CUE Cue Resources Ltd.

Cue Resources Ltd. (TSX VENTURE: CUE) (the "Company") has completed an aquifer (pump) test in the centre of the San Antonio deposit located on the Company's 100% owned Yuty uranium project in south-eastern Paraguay. It was carried out by Hydro-Engineering of Casper, Wyoming, and consisted of testing five wells to dimensionalize aquifer properties as well as expected recovery and injection rates. Results of the test program will be published when received and reviewed by Cue.

Previous laboratory testing of cores (see press release May 17, 2009) has indicated permeabilities to be within the range of existing commercial ISR operations.

"The pump test is a critical component to determining and understanding the hydro-geological characteristics of the project for the In-Situ Recovery Mining process," stated Robert Tyson, president and chief executive officer. "It is viewed by institutional investors, analysts and industry peers as a major step in advancing the Yuty project towards production."

Cue is currently drilling on the San Miguel zone located on the company's 100-per-cent-owned Yuty uranium project in southeastern Paraguay. Mineralization occurs within a sandstone unit (San Miguel formation) up to 16 m thick, and is associated with a redox front similar to the resource delineated at San Antonio.

San Antonio Deposit

The San Antonio Deposit consists of a current NI 43-101 compliant resource, Indicated, 9.0M tonnes @ 0.042% eU3O8 containing 8.3M lbs eU3O8 and an Inferred Resource of 1.1M tonnes @ 0.050% eU3O8 containing 1.2M lbs eU3O8. Column leach tests have demonstrated recovery of up to 86% of the contained uranium from cores taken from San Antonio.

About Cue Resources

Cue Resources Ltd. is focused on developing the Yuty Uranium District in south-eastern Paraguay. For detailed information, please see the Cue web site at http://www.cue-resources.com.

Chris M. Healey, P.Geo, a director of Cue, is the Qualified Person responsible for the technical content of this release.

On behalf of the Board of Directors

Robert S. Tyson, President and Chief Executive Officer

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contacts: Nicola Street Capital Inc. Mark Prosser Investor Relations 604-568-2080 604-684-2990 (FAX) mark@ns-cap.com