Universal Uranium Ltd. Acquires Strategic Potash Property and Announces $3.15 Million Financing

VANCOUVER, BRITISH COLUMBIA, May 20 (MARKET WIRE) --
Universal Uranium Ltd. (the "Company") (TSX VENTURE: UUL) is pleased to
announce that it has entered into an agreement, subject to regulatory
approval, to acquire a 100% interest in 816 claims totaling 204 sq km
(the "Property") located in the St.George's Bay Basin in western
Newfoundland, from Alpha Uranium Resources Inc.

The St.George's Basin is geologically analogous to the Moncton subbasin
in New Brunswick, which is Canada's second major potash mining district.
The Property is bordering properties currently held by Altius Resources
Inc., Sprott Resource Corp. and Vulcan Minerals (view map at
www.universaluranium.com).

Previous drilling in several areas of the St. George's Basin have
revealed large thicknesses of evaporitic rocks hosting significant beds
of potash and carnallite. Universal plans to compile and re-interpret the
historical data on the property in preparation for undertaking additional
geophysical surveys on the newly acquired ground. Subsequent drilling
will begin on the most favorable targets during the upcoming field season.

Under the terms of the Agreement, the Company will acquire a 100%
interest in the Property by paying on closing; (i) CDN$40,000 in cash
and, (ii) 500,000 previously unissued common shares of the company. The
deemed price of these shares will be the closing price of the company's
shares on the day of this news release. A finder's fee will apply in this
transaction.

Ron Atlas, President and CEO of Universal Uranium, states: "Universal
has, up till now, acquired and developed only uranium properties, and
will continue to develop those assets. However, we feel that the reasons
for acquiring such a strategic potash property, were simply too
compelling."

In conjunction with this acquisition, the Company has arranged a
non-brokered private placement consisting of 7,000,000 units at $0.45,
for total proceeds of $3.15 million. Each unit consists of one common
share and one whole transferable share purchase warrant. Each warrant is
convertible into one common share at a price of $0.65 for a period of
twenty-four (24) months. The proceeds from this financing will be used
for working capital, development of the newly acquired property and
development of our existing uranium projects. A finder's fee will apply
in this private placement in accordance with the policies of the TSX
Venture Exchange. The financing is subject to regulatory acceptance.

Universal Uranium Ltd. (TSX VENTURE: UUL) is a publicly held Canadian
exploration company focused on acquiring, exploring and developing
mineral properties located in favorable geo-political climates. The
company is led by a highly skilled, experienced board and management team
with significant successes in managing early stage mineral exploration
companies.

ON BEHALF OF THE BOARD:

Ronald Atlas, President & Chairman of the Board

The Company seeks Safe Harbour.

Standard & Poor's Listed

Issued Share Capital: 44,115,069

TSX Venture Exchange does not accept
responsibility for the adequacy or accuracy of this release.

Contacts:
Universal Uranium Ltd.
Taylor Little
Investor Relations
(604) 662-3903
Email: tlittle@universaluranium.com
Website: www.universaluranium.com

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