Atom Energy (ASX:AXY) Announces A First JORC Resource At Cleo's Uranium Deposit

Perth, Mar 26, 2008 AEST (ABN Newswire) - Uranium explorer Atom Energy Ltd (ASX: AXY) has an Inferred uranium resource under the JORC Code for its Cleo's uranium deposit in the Pine Creek region of the Northern Territory.

Resource Consultants Coffey Mining estimate a total resource of 1.409 million tonnes grading 304 ppm U308 from an initial drilling programme by Atom Energy in the 2007 field season.

The Resource is based on a 100 ppm lower cut-off grade and is based on drilling on the Dam prospect (585,000t @ 286 ppm U308) and the Twin prospect (824,000t @ 316 ppm U308).

The Resource is limited to drilling to a vertical depth of 60 metres, whereas historic exploration by Total Mining on the prospect in the early 1980s identified a non-JORC compliant estimate of 600,000t grading 1,200 ppm U308 down to a depth of approximately 120m, using a lower cut-off of 300 ppm.

The assessment by Coffey Mining discounted some narrow high grade zones encountered by the 1980s explorer.

Atom Energy's managing director, David Hamlyn said the new uranium Resource, which has been classified in accordance with the JORC Code, has been defined at relatively shallower depths and demonstrates potential for additional tonnage increases with further deeper infill and extension drilling.

Some of Atom's detailed drilling intercepts included 23m @ 749 ppm U308 from 30m depth; 10m @ 1,490 ppm U308 from 32m at Dam and 9m @ 2004 ppm U308 from 23m and 16m @ 802 ppm U308 from 25m at Dam.

The Company's existing projects include:

Northern Territory

- Cleo's Uranium Project -452km2 (100%)
- Munadgee Creek Uranium Project -16km2 (100%)
- Native Gap Joint Venture Project -1,582km2 (100%)
– NuPower Resources right to earn 70%
- Gaylad Creek Exploration Project -402km2 (100%)
- Kurinelli Exploration Project -1,562km2 (100%)
- Allambi Exploration Project -1,426km2 (100%)
- Palmer River Exploration Project -1,458km2 (100%)
- Randall's Peak Exploration Project -446km2 (100%)
- Irindina Exploration Project -3,217km2 (100%)

Utah, USA

- Shootaring Mountain Exploration Project -7.7km2 
  (25%, right to acquire 100%)
- Maggies Exploration Project -4.1km2 
  (50%, right to acquire 100%)
- Green Dragon Exploration Project -4.2km2 
  (50%, right to acquire 100%)

The Company's Cleo's Project lies within the highly prospective Pine Creek Geosyncline. Extensive drilling in the 1980s and recent new drilling and assaying has identified an inferred resource at the Twin and Dam deposits of 0.96 million lbs (430 tonnes) of contained U3O8 at an average grade of 0.03%. The Cleo's Uranium Project hosts good potential to delineate additional uranium resources at depth and on strike at Twin and Dam and further deposits at the other nine prospects within the project area.

In October 2007, the Company finalised the acquisition of a further 8,100 square kilometres of exploration tenements in the Northern Territory and in February 2008 completed the acquisition of Mustang Energy Ltd providing access to projects in the highly prospective Four Corners uranium district in Utah.

Atom will progress exploration and resource delineation programs on its tenements in Australia and the United States and will continue to seek opportunities to acquire new projects within Australia and overseas in regions with supportive infrastructure and policies conducive to the timely development of resources.

Contact

David Hamlyn Managing Director Tel: +61-8-9202-1219 Mob: +61-417-915-548 Web: www.atomenergy.com.au