Mr. Roger Lemaitre reports

HIGHEST GRADE HOLE AT CHRISTIE LAKE PROJECT -- 9.3% U3O8 OVER 9.8 M

UEX Corp. has released the chemical assay results of the first three drill holes of 2016 completed this winter on the Christie Lake project, where a $2.75-million drill program is scheduled to recommence in the first week of June. The project is owned 10 per cent by UEX and 90 per cent by JCU (Canada) Exploration Company Ltd. UEX holds an option to earn up to a 70-per-cent interest in the project.

Radiometric equivalent grades (REGs) from downhole probe results were previously reported on April 13, 2016. Systematic assays were collected from the mineralized zones to confirm the REGs. Due to the significant uranium grades encountered, the REGs underreported actual U3O8 grades.

Assay highlights

Highlighting the assay results was hole CB-092, which returned a much-higher-than-expected composite assay intersection when compared with the previously reported REGs: 9.30 per cent U3O8 over a 9.8-metre interval from 496.6 to 504.4 metres, including: 43.71 per cent U3O8 over 2.0 m from 500.1 to 502.1 m.

This is a substantially higher composite grade than the radiometric equivalent grade of 4.27 per cent equivalent U3O8 over 10.2 m, as previously reported on April 13, 2016. The assay results of CB-092 confirm it is the highest-grade hole ever drilled on the Christie Lake project to date.

Hole CB-090A returned a composite assay grade of: 0.61 per cent U3O8 over 9.8 m from 534.2 to 544.0 m, including: 5.33 per cent U3O8 over 0.5 m.

The composite assay grade of CB-090A also exceeded the previously reported radiometric equivalent grade of 0.38 per cent eU3O8 over 9.1 m.

Hole CB-091B was previously reported to have hosted minor uranium mineralization that occurred in several narrow and widely spaced intervals. The assay results of CB-091B showed higher-than-anticipated grades in these intervals that generated a composite assay grade of 0.28 per cent U3O8 over 7.7 m from 600.0 to 607.7 m.

Upon receiving the assay results, Roger Lemaitre, president and chief executive officer of UEX, stated: "The return of such impressive assays at Christie Lake showcases the unusually high-grade potential of the Christie Lake deposits. Our exploration team is eager to get back in the field and pick up where they left off in April."

About radiometric equivalent grades and assay grades

While using downhole probes to calculate radiometric equivalent grades is a common practice by uranium mining companies in the Athabasca basin, downhole probes are often unable to accurately measure uranium concentration within high-grade intervals, due to a process called saturation, which occurs when light emitted by the probe's scintillator overwhelms the photomultiplier tube's ability to count individual light flashes (the scintillator flashes light every time it is struck by a gamma radiation particle).

In the case of hole CB-092, the high-grade core of the mineralized interval returned individual assay sample grades of 5.63 per cent over 0.5 m, 39.4 per cent over 0.5 m, 59.8 per cent over 0.5 m and 70.0 per cent U3O8 over 0.5 m. These assay results confirm the high-grade uranium potential of the Christie Lake project, which occurs along the same P2 fault trend that hosts Cameco's McArthur River mine.

Sample collection and compositing

Drill core is split in half sections on site, and one-half is collected for U3O8 analysis, with the other half core remaining on site for reference. Where possible, samples are collected at a standardized 0.5-metre interval through zones of mineralization, but respect geological units and intervals.

The samples are shipped to the geoanalytical laboratory at the Saskatchewan Research Council (SRC) in Saskatoon, Sask. Analysis at the SRC laboratory for uranium as U3O8 was completed using the ICP-OES method. The SRC geoanalytical laboratory is an ISO/IEC 17025:2005-accredited facility (No. 537) by the Standards Council of Canada.

Duplicate samples were sent to the SRC environmental analytical laboratory in Saskatoon, Sask., for check assaying using the neutron activation analysis technique through SRC's Slowpoke-2 reactor.

Assay intervals were composited using a cut-off grade of 0.1 per cent U3O8. All depth measurements and sample intervals reported are downhole measurements from drill core. True thickness of the ore zones has yet to be determined.

About the Christie Lake project

UEX currently holds a 10-per-cent interest in the Christie Lake project and is working under an option agreement to earn up to a 70-per-cent interest. The project is located approximately nine kilometres northeast and along strike of Cameco's McArthur River mine, the world's largest uranium producer. The P2 fault, the controlling structure for all of the McArthur River deposits, continues to the northeast beyond the mine. UEX believes that through a series of en echelon steps, the northeast strike extension of the P2 fault not only crosses the project, but also controls the two known uranium deposits on Christie Lake: the Paul Bay and Ken Pen deposits.

The Paul Bay and Ken Pen deposits are estimated to host a combined 20.87 million pounds of U3O8 at an average grade of 3.22 per cent U3O8 and were discovered in 1989 and 1993, respectively. This is a historical resource estimation, which does not use resource classifications consistent with NI 43-101. The historical resource estimate was presented in an internal report titled Christie Lake project, geological resource estimate, completed by PNC Tono Geoscience Center, resource analysis group, dated Sept. 12, 1997. The historical resource was calculated using a 3-D block model using block sizes of two m by two m by two m, and block grades interpolated using the inverse-distance-squared method over a circular search radius of 25 m and one-metre height. Specific gravities for each deposit were averaged from specific gravity measures of individual samples collected for assay. UEX plans to complete additional infill drilling on the deposits during the option earn-in period to upgrade these historical resources to indicated and inferred. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves. UEX is not treating the historical estimate as current mineral reserves or mineral resources.

Qualified persons and data acquisition

Technical information in this news release has been reviewed and approved by Mr. Lemaitre, PEng, PGeo, UEX's president and chief executive officer, and Trevor Perkins, PGeo, UEX's exploration manager, who are both considered to be a qualified person as defined by National Instrument 43-101.

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