Toro Energy Limited (ASX:TOE) Completes Acquisition Of Dawson-Hinkler Well Project From U3O8 Limited (ASX:UTO)

Perth, Dec 13, 2010 AEST (ABN Newswire) - Toro Energy Limited (ASX:TOE) (PINK:TOEYF) ("Toro") has executed a Definitive Agreement with U3O8 Limited (ASX:UTO) ("U3O8") to acquire 100% of the Dawson-Hinkler Well Uranium Project near Wiluna in Western Australia for a consideration of A$6.2 million.

The completion of this acquisition adds significant additional resources close to Toro's advanced Wiluna Uranium Project currently being assessed for approval by the Western Australian and Federal Governments. The addition increases Toro's total Wiluna region uranium resource base by 25% to more than 30 million pounds of uranium oxide.

The Dawson-Hinkler Well Uranium Project comprises tenements M53/1092(a), E53/1254, E53/1169 and E53/1136, approximately 15 kilometres west of Toro's Centipede deposit (one of two comprising the Wiluna Project).

On completion of the tenement transfers, Toro's total uranium resource base in the area, prepared in accordance with the JORC code, will be:

--------------------------------------------------------------ProjectName  Category  Resource Grade  Contained   Contained                            Tonnes   U3O8  U3O8,tonnes  U3O8,mlb--------------------------------------------------------------Centipede    Measured    0.3     588       177       0.39--------------------------------------------------------------Centipede   Indicated   7.68     619     4,754      10.48--------------------------------------------------------------Centipede    Inferred   1.69     251       424      0.94--------------------------------------------------------------Lake Way     Inferred  10.53     543     5,714 	    12.60--------------------------------------------------------------Total WilunaProject		       20.21     548    11,070      24.40--------------------------------------------------------------Dawson-Hinkler Well Inferred   9.50     293     2,800       6.20--------------------------------------------------------------Total                  29.71     467    13,870      30.60--------------------------------------------------------------Prepared at a 200ppm U3O8 cut-off grade

The commercial terms of the Definitive Agreement remain unchanged from the Memorandum of Understanding announced by Toro on 19 October 2010.

In 2011, Toro will initiate drill programs and other work at Dawson-Hinkler in order to model the deposit and define the mineral resource in accordance with Toro's established methodology. Toro will also conduct preliminary test work to better define properties such as rock density and leach characteristics.

While much work remains to be undertaken at Dawson-Hinkler, Toro believes this agreement is an exciting and important enhancement of its position in the Wiluna region and is in line with the Company's stated aim of resource consolidation.

Contact

Greg Hall Toro Energy Limited Tel: +61-8-8132-5600 http://www.toroenergy.com.au