Uranex plans JV for exploration programme for Songea Coal project, Tanzania

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Uranex has said they are aware of market commentary relating to a joint venture for participation in the 2012 exploration programme at the Songea Coal Project in Tanzania.

The Company can confirm that it has received a number of unsolicited proposals which remain incomplete and confidential. These discussions are at a preliminary stage only and have yet to receive any firm indications of interest or how the participation may be structured.

Whilst Uranex has people with significant experience in coal exploration, the Company believes that additional experience from other coal focussed companies is required to unlock the potential of this coal field in the near term and thus create the best value for shareholders. This strategic approach will also allow Uranex to maintain focus in 2012 on the Mkuju Uranium Project.

The current activities underway at the Songea project include geophysical down hole logging of the drill holes completed in 2011 and a review of the basin by consultants to target areas most likely to host near surface coal.

The Songea Coal project covers a total area of 2,606km2 in the Ruhuhu Basin that contains eleven recognised coalfields. The three most significant coalfields known as Ketewaka, Mchuchuma and Ngaka occur in a similar geological setting and lie within 50km to that of the Lumecha Coalfield.

A recent US$3 billion agreement between the Tanzanian Government and China’s Sichuan Hongda will see the development and mining of the adjacent Mchuchuma Coalfield. This represents the single largest investment in Tanzania. The coalfields are adjacent to a planned infrastructure build project including rail, road, power and port for domestic and export markets.

The 2011 exploration programme identified coal intersections in 5 drill holes at 4 separate sites, with an average drill hole spacing of between 2.5 and 3km within the coalfield area. More detailed information of the 2011 programme can be found in the announcement made on 24 February 2012.