VANCOUVER, BRITISH COLUMBIA--(Feb. 27, 2008) - UC Resources Ltd.:(TSX VENTURE:UC) ("UC" or "the Company") is pleased to provide the following updates.
UC Resources Ltd. has advised its partners, Spider Resources Inc. and KWG Resources Inc. that it will exercise its right to opt into year two of the McFaulds Lake option agreement in the James Bay Lowlands region of northern Ontario. As per the binding LOI between UC and Spider, UC is required to incur exploration expenditures of at least an additional $1 million on or before the second anniversary date of March 6, 2009, in order to earn an additional 15% vested interest in the Property, bringing UC's interest level to 25%. To date $500,000 of the $1 million second tranche has been spent. Should UC exercise its full commitment to the McFaulds Lake Project Property Joint Venture Agreement it will earn-in up to a 55% undivided interest in the property.
Further to news release dated January 17, 2008, UC is pleased to announce that a request has been given to Billiken Management to commence line cutting and ground geophysics as soon as possible on its first high priority identified target to be followed by ground geophysics work. The Aerotem2 identified target has been identified as being "on trend" with the Noront Eagle Two discovery and is located to the southwest on the property known as McFaulds West. All field operations are being conducted by Billiken Management on behalf of UC Resources and the company is presently reviewing and prioritizing numerous additional high priority targets that will require field work.
As announced in the January 17, 2008 press release, the La Yesca mill is being totally revamped after a major re-design. Initial site clearing and dismantling of the existing mill has begun, and assembly of the newly designed mill will begin in earnest in mid-March. To date a tank construction contractor, environmental assessment firm, electrical installation company, and engineering firms have been contracted and begun work. It's expected the company will start mill testing and training personnel in June, 2008. The company remains very optimistic that La Yesca has the potential to be a very profitable venture and certainly is a key component in the strategic development of UC Resources Mexican assets.
After a review of all of UC's exploration properties and prioritization of commitments, UC has decided not to continue with the La Dura LOI agreement.
UC Resources is an active explorer of base metals in the McFauld's Lake area, and an explorer and near term producer of precious metals in Mexico.
On behalf of the Board,
Jim Voisin, President & CEO
UC Resources Ltd.
Investors are invited to visit the UC Resources IR Hub at http://www.agoracom.com/ir/UCResources where they can post questions and receive answers or review questions and answers already posted by other investors. Alternatively, investors are able to e-mail all questions and correspondence to UC@agoracom.com where they can also request to be added to the investor e-mail list to receive all future press releases and updates in real time.
This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, Investors should review the Company's registered filings what are available at www.sedar.com.
FOR FURTHER INFORMATION PLEASE CONTACT: UC Resources Ltd.Brian GuskoCFOToll Free: 1-800-366-8566 (Canada & USA) Website: www.ucresources.net
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
