Mr. Chris Frostad reports

PUREPOINT URANIUM ANNOUNCES PRIVATE PLACEMENT

Purepoint Uranium Group Inc. has arranged a non-brokered private placement of up to 47,619,048 flow-through units at a price of 5.25 cents per unit for aggregate gross proceeds up to $2.5-million. Each flow-through unit consists of one common share of the company to be issued on a flow-through basis pursuant to the Income Tax Act (Canada) and one common share purchase warrant. Each warrant entitles its holder to purchase one common share of the company at an exercise price of seven cents for a period of 24 months from the date of issuance.

The net proceeds of the offering will be used for the exploration and advancement of the company's projects in the Athabasca basin, Saskatchewan. The gross proceeds of the flow-through shares sold under the offering will be used for Canadian exploration expenses (within the meaning of the Income Tax Act (Canada)) which qualify as a flow-through critical mineral mining expenditures for purposes of the Income Tax Act (Canada) related to the exploration program of the company to be conducted on its properties located in the province of Saskatchewan. The company will renounce such Canadian exploration expenses with an effective date of no later than Dec. 31, 2023. The Canadian exploration expenses to be renounced by the company will qualify for the critical mineral exploration tax credit under the Income Tax Act (Canada).

In connection with the offering, the company has agreed to pay to certain finders facilitating the offering, including Red Cloud Securities Inc., a cash commission equal to 6 per cent of the gross proceeds of the offering raised through the finders and issue to the finders non-transferable compensation warrants to purchase in aggregate such number of common shares of the company as equal to 6 per cent of the number of flow-through units sold through the finders under the offering. Each compensation warrant entitles its holder to purchase one compensation warrant share at an exercise price of 5.25 cents for a period of 24 months from the date of issuance.

The completion of the offering is subject to certain conditions, including, but not limited to, the receipt of all necessary regulatory and corporate approvals, including the approval of the listing of the flow-through shares, the warrant shares and the compensation warrant shares on the TSX Venture Exchange. Resale of the securities of the company distributed under the offering will be subject to a statutory hold period in Canada of four months and one day following the closing date of the offering.

About Purepoint Uranium Group Inc.

Purepoint Uranium Group actively operates a uranium exploration pipeline of nine advanced projects in Canada's Athabasca basin. In addition to its flagship joint venture project at Hook Lake with partners Cameco and Orano, and a second joint venture with Cameco at Smart Lake, Purepoint also holds seven 100-per-cent-owned projects with proven uranium-rich targets. With an aggressive exploration program under way on multiple projects, Purepoint is emerging as the pre-eminent uranium explorer in the world's richest uranium district.

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