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UC Hub Obtains First Round in $1 Million Funding and Prepares to Launch Mining Operations

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LOS ANGELES - (BUSINESS WIRE) - UC Hub, Inc. (Pink Sheets: UCHB), a resource company focused on acquiring and developing revenue-producing assets, announced today that is has obtained the initial tranche from a $1 million funding agreement toward a launch of production at its gold and sapphire mine near Helena, Montana. The investment was negotiated with a private investor and involves the issuance of 3 million shares of common stock in addition to a 5.25% net royalty generated by the mine. The funds are being used to bring the mining property into regulatory compliance and to acquire the equipment necessary to begin effective extraction of gold and gem-quality sapphires.

UC Hub has agreements pending or in force with certain miners and gem entities to purchase all production from their mines. In recent months, the Company has accumulated over 5,000 carats of sapphires, which are now being cut and prepared for sale through one of several ready markets. Based upon industry wholesale pricing, which grades individual gems according to the size, the carats, cut and clarity, the price of these stones range from $600 to several thousand dollars per carat for Natural Montana Sapphires. The Company also has some placer gold (several ounces) and approximately $25,000 of additional cut sapphires for potential buyers whom are in discussions with the Company.

UC Hub is conducting research on properties in the area and is in the process of acquiring a site known for historic gold and sapphire production. When the purchase is finalized, the property will go through the applicable Montana permitting process. During the next several months, the remaining equipment will have been acquired and moved to the mine site, and our team will commence full-time mining operations. The initial crew has been hired and is on-site working on operational issues, cost analysis and production schedules. The rest of the experienced mining team will arrive when full production on the various properties is set to begin with the appropriate operations entity.

Commenting on recent developments, CEO Larry Wilcox said, "Finalizing the funding necessary to launch this mining operation was a critical milestone as UC Hub completes its transition from the 'development stage' into its revenue-generating, 'emerging growth' phase. We are particularly pleased we have accomplished this capitalization without significant dilution to our shareholders. We felt this was essential while our stock is still relatively unknown by the market."

Wilcox said that he anticipates the Company will extract thousands of carats of sapphires monthly and that he is equally optimistic about the projected yield of gold, to be extracted simultaneously. He indicated that historically mines in the district produced $5 million in gold and 900,000 carats of sapphires annually when gold was $32 an ounce.

"The Company will consider this project a win when we meet our projections of $1-3 million annually in combined revenues from both sapphires and gold," added Wilcox. "With spot gold having recently closed over $1,200 and oil at approximately $75 per barrel, we are excited about the potential represented in our several active properties, including our oil property in southern Illinois, all of which are gearing up for meaningful production," he said.

UC HUB GROUP, INC. is an acquisition-oriented company focused on recurring revenue and growth through a portfolio of producing oil and gas leases and proven mineral and gem properties throughout North America. Visit the Company's web site at www.uchub.net.

This news release includes forward-looking statements, within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements are based on current expectations, estimates and projections made by management. The Company intends for the forward-looking statements to be covered by the safe harbor provisions for forward-looking statements. Words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates," or variations of such words are intended to identify such forward-looking statements. The forward-looking statements contained in this news release include statements regarding the potential of the property and the enhanced value of the Company. The forward- looking statements are subject to risks and uncertainty, that could cause actual results to differ materially from those projected in these forward-looking statements Such statements include the risks that the property may not be as valuable as anticipated, the ability of management to successfully operate the property and market any products derived therefrom and general economic conditions.. All forward-looking statements in this news release are made as of the date of this press release, and the Company assumes no obligation to update these forward-looking statements other than as required by law. The forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those set forth or implied by any forward-looking statements and include the risk factors discussed in the Business and Management's Discussion and Analysis sections in our Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Copies of these filings are available at www.sec.gov.

Jordan Richard Associates LLC
Madeleine Franco, 702-256-4905
or
Larry Wilcox, 800-278-8870
info@uchub.net



 
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Updated: 16:15 PDT     3122

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