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Cue Resources Continues Drilling at San Antonio Uranium Deposit in Paraguay

Cue Resources Ltd. (TSX VENTURE:CUE) has commenced the continuation of drilling on the San Antonio uranium deposit located on the Company's 100% owned Yuty project in Paraguay.

Drilling will consist of 30 holes totaling approximately 3600 meters and will test the western extension of the main deposit. Cue is utilizing three drills to meet the targeted completion date of Dec. 31st, 2010.

This current round of drilling is a continuation of the exploration started by Cue in July of 2007. Since that time, Cue has drilled approximately 28,000 meters, in 223 holes, resulting in an NI 43-101 compliant resource including an Indicated Resource of 9.0M tonnes @ 0.042% eU3O8 containing 8.3M lbs eU3O8 and an Inferred Resource of 1.1M tonnes @ 0.050% eU3O8 containing 1.2M lbs eU3O8.

The company is targeting shallow, roll front related, uranium in sedimentary rocks. The basal sandstone unit (San Miguel Formation) is a favorable host for uranium mineralization.

"We are committed to continue the exploration of the San Antonio deposit in areas not previously drilled. This phase of drilling could determine the boundaries of the western extension of the main deposit and further define the parameters of the deposit. From this data, we will determine the next phase of drilling to follow," stated Robert Tyson, President and CEO of the Company.

Chris M. Healey, P.Geo, a director of Cue, is the Qualified Person responsible for the technical content of this release.

Source:

Cue Resources Ltd.

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