(ASX Code: AUQ)

Alara successfully completed a $10 million IPO capital raising on 9 May 2007 (by the issue of 40 million shares at $0.25 per share) and its shares will commence trading on the Australian Securities Exchange (ASX) on 24 May 2007.

Alara Uranium Limited is an Australian based mineral exploration and development company with a prospective portfolio of uranium exploration projects in Peru and Australia (Northern Territory and Western Australia):

1. Pampacolca (Peru)
2. Bigrlyi South (Northern Territory)
3. Mt James (Gascoyne, Western Australia)
4. Mt Lawrence Wells (East Murchison, Western Australia)
5. Canning Well (Pilbara, Western Australia)

Peru is a major mining country and a top five producer in several base and precious metals, including copper and gold.  The Company’s confidence in Peru's mining and contractual laws is supported by the presence in the country of some of the world's leading mining companies.  Although the country has had a long history of mining, its mineral potential is outstanding as mineral discoveries continue to be made. 

The Australian uranium tenements occur in the prospective Ngalia Basin in the Northern Territory and in the Gascoyne, East Pilbara and Murchison regions of Western Australia.   The tenements cover areas previously identified with radiometric anomalies or are located in close proximity to uranium anomalies and/or occurrences. 

The Board has members with extensive experience in the resources sector, including Chairman, Dr John Stephenson, previously Exploration Director for Rio Tinto Australasia with more than 35 years experience in the mineral exploration business, and Managing Director, Mr H. Shanker Madan, an experienced senior geologist with more than 30 years of world-wide experience in the exploration and evaluation of mineral deposits for various commodities.

The Company continues to investigate opportunities in uranium as well as in other mineral commodities.   This includes pegging of tenements, entering into joint ventures, taking options over and acquiring tenements, projects and joint venture interests, in Australia, Peru and other countries.