Uranium Energy Corp to Commence Drilling at Nichols Project in South Texas

Wednesday, August 13th 2008

Uranium Energy Corp announce the finalization of drilling plans for the Company’s 100%-owned Nichols Project in Karnes County, Texas. The plan calls for 30 exploration holes for a total of approximately 18,000 feet of drilling. Permitting has been submitted and approved by the Texas Railroad Commission, Division of Surface Mining. Development of the Nichols Project aligns with the Company’s plan to establish satellite facilities for its advanced Goliad ISR Uranium Project. Drilling at Nichols is scheduled to commence next week.

The Nichols Project consists of 900 acres, and is located within the heart of the historic Karnes County uranium mining district. Karnes County is immediately adjacent to Goliad County, the site of the Company’s Goliad ISR Project. The Nichols Project was originally explored by Texaco Uranium (now ChevronTexaco), and reportedly contains an historic resource of 1.2 million pounds of e-U(3)O(8). Uranium Energy’s initial assessment of the historic data, the property and regional geology at Nichols indicates an excellent opportunity to expand on the resource work performed by Texaco. Following completion of the drilling program, the Company plans to have an independent Technical Report prepared under NI 43-101 guidelines.

The foregoing historical resource estimate for the Nichols Project was completed prior to the implementation of NI 43-101 standards. Given the quality of the historic work, the Company believes the resource estimate to be relevant, however a qualified person has not completed sufficient work to classify the historic mineral resources as current mineral resources, and the estimate should not be relied upon.

Data reviewed to date, including Texaco data, and geophysical logs from oil wells in the immediate area of the deposit, indicate that the historic mineralization lies within the Tertiary-age Jackson Formation, and occurs at an average depth of 440 feet. Historic reports in the Company’s possession indicate that Texaco Uranium had planned to recover the uranium at the Nichols site using In-Situ Recovery (ISR) mining methods.

Harry Anthony, Chief Operating Officer, stated, “Strategically, the Goliad ISR Project is central to a great number of uranium resource sites in South Texas. Nichols is the Company’s first project that may become a satellite development site with the capacity to feed material for processing at the central plant. This is one reason this drilling program is exciting for the Company. Several additional nearby sites are under review for near-term drilling.”

The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 and reviewed by Clyde L. Yancey, P.G., Vice President-Exploration for Uranium Energy Corp, a qualified person under NI 43-101.

Uranium Energy Corp is a US-based resource company with the objective of becoming a near-term ISR uranium producer in the United States. Utilizing its extensive information library of historic uranium exploration and development work, the Company has acquired and is advancing uranium properties throughout the southwestern US. A Draft Mine Permit was recently issued for the Company’s lead project, the Goliad ISR Uranium Project in south Texas. Operational management is comprised of pre-eminent uranium mining and exploration professionals whose collective experience in this industry gives the Company ongoing uranium mine-finding and mine development expertise.