Contact North America: Investor Relations, Uranium Energy Corp:
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E-mail: [email protected]