Uranium Energy Corp has provided its fifth update this year of its progress at its Goliad Project in South Texas.

Since acquiring the Goliad project, the Company has drilled over 360 holes and completed extensive sampling, mapping and reporting by experienced independent and internal technical staff in generating a number of studies for permitting applications. The Company plans to develop an in-situ uranium recovery facility, following the completion of further resource definition and engineering studies, that must meet the stringent review and analysis of the Texas Commission on Environmental Quality (TCEQ) for air, water, and radiation emissions before permits and licenses are granted. In-situ recovery is a mining process developed in South Texas over the past 30 years. The process is well understood and has been applied successfully at other South Texas mining projects.

According to the Nuclear Energy Institute, there are 104 operating nuclear reactors in the US providing 20% of domestic electricity supply. On September 25th, 2007, a milestone announcement was made by NRG Energy, a major utility, which stated that it had submitted applications for two new nuclear reactors in Texas, marking the first time in nearly 30 years that a utility has submitted a complete application to build new reactors. The existing nuclear plants in the US are consuming 55 million pounds of uranium annually while domestic production is approximately equal to only 4 million pounds per year. This heavy dependence on foreign sources of uranium emphasizes the strategic opportunity for US-based developers of uranium projects, such as Uranium Energy Corp, to bring much needed US-mined uranium to support the necessary expansion of this vital industry. As with the oil industr y, Texas is positioned to lead the way in nuclear energy.

The South Texas geology is host to many uranium deposits stretching from Houston to Brownsville. Every Texas county south of San Antonio possesses uranium deposits of various sizes and concentrations. The industry is highly regulated to ensure safety for employees, neighbors and the environment. Financial surety - money put aside by the companies to ensure proper restoration and closure of uranium mining areas - is a requirement before any mining can occur. Public meetings and public hearings are an important part of the development process so the community can understand the project and its safeguards, and the Company can address concerns.

The Texas Railroad Commission, the regulatory authority that oversees mineral exploration in the state of Texas, has issued two separate letters, one to the Goliad County Groundwater Conservation District, and another to the Goliad County Commission, regarding concerns that groundwater contamination might have resulted from exploration drilling in the Goliad area. The Railroad Commission stated:

‘To date, the Commission’s investigation of your complaint has not revealed any practice or activity at UEC’s Uranium Exploration Permit No. 123 that is out of compliance with the Texas Uranium Mining Regulations or the Uranium Surface Mining and Reclamation Act. We consider this investigation to be closed.’

The Company also confirms that it is in compliance with Texas Railroad Commission (RRC) surface drill-hole site restoration procedures. As reported in the Company’s release dated May 16, 2007, the RRC had issued a notice of violation to the Company regarding surface restoration procedures. A visit to the project site by RRC inspectors during the summer confirmed that all drill-hole sites are now in compliance with existing requirements.

Uranium Energy Corp has committed to the Texas Railroad Commission and Goliad County officials and populace, that it will operate in a transparent manner, and be a good steward of the environment. The development of the Goliad Project will provide an important economic engine for Goliad County, and will enhance the county’s tax base, creating new revenue for the county’s school district and other county and municipal agencies.