Macusani Yellowcake Inc. (the "Company") (TSX VENTURE:YEL)(FRANKFURT:QG1) is
pleased to announce initial assay results from the drilling program at the
Quebrada Blanca anomaly on the Kihitian Property in Puno, Peru. The best result
was an 11.0 m intersection from 41 to 52 m that returned a weighted average of
1253 ppm U3O8 (or 2.506 lbs/ton). This intersection included a higher-grade zone
of 3.0 m that averaged 4463 ppm U3O8 (or 8.926 lbs/ton). 


President and CEO, Peter Hooper, stated: "We continue to develop further
discoveries on the high-grade Kihitian Property. The Company has drilled two of
the nine known anomalous areas at Kihitian and is aware of uranium
mineralization at a third evidenced by significant assay results from the
existing adits at the Pinochio anomaly. We now have discoveries covering a
five-kilometre strike length and continue to explore with three drills at
Kihitian." 


Assay results are shown in following table:



----------------------------------------------------------------------------
                                  From     To Intersection  Grade      Grade
                                   (m)    (m)          (m)  (ppm)  (lbs/ton)
----------------------------------------------------------------------------
PT-QB33-TSW (151.50m depth)      30.00  35.00         5.00    106      0.212
                                 41.00  52.00        11.00  1,253      2.506
              including          46.00  49.00         3.00  4,463      8.926
                                 67.00  71.00         4.00    215      0.430
----------------------------------------------------------------------------
                                                                            
PT-QB33-TSE (153.00m depth)      40.00  53.00        13.00  1,532      3.064
              including          44.00  49.00         5.00  3,870      7.740
----------------------------------------------------------------------------
                                                                            
(i)Note - intersections do not represent true widths.                       



These results are from a borehole drilled at the Quebrada Blanca anomaly,
located approximately 2 km NW of the Chilcuno Chico anomaly on the Kihitian
Property. All previously reported results from Kihitian were from an area called
Chilcuno Chico where a resource estimate is being calculated at present based on
almost 70 drilling intersections. The boreholes located at Chilcuno Chico have
intersected two mineralized horizons or "mantos": Manto "A" and, roughly 100m
below, Manto "B". In-between there are zones of intensely disseminated rhyolites
of lower grade that could ease the stripping ratio of any future open-pit mining
operation. While Manto "A" is prospective for open-pit mining, Manto "B", which
is thicker and of higher uranium grade, is proposed to be exploited both
underground and in open-pit mining depending on the depth of the mineralization.



These new intersections encountered at Quebrada Blanca represent a completely
new area with higher grade uranium mineralization occurring at shallow depths.
The anomalous area appears extensive, and although cut by a canyon to the East
it is again very well developed on the other side of the valley. The proximity
of the Quebrada Blanca mineralization close to a deeper valley highly enhances
the possibility of open-pit mining and a reduction in striping ratio. This style
of mineralization is new when compared with the Chilcuno Chico style. If at
Chilcuno Chico the main control of the mineralization is known to be horizontal,
at Quebrada Blanca it appears that a better defined vertical control represents
the main structural feature.


The host rock of the mineralization at Quebrada Blanca is the same Macusani
rhyolite impregnated with fissure-controlled and disseminated uranium bearing
meta-autunite and autunite that have demonstrated high metallurgical recoveries,
between 85 to 97% elsewhere on the Macusani Plateau.


The Company intends to continue to drill with one rig at Quebrada Blanca and
with two drills at Chilcuno Chico with the goal of extending the existing
resources towards the west and north-west within the much larger Kihitian
concession.


Previous assay data, maps and a sample cross section are available on the
Company's website at www.macyel.com/kihitian/. 


Quality Control and Analytical Procedures

Core samples have been crushed and representative samples analysed for Uranium
(U) abundance and a suite of 40 elements. The necessary analytical quality
control and assurance has been completed by insertion of reference material,
duplicate samples and blank material. After crushing, the core is placed in
sealed bags and shipped to the CIMM's preparation laboratories in Juliaca.
Following the preparation stage, the sample pulps are sent to CIMM analytical
laboratory in Lima where U and a suite of forty other elements are analysed
using ICP-MS methodology. 


CIMM Peru is an ISO certified assay laboratory. The program is designed to
include a comprehensive assay quality control routine comprising the systematic
use of standards, blanks and field duplicate samples. Secondary laboratories are
used for check assaying.


Qualified Person

Mr. Ian Foreman, P.Geo., of Foremost Geological Consulting, an independent
consultant to the Company, is a Qualified Person as defined under National
Instrument 43-101, and has reviewed and approved the scientific and technical
data contained in this release.


About Macusani Yellowcake

Macusani Yellowcake Inc. is a Canadian uranium exploration and development
company focussed on the exploration of its properties on the Macusani Plateau in
south-eastern Peru. The Company owns a 99.5% interest in concessions which cover
over 90,000 hectares (900 km2) and are situated near significant infrastructure.
Macusani Yellowcake is listed on the TSX Venture Exchange under the symbol 'YEL'
and the Frankfurt Exchange under the symbol 'QG1'. The Company has 167,047,475
shares outstanding. For more information please visit www.macyel.com.


This news release includes certain forward-looking statements concerning the
future performance of Macusani's business, operations and financial performance
and condition, as well as management's objectives, strategies, beliefs and
intentions. Forward-looking statements are frequently identified by such words
as "may", "will", "plan", "expect", "anticipate", "estimate", "intend" and
similar words referring to future events and results. Forward-looking statements
are based on the current opinions and expectations of management. All
forward-looking information is inherently uncertain and subject to a variety of
assumptions, risks and uncertainties, including the speculative nature of
mineral exploration and development, fluctuating commodity prices, competitive
risks and the availability of financing, as described in more detail in the
Company's recent securities filings available at www.sedar.com. Actual events or
results may differ materially from those projected in the forward-looking
statements and Macusani cautions against placing undue reliance thereon. Neither
Macusani nor its management assume any obligation to revise or update these
forward-looking statements.