U.S. Energy Corp. Acquires Various Uranium Properties in Utah

RIVERTON, Wyo., April 27, 2005 /PRNewswire-FirstCall

U.S. Energy Corp. (Nasdaq: USEG) announced today that it has acquired more than 12,000 acres of unpatented lode mining claims for uranium in Utah. The claims are located on Bureau of Land Management land in the Lisbon Valley, White Canyon and Green River uranium mining districts, where substantial amounts of uranium were produced in the past in these prolific districts.

An aggressive program of location and exploration of additional claims continues, according to Chris Healey, U.S. Energy Corp. vice president for exploration. U.S. Energy Corp. and its subsidiary Crested Corp. have historically engaged in the acquisition and development of uranium properties in the western United States.

"U.S. Energy and Crested Corp. have retained their significant resources in uranium during extended periods of depressed prices because we believe in the future of nuclear power," said Keith Larsen, President of USEG. "We are committed to help meet the nation's uranium production needs. Although their resources are not completely known at this time, we believe these properties have excellent potential to add substantially to our resource base."

"We have announced plans to reopen our Shootaring Canyon uranium mill in southeast Utah," Larsen said. "These properties, and those that we plan to acquire, will provide feed for the Shootaring Canyon mill," he concluded.

USEG has also announced a joint mining agreement with Uranium Power Corp. (Vancouver: UPC) of Vancouver, British Columbia. The two companies have committed to the reopening of USEG's Sheep Mountain uranium properties in southcentral Wyoming, as well as other uranium ventures. Mr. Healey, who is also a director of UPC, has announced that a comprehensive program of exploratory drilling and resource evaluation is under way at Sheep Mountain. He is a qualified person for the uranium ventures under National Instrument 43-101, for purposes of UPC's disclosures under Canadian securities laws.

U.S. Energy Corp. and its majority owned subsidiary, Crested Corp. are engaged in a joint venture to conduct various business operations as USECC. Through their subsidiaries, Rocky Mountain Gas, Inc., Sutter Gold Mining Inc., Plateau Resources Limited., U.S. Moly Corp and USECC, they own interests or properties prospective for natural gas, gold, uranium and molybdenum.

This news release includes statements which may constitute "forward-looking" statements, usually containing the words "believe," "estimate," "project," "expect," or similar expressions. These statements are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, future trends in natural gas and mineral prices, the availability of capital for development of natural gas and other mineral projects, competitive factors, and other risks detailed in the Companies' periodic report filings with the Securities and Exchange Commission. By making these forward-looking statements, the Companies undertake no obligation to update these statements for revision or changes after the date of this release.

SOURCE U.S. Energy Corp.

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