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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>0000101594-08-000019.txt : 20080225
<SEC-HEADER>0000101594-08-000019.hdr.sgml : 20080225
<ACCEPTANCE-DATETIME>20080225163811
ACCESSION NUMBER:		0000101594-08-000019
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20080225
ITEM INFORMATION:		Other Events
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20080225
DATE AS OF CHANGE:		20080225

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			US ENERGY CORP
		CENTRAL INDEX KEY:			0000101594
		STANDARD INDUSTRIAL CLASSIFICATION:	METAL MINING [1000]
		IRS NUMBER:				830205516
		STATE OF INCORPORATION:			WY
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-06814
		FILM NUMBER:		08639869

	BUSINESS ADDRESS:	
		STREET 1:		877 NORTH 8TH WEST
		STREET 2:		GLEN L LARSEN BLDG
		CITY:			RIVERTON
		STATE:			WY
		ZIP:			82501
		BUSINESS PHONE:		3078569271

	MAIL ADDRESS:	
		STREET 1:		877 NORTH 8TH WEST
		CITY:			RIVERTON
		STATE:			WY
		ZIP:			82501

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	WESTERN STATES MINING INC
		DATE OF NAME CHANGE:	19851229
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>form8_k.htm
<DESCRIPTION>FORM 8-K LUCKY JACK TESTS
<TEXT>
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    <div>&#160;</div>
    <div>&#160;</div>
    <div>
      <div style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold">UNITED STATES</font></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.1in 0pt 0in; TEXT-ALIGN: center; mso-outline-level: 1" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="3">SECURITIES AND EXCHANGE COMMISSION</font></font></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.1in 0pt 0in; TEXT-ALIGN: center" align="center">&#160;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.1in 0pt 0in; TEXT-ALIGN: center; mso-outline-level: 1" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Washington, D.C.
20549</font></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.1in 0pt 0in; TEXT-ALIGN: center" align="center">&#160;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.1in 0pt 0in; TEXT-ALIGN: center; mso-outline-level: 1" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="3">FORM
8-K </font></font></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.1in 0pt 0in; TEXT-ALIGN: center" align="center">&#160;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.1in 0pt 0in; TEXT-ALIGN: center; mso-outline-level: 1" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="3">CURRENT REPORT</font></font></div>
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      <div>&#160;</div>
      <div style="MARGIN: 0in 0.1in 0pt 0in; TEXT-ALIGN: center; mso-outline-level: 1" align="center">Pursuant to Section 13 or 15(d) of the</div>
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      <div>&#160;</div>
      <div style="MARGIN: 0in 0.1in 0pt 0in; mso-outline-level: 1">Date of Report
(date of earliest event reported): February 25, 2008 (February 25, 2008)</div>
      <div>&#160;</div>
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              <div style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align="center">(State
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              <div style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align="center">(Commission File No.)</div>
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              <div style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align="center">Identification No.)</div>
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              <div style="MARGIN: 0in 0in 0pt">&#160;</div>
              <div>&#160;</div>
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            <td valign="top" width="23%" bgcolor="transparent" style="BORDER-RIGHT: #ece9d8; PADDING-RIGHT: 0in; BORDER-TOP: #ece9d8; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; BORDER-LEFT: #ece9d8; WIDTH: 23%; PADDING-TOP: 0in; BORDER-BOTTOM: #ece9d8">
              <div style="MARGIN: 0in 0in 0pt">&#160;</div>
              <div>&#160;</div>
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              <div style="MARGIN: 0in 0in 0pt">&#160;</div>
              <div>&#160;</div>
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              <div style="MARGIN: 0in 0in 0pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Glen L. Larsen
      Building</font></div>
              <div>&#160;</div>
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              <div style="MARGIN: 0in 0in 0pt">&#160;</div>
              <div>&#160;</div>
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            <td valign="top" width="26%" bgcolor="transparent" style="BORDER-RIGHT: #ece9d8; PADDING-RIGHT: 0in; BORDER-TOP: #ece9d8; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; BORDER-LEFT: #ece9d8; WIDTH: 26%; PADDING-TOP: 0in; BORDER-BOTTOM: #ece9d8">
              <div style="MARGIN: 0in 0in 0pt">&#160;</div>
              <div>&#160;</div>
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              <div style="MARGIN: 0in 0in 0pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">877 North 8<font style="FONT-SIZE: 70%; VERTICAL-ALIGN: super">th</font> West</font></div>
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              <div style="MARGIN: 0in 0in 0pt">(Address of principal executive
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              <div>&#160;</div>
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              <div style="MARGIN: 0in 0in 0pt">&#160;</div>
              <div>&#160;</div>
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            <td valign="top" width="26%" bgcolor="transparent" style="BORDER-RIGHT: #ece9d8; PADDING-RIGHT: 0in; BORDER-TOP: #ece9d8; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; BORDER-LEFT: #ece9d8; WIDTH: 26%; PADDING-TOP: 0in; BORDER-BOTTOM: #ece9d8">
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              <div style="MARGIN: 0in 0in 0pt">&#160;</div>
              <div>&#160;</div>
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            <td valign="top" width="23%" bgcolor="transparent" style="BORDER-RIGHT: #ece9d8; PADDING-RIGHT: 0in; BORDER-TOP: #ece9d8; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; BORDER-LEFT: #ece9d8; WIDTH: 23%; PADDING-TOP: 0in; BORDER-BOTTOM: #ece9d8">
              <div style="MARGIN: 0in 0in 0pt">&#160;</div>
              <div>&#160;</div>
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            <td valign="top" width="26%" bgcolor="transparent" style="BORDER-RIGHT: #ece9d8; PADDING-RIGHT: 0in; BORDER-TOP: #ece9d8; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; BORDER-LEFT: #ece9d8; WIDTH: 26%; PADDING-TOP: 0in; BORDER-BOTTOM: #ece9d8">
              <div style="MARGIN: 0in 0in 0pt">&#160;</div>
              <div>&#160;</div>
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              <div style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align="center">Registrant's telephone number, including area code: <font style="DISPLAY: inline; FONT-WEIGHT: bold">(307) 856-9271</font></div>
              <div>&#160;</div>
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      <div>&#160;</div>
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            <td valign="top" width="100%" bgcolor="transparent" style="BORDER-RIGHT: #ece9d8; PADDING-RIGHT: 0in; BORDER-TOP: #ece9d8; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; BORDER-LEFT: #ece9d8; WIDTH: 100%; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid; MSO-BORDER-BOTTOM-ALT: solid black .75pt">
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              <div>&#160;</div>
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      Name, Former Address or Former Fiscal Year,, </div>
              <div>&#160;</div>
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      Changed From Last Report)</div>
              <div>&#160;</div>
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      <div style="MARGIN: 0in 0in 0pt">&#160;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt">Check the appropriate box below if the Form 8-K
filing is intended to simultaneously satisfy the filing obligation of the
registrant under any of the following provisions (see General Instruction
A.2):</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align="center">&#160;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt">&#160;Written communications pursuant to Rule
425 under the Securities Act</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt">&#160;Soliciting material pursuant to Rule
14a-12 under the Exchange Act</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt">&#160;Pre-commencement communications pursuant
to Rule 14d-2(b) under the Exchange Act</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt">&#160;Pre-commencement communications pursuant
to Rule 13e-4(c) under the Exchange Act</div>
      <div>&#160;</div><br clear="all">
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      <div>&#160;</div>
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      <div>&#160;</div>
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      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt">&#160;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt; mso-outline-level: 1"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Section 8: Other Events</font></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt; mso-outline-level: 1">&#160;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt 27pt; tab-stops: 81.0pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Item 8.01.
&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Results of </font><font style="DISPLAY: inline; FONT-WEIGHT: bold">Metallurgical Tests at Luck Jack
Project</font></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt 0.25in">&#160;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt 27pt; TEXT-ALIGN: justify">On February 25, 2008
the registrant issued a press release concerning metallurgical test results at
its Lucky Jack molybdenum deposit. </div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt">&#160;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt; mso-outline-level: 1"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Section 9. Financial Statements and
Exhibits</font>. </div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt; mso-outline-level: 1">&#160;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt; mso-outline-level: 1; tab-stops: 27.0pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
10.1&#160;&#160;&#160;&#160;&#160;&#160;&#160; Press release dated February 25,
2008</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt">&#160;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align="center">&#160;</div>
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      <div style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center; mso-outline-level: 1" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold">SIGNATURES</font></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt">&#160;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt">Pursuant to the requirements of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned hereunto duly authorized.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt">&#160;</div>
      <div>&#160;</div>
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              <div>&#160;</div>
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              <div>&#160;</div>
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              <div>&#160;</div>
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              <div style="MARGIN: 0in 0in 0pt">Dated: February 25, 2008</div>
              <div>&#160;</div>
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              <div style="MARGIN: 0in 0in 0pt">By:</div>
              <div>&#160;</div>
            </td>
            <td valign="top" width="39%" bgcolor="transparent" style="BORDER-RIGHT: #ece9d8; PADDING-RIGHT: 0in; BORDER-TOP: #ece9d8; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; BORDER-LEFT: #ece9d8; WIDTH: 39%; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid; MSO-BORDER-BOTTOM-ALT: solid black .75pt">
              <div style="MARGIN: 0in 0in 0pt">/s/ Keith G. Larsen</div>
              <div>&#160;</div>
            </td>
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              <div>&#160;</div>
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              <div style="MARGIN: 0in 0in 0pt">Keith G. Larsen, CEO </div>
              <div>&#160;</div>
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<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>exhibit10.htm
<DESCRIPTION>2-25-08 PRESS RELEASE
<TEXT>
<html>
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    <div>&#160;</div>
    <div>&#160;</div>
    <div><font size="3">For Immediate Release</font></div>
    <div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt">&#160;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align="center">&#160;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align="center">&#160;</div>
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      <div style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 13pt; FONT-FAMILY: Times New Roman">Metallurgical
Tests Confirm Molybdenum Grade and Recovery Projections for Lucky Jack Project;
Non Acid Generating Tailing Produced</font></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align="center">&#160;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in; LINE-HEIGHT: 125%; TEXT-ALIGN: justify"><font size="3">RIVERTON, Wyoming (February 25, 2008) &#8212; U.S. Energy Corp. (&#8220;U.S. Energy&#8221;)
(NASDAQ: USEG) and its partner at the Lucky Jack Molybdenum Project, Kobex
Resources Ltd. (Kobex) (TSX-V: KBX), are pleased to provide the following update
on the Lucky Jack Molybdenum Project:</font></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt; LINE-HEIGHT: 125%; TEXT-ALIGN: justify">&#160;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in; LINE-HEIGHT: 125%; TEXT-ALIGN: justify"><font size="3">A preliminary laboratory metallurgical test program has been completed at
SGS-Lakefield Research on material from the Lucky Jack deposit.&#160; The test
program was conducted on historical core and reject samples from previous drill
programs conducted by Cyprus Amax.&#160; The program included locked cycle
testing which produced a molybdenum concentrates assaying between 45 and 50%
molybdenum at 86 to 90% molybdenum recovery from samples with a head grade of
0.30% molybdenum.&#160; This is in line with the historical projections by
Cyprus Amax.&#160; The developed process eliminates the use of cyanide which was
previously proposed and simplifies the overall reagent scheme.</font></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt; LINE-HEIGHT: 125%; TEXT-ALIGN: justify">&#160;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in; LINE-HEIGHT: 125%; TEXT-ALIGN: justify"><font size="3">The process also includes a step to remove pyrite by flotation following
molybdenum recovery.&#160; This processing addition removes the sulphide
minerals from the main tailings flow and was undertaken to produce final
tailings for surface storage having minimal environmental impact.&#160; A
tailings characterization program conducted by Golder Paste Tec is currently
underway.&#160; This program includes a study of paste backfill with the
objective of maximizing the placement of tailings underground as backfill to
fill the voids left by mining.&#160; Environmental analysis of the tailings
planned for surface storage produced by the locked cycle testing which
incorporated the pyrite flotation step has been completed by both SGS-Lakefield
Research and Golder Paste Tec.&#160; In both of these analyses the
neutralization potential ratio (NPR), which is the ratio of neutralization
potential (NP) to acid-generating potential (AP) was greater than 4.5 to
1.&#160; This is a strong indication the flotation tailings to be stored on
surface will not be acid generating.&#160; Industry accepted criteria classify a
material with NPR greater than 4 as having no potential for acid
generation.&#160; </font></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt; LINE-HEIGHT: 125%; TEXT-ALIGN: justify">&#160;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt; LINE-HEIGHT: 125%; TEXT-ALIGN: justify">&#160;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt; LINE-HEIGHT: 125%; TEXT-ALIGN: justify">&#160;</div>
      <div>&#160;</div>
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          <div style="WIDTH: 100%; TEXT-ALIGN: left" align="center">
            <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Press
Release</font></div>
            <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman">February
25, 2008</font></div>
            <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Page
2 of 3</font></div>
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      <div style="MARGIN: 0in 0in 0pt; LINE-HEIGHT: 125%; TEXT-ALIGN: justify">&#160;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in; LINE-HEIGHT: 125%; TEXT-ALIGN: justify"><font size="3">Maurice Tagami, COO of Kobex stated, &#8220;We are very pleased with the
results of the metallurgical test program.&#160; The ability to produce a high
quality molybdenum concentrate with reasonable recovery at the laboratory scale
is good news for the Project.&#160; The results of the pyrite flotation as part
of the process are extremely encouraging as we are committed to being able to
design a mine and process plant which will have minimal environmental
impact.&#160; A non-acid-generating tailings stream is another step towards this
goal.&#8221;</font></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt; LINE-HEIGHT: 125%; TEXT-ALIGN: justify">&#160;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in; LINE-HEIGHT: 125%; TEXT-ALIGN: justify"><font size="3">Kobex is also pleased to announce that its wholly-owned subsidiary, Kobex
Colorado Corporation, compiled an excellent safety record for 2007, with over
36,000 hours worked with no safety incidents or lost time accidents.&#160; &#8220;Our
Colorado-based Project, operations staff and contractors are to be commended for
their exemplary safety record in our first year of the development of the Lucky
Jack Project.&#160; Human health and safety is a top priority for our
organization.&#8221; stated Leo King, President of Kobex.</font></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify">&#160;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in; LINE-HEIGHT: 125%; TEXT-ALIGN: justify"><font size="3">Keith Larsen, Chairman and Chief Executive Officer of U.S. Energy, said,
&#8220;We continue to make significant progress toward demonstrating the operational
and environmental viability of the Lucky Jack Project.&#160; In the decades
since this deposit was discovered, technology has evolved to a point where there
is now potential for an economically feasible project, with all of the benefits
this will mean to the local communities and a way to virtually eliminate
acid-generating tailings which, historically, has been one of the most difficult
environmental problems associated with mining.&#160; In addition, we are pleased
with the safety record of Kobex.&#160; U.S. Energy and Kobex are committed to a
safe and healthy workplace.&#8221; </font></div>
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            <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Press
Release</font></div>
            <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman">February
25, 2008</font></div>
            <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Page&#160;3
of 3</font></div>
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      <div style="MARGIN: 0in 0in 0pt; LINE-HEIGHT: 125%; TEXT-ALIGN: justify">&#160;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.5in 0pt 37.05pt; TEXT-ALIGN: center; mso-pagination: none; mso-layout-grid-align: none" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="3">* * *
* * </font></font></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 33.45pt 0pt 37.05pt; TEXT-ALIGN: center; mso-pagination: none; mso-layout-grid-align: none" align="center">&#160;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.5in 0pt 37.05pt; TEXT-ALIGN: center; mso-pagination: none; mso-layout-grid-align: none" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold">ABOUT U.S. ENERGY
CORP. </font></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.25in; TEXT-ALIGN: center; mso-pagination: none; mso-layout-grid-align: none" align="center">&#160;</div>
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      <div style="MARGIN: 0in 0.5in 0pt 37.05pt; TEXT-ALIGN: center; mso-pagination: none; mso-layout-grid-align: none" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="DISPLAY: inline; FONT-STYLE: italic">Disclosure Regarding Mineral
Resources</font></font></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.5in 0pt 37.05pt; TEXT-ALIGN: center; mso-pagination: none; mso-layout-grid-align: none" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="DISPLAY: inline; FONT-STYLE: italic">Under SEC and Canadian Regulations;
</font></font></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.5in 0pt 37.05pt; TEXT-ALIGN: center; mso-pagination: none; mso-layout-grid-align: none" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="DISPLAY: inline; FONT-STYLE: italic">and Forward-Looking
Statements</font></font></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 34.8pt 0pt 37.05pt; TEXT-ALIGN: justify; mso-pagination: none; mso-layout-grid-align: none">&#160;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.5in 0pt 37.05pt; TEXT-INDENT: 0in; mso-pagination: none; mso-layout-grid-align: none"><font style="DISPLAY: inline; FONT-STYLE: italic">The Company owns or may come to own
stock in companies which are traded on foreign exchanges, and may have
agreements with some of these companies to acquire and/or develop the Company&#8217;s
mineral properties.&#160; Examples of these other companies are Sutter Gold
Mining Inc. and Kobex Resources Ltd.&#160; These other companies are subject to
the reporting requirements of other jurisdictions.&#160; </font></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.5in 0pt 37.05pt; TEXT-INDENT: 0in; mso-pagination: none; mso-layout-grid-align: none">&#160;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.5in 0pt 37.05pt; TEXT-INDENT: 0in; mso-pagination: none; mso-layout-grid-align: none"><font style="DISPLAY: inline; FONT-STYLE: italic">United States residents are
cautioned that some of the information available about our mineral properties,
which is reported by the other companies in foreign jurisdictions, may be
materially different from what the Company is permitted to disclose in the
United States.</font></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.5in 0pt 37.05pt; TEXT-INDENT: 0in; mso-pagination: none; mso-layout-grid-align: none">&#160;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.5in 0pt 37.05pt; TEXT-INDENT: 0in; mso-pagination: none; mso-layout-grid-align: none"><font style="DISPLAY: inline; FONT-STYLE: italic">This news release includes
statements which may constitute &#8220;forward-looking&#8221; statements, usually containing
the words &#8220;believe,&#8221; &#8220;estimate,&#8221; &#8220;project,&#8221; &#8220;expect," or similar
expressions.&#160; These statements are made pursuant to the safe harbor
provision of the Private Securities Litigation Reform Act of 1995.&#160;
Forward-looking statements inherently involve risks and uncertainties that could
cause actual results to differ materially from the forward-looking
statements.&#160; Factors that would cause or contribute to such differences
include, but are not limited to, future trends in mineral prices, the
availability of capital, competitive factors, and other risks.&#160; By making
these forward-looking statements, the Company undertakes no obligation to update
these statements for revision or changes after the date of this
release.</font></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.5in 0pt 37.05pt; TEXT-INDENT: 0in; mso-pagination: none; mso-layout-grid-align: none">&#160;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.5in 0pt 37.05pt"><font style="DISPLAY: inline; FONT-STYLE: italic">For further information on the
differences between the reporting limitations of the United States, compared to
reports filed in foreign jurisdictions, and also concerning forward-looking
statements, please see the Company&#8217;s Form 10-K (&#8220;Disclosure Regarding
Forward-Looking Statements&#8221;; &#8220;Disclosure Regarding Mineral Resources under SEC
and Canadian Regulation&#8221;; and &#8220;Risk Factors&#8221;); and similar disclosures in the
Company&#8217;s Forms 10-Q.</font></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.5in 0pt 37.05pt">&#160;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.5in 0pt 37.05pt; TEXT-ALIGN: center" align="center"><font style="DISPLAY: inline; FONT-STYLE: italic">* * *
*</font></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.5in 0pt 37.05pt; TEXT-ALIGN: center" align="center"><font style="DISPLAY: inline; FONT-STYLE: italic">For further
information, please contact:</font></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.5in 0pt 37.05pt; TEXT-ALIGN: center" align="center"><font style="DISPLAY: inline; FONT-STYLE: italic">Keith G. Larsen,
CEO or Mark J. Larsen, President</font></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.5in 0pt 37.05pt; TEXT-ALIGN: center" align="center"><font style="DISPLAY: inline; FONT-STYLE: italic">U.S. Energy Corp.
(307) 856-9271 </font></div>
      <div>&#160;</div>
    </div>
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