Western Uranium Provides Chairman's Update

Western Uranium Corporation ("the "Company" or "Western Uranium") (TSX
VENTURE:WUC) provides the following message to the shareholders of the Company.


"As Chairman of Western Uranium Corporation, I would like to share my thoughts
on the current equity markets and the prospects for our company. We are
experiencing a dramatic revaluation of the shares of companies in the junior
resource sector. After several of the best years imaginable for commodity prices
and related equity prices, the resource sector is in a virtual meltdown as
investors take liquidity in equities from this sector to offset investment
losses related to the fallout from the global credit crisis. Many of the
institutions who invested in this sector are now forced sellers as individuals
pull money out of their accounts. The selling price is not a factor in this
market scenario. Western Uranium shares have fallen from a high of $2.46 at the
end of May to a recent low of $0.62, a drop of approximately 75% in value. This
in the face of a successful spin off of Western Lithium Canada Corporation
("Western Lithium") and the initiation of drilling on our Kings Valley Project
in Nevada. The Company currently has $50 million in cash which represents $0.85
per share given our 60 million shares outstanding. In addition, the Company owns
15.0 million shares of Western Lithium currently priced at $0.55 per share or
$8.3 million which represents another $0.14 cents per Western Uranium share for
a total of $1.00 per share in cash and securities. As a company, we are stronger
in many respects when compared to our peer group. Opportunities are being
presented to your management team from companies unable to finance their current
programs. This deal flow will increase if the market continues to sell off. The
Company can afford to be very selective and will only consider transactions that
would be significantly accretive to our valuation.


The Company's exploration budget through the end of the year is approximately
$2.0 to $3.0 million. Our current exploration program is designed to provide an
initial test of the large geochemical anomalies at the Old Man Springs and Bull
Basin target areas. The program is being conducted with the use of helicopter
support in order to alleviate some of the tedious permitting process associated
with truck mounted drilling. It is imperative that we generate concrete results
this Fall in order to design and submit a larger drill program for the coming
year. Results to date have been very encouraging in terms of rock types,
alteration and mineralization encountered. The targets are quite large in aerial
extent and geologically complex. The current drill program is providing much
needed data to develop a three dimensional geological model to assist in guiding
additional exploration. Programs of this scale require patience and
determination to be successful. Our strategic partner, Cameco Corporation, the
world's largest uranium producer, agrees with and supports our conceptual model
and exploration plan. As stated in our presentations, it is our opinion that the
McDermitt Caldera is a unique geologic feature in respect to its prospectivity
to host uranium as well as other metalliferous deposits such as Western
Lithium's extensive lithium holdings.


To date, Western Uranium has delineated a NI 43-101 compliant inferred resource
of approximately 5 million pounds of uranium along the western caldera margin.
Subsequent regional exploration work led us to what appears to potentially be a
much larger system in the Old Man Springs/Bull Basin area.


Western Uranium is an exploration company; we are well funded and have a highly
qualified team of professionals engaged in the search for uranium resources that
will increase the value of your shares.  We are concerned with the current share
price but are also comfortable that the market will eventually recover. The
future for uranium and nuclear power is brighter than ever. High prices for oil,
coal and the need for other clean energy sources will continue to bring informed
decision makers to this obvious conclusion. Western Uranium's goal is to
discover and develop commercial uranium deposits both domestically and worldwide
as opportunities arise. We have managed our new company well by keeping focused
on our core asset, are well capitalized, have the support of a major uranium
mining company, and developed our programs at reasonable costs with a minimum of
dilution.


I would also point out that we have the opportunity to participate in the future
growth of Western Lithium as it develops its world class lithium assets for a
growing battery market for the plug-in hybrid and electric automobile
revolution. The future is about energy, how we generate electricity and how we
store and utilize electricity will be primary themes going forward. Western
Uranium is well capitalized and positioned to take advantage of the upcoming
energy revolution. I want to thank you all for your support and encouragement in
these difficult times."


On behalf of the Board of Western Uranium Corporation

R. Edward Flood, Chairman

Western Uranium Corporation is a mineral exploration company with a focus on
uranium. The company has exploration properties in Kings Valley, Nevada,
Treeline, New Mexico and in the Thelon Basin, Nunavut and the Northwest
Territories. The Company has its head office in Vancouver, Canada; and its
executive management team is based in Reno, Nevada.


Western Lithium Corporation is a mineral exploration and development company
with a focus on lithium. The company has an exploration property in Kings
Valley, Nevada through a lease option agreement with a wholly owned subsidiary
of Western Uranium Corporation.