UEX Announces Exploration Plan for the West Bear Cobalt-Nickel Prospect

SASKATOON, SK--(Marketwired - January 17, 2018) -

Winter Exploration Program

UEX Corporation (TSX: UEX) (OTC PINK: UEXCF) (FRANKFURT: UXO) ("UEX" or the "Company") is pleased to announce that the Company plans to spend $1.5 million drilling its 100% owned West Bear Cobalt-Nickel Prospect located on the Hidden Bay project, immediately east of the West Bear Uranium Deposit ("WBU Deposit"). The drill program is anticipated to begin in mid-February and complete 3,500 m of drilling with 30 to 40 holes to define the known mineralized zones.

The West Bear Co-Ni Prospect was discovered by the Company during the exploration programs that defined, evaluated and tested the area surrounding the WBU Deposit between 2002 and 2005. The West Bear Co-Ni Prospect assays compare favorably to the grades of other global and North American cobalt deposits (see UEX News Release dated November 8, 2017 filed on SEDAR.ca). The highest-grade assay sample obtained during the 2002-2005 UEX drill programs was from hole WBE-019 that returned 9.94% cobalt and 2.97% nickel over a core length of 0.2 m between 33.8 m and 34.0 m (see UEX News Release dated April 22, 2002 filed on SEDAR.ca). Impressive cobalt and nickel grades were also returned from historical UEX holes WBE-079 which assayed 3.95% Co and 2.36% Ni over 4.45 m from 60.65 to 65.10 m and WBE-071 that assayed 2.15% Co and 0.91% Ni over 8.4 m from 45.1 to 53.5 m.

I believe the surging demand for cobalt driven by the rapidly growing electric car industry provides the Company with strategic alternatives to enhance value for our shareholders through this asset.

• Roger Lemaitre, President & CEO

Potential Cobalt Spin-Out

In December, UEX formed a 100% wholly-owned subsidiary, CoEX Metals Corporation ("CoEX"), which will be tasked with the exploration and development of the West Bear Cobalt-Nickel Project.

The Company previously announced on November 8, 2017 plans to evaluate opportunities to unlock the value of the West Bear Cobalt-Nickel Prospect for shareholders. Based upon the Company's evaluation and current cobalt market conditions, UEX is exploring options to enhance shareholder value by spinning out CoEX as a new company. This would occur after completion and announcement of results of the drill program. Should UEX proceed with a spin-out transaction, all or the majority of CoEX shares would likely be distributed to UEX shareholders in a process similar to that under which UEX was formed in 2001 from Pioneer Metals Corporation.