Toronto, Ontario - August 03, 2017 - U3O8 Corp. (TSX: UWE), (OTCQB:  UWEFF) ("U3O8 Corp." or the "Company") is pleased to provide an update on activities since its Annual and Special Meeting ("ASM") held on June 22, 2017, that includes:

 

The Company raised $119,353 in a financing that was available only to existing shareholders - a financing that was designed to give smaller shareholders an opportunity to increase their shareholding in the Company in a cost-effective way prior to the share consolidation that was approved at the ASM.  U3O8 Corp. is one of the first resource companies to use the ESPE financing model with a subscription form that could be completed online.  Minor issues were encountered and successfully resolved in offering this format which included an option of electronic payment through PayPal. The ESPE financing closed on August 2, 2017.

 

Richard Spencer, President and CEO of U3O8 Corp. commented, "I would like to thank the subscribers to this financing for their patience and help with ironing out the wrinkles of the process, and for making the first subscription payments to a U3O8 Corp. financing by credit card.  We are well on our way to streamlining and simplifying the subscription process.  Future financings by the Company are likely to be private placements, which are open only to accredited investors, combined with ESPE, to ensure that all shareholders of U3O8 Corp. have an equal opportunity to subscribe, irrespective of the size of their shareholding."   

 

The consolidation of U3O8 Corp.'s common shares, as approved by shareholders at the ASM, will be undertaken shortly.  A futher announcement will be made, and a letter of transmittal will be mailed to shareholders and posted on the Company's profile on www.sedar.com, which will provide all related details and instructions.

 

For shareholders with less than 1,000 U3O8 Corp. shares, the result of the consolidation is that their share position will be cancelled and a cash payment made based on the trading price of the shares on the date of approval at the ASM (June 22, 2017).  The consolidation provides a simple and cost-effective means of reducing the number of small common share lots that cost the Company a disproportionate amount in administration expenses. 

 

For shareholders holding more than 1,000 shares, the consolidation will be followed by a share split resulting in an overall consolidation of each twenty previously issued and outstanding common shares to one new share.  The information circular posted on the Company's profile on www.sedar.com provides further background to the consolidation.

 

Test work that was undertaken in Australia failed to achieve the results anticipated due to the extremely fine-grained nature of the uranium-vanadium minerals in the Laguna Salada gravel.  Ironically, it is this fine particle size that leads to the rapid leaching of uranium and vanadium that is favourable for the economics of the Project. It turns out that these fine minerals may also be amenable to flotation as a means of concentrating the metals beyond the levels attained by the methods described in the preliminary economic assessment ("PEA") of the Deposit.  The objective of the test work will be to determine whether flotation may result in lower cash costs of production for the Deposit.  

 

 

The vanadium market moved into deficit last year as a result of increased demand for vanadium-steel used mainly in the construction industry, and greater demand for vanadium in lithium-ion and vanadium redox flow batteries ("VRB").  The vanadium price responded with a gain of 100% from its 10-year low reached in early-2016.  Its price surged a further 50% last week on an announcement that China intends to ban the importation of iron slag which had been a secondary source of vanadium.

 

The selection of a VRB for the construction of the world's largest battery is drawing attention to its energy storage capacity at a truly industrial scale.  The choice of the VRB for the Dalian site in China was based on the battery's reliability, life in excess of 20 years, and the fact that the electrolyte is fully recyclable at the end of the battery's life. The 200 megawatt / 800 megawatt-hour battery has sufficient capacity to provide the electricity required by 100,000 typical western homes for eight hours.    

 

 

Dr. Richard Spencer, P.Geo., CGeol., President and CEO of U3O8 Corp. and a Qualified Person as defined by National Instrument 43-101, has approved the technical information in this news release relating to the Laguna Salada Deposit and the related PEA.