Mr. Dusty Nicol reports

EUROPEAN URANIUM TAKES NEXT STEP IN KURISKOVA URANIUM FEASIBILITY STUDY

European Uranium Resources Ltd. (EUU) has provided an update on the progress of the feasibility study for the company's high-grade Kuriskova uranium deposit in Slovakia. The Kuriskova deposit is one of the world's highest-grade undeveloped uranium deposits, at a grade of 0.555 per cent triuranium octoxide (U3O8). A preliminary feasibility study demonstrates that Kuriskova could be one of the lowest-cost uranium producers in the world.

Composite samples for continuing metallurgical testwork were recently prepared using drill core from the newly completed metallurgical drilling program (see news releases dated June 26 and July 24, 2012). Where necessary, to bring the composite grade to the appropriate level for the testwork, quarter core from previously drilled holes was blended into the sample. The samples have been shipped to AREVA's laboratory facility at Bessines, France. Metallurgical testwork will begin shortly as part of EUU's prepaid technical services agreement with AREVA.

This testwork is part of EUU's continuing programs and studies to complete a feasibility study on the Kuriskova deposit. The results of this metallurgical test program will be used for flow sheet optimization and further development of design parameters and costing for the feasibility study. The objective is to optimize the process flow sheet as described in the preliminary feasibility study. The company also continues to advance critical-path aspects of the feasibility study as well as the collection of baseline data for the environmental impact study for the Kuriskova deposit.

The April, 2011, National Instrument 43-101-compliant resource estimate, audited and approved by Tetra Tech Inc., shows 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). A preliminary feasibility study, announced on Jan. 30, 2012, demonstrates that Kuriskova could be one of the lowest-cost uranium producers in the world.

EUU continues its efforts to define a structure that would allow uranium 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.

Qualified person

This release has been reviewed and approved for the company by Dorian L. (Dusty) Nicol, president and chief executive officer of the company, a qualified person as defined in National Instrument 43-101.

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