REG-Uruguay Mineral Exploration Re Agreement

MONTEVIDEO, Uruguay--(Business Wire)--

SYMBOLS: UME (TSXV), UGY (AIM)

Diamond Farm-out

Uruguay Mineral Exploration Inc ("UME or the "Company"), a gold production and
exploration company, announced today that it has signed an Option Agreement with
Olivut Resources Ltd. ("Olivut" or the "Company"-- TSX-V: OLV)) whereby Olivut
may earn up to 80% interest in diamond prospecting and exploration licenses (the
"Properties") located in northern Uruguay, South America. These Properties are
held by Cinco Rios S.A., a wholly owned subsidiary of UME. Olivut must incur a
minimum expenditure of $CDN250,000 by June 1, 2010 and a total of $CDN750,000 by
December 31, 2011 in order to acquire a 51% interest in the Properties. Olivut
will act as operator for the exploration program.

UME is focused on gold exploration and welcomes the opportunity to have a
partner with extensive diamond expertise work on these targets. Furthermore, the
partnership will benefit from having an Olivut director who is a resident in
Uruguay

Olivut is a diamond exploration company with a 100% mineral interest in over
2,000,000 acres in the HOAM Project in Canada`s Northwest Territories. Please
visit www.olivut.com for detailed corporate and project information.

Forward Looking Statements

All statements, other than statements of historical fact, contained or
incorporated by reference in this news release, including any information as to
the future financial or operating performance of the Company, constitute
"forward-looking statements" within the meaning of certain securities laws,
including the "safe harbour" provisions of the Securities Act (Ontario) and the
United States Private Securities Litigation Reform Act of 1995 and are based on
expectations estimates and projections as of the date of this news release.
There can be no assurance that such statements will prove to be accurate, such
statements are subject to significant risks and uncertainties, and actual
results and future events could differ materially from those anticipated in such
statements. Forward-looking statements include, without limitation success of
exploration activities; permitting time lines; the failure of plant; equipment
or processes to operate as anticipated; accidents; labour disputes; requirements
for additional capital title disputes or claims and limitations on insurance
coverage. The Company disclaims any intention or obligation to update or revise
any forward looking statements whether as a result of new information, future
events and such forward-looking statements, except to the extent required by
applicable law.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term
is defined in the policies of the TSX Venture Exchange) accepts responsibility
for the adequacy or accuracy of this release.

Editors` note: Uruguay Mineral Exploration Inc. is a gold producer and
exploration company focused on identifying and developing mineral opportunities
in Latin America. UME is a fully integrated mining company, possessing the
skills necessary to explore and develop its discoveries. The Company operates
the only producing gold mine in Uruguay (San Gregorio), and is also the leading
mineral exploration company in Uruguay having assembled an exploration portfolio
based on gold, base metals (copper, nickel, lead, zinc) and diamond prospects.

Uruguay Mineral Exploration Inc. is quoted in Canada (TSXV) and London (AIM) and
Matrix Corporate Capital LLP is its Nominated Adviser and Broker.

For further information, please contact:

Uruguay Mineral Exploration Inc

Tony Shearer, Chairman: +44 (0)20 7602 1570; tonyshearer@btinternet.com
David Fowler, CEO: + 598 2 6016354; urumin@ume.com.uy

Matrix Corporate Capital LLP
Louis Castro +44 20 3206 7209
Tim Graham +44 20 3206 7206

Investor Relations in North America

Susan Borinelli, Breakstone Group: +1 646-330-5907; sborinelli@breakstone-group.com

Uruguay Mineral Exploration

Copyright Business Wire 2009