Athabasca Uranium Inc (ATURF)

[Mr. Zen]

ATHABASCA URANIUM COMMENCES DRILL PROGRAM


Athabasca Uranium Inc. is pleased to announce that theCompany has commenced the diamond drill program on its Keefe Lake uraniumproject in the southeast Athabasca Basin. Construction of the 25-manbase camp began last week and will be completed immediately, withmobilization and operation of the diamond drill expected to take placeshortly. Athabasca contracted Elite Drilling of Saskatoon to complete the3000-meter NQ2 10-hole program. Elite has over 20 years experience in theBasin and has performed drilling services at the McArthur River Mine(Cameco) and at Shea Creek (AREVA/UEX). Elite has also drilled extensivelyfor JNR Resources and as such has “local” experience in thisquadrant of the Basin that should translate into highly efficient,cost-effective drilling. The Company will be performing down-hole gammaradiation surveys for each of the holes as they are completed, and asatellite communication system will allow for near real-time drillingresults to be available to the Company throughout the program. Prospectivedrill core will also be subject to assay for mineralization.

“This is a watershed moment for us”, commented GilSchneider, President “as with drills turning Athabasca Uraniumgraduates to a full-blown exploration company. We are extremely pleasedwith the exploration team we’ve assembled, and have a high degree ofconfidence in our drill targets, having employed the greatest level ofexploration technology available. We hope to be able to provide ourshareholders with positive news in the near term”.

“Additionally, with the recent takeover bids of Hathor Explorationfrom suitors Cameco and Rio Tinto, we’ve seen a resurgence ofactivity from parties interested in potential joint ventures and equityparticipation in our large portfolio of prospective properties. Withnumerous opportunities available, we’ve recently been entertainingproposals that would allow for the swift exploration and development of allof our projects. After a six-month lull, uranium is making a comeback - andwe’re well-positioned to capitalize on that.”

About Athabasca Uranium

Athabasca Uranium Inc. is auranium exploration and development company exploring an aggregate of over60,000 hectares strategically located in the uranium-rich Athabasca Basinregion of northeast Saskatchewan. The Company’s stated visionis to explore the region using leading-edge technology to become aworld-class uranium mining company. Additional information onAthabasca Uranium and its vision is available on the Company’swebsite at www.athabascauranium.com.

ON BEHALF OF THE BOARD OFDIRECTORS

“Gil Schneider”
GilSchneider, President & CEO

For information, please contactthe Company:

Toll-Free: [phone]
E-mail: [e-mail]


Neither the TSX Venture Exchange nor its RegulationsServices Provider (as that term is defined in policies of the TSX VentureExchange) accepts responsibility for the adequacy or accuracy of thisrelease.


Athabasca UraniumInc.
www.athabascauranium.com

email : [e-mail]

1040– 885 West Georgia Street
Vancouver, BC V6C 3E8





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