Cue Resources Ltd. to Conduct Drilling at San Miguel, Yuty Uranium Project

Cue Resources Ltd. (TSX VENTURE:CUE) (the "Company") is pleased to announce that
preparations are underway for a new drill program on the San Miguel (See Figure
1 below) zone located on the Company's 100% owned Yuty uranium project in
south-eastern Paraguay. Sixty-four historic holes have been drilled previously
with three holes of heightened interest in the 0.10-0.50m% eU3O8 range.


"We are excited to accelerate our 2011 exploration program as we begin to
explore the resource potential at San Miguel," stated Robert Tyson, President
and CEO. "Our drill programs to date have been limited to the San Antonio zone.
We have 3 other zones to drill in the immediate vicinity of San Antonio, within
the Yuty uranium project including San Miguel. It is time to capitalize on the
historic exploration undertaken by Anschutz in the early 1980s and begin to
define the potential at San Miguel."


The program will consist of approximately 45-50 holes totaling approximately
3500 metres. The goal of the drilling is to quantify additional resources and
refine the geological model at San Miguel and Yuty as a whole. Current data
shows a significant number of historical holes at San Miguel have encountered
anomalous or better uranium mineralization.


San Miguel

San Miguel is located 5 km NE of San Antonio along the reduction-oxidation
(redox) front which hosts the uranium mineralization at San Antonio, San Miguel,
Yarati-y, and Typychaty. All four of these zones show high-priority target areas
and all have historical drilling which has intersected anomalous or better
uranium mineralization. Each zone is similar in area to San Antonio. The redox
front appears to define a nearly continuous zone of potentially significant
mineralization.


To view Figure 1, click on the following link:
http://media3.marketwire.com/docs/Yuty_Figure1.pdf


San Antonio Deposit

The San Antonio Deposit consists of a current NI 43-101 compliant resource,
Indicated, 9.0M tonnes @ 0.042% eU3O8 containing 8.3M lbs eU3O8 and an Inferred
Resource of 1.1M tonnes @ 0.050% eU3O8 containing 1.2M lbs eU3O8. Column leach
tests have demonstrated recovery of up to 86% of the contained uranium from
cores taken from San Antonio. In addition, laboratory testing on drill cores has
shown permeability and porosity values within the range of existing commercial
ISR operations.


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.


Chris M. Healey, P.Geo, a director of Cue, is the Qualified Person responsible
for the technical content of this release.


On behalf of the Board of Directors

Robert S. Tyson, President and Chief Executive Officer