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Ucore Releases Initial Drill Results and Expands Conceptual Estimate

October 20, 2010 – Ucore Rare Metals Inc. (TSX-V:UCU; “Ucore” or the “Company”) is pleased to provide initial drill results from the 2010 exploration program at the Bokan-Dotson Ridge rare earth project in southeast Alaska, in addition to augmenting the Company’s previously released Conceptual Estimate (or “CE”; released in May 2010). The CE will form the basis of an NI 43-101 compliant Inferred Resource calculation, scheduled for delivery at or around the end of 2010.
 
During the 2010 exploration season, Ucore drilled a total of 3770 metres over 18 holes. Thirteen of these were infill holes in the Dotson Zone in order to confirm continuity of ore zones from 2009 results and to test the mineralization at greater depth. To supplement this effort, 45 trenches were channel sampled along the Dotson Zone. At the Sunday Lake Zone to the north of Bokan Mountain, three holes were drilled to test mineralization along the intrusive contact of the Bokan complex, and two reconnaissance holes were completed within the Geoduck Zone to the south of Kendrick Bay. Final demobilization was completed within the month of September, 2010, and the program has been delivered under budget, at approximately US$ 2.4M.
 
A map showing the location of the drill holes reported in this press release is located on the Company’s website (www.ucoreraremetals.com), and at the following web link: http://www.ucoreraremetals.com/bokan.asp
 

Ucore is now pleased to release the results of the first eight holes within the Dotson Zone, sited to test the eastern end of the zone, before progressing westward along strike. The following table summarizes significant intersected values for Holes 74 to 81 inclusive:

 
Hole
Zone
From (m)
To
(m)
Width
(m)
LREO
HREO
TREO
HREO/TREO
%
%
%
%
LM10-74
Dotson
87.35
88.44
1.09
0.95
0.36
1.31
27.3
113.10
114.75
1.65
0.61
0.22
0.84
26.5
LM10-75
Dotson
174.94
176.64
1.70
0.63
0.20
0.83
24.2
221.26
222.50
1.24
0.27
0.29
0.56
52.3
LM10-76
Dotson
148.36
153.96
5.60
0.40
0.17
0.57
29.7
199.55
200.91
1.36
0.44
0.14
0.59
24.3
LM10-77
Dotson
220.51
222.49
1.98
0.83
0.65
1.47
43.9
251.52
253.40
1.88
0.83
0.89
1.72
51.9
LM10-78
Dotson
153.53
154.63
1.10
0.47
0.15
0.63
24.5
173.27
175.05
1.78
0.61
0.23
0.84
27.1
190.94
192.56
1.62
0.23
0.23
0.45
50.2
200.03
202.45
2.42
0.55
0.52
1.07
48.8
205.39
207.42
2.03
0.34
0.25
0.59
42.2
LM10-79
Dotson
85.83
88.59
2.76
0.13
0.27
0.40
67.8
133.02
134.67
1.65
0.22
0.23
0.45
51.6
LM10-80
Dotson
189.80
191.64
1.84
0.56
0.57
1.13
50.4
196.41
198.08
1.67
1.05
0.66
1.71
38.8
LM10-81
Dotson
38.40
39.78
1.38
0.25
0.16
0.40
38.9
307.86
311.55
3.69
0.24
0.16
0.40
40.9

LREO= Light rare earth elements: La, Ce, Pr, Nd, Sm as oxide
HREO= Heavy rare earth elements: Eu, Gd, Tb, Dy, Ho, Er, Tm, Yb, Lu and Y as oxide
TREO= Total rare earth oxides: LREO+HREO
HREO/TREO = Proportion of HREO relative to TREO in %
Note: All widths are apparent widths, and totals may not equal due to rounding.

Assay results for holes 82 to 91 remain pending, and will be released when received and confirmed.

The Company is also pleased to update and augment our Conceptual Estimate for the Dotson and I&L Zones, previously released in May 2010. According to NI 43-101 provisions, a Conceptual Estimate must be expressed as a range of estimated grade and tonnage for a subject area. Based on a detailed analysis of drill results, the revised model has generated an estimated 3.5 to 6.5 million tonnes with an estimated grade ranging from 0.76% to 1.42% total rare earth oxides (TREO). The model also indicates that heavy rare earths comprise approximately 40% of the total rare earth content in the targeted areas. The estimates are summarized as follows: 

Conceptual Estimate
Original Model

(May 2010)

Revised Model

(October 2010)

Total Combined Strike Length
2425 m 2425 m
Projected Depth
200 m 200 m
Estimated Contained Mineralized Tonnage
2.7– 5.1 million tonnes 3.5 – 6.5 million tonnes
Estimated Grade TREO
0.50% – 0.92% 0.76% – 1.42%
 

“These initial drill results exceed our expectations for the Dotson Zone, as we count down to the final few holes required to deliver an NI 43-101 compliant Inferred Resource at or near the end of this year,” said Jim McKenzie, President and CEO of Ucore. “As always, our objective has been to verify the historical resource for this area as set out by the U.S. Geological Survey (formerly the US Bureau of Mines; USBM OFR 33-89), converting these expectations to NI 43-101 compliance, before embarking on an aggressive mine feasibility and development schedule in 2011.”

“In May of this year, Ucore released a Conceptual Estimate for the combined I&L and Dotson Zones,” continued McKenzie.   “We’re now delighted to upgrade those figures, with an approximate 50% increase in the overall grade and 30% increase in the overall tonnage, beyond the estimates released in May. The skew towards HREE content for the deposit remains exceptionally strong, and places Bokan amongst the highest known HREE skews in the world. Together, the increased grade and tonnage figures represent a deposit sufficient to meet U.S. heavy rare earth needs for decades.”

“The federal government is now acting upon a policy of generating a fully self contained rare earth industry in the U.S., from mine mouth to market, as a response to constricting supplies out of China,” said McKenzie. “Bokan represents the largest and most accessible historically estimated HREE resource in the United States. What’s more, upon the delivery of our resource calculation in the near term, Bokan will be the only primarily HREE-enriched deposit on U.S. soil with a fully documented NI 43-101 compliant resource. It’s a unique position which places Bokan as an alternative and complementary bookend to Rare Element Resources’ primarily LREE-oriented deposit in Wyoming and Molycorp’s primarily LREE-oriented deposit in California.”

The 2010 exploration program was initiated in mid-June, and included mapping, trenching and diamond drilling at the Dotson Zone. Induced polarization survey and diamond drill programs were also conducted at the Sunday Lake Zone. The Company additionally undertook an extensive airborne radiometric survey of the area, followed by regional mapping and prospecting, focused on the overall property and surrounds. 

Mapping, trenching and drill work along the Dotson Zone indicates that the zone has a strike length of at least 2180 m, averaging 50 m wide and extending from 300 m above sea level to at least 150 m below sea level. Geological mapping, trenching and drilling has defined 24 veins or vein-arrays within the zone. Overall, the zone strikes ESE-WNW and has a variable steep dip.   Preliminary variography based on the 2009 drill results suggests that drill intercept grades have a range of 160 m. 

The primary objective of the 2010 drill program was to test the Dotson Zone with sufficient intersection density to support a resource calculation, in addition to filling in gaps remaining from 2009 reconnaissance drilling. All holes drilled in 2010 intersected visible mineralization and the drill program has established the integrity and continuity of the zone within the limits described above. The Dotson Zone remains both open at depth and on strike.

NI 43-101 Compliance

Diamond drill core was split on site, with half the core transported by commercial carriers to the Activation Laboratories analytical facility in Stewart, B.C., Canada and check assay samples submitted to ALS Laboratories in Whitehorse, Yukon Territory, Canada.   Sample containers were sealed and chain of custody was maintained throughout transport.  The QA/QC program included the insertion of certified standards, blanks and duplicates in the submitted sample shipments; and laboratory insertion and analysis of standards and blanks, duplicates and resplits.  Analyses were made by inductively-coupled plasma mass spectrometry with lithium metaborate fusion, reporting whole rock analyses as an additional quality control measure.  Reported values are length-weighted averages from multiple samples.  All widths reported are core intercepts; insufficient structural information is available to make a conclusive statement on the relationship between true width and core intercept.  Mike Power, P.Geo., (BC), CPG (AIPG), an independent geologist with Aurora Geosciences, has prepared the technical data relative to the drill assays provided herein and is the qualified person responsible for their accuracy.

Readers are cautioned that the exploration information of potential quantity and grade outlined herein, is conceptual in nature, that there has been insufficient exploration to define a mineral resource and that it is uncertain if further exploration will result in the target being delineated as a mineral resource as defined in the CIM definition standards Dec. 11, 2005. David White, P.Geol. (NWT), an independent geologist with Aurora Geosciences, has prepared the technical data relative to the Conceptual Estimate provided herein and is the qualified person responsible for its accuracy.

Background

Ucore Rare Metals Inc. is a well-funded junior exploration company focused on establishing REE, uranium and other rare metal resources through exploration and property acquisition. With multiple projects across North America, Ucore’s primary focus is the 100% owned Bokan – Dotson Ridge REE property in Alaska. 

The Bokan – Dotson Ridge project is located 60 km southwest of Ketchikan, Alaska and 140 km northwest of Prince Rupert, British Columbia. The project area is served by barge and float plane from Ketchikan, with a pre-existing road network providing access to the main target areas.   REE mineralization at the Bokan-Dotson Ridge project is structurally controlled in multiple dikes radial to a Mesozoic peralkaline intrusive complex.

In 1989, a U.S. Bureau of Mines study (Barker & Warner, USBM OFR 33-89) estimated that the greater Bokan area contains 37.8 million tons grading 0.50% TREO. This historical non NI 43-101 compliant estimate equates to 374 million lbs of contained TREO and ranks as one of the most prospective and accessible heavy rare earth prospects in North America.

Readers are cautioned that the resource estimates quoted by the US Bureau of Mines were prepared prior to the implementation of National Instrument 43-101 and are therefore of a historical nature. A qualified person has not done sufficient work to classify the historical estimate contained hereunder as current mineral resources. The Company is not treating the historical resource estimate as a NI 43-101 defined resource or reserve, and therefore the historical resource estimate should not be relied upon.

For further information, please contact Mr. Jim McKenzie, President and Chief Executive Officer of Ucore Rare Metals Inc. at: (902) 482-5214. 

This press release includes certain statements that may be deemed “forward-looking statements”. All statements in this release, other than statements of historical facts, that address future exploration drilling, exploration activities and events or developments that the Company expects, are forward looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include exploitation and exploration successes, continued availability of financing, and general economic, market or business conditions.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.