Uranium Energy Corp to Acquire a Large Uranium Project in Paraguay

Uranium Energy Corp UEC announces that, effective May 11, 2011, the Company has entered into a Share Exchange Agreement with a Nevada company whereby the Company is acquiring a Paraguayan company which holds a 100% legal and beneficial interest in two unencumbered prospecting permits covering 247,000 acres located in the area of Coronel Oviedo, Paraguay, subject to a gross overriding royalty. The total purchase price for the Paraguayan company is the issuance of 225,000 restricted common shares in the capital of the Company. The Company has also agreed to pay the Vendor a royalty interest in the amount of one and one-half percent (1.5%) of the gross proceeds received by the Company in connection with any uranium which is produced and sold from mineral interests in the Property. The Company also has the exclusive right and option at any time to acquire one-half percent (0.5%) of the aggregate royalty interest for US$500,000. The Vendor has granted the Company a right of first refusal to acquire all or any portion of the remaining one percent (1.0%) royalty interest.