EASTMAIN ACQUIRES 1/2 MILLION SHARES OF WESTERN URANIUM CORPORATION
June 2 2006
Eastmain Resources Inc. (TSX - ER) announces that Ruby Hill Exploration Inc. (formerly 50%
owned by Eastmain) has been purchased by Western Uranium Corporation (WUC: TSX-V). Ruby
Hill is the owner of prospecting permits and mineral claims covering approximately 486,000 acres in
the Thelon basin of Nunavut and the Northwest Territories. Under the terms of the letter agreement
issued April 7, 2006 (News release April 11, 2006) and amended April 26, 2006, Western Uranium
Corporation ("Western") has acquired all of the issued and outstanding shares of Ruby Hill in
exchange for 1.1 million shares of Western to Ruby Hill shareholders. All of the shares issued in the
transaction will be subject to a four-month hold period.
As a result of Western's acquisition, Eastmain holds 508,836 shares of Western and Ruby Hill is
now a wholly owned subsidiary of Western Uranium Corporation.
Western also holds an inventory (non-NI-43-101 compliant) of 19 million pounds of uranium, with
significant potential to increase these resources, in properties located in Nevada and New Mexico.
Unconformity-type uranium deposits like those found in Canada's Athabasca basin are the highest
grade deposits in the world. The Thelon basin is geologically analogous to the Athabasca basin and
exhibits excellent exploration potential for hosting similar high-grade uranium deposits. Currently, the
Thelon basin hosts two significant uranium prospects. The Kiggavik deposit, located in the
northeastern part of the basin, is reported to contain 40 million pounds of uranium at a grade of 0.65
per cent of U3O8; and Boomerang Lake, a uranium-gold-silver occurrence with historic drill
intercepts to 0.05% U308, 22.4 g/t Au and 12.3 g/t Ag over a half-metre interval is located along the
southwestern western perimeter of the basin.
Far less intensively explored than the Athabasca, the Thelon basin provides Western with an
excellent point of entry into the Canadian Uranium market. The Company has begun to compile
historical exploration data as a basis for initial field work.
Eastmain's strategy is to provide its shareholders with leverage to a thriving uranium market through
ownership in privately held companies, like Ruby Hill. Ruby Hill is managed by Dr. Neil Hillhouse,
P.Eng, qualified person, Special Technical Advisor to Eastmain, Senior Technical Advisor to
Western Uranium Corporation and former President of Ruby Hill Exploration Inc.
Eastmain is one of the most active mining exploration companies in Northern Québec. The
Company's primary focus is gold exploration within an emerging mining district in the
Eastmain/Opinaca region of Québec. Eastmain recently announced a joint venture agreement with
Goldcorp Inc. and Azimut Exploration to explore the Éléonore South property. It has extended its
strategic alliance with Goldcorp for another 5-year term and has signed a Letter of Intent with
Campbell Resources for the ownership of the Eastmain Gold Mine, located in James Bay Québec.
|