Announces Up To $7 Million Private Placement with Blackmont Capital and CIBC World Markets as agents.



September 29 2005 – Purepoint Uranium Group Inc. (TSX-V:PTU) has announced an agreement to raise $5 million through a marketed brokered private placement offering of flow-through common shares on a best efforts agency basis. Blackmont Capital Inc. and CIBC World Markets Inc. will act as co-lead agents (the “Agents”) in the offering. Purepoint has granted the Agents an option exercisable at any time up to 48 hours prior to closing to increase the size of the offering to $7 million. Pricing of the flow-through common shares will be determined in the context of the market.

“We are extremely proud to be working with such a highly respected team as Blackmont Capital and CIBC World Markets,” said Chris Frostad, President and CEO, Purepoint Uranium Group Inc. “We will utilize the funding to further explore and develop our uranium properties in the Saskatchewan Athabasca Basin.”

This winter’s advanced program on the Turnor Lake and Red Willow projects will be one of the few drill programs this season carried out by a junior explorer in the Basin. In addition, this financing will allow Purepoint to advance its remaining 5 properties in preparation for drilling during the 2006-2007 session.

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 24 months, to purchase a number of common shares equal to 10% of the number of flow-through common shares 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.

Purepoint Uranium Corporation is a uranium exploration company driven by intellectual, precision prospecting focusing on distinct, targeted properties with historic significance in the Canadian Athabasca Basin. Currently, Purepoint’s seven, 100% owned, Athabasca Basin uranium projects cover nearly 120,000 hectares and are considered high prospect properties that include several near term targets that are drill ready for winter 2005/06.

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.