UME Purchases More of Its Own Shares

Wed May 14, 2:00 AM

MONTEVIDEO, Uruguay--(BUSINESS WIRE)--Uruguay Mineral Exploration Inc (“the Company”) (TSX VENTURE: UME.V) (LSE: UGY.L) announces that on 13 May, 2008 CIBC World Markets plc has purchased on its behalf a further 31,200 of its common shares (“Common Shares”) at a price of C$ 2.80 per share; these shares will be immediately cancelled. After such cancellation, the number of issued and outstanding Common Shares of the Company will be 48,810,868.

This purchase has been made following the announcement made on 11 December, 2007 regarding the share buy-back programme.

The cumulative total number of Common Shares purchased since then is 130,400 at an aggregate cost of C$ 407,496.

Tony Shearer, Chairman commented: “As discussed in the 3rd quarter release, we were surprised and a little disappointed that the drilling at depth near the mine did not produce the results we were expecting. However we believe that we have a number of very promising targets that we are drilling in 2008. The Company has bought back these shares as the Directors believe that the price paid is significantly lower than the Company’s fair value.”

ENDS

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

Editors’ note: Uruguay Mineral Exploration Inc. is a gold producer and exploration company focused on identifying and developing mineral opportunities in Uruguay. UME is a fully integrated mining company, possessing the skills necessary to explore and develop its discoveries. The Company operates the only producing gold mine in Uruguay (San Gregorio), and is also the leading mineral exploration company in Uruguay having assembled an exploration portfolio based on gold, base metals (copper, nickel, lead, zinc) and diamond prospects.

Uruguay Mineral Exploration Inc. is quoted in Canada (TSXV) and London (AIM) and RBC Capital Markets is its Nominated Adviser and Broker.

Uruguay Mineral Exploration Inc
Tony Shearer, Chairman: +44 20 7602-1570
tonyshearer@btinternet.com
David Fowler, CEO: 598 2 6016354
urumin@ume.com.uy
or
Investor/Media Relations
Shared Value Ltd
Emily Bruning: +44 (0) 20 7321 5027
ebruning@sharedvalue.net
or
RBC Capital Markets
Andrew Smith: +44 (0) 20 7029 7882
andrew.smith@rbccm.com
Sarah Wharry: +44 (0)20 7653 4667
sarah.wharry@rbccm.com