UEX Corporation (TSX:UEX) (OTC PINK:UEXCF) (FRANKFURT:UXO) is pleased to announce that it has closed the $2.0 million private placement with Mr. Stephen Sorensen as announced in UEX’s news release of December 22, 2015. Mr. Sorensen has purchased 20,000,000 units of the Company at a price of $0.10 per unit pursuant to a price protection notice filed with the TSX. Each unit consists of one common share of UEX and one full share purchase warrant. Each warrant gives Mr. Sorensen the right to purchase a common share of UEX at a price of $0.20 per share for a period of two years from the closing of the Offering.

Mr. Sorensen, a long time UEX shareholder, beneficially holds directly or indirectly 22 million shares of UEX representing approximately 8.27% of the issued and outstanding shares of UEX.

The Offering was a non-brokered private placement with no commission, broker or finder’s fee.

The Company intends to use the proceeds of the Offering to fund the 2016 $1,750,000 cash payment for the Christie Lake Option due to JCU (Canada) Exploration Company Limited and to cover the $250,000 payment already made to JCU upon signing of the letter of intent.

Cameco Corporation had a pre-emptive right, so long as it maintained a minimum 20% ownership interest in UEX, to purchase shares of UEX on the same terms and conditions as the Offering so as to maintain its approximate 20.33% ownership interest in UEX. Cameco has informed the Company that it will not be exercising their pre-emptive right

With the closing of this Placement and the decision of Cameco not to exercise its pre-emptive right to maintain its equity ownership of UEX, Cameco’s equity ownership of UEX has now declined from approximately 20.33% to approximately 18.80%.

The drop in Cameco’s equity ownership below the 20% level terminates some of the special rights Cameco has held since UEX’s inception, pursuant to the October 2001 agreement among Cameco Corporation, Pioneer Metals Corporation and UEX Corporation.

Specifically, the special rights that have now been terminated are as follows:

• Cameco’s right to market, on behalf of UEX, its share of uranium produced from any mine in which UEX has an ownership interest.
• Cameco’s right of first refusal to match the terms of any equity, equivalent-to-equity, or debt financing required by UEX to develop a new mine.
• Cameco’s right to maintain its ownership interest in UEX through a pre-emptive right to participate in UEX’s future share equity financings.

CEO Roger Lemaitre noted, “As a co-founder of UEX in 2002, Cameco has been a special shareholder for fourteen years and has participated in some of our equity financings. However, since its inception, UEX has raised over 89% of its equity funding from many sources and investors, other than Cameco, demonstrating the wide levels of support investors have for UEX and our enviable uranium assets.”

Under the Agreement, and provided that Cameco maintains a minimum 10% equity ownership of UEX, Cameco will retain the right to nominate a director to the UEX board (a right not currently exercised).

Regardless of Cameco’s ownership interest in UEX, Cameco will have the right to provide toll milling to UEX at the Rabbit Lake Mill for future uranium production from the claims comprising the original Hidden Bay Property, provided that the required toll milling capacity is available and is provided at competitive pricing, delivery and similar terms that UEX could negotiate with another toll miller.

Board Chair Colin Macdonald further commented, “On balance, as we move forward into the next uranium cycle, we believe UEX shareholders will be best served by the Company having a share structure that continues to be widely held and in the absence of Cameco’s special shareholder rights. This will allow all shareholders the equal opportunity to benefit from UEX’s growth through the upcoming exploration activities planned for our newly optioned Christie Lake Project.”

The securities referred to in this news release have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any applicable securities laws of any state of the United States, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons (as such term is defined in Regulation S under the U.S. Securities Act) or persons in the United States unless registered under the U.S. Securities Act and any other applicable securities laws of the United States or an exemption from such registration requirements is available. This press release does not constitute an offer to sell or a solicitation of an offer to buy any of these securities within any, including the United States.

About UEX

UEX is a Canadian uranium exploration and development company actively involved in sixteen uranium projects, including four that are 100% owned and operated by UEX, one joint venture with AREVA that is operated by UEX, as well as nine joint ventures with AREVA, one joint venture with AREVA and JCU (Canada) Exploration Company Limited, which are operated by AREVA, and one project to be under option from JCU (Canada) Exploration Company Limited and operated by UEX. The sixteen projects are located in the eastern, western and northern perimeters of the Athabasca Basin, the world’s richest uranium belt, which in 2014 accounted for approximately 16% of the global primary uranium production. UEX is currently advancing several uranium deposits in the Athabasca Basin which include the Kianna, Anne, Colette and 58B deposits at its currently 49.1%-owned Shea Creek Project, the Horseshoe, Raven and West Bear deposits located at its 100%-owned Hidden Bay.

UEX’s Hidden Bay and Shea Creek projects have mineral resource estimates as follows:

UEX Corporation – Indicated Mineral Resources ^{(1) (2) (3)}

UEX Corporation – Inferred Mineral Resources ^{(1) (2) (3)}

Notes:

(1) The mineral resource estimates follow the requirements of National Instrument 43-101 – Standards of Disclosure for Mineral Projects and classifications follow CIM definition standards.
(2) The Shea Creek mineral resources were estimated at a cut-off of 0.30% U₃O₈, and are documented in the Shea Creek Technical Report with an effective date of May 31, 2013 which was filed on SEDAR at www.sedar.com on May 31, 2013.
(3) The Hidden Bay mineral resources were estimated at a cut-off of 0.05% U₃O₈, and are documented in the Hidden Bay Technical Report with an effective date of February 15, 2011 which was filed on SEDAR at www.sedar.com on February 23, 2011.