AGREEMENT EXECUTED COVERING OCTOBER URANIUM ORE STOCKPILE

Agreement Covering the October Uranium Ore Stockpile

The  Company  is  very  pleased  to  advise  that  it  has  entered  into  a  definitive  development  agreement covering  the  “October”  uranium  surface  ore  stockpile  in  western  Colorado,  with  unlisted  company Nuvemco  LLC  (“Nuvemco”),  which  holds  extensive  mineral  rights  over  uranium  properties  in  Colorado,  USA (the “October Agreement”).

The  October  stockpile  comprises  circa  10,000  tons  of  uranium  ore  that  was  mined prior to 1972  but never transported  to  a  processing  facility.  Previous  production  from  the  October  underground mines  comprised  more  than  50,000  tons  at average  grades  of  0.31%  U3O8  and  0.91%  V 2O5. 

The  average  grade  of  the October stockpile is  yet to be determined, but  is  expected  to  be  in  the  range  of 0.075% to 0.25% U3O8. Nuvemco LLC holds approved permits that allow for the removal of the entire October ore stockpile.

Extensive  Ablation  testwork  has  been undertaken  on  samples  from  the  October stockpile  during  the  past  few  months. These  samples  averaged  0.13%  U3O8  and 0.25% V2O5, however these grades may not be representative of the entire stockpile.

Importantly,  recoveries of  >90%  of  both  the  uranium  and  vanadium  into  a  fine-grained  “high-grade  ore”product were achieved with Ablation. Equally importantly, virtually all of the uranium  was removed  leaving a  coarse-grained,  “clean  sand”  product  after  Ablation.  Hence  it  is  anticipated  that  a  very  benign  coarsegrained product will result following remediation of the ore stockpile with Ablation.