Mr. Dorian Nicol reports

EUROPEAN URANIUM COMPLETES METALLURGICAL DRILLING PROGRAM AT KURISKOVA DEPOSIT, SLOVAKIA

European Uranium Resources Ltd. has completed its planned three-hole drilling program to obtain samples for further metallurgical testing from the Kuriskova uranium deposit. Preliminary evaluation suggests that the program was successful in obtaining sufficient sample weight at appropriate grade for testing as part of the feasibility study.

Downhole gamma logging results from the first drill hole (LE-K-73) were reported in an earlier news release dated June 26, 2012. Significant downhole gamma logging results from the final two holes (LE-K-74 and LE-K-75), together with summary of results from nearest previous holes, are presented here.

LE-K-74:

• 2.9 metres at 0.478 per cent eU3O8, including 0.5 metre at 1.847 per cent eU3O8.

The two nearest historic holes are:

• Hole 1181 with 3.6 metres at 0.143 per cent eU3O8 at a distance of 33 metres west of LE-K-74;
• LH-K-13A with 1.2 metres at 0.519 per cent U3O8 at a distance of 30 metres northeast of LE-K-74.

LE-K-75:

• 2.6 metres at 0.468 per cent eU3O8, including 0.8 metre at 1.212 per cent eU3O8.

The two nearest historic holes are:

• Hole LH-K-14A with three metres at 1.454 per cent U3O8 at a distance of 18 metres north of hole LE-K-75;
• Hole 1182 with 4.8 metres at 1.453 per cent eU3O8 at a distance of 20 metres northwest of hole LE-K-75.

The April, 2011, National Instrument 43-101-compliant resource estimate, audited and approved by Tetra Tech Inc., comprises an indicated resource of 28.5 million pounds of U3O8 at a grade of 0.555 per cent U3O8 contained in 2.3 million tonnes and an additional inferred resource of 12.7 million pounds of U3O8 at a grade of 0.185 per cent U3O8 contained in 3.1 million tonnes, at a cut-off of 0.05 per cent uranium (see news release dated April 26, 2011).

The company is continuing to advance critical-path aspects of a feasibility study and environmental impact study for the Kuriskova deposit. The metallurgical samples collected from the continuing drill program will be tested by AREVA, a significant shareholder of European Uranium, later in the summer and fall of 2012, as part of the company's technical services agreement with AREVA. The objective is to optimize the process flow sheet as described in the preliminary feasibility study.

The company continues to conduct surface exploration work on targets within the Kuriskova licence area, with the objective of defining drill targets that could lead to expansion of the current resource.

Slovakia's Prime Minister Robert Fico, elected in March, 2012, continues to publicly reinforce the message that nuclear power will be a main energy source in Slovakia in the future. Construction of Slovakia's fifth nuclear power plant is expected to be completed and operational by 2020.

The company continues its efforts to define the structure which allows uranium production from Kuriskova to be developed for the benefit of Slovakia's energy future. This could be a production off-take arrangement with Slovakia or a partnership with a Slovak entity. Discussions have been continuing since April on several levels.

Work programs for the recently acquired Swedish and Finnish uranium prospects have been designed and will be conducted in late summer and fall of 2012.

Uranium grades presented in this news release are reported as eU3O8 percentages based on downhole radiometric logging. The logging was performed by Koral SRO of Slovakia. Drill intercepts are reported as drilled; true thicknesses have not yet been calculated. Quality control and quality assurance are provided by Ravi Sharma (chartered professional member, AusIMM, and registered professional, SME), European Uranium's manager, resources and reserves, who is a qualified person as defined by National Instrument 43-101 and has reviewed and approved the technical disclosure contained in this news release.

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