Macusani Yellowcake Announces More High Grade Intersections at Kihitian Uranium Property, Peru: 8.0 Metres at 0.53% U3O8 (10.6 Pounds Per Ton)

Macusani Yellowcake Announces More High Grade Intersections at Kihitian Uranium Property, Peru: 8.0 Metres at 0.53% U3O8 (10.6 Pounds Per Ton)

Macusani Yellowcake Inc. is pleased to announce that drilling from the ongoing exploration program on Chilcuno zone on the Kihitian uranium property on the Macusani Plateau, Peru, has intersected additional shallow, high-grade uranium values with an intersection of 8.0 metres with weighted average grades of 0.53% U3O8 (10.6 lbs/ton). Details are shown in the table below.

These intercepts are interpreted as the extensions of the adits done by IPEN during 1980s at Chilcuno Chico and sampled by the Company during 2009 and published on the 13th of January, 2010 with grades of up to 10% U3O8 as channel samples.

Platform 10, where these two boreholes were drilled, is in the area of the adits and was drilled with the objective to demonstrate that the veins/”mantos” exposed by the adits represent only 1.5-1.8m, a fraction of the vertical exposure of the mineralised zone in the Chilcuno area of the Kihitian concession. As the drilling results demonstrated in the press releases issued to date (see September 30, 2010, November 26, 2010, December 21, 2010 and January 12, 2011 press releases) the mineralised area can be as thick as 22m within which the high-grade package is up to 7-8m thick displaying grades of multiple pounds of U3O8.

The final objective of these drill holes is to produce a mineral resource at Kihitian; however, the correlation between the thickness of the veins in the adits and in the drill holes was poor, necessitating the need to drill directly in the adits area. It is probable that none of these reported intersections represent true widths.

Also, the drilling in this zone is proving that the mineralised area is much thicker than the exposed veins in the older adits (see January 13, 2010 press release). The drilling at Kihitian during the last couple of months has consistently offered high-grade uranium grades and at much thicker intervals than exposed in the adits.

The drill program was designed to test for continuity and grade of the uranium mineralization within a shallow, sub-horizontal, 5 to 25 metre thick horizon (“A” level) of rhyolitic flows and minor pyroclastic sequences hosting “mantos”, fracture-filling, vertical joints and disseminated autunite, meta-autunite and weeksite. A similar but generally thicker horizon (“B” level) occurs approximately 75-100 metres lower stratigraphically, which has been intercepted to date in two boreholes, one with very high-grade U mineralization (see November 26, 2010 press release citing 7m grading 36 lbs/t U3O8 as part of a 65m thick continuously mineralized interval). The assay results from the second deeper hole is pending.

The shallow “manto” mineralization, which is usually sub-horizontal, was discovered and initially explored through adits by IPEN (Peruvian Nuclear Energy Institute) in early 1980′s and it usually dips between horizontal to 10-12 degrees.

The present drilling at Kihitian is part of a 20-platform plan. The two boreholes reported in this press release were drilled on Platform 10, located just south of the adits executed by IPEN in 1980s along a radiometric anomaly that runs on a southwest-northeast trend. The distance covered by these boreholes from the “mantos” outcrop is roughly 20m.

The Company’s CEO, Peter Hooper, stated, “The drilling results at Kihitian continue to demonstrate high-grade uranium intersections in the Chilcuno area and most importantly the fact that the mineralised intersections displayed by the drilling results are much thicker than the thickness of the same structures as displayed by the underground workings where only 1.5-1.8m have been exposed. These results coupled with previous drill results announced late last year and this year indicate the potential for a sizeable mineral resource at Kihitian of higher uranium grade.”

Quality Control and Analytical Procedures

Core samples have been crushed and representative samples analysed for Uranium (U) abundance and a suite of 40 elements. The necessary analytical quality control and assurance has been completed by insertion of reference material, duplicate samples and blank material. After crushing, the core is placed in sealed bags and shipped to the CIMM’s preparation laboratories in Juliaca. Following the preparation stage, the sample pulps are sent to CIMM analytical laboratory in Lima where U and a suite of forty other elements are analysed using ICP-MS methodology.

CIMM Peru is an ISO certified assay laboratory. The program is designed to include a comprehensive assay quality control routine comprising the systematic use of standards, blanks and field duplicate samples. Secondary laboratories are used for check assaying.

Qualified Person

Mr. Ian Foreman, P.Geo., of Foremost Geological Consulting, an independent consultant to the Company, is a Qualified Person as defined under National Instrument 43-101, and has reviewed the scientific and technical data contained in this release.

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