Powertech Closes Second Strategic Investment by Synatom

VANCOUVER, BRITISH COLUMBIA and BRUSSELS, BELGIUM--(Marketwire -
February 12, 2009) - POWERTECH URANIUM CORP. ("Powertech" or the
"Company") (TSX: PWE)(FRANKFURT: P8A) and SOCIETE BELGE DE
COMBUSTIBLES NUCLEAIRES SYNATOM SA ("Synatom") are pleased to
announce that they have closed the private placement transaction (the
"Private Placement") disclosed in the Company's news release of
December 22, 2008 and approved by a majority of the Company's
disinterested shareholders at a special meeting held on February 5,
2009.
 
Pursuant to the terms of the Private Placement, the Company has
issued a secured convertible debenture (the "Debenture") to Synatom
in the principal amount of Cdn.$9 million. Concurrent with the
closing of the Private Placement, the Cdn.$2.5 million bridge loan
made by Synatom to the Company on December 19, 2008, as disclosed in
the Company's news release dated December 22, 2008 (the "Bridge
Loan"), was repaid. The Company intends to use the net proceeds for
working capital and to advance its mineral properties towards
production.
 
Terms of the Convertible Debenture:
 
The Debenture bears interest at the rate of 7% per annum, compounded
annually and will mature on February 11, 2012. The principal of the
Debenture and accrued interest thereon is convertible into the
Company's common shares (the "Common Shares") at a fixed conversion
price of $0.50 per Common Share (the "Conversion Price"). The
Debenture may be converted:
 
(a) by the Company in the event that the Company has obtained all of
the permits required to construct and operate either the Centennial
or the Dewey-Burdock project; or
 
(b) by Synatom at any time, provided that each conversion shall be a
minimum of $100,000 of the principal amount of the Debenture, until
(i) repayment in full by the Company of any outstanding principal and
interest outstanding on the Debenture, or (ii) conversion upon the
request of the Company pursuant to (a) above.
 
Repayment of the Debenture will be secured by all of the security
granted by the Company and its subsidiaries in connection with the
Bridge Loan.
 
Anti Dilution and Governance Rights:
 
The Conversion Price and the number of Common Shares issuable upon
conversion of the Debenture are subject to customary anti-dilution
adjustments in the event of a subdivision, consolidation or
reclassification of the common shares or the issuance of Common
Shares to shareholders as a stock dividend.
 
The Company has also agreed not to take certain corporate actions
without the consent of Synatom until the earlier of: (i) the
conversion of the entire Debenture into Common Shares in accordance
with the terms and conditions of the Debenture; and (ii) the Maturity
Date. These negative covenants are in addition to, and not in
substitution of, the negative covenants of the Company agreed to in
connection with the private placement in June, 2008.
 
Effect of the Private Placement on Synatom's Interest in the Company
 
As of the completion of the Private Placement, Synatom holds
10,890,000 Common Shares (representing a 19.6% interest in the
Company, calculated on a non-diluted basis), warrants to acquire a
further 12,000,000 Common Shares (exercisable at Cdn.$2.00 per Common
Share) and the Debenture, which, in the aggregate, represent an
approximately 47.9% interest in Company, calculated on a
fully-diluted basis (not including any Common Shares that may be
issued for repayment of accrued interest on the Debenture).
 
The Debenture was acquired by Synatom as a strategic investment and
for investment purposes. Synatom may increase or decrease its
investment from time to time, depending on market conditions or any
other relevant factors.
 
About Societe Belge de Combustibles Nucleaires Synatom SA
 
Synatom is subsidiary of Electrabel (www.electrabel.com), a leading
European energy company which has become the largest power company in
the Benelux market with a generating capacity of more than 30,000 MW.
Electrabel is 100% owned by GDF Suez an international industrial and
services group (www.gdfsuez.com). Synatom manages the fuel cycle for
the Belgian nuclear power plants, including:
 
- the fuel cycle front-end management, i.e., the supply with enriched
uranium of the seven nuclear power units with an annual production of
around 45 TWh; and
 
- the fuel cycle back-end management, i.e., the management of all
activities in connection with spent nuclear fuel.
 
In addition, Synatom manages the reserves for the costs related to
spent fuel and the future dismantling of nuclear power plants.
Synatom's 2007 turnover amounted to 355.162 million Euros. For more
information, please visit www.synatom.com.
 
About Powertech Uranium Corp.
 
Powertech Uranium Corp. is a mineral exploration and development
company that, through its Denver-based subsidiary Powertech (USA),
Inc., holds the Dewey-Burdock Uranium Deposit in South Dakota, the
Centennial Project in Colorado and the Dewey Terrace and Aladdin
Projects in Wyoming. The company's key personnel have over 200 years
of experience in the uranium industry throughout the United States,
and have permitted more than a dozen in-situ operations for
production. For more information, please visit
www.powertechuranium.com.
 
POWERTECH URANIUM CORP.
 
Richard F. Clement Jr., President& CEO
 
SOCIETE BELGE DE COMBUSTIBLES NUCLEAIRES SYNATOM SA
 
Robert Leclere, Chief Executive Officer
 
The TSX has not reviewed and does not accept responsibility for the
adequacy or accuracy of the content of this news release.
 
Contacts:
Powertech Uranium Corp.
Thomas A. Doyle
CFO, VP Finance
(604) 685-9181
Email: info@powertechuranium.com
Website: www.powertechuranium.com
 
Societe Belge de Combustibles Nucleaires Synatom SA
Robert Leclere
CEO
+32.2.505.0701
Email: robert.leclere@synatom.com
Website: www.synatom.com
 
This announcement was originally distributed by Hugin. The issuer is 
solely responsible for the content of this announcement.