2012

UC Resources Mill Update and Invests in Sprott Silver Trust

UC Resources Ltd. ("UC" or the “Company”, TSX-V: UC) is pleased to provide this information update to its shareholders, stakeholders and interested parties.

The company has completed the planned review of operations at La Yesca milling facility which has culminated in approval from the board of directors for a 2 phase upgrade program designed to enhance throughput and recoveries leading to commercial production declaration. Phase one has already begun and should be completed within 3 months at a budget of $300,000. Phase 2 is planned from the increased revenue for phase one and will require an additional $200,000 investment. It’s expected down time at the mill will be minimal during these upgrades having little impact, if any, on present quarterly revenue from operations.

The company has also recently acquired for investment purposes $1,500,000 of the Sprott Physical Silver Trust* (NYSE Arca: PSLV) representing a portion of its available free cash. The board of directors approved this investment for the following reasons: enhance return on present cash since presently holding cash vehicles provides negative returns when inflation adjusted; investing in the industry the company is involved in and seeks to grow in from both a production and exploration perspective; good liquidity; enhance shareholder value from further increases in the price of silver; our way of responding to the call to action of Eric Sprott for precious metal companies to retain some production as savings. It was felt the best course of action for UC was to invest in a true physical silver vehicle and the Sprott silver trust was selected.

With the focus on Mexico the company believes that excellent project/property opportunities will arise. We are currently evaluating new projects. UC Resources will have sufficient capital reserves to be able to selectively choose those opportunities that will best suit the company and its plan to acquiring near term production assets and grow shareholder value.
UC Resources is an active explorer and producer of precious metals in Mexico.
On behalf of the Board of Directors,

Gary Monaghan, CEO

* see for full details,http://www.sprottphysicalsilvertrust.com