Quarterly Activities Report - March 2008

• UXA DRILL RESULTS RETURN 42 METRES 0.34% COPPER INCLUDING 9 METRES AT 0.8% ON 100% OWNED WINJABBIE PROSPECT NEAR OLYMPIC DAM IN SA

• URANIUM EXPLORATION FARM-IN AGREEMENT WITH INDIA'S RELIANCE INDUSTRIES LIMITED SUBSIDIARY RECEIVES FEDERAL AND STATE APPROVAL

• UXA RECEIVES $3.45 MILLION FROM RILA IN EXCHANGE FOR 49% INTEREST IN FOUR SOUTH AUSTRALIAN EXPLORATION LICENCES

SUMMARY

Winjabbie Copper Mineralisation
UXA has received drill core analyses from its first drill hole (07WJ01) on its 100% owned Winjabbie exploration licence (EL) 3432 in South Australia (Figure 3). Assays from core with visible chalcopyrite and chalcocite confirmed copper mineralisation at a shallower depth than previous explorers' drill holes.

UXA's drill hole 07WJ01 completed in January 2008, returned assay results across a 42 metre interval with average copper grade of 0.34% including 9 metres at 0.8% Cu with highest value of 3.5% Cu across 1 metre (Table 1). The top of the mineralised section was intercepted at 824 metres depth with the highest copper intersection in the top nine metres of this mineralised section.

Joint Venture Approvals
The Farm-in and Joint Venture Agreement between Uranium Exploration Australia Limited (ASX: UXA) and a subsidiary of India's Reliance Industries Limited, RIL Australia (RILA), received Federal and State approval in January 2008. This approval triggered the payment of $3.45 million in cash to UXA by RILA, and the transfer of 49% interest in four of UXA's South Australian exploration licences to RILA.

RILA will also reimburse UXA for 49% of exploration expenditures on the four SA tenements incurred by UXA between 1 July 2007 and 31 January 2008, and will pay 49% of exploration expenditures going forward. RILA will also receive 49% interest in four Northern Territory tenements upon the grant of each of the current exploration licence applications to exploration licences.

Drill Program Summary
UXA continues to advance its aggressive exploration program. Through the end of this reporting period, UXA has completed a total of approximately 8,800 metres of a planned 20,000 metre drilling program across its tenements in South Australia, Western Australia, Northern Territory and New South Wales (Figure 1).

Figure 1
UXA Tenement Location Map

Exploration

During the reporting period, UXA:

South Australia

• advanced drilling and evaluation of its Winjabbie copper prospect
• completed drilling the Playford TPG8 gravity anomaly
• completed additional ground based gravity surveys on seven of its Stuart Shelf tenements

• continued evaluation of the Ngalia Thrust Crystal Creek uranium prospect

• completed a ground based electro-magnetic survey at Gulgong in the search for gold and rare earth elements (REE).

Figure 2
South Australian Tenement Location Map

Winjabbie (EL 3432)
The Winjabbie prospect is located approximately 69 km south of BHP Billiton's Olympic Dam copper-gold-uranium-silver mine, 57 km west of the Carrapateena copper-gold prospect and 45 km north-northwest of the Mount Gunson copper mine on the highly prospective Stuart Shelf in the Gawler Craton.

Drilling of the previously identified gravity targets on Winjabbie resumed with the return of drilling contractor John Nitschke Drilling (JND) to the field following JND's scheduled end of year break. Drilling started with drill hole 08WJ02 (Figure 3) on 9 January 2008 and discontinued at a depth of 1,093.5 metres due to capacity limits of the drill rig. This hole remained incomplete at the end of the reporting period and is awaiting a larger capacity rig.

Drill hole 07WJ01 which was started at the end of November 2007 and also discontinued due to limited rig capacity at a depth of 866m, was completed on 20 February 2008 to a total depth of 1,205.5 metres (Table 1).

Table 1
Drilling Progress - Winjabbie

FIGURE 3
Drill Hole Locations and Gravity Targets
EL 3428 - Winjabbie

Assays from 07WJ01 core with visible chalcopyrite and chalcocite confirmed copper mineralisation at a shallower depth than previous explorers' drill holes. Assays indicated a 42 metre interval with average copper grade of 0.34% including 9 metres at 0.8% Cu with highest value of 3.5% Cu across 1 metre (Table 2). The top of the mineralised section was intercepted at 824 metres depth with the highest copper intersection in the top nine metres of this mineralised section.

Two previous exploration holes drilled in the target area of Winjabbie also intersected low grade copper mineralisation. WJD1 was drilled by Western Mining Corporation (WMC) in 1980. This hole intersected a 56 metres interval of 0.34% Cu starting at 864 metres (down-hole length, true width not known). SAE11 was drilled by Carpentaria Exploration Company in 1990, 2.5 km SSW of WJD1. This hole intersected 94 metres of 0.21% Cu from 1005 metres depth and 42 metres of 0.28% Cu from 1123 metres which included 5 metres of 1.1% Cu from 1160 metres. Both holes also contained traces of gold and silver as well as low concentrations of uranium to a maximum value of 110 ppm U₃O₈ across a one metre interval in SAE11 at 1041 metres.

The uranium concentration in the mineralised section was 10 ppm with the highest value at 60 ppm as U₃O₈ across one metre at 824 metres depth. Gold averaged 0.02 g/tonne and silver averaged 0.2 g/tonne with the highest value at 4 g/tonne across one metre at 826 metre depth.

The copper mineralisation within drill holes 07WJ01, WJD1 and SAE11 appears to be relatively consistent in copper grade and mineralised horizon thickness and span a total area of approximately two square kilometres.

Table 2
Drill Hole 07WJ01 Assay Results

Playford (EL 3430) and Playford South East (EL 3679)

In November 2007 UXA announced the identification of a 2 mgal gravity anomaly located on the common boundary between its Playford and Playford South East EL's in South Australia (Figure 4). The anomaly was considered to be a prospective drill target for potential iron oxide-copper-gold-uranium mineralisation and was given the designation TPG8.

TPG8 was deemed to be located adjacent to an inferred major fault structure and located on a line between the Olympic Dam Mine and the Prominent Hill Mine development. Depth to the target was estimated to be 900m based on geophysical modelling.

Drilling of TPG8 was originally planned to begin in December 2007, but was delayed due to drill rig scarcity. Drilling started on 21 February 2008 with the arrival of an appropriately sized drilling rig from Tom Browne Drilling (TBD).

Figure 4
Location of High-Intensity Gravity Target TPG8

Three attempts were required to drill the first hole (08PD04) on the TPG8 gravity anomaly, to the required drill hole orientation specification of 71o inclination toward 032o azimuth. The first attempt (08PD04a) was drilled using reverse circulation for the pre collar to 60.5m followed by HQ diamond coring to 185.4m. However, the drill angle steepened significantly from 71o to 78.7o. The second attempt (08PD04b) was drilled using RC to 40m depth followed by HQ diamond coring. Once again the drill angle steepened significantly from 71o to 77.5o. The third attempt (08PD04c) was successful using PQ core drilling from surface. The drill angle and azimuth deviation remained within tolerance limits to the end of hole (Table 3).

Table 3
Playford Drilling Activities Summary

Drilling of 08PD04(c) was finalised 30 March 2008 for a total depth of 1157m. The hole was terminated in basement in what has been interpreted as Tarcoola Formation meta-siltstone. Basement was intersected at 750 metres, approximately 150 metres shallower than originally modelled.

A reconciliation of the TPG8 geophysical model using data collected from 08PD04 shows that the modelled parameters produce a signature which closely correlates with the original surveyed geophysical signature. However, no IOCGU mineralisation was identified based on the physical examination of core. Assay data was pending as of the writing of this report.

Drill Hole 07PD01 Assays
A finalised set of geochemical assays for 07PD01 has been received from Genalysis Laboratories. Elevated uranium values are associated with the contact between the Tregolana Shale Member and Pandurra Formation Sandstone at 420m depth, with the highest uranium values of up to 25ppm occurring within reduced shale units.

An elevated zone of uranium ranging from 4 to 9ppm is associated with powdered and bleached fractures at 675m and 696m depth within Pandurra Formation sandstone.

The contact between Pandurra Formation sandstone and underlying basement meta-siltstone at 892m depth displays slightly elevated uranium values of between 1.5ppm and 3ppm compared to either side of the contact.

The basal meta-siltstone comprises consistently higher values of iron (up to 7.2%), zinc (up to 119ppm) and manganese (up to 5762ppm) compared to the cover sequence.

Glenside (EL 3470)
During the reporting period, a total of 520 gravity stations were surveyed to complete the Glenside gravity coverage at 800m grid spacing including some 400m and point targeted infill stations. No large gravity anomalies were detected from the new data. The two largest gravity features (08GL14 & 08GL17) displayed gravity signatures of 0.6-0.7 mgal. A number of gravity anomalies appear to be coincident with weak magnetic anomalies and related to structural trends interpreted from magnetic, gravity and digital elevation datasets (Figure 5).

08GL14 has been preliminarily interpreted as potentially fault hosted body within the Donington Suite granite. 08GL17 has been preliminarily interpreted to occur in a geological structure extending north from near the Oak Dam iron oxide-copper-gold prospect.
In anticipation of drilling on one or more of these potential targets, a clearance survey was conducted with members from the Barngarla and Kokatha Native Title Claimants in mid March 2008. Five of the seven proposed clearance sites were approved for drilling.

Figure 5
EL 3470 - Glenside
Detailed Gravity Image with Potential IOCGU Targets

Oak Dam North East (EL 3494)
This EL was the subject of a joint venture (JV) between UXA and Newcrest Operations Limited (Newcrest) as of May 2007, in which Newcrest would focus its exploration efforts on iron oxide-copper-gold (IOCG) mineralisation and UXA maintained its rights to uranium-only mineralisation.

Starting in July 2007, Newcrest embarked on an exploration strategy of collecting detailed gravity surveys to determine potential targets for IOCG mineralisation. The surveys were conducted in two stages. The first stage involved wide-spaced (1 kilometre) gravity surveys across the entire EL. The second stage involved detailed gravity surveys (500-800 metres spacing) across specific areas of interest identified in the first stage survey.

Newcrest completed its modelling and interpretation of the second stage gravity data in March 2008. However, due in part to the absence of suitable gravity anomalies, Newcrest elected to relinquish its interest in the tenement to focus on its advanced projects including a recently announced PNG joint venture with Harmony Gold.

The effective date of withdrawal from the Oak Dam NE Joint Venture Agreement with UXA will be 22 April 2008, at which time UXA will resume its full rights to all metals within the tenement. UXA has been provided all of the gravity survey data collected by Newcrest and will begin its own modelling and interpretation in the next quarter.

Roxby Downs West (EL 3428)
A total of 529 gravity stations were acquired during the reporting period across the Roxby Downs West tenement at 800m grid spacing. No significant gravity anomalies were identified (Figure 6).

Subtle gravity anomalies for the most part match the magnetic anomaly pattern due to the Gairdner Dyke Swarm. To the east, a gravity high traces a belt of Hutchison Group gneissic and schist units (identified from a single drill hole (HHD1) drilled on the anomaly). A possible granite body is located in the eastern limb of the tenement flanked by local gravity highs. Some small (<0.5 mgal) anomalies do exist on the tenement linked to faults and these may warrant further investigation.

Figure 6
EL 3428 - Roxby Downs West
Detailed Gravity Image

Sloane Hill East (EL 3751)
A total of 211 gravity stations were acquired by the end of March to complete the Sloane Hill East tenement coverage with station spacing of 800m (Figure 7). The gravity survey only revealed anomalies corresponding to the Gairdner Dyke Swarm. No other gravity features of interest were noted.

Figure 7
EL 3751 - Sloane Hill East
Detailed Gravity Image

Mount Morgan East (EL 3863),
A total of 347 gravity stations were acquired by the end of March 2008 to complete the gravity survey coverage of the southern limb of the Mount Morgan East tenement. The station spacing was mainly 400m grid with some 800m extension and 200m infill.

Gridding of the Mount Morgan East gravity has revealed a string of moderate (0.5 -1 mGal) anomalies extending northwest from a larger gravity body to the west. These anomalies are bound and cut major north-northwest, northwest, and northeast shear zones. The northern most anomaly (08MM1-1) is also coincident with a bright magnetic anomaly (Figure 8).

Preliminary modelling indicates the geophysical body at 08MM1-1 to be oblate to elongated in shape, with a footprint of approximately 1km2 and at a depth of 870m with a mean density of 3.2.

A heritage clearance survey was completed for 3 drill sites located along an interpreted northwest trending structure. All proposed drill sites were approved by Barngarla Native Title Claimants. 08MM1-1 is located closest to a magnetic anomaly and consequently considered the most prospective for potential IOCGU mineralisation.

Figure 8
Mount Morgan East
Detailed Gravity Image

Twin Hill (EL 3864)
Regional drill hole data was reviewed for the Twin Hill area. One drill hole (SR17/2) in this region was terminated at 1500m depth without intersecting basement lithologies. The thickness of the cover sequence in this region indicates a general deepening of the basin in this locality.

Porter Hill (EL 3865)
Porter Hill has little deep drill hole information in the area. The nearest drill hole is 15km from the tenement with a depth of 1450m. Basement was not intersected and the thickening of the cover stratigraphy indicates that the basement is very deep in this area.

The hole did however contain 0.24% Cu at a depth of 240m within the Yarloo Shale.

The Porter Hill area may be a suitable site for paleochannel hosted uranium given the tenement is located along a NE structure that hosts the Roxby Downs Suite granite. Algebuckina sandstone is a potential target along with redox boundaries associated with the Yarloo Shale and Andamooka Limestone.

Chinaman Hat Hill (EL 3866)
Chinaman Hat Hill area has three drill holes located 2 to 7km south of the tenement that show mineralisation along a NW striking fault. In one hole (BD1), Gawler Range Volcanics was intersected at 607m with one assay having 0.55% Cu. BD2 contained a sample with 0.45% Cu within the brecciated basement Hutchison Group metasediments (basement at 657m). FHD1 contained 300ppm Cu within the Tapley Hill Formation at 736m. Although this fault does not cross the tenement, the southern and western part of the Chinaman Hat Hill area may be prospective for IOCGU style deposits given the depth to basement and proximity to these holes with anomalous Cu, and general proximity to Olympic Dam. Infill gravity surveys will be conducted in this area on gravity anomalies identified by the state 2007 gravity survey.

The drill hole data also indicates instances of Tapley Hill Formation overlying basement. The strongly reducing Tapley Hill Formation would make a good target if found directly on top of a basement fault or near Hiltaba Granite.

Prominent Hill South (EL 3429)
No exploration activities were conducted on this exploration licence during this reporting period.

Griffen Well (EL 3431)
No exploration activities were conducted on this exploration licence during this reporting period.


Northern Territory

Ngalia Thrust (EL 24566)
Exploration progress on the Crystal Creek prospect was hampered somewhat due to delays in negotiations with the Central Land Council (CLC) regarding an exploration agreement over EL 24566. The CLC requires an exploration agreement in order to progress heritage clearance surveys for proposed surface-disturbing exploration activities such as drilling and/or trenching.

Ten rock samples collected in January 2008 from the Crystal Creek prospect area were submitted to Pontifex and Associates for petrological evaluation. The objective of this evaluation was to determine evidence of hydrothermal activity, alteration types and origin of the silcrete cap occurring in the area. Pontifex concluded that the kaolin alteration resulted through weathering processes as apposed to hydrothermal alteration and the silcrete is of unknown origin.

A field mapping exercise has been scheduled for the next quarter to be followed by a reconnaissance drilling program once heritage clearance has been obtained.


Pandanus West (ELA 24565), Rum Jungle NE (ELA 24586), Katherine North (ELA 24577, Nabarlek North (ELA 24868), and Nabarlek West (ELA 24564)
UXA continues to work with the Northern Land Council (NLC) to expedite the granting of these five licence applications in the Northern Territory to EL status. This process hinges on successful meetings and negotiations with the Traditional Owners of the land. These meetings are scheduled and facilitated by the NLC and UXA is invited to attend and present its exploration plan. Typically the process requires at least two meetings with Traditional Owners on each licence application before approval is given to the grant of an EL.

An initial meeting was held on ELA 24565 in 2006. However, no clear decision was made by the Traditional Owners at the conclusion of the meeting. UXA continues to petition the NLC for a follow-on meeting.

Initial meetings were also held on ELA 24577, ELA 24868 and ELA 24564 in 2007. At the conclusion of each of these meetings, UXA received approval to continue negotiations with Traditional Owners for the grant of exploration licences. However, no follow-on meetings have been scheduled by the NLC on any of these tenements. UXA has been presented with a draft exploration agreement by the NLC regarding ELA 24577 - Katherine North. Negotiations regarding the terms and conditions of this proposed agreement will continue during the next quarter.

An initial meeting was also held on ELA 24586 in 2007. At the conclusion of this meeting the Traditional Owners placed the exploration tenement on a maximum five year moratorium. During this period, UXA has no rights to continue to negotiate with Traditional Owners for the grant of an exploration licence. However, the NLC can, at the request of the Traditional Owners, resume negotiations at any time during this period. UXA will continue to seek relief from the moratorium.

No meetings were conducted with Traditional Owners during the reporting period.


New South Wales

Gulgong / Ulan South (EL 6498)
A ground-based, 12-line electro-magnetic moving loop "SmartEM" system survey was finalised on 3 March 2008, for a total of 19.45 line kilometres of survey. The EM data set was received by UXA at the end of this reporting period and will be evaluated, modelled and interpreted during the next quarter for possible gold and/or REE exploration targets.


Western Australia

Yeelirrie South East (E36/546)
UXA has successfully completed a heritage clearance survey which will allow for a drilling program to be undertaken. The proposed drilling program is aimed to investigate the potential for calcrete and subsurface soil hosted uranium mineralisation similar in style to BHP Billiton's world-class Yeelirrie uranium deposit.

Angelo River North (E52/1835)
Airborne magnetic, radiometric and DTM surveys were completed over E52/1835 - Angelo River North. The data set has been received and appears to be of outstanding quality and detail compared to open file data. Several uranium anomalies have been highlighted. One anomalous area appears to be related to an interpreted NW-trending fault with anomalous uranium along much of its length (Figure 9). The other main anomalies lie about 2 km to the NNE.

Figure 9
EL 52/1835 - Angelo River North
Detailed Radiometrics: U Filter image

A geological field trip was attempted in October 2007 to ground truth the radiometric anomalies. However, due to rugged terrain and limited access tracks, the field crew was not able to reach the target areas of the EL. During the reporting period a follow-up geological field trip was scheduled for May 2008 and will involve helicopter support.


Corporate Activities

Half Year Accounts
UXA's Half Year Financial Report at 31 December 2007 was completed and lodged with the ASX on 11 March 2008, following completion of the interim audit review by KPMG Adelaide.

Options Expired
A total of 43,003,769 UXA listed options expired and lapsed on 31 March 2008, with 553,298 options being exercised and converted to ordinary shares prior to the cut-off date. Due to extremely soft broad-market conditions across the last three-six months, UXA's share price dipped below the $0.20 option exercise price during the month of March 2008, with a final price of $0.16 on 31 March.

Marketing and Investor Presentations
UXA continued its marketing and investor presentation efforts. A new marketing display was commissioned in March 2008 for use at trade shows and conventions. The new display was utilised at the PDAC Convention in Toronto as well as at the Paydirt 2008 Uranium Conference in Adelaide.


For further information contact:


Patrick Mutz
Managing Director
URANIUM EXPLORATION AUSTRALIA LIMITED

Tel: +61 8 8363 7970
Email: info@uxa.com.au
Website: www.uxa.com.au
Media: Farrington +612 9332 4448

JORC Compliance Statement
Technical Information in this report is based on information compiled by Dr Rodney Boucher who is employed by Linex Pty Ltd and who is a Member of The Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists. Dr Boucher has sufficient exploration experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' ("JORC 2004"). Dr Boucher consents to the inclusion in this release of the matters based on his information in the form and context in which it appears.

UXA listed on the ASX in November 2005 and was established to explore for, locate and develop commercial grade uranium mineralisation and associated copper and gold. UXA has 17 exploration licences (ELs) and 5 exploration licence applications (ELAs) located in South Australia, Western Australia, Northern Territory, and New South Wales. These exploration tenements cover approximately 9,800 km2 and are predominantly located in areas of known mineral deposits.