Drilling Update

Niger Uranium Limited
29 January 2008


For Immediate Release                                         29 January 2008




                             Niger Uranium Limited

                       ('Niger Uranium' or 'the Company')


       2008 Exploration Drilling Campaign has commenced on Niger Licenses


       Results of surface rock-chip samples - U3O8 grades of up to 0.98%


   •2,500 metre Phase 1 drilling and trenching programme commenced on 18
    (eighteen) targets within the Irhazer and In Gall licenses. Drilling to be
    completed by March 2008.


   •Drilling initially focusing on the more southerly targets where a number
    of surface grab samples and geological mapping indicate strike extensive
    stratiform mineralization, exposed at surface. The target is a Large
    Open-Pittable resource. U3O8 by XRF for 13 surface samples from these
    targets range from 45 to 880 ppm (0.088 %).


   •Groundwork on the northerly, structurally controlled targets is underway.
    Mapping, ground magnetics and track-etch radon detection work will commence
    in early February. U3O8 by XRF for 13 surface samples from these targets
    range from 45 to 9,829 ppm (0.98 %) - multi-element analyses on these
    samples revealed up to 1% Copper. These results confirm the highly
    prospective character of these targets.


   •A significant dataset was received from Areva, containing large amounts
    of historic data for Niger Uranium license areas and surrounding areas. This
    data is currently being catalogued and interpreted and will assist with
    target generation and help fast-track the exploration programme.


   •Work on the southerly targets at Irhazer and In Gall is unaffected by the
    localized security problems experienced elsewhere in northern Niger but the
    situation is being carefully monitored. An independent risk assessment is
    underway.



Niger Uranium has commenced a preliminary 2,500 metre drilling programme on its
targets within the Irhazer and In Gall licenses in Niger. 352 metres of tri-cone
drilling have been completed to date. Radiometric probing is underway. Phase 2
which currently consists of 7,500 drilled metres will commence April 2008.


During mapping carried out late 2007 to assist with borehole planning, twenty
six surface samples were collected. These samples were analysed at SGS Lakefield
of Johannesburg in early January 2008 and the results for U3O8 range from 45 to
9,829 ppm (0.98 %). Results for all samples are set out in Table 1 below. The
location of the grab samples in relation to the Niger Uranium licenses and
uranium deposits in the area is shown in Figure 1.





Table 1: SGS Lakefield results for rock-ship samples

Target   SampleID     utm easting      utm northing      U3O8 (ppm)     Cu (ppm)
   17   ING-H17/01         282545           1856276            587          60
   17   ING-H17/02         284066           1855084            191          70
   17   ING-H17/03         284066           1855084             45          10
   12   ING-H12/04         306513           1853946            267         210
   12   ING-H12/05         306552           1853892            612          70
   18   ING-H18/06         314842           1886049           4967        1590
   18   ING-H18/07         314844           1886043           1524         810
   10   ING-H10/08         308636           1884910             47          50
   10   ING-H10/09         308567           1885074            399         150
   10   ING-H10/10         308482           1884963            567         310
   10   ING-H10/11         308496           1884951            250         110
    9   ING-H09/12         294459           1881465           9829     > 10000
   13   ING-H13/13         275978           1870274            255          40
   13   ING-H13/14         275931           1870270            166         160
   13   ING-H13/15         275904           1870211            194          20
   13   ING-H13/16         275853           1870239            137          30
   13   ING-H13/17         275821           1870221            107          30
   13   ING-H13/18         275757           1870222            123          30
   13   ING-H13/19         273208           1871151            880        1370
   13   ING-H13/20         271970           1874234            117         530
    8   ING-H08/21         281295           1877545            127          60
    9   ING-H09/22         294031           1881057            128         750
    9   ING-H09/23         294036           1881063            453         480
    7   IRZ-H07/24         308753           1921772            191         640
    7   IRZ-H07/25         308642           1921683            172         470
    7   IRZ-H07/26         308565           1921603           1059        1140


Notes:

(i)                   'UTM' means universal transverse mercator; and

(ii)                 'ppm' means parts per million.


Of significant interest are the values of between 117 and 880 ppm U3O8 for
samples from extensive exposed siltstone and sandstone layers at targets 12, 13
and 17. The strike length of the mineralized layer at these targets is
considerable; 20 kilometres at target 17. The company believes there to be
potential for a large, open pittable low grade resource. Systematic drilling and
trenching across the mineralized layer has commenced.


Targets 8, 9, 10 and 18 are structurally controlled domes and basinal features
along the Teguiddan-Adrar Fault. Grab samples from these targets returned values
of up 0.98 % U3O8 and up to 1% copper, the reportable limit for the analytical
method used. These results emphasize the highly prospective nature of the major
structures within the license areas. Drilling will commence at these targets in
February following drilling of the southern targets 12, 13 and 17. Ground
magnetic surveys and track-etch radon detection work will be used to assist in
final target generation.


No drilling has yet commended at the Kamas and Dabala license areas.





Qualified Person

The information contained in this announcement has been reviewed by Keith Kenyon
(MSc. AUS IMM), Geochemical Consultant to Niger Uranium. He is the Qualified
Person overseeing the geochemical exploration on the In Gall-Irhazer licences.
Mr. Kenyon has 36 years experience in gold and uranium exploration and
geochemistry and he is undertaking to act as a Qualified Person for the purposes
of this announcement.


The chemical analyses were undertaken by SGS  Minerals,  Southern Africa; 58
Melvill Street, Booysens, Johannesburg, 2091, Tel.  [phone]. This is
a properly equipped, fully accredited laboratory undertaking analyses and assays
for the mining industry.


Contacts:

Niger Uranium Limited                             Tel: + 27 82 404 36 37
Ian Stalker, Executive Deputy Chairman and
Chief Executive Officer
Beaumont Cornish Limited                          Tel: + 44 (0) 20 7628 3396
Roland Cornish / Michael Cornish
Haywood Securities (UK) Limited                   Tel+ 44 (0) 20 7031 8011
Thomas Beattie
Financial Dynamics                                Tel + (0) 20 7831 3113
Ben Brewerton

ENDS




Figure 1: Location of rock-chip (grab) samples within the In Gall and Irhazer
permits, and surrounding uranium deposits. XRF U3O8values are shown. No grab
samples were collected from Targets 1-6 as these are targets are not exposed at
surface.

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