UrAsia Energy Ltd. Secures First Contract

URASIA ENERGY LTD. SECURES FIRST SALES CONTRACT

Vancouver, Canada, February 27, 2006 - Urasia Energy Ltd. ("Urasia") is pleased to announce it has entered into an agreement for the supply of uranium concentrates from its Akdala uranium mine in the Republic of Kazakhstan. The Company has a 70% interest in the Betpak Dala Joint Venture, which has a 100% interest in the Akdala uranium mine 'Akdala'.

Akdala is expected to reach full production of 2.6 million pounds U3O8 in 2006. The contract is for the purchase of approximately 200,000 pounds U3O8 for delivery in 2006 to a major Western utility company. As a new producer in the industry, from Central Asia, the Company is pleased to have finalised its first contract with a Western utility, and the first new contract since it acquired its interest in the Akdala uranium mine in November 2005.

Urasia Energy is a Canadian-based uranium producer that offers investors exposure to lowcost,uranium production and growth. The Company plans to create shareholder value by focusing on development and operation of low-cost, in-situ leach uranium projects in Central Asia.

Urasia is listed on the TSX Venture Exchange, trading under the symbol UUU.

On behalf of Urasia Energy Ltd.

"Phillip Shirvington"
President and Chief Executive Officer


For more information you can visit the Company's website at www.urasiaenergy.com or contact Investor Relations at 1-866-798-0824 or (604) 608-0824 or visit www.sedar.com.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. The foregoing information may contain forward- looking statements relating to the future performance of UrAsia Energy Ltd. Forward- looking statements, specifically those concerning future performance, are subject to certain risks and uncertainties, and actual results may differ materially. These risks and uncertainties are detailed from time to time in the Company's filings with the appropriate securities commissions.