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Uranium One

Akbastau Mine

Akbastau is an operating in situ recovery uranium mine located on the No. 1, 3 and 4 Sites of the Budenovskoye Uranium Field in the southwestern part of the Chu-Sarysu basin in the Suzak region, South Kazakhstan province, approximately 400 km northwest of Shymkent and 200 km east of Kyzylorda, Kazakhstan.  The mine is owned by the Akbastau joint venture, a Kazakh registered joint stock company in which Uranium One has a 50% interest. The other 50% interest in Akbastau is owned by JSC NAC Kazatomprom, Kazakhstan’s state-owned company responsible for the mining and exporting of uranium.

Production

Pilot production at the Akbastau mine commenced on January 30, 2009 from the No. 1 Site and in October 2010 from the No. 3 Site.

Pursuant to the terms of its subsoil use contract, the current production capacity of the Akbastau Mine is 4,992,000 lbs U3O8 (1,920 t U) per year from the No. 1, 3 and 4 Sites of the Budenovskoye Uranium Field.

Uranium is extracted at the Akbastau mine using the in situ recovery method, and processed using ion exchange technology at the neighbouring Karatau processing facility.

Akbastau is currently producing from Sites No. 1 and 3 and plans to commence production from Site No. 4 following receipt of required regulatory approvals. Akbastau is adjacent to the Karatau mine, which is licensed to mine Site No. 2 within the southern subfield of the Budenovskoye Uranium Field.  Akbastau entered into a toll processing agreement with Karatau, under which all of the solutions mined at Akbastau are currently processed at Karatau.

Most recently, in 2012, Akbastau produced 3,126,400 lbs U3O8 (1,203 t U) of which 1,563,200 lbs U3O8 (601 t U) was attributable to Uranium One.

Mineral Resources and Mineral Reserves

The following table sets out the mineral resource and mineral reserve estimates for the Akbastau mine as of June 30, 2013.

AKBASTAU MINE - No 1

(as of June 30, 2013)

Ore

(000s tonnes)

Grade

(% U)

Tonnes U

Grade (%U3O8)

U3O8

(M lbs)

Reserves

100%

100%

50%

100%

50%

Proven

33,223

0.042

13,881

6,940

0.049

36.09

18.04

Probable

5,479

0.056

3,049

1,524

0.066

7.93

3.96

Proven and Probable

38,712

0.044

16,930

8,464

0.052

44.02

22.00

Resources

Measured

20,090

0.081

16,278

8.139

0.096

42.32

21.16

Indicated

3,044

0.124

3,764

1,882

0.146

9.79

4.89

Measured and Indicated

23,134

0.087

20,042

10,021

0.102

52.11

26.05

Inferred

18,118

0.081

12,405

6,203

0.081

32.25

16.13


AKBASTAU MINE - No 3

(as of June 30, 2013)

Ore

(000s tonnes)

Grade

(% U)

Tonnes U

Grade (%U3O8)

U3O8

(M lbs)

Reserves

100%

100%

50%

100%

50%

Proven

21,393

0.035

7,423

3,712

0.041

19.30

9.65

Probable

16,071

0.045

7,245

3,622

0.053

18.84

9.42

Proven and Probable

37,464

0.039

14,668

7,334

0.046

38.14

19.07

Resources

Measured

12,247

0.076

9,270

4,635

0.089

24.10

12.05

Indicated

8,928

0.100

8,945

4,473

0.118

23.26

11.63

Measured and Indicated

21,175

0.086

18,215

9,108

0.101

47.36

23.68

Inferred

1,023

0.120

1,226

613

0.141

3.19

1.59


AKBASTAU MINE - No 4

(as of June 30, 2013)

Ore

(000s tonnes)

Grade

(% U)

Tonnes U

Grade (%U3O8)

U3O8

(M lbs)

Reserves

100%

100%

50%

100%

50%

Proven

-

-

-

-

--

-

-

Probable

-

-

-

-

-

-

-

Proven and Probable

-

-

-

-

-

-

-

Resources

Measured

5,912

0.110

6,497

3,249

0.130

16.89

8.45

Indicated

2,616

0.097

2,539

1,270

0.114

6.60

3.30

Measured and Indicated

8,528

0.106

9,036

4,519

0.125

23.49

11.75

Inferred

13,807

0.125

17,221

8,611

0.147

44.77

22.39


Notes:

(1)   Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.  Inferred Mineral Resources have a great amount of uncertainty as to their existence and as to their economic feasibility.  Under no circumstances can it be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher Mineral Resource category or converted to Mineral Reserves.

(2)   The foregoing Mineral Resource and Mineral Reserve estimates are taken from Uranium One’s Summary of Mineral Resources and Mineral Reserves at June 30th 2013 outlined in "Uranium One Announces a 5% Increase in Q3 2013 Production to 3.2 Million Pounds at an Average Total Cash Cost of $16 per Pound Sold" on November 4, 2013, and are subject to the methods, parameters, assumptions, qualifications and procedures which are set out in such document. For a complete description of such methods, parameters, assumptions, qualifications and procedures, reference should be made to the full text of the foregoing document, which is available for review on SEDAR under Uranium One’s profile located at the following website: www.sedar.com.  Mineral Resources and Mineral Reserves are reported in accordance with Definition Standards on Mineral Resources and Mineral Reserves adopted by the Council of the Canadian Institute of Mining, Metallurgy and Petroleum and National Instrument 43-101 – Standards of Disclosure for Mineral Projects promulgated by the Canadian Securities Administrators.

(3)   The second column for “Tonnes U” and “U3O8” represents the portion of total Mineral Reserves and/or Mineral Resources notionally attributable to Uranium One’s equity interest in the joint venture through which the property is owned in the percentage indicated in this column.