Northern Uranium Limited (ASX:NTU) Reports Early Success At Browns Range High Value Heavy Rare Earths (HREE) Project With 7.95% Yttrium

Perth, July 30, 2010 AEST (ABN Newswire) - Northern Uranium Limited (ASX:NTU) (PINK:NOURF) is pleased to report early success of reconnaissance geological mapping and rock chip sampling at the Company's 100%-owned Browns Range project (E80/3547 & 3548) located 150km southeast of Halls Creek. New quartz-xenotime discoveries indicate the presence of widespread xenotime mineralisation containing high-value HREE and Yttrium. Sampling by Northern's strategic alliance partner, Afmeco Mining and Exploration Pty Limited ('Afmex') in 2008 and historical exploration by PNC Exploration while exploring for uranium in the 1980s, identified xenotime mineralisation within hydrothermal quartz veins and quartz breccias. The recently completed field program was designed to further investigate these high-grade xenotime occurrences, outline their extent and identify new target areas.

A total of 59 rock chip samples were collected from the Browns Range area, with 11 returning assays with TREE+Y greater than 1% and up to a maximum of 7.95% TREE+Y.

REE distribution is dominated by high value Heavy Rare Earth Elements (HREE), with 65-75% of REE's being Heavy REE for all except one of the anomalous samples. Sampling was focused on three separate target areas, one of which had already been identified (Gambit), while the other two are newly discovered zones (Wolverine and Area 5 North). No sampling was carried out at the original Area 5 Prospect, but a ground radiometric survey was completed. Geologically, the project area is dominated by arkosic sediments, minor conglomerates and non-outcropping ultramafics (interpreted from aeromagnetics).

Based on the results highlighted in the table above and the latest Rare Earth prices for oxide FOB China, the range of value of the Brown Range xenotime mineralisation from the above table is US$547 per tonne to US$5,727 per tonne. This is largely due to HREE being over ~70% of all REE in samples.

Petrology studies on rock chip samples from the area confirm the presence of xenotime within quartz veins.

The xenotime is relatively coarse, typically in the range of 50-300 microns with grain groups up to 3mm in length.

Details of the sampling and mapping at each prospect are as follows:

- Gambit Prospect


Xenotime mineralisation was previously identified by Afmex regional reconnaissance sampling as part of their Gardiner-Tanami uranium exploration program. Follow-up sampling has identified a xenotime mineralized quartz breccia zone trending east-west, at least 200m in strike length. Rock chip samples of the quartz breccia assayed up to 2.63% TREE+Y including up to 2.30% Total HREE (THREE) +Y.

- Wolverine Prospect

This is a newly identified zone of high-grade mineralisation located approximately 900m north of the Gambit Prospect. Although limited in outcrop extent, the mineralisation is very high-grade with rock chip results up 7.95% TREE+Y including up to 7.06% THREE+Y. Xenotime mineralisation is associated within an approximately east-west trending quartz vein in a sicified arkosic unit. The mineralisation is open to the west along strike where it is potentially obscured by soil cover.

- Area 5 North

At Area 5 PNC Exploration reported quartz-xenotime veins with extremely high grade results up to 16% yttrium, and 12% HREE. Recent sampling has been focused on a newly recognized mineralised area 500m to north of PNC's mineralisation, where xenotime mineralisation has been identified within a series of east-west trending structures. This mineralisation is separate to that identified by PNC, who were focused on a very high-grade mineralised quartz vein. Mineralisation at Area 5 North is associated with narrow quartz veins within an arkose host and significantly, xenotime also occurs finely disseminated within the host arkose unit.

Further work

Detailed soil sampling has recently been completed over the three aforementioned prospect areas, and samples will shortly be submitted for analysis. Results from this sampling will help determine the extent of an initial drill program which is proposed for commencement in the December quarter. Prior to the commencement of drilling, further more detailed geological mapping and sampling will be undertaken in the target areas.

About Rare Earths

The Rare Earth Industry has strategic importance in the Age of Technology as Rare Earths are critical in many applications including Hybrid vehicles, computers, mobile phones, wind farms to name a few.

Currently 97% of the world production of rare earths comes from China. The US has recently introduced a Rare Earths Supply-Chain Technology and Resources Transformation Act of 2010 to reestablish a competitive domestic rare earths minerals production industry; a domestic rare earth processing, refining, purification, and metals production industry; a domestic rare earth metals alloying industry; and a domestic rare earth based magnet production industry and supply chain in the United States.

Recently, The Chinese Ministry of Commerce has cut the approved export quota of rare earths for the second half of 2010 to 7,976 tonnes, down 72% per cent on last year's second quarter quota of 28,417 tonnes. The prices of many rare earth oxides has increased dramatically in the past 6 months, such as Yttrium increasing from US$10.50/kg to US$15.5/kg, Dysprosium increasing from US$120/kg to US$275/kg.

For the complete Northern Uranium Limited announcement including figures and tables, please refer to the following link:

http://www.abnnewswire.net/media/en/docs/63445-ASX-NTU-499611.pdf

Contact

George Bauk Managing Director Tel: +61-8-9481-2344 Fax: +61-8-9481-5929 Email: info@northernuranium.com.au Web: www.northernuranium.com.au