Exploration Update

RNS Number : 3652U

Niger Uranium Limited

14 May 2008

For immediate release

14 May 2008

Niger Uranium Limited

('Niger Uranium' or 'the Company')

Exploration Update

20 % increased uranium grades at In Gall target - resource estimation to be completed in June 2008 and step-out fence drilling lines planned to extend the resource.

Highlights

Resource estimation underway for a 5,000 by 900 metre area containing a continuous near-surface layer with a mean borehole interval grade of 146 ppm eU3O8 over 1.2 metres.

The above grade represents an increase of 20 per cent. over previously reported grades as a result of final calibration of the radiometric probe.

An intersection of 4.6 metres at 172 ppm eU3O8 illustrates the potential for thicker development of the mineralised layer.

Only 20 per cent of the historically delineated mineralised area has been tested to date. Extension drilling commences in June which is expected to significantly extend the resource area.

Ian Stalker, Deputy Chairman, said:

'The 20 per cent. improvement of the in-situ grade demonstrates the value of our Niger licenses. Similar high tonnage open-pittable surface deposit projects within Africa typically have cut-off grades of the order of 40 to 80ppm U3O8, which further illustrates the potential of our licenses. We look forward to reporting an initial code-compliant estimate and subsequent resource statements over the coming months as our work in Niger continues'

A resource estimation is being carried out by MSA Geoservices for a portion of target 17 on the Company's In Gall License in Niger. The estimate is expected to be completed early in June 2008. Based upon a finalised calibration factor for the gamma logging tool used to probe boreholes, the average grade of the uranium mineralised layer is 20 per cent. higher than previously reported.

For all 32 holes drilled on a 400 x 250 metre grid within the 'resource area', the mineralised layer averages 1.2 metres thick and has a mean grade of 146 ppm eU3O8. This area covers approximately 5,000 by 900 metres and is continuously mineralised. A borehole outside of the 'resource area' which intersected the same layer six kilometers along strike returned 225 ppm U3O8 illustrating the potential for thicker development of the mineralization.

Drilling was completed under the direction of MSA Geoservices. All boreholes were vertical and drilled by the tri-cone method and probed with a Robertson gamma tool which was calibrated by Terratec Geoservices, at the Medusa facility in The Netherlands. Final calibration resulted in a conversion factor of 0.157 ppm eU3O8 per radiometric count. Additional validation of the gamma tool results is provided by the results of XRF analyses on samples from 15 boreholes in within the 'resource area'. All boreholes were drilled by the tri-cone method.

Uranium mineralization (visual observation of carnotite) occurs at the top of a flat-lying to gently dipping mudstone unit, below porous sandstones of the Tegama Formation. The continuity and gentle dip of the uranium-mineralised layer, and the fact that it crops out at surface support the potential for large-scale open pit mining or insitu leaching.

The mineralization is open; historical maps indicate that it extends up to 15 kilometres to the west; as little as 20 per cent. of this area has been drilled to date. Historical maps delineate a 'channel' and locate several wide-spaced historical boreholes marked as 'mineralised'. This information will be used to guide the location boreholes along 'step-out' fence lines. Drilling will commence in June and is expected to lead to expansion of the resource.

Appendix 1 - Borehole intersections by radiometric probing

All holes within area of resource estimation
Hole ID	From (m)	To (m)	Thickness (m)	cps	eU3O8 (ppm)
H17-22A	31.8	32.9	1.0	830.5	130.4
H17-25A	25.0	26.4	1.4	846.3	132.9
H17-25B	43.7	44.8	1.2	931.3	146.2
H17-27A	33.3	34.4	1.1	1170.7	183.8
H17-27B	51.6	52.8	1.2	817.2	128.3
H17-30A	27.1	28.2	1.2	1007.4	158.2
H17-30B	29.7	30.7	0.9	970.8	152.4
H17-32B	28.7	29.5	0.8	1025.0	160.9
H17-35B	23.7	24.5	0.8	981.3	154.1
H17-37E	39.8	41.2	1.3	624.9	98.1
H17-40H	33.9	35.0	1.1	801.0	125.8
H17-42E	52.9	54.3	1.4	1029.3	161.6
H17-42G	46.0	47.9	1.9	731.1	114.8
H17-45G	62.3	63.3	1.0	1140.9	179.1
H17-47E	75.9	76.8	0.9	966.6	151.8
H17-50C	71.8	73.1	1.3	774.6	121.6
H17-50G	49.9	51.3	1.4	1094.4	171.8
H17-52C	66.3	67.5	1.1	1002.7	157.4
H17-52G	72.8	73.8	1.0	1138.1	178.7
H17-55B	58.0	59.4	1.4	930.0	146.0
H17-55C	59.6	60.8	1.1	909.0	142.7
H17-55E	57.8	59.1	1.3	1047.5	164.5
H17-55G	50.2	51.3	1.1	1212.7	190.4
H17-57C	48.9	50.0	1.1	775.0	121.7
H17-57D/E	47.8	49.6	1.8	1369.5	215.0
H17-57F	52.5	53.4	0.9	1058.1	166.1
H17-60B	40.7	41.7	1.0	1072.3	168.4
H17-60C	46.0	46.7	0.7	481.2	75.6
H17-60D	43.6	45.3	1.8	539.3	84.7
H17-60F	51.5	52.1	0.7	797.6	125.2
H17-95A	31.9	33.4	1.5	868.2	136.3
H17-97A	33.8	34.8	1.0	851.5	133.7

Outlying holes
Hole ID	From (m)	To (m)	Thickness (m)	cps	eU3O8 (ppm)
H17/Ext/4	28.2	32.8	4.6	1096	172.1

Appendix 2 - XRF verification analyses

All holes within area of resource estimation
HOLE_ID	From (m)	To (m)	thickness (m)	XRF U3O8 (ppm)
H17/27/A	34.00	36.00	2.00	167
H17/32/B	29.00	30.00	1.00	130
H17/35/B	24.00	25.00	1.00	65
H17/42/E	54.00	55.00	1.00	57
H17/42/G	47.00	48.00	1.00	223
H17/45/G	62.00	64.00	2.00	116
H17/47/E	76.00	77.00	1.00	177
H17/50/G	50.00	51.00	1.00	240
H17/52/I	49.00	51.00	2.00	200
H17/55/B	59.00	60.00	1.00	130
H17/55/C	60.00	61.00	1.00	82
H17/55/E	59.00	60.00	1.00	164
H17/57/D/E	49.00	51.00	2.00	239
H17/60/B	40.00	42.00	2.00	174
H17/60/C	47.00	48.00	1.00	131

Outlying holes
HOLE_ID	From (m)	To (m)	thickness (m)	XRF U3O8 (ppm)
H17/Ext/4	28.00	33.00	5.00	224.00

Appendix 3 - Borehole collar positions

All holes within area of resource estimation
BHID	UTM East (m)	UTM North (m)	Length (m)	Inclination
H17-22A	287,507	1,854,176	40	90
H17-25A	287,316	1,854,315	42	90
H17-25B	287,185	1,854,155	51	90
H17-27A	286,981	1,854,283	42	90
H17-27B	286,871	1,854,146	60	90
H17-30A	286,728	1,854,391	36	90
H17-30B	286,672	1,854,317	36	90
H17-32B	286,383	1,854,334	33	90
H17-35B	286,157	1,854,467	36	90
H17-37E	285,583	1,854,182	48	90
H17-40H	284,880	1,853,577	48	90
H17-42E	284,942	1,854,212	66	90
H17-42G	284,694	1,853,912	60	90
H17-45G	284,388	1,853,908	72	90
H17-47E	284,435	1,854,375	84	90
H17-50C	284,270	1,854,538	84	90
H17-50G	283,727	1,853,921	60	90
H17-52C	284,061	1,854,708	80	90
H17-52G	283,534	1,854,098	87	90
H17-55B	283,731	1,854,711	66	90
H17-55C	283,600	1,854,557	64	90
H17-55E	283,347	1,854,252	70	90
H17-55G	283,086	1,853,943	60	90
H17-57C	283,411	1,854,718	54	90
H17-57D/E	283,155	1,854,412	57	90
H17-57F	282,893	1,854,105	63	90
H17-60B	283,226	1,854,878	48	90
H17-60C	283,091	1,854,722	57	90
H17-60D	282,958	1,854,572	60	90
H17-60F	282,707	1,854,265	60	90
H17-95A	278,700	1,854,944	45	90
H17-97A	278,549	1,855,144	48	90

Outlying holes
BHID	UTM East (m)	UTM North (m)	Length (m)	Inclination
H17-EXT4	276,485	1,860,903	39	90

Qualified Person

The information contained in this announcement has been reviewed by Keith Kenyon (MSc. AUS IMM), Geochemical Consultant to Niger Uranium. He is the Qualified Person overseeing the geochemical exploration on the In Gall-Irhazer licences. Mr. Kenyon has 36 years experience in gold and uranium exploration and geochemistry and he is undertaking to act as a Qualified Person for the purposes of this announcement.

The chemical analyses were undertaken by SGS Minerals, Southern Africa; 58 Melvill Street, Booysens, Johannesburg, 2091, Tel. +27 (0)11 680-3466. This is a properly equipped, fully accredited laboratory undertaking analyses and assays for the mining industry.

Contacts:

Niger Uranium Limited

James Mellon, Non-Executive Chairman

Ian Stalker, Executive Deputy Chairman and Chief Executive Officer

Tel: + 27 (0) 11 269 4900

Beaumont Cornish Limited

Roland Cornish / Michael Cornish

Tel: + 44 (0) 20 7628 3396

Haywood Securities (UK) Limited

Thomas Beattie

Tel+ 44 (0) 20 7031 8011

Financial Dynamics