The initial observations from the RC drilling program provided visible indication of the potential for a significant graphite resource.

Till date, a total of thirteen holes into blocks C and D have been completed as part of RC drilling program.

Uranex CEO Rod Chittenden said, "The holes were spaced approximately 400m apart which gives us the strong possibility of hosting a significant graphite resource in Nachu."

Scheduled to continue in the coming weeks, the RC drilling program will testing all the zones of strong conductors.

In addition to allowing the geologists to make a visual assessment of the graphite content of the schists, the RC method of drilling will test the depth of mineralization in the various blocks.

Diamond drilling will be perform following determination of preferred blocks by geologists to obtain samples for grade analysis and metallurgical samples.