DENVER, COLORADO--(MARKET WIRE)--Aug 19, 2008 -- American Uranium Corporation ("American" or the Company") (OTC BB:AUUM.OB - News) is pleased to announce that it has signed a Letter of Intent ("LOI") with Nu Star Exploration, LLC ("Nu Star") of Arizona. Pursuant to the LOI, American will have the right to lease Nu Star's claims with the option to purchase a 100% interest at any time following completion of the first Lease Year. The Parties plan to complete negotiation of a definitive Agreement during September 2008.

The Lease/Option properties consist of 449 federal mining claims contained in 5 blocks located in Mohave and Coconino Counties in northwestern Arizona. This region is highly prospective for breccias pipe uranium deposits and produced approximately 19 million lbs U3O8 during the 1980-90's.

Bob Rich, American's CEO, said, "The Nu Star properties are a valuable addition to American's US uranium exploration portfolio. Because I was involved with breccia pipe uranium deposits in the 1980's, when Energy Fuels was actively mining in the Arizona Strip, I am excited about our Company's first independent project being there and about the favorable prospects the Nu Star properties could hold for us."

AMERICAN URANIUM CORPORATION is a Nevada based uranium exploration and development company, and is committed to spending US $12.375 million to earn an initial 22.5% in the Wyoming Pine Tree-Reno Creek Project and US $33 million over the next 6 years to earn a 60% interest.

Legal Notice regarding Forward Looking Statements

Statements in this news release that are not historical are forward-looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "aims", "potential", "goal", "objective", "prospective", and similar expressions, or that events or conditions "will", "would", "may", "can", "could" or "should" occur. Information inferred from the interpretation of drilling results and information concerning mineral resource estimates may also be deemed to be forward looking statements, as it constitutes a prediction of what might be found to be present when and if a project is actually developed. Forward-looking statements in this news release include: that the Parties plan on reaching a Definitive Agreement during September 2008, the region is highly prospective, there is excellent potential for discovery on the Nu Star claims, and that the Company will be able to raise the necessary capital to meet its earn-in on the Wyoming Pine Tree-Reno Creek Project.

It is important to note that the Company's actual outcomes may differ materially from those statements contained in this press release. Factors which may delay or prevent these forward looking statements from being realized include misinterpretation of data; that we may not be able to keep our qualified personnel; that funds expected to be received may not be; that our estimates of mineral resources are inaccurate; uncertainties involved in the interpretation of drilling results and other tests and the estimation of resources; that we may not be able to get equipment or labor as we need it; that we may not be able to raise sufficient funds to complete our intended exploration, purchase, lease or option payments; that our applications to drill may be denied; that weather, logistical problems or hazards may prevent us from exploration; that analysis of data cannot be done accurately and at depth; that results which we have found in any particular location are not necessarily indicative of larger areas of our property; and that despite encouraging data there may be no commercially exploitable mineralization on our properties. Readers should refer to the risk disclosures outlined in the Company's most recent Form 10-KSB and other periodic reports filed from time to time with the Securities and Exchange Commission.

     Contacts:
     American Uranium Corporation
     Raymond Foucault
     Investor Relations
     (303) 634-2265
     Website: http://www.americanuraniumcorp.com