Northwestern Mineral Ventures, Inc. (fka NWTMF)

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Northwestern signs letter of intent for second uranium project in Quebec, Canada

June 21, 2006 09:02:26 (ET)


TORONTO, June 21, 2006 /PRNewswire-FirstCall via COMTEX/ -- Northwestern Mineral Ventures Inc. (NWTMF, Trade) has signed a Letter of Intent to acquire 100% interest in a highly prospective uranium property in south-central Quebec from a private owner. The acquisition area is known as the Saguenay Uranium Property and represents more than 100 claims with a land area of approximately 4,000 acres (1,600 hectares).

"Northwestern is solidifying its position in one of the world's most mining-friendly jurisdictions by expanding our uranium holdings in Quebec. Quebec is well known for its rich mineral resources and for the government's commitment to assist in the development of those resources," said Marek Kreczmer, President and CEO of Northwestern. "A report based on work conducted on the property in the late 1960s by a number of companies, including Opemisca Explorers Limited, indicated the potential for a large tonnage, open-pit uranium operation."

The western Grenville region, which includes the Saguenay area where the property is located, was the focus of uranium mineral exploration and metallogenic studies between 1955 and 1980. Uranium mineralization in the area consists of uraniferous minerals disseminated in the pegmatite and locally in surrounding country rocks. Grades can reach as high as several thousand parts per million U3O8 (uranium oxide).

The Saguenay Uranium Property is located near the mouth of the Saguenay River close to the north shore of the St. Lawrence River, approximately 120 miles (190 kilometers) east of Quebec City. Access to the property is by regional roads, which connect to major provincial highways.

Under the terms of the Letter of Intent, Northwestern will pay C$545,000 in cash installments, including C$45,000 in the due diligence period, and will issue 2,000,000 shares over a three-year period to earn 100% ownership of the project. Shares will be subject to all required regulatory hold periods. In addition, should a bankable feasibility study be completed on the property, Northwestern has agreed to pay an additional C$500,000. The private owner will retain a 2% net smelter royalty (NSR) on the property. Northwestern has the right to purchase one-half of the NSR for C$1,000,000 following the completion of a bankable feasibility study.

The Letter of Intent is subject to regulatory approval, due diligence and environmental assessment. Other terms of the agreement were not released.

ABOUT NORTHWESTERN:

Northwestern Mineral Ventures (www.northwestmineral.com) is an international natural resource exploration company with an experienced management team. The company is focused on properties in Niger and Canada with potential uranium targets. Northwestern also has a precious and base metal property in Mexico. Northwestern is listed on the NASD Bulletin Board under the symbol "NWTMF" and the TSX Venture Exchange under the symbol "NWT."



The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this news release.
This news release includes certain "forward looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. Without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of the Company are forward looking statements that involve various degrees of risk. The following are important factors that could cause the Company's actual results to differ materially from those expressed or implied by such forward looking statements: changes in the world wide price of mineral commodities, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital.

SOURCE Northwestern Mineral Ventures Inc.


Marek Kreczmer, President and CEO, [phone], [e-mail]
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