Mr. Chris Huggins reports

GENERATION URANIUM DISCUSSES VGR TREND, A HIGH PRIORITY TARGET FOR HIGH-GRADE ATHABASCA BASIN STYLE MINERALIZATION

Generation Uranium Inc.'s new geological insights have confirmed the VGR trend as one of the most prospective targets for high-grade, unconformity style uranium mineralization outside the Athabasca basin. Located within the Yathkyed sub-basin on the company's wholly owned Yath property, the VGR trend is one of 17 priority targets defined through Generation's comprehensive reinterpretation of historical data.

The VGR trend spans over five kilometres along a reactivated basement fault and exhibits all the hallmarks of a world-class uranium system. The 2012 field season saw 15 reverse circulation (RC) holes drilled totalling 2,595 metres, with an average hole depth of 200 metres.

Seven of the 2012 RC drill holes returned elevated radioactivity, while historic surface prospecting gave readings up to 15,000 cps (counts per second), with uranium assays up to 3.75 per cent U3O8 (triuranium octoxide). Geological modelling and seismic data suggest the unconformity dips northwest and may lie at depths of 400 metres, meaning the basal unconformity -- typically the most prospective zone for high-grade uranium-has yet to be intersected as prior drilling did not exceed 200 metres depth.

Generation believes diamond drilling is now warranted to fully evaluate the VGR trend, and unlock the deeper potential of the unconformity zone. Drill permits have been submitted for the Yath project; the company will provide updates as they are available.

Key geological and geophysical indicators include:

• Conductive fault zones with widespread surface mineralization;
• Strong gravity anomalies linked to clay alteration;
• Steeply dipping carbonate/hematite veins hosting uranium and sulphide mineralization;
• Radioactive boulders and structures traceable over three kilometres.

While the shotgun seismic reflection imaging completed by prior operators was moderately successful in identifying the unconformity at 400 m, Generation will evaluate higher energy seismic reflection methods for deeper, higher-resolution imaging of targets.

With 17 exploration areas of interest currently identified across the Yath property, and growing evidence of a broader uranium system -- the region is poised to emerge as Canada's next major uranium district.

"Every layer of data -- from gravity surveys to seismic reflection and geochemical assays -- points to the VGR trend as a high-priority target, one of many we intend to pursue," said Chris Huggins, Generation chief executive officer. "We're standing on the cusp of a potentially district-scale uranium discovery."

The company also announces that it has granted a total of 800,000 stock options to certain directors, officers and consultants of the company. Each option is exercisable to acquire one common share of the company at a price of nine cents per share for a period of two years from the date of grant. The options are subject to the terms of the company's stock option plan and the policies of the TSX Venture Exchange.

Qualified person

Derrick Strickland is a non-independent and a qualified person as defined by National Instrument 43-101 (Standards of Disclosure for Mineral Projects), has reviewed and approved the scientific and technical information contained in this news release.

About Generation Uranium Inc.

Generation Uranium is a Canadian resource exploration company with a focus on uranium. The company is advancing its 100-per-cent-owned Yath uranium project, strategically located in Nunavut's Angilak district, one of Canada's most active emerging uranium camps. With a robust pipeline of high-priority exploration targets and exposure to proven uranium-bearing corridors, Generation is well positioned to contribute to the future supply of clean nuclear energy.

We seek Safe Harbor.