Mkuju River Tanzania

Uranium One's 51% shareholder, JSC Atomredmetzoloto ("ARMZ"), acquired Mantra Resources Ltd. ("Mantra") in June 2011. Pursuant to an Operating Agreement between Uranium One and ARMZ, Uranium One is currently the operator of Mantra's Mkuju River Project ("MRP"). The MRP is located in southern Tanzania, some 470 km southwest of Dar es Salaam. It comprises twenty contiguous tenements (granted licences, renewals and applications) covering an area of approximately 3,250 km. The area was identified as prospective for uranium during reconnaissance exploration undertaken between 1978 and 1982 by Uranerzbergbau GmbH.

The MRP lies within the Karoo Supergroup sediments of Permian to Jurassic age. The host stratigraphy is a series of sub-horizontal, very coarse, feldspathic, arkosic sandstones with minor inter-bedded claystones and siltstones. The sediments are interpreted to have been deposited within a braided fluviatile system.

Mineral Resources
 

Mkuju River Resources as of November 2010 (100% basis)

Notes:

• The above technical and scientific information concerning the Mkuju River Project is derived from the press release of Mantra Resources Limited ("Mantra") dated May 6, 2011 (the "Mantra Press Release"). The above information is based on information compiled by certain "Qualified Persons" (as defined under National Instrument 43-101) and is also based on assumptions, qualifications and procedures which are set out in the Mantra Press Release. For a complete description of the assumptions, qualifications and procedures associated with the above information, reference should be made to the full text of the Mantra Press Release which is available for review on SEDAR under Mantra's profile located at www.sedar.com.
• Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
• Mineral Resources are inclusive of Mineral Reserves.
• Columns and rows may not add correctly due to rounding.
   

Option Agreement

Uranium One has a call option to acquire Mantra from ARMZ for consideration equal to ARMZ's cost plus certain additional expenditures, exercisable for a period of 12 months from closing. ARMZ also has a put option to sell Mantra to Uranium One for the same consideration at the end of such 12 month period. The call option and the put option may be extended to 24 months if Uranium One partially exercises its call option and acquires 15% of Mantra for US $150 million before January 31, 2012. The call / put option to acquire the remaining 85% interest in Mantra (or 100% if the call option is not partially exercised) is subject to Uranium One minority shareholder approval.

Status

Prior to the acquisition by ARMZ, Mantra completed a definitive feasibility study with highlights shown below:
 

Definitive Feasibility Results May 2011

Notes:

• Information in the above table is taken from the Mantra Press Release which announced the completion of a Phase 1 feasibility study. The Mantra Press Release contains information based on scientific and technical information compiled by certain "Qualified Persons" (as defined under National Instrument 43-101) and sets out certain relevant assumptions, qualifications and procedures. For complete description of the assumptions, qualifications and procedures associated with the above information, reference should be made to the full text of the Mantra Press Release which is available for review under Mantra's profile located at www.sedar.com