Published: May 11, 2010
UC Hub Obtains First Round in $1 Million Funding and Prepares to Launch Mining Operations
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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