Cue Resources Ltd. Increases Grade and Resource at Yuty Uranium Project

Cue Resources Ltd. (TSX VENTURE:CUE) - 

Highlights:



--  23% grade increase for Indicated and Measured Resource 
--  7% increase in metal content for Indicated and Measured Resource 
--  Inferred Resource increased 86% 



Cue Resources Ltd. ("Cue" or the "Company") is pleased to announce a significant
increase to the Mineral Resources at the Company's Yuty Project (San Antonio
Zone) located near Yuty, Paraguay. Compared to the previous estimate, the grade
of the Measured and Indicated Resource has increased by 23%, and the metal
content in these categories has increase by 7%. As well, the metal content of
the Inferred Resource has almost doubled.


The classification of the Mineral Resource is based on the spread in confidence
around the 90% confidence limit. The current Mineral Resource estimate includes
resources in the categories of Measured, Indicated and Inferred, as follows:




----------------------------------------------------------------------------
             Mineral                                        Percent  Percent
             Resource      Tonnes    Grade         eU3O8   Increase Increase
11 July 2011 Category    (million) eU3O8(%)  (million lbs)    Grade      lbs
             ---------------------------------------------------------------
             Measured       2.054    0.062          2.801                   
             Indicated      5.783    0.048          6.113                   
             Measured +                                                     
             Indicated      7.837    0.052          8.914       23%       7%
             Inferred       2.139    0.047          2.226       -4%      86%
----------------------------------------------------------------------------
Notes                                                                       
1. Tonnes and element lbs's have been rounded-off to the appropriate level  
of accuracy.                                                                
2. Resource estimate completed at a 0.02% eU3O8 data and aerial boundary   
cut-off.                                                                    



"We are very pleased to show significant growth in our uranium resource and
average grade at Yuty," commented Robert Tyson, President and CEO for Cue: "Of
equal significance is the discovery of multiple vertical horizons and other
lithographic information that will help us surgically target our ongoing
drilling at San Antonio. This information, combined with the positive results
from our pump test (April 2011) and grades comparable to some IRS producers,
give us great confidence to continue to advance the San Antonio zone toward our
goal of commercial viability." 


The new mineral resource estimate was based on the development of a three
dimensional geological and Resource model. The geological model was based on a
uranium radiometric drill hole value cut-off of 0.02% (eU3O8) at a minimum
thickness of 0.1m. This facilitated the creation of the mineralized zone aerial
extent. Resource estimation was completed utilizing standard geostatistical
methods applied to a 3-dimensional block model in Datamine(TM) mining and
exploration modeling software. 


The previous estimate (see release dated April 16, 2009) was completed as a two
dimensional estimate utilizing the GT Contour Method resulting in an estimated
Indicated Resource totalling 9.0 M tonnes at an average grade of 0.042% eU3O8
for a total of 8.3M lbs contained eU3O8 and an additional Inferred Resource
totalling 1.1 M tonnes at an average grade of 0.050% eU3O8 for a total of 1.2M
lbs contained eU3O8.


The Yuty Uranium Project comprises multiple stacked uranium mineralized zones.
There are 3 main mineralized zones, an upper, an intermediate and a lower. There
are however up to three thinner intermediate zones that also occur within the
main mineralized zone. The upper mineralized zone occurs throughout the deposit
whereas, the intermediate and lower mineralized zones occur sporadically
throughout the area. The entire mineralized zone with its intermediate waste
reaches a mean thickness of 7.1m. The upper and lower portions are the thickest
mineralized zones. These zones vary from 0.1m - 15m in thickness with mean
thickness values of 2.3m and 1.0m respectively. 


The mineralized zones were ordinary kriged in layers individually by placing the
drill hole composites at a common datum for each respective mineralized zone.
The variography is based on average layered variograms interpreted for each of
the 3 geological domains identified from the ore body morphology. 


Reconciliation of the estimate versus actual borehole composites was completed
by means of visual inspection, swath trend analysis and linear regression of the
values. These regressions produced coefficients of determination (R2) of between
0.94-0.99. 


The reported resource conforms to the Standards of Disclosure for Mineral
Properties as stated in National Instrument 43-101. The estimate was completed
by BRS Inc., of Riverton Wyoming in association with ExplorMine Consultants,
South Africa. Doug Beahm P.E, P.G., president of BRS, is the independent
qualified person responsible for this estimate, and will be the lead author of a
technical report which will be filed on SEDAR within 45 days of the date of this
release.


As with the previously reported Mineral Resource, a minimum cut-off grade of
0.02% eU3O8, however no minimum thickness was applied. Studies to date indicate
that the deposit may be amenable to extraction by in situ recovery (ISR)
methods.


Cue also announces the resignation of Dorian (Dusty) Nicol from the Company's
Board of Directors effective July 12, 2011. The Board and management of Cue
thank Dusty for his valuable input while serving the Company.


About Cue Resources 

Cue Resources Ltd. is focused on developing the Yuty Uranium District in
south-eastern Paraguay. For detailed information, please see the Cue web site at
http://www.cue-resources.com.


On behalf of the Board of Directors

Robert S. Tyson, President and Chief Executive Officer

No stock exchange, securities commission or other regulatory authority has
approved or disapproved the information contained herein. This News Release
includes certain "forward-looking statements". All statements other than
statements of historical fact, included in this release, including, without
limitation, statements regarding potential mineralization and reserves,
exploration results, and future plans and objectives of Cue, are forward-looking
statements that involve various risks and uncertainties. There can be no
assurance that such statements will prove to be accurate and actual results and
future events could differ materially from those anticipated in such statements.
Important factors that could cause actual results to differ materially from
Cue's expectations are exploration risks detailed herein and from time to time
in the filings made by Cue with securities regulators.