Uruguay Mineral Exploration Inc. , a gold production and exploration company, announced today that since the last exploration report released on July 17, 2008 three infill holes have been drilled in the down plunge projection of the Arenal orebody. A third drill hole has been completed at Lascano. In addition, exploration permits have been obtained for several other prospects.

David Fowler, UME Chief Executive Officer, commented: “We are encouraged by the results of the drill holes down plunge at Arenal, which were not included in our current four-year mine plan. Drilling over the last four months has defined a zone of higher grade mineralization in the down plunge projection of the Arenal orebody. Based on scoping studies completed during 2008, we believe this zone has the potential to be mined using underground mining methods. We plan to drill an additional hole to try to extend this zone further. Following that, we will commence modeling to establish the viability of mining this zone. The results of this work should be released in our half year report in January 2009.”

One additional drill hole is planned in the down plunge area to complete the program.
A full update of all drilling on the Presidente Terra prospect is expected to be released in the first week of September 2008.
The third hole on the Lascano program has been completed to a depth of 850 meters. Sampling of selected intercepts will be done after detailed logging. Assay results are expected in six weeks. Results from Hole One of the campaign have been received and no significant mineralization has been reported. The fourth hole in the program has commenced.
In addition, two holes have been completed at Nueva Australia with no significant results.
Over the past month, exploration permits have been received for Madre Con Hijos, Vaca Muerta and Zaballa. An exploration permit has also been received for Rivera Diamonds and three drill sites at the Lascano project as well as a permit to drill in prospecting for the Vichadero prospect.

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