JNR Provides Update on Newfoundland Uranium Exploration

JNR Provides Update on Newfoundland Uranium Exploration

Friday, August 29th 2008

JNR Resources Inc. provide the following update on its uranium exploration activities in central and western Newfoundland. The Company is actively exploring two projects: Topsails and Rocky Brook.

The 278,000-hectare Topsails project is a 50/50 alliance between the Company and Altius Resources Inc. (jointly the ‘Companies’), which was established to explore for volcanic-hosted uranium deposits in a defined area of west-central Newfoundland near the mining community of Buchans.

Analytical results from a property-wide lake sediment geochemical survey completed this spring indicate anomalous uranium values with associated molybdenum and fluorine in a number of areas, the largest being 20 by 10 kilometres in size. With background values less than 10 ppm, anomalous uranium values of greater than 30 ppm to a maximum of 535 ppm have been identified in more than 30 lakes. These samples combined with historical surveys highlight four distinct areas of extensive uranium-molybdenum enrichment. The geochemically anomalous lakes lie within or adjacent to granitic rocks related to the caldera complexes targeted for exploration, and confirm the prospectivity of these rocks for hosting volcanic-related uranium mineralization.

It should be noted that lakes in the vicinity of uranium deposits in the prolific Athabasca Basin are commonly anomalous in uranium and pathfinder elements associated with the mineralization. Molybdenum and fluorine are common pathfinder elements diagnostic of volcanic-hosted uranium deposits. Furthermore, volcanic-hosted uranium deposits are a significant source of high-tonnage moderate-grade uranium, one of the best examples of which is the Streltsovka caldera, Russia’s largest uranium resource.

The Companies have also received and interpreted the preliminary data from a detailed 17,500 line-kilometre airborne radiometric and magnetic survey, and have identified fourteen areas for immediate follow-up. To that end, an extensive prospecting and geological mapping campaign was initiated in early July and will continue through to late October. The focus of the campaign is on the anomalous areas identified by the airborne and lake sediment surveys.

The Companies have also completed a property-wide water sampling program on the Rocky Brook project located in western Newfoundland. Exploration at Rocky Brook is focused on the discovery of bedrock sources for two discrete high-grade boulder clusters in glacial till, with reported historical assays ranging from 1% to more than 10% U(3)O8, as well as very high-grade silver contents. JNR has an option to earn a 70% interest in this project from Altius.

The water sampling program was designed to assist in targeting future drill campaigns using innovative geochemical procedures and modern analytical techniques in the primarily bog-covered terrain of the prospective Deer Lake Basin. Analytical results have been submitted to a known expert in the interpretation of geochemical data from this sample medium for review and recommendations.

Drilling to date, including the 82-hole (2,482 metres) program in 2007, has identified two areas of low level anomalous radioactivity at or near the overburden-bedrock interface. Both areas lie proximal to the high-grade boulder clusters. Several geochemically-enriched fault structures and/or redox alteration fronts thought to possibly control the high-grade uranium-silver mineralization have also been defined. Structural interpretation and the development of a 3D model utilizing all downhole data is in progress and expected to be completed prior to the next drilling campaign.

Anomalous uranium, copper and silver values were obtained in drill core from several of the 2007 drill holes at Rocky Brook, the most significant of which are narrow intervals in four holes drilled in the vicinity of the Birchy Hills and Wigwam Brook boulder fields. RB-07-144 and RB-07-152, drilled up ice of the Birchy Hill showings, intersected 0.5-metre intervals returning 45.2 ppm U, 202 ppm Cu, 4.9 ppm Ag and 15.3 ppm U, 302 ppm Cu and 6.9 ppm Ag, respectively. RB-07-192 and RB-07-196, drilled in the vicinity of the Wigwam Brook mineralized boulder field, intersected 0.5-metre intervals of 49.9 ppm U, 5.2 ppm Ag and 62.7 ppm U, 310 ppm Cu, respectively.

Further results will be released as they become available.

JNR is led by a highly experienced management team with proven discovery success in uranium exploration. In addition to its projects in Newfoundland, the Company has an interest in 13 properties totalling some 357,500 hectares of highly prospective ground in the renowned Athabasca Basin of northern Saskatchewan.

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 at: www.jnrresources.com/i/pdf/JNR-QAQC.pdf. A glossary of the technical terms included in this release can be found on the Company’s website at: www.jnrresources.com/s/Glossary.asp.

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