White Canyon Signs Convertible Note Funding Agreement for $US 2.5 Million

US-focussed uranium production company White Canyon Uranium Limited (TSX
VENTURE:WU)(ASX:WCU) ("White Canyon" or "the Company") is pleased to announce
that it has negotiated a secured convertible note funding agreement
("Agreement") for $US 2.5 million with Mrs Man Ying Lulu Yu, a Hong Kong based
investor. 


The terms of the Agreement provide for US$ 500,000 to be advanced to the company
on a monthly basis up to the full facility of US$2.5 million. The interest rate
on the notes is 8% per annum payable on maturity. The notes mature on 31
December 2010 and can be converted or repaid on that date at the noteholder's
discretion. The notes may also be converted, in part or full, at the
noteholder's discretion prior to the maturity date. The conversion price is
AUD$10.75 cents per ordinary share. The Company will not require shareholder
approval to issue any conversion shares, as this can be done in its 15%
placement capacity under Listing Rule 7.1.


While any notes are outstanding, the noteholder may appoint a person to the
White Canyon board. Any such director must resign on full repayment of the
notes. The Agreement also provides the noteholder with a right of first refusal
to provide secured debt funding to the Company while any notes are outstanding.


The Agreement is subject to the prior acceptance for filing of the TSX Venture
Exchange. The first tranche of US$ 500,000 will be drawn down immediately once
such acceptance is obtained. The loan is secured over the assets of the Company
that are located in San Juan County, Utah. 


The Company will use the loan funds to progress its mining operations in Utah.
This represents a significant step forward for the Company as it will assist it
to continue mining to produce the required tonnage for milling at which time the
Company is expected to be elevated to the ranks of producer and marketer of
uranium.


Yours faithfully

Lew Cross, Chairman

ACN 115 453 962

White Canyon Uranium Ltd Ord (TSXV:WU)
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