Macusani Yellowcake Announces Additional High Grade Intersections at Kihitian Uranium Property, Peru

TORONTO, ONTARIO -- (Marketwire) -- 12/21/10 -- Macusani Yellowcake Inc. (the 'Company') (TSX VENTURE: YEL)(FRANKFURT: QG1) is pleased to announce that drilling from the ongoing exploration program on Chilcuno zone on the Kihitian uranium property on the Macusani Plateau, Peru, has intersected shallow, high-grade uranium values with intersections ranging from 4.0 to 7.0 metres with weighted average grades ranging from 0.068% U3O8 (1.357 lbs/ton) up to 0.229% U3O8 (4.583 lbs/ton). Details are shown in the table below.

The latest intercepts are interpreted as possible extensions of the previous drill holes (see September 30, 2010 and November 26, 2010 press releases) and adit channel results (see January 13, 2010 press release).

  KIHITIAN - CHICUNO ZONE
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                     From        To      Intersection      Grade       Grade
               -------------------------------------------------------------
                      (m)       (m)               (m)      (ppm)   (lbs/ton)
  PT-CH9-TSW        25.00     53.00             28.00        618       1.236
  including         26.00     33.00              7.00       2236       4.472
                    58.00     60.00              2.00         42       0.084
----------------------------------------------------------------------------

----------------------------------------------------------------------------
                     From        To      Intersection      Grade       Grade
               -------------------------------------------------------------
                      (m)       (m)               (m)      (ppm)   (lbs/ton)
  PT-CH8-TV         45.00     51.00              6.00       1535       3.070
  including         47.00     51.00              4.00       2291       4.582
                    69.00     72.00              3.00         21       0.042
----------------------------------------------------------------------------

----------------------------------------------------------------------------
                     From        To      Intersection      Grade       Grade
               -------------------------------------------------------------
                      (m)       (m)               (m)      (ppm)   (lbs/ton)
  PT-CH3-TSE        25.00     45.00             20.00        299       0.598
  including         25.00     32.00              7.00        679       1.358
                    48.00     50.00              2.00         25       0.050
----------------------------------------------------------------------------

The drill program was designed to test for continuity and grade of the uranium mineralization within a shallow, sub-horizontal, 5 to 25 metre thick horizon (A level) of rhyollitic flows and minor pyroclastic sequences hosting 'mantos', fracture-filling, vertical joints and disseminated autunite, meta-autunite and weeksite. A similar but generally thicker horizon (B level) occurs approximately 75-100 metres lower stratigraphically, which has been intercepted to date in two boreholes, one with very high-grade U mineralization (see November 26, 2010 press release citing 7m grading 36lbs/t U3O8 as part of a 65m thick continuously mineralized interval).

The shallow 'manto' mineralization, which is usually sub-horizontal, was discovered and initially explored through adits by IPEN in early 1980's and it usually dips between horizontal to 10-12 degrees.

The present drilling at Kihitian is part of a 20 platform plan. The three boreholes reported in this press release were drilled on platforms 3, 8 and 9, located south of the adits dug by IPEN in 1980's along a radiometric anomaly that runs on a southwest-northeast trend. The distance covered by these boreholes from the first adits is between 100m, 150m and almost 200m towards south of the main exposed adits.

The Company's CEO, Peter Hooper, stated, 'These results appear to be an extension of the shallow, upper high grade zone originally tested with adit development. The current drill program will also continue to test two deeper zones. Based on the assay results to date, we remain optimistic that the Kihitian property will help to define the Macusani Plateau as a significant uranium district.'

Quality Control and Analytical Procedures

Core samples have been crushed and representative samples analysed for Uranium (U) abundance and a suite of 40 elements. The necessary analytical quality control and assurance has been completed by insertion of reference material, duplicate samples and blank material. After crushing, the core is placed in sealed bags and shipped to the CIMM's preparation laboratories in Juliaca. Following the preparation stage, the sample pulps are sent to CIMM analytical laboratory in Lima where U and a suite of forty other elements are analysed using ICP-MS methodology.

CIMM Peru is an ISO certified assay laboratory. The program is designed to include a comprehensive assay quality control routine comprising the systematic use of standards, blanks and field duplicate samples. Secondary laboratories are used for check assaying.

Qualified Person

Mr. Ian Foreman, P.Geo., of Foremost Geological Consulting, an independent consultant to the Company, is a Qualified Person as defined under National Instrument 43-101, and has reviewed the scientific and technical data contained in this release.

About Macusani Yellowcake

Macusani Yellowcake Inc. is a Canadian uranium exploration company with over 24,000 hectares (240 km2) of mineral properties in south-eastern Peru, on the Macusani Plateau. The shares are traded on the TSX Venture Exchange under the symbol 'YEL' and on the Frankfurt Exchange under the symbol 'QG1'. The Company owns a 99.5% interest in the Kihitian project.

There are 77,891,284 common shares of Macusani Yellowcake Inc. outstanding.

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This news release includes certain forward-looking statements concerning the future performance of Macusani's business, operations and financial performance and condition, as well as management's objectives, strategies, beliefs and intentions. Forward-looking statements are frequently identified by such words as 'may', 'will', 'plan', 'expect', 'anticipate', 'estimate', 'intend' and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, competitive risks and the availability of financing, as described in more detail in the Company's recent securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward-looking statements and Macusani cautions against placing undue reliance thereon. Neither Macusani nor its management assume any obligation to revise or update these forward-looking statements.

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:

Macusani Yellowcake Inc.

Peter Hooper

President

(416) 360-3402
peter@macyel.com
www.macyel.com