Shea Creek Reveals Additional Uranium Treasure: New Kianna Basement Zone Discovered with Intercepts of 16.0 Metres Grading 3.59% eU3O8 in Drill Hole SHE-135-11 and 18.1 Metres Grading 3.70% eU3O8 in Drill Hole SHE-135-13

UEX Corporation ("UEX") is pleased to announce the discovery of a new high-grade zone of basement-hosted mineralization, based on results from the continued exploration of the Kianna Deposit ("Kianna") on the Shea Creek Project (" Shea Creek "). This new zone, Kianna East, is located to the east of the existing Kianna Deposit, and is spatially associated with a second conductive trend. Shea Creek hosts the Kianna, Anne, Colette and 58B deposits (see Figure 1) and is one of ten 49%-owned Western Athabasca Uranium Projects joint-ventured with AREVA Resources Canada Inc. ("AREVA"), the project operator.

The holes drilled in the Kianna area were part of a larger 2012 exploration program on the Shea Creek Project that included drilling on the Colette and 58B deposits (see UEX's news releases dated May 31 and August 8 , 2012).

"This new discovery significantly opens the potential of Kianna and the overall exploration potential of the area. This basement mineralization is located well outside the current resource at Kianna and in association with a second, previously untested, graphitic conductor. This continues to establish Shea Creek as one of the largest mineralizing systems in the Athabasca Basin," said Graham Thody , President and CEO of UEX.

The results reported include five directional drill holes in the SHE-118 and SHE-135 series drilled east of the main Kianna deposit, which have intersected the new zone, and three holes in the SHE-141 and SHE-114 series drilled to test margins of the northern and southwestern parts of Kianna.

Drilling Results - Kianna East

Significant mineralization was intersected at the unconformity ("UC") and in the underlying basement rocks ("B") (see Figure 2). Drill holes within this area have intersected both:

• a section of basement mineralization that extends the existing main Kianna Deposit by approximately 30 metres to the east; and
• a new zone of mineralization that lies more than 80 metres below and to the east of the main Kianna Deposit and is outside of the 2009 Shea Creek National Instrument 43-101 ("N.I. 43-101") compliant mineral resource estimate.

Highlights of the recent drill results include:

Technical difficulties were encountered in hole SHE-135-12 when the rods broke off at 990 metres. An attempt to tap into the rods was unsuccessful and therefore the hole was only probed to a depth of 939.7 metres. However, geological observations and handheld scintillometer readings of drill core show uranium mineralization in the new zone was intersected over 7.1 metres from 990.3 to 997.4 metres. Geochemical analyses from the core obtained in this interval will be released upon receipt.

The new zone of mineralization lies approximately 80 to 110 metres below and east of the main Kianna basement resource and about 200 metres below the unconformity (see Figure 2). Geologically, these intercepts occur in a shallow west-southwest-dipping zone of mineralization associated with a narrow, southwest-dipping graphitic unit which forms an electromagnetic (EM) anomaly to the east of, and parallel to, the Saskatoon Lake Conductor ("SLC"). This new mineralization appears to be parallel to the metamorphic stratigraphy and therefore, given the orientation of the drill holes, these intercepts may lie at or close to true thickness. The new zone is open to the northwest, southeast and up dip to the northeast. The parallelism of mineralization in the basement adjacent to a conductive unit is a common feature of other deposits in the Athabasca Basin, as is encountered at the Millennium Deposit. The relationship of the new basement zone to the Kianna Deposit has not been established since there is little drilling in between, but the new zone does lie along strike from the main steeply dipping, east-trending body of Kianna basement mineralization.

The significance of the new basement zone is its position in association with a second graphitic unit which lies well below, and parallel to, the SLC, the latter being spatially associated with all of the other areas of mineralization that have been discovered to date at the Shea Creek Project. The graphitic unit projects up dip to the east toward the unconformity approximately 900 metres east of the SLC, and forms a conductive horizon that had been previously identified but never drill tested (see Figure 1 inset). The association of basement mineralization with this feature suggests that potential exists for mineralization along this second trend, parallel to and east of the known zones at Shea Creek , as occurs in other uranium deposits in the Athabasca Basin. Ongoing and future drilling will test for the potential of the new basement zone to extend upward along the graphitic unit to the unconformity, and for new mineralized zones along this eastern conductor.

Drilling Results - Kianna North and Kianna Southwest

Two drill holes, SHE-141-2 and SHE-141-3, were drilled in the Kianna north area to follow up on successful drilling results from the SHE-130 and SHE-141 series drill holes obtained during the 2011 program. This program outlined a shallow southeast-dipping zone of mineralization which exploits a mafic unit within the hosting gneiss sequence. The mafic unit associated with this zone may also control a high-grade oreshoot in the lower part of the Kianna Deposit. Mineralization was intersected in hole SHE-141-3 at the unconformity returning an intercept of 0.22% eU₃O₈ over 1.4 metres.

Drill hole SHE-114-21 was drilled on the southwest side of Kianna to test the continuity to the west of high-grade unconformity mineralization intersected in previous hole SHE-118-19 grading 12.38% U₃O₈ over 3.7 metres. No significant mineralization was intersected in the hole.

Further information regarding UEX's projects, including maps, is available on UEX's website at www.uex-corporation.com.

To view Figure 1 (Northern Shea Creek Area - 2012 Drilling Program) and Figure 2 (2012 Shea Creek (Kianna) Drill Results: SHE-118-22 and SHE-135-10 to SHE-135-13), please access this news release on UEX's website at www.uex-corporation.com.

Qualified Persons and Data Acquisition

Technical information in this news release has been reviewed and approved by R. Sierd Eriks, P.Geo., UEX's Vice-President of Exploration, David Rhys, P.Geo., UEX Advisory Board member and Erwin Koning , P.Geo., AREVA's Technical Advisor, Exploration, who are each Qualified Persons as defined by National Instrument 43-101.

Equivalent grade results reported here were obtained using a DHT27-STD gamma probe which collects continuous readings along the length of the drill hole. Probe results are calibrated using an algorithm calculated from the comparison of probe results against geochemical analyses in previous drill holes in the Shea Creek area. True widths of mineralized intervals have not yet been determined.  All intervals are also analyzed geochemically at the SRC Geoanalytical Laboratories in Saskatoon, SK to support the probe data.

About Shea Creek

Effective December 31, 2009 , UEX reported a combined mineral resource estimate for the Kianna, Anne and Colette deposits as tabulated below in "About UEX." This mineral resource estimate is based on drilling information up to December 31, 2009 . Subsequent results, which include the identification of the 58B Deposit and the expansion of the Kianna and Colette deposits, are not incorporated in this mineral resource estimate.

This estimate confirmed Shea Creek as the largest undeveloped uranium resource in the Athabasca Basin. Shea Creek also ranks as the third largest uranium resource in the Basin, exceeded in size only by McArthur River and Cigar Lake. Resources at Shea Creek are largely open and have excellent potential for both expansion of known areas of mineralization and discovery of new zones.

At the conclusion of the 2012 exploration program, UEX intends to update its mineral resource estimate for Shea Creek to include the results from the 2010, 2011 and 2012 drilling campaigns.

About UEX

UEX is a Canadian uranium exploration and development company actively involved in 18 uranium projects, including six that are 100% owned and operated by UEX, one joint venture with AREVA that is operated by UEX, as well as ten joint-ventured with AREVA and one under option from JCU ( Canada ) Exploration Company, Limited, which are operated by AREVA. The 18 projects, totaling 308,320 hectares (761,875 acres), are located in the eastern, western and northern perimeters of the Athabasca Basin, the world's richest uranium belt, which accounts for approximately 17% of the global primary uranium production. UEX is currently advancing several uranium deposits at its two major projects which include the Kianna, Anne, Colette and 58B deposits at its 49%-owned Shea Creek Project, a joint venture with AREVA in the western Athabasca Basin, and the Horseshoe, Raven and West Bear deposits located at its 100%-owned Hidden Bay Project in the eastern Athabasca Basin. With a cash position of approximately $13.5 million at September 30, 2012 , UEX is well-financed to carry out its remaining 2012 exploration and development programs.

UEX's two major projects have mineral resource estimates as follows:

UEX Corporation - Indicated Mineral Resources ^{(1) (2) (3)}

UEX Corporation - Inferred Mineral Resources ^{(1) (2) (3)}

About AREVA Resources Canada Inc.

AREVA, a uranium exploration, mining and milling company, is a subsidiary of AREVA group, the global nuclear industry leader with an expanding presence in the renewable energies field, and 48,000 employees worldwide to help supply safer, cleaner and more economical energy to the greatest number of people. AREVA group, through its Canadian subsidiary, has significant interests in several uranium deposits in the Athabasca Basin, including the McClean Lake, Midwest and Shea Creek deposits operated by AREVA, as well as the McArthur River and Cigar Lake deposits operated by Cameco Corporation. AREVA also holds a majority interest in the Kiggavik deposits in Nunavut.

Forward-Looking Information

This news release may contain statements that constitute "forward-looking information" for the purposes of Canadian securities laws. Such statements are based on UEX's current expectations, estimates, forecasts and projections. Such forward-looking information includes statements regarding UEX's mineral resource and mineral reserve estimates, outlook for our future operations, plans and timing for exploration activities, and other expectations, intention and plans that are not historical fact. The words "estimates", "projects", "expects", "intends", "believes", "plans", or their negatives or other comparable words and phrases are intended to identify forward-looking information. Such forward-looking information is based on certain factors and assumptions and is subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by such forward-looking information. Important factors that could cause actual results to differ materially from UEX's expectations include uncertainties relating to interpretation of drill results and geology, additional drilling results, continuity and grade of deposits, participation in joint ventures, reliance on other companies as operators, public acceptance of uranium as an energy source, fluctuations in uranium prices and currency exchange rates, changes in environmental and other laws affecting uranium exploration and mining, and other risks and uncertainties disclosed in UEX's Annual Information Form and other filings with the applicable Canadian securities commissions on SEDAR. Many of these factors are beyond the control of UEX. Consequently, all forward-looking information contained in this news release is qualified by this cautionary statement and there can be no assurance that actual results or developments anticipated by UEX will be realized. For the reasons set forth above, investors should not place undue reliance on such forward-looking information. Except as required by applicable law, UEX disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise.

TABLE 1
2012 Shea Creek (Kianna) Drill Results
Results are reported with a grade of greater than 0.1% eU₃O₈ and a grade-thickness product of greater than 0.2

† UC  - Unconformity mineralization
B  - Basement mineralization

Note: Uranium grades are calculated from gamma probe logging. True widths of mineralized intervals have not yet been determined.

SOURCE: UEX Corporation