Dr. Richard Spencer reports

U3O8 CORP. TO TEST THE EFFICIENCY OF U-PGRADE PROCESS TO FURTHER CONCENTRATE URANIUM-VANADIUM AT ITS LAGUNA SALADA DEPOSIT

U3O8 Corp. has requested Marenica Energy Ltd. to undertake test work to determine the efficiency of its U-pgrade technology to generate a richer uranium-vanadium concentrate than that modelled in the preliminary economic assessment (PEA) on the Laguna Salada deposit dated Sept. 18, 2014. This test work constitutes one component of a strategy aimed at reducing the estimated cost of extraction of uranium and vanadium at Laguna Salada.

"Our Laguna Salada deposit, in which uranium and vanadium is concentrated in the sandy material between pebbles within a few metres of surface in a flat, gravel plain, affords us opportunities of leveraging the deposit's remarkable simplicity to capture potential production cost savings," said Dr. Richard Spencer, president and chief executive officer of U3O8. "The efficiency of the U-pgrade process has led to significant reductions in estimated operating and capital costs in a deposit in Namibia that shares some of Laguna Salada's characteristics. If the Laguna Salada deposit is amenable to this technology, significant capital and operating cost savings could be realized as compared with the PEA estimates, which would substantially improve project's economics and leverage our exploration potential in the region."

Beneficiation characteristics of the Laguna Salada gravel

The model constructed for the PEA on the Laguna Salada deposit used the results from metallurgical test work that showed that scrubbing and screening of Laguna Salada gravel resulted in 82 per cent of the deposit's uranium and 33 per cent of its vanadium concentrated in 9 per cent of the gravel's original mass. As a means of illustrating the potentially greater efficiency of the U-pgrade process, test work on Deep Yellow Ltd.'s Tumas deposit in Namibia resulted in 82 per cent of the uranium being concentrated in only 2 per cent of the mass of the ore. The small mass of the concentrate generated by test work on Tumas ore should reduce capital and operating costs due to the significantly smaller installations required.

Technical information

Dr. Spencer, PGeo, CGeol, president and CEO 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

U3O8 is focused on exploration and development of deposits of uranium and associated commodities in South America. The company's mineral resources estimates were made in accordance with National Instrument 43-101, and are contained in three deposits: Laguna Salada in Argentina, Berlin in Colombia and Kurupung in Guyana.

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