Mr. Drew Zimmerman reports

STALLION URANIUM SIGNS LOI FOR NON-CORE URANIUM PROJECTS IN EASTERN ATHABASCA BASIN

Stallion Uranium Corp. has entered into a non-binding letter of intent (the LOI), under which the company has granted an unnamed party (the optionor) the option to acquire a 100-per-cent interest in its eastern basin projects, comprising seven mineral claims totalling approximately 10,874 hectares (25,870 acres) and located in the province of Saskatchewan.

"The sale of Stallion's eastern Athabasca basin projects allow the company to focus on our core projects in the western Athabasca basin while seeing these projects advanced," commented Drew Zimmerman, chief executive officer. "We think this transaction provides both parties significant upside from a committed uranium exploration program in the eastern basin Athabasca basin."

Pursuant to the LOI, the optionor may acquire a 100-per-cent interest in the property by paying a total of $400,000 and issuing an aggregate of 2.5 million common shares in the capital of the optionor to the company, according to the following schedule:

• $400,000 on the closing of the transactions contemplated in the LOI;
• 500,000 shares on the date which is six months following the closing date;
• 500,000 shares on the date which is 12 months following the closing date;
• 500,000 shares on the date which is 18 months following the closing date;
• One million shares on the date which is 24 months following the closing date.

The company shall retain a royalty of 3 per cent of net smelter returns from minerals mined and removed from the property, of which the optionor may purchase up to 1.5 per cent at any time prior to commercial production on the property as follows: $500,000 for 0.5 per cent; $750,000 for an additional 0.5 per cent; and $1-million for an additional 0.5 per cent.

The LOI shall terminate if the parties have not entered into a definitive agreement within 30 days of the execution of the LOI. The definitive agreement is subject to the receipt of any third party consents or regulatory approvals, including but not limited to any necessary stock exchange approvals required by the company or the optionor, respectively.

The projects are located in the eastern Athabasca basin with the Wollaston and Mudjatik supergroups. The region has been the focus of uranium exploration over the last 50 years and is host to the world-class Cigar Lake and McArthur River uranium deposits which host over 550 million pounds of uranium. Uranium mineralization in the eastern Athabasca basin occurs in three deposit types: unconformity-hosted uranium which occur at the contact between the overlying Athabasca basin and the crystalline basement rocks, basement-hosted uranium which occur within the basement rocks, and sandstone-hosted uranium which occur perched in the Athabasca sandstone. Uranium mineralization is structurally controlled and utilizing the recent magnetic and electromagnetic data, structural areas have been identified for continued exploration.

Qualifying statement

The foregoing scientific and technical disclosures for Stallion Uranium have been reviewed by Darren Slugoski, PGeo, vice-president, exploration, a registered member of the Professional Engineers and Geoscientists of Saskatchewan. Mr. Slugoski is a qualified person as defined by National Instrument 43-101.

About Stallion Uranium Corp.

Stallion Uranium is working to fuel the future with uranium through the exploration of over 3,000 square kilometres in the Athabasca basin, home to the largest high-grade uranium deposits in the world. The company, with joint venture partner Atha Energy, holds the largest contiguous project in the western Athabasca basin adjacent to multiple high-grade discovery zones.

Stallion Uranium's leadership and advisory teams comprise uranium and precious metals exploration experts with the capital markets experience and the technical talent for acquiring and exploring early-stage properties.

Stallion offers optionality with two gold projects in Idaho and Nevada that neighbour world-class gold deposits offering exposure to upside potential from district advancement with limited capital expenditures.

We seek Safe Harbor.