Uranium One Announces Industrial Production Approval for South Inkai

Uranium One Inc. ("Uranium One") today announced that the Kazakh Ministry of Energy and Mineral Resources has formally approved the commencement of industrial production at South Inkai. The approval was given by way of an amendment to the South Inkai subsoil use agreement and permits the Company's 70% owned Betpak Dala joint venture to ramp up production at the South Inkai Uranium Mine over the next three years to 5.2 million lbs U(3)O(8) per year.

As a result of the approval, commercial production for accounting purposes will now commence at South Inkai. The processing plant at South Inkai was completed earlier this year, and the first sale of South Inkai uranium production is expected to take place shortly. The revenue and associated expenses with the sale of South Inkai production will now be included in Uranium One's consolidated statements of operations.

South Inkai is Uranium One's second mine to enter into commercial production and at full capacity is expected to be twice the size of the Company's Akdala Uranium Mine.

As previously announced, Uranium One's attributable production from South Inkai is expected to be 766,500 lbs U(3)O(8) for 2008. As of the end of November 2008, Uranium One's year to date share of production from South Inkai was approximately 710,000 lbs U(3)O(8). Well field development is ahead of schedule and, in November, South Inkai received sufficient sulphuric acid to commence acidification of Block 4 at the operation.

Uranium One expects its attributable production from South Inkai to be 1.5 million lbs U(3)O(8) in 2009. The average cash cost per pound sold during 2009 at South Inkai is expected to be approximately US$28 per pound, but due to the continuing ramp up in production throughout the year, the cash cost per pound sold is expected to decline to approximately $20 per pound by the end of 2009.

About Uranium One

Uranium One is one of the world's largest publicly traded uranium producers, with a globally diversified portfolio of assets located in Kazakhstan, the United States, South Africa and Australia.

Cautionary Statement

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

Forward-looking statements: This press release contains certain forward-looking statements. Forward-looking statements include but are not limited to those with respect to the price of uranium, the estimation of mineral resources and reserves, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, currency fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage and the timing and possible outcome of pending litigation. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes" or variations of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Uranium One to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, the actual results of current exploration activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, possible variations in grade and ore densities or recovery rates, failure of plant, equipment or processes to operate as anticipated, accidents, labour disputes or other risks of the mining industry, delays in obtaining government approvals or financing or in completion of development or construction activities, risks relating to the integration of acquisitions, to international operations, to the price of uranium as well as those factors referred to in the section entitled "Risk Factors" in Uranium One's Annual Information Form for the year ended December 31, 2007, which is available on SEDAR at www.sedar.com, and which should be reviewed in conjunction with this document. Although Uranium One has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Uranium One expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except in accordance with applicable securities laws.

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SOURCE: Uranium One Inc.

Jean Nortier, Chief Executive Officer, Tel: (604) 601-5642; Chris Sattler, Senior Vice President, Corporate Development and Investor Relations, Tel: (416) 350-3657