Clyde Gillespie Joins U.S. Energy Corp.

Clyde Gillespie Joins U.S. Energy Corp.

U.S. Energy Corp. and Crested Corp. , natural resource exploration and development companies, today announced that Mr. Clyde Gillespie has been hired to be the Project Manager for the Lucky Jack Molybdenum Project in Colorado for the Companies’ U.S. Moly Corp. subsidiary.

Mr. Gillespie comes to the company from Kinross Gold Corporation (Kettle River Operations) as the Buckhorn Project Manager/Environmental Manager where his responsibilities included engineering design, permitting, and construction of the Buckhorn Mountain Project for mining and milling gold. He developed the project budget, schedule and cost accounting system for that project. Mr. Gillespie will coordinate similar efforts to obtain public support and work cooperatively with non-government organizations to address concerns and interact with the media and environmental groups on the Project. At Kettle River, he was responsible for obtaining required permits for the Buckhorn Mountain Project and the oversight of environmental compliance at the Kettle River Operations. He also oversaw design, permitting, construction and operation of three biological water treatment plants for operating and reclamation projects. The Buckhorn Mountain Project received its major permit in September 2006.

Mr. Gillespie has an extensive background as a specialist in environmental engineering and management. Over the past thirteen years (from 1993 to present), he had the responsibility in obtaining required permits to allow development of two sensitive mining projects, including compliance with environmental permit conditions. He has extensive experience in the pursuit of completion of a Supplemental Environmental Impact Statement (SEIS) and federal Environmental Assessment (EA) while expediting the process to obtain federal, state and local permits required to construct and operate an underground gold mine, ore transportation to the existing mill, along with design and permitting for an expansion of the tailing impoundment.

“We are pleased to bring someone with Clyde’s expertise on board with U.S. Moly Corp.,” stated Mark Larsen, President of both U.S. Energy Corp. and U.S. Moly Corp. “Clyde’s extensive experience in the fields of permitting and engineering will surely enhance our efforts to move the Lucky Jack project forward in a positive light. He has worked on mineral projects in sensitive areas before and has found success based on his sensible approach to solutions. With today’s announcement of our pending transaction with Kobex Resources Ltd., we look to Clyde to lead our permitting efforts and to manage the project from a local perspective hand in hand with the communities and the Kobex team.

“Ownership of the Lucky Jack molybdenum deposit was returned to U.S. Energy Corp. and Crested Corp. on February 28, 2006. U.S. Moly Corp. was then formed by the companies to identify and pursue the most effective means of realizing the value inherent in the property,” added Larsen. “With Mr. Gillespie on board, we will continue to evaluate the timing of all components related to the commencement of permitting the moly property for production and the commissioning of a full mine/mill feasibility study. This is timely and appropriate since the price of molybdic oxide has risen from approximately $5.00 a pound three years ago to over $27.00 per pound today,” concluded Larsen.


U.S. Energy Corp. and its majority-owned subsidiary, Crested Corp., are engaged in a joint venture to conduct various business operations as USE/CC. Through their subsidiaries, Sutter Gold Mining Inc., Plateau Resources Limited, Inc., U.S. Moly Corp, U.S. Uranium Ltd. and USE/CC, they own various interests or properties prospective for gold, uranium, vanadium and molybdenum.

This news release includes statements which may constitute “forward-looking” statements, usually containing the words “believe,” “estimate,” “project,” “expect,” or similar expressions. These statements are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, future trends in mineral prices, the availability of capital, competitive factors, and other risks.

The profitable mining and processing of uranium and vanadium will depend on many factors: Obtaining properties in proximity to the Shootaring mill in southeastern Utah to keep transportation costs economic; delineation through extensive drilling and sampling of sufficient volumes of mineralized material, with sufficient grades, to make mining and processing economic over time; continued sustained high prices for uranium oxide and vanadium; obtaining the capital required to upgrade the Shootaring mill and add a vanadium circuit, and obtaining and continued compliance with operating permits.

The profitable mining and processing of gold will depend on many factors, including receipt of final permits and keeping in compliance with permit conditions; delineation through extensive drilling and sampling of sufficient volumes of mineralized material, with sufficient grades, to make mining and processing economic over time; continued sustained high prices for gold, and obtaining the capital required to initiate and sustain mining operations, and build and operate a gold processing mill.

We have not yet obtained feasibility studies on any of our mineral properties. These studies would establish the economic viability, or not, of the different properties based on extensive drilling and sampling; the design and costs to build and operate gold and uranium/vanadium mills; the cost of capital, and other factors. Feasibility studies can take many months to complete. We have not established any reserves (economic deposits of mineralized materials) on any of our uranium/vanadium or gold properties, and future studies may indicate that some or all of the properties will not be economic to put into production. The molybdenum property has had extensive work conducted by prior owners to establish the deposits of molybdenum, mine planning and other ancillary activities. This data will have to be updated to determine the viability of starting mining and milling operations. Obtaining mining and other permits to begin mining the molybdenum property may be very difficult, and, like any mining operation, capital requirements for a molybdenum mining operations will be substantial.

By making these forward-looking statements, the Companies undertake no obligation to update these statements for revision or changes after the date of this release.

Source: U.S. Energy Corp.

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