Dr. Richard Spencer reports

U3O8 CORP. REPORTS THE START OF GEOPHYSICAL TEST WORK ON ITS LAGUNA SALADA URANIUM-VANADIUM DEPOSIT

A trial has commenced to test the effectiveness of geophysics to detect channels at the base of the gravel layer at U3O8 Corp.'s Laguna Salada deposit in Argentina. Exploration elsewhere on the property has shown that channels contain higher-grade uranium-vanadium mineralization that could further improve the positive economics of the deposit.

Geophysics program

The National Instrument 43-101 resource at Laguna Salada was based principally on a one-metre-thick layer of uranium-vanadium-bearing gravel that extends from surface to a maximum depth of only three metres. Exploration that was completed following the resource estimate revealed a second layer in which uranium and vanadium are confined to channels at the base of the gravel. The second layer contains generally higher uranium-vanadium grades that may result in the estimated cash cost of production being even lower than for the near-surface material on which the preliminary economic assessment (PEA) was based.

Trials are under way to determine the effectiveness of electrical resistivity to detect these buried channels. The testwork is being done in an area within the Laguna Salada deposit where drilling detected channels that contain higher-grade mineralization. The testwork is expected to be completed in mid-February, and if successful, a more extensive geophysical program will be considered to provide specific targets for exploration by pitting with an excavator.

Update on proof-of-concept work

Having studied the testwork on which the PEA was based, and after spending three weeks in Argentina, John Rae has selected and ordered the equipment required to separate the fine-grained uranium-vanadium from the pebbles in Laguna Salada gravel. Mr. Rae is a mining engineer who has 40 years of experience in the extraction of various commodities from gravel. The proof-of-concept testwork will continue through the first quarter of 2018 and results will be reported as they become available.

Russian uranium producer to explore in Chubut province

A Russian state-owned uranium production company has announced that it plans to spend up to $250-million (U.S.) in exploration for, and development of, uranium deposits that are amenable to in situ leach extraction in Chubut province in southern Argentina. U3O8 holds approximately 40,000 square kilometres (approximately 15,000 square miles) of exploration concessions in the area that is being targeted for this type of sandstone-hosted mineralization that typically lies at approximately 100 to 150 m depth in the target area.

Despite the potential of the sandstone-hosted mineralization, U3O8 prioritized exploration at Laguna Salada where resource definition in the shallow-lying mineralization can be done more cost-effectively. In addition, Laguna Salada-style mineralization contains vanadium -- a fundamentally important byproduct both in terms of strengthening the economics of the deposit, and in providing a key commodity for construction steel and for industrial-scale vanadium redox batteries. The vanadium price has risen strongly over the last past year in response to a shortage of supply in the international vanadium market.

Technical information and cautionary note

A preliminary economic assessment is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the results of the PEA assessment will be realized.

Dr. Richard Spencer, PGeo, CGeol, president and chief executive officer of U3O8 and a qualified person as defined by National Instrument 43-101, has approved the technical information in this news release relating to the Laguna Salada deposit and the related PEA.

About U3O8 Corp.

U3O8 is focused on exploration and development of deposits of uranium and battery commodities in South America. The company's mineral resources estimates were made in accordance with NI 43-101 and are contained in three deposits:

• Laguna Salada deposit, Argentina: A PEA shows this near-surface, free-digging uranium-vanadium deposit has low-production-cost potential.
• Berlin deposit, Colombia: A PEA shows that Berlin also has low-cost uranium production potential due to revenue that would be generated from byproducts of phosphate, vanadium, nickel, rare earths (yttrium and neodymium) and other metals that occur within the deposit.
• Kurupung deposit, Guyana: A uranium resource has been estimated in four veins within a uranium-zirconium vein system.

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