Uranium Energy Corp Provides an Update on Its Goliad Operations

AUSTIN, TX - May 16, 2007 - Uranium Energy Corp is pleased to provide its fourth update this year of progress at its 100%-owned Goliad Project in South Texas.

Texas Railroad Commission Concludes Drilling Activities Did Not Contaminate Goliad
Wells, Dismisses Complaint

The Railroad Commission of Texas (RRC), the regulatory authority that oversees mineral exploration in the state of Texas, recently concluded its investigation into complaints that the Company's drilling activities have contaminated certain water wells, finding that Uranium Energy Corp's Goliad Project drilling has not contaminated the wells or the related aquifer.

The investigation was conducted after the Company voluntarily issued an invitation to county representatives to participate in collecting baseline samples of regional water wells earlier this year as part of the Company's mine permit preparations.  The sampling indicated the presence of naturally-occurring radionuclides in groundwater within the area of review, and some Goliad citizens suggested that perhaps the Company's drilling was causing the "contamination."  However, according to the assessment by RRC's groundwater hydrologist, ".no groundwater contamination has occurred as a result of the drilling activities."   RRC issued its conclusions in a letter, stating that it considers the investigation of the alleged groundwater issues to be closed.

The RRC explained that it is not geophysically plausible for groundwater to be distributed by drilling activities, and that the groundwater radioactivity that had been identified is from natural sources in contact with the sampled wells themselves. 

Subsequent testing of other water wells by the Goliad County Groundwater Conservation District has confirmed the presence of naturally-occurring radionuclides in other areas of the County, which is expected since Goliad County is host to several known uranium deposits, some of which have been explored in the past by other companies.

Company Targets Compliance with RRC Surface Drill Hole Restoration Requirements
Before June 15th

In investigating the water quality issues (see above), RRC also examined the Company's exploration procedures as to compliance with the Company's exploration permits and applicable regulations.

The results of the inspection showed that although there was no imminent danger or harm, there were procedural matters with respect to which RRC found the Company to be non-compliant.  Consequently, RRC issued a notice of violation regarding these matters.  Required remedial action was limited to following the approved plugging procedures, marking the exact location of each borehole, and following RRC instructions regarding surface restoration.

The Company has been working diligently on these measures, and is working closely with RRC officials.  The Company estimates that it will be in full compliance with the RRC prior to the deadline of June 15, 2007.

Mine Permit Process Advancing

The Company reports the following progress on its permitting operations at the Goliad Project:

• Quality assurance and quality control measures have been completed on water well
  samples;
• Holt Engineering has been engaged by the Company to perform geotechnical studies;
• A qualified soil scientist has completed a draft map of the entire project site, as part of the
  soils and sediments study;
• Progress has been made on the economic impact study and the ecological study; and
• Progress has been made on the mine plan and process facility designs, with the first full
  drafts anticipated to be completed by month-end.

About Uranium Energy Corp

Uranium Energy Corp (URME: OTCBB) is a US-based junior resource company with the objective of becoming a near-term ISR uranium producer in the United States.  The Company is developing its advanced-stage Goliad Project in South Texas, with ISR uranium production projected to begin in 2009.  Uranium Energy Corp controls one of the largest historical uranium exploration and development databases in the US.  Through the use of these databases, the Company has acquired advanced uranium properties throughout the southwestern US.  The operational management is comprised of pre-eminent uranium mining and exploration professionals, whose collective experience in the uranium mining industry gives the Company ongoing uranium mine-finding and uranium mine development expertise.  Uranium Energy Corp is well positioned to capitalize on the current alternative energy boom.  For more information, please visit www.uraniumenergy.com.

Safe Harbor Statement

This news release contains forward-looking statements within the meaning of Section 27A of the United States Securities Act of 1933 , as amended, and Section 21E of the United States Securities and Exchange Act of 1934 , as amended.  Statements in this news release, which are not purely historical, are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future.  These statements involve risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements contained herein.  Such risks and uncertainties may include, but are not limited to, the impact of competitive products, the ability to meet customer demand, the ability to manage growth, acquisitions of technology, equipment or human resources, the effect of economic and business conditions, the ability to attract and retain skilled personnel and factors outside the control of the Company.  These forward-looking statements are made as of the date of this news release, and the Company assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements.  Although the Company believes that the beliefs, plans, expectations and intentions contained in this news release are reasonable, there can be no assurance those beliefs, plans, expectations or intentions will prove to be accurate.  Investors should consider all of the information set forth herein and should also refer to the risk factors disclosed in the Company's periodic reports filed from time-to-time with the United States Securities and Exchange Commission.  This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.