Kobex Resources Ltd.: State of Colorado Approves Exploration Program, Initial Meeting Held With US Forest Service

VANCOUVER, BRITISH COLUMBIA (TSX VENTURE: KBX) and its partner, U.S. Energy Corp. (NASDAQ: USEG) is pleased to provide the following update on the Lucky Jack Molybdenum Project:

Kobex advises that it has received approval from the Colorado Division of Mining, Reclamation and Safety for an amended work program to undertake delineation drilling at its Lucky Jack molybdenum deposit. Safety and potential cost considerations related to rehabilitating the old workings dictated revision of the initial program. In accordance with the new program, most of the old workings located in the historic Keystone Mine will be bypassed by construction of a new access drift.

A notice of activity incorporating this revised program has recently been submitted to Gunnison County for its review. It is now anticipated that this program, including drilling, will be completed by mid-2009.

A meeting with the United States Forest Service (USFS), the lead regulatory agency in the project permitting process, was held in January to inform the USFS of Kobex's and U.S. Energy Corp.'s plans and to discuss the timing for submission of a Plan of Operations to the USFS. As a result, it is now projected that the Plan of Operations will be submitted to the USFS in the third quarter of 2008. However, Kobex expects the collection of environmental data to begin in mid-2008, concurrent with the rehabilitation, access and drilling programs. This approach should not significantly impact the time for completion of the entire mine development and permitting process.

At the meeting with the USFS Kobex conveyed its commitment to incorporate the highest environmental standards into its mine design and also make this data available to the public via the US National Environmental Policy Act (NEPA). "We informed the USFS that it is our objective, upon closure of the proposed mine, to eliminate long-term environmental liabilities such as the need to treat acid drainage in perpetuity," stated Maurice Tagami, Chief Operating Officer of Kobex Resources Ltd.

Keith G. Larsen, CEO of U.S. Energy Corp., stated, "The Company's goal is to conduct our operations at the Lucky Jack Molybdenum Project in an environmentally sound manner that benefits all stakeholders and increases shareholders value." The projected submittal to the USFS during the third quarter of 2008 will allow the completion of additional technical information to be incorporated in the Plan of Operations.

On behalf of the Board of Directors

H. Leo King, President

This news release includes certain statements that express management's expectation or estimates of future performance and may be deemed "forward-looking statements". These forward-looking statements include plans, estimates, forecasts and statements as to management's expectations regarding the Lucky Jack Project These forward-looking statements involve assumptions, risks and uncertainties and actual results may vary materially. For these reasons shareholders should not place undue reliance on such forward-looking information.

United States residents are cautioned that some of the information that may be published by Kobex may not be consistent with United States Securities and Exchange Commission disclosure rules and may be materially different from what the Company is permitted to disclose in the United States and therefore United States residents should not rely on such information.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this News Release.

Contacts: Kobex Resources Ltd. Leo King President and Chief Executive Officer [phone] Kobex Resources Ltd. Maurice Tagami Chief Operating Officer [phone] [phone] (FAX) Email: [e-mail] Website: www.kobexresources.com