URC Uranium Royalty Corp

TSX-V: URC

VANCOUVER, June 23, 2011 /PRNewswire/ - Uracan Resources Ltd. ("Uracan" or the "Company") (TSXV: URC) is pleased to announce initial assay results from drilling completed during its winter 2011 drilling campaign.  This drilling focused on two areas of the property: the Costebelle A4 and CC11 zones, part of the Company's 100% owned North Shore Project in Quebec.

Highlights include 10.5 meters of 0.048% U3O8 (483 ppm or 0.96 lbs/t) and 43.5 meters of 0.019% U3O8 (193 ppm or 0.38 lbs/t) in CA4-11-42, 17.6 meters of 0.025% U3O8 (252 ppm or 0.5 lbs/t) in CA4-11-38, 15 meters of 0.034% U3O8 (337 ppm or 0.68 lbs/t) in CA4-11-46 and 12.5 meters of 0.032% U3O8 (322 ppm or 0.64 lbs/t) in CC11-11-05. The grades of uranium mineralization seen at the Costebelle A4 zone continue to show approximately twice the average grades seen at the Double S zone elsewhere on the North Shore Property.

The 18 hole, 3,156 meter drill program was designed to follow up exploration targets outlined during the 2010 drill programs at the A4 and CC11 zones.

The area with drill results received to date occurs along an approximately 600 meter length within an overall anomaly with a potential strike length of approximately 1,500 meters.  This anomaly is defined by airborne and ground radiometrics, surface mapping and channel sampling along with previous drilling.

Mineralization is open along strike, with significant portions of the radiometric anomaly remaining to be tested by drilling.  Mineralization has been extended to approximately 200 meters down dip from the surface outcrop mineralization and remains open in most areas of the A4 zone.

Uranium mineralization at the Costebelle A4 zone occurs as broad multiple stacked mineralized zones hosted by pegmatite dykes and sills with drilled thicknesses ranging up to 59.65 meters.  The true thickness of these zones is unknown at this time but is thought to be similar to drilled thickness.

Due to a lack of experienced drilling personnel, the drilling contractor was unable to complete the winter drilling program as originally planned.  Uracan is working with the drilling contractor to remediate this issue, and plans to continue drilling this summer on the various targets at the North Shore Property.

Costebelle A4 Drilling

A total of 2,576 meters in 14 diamond drill holes was completed during March and April 2011. Uracan's winter drilling objective was to further identify the extent of mineralization encountered in drill results and surface results outlined during both the 2010 drill programs.

Drilling continues to outline mineralization extending to depth with similar widths and grades as those seen in the previous drill program at the A4 zone.  Additional drilling is planned this summer to follow up previous drill results.

A summary of selected mineralized zones from the returned assays is included below:

• Note: Drill hole CA4-11-34 was lost at 30 meters due to poor drilling conditions.  CA4-11-35 was collared approximately 1 meter from CA4-11-34

Costebelle CC11 Drilling

A total of 580 meters in 4 diamond drill holes was completed during winter 2011 at the CC11 zone.  Mapping, airborne and surface geophysical work outlined a potential 1,200 meter long pegmatite body.  Mineralization at CC11 remains open along strike.  Additional drilling is planned this summer to follow up 2010 and 2011 drill results.

A summary of drill results is compiled in the table below:

A map showing the Costebelle A4 and CC11 drill hole locations as well as drill hole coordinates and a complete listing of assay results will be posted on Uracan's updated website: www.uracan.ca.

QA/QC

Samples were shipped by Company personnel in sealed containers to ALS Chemex Laboratories of Val D'Or, Quebec for analysis.  Chemex is the laboratory facility used for all assays from the North Shore Property program.  Samples are weighed and catalogued before sample preparation.  The samples are crushed to 70% less than 2mm, split and then pulverized to 85% of the sample being less than 75 µm.  All samples are assayed using ICP-MS with analysis completed for 47 elements.

A QA/QC program was implemented as part of the sampling procedure for the drill program.  Field duplicates, field blanks and certified standards were inserted into the sample stream with at least one blank, one duplicate and one standard inserted per group of 20 samples sent to the laboratory.  Due to a sampling error made in the field CA4-11-42 did not have standards or blanks inserted into the samples shipped.  However field duplicates were done and the samples from this hole passed the laboratory's internal QA/QC program.  The laboratory has an extensive in house QA/QC system as part of their quality control system.

About Quebec, Canada

Quebec has been voted as the Top Mining Jurisdiction In the World since 2007 by the Fraser Institute Mining Survey and has been in the top 10 since 2001: www.fraserinstitute.org.

Uracan Resources Ltd. is a publicly-listed uranium exploration company, exploring for shallow, bulk tonnage style uranium mineralization in Canada.  Uracan is led by a team of proven exploration and mine entrepreneurs and mine-builders.  The information in this news release has been prepared and reviewed by Marc Simpson, P. Geo., the Company's Qualified Person under National Instrument 43-101 standards.

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. The foregoing information may contain forward-looking information relating to the future performance of the Company.  Forward looking information is subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in our forward looking statements.     Such risks and other factors include, among others, the actual results of exploration activities, changes in world commodity markets or equity markets, the  risks of the mining industry including, without limitation, those associated with the environment, delays in obtaining governmental approvals, permits or financing or in the completion of development or construction activities, title disputes, change in government and changes to regulations affecting the mining industry, and other risks and uncertainties detailed from time to time in the Company's filings with the Canadian securities administrators (available at www.SEDAR.com).  Forward-looking statements are made based on various assumptions and on management's beliefs, estimates and opinions on the date the statements are made.  Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the forward-looking information contained herein.  The Company undertakes no obligation to update forward-looking statements if these assumptions, beliefs, estimates and opinions or other circumstances should change, except as required by applicable law.   

SOURCE URACAN RESOURCES LTD.