Akdala Mine

Akdala is an operating in situ recovery uranium mine located in the Chu-Sarysu basin in the Suzak region, South Kazakhstan province, approximately 240 km north of Shymkent, Kazakhstan. The mine is owned by the Betpak Dala joint venture, a Kazakh registered limited liability partnership in which Uranium One has a 70% interest. The other 30% interest in Betpak Dala is owned by JSC NAC Kazatomprom, Kazakhstan’s state-owned company responsible for the mining and exporting of uranium.

Production

Commercial production at the Akdala mine commenced in January 2004, following a 2.25 year pilot-plant testing program conducted during the period from October 1, 2000 through to December 31, 2003.

Pursuant to the terms of its subsoil use contract, the current production capacity of the Akdala mine is 2,600,000 lbs U₃O₈ (1,000 t U) per year.

Uranium is extracted at the Akdala mine using the in situ recovery method, and processed using ion exchange technology at a processing facility on site.

Construction of a satellite plant to facilitate treatment of solutions from production blocks located approximately 15 kilometres to the east of the current central processing facilities in an area known as Letniy commenced in 2011. Construction of the satellite plant is scheduled for completion in 2013. Production from new well fields in the Letniy area is expected to commence by the end of 2012.

Most recently, in 2011, the Akdala mine produced 2,896,800 lbs U₃O₈ (1,114 t U) during 2011, of which 2,027,800 lbs U₃O₈ (780 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 Akdala mine as at December 31, 2011.

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 the report titled “Technical Report on the Akdala Uranium Mine, Kazakhstan” dated February 17, 2012 (as amended May 2, 2012) prepared for Uranium One by Roscoe Postle Associates Inc. and are subject to the methods, parameters, assumptions, qualifications and procedures which are set out in such report. For a complete description of such methods, parameters, assumptions, qualifications and procedures, reference should be made to the full text of the foregoing reports, 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.