ASX Announcement Media Release XX July 2007

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					ATOM TO PURSUE INVESTMENT OPPORTUNITY IN UTAH URANIUM PROJECTS



ASX Announcement / Media Release
28 August 2007


Uranium exploration company Atom Energy Limited (ASX: AXY, “Atom”) today
announced its intention to commit investment funds to support an unlisted public company,
Mustang Energy Ltd (Mustang), to acquire an interest in a group of uranium properties in
south east Utah in the United States of America.

Atom will initially invest $A450,000 in Mustang to assist with option payments, establishment
costs and preliminary exploration expenditure. These funds will be committed in conjunction
with other investors.


Highlights of the Mustang Utah project

   •   Approximately 570 claims acquired by Mustang in the renowned uranium mining area
       of Colorado Plateau known as the Four Corner district.


   •   The proposed area is a large landholding within a region that was a major American
       producer of uranium and vanadium in the 1940s through to the 60s.


   •   It is proposed that the project will include a separate ASX listing for Mustang, with
       some priority access for Atom shareholders at the time.


   •   The United States has a well established nuclear power industry and a resultant
       favourable regulatory environment.


   •   Mustang and Atom have established a relationship with Dennis Ekker who is a third
       generation producer of uranium and vanadium in the Hanksville area, in Wayne
       County. His extensive experience in the mining and treatment of uranium was
       recognised by the US Atomic Energy Commission in 1973 when he was awarded a
       Source Mineral Licence. These licences are extremely rare in the US and the licence
       authorises Ekker to operate a uranium mill in the USA.




                   Level 24, St Martins Tower, 44 St Georges Terrace, Perth WA 6000 Australia
             Tel: +61 8 9202 1219 | Fax: +61 8 9218 8875 | Email: admin@atomenergy.com.au
    Uranium mineralisation in Shinarump Conglomerate member of the Chinle Formation

The properties cover 21 square kilometres over numerous prospective sedimentary units
hosting uranium and vanadium mineralisation in the renowned uranium mining area known
as the Four Corners district. The district, at the junction of Utah, Arizona, Colorado and New
Mexico, was a major American producer of uranium and vanadium in the 1940s through to
the 60s. Applications for further claims covering an additional 20km2 over the same
prospective sedimentary formations will be registered in the immediate future.

Atom Managing Director, David Hamlyn, said investment in Mustang represents an excellent
opportunity to secure an indirect interest in highly prospective properties in a location which
has an expanding market for uranium. The United States has a well established nuclear
power industry, a favourable regulatory environment, existing uranium mining processing
operations and a growing domestic market for the product.




              Caution sign due to high levels of radon gas at Temple Mountain.




                   Level 24, St Martins Tower, 44 St Georges Terrace, Perth WA 6000 Australia
             Tel: +61 8 9202 1219 | Fax: +61 8 9218 8875 | Email: admin@atomenergy.com.au
“The investment offers a significant boost to Atom’s uranium portfolio and suits our strategy
of pursuing uranium exploration and investment opportunities within areas of low political risk
and where regulatory policies are conducive to project development,” said Mr Hamlyn.




Hidden Splendor Uranium Mine in the Shinarump Conglomerate to the southeast of the Oro
                                   Tea claim area.


Mustang has entered into Memoranda of Understanding (MOUs), dated 24 July 2007 with
Mr Dennis Ekker, Mr Everett Ekker and Mr Jeff Adams over 279 existing Federal unpatented
lode mining claims and an additional 300 future claim applications in the Henry Mountains
and San Rafael regions near Hanksville, Utah.

Under the terms of the MOUs, Mustang has agreed to enter into an Option Agreement to
purchase the properties. Mustang will pay $US260,000 to secure a six months exclusive
option, effective from the date of drilling approvals being granted on at least three of the
properties, to assess and explore the projects.

It is proposed that exercise of the option will trigger preparation of the prospectus for the IPO
and listing of Mustang shares on the ASX with payments to the vendors of a maximum of
$US1million in cash from the proceeds of the IPO and the issue of $US1million in Mustang
shares (both the cash and shares limited to a maximum of the equivalent of 10% of the
funds raised in the IPO) for a 100% interest in the projects.




                    Level 24, St Martins Tower, 44 St Georges Terrace, Perth WA 6000 Australia
              Tel: +61 8 9202 1219 | Fax: +61 8 9218 8875 | Email: admin@atomenergy.com.au
Upon completion of data compilation and assessment of initial exploration programs,
Mustang will review a variety of potential financing and development options to further
advance the project. It is proposed that this will include a separate ASX listing for Mustang,
with necessary arrangements made to ensure priority access for Atom shareholders.

“By this investment in Mustang, Atom is able to gain exposure to these very prospective
assets in the United States, without the requirement for direct expenditure of funds or
management time,” Mr Hamlyn said.

As detailed in the Atom prospectus, the Company is also in the final stage of preparations for
a two-for-three, non-renounceable rights issue of options, at one cent each. The options will
be exercisable at 37.5 cents with a three year term from the date of ASX quotation.

-ENDS-


Further Information:

David Hamlyn                                                                          Katherine Knox
Managing Director                                                                     Porter Novelli
(08) 9202 1219                                                                        (08) 9386 1233
0417 915 548                                                                          0421 186 129


Or visit: www.atomenergy.com.au

About Utah

The area around Hanksville in Utah is a well mineralised and rapidly developing region
within the United States. The “Four Corners” district is at the junction of the Utah, Arizona,
Colorado and New Mexico and is renowned for its substantial historical production of uranium
and vanadium.

Mustang’s Utah properties form part of the Colorado Plateau which consists of a relatively
undeformed sequence of flat lying sediments covering an area of over 360,000km2 in the
Four Corners district. The plateau sediments host high grade uranium and vanadium
deposits in specific fluvial sandstone and conglomerate horizons with typical historical
production grades of 3 to 6lbs/tonne U3O8 (0.15 to 0.3%) and 30 to 100lbs/tonne V2O5. (1.5
to 5%). The mineralisation is concentrated within the Salt Wash member of the Morrison
Formation and the Shinarump member of the Chinle Formation.

All of the Mustang claim areas are underlaid at relatively shallow depths by the prospective
Salt Wash sandstones or Shinarump conglomerates and are located in prospective
structural basin sites.



                   Level 24, St Martins Tower, 44 St Georges Terrace, Perth WA 6000 Australia
             Tel: +61 8 9202 1219 | Fax: +61 8 9218 8875 | Email: admin@atomenergy.com.au
About Atom Energy Limited

Atom Energy Limited (“Atom Energy”) is a uranium exploration company with a strong
portfolio of projects in the Northern Territory of Australia. The Company’s existing projects
are all in known mineralised areas and include:

   •   Cleo's Uranium Project (100%)
   •   Munadgee Creek Uranium Project (100%)
   •   Native Gap Project (100%)
   •   Gaylad Creek Project (100%)

The Company’s flagship project is the Cleo’s Uranium Project located 175 kilometres
southeast of Darwin within the highly prospective Pine Creek Geosyncline. Previous
exploration activity, including extensive drilling during the 1980s, has identified a combined
historical resource (classed as pre-resource mineralisation at this time) of 1.6 million lbs (740
tonnes) of contained U3O8 at an average grade of 0.12%. The Cleo’s Uranium Project hosts
potentially mineable resources at the Twin and Dam Deposits and good opportunities to
delineate additional uranium deposits on the other 10 prospects within the project area.

Atom Energy’s initial focus is the establishment and extension of JORC compliant resources
at the Cleo’s Uranium Project and the pursuit of development opportunities for the deposits.
On 24 August 2007, the Company announced the proposed acquisition of a further 8,100
square kilometres of exploration tenements in the Northern Territory and Atom will progress
exploration and resource delineation programs on these tenements in conjunction with the
Company’s existing exploration projects.

Part of the Company’s growth strategy is to seek opportunities to acquire uranium
exploration projects within Australia and overseas to provide access to uranium resources in
regions of low political risk with favourable development and regulatory environments.

Atom Energy has an experienced board and management with expertise in mineral
exploration, project development and corporate finance. The directors believe that the
Company’s projects have significant resource potential and the ability to generate value for
shareholders.




                    Level 24, St Martins Tower, 44 St Georges Terrace, Perth WA 6000 Australia
              Tel: +61 8 9202 1219 | Fax: +61 8 9218 8875 | Email: admin@atomenergy.com.au

				
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