Waseco Resources Inc. - News Release

Uranium Property Update

Waseco Resources Inc. "WRI" TSX-V
April 03, 2006 News Release


April 3rd, 2006- Toronto, Canada. Waseco Resources Inc. (TSX-V: WRI- Frankfurt: WSE) reports having received formal notification by UMC Energy plc that it is not exercising its right to earn an interest in 150 claims, pursuant to an agreement dated February 9 th, 2005. Waseco currently holds a 100% interest in 291 claims in the Labrador Trough that are prospective for uranium, base metals and possibly diamonds.

The Company has also received an Evaluation Report of Waseco’s Properties in the Quebec Labrador Trough, prepared by Dr. Roger Lainé , Ph.D. P,Geo., which correlates the Geophysical Report prepared by McPhar Geosurveys Ltd. with geochemical reports prepared by the Quebec Ministry of Natural Resources, as well as geological information obtained from assessment filings on historical work.

Chairman Peter Howe, P. Eng. is pleased that the work to date has identified new uranium anomalies that have never been tested on each of the property Blocks. One of the highlights is the several strong uranium anomalies that follow a linear structure running north-west - south-east, over 7.5 km across Block I. The Company has extended its land position to include the extension which appears to coincide with uranium anomalies on Block II, making the entire area of interest some 15 km long.

Dr. Lainé states in his Conclusions that:

BLOCKS I AND II:

“Most likely uranium targets to be found would be Midnite type deposits or Shinkolobwe type deposit. Previous exploration and drilling has shown that uranium mineralization is linked to dolomitic levels in the Seward Group which has similarities with the Mines series of Zaire . On top of that the best intersections are related to tectonic zones which seem to line up parallel to the magnetic highs: faulted contact between gabbro sills and dolomitic Lace Lake Formation on one side and faulted contact between the same gabbro sill and the Chakonipau Formation on the other side.

Despite all the work done by Eldorado Nuclear, the source of the radioactive boulders from Train 3 was not found; work on the other boulder trains was inconclusive and may require stepping back to better understand the geology and the contacts between the gabbro sill and the two sedimentary formations on either side of the gabbro.

The numerous “new” uranium anomalies warrant ground checking, along with serious mapping to check the previous work by Eldorado and the Geological Survey, relocate the DDH and trenches accurately.

Stratigraphic drilling is warranted to understand the presence of the Lace Lake Formation on the west side of the contact between the Chakonipau Formation and the gabbro sill, to go deeper and explore the relationship between the gabbros and the Lace Lake-Chakonipau Formations; at the same time, to see if there is enrichment of uranium with depth. At least two cross-cut sections should be extended to the NE and SW over the boulder train where the previous drilling took place to understand the geology and check the magnetic bodies (iron formations of McPhar).

Prior to drilling some ground EM should help better define the faulted contact in the extensions of the known drilling in order to prepare for additional drilling along the contact. Lines should be several KM long in the NE-SW direction to cross-cut the regional faulting pattern to outline major faults if any going across the three geological units: the Chakonipau Formation, the gabbro sill, and the Lace Lake Formation.”

BLOCK III

“Is there a possibility of finding unconformity vein-type deposits in the east part of BlockIII? The basement does not show any signs of politic or graphitic metasediments like in Saskatchewan ; the potassium high seems to stop at the contact with the sandstones, but the gravity low seems to continue underneath the contact: do we have something there? The contact between the sediments and the granitic basement could be faulted therefore we would not have a normal contact which is typical of the Saskatchewan deposits.

Nonetheless about 10km to the northwest, previous exploration found some stratigraphically controlled mineralized showings, 233 and 239, typical of Dieter Lake mineralization, and 235, albitization and vein control. Dieter Lake type deposits should be checked in the Wishart Formation sediments in contact with the basement arkosic sandstones and conglomerates which seem to be anomalous in uranium. A few stratigraphic diamond holes are warranted to check the facies and the nature of the contact between the sediments and the underlying basement; one over the magnetic high and one on either side (see McPhar geophysical interpretation Block III) to have an answer.

The kind of mineralization discovered by previous prospecting is typical of the Bancroft area: uranium linked to intrusive pegmatite dykes in granite basement.

But more encouraging, the uranium map (2005 survey by McPhar) shows a consistent uranium “high” over what can be seen over the folded granitic rocks ( McPhar: Geophysical Interpretation Block III) . This should be investigated on the ground for geological mapping and ground radiometrics, looking for Rossing type settings: the uranium linked to alaskite intrusives sills in gneiss series on the flank of a synform. The two uranium anomalies, U24 and U25, would be on the outskirts of the synform if this is what the geophysics reveals.

BLOCKS IV AND V:

Least prospective of the properties; previous work has found no encouragement after drilling…a crew could go down and spend some time on the Uranium anomalies found by McPhar (UB4 to 6) on Block IV, which lie inside the basement inlier (Basement high), and U27 on Block V…”

He also states in his Recommendations that:

“Additional staking be carried out (locations excluded from New Release) based on the lake bottom sediment anomalies. Ground prospecting and geological mapping of the uranium anomalies of Block I (U2 through U12) and Block II (U14 through 21) as well as on Block III, which do not correspond to any of the previously known mineral occurrences. Ground EM Surveys and Diamond Drilling are also recommended on Blocks I, II and III.”

This release was reviewed by Dr. Roger Lainé in his capacity as a Qualified person (Q.P.). A copy of the McPhar Geophysical Report is being filed on SEDAR and will also be available for viewing on the Company’s web site. Waseco Resources has already initiated the search for a new partner to fund the next phase of exploration. Given the results to date and the interest in uranium, management is optimistic that a suitable partner can be found.

The Company also wishes to report that the Company’s claim for damages resulting from the expropriation of its tantalum prospect in Figuery township, Quebec , by the Quebec Ministry of Natural Resources, has been adjourned until September, 2006.



 
WASECO RESOURCES INC.

Richard Williams
President


Contact: Richard William
     tel: (416) 364-3123
     e-mail: Blackwell@tcn.net
 
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