Press Release Source: U.S. Energy Corp.; Crested Corp.
sxr Uranium One Inc. Exercises Its Right to Extend the Option to Purchase Uranium Assets From U.S. Energy Corp. and Crested Corp.
Monday January 8, 9:30 am ET
RIVERTON, Wyo., Jan. 8 /PRNewswire-FirstCall/ -- U.S. Energy Corp. (Nasdaq: USEG - News) and Crested Corp. (OTC Bulletin Board: CBAG - News) d/b/a USECC announced today that sxr Uranium One Inc. ("Uranium One"), which is headquartered in Toronto, Canada with offices in South Africa and Australia (TSE and JSE: SXR) has exercised its right to extend its option to purchase uranium assets from USEG and CBAG for an additional three months as defined under a July 10, 2006 Agreement ("Agreement").
Under the terms of the Agreement, Uranium One has agreed to negotiate the purchase of the Shootaring Canyon Uranium Mill, USECC's participating interest in the Sheep Mountain uranium properties in Wyoming and various mineral holdings in Colorado, Utah and Arizona.
In consideration for the asset purchase, subject to the execution of definitive acquisition documentation, Uranium One will deliver to USEG and Crested at closing approximately 6.6 million shares of freely trading Uranium One common stock, currently valued at approximately US $81 million and will pay an additional US $40 million in cash if the assets meet certain production criteria. See the 8-K filed July 13, 2006, and the 8-K filed on January 8, 2007.
Keith Larsen, CEO of USEG commented, "Although the extension is for three months, it is my belief that we will sign definitive documentation on this transaction before the April 6, 2007 deadline and potentially within 45 days."
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Disclosure Regarding Mineral Resources
Under SEC and Canadian Regulations;
and Forward-Looking Statements
USE and Crested (the "Company") own or may come to own stock in companies which are traded on foreign exchanges, and may have agreements with some of these companies to acquire and/or develop the Company's mineral properties. Examples of these other companies are Sutter Gold Mining Inc., Uranium Power Corp., sxr Uranium One, and Kobex Resources Ltd. These other companies are subject to the reporting requirements of other jurisdictions.
United States residents are cautioned that some of the information available about our mineral properties, which is reported by the other companies in foreign jurisdictions, may be materially different from what the Company is permitted to disclose in the United States.
This news release includes statements which may constitute "forward-looking" statements, usually containing the words "believe," "estimate," "project," "expect," or similar expressions. These statements are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, future trends in mineral prices, the availability of capital, competitive factors, and other risks. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revision or changes after the date of this release.
For further information on the differences between the reporting limitations of the United States, compared to reports filed in foreign jurisdictions, and also concerning forward-looking statements, please see the Company's Form 10-K ("Disclosure Regarding Forward-Looking Statements"; "Disclosure Regarding Mineral Resources under SEC and Canadian Regulation,"; and "Risk Factors"); and similar disclosures in the Company's Forms 10-Q.
Source: U.S. Energy Corp.; Crested Corp.
