International Uranium 1999 First Quarter Results.

VANCOUVER, BRITISH COLUMBIA--(BUSINESS WIRE)--March 1, 1999-- Int'l Uranium(TSE:IUC.) International Uranium Corporation (the "Company") is pleased to announce net income of $739,411 for the first fiscal quarter of 1999, or approximately $0.01 per share (Cdn$0.02 per share). The Company continues to enjoy a strong financial position, with net working capital of $20,428,589, or $0.31 per share (Cdn$0.47 per share).

Gross revenue from the sale of uranium in the quarter totaled $7,520,450 with a corresponding cost of material delivered of $6,415,348 resulting in gross profits from uranium sales of $1,105,102. This compares to total uranium sales in the first quarter of last year of $14,542,800 at a cost of $13,659,523 resulting in gross profit of $883,277. While the quantity of uranium sold during the first quarter of 1999 was 52 percent less than the amount sold during the same period last year, the Company acquired and produced the material for these deliveries at less cost than last year and thus gross profits from uranium sales increased.

During the first quarter, the Company received and successfully processed approximately 26,000 tons of uranium-bearing soil materials excavated from a former government defense site near Buffalo, New York. Another 16,000 tons will be processed by the end of February, 1999. This marked the first time the Company had recycled this type of material through its White Mesa Mill (the "Mill"). These former defense sites are being remediated by the U.S. Army Corps of Engineers (the "Corps") under the Formerly Utilized Sites Remedial Action Program ("FUSRAP"). The Corps, which has been charged with the task of reducing the cost of the clean up of these FUSRAP sites, awarded a contract to the Company to recycle these materials from the Buffalo site and recover uranium before disposing of the resulting byproduct in the Mill's tailings cells. By doing so, the Corps estimates that it will save 75 percent of the cost that would have been incurred if the materials were directly disposed of in a disposal-only facility. There are potentially millions of tons of uranium-bearing soils and materials located at these FUSRAP sites.

The Company, which receives a recycling fee in addition to the uranium recovered from processing these materials, believes that the processing of these materials through the Mill will be a major contributor to the Company's earnings in the future.

In addition to the pursuit of FUSRAP alternate feeds, the Company continues to develop other commercial sources of uranium-bearing materials to process through the Mill and is developing a potential backlog of future business. To this end, the Company began receiving deliveries of alternate feeds from another uranium processor in January under a long term processing arrangement. Assuming deliveries meet expectations, the Company anticipates processing these materials immediately after completion of the Buffalo FUSRAP materials, which should result in the recovery of uranium at costs below current market levels.

The Company also continued to produce uranium/vanadium ore from its Sunday Mine Complex during the quarter. At the present time, the Company anticipates continuing its mining operations through the conventional ore run, which is scheduled to begin in May and run through the end of the fiscal year.

The Company also continued with its ore purchase program during the quarter, although the results of this program have been quite disappointing. Many of the mines that had originally intended to initiate operations ultimately did not do so, primarily because of increased costs due to regulatory requirements and weak commodity prices. Weak market prices also resulted in the Company's decision to discontinue development of its Topaz Mine during the period, as well as discontinue mining operations at the Rim Mine. The Company will continue to evaluate market conditions and could restart these operations if warranted, or curtail operations at the Sunday Complex if market conditions do not improve or mining costs increase. As of the end of the quarter, the Company had mined and stockpiled 58,000 tons of ore, containing 260,000 pounds of U3O8 and 1.5 million pounds of V2O5.

As noted above, the Mill will be completing the processing of the FUSRAP materials and initiating the processing of the next alternate feed run during the second fiscal quarter. The FUSRAP run will generate processing fees in addition to the production of uranium. However, the next alternate feed run will only result in the production of uranium, albeit at costs below market prices. Since the Company does not anticipate any deliveries of uranium during the second quarter, and with limited processing fees expected, the Company is not anticipating a profitable second quarter.

Headquartered in Denver, Colorado, IUC is engaged in the business of producing uranium concentrates from mined ores and waste byproducts, and the selling and trading of these concentrates in the international nuclear fuel market. In addition, IUC also produces and sells vanadium as well as other metals that can be produced as a co-product with uranium.

ON BEHALF OF THE BOARD

Earl E. Hoellen, President

Cautionary Note Regarding Forward-Looking Statements 

International Uranium Corporation wishes to caution readers that disclosures made in the foregoing which are not historical facts are forward-looking statements that involve risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to, volatility and sensitivity to market prices for uranium and vanadium, competition, environmental regulations, the impact of changes in foreign currencies' exchange rates, political risk arising from operating in Mongolia, changes in government regulation and policies including trade laws and policies, demand for nuclear power, dependence on a limited number of customers, replacement of reserves and production, receipt of permits and approvals from governmental authorities (including amendments for each alternate feed transaction) and other operating and development risks. As a result of the foregoing and other factors, no assurance can be given as to the future results, levels of activity and achievement.