exhibit10_1.htm


    
      

    

     

     

    
       

       877
North 8th West, Riverton, WY  82501, Ph: (307) 856-9271, Fx: (307)
857-3050, www.usnrg.com

      


      


      For
Immediate Release

      


      U.S.
ENERGY CORP. RETAINS SRK CONSULTING TO PREPARE RESOURCE ESTIMATE FOR LUCKY JACK
PROJECT

      


      NI
43-101 COMPLIANT ESTIMATE TO SUPPORT EXPANDED CAPITAL MARKETS
STRATEGY

      


      RIVERTON,
Wyoming – July 9, 2008 - U.S. Energy Corp. (NASDAQ Capital Market: “USEG”)
(“USE” or the “Company”), a natural resources exploration and development
company with interests in molybdenum, uranium, oil and gas, gold, and real
estate, today announced that it has retained Denver, Colorado-based SRK
Consulting to review historic drill hole and underground data for the purposes
of preparing an NI 43-101 compliant mineral resource estimate on the Company’s
Lucky Jack Molybdenum project located in Gunnison County, Colorado. The Company
intends to use the report as part of its application to the TSX Group for a
listing on the Toronto Stock Exchange (“TSX”).

      


      “Preparation
of a NI 43-101 compliant mineral resource estimate is another important step
forward in our objective to list on the TSX,” said Keith Larsen, Chief Executive
Officer of U.S. Energy Corp.  “We remain committed to advancing this
project as we continue to seek out potential partners with the added expertise
and resources to take it through the next phase of development.”

      


      To date,
more than $160 million has been spent on engineering, design, technical studies,
permitting and approximately 200,000 feet of core drilling.

      


      To
support its expanded capital market initiatives, the Company has also retained
the Equicom Group Inc., a leading provider of investor relations and related
corporate communication services in Canada.

      


      “We
recognize that the TSX is one of the preeminent resource exchanges in the
world,” said Mark Larsen, President of U. S. Energy Corp.  “Obtaining
a listing will allow us to access a broader minerals sector
audience.  Barring unforeseen delay, we expect to list on the TSX by
the end of October 2008 or sooner,” he added.

      


      


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            Press
Release

            July 8, 2008

            Page 2 of 3

          

        

      

      
 

      About
U.S. Energy Corp.

      


      U.S.
Energy Corp. is a diversified natural resource company with interests in
molybdenum, oil and gas, gold, and real estate.  The Company is
headquartered in Riverton, Wyoming, and its common stock is listed on The NASDAQ
Capital Market under the symbol “USEG”.

      


      


      Disclosure
Regarding Mineral Resources

      Under
SEC and Canadian Regulations;

      and
Forward-Looking Statements

      


      The
Company owns or may come to own stock in companies which are traded on foreign
exchanges, and may have agreements with some of these companies to acquire
and/or develop the Company’s mineral properties.  An example is Sutter
Gold Mining Inc.  These other companies are subject to the reporting
requirements of other jurisdictions.

      


      United
States residents are cautioned that some of the information available about our
mineral properties, which is reported by the other companies in foreign
jurisdictions, may be materially different from what the Company is permitted to
disclose in the United States.

      


      This
news release includes statements which may constitute “forward-looking”
statements, usually containing the words “believe,” “estimate,” “project,”
“expect," or similar expressions.  These statements are made pursuant
to the safe harbor provision of the Private Securities Litigation Reform Act of
1995.  Forward-looking statements inherently involve risks and
uncertainties that could cause actual results to differ materially from the
forward-looking statements.  Factors that would cause or contribute to
such differences include, but are not limited to, future trends in mineral
prices, the availability of capital, competitive factors, and other
risks.  By making these forward-looking statements, the Company
undertakes no obligation to update these statements for revision or changes
after the date of this release.

      


      For
further information on the differences between the reporting limitations of the
United States, compared to reports filed in foreign jurisdictions, and also
concerning forward-looking statements, please see the Company’s Form 10-K
(“Disclosure Regarding Forward-Looking Statements”; “Disclosure Regarding
Mineral Resources under SEC and Canadian Regulation”; and “Risk Factors”); and
similar disclosures in the Company’s Forms 10-Q.

      


      *
* * *

      


      For
further information, please contact:

      Keith
G. Larsen, CEO or Mark J. Larsen, President

      U.S.
Energy Corp. (307) 856-9271