Announces Up To $3.5 Million Private Placement with Blackmont Capital as Lead Agent



October 31 2006 – Purepoint Uranium Group Inc. (TSX-V:PTU) has announced an agreement with a syndicate of agents led by Blackmont Capital and including Loewen, Ondaatje, McCutheon Limited to raise up to $3,500,000 by way of a marketed private placement of flow-through common shares (“Flow-Through Shares”) at a price of $0.48 per Flow-Through Share and common share units (“Units”) at a price of $0.44 per unit.

Each Unit will consist of one common share and one-half common share purchase warrant (“Warrant”), with each whole warrant entitling the holder to purchase one additional common share for a period of up to 18 months from closing at a price of $0.55 per common share.

“With the spot price of uranium reaching yet another major milestone this week of US $60.00 per lb. the sector continues to demonstrate unique support for the future” said Chris Frostad, President and CEO, Purepoint Uranium Group Inc.

The Agents will receive a cash fee equal to 8% of the gross proceeds raised from the placement, as well as broker’s warrants, exercisable for a period of 18 months, to purchase a number of common shares equal to 10% of the number of Flow-Through Shares and Units issued in the offering.

Completion of the private placement is subject to certain conditions, including satisfactory due diligence by the Agents and receipt of all necessary regulatory approvals.

The net proceeds of this private placement will be used to further advance Purepoint’s seven uranium exploration projects and for general capital purposes.

Purepoint Uranium Group Inc. is focused on the precision exploration of its seven, 100% owned, highly prospective projects in the Canadian Athabasca Basin. Established in the Basin well before the resurgence in uranium, Purepoint is actively advancing some of the hottest drill targets in the world’s richest uranium region.

The securities offered have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the benefit of U.S. persons except in certain transactions exempt from the registration requirements of such Act. This news release shall not constitute an offer to sell nor the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.

Disclosure regarding forward-looking statements

Note: This press release contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of the Corporation. These risks and uncertainties could cause actual results and the Corporation’s plans and objectives to differ materially from those expressed in the forward-looking information. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and expressly qualified in their entirety by this notice. The Corporation assumes no obligation to update forward-looking information should circumstances or management’s estimates or opinions change.