Company Information for Uruguay Mineral Exploration Inc

TSX.V-UME; AIM-UGY

www.uruguayminerals.com

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TSX.V; UME

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AIM; UGY

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Company Statement

Uruguay Mineral Exploration Inc. (UME) is a gold production and exploration company incorporated in Canada that identifies and develops mineral opportunities in South America. UME operates San Gregorio, the only producing gold mine in Uruguay and has assembled an exploration portfolio of gold, diamonds and base metal prospects.

Highlights:

Annual gold production of approximately 95,000 ounces
A strong commitment to value creation through exploration with a budget of $US 8 million for FY2008.
Significant exploration holdings with approximately 700,000 hectares of exploration concessions which provide attractive growth opportunities.
Solid financial position with available cash, minimal debt, cash flow from operations and no hedging obligations.
Experienced management team to focus on growth objectives.
History

The Company was incorporated in October 1996 as 713257 Alberta Inc. pursuant to the Business Corporations Act (Alberta) and in January 1997 changed its name to Uruguay Goldfields Inc ("UGI"). In February 2002, it changed its name to Uruguay Mineral Exploration Inc., discontinued to act in Alberta and continued acting in Yukon.

In March 2000, the Common Shares of the Company were admitted for listing on the Canadian Venture Exchange. In June 2002, the Canadian Venture Exchange was acquired by the Toronto Stock Exchange and its name was changed to the TSX Venture Exchange, where the Company's common shares now trade under the symbol "UME".

In October 2003, the Company purchased the Uruguayan subsidiaries of Crystallex International Corporation for $US2 million in cash, payment of $US 2.7 million in outstanding debt and hedging obligations and the assumption of employee and environmental obligations. The assets acquired included a 1.2 million tonne per annum gold treatment facility and the San Gregorio Gold Project.

During 2004, the Company discovered the Arenal deposit approximately 4 km from the San Gregorio process plant. The permit was received in September, 2004, and mining at the Arenal pit commenced in October 2004.

Objectives
Our objectives for the next three years are to:

Advance exploration to extend the mine life at San Gregorio and develop new resources for a second operation in Uruguay.
Complete evaluation of the development options for the San Gregorio operations and optimize the five-year mine plan.
Commence scoping studies for new projects as resources are developed.
Train the workforce and focus on productivity improvements to reduce costs.
Advance the divestment program for non-gold assets.

Strategy
UME's overall strategy is to build the resources and reserves in order to maintain and then increase gold production.

Current Operations

San Gregorio Gold Mine
The San Gregorio gold operation, located within the Isla Cristalina Belt, comprises a number of open pit mines and a processing plant. The mineralized system covers a 7 kilometre shear zone with three major deposits identified to date - Arenal, San Gregorio and Santa Teresa, which have collectivelly produced more than 800,000 ounces.

Potential underground deposits also exist as extensions to the San Gregorio and Arenal open pits. Ongoing exploration work takes place both within the mine areas and at several prospects in the Minas de Corrales goldfield.

FUTURE DEVELOPMENTS
UME's overall strategy is to build the resources and reserves to maintain and then increase gold production. At San Gregorio, the strategy is the following:

Short-term Exploration and Development: maximise production from San Gregorio with a production target of 100,000 ounces per annum. To achieve this goal, we aim to define and develop high grade resources to blend with existing resources to maintain production levels over a 3 year time frame.
Medium-term Exploration and Development: discover and define 2.5 million ounces of new resources over a five year period. At San Gregorio, targets to achieve this include:

- Near mine exploration in the San Gregorio District in an effort to develop a 10 year mine plan which would require reserves of 700,000 ounces
- Discover and define high grade resources throughout Uruguay that could be transported to the San Gregorio operation or any new processing facility that may be developed.

To support the accelerated development for defining new resources, UME is currently analyzing the viability of the following alternatives:

- Expand production at San Gregorio by 50% to 1.9 million tonnes per annum. The additional throughput would offset lower grades and allow production to be maintained.

- Build a heap leach operation with the capacity to process 750,000 tonnes per annum of lower grade ore.

- Establish an underground mining operation to a depth of 400 meters.

Exploration
Uruguay has considerable potential for gold, nickel, copper and zinc in the Proterozoic Isla Cristalina, La Florida, Arroyo Grande, and Dom Feliciano Belts. The Rio de la Plata craton and adjacent Dom Feliciano Belt are considered to be prospective for diamonds.

The Company has established a significant exploration database during 10 years of operation in Uruguay. This database continues to generate new gold exploration opportunities which are funded by strong cash flow. UME's exploration program is supported by an experienced team of 30 geologists, and a fleet of five diamond/RC drill rigs which it owns.

GOLD Projects
ISLA CRISTALINA BELT: SAN GREGORIO DISTRICT
District Description: The Minas de Corrales goldfield, hosts the San Gregorio district which is located at the northwest end of the Isla Cristalina Belt, 450 kilometres from Montevideo. This district includes the historical deposits of San Gregorio, and Santa Teresa which is located two kilometres northwest of the San Gregorio mine, and the Arenal deposit. Arenal, which is the dominant production source, is located three kilometres southeast of San Gregorio. Several smaller deposits occur between these larger deposits, and the most important are the shear-hosted, "Veta A" and "Veta Sur" deposits.

Exploration Results: At San Gregorio exploration has focused on targets in the footwall to add incremental resource as well as depth extension to the deposit. Intercepts from three down dip holes completed to date are encouraging, although thin, and indicate that the mineralized structure is continuous at depth. Two holes were completed in the Rieles sector of the San Gregorio deposit in March 2008.

At Arenal exploration is currently focused on depth extension of the Arenal deposit. Ten holes have been completed to date, and the results from these holes have been encouraging, but are not considered economic due to limited thickness and/or grade. The results have however confirmed that mineralization does continue down dip. The structure in Arenal continues to be wide, up to 90 metres, and could host a significant mineralized body at depth. The best results received from this program during the February 2008 quarter are presented in the accompanying table. The most important near mine targets are the shear-hosted, Veta A and Veta Sur deposits. Additional targets include Polvorín and Cross Hill. Exploration success continues to be achieved at both Vetas, and drilling will continue along the Veta Sur structure. Prospect drilling has been completed at Polvorin, and the most significant results are reported in the accompanying table. No further exploration is planned at Cross Hill.

Planned Activities: At Santa Teresa, definition and step-out drilling is expected to take place during calendar year 2008. A follow-up drill program is in progress at Arenal to test for higher grade mineralised zones. Mining of the Veta deposits is ongoing and supplies important feed to the plant. Exploration drilling will continue to search for more resources related to this type of structural setting. Follow-up drilling is planned at Polvorin to define a mineralised body.

ISLA CRISTALINA BELT: ZAPUCAY DISTRICT
District Description: The Zapucay district is located 20 kilometres to the southeast of UME's San Gregorio gold mine, and is the second most important district to date in the Minas de Corrales Goldfield. Gold mineralization is hosted in two main deposits, Argentinita and Zapucay. Historical production from the Zapucay deposit was 35,700 ounces at an average grade of 2.1 g/t. In addition to these two deposits, exploration is planned at Lilo, Laureles, Lavadero and Tito Lopez. Exploration drilling has also been completed at Cerro Papagayo. No economic mineralization has been encountered.

Exploration Results: Drilling at Argentinita has defined a total resource 1.7 million tonnes at 1.52 g/t for a total resource of 100,000 ounces. A summary of mineral reserves and resources is shown in the accompanying table. Encouraging near-surface intercepts have been recorded at Zapucay. Surface exploration in the district has defined a new target, Zaballa. Rock-chip sampling has returned a number of significant results.

Planned Activities: Additional drilling around the Zapucay deposit is expected to be completed to better define the resource. No significant mineralization has been encountered at Cerro Papagayo, and no additional drilling is planned at this prospect.

ISLA CRISTALINA BELT: REGIONAL EXPLORATION
Project Description: Regional exploration on the Isla Cristalina Belt is being carried out at Veta Rodrigo and Castrillón in the west comprising a total area of 37,863 hectares, and at Vichadero, Cerro Chato, Vaca Muerta and Curtume in the east comprising a total area of 48,012 hectares. The western projects are located 15 - 20 kilometres northwest of the San Gregorio mine, and those in the east are up to 80 kilometres away from San Gregorio.

Exploration Results: Various exploration activities during calendar year 2007 have resulted in drill programs being planned for four different locations as part of the 2008 regional exploration program. At Vichadero, significant results have been received from a rock-chip sampling program.

Planned Activities: During calendar year 2008 UME expects to drill test Veta Rodrigo and Castrillón in western Isla Cristalina. The objective at Castrillón is to define a resource. In eastern Isla Cristalina the Curtume and Vaca Muerta prospects will also be drill tested during 2008. At Vichadero, soil sampling, trenching and geophysics are underway which will be followed by drilling if justified. At Cerro Chato, prospecting and follow-up stream sediment sampling will be completed.

NON-GOLD
LASCANO PROJECT
Project Description: The Lascano project is based on a large magnetic and gravity anomaly located in the department of Rocha, 240 kilometres northeast of Montevideo. The project covers an area of 277,592 hectares and was originally identified in the late 1980's from a government regional geophysical survey. The anomaly is situated in a major northeast-southwest trending structural corridor.

Exploration Results: The style of mineralization and alteration, suggests the presence of an Iron Oxide-copper-gold (IOCG) or porphyry copper system.

Planned Activities: The scheduled drill program for calendar year 2008 will further investigate the anomalous copper which was discovered in 2007.

LEAD-ZINC-COPPER PROJECTS
Project Description: These projects, which include Retamosa, Maria Albina (Lead-Zinc), and Bragado (copper), cover a total area of 51,284 hectares in the Dom Feliciano Belt. The projects are located approximately 250 kilometres northeast of Montevideo.

Exploration Results: Anomalous copper and zinc has been identified in the Bragado and Retamosa projects respectively, which are located 150 kilometres north of an area within which limited base metal mining has been historically reported. A summary of the historical results is presented below.

Planned Activities: It is UME's intention to joint-venture these projects.

NICKEL PROJECTS
Project Description: The Mal Abrigo and Cerros Negros projects cover an area of 24,185 hectares. They are located immediately north of the town of Mal Abrigo, approximately 125 kilometres northwest of Montevideo. The nickel projects also include the Carpintería project, which covers an area of 12,963 hectares, and is located approximately 30 kilometres east of the San Gregorio Gold mine in northern Uruguay.

Exploration Results: Small amounts of sulphide (trace to 2-3%) have been observed at Mal Abrigo and Carpintería. Typical mineral assemblages are dominated by pyrrhotite, with lesser pentlandite and rare chalcopyrite. Exsolution textures have been identified in a mafic complex at Mal Abrigo.

Planned Activities: It is UME's intention to joint-venture these projects.

RIVERA DIAMOND PROJECT
Project Description: The Rivera diamond project comprises an area of 55,525 hectares. It is located on the Rio de la Plata craton in the departments of Rivera and Tacuarembo in northern Uruguay, approximately 500 kilometres north of Montevideo. The reported recovery of alluvial micro- and macro-diamonds historically, and in the 2007 exploration program, illustrates the potential for the discovery of kimberlites in this region.

Exploration Results: Exploration results to date indicate very good potential for the discovery of kimberlites in Uruguay.

Planned Activities: Kimberlite pipe targets are expected to be drilled during calendar year 2008. It is UME's intention to joint-venture this project.

Board of Directors and Key Management

Tony Shearer	Non-Executive Chairman
David Fowler	Director - Chief Executive Officer
William (Bill) Lindqvist	Non- Executive Director
Julio Porteiro	Non- Executive Director
Roger Davey	Non-Executive Director
Ignacio Salazar	Director - Chief Financial Officer
John Sadek	Director - V P Operations
George Schroer	Director - V P Exploration
Patricia Rodríguez	Company Secretary / Legal Counsel

Company Address

Puntas de Santiago 1604
C.P. Montevideo, Uruguay 11500


Telephone:	+5982 6016354
Facsimile:	+5982 6006232
Email:	urumin[at]ume.com.uy
Website:	http://www.uruguayminerals.com

Additional Address/Key Contact

Tony Shearer, Chairman
10 Napier Road
London W14 8LQ
United Kingdom
Telephone: + 44 (0) 20 7602 1570
tonyshearer@btinternet.com

Capital

Common Shares Outstanding; 48,667,068
Fully Diluted; 51,366,068

Annual General Meeting

November

Year End

May 31

Nominated Advisors

RBC Capital Markets (NOMAD)
Thames Court
One Queenhithe
London
EC4V 4DE

Major Shareholders

Major Shareholders	Amount	% Holding
AXA and affiliates	5,471,587	11.24%
SAAD Investment	4,904,000	10.08%
HSBC Global Custody Nominee (UK) Limited	4,434,075	9.11%
Henderson European Absolute	1,990,000	4.09%
Goldman Sachs International Limited	1,990,000	4.09%

Most Recent Statement

18/06/09 - Uruguay Mineral Exploration Inc: Resignation of Chairman, Tony Shearer
09/06/09 - Gold Production FY 2009
27/05/09 - Diamond Farm-out
21/05/09 - Change of Nominated Adviser and Broker
20/04/09 - Grant Of Stock Options
16/04/09 - 3rd Quarter Results

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