Mr. Dusty Nicol reports

EUROPEAN URANIUM SIGNS MEMORANDUM OF UNDERSTANDING WITH SLOVAK MINISTRY OF ECONOMY

European Uranium Resources Ltd. has signed a memorandum of understanding with the Ministry of Economy of Slovakia. The MOU defines the parameters by which European Uranium and the Ministry of Economy will co-operate in advancing the Kuriskova uranium deposit, on which European Uranium holds the exploration licence, through feasibility and environmental studies. A preliminary feasibility study completed by Tetra Tech Inc. (see news release dated Jan. 30, 2012) indicates that the Kuriskova uranium deposit can be developed as an underground mine using best available technologies with minimal environmental impact and that it could be one of the lowest-cost uranium producers in the world.

Slovakia is the world's third-largest per capita user of nuclear energy, with nuclear power providing over 50 per cent of its electricity. Four nuclear reactors are currently operating at two plants, with two additional reactors under construction. Slovakia's Prime Minister Robert Fico, elected in March, 2012, continues to publicly reinforce the message that nuclear power will be the main energy source in Slovakia in the future. Slovakia does not currently produce any uranium; Europe's only producing uranium mine is in the Czech Republic.

Key points of the MOU include:

• Recognition of the importance of the Kuriskova uranium deposit to future Slovak energy independence;
• European Uranium's feasibility study and environmental impact assessment will focus on demonstrating that the Kuriskova deposit can be developed as an environmentally sustainable and commercially viable project;
• European Uranium and the Ministry agree that if the feasibility study and environmental impact assessment are positive, then the project will be able to advance in conformance with Slovakia's national energy strategy;
• European Uranium and the Ministry agree that the Ministry will support reasonable use of domestic energy minerals with the aim to reduce Slovakia's current dependence on import of such raw materials;
• European Uranium and the Ministry will endeavour to find a mechanism for collaboration that will allow uranium production from Kuriskova to be developed for the benefit of Slovakia's energy future. This could be a production off-take arrangement, a partnership with a Slovak entity or other mutually agreed arrangements;
• If the Kuriskova project enters the mining phase, it should be developed in a way which demonstrably increases energy independence of Slovakia, will have positive effects on economic interests of Slovakia and will create new jobs in eastern Slovakia.

Dorian L. (Dusty) Nicol, European Uranium's president and chief executive officer, said: "The signing of this memorandum of understanding with the Slovak Ministry of Economy represents a significant milestone in our advancement of the Kuriskova project. We are confident that our ongoing feasibility study and environmental impact assessment will demonstrate that the project can be permitted and developed in a sustainable way for the benefit of Slovakia's energy security and the economy of the Kosice region in eastern Slovakia. We will continue to advance the project in a way that aligns the interests of European Uranium's shareholders with those of the Slovak Republic and of eastern Slovakia."

We seek Safe Harbor.