TORONTO, ONTARIO--(Marketwired - Oct. 6, 2014) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES

Purepoint Uranium Group Inc. (TSX VENTURE:PTU) (the "Company"), today announced that it will be offering rights (the "Rights Offering") to holders of its common shares (the "Common Shares") of record at the close of business on October 24, 2014 (the "Record Date"). The rights issued under the Rights Offering (the "Rights") will expire on November 21, 2014 (the "Rights Expiry Date"). The Rights Offering will be conducted in all of the provinces and territories of Canada.

"Raising capital through this mechanism allows our shareholders the opportunity to participate equitably while offering a longer term incentive in the form of warrants, an instrument not typically available to the general public," said Chris Frostad, President & CEO of Purepoint. "This is particularly important now as we prepare to follow up on this year's Spitfire Discovery on the Patterson Lake trend of our Hook Lake project."

Each registered shareholder of Common Shares on the Record Date will receive one Right for each Common Share held by such shareholder. Eight (8) Rights plus the sum of $0.05 will entitle the Rights holder to subscribe for one unit of the Company (a "Unit") which will be comprised of one (1) Common Share and one half (1/2) of a warrant. Each whole warrant will entitle the holder to purchase an additional Common Share (i) at an exercise price of $0.08 per Common Share at any time from the date of issue of the Warrant until 5:00 p.m. (Toronto time) on the date that is six (6) months from the date of issue, or (ii) at an exercise price of $0.10 per Common Share at any time from the date that is the first day of the seventh (7th) month from the date of issue until 5:00 p.m. (Toronto time) of the date that is twenty four (24) months from the date of issue. The Rights issued under the Rights Offering will be evidenced by transferable rights certificates (each, a "Rights Certificate"), and will expire at 5:00 p.m. (Toronto time) on the Rights Expiry Date, after which time unexercised Rights will be void and of no value.

Eligible shareholders are entitled to subscribe for additional Units, subject to certain limitations set out in the Company's Rights Offering circular (the "Rights Offering Circular"). A copy of the Rights Offering Circular has been filed on www.sedar.com, and together with a Rights Certificate, will be mailed to each of the eligible shareholders of the Company after the Record Date. Registered shareholders wishing to exercise their Rights must forward the completed Rights Certificates, together with the applicable funds to CST Trust Company, the rights agent of the Company, on or before the Rights Expiry Date. Shareholders who own their Common Shares through an intermediary, such as a bank, trust company, securities dealer or broker, will receive materials and instructions from their intermediary.

A fully subscribed Rights Offering is expected to generate gross proceeds of approximately $768,620.10. Up to $445,000 of the net proceeds raised will be used for general corporate and administrative expenses of the Company. Any net proceeds in excess of $445,000 will be used by the Company for its proposed Hook Lake exploration program for 2015 as more fully disclosed in the Rights Offering Circular. While the Corporation intends to spend the available funds as set forth above, there may be circumstances where, for sound business reasons, a reallocation of the available funds may be necessary. In any event, the available funds will be used by the Corporation in furtherance of its business.

The Company has not entered, and does not intend to enter, into a stand-by commitment agreement with any person or company to purchase any Units not otherwise subscribed for and purchased on the exercise of Rights pursuant to this Rights Offering.

It is anticipated that the Rights will be posted for trading on the TSX Venture Exchange on the second trading day preceding the Record Date and will trade under the symbol "PTU.RT". Trading of the Rights is expected to continue until 12:00 noon (Toronto time) on the Rights Expiry Date.

No. U.S. Registration

The securities offered have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the benefit of U.S. persons except in certain transactions exempt from the registration requirements of such Act. This news release shall not constitute an offer to sell nor the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.

About Purepoint Uranium Group Inc.

Purepoint Uranium Group Inc. is focused on the precision exploration of its eight projects in the Canadian Athabasca Basin. Purepoint proudly maintains project ventures in the Basin with two of the largest uranium producers in the world, Cameco Corporation and AREVA. Established in the Athabasca Basin well before the initial resurgence in uranium earlier last decade, Purepoint is actively advancing a large portfolio of multiple drill targets in the world's richest uranium region.

Disclosure regarding forward-looking statements

This press release contains forward-looking statements, which reflect the Company's current expectations regarding future events. The forward-looking statements involve risks and uncertainties. Actual events could differ materially from those projected herein. Investors should consult the Company's Rights Offering Circular for additional information on risks and uncertainties relating to these forward-looking statements. The reader is cautioned not to rely on these forward-looking statements. The Company disclaims any obligation to update these forward-looking statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Purepoint Uranium Group Inc.
Chris Frostad
President & CEO
(416) 603-8368, Ext. 200
[email protected]