TABJ - May 24 - Uranium Energy Corp. has announced the completed acquisition of a Paraguayan company which holds a 100 per cent legal and beneficial interest in two unencumbered prospecting permits covering an aggregate of 247,000 acres located in the area of Coronel Oviedo, Paraguay.

Uranium Energy Corp. has issued 225,000 restricted common shares in the capital of the company to complete the purchase. In the event of uranium production from Coronel Oviedo, Uranium Energy Corp. will pay a small royalty to the prior owner.

President and CEO Amir Adnani stated, “We like this new district-scale opportunity in stable and business-friendly Paraguay. The Coronel Oviedo Project makes an excellent fit for our technical team. The geology is very similar to the South Texas uranium belt and is anticipated to be ISR-amenable. We plan to drill the project in the third quarter, and we look forward to reporting further on its potential.”

The Coronel Oviedo Project covers more than 247,000 acres in central Paraguay. Most of the uranium occurrences in this environment are ‘roll-front” type deposits similar to those currently producing uranium by low-cost in-situ recovery methods in Texas, the western United States, Central Asia, and Australia.

Currently, Uranium Energy Corp. is preparing a geological model based on historical data, and is pacing its exploration program at Coronel Oviedo to be able to initiate a 10,000 metre drilling program in the 2011 third quarter.

Uranium Energy Corp. is a U.S.-based uranium production, development and exploration company operating North America’s newest emerging uranium mine. The company’s fully licensed and permitted Hobson processing facility is central to all of its projects in South Texas, including the Palangana in-situ recovery project, which is ramping up initial production, and the Goliad in-situ recovery project, in the final stages of mine permitting for production.