ATHABASCA URANIUM IDENTIFIES MULTIPLE TARGETS BY Z-TEM

Mar 24, 2011, 09:00 ET from Athabasca Uranium Inc.

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VANCOUVER, March 24 /PRNewswire/ - Athabasca Uranium Inc. ("Athabasca" or the "Company") is pleased to announce preliminary results of its 3,246 line kilometer heliborne Z-TEM (Z-Axis Tipper EM) survey of the East Key Lake, McGregor Lake, Webb River and McCarthy Lake uranium projects, located on the southeastern margin of the Athabasca Basin, Saskatchewan.

Z-TEM is effective at identifying discrete vertical conductive anomalies as well as features at the unconformity and basement. In general, conductive anomalies existing within magnetic discontinuities may represent primary exploration indicators for altered sandstones and mineralized zones. In the Athabasca Basin, the vast majority of uranium mines and exploration deposits - including Denison's Wheeler River Project, Fission's Waterbury Lake Project, Hathor's Roughrider Zone and JNR/Denison's Moore Lake Project - are associated with subsurface graphitic conductors.

Multiple, highly prospective targets were successfully identified through the Z-TEM survey as follows:

McCarthy Lake (50% Interest)

Two significant conductive zones were identified in the Z-TEM survey, confirming and augmenting the results of the Tempest Mag/EM survey flown in 2007.  Conductor A appears to be a two-lobed structure, roughly 5km in length, originating in the southeast and striking northwest. This target, which exists within a magnetic low, persists through all channels of the Tempest survey and appears to extend to the unconformity, and possibly into the basement.  Conductor B is approximately 6 kilometres in length in the northwestern quadrant of the McCarthy Property. The target has a northeastern strike and again lies within a magnetic low. In addition, a prominent northwest magnetic feature, interpreted as a 10 kilometer fault, appears to cut across Conductor A and B.

Webb River (100% Interest)

Results of the Z-TEM strongly correlate with Saskatchewan government's EXTECH IV regional Mag/EM survey conducted in 2004. The center of the property, which has a relatively low magnetic response, appears to be strongly dilated to the northeast.  An array of northeasterly trending conductors was also identified by the Z-TEM, correlating strongly with airborne and ground VLF-EM and magnetometer surveys carried out by Sander Geophysics and Phantom Exploration Services in 1979-1980. Strongly magnetic features appear to be acting as controls for the northeasterly trending conductors.  Refinement of the Z-TEM data is expected to produce viable exploration targets within the conductive array.

McGregor Lake (100% Interest)

Results of the Z-TEM correlate strongly with a 2006 GEOTEM survey commissioned by IUC.  In general, the southern extent of this 18,699ha project is dominated by a strongly magnetic northeasterly striking feature.  In the north, several conductors, each several kilometers in length, were identified. Conductor E lies at the northern edge of a magnetic feature and its northwesterly strike crosscuts the predominantly northeasterly magnetic features.  Two conductors, F and G, correspond to the southern extent of the Moore Lake Complex. Several other conductive anomalies also were noted.

East Key Lake (100% Interest)

Z-TEM data shows excellent correlation with the Saskatchewan government's EXTECH IV regional Mag/EM survey conducted in 2004.  An examination of total magnetic intensity (TMI) revealed a roughly northeast-trending magnetic feature, interpreted as an archean granitic fold or body.  In addition, electromagnetic (EM) data revealed a significant conductive anomaly coincident with a magnetic low, just west of the magnetic high.  This conductive region has been preliminarily evaluated as a high priority target zone at East Key Lake.

The Company is currently refining the Z-TEM dataset and results which will be crucial in prioritizing the projects for ground surveying. Final interpretation is expected over the next thirty days. Athabasca's VP Exploration Dr. Peter Born, P.Geo, commented: "The quality of anomalies will be assessed and then prioritized to establish areas for subsequent ground surveys and drilling".

Dr. Peter Born, P.Geo, is responsible for the technical content in this release.

About Athabasca Uranium

Athabasca Uranium Inc. is a uranium exploration and development company using leading-edge technology to explore an aggregate of over 80,000 acres strategically located in the uranium-rich Athabasca Basin region of northeast Saskatchewan.  Additional information on Athabasca Uranium and its exploration projects is available on the Company's website at www.athabascauranium.com.

ON BEHALF OF THE BOARD OF DIRECTORS

   "Gil Schneider"

Gil Schneider, President & CEO

Some of the statements contained in this press release are forward-looking statements and information within the meaning of applicable securities laws. Forward-looking statements and information can be identified by the use of words such as "expects", "intends", "is expected", "potential", "suggests" or variations of such words or phrases, or statements that certain actions, events or results "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved.  Forward-looking statements and information are not historical facts and are subject to a number of risks and uncertainties beyond the Company's control.  Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this news release. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements, except as may be required by law.

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SOURCE Athabasca Uranium Inc.