Following the announcement on May 5, 2009 of a maiden JORC compliant Inferred Mineral Resource for the Blackbush Prospect of 12Mt at an average grade of 224 ppm eU3O8 estimated to contain 2,700 tonnes U3O8, the company announced an exploration objective of 15-50Mt of mineralisation at a grade of 0.02 – 0.05% U3O8 (200-500 ppm U3O8).

The company believes this is confirmation of its comparison of the Pirie Basin to the ISR uranium Curnamona Province which hosts the Beverley and 4 Mile projects.

As a result of its ongoing exploration activity UraniumSA has;

Confirmed potentially economic uranium mineralisation by drilling over a 12km strike length.

Geological and geophysical interpretive models indicate the uranium mineralised zone extends for at least 32km along strike.

The predictive strength of the company’s interpretive models have been verified by recent drilling success rates. Three zones which were predicted to be mineralised all returned potential ore grade intersections.

Drilling 5.5 km south of Blackbush has returned a best intercept of; 12.9m at 290 ppm eU3O8, including 5m at 580 ppm, with a peak grade of 2,322 ppm (MRM098).

Drilling 2 km north of Blackbush has returned; 5.6m at 470 ppm eU3O8, with a peak grade of 1,290 ppm (MRM101).

The company is continuing its exploration work drilling very broadly spaced holes to continue to test its geological concepts and models.

The company anticipates that it will be able to continue to report similarly good results as it continues to drill test its exploration concepts and expand its identified mineralisation.

Exploration drilling continues to expand mineralization at Mullaquana Project. Drilling to the south and north of the Blackbush Prospect has continued to intersect potentially economic grades and thickness of uranium mineralisation, confirming the predictive strength of the geological models and ultimately leading to a significant increase in the company’s exploration objectives.

The company has now revised its exploration objectives1 upwards to between 50 to 80 million tonnes of uranium mineralisation at grades of between 0.01%eU3O8 (lower cut off grade) and 0.20% eU3O8 (grades from recent drilling).

This exploration objective is conceptual in nature and excludes the already defined Blackbush Inferred Resource of 12 Mt at 0.02% eU3O8 (224 ppm eU3O8) containing an estimated 2,700 tonnes U3O8.

Drilling has now established that potential economic grade uranium mineralisation is present in three additional areas:

– 5.5km south of the Blackbush Prospect in a profile of holes drilled at 800m separations along the southern boundary of the UraniumSA tenements. Three of five holes intersected potentially economic mineralisation, with the best result being hole MRM098 which intersected: 12.9m at an average grade 0.029%eU3O8 for a grade thickness of 0.38 m% eU3O8 , including 5.0m at an average grade of 0.058% eU3O8 and a peak grade of 0.232% eU3O8

– 2km north of the Blackbush Prospect the first of a profile of drill holes intersected potentially economic mineralisation in hole MRM101 which interescted: 5.6m at an average grade of 0.047% eU3O8 for a grade thickness of 0.26 m% eU3O8 with a peak grade of 0.129% eU3O8.

– South from the Blackbush Prospect in roll-front envelopes which extend for 3.5km. Potential ore grade intercepts were achieved in 5 of 13 holes drilled to completion, with the best result being hole MRM091 which intersected: 8.3m at an average grade of 0.013% eU3O8 for grade thickness of 0.11 m% eU3O8 with a peak grade of 0.027% eU3O8.