Company Targets Initial 10,000-Meter Drilling Campaign To Commence Q3
This Calendar Year.

NYSE Amex Equities Exchange Symbol – UEC

CORPUS CHRISTI, TX, May 24, 2011 /PRNewswire/ – Uranium Energy Corp (NYSE-AMEX:
UEC, the “Company”) is pleased to announce that it has now completed
the acquisition of a Paraguayan company which holds a 100% legal and
beneficial interest in two unencumbered prospecting permits covering an
aggregate of 247,000 acres located in the area of Coronel Oviedo,
Paraguay (the “Property”). Please see the Company’s news release dated
May 12, 2011 which provides the details of the purchase and the history
and geology of the Coronel Oviedo Property.

The Company has issued 225,000 restricted common shares in the capital
of the Company to complete the purchase. In the event of uranium
production from the Property, the Company will pay a small royalty to
the prior owner as detailed in the earlier news release.

President and CEO Amir Adnani stated, “We like this new district-scale
opportunity in stable and business-friendly Paraguay. The Coronel
Oviedo project makes an excellent fit for our technical team. The
geology is very similar to the South Texas uranium belt and is
anticipated to be ISR-amenable. We plan to drill the project in Q3, and
we look forward to reporting further on its potential. Our objective
here is to achieve an initial NI 43-101-qualified resource as quickly
as possible.”

About the Coronel Oviedo Project

The Property covers over 247,000 acres in central Paraguay. Most of the
uranium occurrences in this environment are “roll-front” type deposits
similar to those currently producing uranium by low-cost in-situ
recovery (ISR) methods in Texas, the western United States, Central
Asia and Australia.

Currently, the Company is preparing a geological model based on
historical data, and is pacing its exploration program at Coronel
Oviedo to be able to initiate an approximate 10,000-meter drilling
program in the 3^rd Quarter of this calendar year.

Historical data is based on extensive uranium exploration on the
Property between 1976 and 1983 by Anschutz Corporation and by Crescent
Resources between 2006 and 2008. A total of 31 drill holes, out of the
52 holes drilling by both Anschutz and Crescent, show significant
uranium values.

The Crescent and Anschutz drilling identified open-ended, tabular-like
mineralization similar to that found at the Company’s Goliad Project.
The known uranium mineralization on the Property intersected by the
past drilling is at depths between 450 and 750 feet.

Prior to completing the acquisition, the Company enlisted
HydroSolutions, of Denver, Colorado, to conduct a 24-hour aquifer test
in the mineralized area identified by the Anschutz-Crescent drilling
programs to determine if the aquifer could sustain extraction rates
typical of ISR mining of uranium; and it can.

To support operations in Latin America, the Company has appointed Dr.
Bernie D. Schmeling and Carlos Figueredo to a special advisory board
focusing on Paraguay. Dr. Schmeling is a professional geophysicist and
is currently Chief Operating Officer of Semin S.A. With more than 35
years of experience in exploration and mining, Dr. Schmeling is
internationally recognized as one of the few leading experts in uranium
ISR exploration. Carlos Figueredo has 25 years of experience in mineral
and oil exploration in Paraguay as Chief Geologist and Assistant
Mineral Exploration Manager of Semin S.A. He formerly worked for
Anschutz Corporation during its initial exploration efforts in Paraguay
and played a pivotal role in the earlier development of the Coronel
Oviedo project.

The technical information in this news release was prepared in
accordance with the Canadian regulatory requirements set out in
National Instrument 43-101 and reviewed by Clyde L. Yancey, P.G., Vice
President of Exploration for Uranium Energy Corp, a qualified person as
defined by NI 43-101.

About Uranium Energy Corp

Uranium Energy Corp is a U.S.-based uranium production, development and
exploration company operating North America’s newest emerging uranium
mine. The Company’s fully licensed and permitted Hobson processing
facility is central to all of its projects in South Texas, including
the Palangana in-situ recovery project, which is ramping up initial
production, and the Goliad in-situ recovery project which is in the
final stages of mine permitting for production. The Company’s
operations are managed by professionals with a recognized profile for
excellence in their industry, a profile based on many decades of
hands-on experience in the key facets of uranium exploration,
development and mining.

Stock Exchange Information:
NYSE-AMEX: UEC
Frankfurt Stock Exchange Symbol: U6Z
WKN: AØJDRR
ISN: US916896103

Safe Harbor Statement

Except for the statements of historical fact contained herein, the
information presented in this news release constitutes “forward-looking
statements” as such term is used in applicable United States and
Canadian laws. These statements relate to analyses and other
information that are based on forecasts of future results, estimates of
amounts not yet determinable and assumptions of management. Any other
statements that express or involve discussions with respect to
predictions, expectations, beliefs, plans, projections, objectives,
assumptions or future events or performance (often, but not always,
using words or phrases such as “expects” or “does not expect”, “is
expected”, “anticipates” or “does not anticipate”, “plans, “estimates”
or “intends”, or stating that certain actions, events or results “may”,
“could”, “would”, “might” or “will” be taken, occur or be achieved) are
not statements of historical fact and should be viewed as
“forward-looking statements”. Such forward-looking statements involve
known and unknown risks, uncertainties and other factors which may
cause the actual results, performance or achievements of the Company to
be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements.
Such risks and other factors include, among others, the actual results
of exploration activities, variations in the underlying assumptions
associated with the estimation or realization of mineral resources, the
availability of capital to fund programs and the resulting dilution
caused by the raising of capital through the sale of shares, accidents,
labor disputes and other 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 or
claims limitations on insurance coverage. Although the Company has
attempted to identify important factors that could cause actual
actions, events or results to differ materially from those described in
forward-looking statements, there may be other factors that cause
actions, events or results not to be as anticipated, estimated or
intended. There can be no assurance that such statements will prove to
be accurate as actual results and future events could differ materially
from those anticipated in such statements. Accordingly, readers should
not place undue reliance on forward-looking statements contained in
this news release and in any document referred to in this news release.

Certain matters discussed in this news release and oral statements made
from time to time by representatives of the Company may constitute
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995 and the Federal securities laws. Although
the Company believes that the expectations reflected in such
forward-looking statements are based upon reasonable assumptions, it
can give no assurance that its expectations will be
achieved. Forward-looking information is subject to certain risks,
trends and uncertainties that could cause actual results to differ
materially from those projected. Many of these factors are beyond the
Company’s ability to control or predict. Important factors that may
cause actual results to differ materially and that could impact the
Company and the statements contained in this news release can be found
in the Company’s filings with the Securities and Exchange Commission.
For forward-looking statements in this news release, the Company claims
the protection of the safe harbor for forward-looking statements
contained in the Private Securities Litigation Reform Act of 1995. The
Company assumes no obligation to update or supplement any
forward-looking statements whether as a result of new information,
future events or otherwise. This press release shall not constitute an
offer to sell or the solicitation of an offer to buy securities.

Important Additional Information Will Be Filed With the SEC

In connection with the previously announced proposed merger (the
“Merger”) between the Company and Concentric Energy Corp.
(“Concentric”), the Company intends to file relevant materials with the
United States Securities and Exchange Commission (the “SEC”), including
a registration statement on Form S-4 (the “Registration Statement”),
which will include a preliminary prospectus and related materials to
register the securities of the Company to be issued in exchange for
securities of Concentric. The Registration Statement will incorporate a
proxy statement (the “Proxy Statement”) that Concentric plans to file
with the SEC and mail to its stockholders in connection with obtaining
stockholder approval of the Merger. The Registration Statement and the
Proxy Statement will contain important information about the Company,
Concentric, the Merger and related matters. Investors and security
holders are urged to read the Registration Statement and the Proxy
Statement carefully when they are available. Investors and security
holders will be able to obtain free copies of the Registration
Statement and the Proxy Statement when they become available, and other
documents filed with the SEC by the Company and Concentric, through the
web site maintained by the SEC at www.sec.gov. Documents filed by the Company with the SEC may be obtained free of
charge by contacting the Company at: Uranium Energy Corp.; attention:
Mr. Mark Katsumata, CFO; 500 North Shoreline, Suite 800N, Corpus
Christi, Texas, 78401; Tel: (866) 748-1030

Concentric, and its directors and executive officers, may be deemed to
be participants in the solicitation of proxies from Concentric’s
stockholders in connection with the Merger. Information regarding any
special interests of these directors and executive officers in the
Merger will be included in the Proxy Statement.

SOURCE Uranium Energy Corp