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Press Release

Oct 17, 2012 08:28 ET

Macusani Yellowcake Reports New Near-Surface High-Grade Uranium Intercepts at the Quebrada Blanca Anomaly on the Kihitian Property

TORONTO, ONTARIO--(Marketwire - Oct. 17, 2012) - Macusani Yellowcake Inc. (the "Company") (TSX VENTURE:YEL)(FRANKFURT:QG1) is pleased to announce multiple new high-grade intersections from the ongoing drilling program at the Quebrada Blanca anomaly on its Kihitian Property located in south-eastern Peru.

Highlights:

  • The best high-grade uranium assay was reported on platform 36 from borehole #QB36-TSW, drilled to a depth of 139.50m, over 22.0 m from 12.0 to 34.0 m with a weighted average of 1530 ppm U3O8 (or 3.06 lbs/ton over 72.2 ft).

  • The Quebrada Blanca anomaly is located approximately 2 km northwest of the Chilcuno Chico anomaly on the Kihitian property, on the northwest border of the concession.

  • A very important area, called Isivilla Martinez occurs to north-northeast from Quebrada Blanca, anomaly that will be drilled in the near future.

  • The host of the mineralization is the same young age Macusani rhyolite rock that displays disseminated and fissure-controlled uranium minerals.

These new results were reported from boreholes drilled on platforms 33, 34, 35 and 36. To date eight platforms have been drilled at Quebrada Blanca and all of them have intersected the mineralized manto "B" target.

The best high-grade uranium assay was reported on platform 36 from borehole #QB36-TSW, drilled to a depth of 139.50m, over 22.0 m from 12.0 to 34.0 m with a weighted average of 1530 ppm U3O8 (or 3.06 lbs/ton over 72.2 ft). This included a higher-grade zone of 5.0 m that averaged 0.593% U3O8 (or 11.86 lbs/ton over 16.4 ft). The Quebrada Blanca anomaly is located approximately 2 km northwest of the Chilcuno Chico anomaly on the Kihitian property, on the northwest border of the concession.

Other assay results from Quebrada Blanca are shown in the following table:

PT-QB36-TSW - 139.50m depth From To Intersection (m) Grade (ppm) Grade (lbs)
12.00 34.00 22.00 1,530 3.060
including 29.00 34.00 5.00 5,930 11.860
PT-QB33-TNW - 115.50m depth From To Intersection (m) Grade (ppm) Grade (lbs)
49.00 64.00 15.00 810 1.620
including 50.00 53.00 3.00 3,104 6.208
PT-QB36-TSE - 138.00m depth From To Intersection (m) Grade (ppm) Grade (lbs)
17.00 32.00 15.00 580 1.160
including 20.00 25.00 5.00 1,525 3.050
PT-QB35-TSE - 78.00m depth From To Intersection (m) Grade (ppm) Grade (lbs)
11.00 33.00 22.00 889 1.778
including 21.00 26.00 5.00 3,624 7.248
PT-QB34-TSW - 112.50m depth From To Intersection (m) Grade (ppm) Grade (lbs)
20.00 34.00 14.00 507 1.014
including 30.00 32.00 2.00 2,802 5.604

President and CEO, Dr. Laurence Stefan, stated: "These new uranium assays obtained from shallow drilling in the Quebrada Blanca anomaly are very encouraging and leads us to believe that the future reported geological resources in these zones could be of higher grade than everything else reported to date at Macusani, enhancing the probability of a positive economic study on the plateau."

Several intersections of high-grade uranium from Quebrada Blanca were previously reported in the Company's press releases dated May 17th 2012 and August 21st 2012, including 5.0 m that averaged 2.671% U3O8 (or 53.43 lbs/ton). The drilling continues on the ninth platform in the Quebrada Blanca area. One more platform will be drilled in the near future in order to complete phase one drilling within the Quebrada Blanca anomaly.

Phase two drilling at Quebrada Blance will continue on the other sides of the ravines that surround the anomaly towards northeast and southeast in order to test at depth visual uranium mineralization that outcrops on surface.

A very important new area, called Isivilla Martinez, occurs to north-northeast of the Quebrada Blanca, anomaly and will also be drilled in the near future. The surface exploration and radiometric surveys indicate that in Isivilla Martinez both mantos "A" and "B" may occur. In the Quebrada Blanca area manto "A" was eroded, exposing the high-grade manto "B" on surface and enhancing the technical possibility to mine the future uranium ores in an open pit scenario.

All of these new drilling results and exploration data are being sent to The Mineral Corporation in Johannesburg, South Africa for inclusion in an updated resource estimate for the Kihitian property and extension of the geological model at Chilcuno Chico. The updated resource estimate is expected to be available during the fourth quarter of 2012.

Under the existing geological model, the drilling program at Chilcuno Chico has intersected two mineralized horizons: manto "A", and roughly 100m below, manto "B", which is thicker and of higher uranium grade. Between the two mantos there are at least two zones of intensely disseminated rhyolites of lower uranium grade. At Quebrada Blanca, which is located stratigraphically lower than Chilcuno Chico, manto "A" is usually eroded in the western extremity where drilling is currently in progress. However, manto "B" is located closer to surface, between 10-50m deep according to the present drilling evidence, or manto "B" is exposed in outcrops in deeper ravines.

The host of the mineralization is the same young age Macusani rhyolite rock that displays disseminated and fissure-controlled uranium minerals. The main mineral species are meta-autunite and autunite that have demonstrated to provide high metallurgical recoveries, between 91 to 97% (see the Company's press release dated August 9, 2012).

At present, the Company is operating five diamond drill rigs on the Macusani plateau: three drills on the Kihitian project (one drill at Quebrada Blanca and two drills at Chilcuno Chico) and two drills that have recently started working at new Tupuramani anomaly in order to test the western extension of Colibri II-III.

Previous assay data, maps and a sample cross section are available on the Company's website at www.macyel.com/kihitian/.

Quality Control and Analytical Procedures

Core samples have been crushed and representative samples analysed for Uranium (U) abundance and a suite of 40 elements. The necessary analytical quality control and assurance has been completed by insertion of reference material, duplicate samples and blank material. After crushing, the core is placed in sealed bags and shipped to the CIMM's preparation laboratories in Juliaca, Peru. Following the preparation stage, the sample pulps are sent to CIMM analytical laboratory in Lima where U and a suite of forty other elements are analysed using ICP-MS methodology.

CIMM Peru is an ISO certified assay laboratory. The program is designed to include a comprehensive assay quality control routine comprising the systematic use of standards, blanks and field duplicate samples. Secondary laboratories are used for check assaying.

Qualified Person

Mr. Ian Foreman, P.Geo., of Foremost Geological Consulting, an independent consultant to the Company, is a Qualified Person as defined under National Instrument 43-101, and has reviewed the scientific and technical data contained in this release.

About Macusani Yellowcake

Macusani Yellowcake Inc. is a Canadian uranium exploration and development company focussed on the exploration of its properties on the Macusani Plateau in south-eastern Peru. The Company owns a 99.5% interest in concessions which cover over 90,000 hectares (900 km2) and are situated near significant infrastructure. Macusani Yellowcake is listed on the TSX Venture Exchange under the symbol 'YEL' and the Frankfurt Exchange under the symbol 'QG1'. The Company has 159,473,613 shares outstanding. For more information please visit www.macyel.com.

This news release includes certain forward-looking statements concerning the future performance of Macusani's business, operations and financial performance and condition, as well as management's objectives, strategies, beliefs and intentions. Forward-looking statements are frequently identified by such words as "may", "will", "plan", "expect", "anticipate", "estimate", "intend" and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, competitive risks and the availability of financing, as described in more detail in the Company's recent securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward-looking statements and Macusani cautions against placing undue reliance thereon. Neither Macusani nor its management assume any obligation to revise or update these forward-looking statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.


For more information, please contact

Macusani Yellowcake Inc.
Laurence Stefan
President and CEO
+1-416-628-9600
laurence@macyel.com