UC Resources Receives TSX Venture Exchange Final Approval and Closes McFaulds Lake Property Sale

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 6, 2012) - UC Resources Ltd. ("UC" or the "Company") (TSX VENTURE:UC) is pleased to announce that it received final approval on the sale of its interest in the McFaulds Lake area property from the TSX Venture Exchange on January 4, 2012 and closed the sale on January 6, 2012. In its letter to UC, the TSX Venture Exchange further advised that a bulletin will be issued upon notification from the Company of the closing of the transaction on January 6, 2012.

On November 10, 2011, UC Resources announced that it had entered into a definitive agreement (the "Purchase Agreement") with Freewest Resources Inc. ("Freewest"), a wholly owned subsidiary of Cliffs Natural Resources Inc. (NYSE:CLF)(PARIS:CLF) ("Cliffs"), for Freewest to acquire 100% of the UC owned 55% Joint Venture Interest in the McFaulds Lake area property (the "Joint Venture Interest"), subject to and in accordance with the Joint Venture Agreement dated as of July 26, 2011 (the "Joint Venture Agreement") between KWG Resources Inc. ("KWG"), Cliffs Chromite Far North Inc. (f/k/a Spider Resources Inc.), a wholly owned subsidiary of Cliffs, and UC Resources.

On November 11, 2011, UC received notice from Cliffs Chromite Far North Inc. electing to exercise its pre-emptive right in accordance with the Joint Venture Agreement to acquire the Joint Venture Interest from UC for the same consideration and on the same terms as set forth in the Purchase Agreement.

UC did not receive a pre-emptive rights exercise notice from KWG within the time period required by the Joint Venture Agreement, which resulted in Cliffs Chromite Far North Inc. obtaining from Freewest the rights under the Purchase Agreement to acquire 100% of UC's 55% Joint Venture Interest.

Following Cliffs Chromite Far North Inc.'s acquisition of UC's 55% Joint Venture Interest, Cliffs Chromite Far North Inc. holds approximately 80% and KWG holds approximately 20% of the McFaulds Lake area property under the Joint Venture Agreement.

Under the Purchase Agreement, the purchase price payable to UC was $6,000,000 CDN ($6 Million), payable by deposit of $850,000 on the signing date followed by the balance on the closing date. The deposit amount of $850,000 was received by the Company from Freewest on November 9, 2011, and, because of the pre-emptive right exercised by Cliffs Chromite Far North Inc., the balance of $5,150,000 was received by the Company from Cliffs Chromite Far North Inc. on January 6, 2012. The transaction is now closed.