Plateau Uranium commences drilling on high-grade Pinocho area, Macusani, Peru / Proposes to Issue Shares to Settle Debt - Seite 2

The Company also announces that, subject to regulatory approval, it is proposing to issue 2,500,000 common shares to GBM Minerals Engineering Consultants Limited ("GBM") at a deemed price of $0.27 per share to settle in part fees that have been incurred for project engineering services in respect of the Company's Macusani Plateau uranium and lithium project in southeastern Peru. An additional cash payment of US$200,000 will be made to GBM in connection with the debt settlement. All shares issued under the debt settlement transaction will be subject to a 4-month hold period with three-quarters of the shares being subject to additional voluntary hold periods of between 3 and 9 months.

Ted O'Connor, CEO of Plateau Uranium commented: "We are extremely happy to start the initial drill testing of Pinocho - a truly compelling target with the prospect of intersecting uranium mineralization with grades that are an order of magnitude higher than the average grade of our existing deposits. We are excited to be returning to active exploration work on the Macusani Plateau projects with the goal of extending the known Kihitian Complex resources to the southeast at Pinocho and generating quality drill targets for future testing at Chimboya.

The debt settlement arrangement with GBM has removed a significant historical legacy issue on the Company's balance sheet by negotiating a mutually beneficial solution to finally deal with payment of pre-2013 engineering study work. Both parties have been accommodating and patient in dealing with this issue."

Pinocho Details

Pinocho is located 2 km southeast of the Kihitian deposit, and is believed to be a possible extension of the same mineralization comprising the Kihitian Complex deposits (see Figure 1 - Location Map of Pinocho and Chimboya.pdf). Approximately 194 m (length) of adit development was established at Pinocho by IPEN in the early 1980's. Adit development followed a high grade core of sub-horizontal uranium mineralization within a much thicker disseminated uranium envelope. The exposed mineralization within the adits is open in all directions.

The Pinocho adits were sampled by Company geologists in 2009 (see Company news release of December 14, 2009, through this link and also posted on the Company's website and on SEDAR). Adit sampling was completed at 3 metre line spacing, sampling the left wall from the floor to the back (ceiling) throughout the entire length of the workings using 10-15 cm channels. The adits range in height from 1.10 to 1.85 meters. The 2-3 kg samples were sent to CIMM labs in Juliaca for sample preparation with representative 250 g sub-samples sent to CIMM Labs in Lima for ICP-OES & ICP-MS multi-element analyses. CIMM Labs is a Certified and Accredited Laboratory of International Standards.