Northwestern signs letter of intent to acquire uranium-vanadium mines in Utah

TORONTO, Sept. 29 /CNW/ - Northwestern Mineral Ventures Inc.          
(TSX-V: NWT; OTCBB: NWTMF) has signed a Letter of Intent to acquire 100%
ownership of two uranium-vanadium mines in the La Sal uranium district in
southeastern Utah from GeoXplor Corp. The Firefly and Gray Daun Mines,
collectively called the "Firefly Project," are past producers that ceased
operations when production was no longer economic owing to world uranium
prices. The current global interest in nuclear power has resulted in a
substantial increase in the price of uranium, which could make these deposits
economically viable once more.
"Firefly is a highly prospective property that augments our portfolio of
quality uranium prospects," said Kabir Ahmed, President and CEO of
Northwestern. "Of additional interest is that La Sal deposits are known to
contain substantial amounts of vanadium, and the price of vanadium has been
rising in recent years because of increasing demand. We expect our acquisition
of the Firefly Project will enable Northwestern to capitalize on commodity
prices that are currently near historic highs."
The Firefly Project contains 39 mineral claims covering 315 hectares    
(780 acres), including the Firefly and Gray Daun Mines as well as additional
areas designated by the US Geological Survey as "favorable" for uranium
mineralization. Located approximately 370 kilometers (230 miles) southeast of
Salt Lake City, the claims have a similar stratigraphy to Colorado Plateau
type deposits, one of the principal sources of uranium in the United States.
The property is widely accessible via a network of drill access roads and a
power line runs past the main adit to the Firefly Mine, where 365 meters
(1,200 feet) of mine workings remain. There is also a uranium-vanadium
processing plant approximately 160 kilometers (100 miles) south of the
property.
Mining began at Firefly in 1953 and continued through to the late 1970s.
The ore produced at the Firefly Mine contained 0.35% U3O8 and 2.04% V2O5. It
is important to note that the current world average ore grade for uranium is
0.15% U3O8. Production was halted when operations were no longer economic
owing to world uranium prices, according to the overview report on the Firefly
Mine prepared by J.H. Montgomery, Ph.D., P.Eng., and dated August 15, 2005.
Today, uranium is selling at a 24-year high, according to the World Nuclear
Association, given a renewed worldwide interest in nuclear power and dwindling
supplies of the in-demand commodity.
Vanadium is a rare, soft and ductile element found combined in about 65
different minerals and used mainly to produce certain alloys. Vanadium-
strengthened steel alloys are used in axles, crankshafts, gears, and other
critical components. It also has nuclear applications.
Under the terms of the Letter of Intent, Northwestern will pay
US$5,100,000 to acquire the Firefly Project from GeoXplor. An initial payment
of US$100,000 is due upon execution of a Formal Agreement incorporating the
terms of the Letter of Intent. Northwestern will make an additional payment of
US$5,000,000 to GeoXplor once a decision is made to commence production on the
Firefly Project or on July 31, 2011, whichever is earlier. In addition,
GeoXplor will receive 300,000 common shares from Northwestern's treasury to be
released on or prior to the first, second and third anniversaries of the
Execution Date of the Formal Agreement, which will incorporate the terms of
the Letter of Intent. These shares will be subject to any applicable
regulatory hold periods. GeoXplor is also entitled to a 2% net smelter royalty
on the production of uranium and vanadium from the Firefly Project.
Northwestern has agreed to spend a minimum of US$700,000 on the Firefly
Project on or prior to the third anniversary of the Execution Date. Ashworth
Explorations Ltd. will act as operator of the Firefly Project until the second
anniversary of the Execution Date, at which time Northwestern becomes the
operator.
The Letter of Intent is subject to regulatory approval, due diligence and
environmental assessment. Other terms of the agreement were not released.
J.H. Montgomery, Ph.D., P.Eng., a qualified person as defined by National
Instrument 43-101, is responsible for the preparation of technical information
in this news release. The technical information is from an August 15, 2005,
property overview report, authored by Dr. Montgomery.
Given the significant potential that this property is believed to offer,
Northwestern has decided not to proceed further with its Longtom claim in
Canada's Northwest Territories. As such, the September 23, 2003 Option
Agreement between Fronteer Development Group Inc. (TSX: FRG) and Northwestern
has been mutually cancelled. There were no financial penalties in association
with this cancellation.

ABOUT NORTHWESTERN:
Northwestern Mineral Ventures (www.northwestmineral.com) is an emerging
international exploration company with an experienced management team. The
company is focused on properties with potential uranium and silver-gold
targets and currently has interests in the United States and Mexico.
Northwestern is listed on the NASD Bulletin Board under the symbol "NWTMF" and
the TSX Venture Exchange under the symbol "NWT."

The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this news release.

This news release includes certain "forward looking statements" within
the meaning of the United States Private Securities Litigation Reform Act of
1995. Without limitation, statements regarding potential mineralization and
resources, exploration results, and future plans and objectives of the Company
are forward looking statements that involve various degrees of risk. The
following are important factors that could cause the Company's actual results
to differ materially from those expressed or implied by such forward looking
statements: changes in the world wide price of mineral commodities, general
market conditions, risks inherent in mineral exploration, risks associated
with development, construction and mining operations, the uncertainty of
future profitability and the uncertainty of access to additional capital.