JNR operator drills 1.4 m of 0.028% eU3O8 at South Fork

2008-08-25 10:13 ET - News Release

Also News Release (C-UPC) Uranium Power Corp

Mr. Rick Kusmirski of JNR reports

JNR ANNOUNCES DRILLING RESULTS AT SOUTH FORK URANIUM PROJECT

JNR Resources Inc. has been advised by project operator Uranium Power Corp. that drilling has been completed on its South Fork uranium project in southwest Saskatchewan. Two drill rigs were contracted from Layne Christensen Drilling of Aurora, Colo., to complete this program, which consisted of 45 rotary drill holes totalling 5,402 metres.

The drilling program focused on the largest paleochannel in the Frenchman and Ravenscrag formations, as interpreted from a Fugro Tempest airborne EM survey. These formations are believed to have the potential to host rollfront-style uranium mineralization, similar to that found in the prolific Powder River basin of Wyoming.

Four of the drill holes intersected significant uranium mineralization in sandstones of the Ravenscrag formation. The best intersection was obtained in SF-1042 at 66.8 metres vertical depth, returning an average grade of 0.028 per cent eU3O8 over 1.4 metres, including 0.038 per cent eU3O8 over 0.7 metre. Additional mineralized intersections ranged from 1.4 metres grading 0.014 per cent eU3O8 to 0.7 metre grading 0.025 per cent eU3O8.

Of the remaining 41 drill holes, nine intersected anomalous radioactivity (greater than two times background), 14 are considered to be weakly anomalous (two times background) and the remaining 18 were barren.

Chris M. Healey, PGeo, president of UPC, commented, "Given the early stage of the exploration of this large property, it is very encouraging to see grades approaching those found in economic deposits in other parts of the world in several of our drill holes."

               2008 ROTARY DRILLING RESULTS

Hole No.     From (m)    To (m)     Length (m)  % eU3O8

SF-1039       40.8        41.1         0.3        0.023
SF-1040       31.2        31.9         0.7        0.025
              72.1        73.5         1.4        0.014
SF-1041       38.0        38.8         0.8        0.024
              43.9        44.6         0.7        0.022
SF-1042       66.8        68.0         1.2        0.028
including                              0.7        0.038

The companies have increased their landholding in the area to fully cover all of the targets identified by the airborne survey. The South Fork project now consists of about 76 claims, totalling approximately 64,000 hectares.

UPC can earn up to a 65-per-cent interest in the South Fork property by reimbursing JNR for prior expenditures (completed) and by spending $2.5-million on exploration activities by Jan. 25, 2011. Under a subsequent agreement, Mega Uranium Ltd. has the right to acquire 50 per cent of UPC's interest.

All holes were drilled at minus-90-degree dip. Lengths presented represent downhole measurements and are estimated to approximate true width. Grades are reported as equivalent uranium (eU3O8) as determined by downhole radiometric logging equipment. Contract logging services were provided by Century Wireline Services of Penhold, Alta.

JNR's vice-president of exploration, David L. Billard, PGeo, is the qualified person responsible for the technical data presented in this release. All technical information for the company's exploration projects is obtained and reported under a formal quality assurance and quality control program, details of which are presented on the company's website. A glossary of the technical terms included in this release can be found on the company's website.

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