Quest Uranium, Nebu sample up to 0.52% U3O8 at Nanuk

2008-11-20 08:37 ET - News Release

Also News Release (C-NBU) Nebu Resources Inc

Mr. Peter Cashin of Quest reports

QUEST URANIUM RECEIVES ENCOURAGING URANIUM RESULTS FROM GEORGE RIVER AREA PROJECTS, NORTHEASTERN QUEBEC

Quest Uranium Corp. and Nebu Resources Inc. have received encouraging geochemical results from the Nanuk property, which have confirmed the presence of extensive uranium mineralization on the property (see news in Stockwatch on Sept. 4, 2008). The mineralized area, traced continuously over a strike length in excess of 4.0 kilometres and over widths of 50 to 500 metres returned outcrop grab sample results of between 0.21% and 0.52% U3O8 (4.7 to 11.8 lbs/t) and bedrock channel sample results of up to 0.11% U3O8 (2.64 lbs/t) over 2.0 metres. In addition, an extensive uranium-mineralized boulder field defined over the DC zone (see Figure 2) returned in excess of 70 uraniferous boulders, 19 of which graded between 0.11% and 2.44% U3O8 (2.24 to 54.6 lbs/t). Anomalous radioactivity underlying the boulders is believed to reflect the in-situ presence of an extensive bedrock uranium zone.

Prospecting crews also discovered uranium (U), zirconium (Zr), yttrium (Y), niobium (Nb) and Rare Earth Element (REE) mineralization associated with a course-grained granitic body within the Stewart Lake claim block (Figure 1). Grades obtained from sampling of the area are similar to those reported for the Strange Lake deposit, Quebec and Thor Lake deposit, Northwest Territories. More exploration work will be required in 2009 to define the extent of the mineralized granite and the economic significance of the discovery.

"Management is extremely pleased with the success of the exploration program at George River and the results obtained to date," said Peter Cashin, Quest's President & CEO. "The mineralized area at Nanuk is very extensive and will require further evaluation in order to properly assess the economic impact of the numerous uranium zones identified there. The discovery of important concentrations of rare earth metals on the Stewart Lake property adds a significant new dimension to the economic potential of the area."

2008 EXPLORATION PROGRAM

Nanuk Property Results

The Nanuk Zone is a large area of uranium mineralization discovered in 2007. The uranium mineralization is hosted within leucogranites, intermingled with biotite gneisses. The mineralization discovered on the property is associated with strong radiometric anomalies.

Table 1 - Significant U3O8 Grab Sample Assays, Nanuk Property Exploration,
George River area, Quebec

---------------------------------------------------------------------------
                                                                         U
Sample Property Easting Northing  Rock Type   Sample   Zone       U  Assay
#                                                              (ppm)    (%)
---------------------------------------------------------------------------
202348    Nanuk  409574  6187068  Pegmatite Boulders  Nanuk    7130
                                                       Grid
---------------------------------------------------------------------------
202937    Nanuk  410783  6185241     leuco-  Outcrop     SW    2650
                                    granite           Nanuk
---------------------------------------------------------------------------
203227    Nanuk  410993  6189787     leuco-     grab  Willy    2170
                                    granite
---------------------------------------------------------------------------
203293    Nanuk  410537  6189796     leuco-     grab  Willy    2540
                                    granite
---------------------------------------------------------------------------
203397    Nanuk  408773  6192691     leuco-     grab  Willy    5180
                                    granite
---------------------------------------------------------------------------
206251    Nanuk  410559  6191425    granite  Boulder     DC    6080
---------------------------------------------------------------------------
206258    Nanuk  410502  6191413    granite  Boulder     DC    2430
---------------------------------------------------------------------------
206260    Nanuk  410492  6191389    granite  Boulder     DC greater   2.44
                                                               than
                                                              10000
---------------------------------------------------------------------------
206328    Nanuk  410567  6191453    granite  Angular     DC    2330
                                             Boulder
---------------------------------------------------------------------------
206341    Nanuk  410841  6191090    granite  Angular     DC    2520
                                             Boulder
---------------------------------------------------------------------------
206343    Nanuk  410838  6191515    granite  Angular     DC    2580
                                             Boulder
---------------------------------------------------------------------------
206346    Nanuk  410971  6191770    granite  Angular     DC    6160
                                             Boulder
---------------------------------------------------------------------------
206371    Nanuk  410953  6187678    granite  Outcrop     JM    4150
---------------------------------------------------------------------------
206375    Nanuk  411555  6186306    granite  Outcrop  Nanuk    2720
                                                       Grid
---------------------------------------------------------------------------
206379    Nanuk  411706  6185468    granite  Outcrop  Nanuk    3690
                                                       Grid
---------------------------------------------------------------------------
206385    Nanuk  408845  6192480    granite  Angular  NW of    3590
                                             Boulder     DC
---------------------------------------------------------------------------

(1) Assays performed by Actlabs of Ancaster, Ontario using the Delayed
    Neutron Count Method (DNC) and Fusion-XRF finish.

A total of 450 line kilometres of gridding was completed over the Nanuk mineralized region and follow-up detailed prospecting and geological mapping completed. Four new zones of uranium mineralization (Nanuk LK, DC, JM and SG, see Figure 2) were discovered to the north of previously-defined mineralized areas. In-fill prospecting and mapping shows excellent continuity to the mineralization between the new Nanuk JM and Willy (previously Nanuk 1) zones and has been traced at surface over widths of between 50 and 500 metres. Good continuity of the uraniferous zone over a minimum strike length of 4,000 metres has been observed. The most continuous uranium mineralization is associated with leucogranites that have been flooded by intense silica and biotite. Brecciated leucogranite is common in these areas. Biotite-rich and occasionally sulphide-bearing sedimentary gneisses are interleaved with the leucogranite and occur as large blocks within the intrusive host to mineralization.

Table 2 - Significant U3O8 Channel Sample Assays, Nanuk Property
 Exploration, George River area, Quebec

---------------------------------------------------------------------------
                                                    Channel
Sample #   Easting  Northing     Rock Type   Sample  Length    Zone      U
                                               Type      (m)          (ppm)
---------------------------------------------------------------------------
203226      410993   6189787  leucogranite  channel     1.0   Willy   1470
---------------------------------------------------------------------------
203229      411019   6189886  leucogranite  channel     1.0   Willy   1390
---------------------------------------------------------------------------
203277      410590   6189611  leucogranite  channel     1.0   Willy   1180
---------------------------------------------------------------------------
203320      411000   6187110  leucogranite  channel     1.0   Willy   1080
---------------------------------------------------------------------------
203326      410995   6187102  leucogranite  channel     1.0   Willy   1430
---------------------------------------------------------------------------
203357      412487   6187194  leucogranite  channel     1.0   Willy   1000
---------------------------------------------------------------------------
203358      412487   6187194  leucogranite  channel     1.0   Willy   1190
---------------------------------------------------------------------------
                 Total interval                         2.0           1095
---------------------------------------------------------------------------
203376      411689   6185977  leucogranite  channel     1.0   Willy   1290
---------------------------------------------------------------------------

Diamond drilling to test the geology and mineralization across the LK and Willy zones confirmed the depth continuity to favourable geology and uranium mineralization defined from surface exploration over the zones. Drilling returned wide zones of anomalous uranium mineralization, associated with hematite-biotite-silica altered magmatic granitic breccias.

Stewart Lake Property Results

Previous exploration on the claims had identified numerous uraniferous outcrops, subcrop and large boulders traced by prospecting over a distance of approximately 2.5 km and over a width of up to 700 m. The mineralized host rocks are predominantly coarse-grained to very coarse-grained granitoids containing moderate to intense biotite and magnetite mineralization. The granitoid rocks located within this area are moderately fractured and brecciated. A prominent yellow staining and hematitic alteration is commonly found coating fractures and occurring as breccia filling within the granitoid units. The Stewart Lake mineralization is closely associated with a large east-northeast trending airborne radiometric anomaly (eU/eTh and eU); defined over a strike length of 4.0 km. Prospecting crews completed evaluation of the numerous radiometric anomalies present on the Stewart Lake property during the summer. Work there has confirmed the significance of the previously-defined mineralization on the property and will be the focus of future exploration on the property.

In addition to the assessment of the uranium potential of the Stewart Lake area, prospectors located uranium (U), zirconium (Zr), yttrium (Y), niobium (Nb) and Rare Earth Element (REE) mineralization associated with a course-grained granitic body. The mineralized granite is associated with a large radiometric anomaly measuring 2.25 km by 1.5 km. Several grab samples from preliminary work over the target area returned combined Y oxide (Y2O3) and Total Rare Earth Element oxides (TREO) of up to 4.35%. Individual uranium (U3O8) and zirconium (ZrO2) analyses of up to 0.36% and 1.34%, respectively, were also returned from sampling of the granite. The individual analyses, although of a preliminary nature, compare favourably with known Canadian REE resources, namely the Strange Lake REE-Zr-Y deposit in Quebec and Avalon Ventures' Thor Lake REE-Zr-Y-Be (beryllium) deposit, Northwest Territories. Very few technical details of this new occurrence are available to assess the importance of the new discovery at this time. More exploration work will be required in 2009 to define the extent of the mineralized granite and the economic significance of the discovery.

Quality Control

Dr. George Jenner, P. Geo., is the qualified person on the George River Project under National Instrument 43-101 and has reviewed this news release. Material for analysis has been obtained from grab samples from outcrop and boulders, as well as from channels cut into outcrop. A strict QA/QC program is followed which includes uranium standards and duplicates. Analyses are being performed by Activation Laboratory Limited of Ancaster, Ontario.

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