Laramide drills 5.0 m of 0.43% U3O8 at Redtree

2009-01-13 09:43 ET - News Release

Mr. Peter Mullens reports

LARAMIDE REPORTS FINAL RESULTS FROM 2008 DRILLING AT WESTMORELAND; HIGHLIGHTS INCLUDE HOLE WDD08-112 WITH 5 METRES GRADING 0.43% U(3)O(8) AND HOLE WDD08-114 WITH 11 METRES GRADING 0.41% U(3)O(8)

Laramide Resources Ltd. has released the concluding results of 18 drill holes remaining from the 39-drill-hole program completed in the Redtree project area within the 100-per-cent-owned Westmoreland project in North Queensland, Australia. These results include WDD08-114, which intersected 11 metres at 0.41 per cent U3O8 from 14 metres, WDD08-112 with 5.0 metres at 0.43 per cent U3O8 from 4.0 metres depth and WDD08-123, which intersected 12 metres at 0.24 per cent U3O8 from 6.0 metres depth. These complete the results for the 39-hole, 928.4-metre drilling program, which includes previously announced results:

• WDD08-096 -- 10 metres at 0.66 per cent U3O8;
• WDD08-100 -- 8.0 metres at 0.25 per cent U3O8;
• WDD08-106 -- 10 metres at 0.23 per cent U3O8.

This second drill phase was completed in October, 2008, and focused on the thinner Jack lens, which forms the western half of the Redtree deposit. The Jack lens is located very close to the surface at Westmoreland, generally within 10 metres. This allows for open pit mining and a low strip ratio, leading to robust economics of the deposit.

Peter Mullens, vice-president exploration, stated: "The technical merit of the project continues to be reinforced as we accumulate more data. Studies on drill core from Laramide's drilling have confirmed the high proportion of uraninite in the Redtree ore, which responds favourably to conventional metallurgy."

Mr. Mullens also drew attention to the recent public statements by Murrundoo Yanner, Aboriginal activist and chairman of the Gangalidda-Garawa claim group. Mr. Yanner in late December, 2008, called upon the Queensland state government to urgently reconsider its position on uranium mining in order to facilitate permitting of the Westmoreland uranium deposit. In print and radio media, Mr. Yanner highlighted the economic and social benefits that accrue to indigenous communities from well-planned mining activities.

Drill AMG AMG Azimuth Dip RL hole east(*) north(*) (degrees) (degrees) (m) Redtree WDD08-110 191716 8060528 360 -90 176.89 WDD08-111 191686 8060621 360 -90 166.72 WDD08-112 191743 8060582 360 -90 170.28 WDD08-113 191852 8060571 360 -90 174.60 WDD08-114 191888 8060556 360 -90 178.90 WDD08-115 191792 8060608 360 -90 172.00 WDD08-116 191821 8060595 360 -90 172.60 WDD08-117 191712 8060682 360 -90 162.40 WDD08-118 191749 8060646 360 -90 168.82 WDD08-119 191649 8060744 360 -90 158.60 WDD08-120 191724 8060726 360 -90 162.40 WDD08-121 191774 8060785 360 -90 158.60 WDD08-122 191762 8060809 360 -90 157.68 WDD08-123 191788 8060552 360 -90 174.78 WDD08-124 191892 8060609 360 -90 171.63 WDD08-125 192198 8060609 360 -90 162.10 WDD08-125 192198 8060609 360 -90 162.10 WDD08-125 192198 8060609 360 -90 162.10 WDD08-126 191852 8060643 360 -90 170.38 WDD08-127 191791 8060685 360 -90 166.58 (*) Datum is AGD66 (*) Intersections calculated using a 0.02-per-cent U3O8 cut-off and minimum intersection of 3.0 metres. Drill From To Interval U3O8 True width hole (m) (m) (m) (%) (m) REDTREE WDD08-110 7 15 8 0.08 8 WDD08-111 0 3 3 0.06 3 WDD08-112 4 9 5 0.43 5 WDD08-113 7 12 5 0.16 5 WDD08-114 14 25 11 0.41 11 WDD08-115 8 13 5 0.08 5 WDD08-116 5 18 13 0.07 13 WDD08-117 1 9 8 0.12 8 WDD08-118 5 12 7 0.07 7 WDD08-119 1 9 8 0.12 8 WDD08-120 0 7 7 0.14 7 WDD08-121 No significant assays WDD08-122 0 7 7 0.10 7 WDD08-123 6 18 12 0.24 12 WDD08-124 No significant assays WDD08-125 24 27 3 0.06 3 WDD08-125 37 40 3 0.19 3 WDD08-125 47 50 3 0.05 3 WDD08-126 10 18 8 0.04 8 WDD08-127 5 10 5 0.03 5 All 18 holes were drilled with HQ core.

The second phase of drilling was completed with two small man-portable diamond drill rigs that were moved from drill site to drill site with the assistance of a helicopter. Certain holes have had half the core retained for metallurgical testwork to be completed in the first quarter of 2009. The data from the 2008 programs will be incorporated into a revised resource calculation, which Laramide has commissioned. An attached table shows the current NI 43-101-compliant resource estimate (Mining Associates of Australia, October, 2006).

Category Deposit Tonnes U3O8 uncut U3O8 cut Ktonnes Mlb Inferred Red Tree 10,928,500 0.094% 0.093% 10.2 22.4 Huarabagoo 2,925,250 0.122% 0.108% 3.2 7.0 Junnagunna 2,149,500 0.077% 0.075% 1.6 3.6 Total group 16,003,250 0.097% 0.094% 14.9 32.9 Indicated Red Tree 3,672,250 0.096% 0.096% 3.5 7.8 Huarabagoo 0 0.0 0.0 Junnagunna 4,364,750 0.082% 0.081% 3.5 7.8 Total group 8,037,000 0.088% 0.088% 7.1 15.6 Total Red Tree 14,600,750 0.095% 0.094% 13.7 30.2 Inferred Huarabagoo 2,925,250 0.122% 0.108% 3.2 7.0 plus Junnagunna 6,514,250 0.080% 0.079% 5.1 11.3 indicated Total group 24,040,250 0.094% 0.092% 22.0 48.5

The objective of the pending revised resource estimate is primarily to increase the confidence interval from inferred to at least indicated on a larger proportion of the resource.

Mr. Mullens pointed out that drilling activity was suspended after the completion of the program, in keeping with general seasonal practice. He further stated: "The first tropical cyclone of the season has caused localized flooding and seasonal run-off in the Westmoreland district. We are monitoring this event to collect critical data for project planning in conjunction with radiological baseline studies."

Laramide has implemented a quality control program at Westmoreland to ensure best practices.

Under the guidelines of the National Instrument 43-101, the qualified person for the Westmoreland uranium project is Mr. Mullens, who is a member of the Australian Institute of Mining and Metallurgy. Mr. Mullens has reviewed and approved the technical content of this release.

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