VANCOUVER, British Columbia, May 26, 2006 (PRIMEZONE) -- Falcon Energy, Inc. (Pink Sheets:FCYI) is pleased to announce that it will be initiating a detailed study for two of the properties for which it holds exploration licenses in Mongolia. The studies will be in preparation for a work program on the properties. Falcon Energy Inc. will seek to engage a geological team to study its properties and make recommendations for the commencement of a work program. Both properties hold great promise for the discovery of significant deposits of Uranium.
The first property is the Huld License Area (license 9997X)
The Huld license area is located on the territory of Dashbalbar soum of Dornot province. This property is situated 650 km NE of Ulaanbaatar and 170 km North of Choibalsan /province center/ and 50 km NE of the significant Mardai Uranium deposit. Production of Uranium ore from the Mardai deposit has ranged up to 195 tons annually.
The second property is the Har Tolgoi License Area (license 9996X)
The license area is located at the joint part of Tuvshinshiree, Monhhaan and Uubayan soums of Suhbaatar province. The Har Tolgoi license area comprises a total of 12,319 hectares.
With the current bull market for Uranium, a number of companies are currently very active in Uranium exploration. The Western Prospector's team is focused on the a uranium project located in North-Eastern Mongolia with the 2006 exploration program, budgeted at US$16 million. UGL Enterprises also has holdings and great interest in the area.
Current major Uranium discoveries in Mongolia include the Dornod Deposit which has 40,128,000 pounds grading 0.118%, 31,664,000 pounds grading 0.177% and 26,349,000 pounds grading 0.236% and the Gurvanbulag project (Western Prospector) which has a reported resource of 22,679,160 pounds grading 0.245% and an additional 19,183,616 pounds grading 0.135% (source: National Bank report February 25, 2005).
Despite uranium spot prices in 2000 that touched lows of less than US$7.00 per pound for U3O8, the spot price has since increased to over US$37.00 per pound (January 30, 2006), and the long term Uranium market outlook remains positive with increased consumption, and future downtrend of secondary uranium sources.
Uranium Deposits in Mongolia
Soviet and Mongolian geologists began exploring for uranium in Mongolia in the 1940s. From 1967 to 1988 more systematic exploration for uranium was undertaken, and four major uranium deposits were defined in Mongolia, the Priargun, Gobi-Tamtsag, Khentii-Daur, and Northern Mongolian uranium provinces. Uranium deposits of economic value were discovered in the Dornod, Gurvanbulag, and Mardai areas of eastern Mongolia and the Kharaat area of southern Mongolia. The proven Uranium resources of Mongolia in these deposits are about 62,000 metric tons,
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