UBR Initial Drilling and Spectral Gamma Logging Results of Uskawanis Uranium Project

Uranium Bay Resources Inc. update shareholders on the current results of the summer drilling programe on its wholly owned 314 km2 Uskawanis Uranium Property (”UUP”) situated SE of Hydro-Quebec’s Opinaca Hydroelectric Reservoir along the Eastmain River, 180 km SE of Radisson, Quebec.

UBR’s stated goal at UUP is to prospect for low-grade/high-tonnage uranium mineralization, similar to the large low grade uranium deposit, mined as an enormous open-pit operation at Rossing in Namibia. The summer drilling programme is designed to investigate some of the many anomalies defined by the GAP geophysical report and subsequently investigated by UBR field teams.

The primary goal of the programme, discovering significant intersections of uranium mineralization at potential economic grades (greater than 100 ppm U3O8), has now been accomplished.

To date, 12 holes, totaling 1,800 metres, have been drilled on the two anomalies called N3 and N4 (North 3 and North 4). These are shown in Diagrams 1 (http://media3.marketwire.com/docs/UBR_Diagram1.jpg) and 2 (http://media3.marketwire.com/docs/UBR_Diagram2.jpg) that are attached to this press release and will be available on the UBR website at www.uraniumbay.com. Drilling is still underway on N4.

From the drilling and gamma logging, two points are now apparent:

1. Mineralization is as widespread as expected from the geological model. All the holes, for which information is available, have intersected significant uranium mineralization. Six of the twelve holes drilled have good lengths of mineralization of over 100 ppm eU3O8(1) giving a 50% hit rate.

2. All of the mineralization investigated in the N, E, and S anomalies is associated with granites which are pegmatite deficient. Field relationships and other factors lead the UBR team to believe that the uranium mineralization is post granite and pegmatite formation; and that uranium enrichment relates to a later fluid phase that enriched the granites and any contained pegmatites. This suggests that mineralization is NOT directly comparable with the Rossing model, other than for the low grade high tonnage model.

(1) NB. All uranium grades quoted are eU or eU3O8 as they are all derivedfrom a spectra gamma probe logging tool. All information on borehole gradeis radiometrically determined for UBR by Terratec Geophysical Services of Germany (http://www.terratec-geoservices.com) using a Mount Sopris down-hole-logger. The Terratec logging tool has been calibrated at the Palindabafacility in South Africa. By measuring with a spectral gamma probe in theborehole, Radon and Desequilibrium can have some effect on the finalresults, but even in the absent of these factors, variation of +/- 10 to 25
% from the assays results are not uncommon.

Drilling Details:

Anomaly N3 – Seven boreholes have been drilled on the N3 anomaly. Down-hole-logging results are available for all seven holes. These are shown in Figure 3. The N3 airborne radiometric anomaly is caused by a highly radioactive small boulder field. Limited outcrop was found in small cliff sections at the head of this boulder field. The suspected source area of this anomaly is largely covered with moraine / tillite.

Looking at Diagram 3 it can be seen that all seven boreholes show significant levels of mineralization. Significant levels of uranium mineralization are considered to be greater than 25 ppm. Three adjacent boreholes have mineralization over 100 ppm eU308, with the fourth borehole averaging just under this value. This is shown in Figure 3 as the fenced block.

Very crude polygonal calculations, using a 100 ppm eU3O8 cut off, suggest this block could conceptually contain between 7,000,000 to 10,000,000 Tonne of material @ 120 ppm eU3O8, giving us a potential of between 1.8 to 2.6 million lbs2 U3O8. Additional material outside the block is ignored, but the block is open to the east.

Anomaly N4 – Five boreholes have been drilled on the N4 anomaly. The N4 anomaly is a combination of abundant radioactive boulders and scattered radiometric outcrop spread over a length greater than 2 km. The implication is that the radiometric source could be 2 kms or more in length.

Diagram 4 shows the drill situation as of Sunday afternoon. In this diagram, two holes mineralized above 100 ppm eU3O8 are shown separated by a fault from two holes that are less well mineralized. Subsequently a third hole (not shown because logging has not yet been completed) has intersected mineralization on the same zone further north giving a potentially mineralized zone of more than 1,000 m length.

A crude estimate, using once again a 100 ppm cut off suggests that this area could also conceptually contain between 8,750,000 to 12,500,000 Tonne of material @ 100 ppm eU3O8, giving us a further potential of between 1.9 to 2.7 million lbs eU3O8(2).

Diagrams 3 (http://media3.marketwire.com/docs/UBR_Diagram3.jpg) and 4 (http://media3.marketwire.com/docs/UBR_Diagram4.jpg) are attached to this press release and will be available on the UBR website at www.uraniumbay.com. Core samples have been sent to the laboratory for analysis.

UUP Specific discovery – Particular attention needs to be drawn to the fact that gamma logging of BHN4-2 confirmed the intersection of a horizontal fracture zone containing several tens of centimeters of high grade mineralization with values exceeding 0.6% eU3O8.

Interestingly, none of the high grade material detected in the hole by the logger seems to have been recovered in the core. The working hypothesis is that the radioactive material in the core was almost certainly washed out during the drilling, but the high grade zone was definitively measured in the hole by the geophysical logger. Subsequent investigation of the results and equipment seem to confirm this hypothesis with the discovery that the geophysical logger was thoroughly contaminated with radioactive material after having intersected the high grade zone in the hole. Contamination was such that the cable on the drum gave a reading of 375 ppm eU when checked with the hand-held scintillometer.

(2) Statements of potential quantity are conceptual in nature. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.

This discovery of this high grade section demands further investigation and may require a different approach to our drilling program along fracture lines in order to make certain that all the material in a hole can be thoroughly analyzed. In this regard using a reverse circulation drilling method may be more adequate for investigating this type of UUP anomaly.

Mr. Bernard Tourillon, UBR’s Chairman and CEO, comments:

“UBR has demonstrated using airborne radiometrics and ground investigation that there is widespread low-grade uranium mineralization at the UUP. Limited drilling investigation of two of these anomalies (the N3 and N4 anomaly) has shown that both have significant volumes of economic grade mineralization and that there is the potential to consolidate substantial poundage of uranium.”

“UBR intends to extend the current drilling programme and to consolidate and prove-up resources to a reserve status. The ultimate goal is to provide a substantive return to shareholders and investors.”

“UBR’s driven, methodical and scientific approach to Uranium exploration confirms our leadership position in Uranium exploration in the Province of Quebec, currently recognized as one of the best jurisdictions in the world for natural resource exploration.”

About Uranium Bay Resources Inc.

Uranium Bay Resources Inc. is a Canadian based junior resource and exploration company trading under the symbol UBR on the TSX Venture Exchange. The Company has 81,385,731 shares outstanding. The Company holds 100% of several U3O8 mineral exploration properties including the 314 km2 Uskawanis Uranium property located just south of the Opinaca reservoir, the 90 km2 Kauschiskach Uranium property located just 100 km NE of Radisson in the Quebec James Bay area of northern Quebec, and the five properties totaling 197 claims covering the Lac Georges (100 claims), Lac Forget (24 claims), Ruisseau Lebrun (38 claims), Maurice (19 claims) and Bloc extension 06 (16 claims) properties located in the Wakeham area, in eastern Quebec. In addition the Company holds two Namibian concessions known as Gunib and Grootfontein.

The TSX Venture Exchange (TSX-V) does not accept responsibility for the adequacy or accuracy of this release. This news release contains forward-looking statements reflecting Uranium Bay objectives, estimates, expectations and the impact of acquisitions on Uranium Bay’s financial performance. These statements are identified by the use of verbs such as “believe”, “anticipate”, “estimate”, and “expect” as well as by the use of future or conditional tenses. By their very nature, these types of statements involve risks and uncertainty. Consequently, reality may differ materially from Uranium Bay’s projections or expectations.