U.S.ENERGY CORP. RETAINS SAMUEL ENGINEERING TO DEVELOP MINE ENGINEERING STUDY FORLUCKY JACK MOLYBDENUM PROJECT EngineeringStudy to Provide Critical Components for Plan of Operations to be Submitted toU.S. Forest Service

                    877 N. 8th W.   Riverton, WY  28501    (307) 856-9271      FAX ###-###-####

 

For Immediate Release

RIVERTON, Wyoming – April 30, 2008 – U.S. Energy Corp. (NASDAQ Capital Market:  “USEG” or the “Company”) today announced that Samuel Engineering, Inc. has been retained by the Company as a consultant to develop a mining engineering study for the “Lucky Jack” molybdenum project in Gunnison County, Colorado.  Samuel Engineering is a full service, multi-discipline, highly qualified engineering and architectural firm with personnel that have extensive experience involving major mining projects throughout the world.

As part of the study, Samuel Engineering will be working with other consultants to produce the following engineering studies and plans:

·	geological modeling;

·	a mine development plan with detailed capital costs;

·	mine backfill study;

·	milling, process and layout review and planning including water balance;

·	plot plan drawings;

·	civil and electrical engineering plans;

·	tailings and water management plans;

·	environmental baseline monitoring and permitting analysis; and,

·	a project cost schedule.

Also included in the deliverable items will be a 3-D fly through digital model of the mine site.  The detailed studies provided by Samuel Engineering will ultimately be utilized in the final drafting of a Plan of Operations planned to be submitted to the U.S. Forest Service.

During the last year, over $10 million has been spent on numerous project items for the Lucky Jack project including a Quality Assurance/Quality Control review of 650 samples of the original drill results, site upgrades at the Core and Water Treatment Plant buildings, sampling of surface waters to improve the data base, and permitting activities with the Division of Reclamation, Mines and Safety.  In addition, transportation, socio-economic, geotechnical, hydrological, tailings and reservoir siting studies have been completed.  The Company also has located additional unpatented mineral claims and conducted a detailed land survey of the site.  All of these studies and the land survey will also be utilized in the preparation of the Plan of Operations.

 

 

 

Mark Larsen, President of U.S. Energy Corp., stated, “I am very pleased to announce that we are moving full steam ahead in the advancement of the Lucky Jack molybdenum project.  The engineering and mine modeling studies that Samuel Engineering will undertake represent a critical last step in finalizing our Plan of Operations and a critical first step in evaluating the economics of a mine plan that will ultimately lead us to the commissioning of a full feasibility study concurrent with the drafting of an Environmental Impact Statement.  Samuel Engineering’s detailed work will begin immediately.  Once completed, we will have a better understanding of the economics of this ‘world-class’ molybdenum deposit as we continue to advance the project.”

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U.S. Energy Corp. is a diversified natural resource company with interests in molybdenum, oil and gas, gold, and real estate.  The Company is headquartered in Riverton, Wyoming, and its common stock is listed on The NASDAQ Capital Market under the symbol “USEG”.