Powertech Acquires Additional Land at Dewey-Burdock

POWERTECH URANIUM CORP. announce that, through its wholly owned subsidiary Powertech (USA) Inc., it has entered into an Agreement with Neutron Energy Inc. to exchange some of the Company’s non-core properties in New Mexico, Wyoming, and South Dakota for acreage located within and adjacent to Powertech’s Dewey-Burdock project in South Dakota.

The acreage to be acquired from Neutron by Powertech consists of approximately 1,620 acres of claims and leases within the Company’s proposed permit area and an additional 4,380 acres of prospective claims and leases outside of Powertech’s initial proposed permit area but adjacent to the Dewey-Burdock project. This acreage has historical drilling and adds future development potential to the project.

Initial reviews of the historical exploration data owned by Powertech and Neutron indicate that approximately 800,000 pounds of U3O8 resources at a 0.5 GT cutoff may be attributed to the Neutron properties that are within Powertech’s proposed permit area. The uranium resources are categorized as “historical estimates” and have not been reviewed or verified under National Instrument 43-101. However, the Company believes that the properties have the potential to add significant future development opportunities to the Dewey-Burdock Project. The historical exploration data was developed by the Tennessee Valley Authority (TVA) which conducted a broad exploration program in the area and retained property in the area through 1984, at which time they relinquished holdings due to their exit from the uranium exploration business.

The terms of the Agreement provide for the retention of a 30% net proceeds interest by Neutron from future production on the acquired acreage and Powertech will be the operator. As additional consideration, Powertech has agreed to transfer to Neutron approximately 360 acres of claims and leases, along with associated historical drilling data, in South Dakota. This acreage is located several miles away from Powertech’s Dewey-Burdock project area and is surrounded by properties staked by Neutron. Powertech will also transfer approximately 4,056 acres of claims in the Ambrosia Lake District of New Mexico and approximately 1,656 acres of claims and leases in the Shirley Basin of Wyoming. Each of these properties will add prospective value to Neutron’s portfolio of properties in areas where Neutron has significant interests. For Powertech, while each block of claims to be transferred is prospective, the Company has no historical data and further advancement would require significant expenditure for exploration drilling.

Richard Clement, President of Powertech says “This exchange of properties between Powertech and Neutron will assist both companies in achieving their goals of consolidating key acreage that will strengthen their strategic positions at each of their priority uranium development projects. Our acquisition of these key claims and leases, along with the recent acquisition of claims from Bayswater Uranium Corp., will bring Powertech’s land position to approximately 18,000 acres of mineral interests and surface rights at the Dewey-Burdock project.”

This news release has been reviewed and approved by Mr. Clement, President and CEO of Powertech, under whose direction the company’s operations are being carried out. Mr. Clement, P.G., MSc. is a Qualified Person as defined by National Instrument 43-101.

A qualified person (as that term is defined in National Instrument 43-101) has not done sufficient work to classify the historical estimates discussed above as current mineral resources or mineral reserves. Powertech is not treating the historical estimates as current mineral resources or mineral reserves as defined in National Instrument 43-101 and the historical estimates should not be relied upon.