Uramet Minerals sale of Barr Creek tenements

Tuesday , 30 Dec 2008

HIGHLIGHTS

· Agreement executed for the sale of the Barr Creek Project tenements to Legend International Holdings, Inc (“Legend”)

· Uramet Minerals Limited to receive sale proceeds of $750,000

Uramet Minerals Limited (Uramet) (ASX code: URM) is pleased to announce it has entered into an agreement with Legend International Holdings, Inc for the sale of its Barr Creek Project tenements for $750,000.

The tenements sold comprise EPM 15014 and EPM 15015 and tenement application EPM 17930 which form a block of contiguous tenements located north of Mt Isa and are considered highly prospective for Phosphate, Base Metals and Diamonds.

The agreement is conditional on the tenement transfers being approved by the responsible Minister under the Queensland Mining Act and by the Foreign Investment Review Board which is estimated to take approximately 8 weeks.

Legend already controls substantial phosphate interests in the Mt Isa region, including amongst others, the Lady Jane and Lady Annie phosphate deposits immediately adjacent to the Barr Creek Project area. The D-Eight and Lancewood phosphate occurrences in the Barr Creek Project area appear to be extensions of Legend’s Lady Jane deposit and are therefore a natural fit with their existing activities.

Legend is well funded and is actively implementing its phosphate development strategy. This includes plans to develop infrastructure, phosphate mines and beneficiation process plants in the Mt Isa region to exploit its known phosphate deposits. Legend is therefore better placed than Uramet to more quickly advance the Barr Creek Project to its full potential.

This sale is consistent with Uramet’s strategy to scale back exploration spending and to maximise its cash reserves to ensure Uramet remains in a strong position to see through the current global financial crisis and to be better placed to take advantage of any opportunistic acquisitions of more advanced projects that may arise.