Akdala Mine

Akdala is an operating in situ recovery uranium mine located in the Suzak region of South Kazakhstan Oblast, approximately 240 km directly north of Shymkent, Kazakhstan. Commercial operations at Akdala commenced in January 2004, following a 2.25 year pilot-plant testing program.

Akdala is owned 100% by the Betpak-Dala Joint Venture, in which Uranium One has a 70% interest. The balance of the interest in the Betpak-Dala Joint Venture is owned by Kazatomprom, the Kazakh State uranium company.

Akdala is currently producing at a rate of 1,000 tonnes uranium (2,600,000 lbs U₃O₈) per year, with Uranium One's share of production being 700 tonnes uranium (1,800,000 lbs U₃O₈) per year.

Mineral Reserves and Resources

As at March 31, 2010 Akdala had the following reserve and resource estimates provided by Roscoe Postle Associates Inc. ("RPA"), now known as Scott Wilson RPA:

Table 1 - Akdala Reserves March 31, 2010

Reserve Category	Tonnage (tonnes)	Grade (% U)	Contained U (tonnes)	Contained U₃O₈ (million lbs)
Proven	6,277,600	0.047	2,959	7.7
Probable	1,177,400	0.049	521	1.4
Proven and Probable	7,455,000	0.047	3,480	9.1

Notes:

Mineral reserve estimate from the Akdala Report, as subsequently updated and revised by James W. Hendry, P. Eng. of RPA to take into consideration loss of mineral reserves due to production during the period July 1, 2005 to March 31, 2010 and any increase in mineral reserves due to the conversion of resources to reserves as the result of production drilling. Mineral reserves are based on 0.04m% (grade x thickness) cut-off per hole and 0.10m% per resource block.
RPA is of the opinion that the classification of mineral reserves as reported above meets the definitions of proven and probable mineral reserves as stated by NI 43-101 and defined by the CIM standards.
This mineral reserve estimate does not take into account production since March 31, 2010. For recent production levels, refer to Uranium One's quarterly Management Discussion and Analysis.
Proven mineral reserves include 90% of the pre-production measured mineral resources minus historical production.
Probable mineral reserves include 90% of the pre-production Indicated Mineral Resources.
Represents the portion of total reserves notionally attributable to Uranium One's 70% equity interest in the Betpak Dala Joint Venture.
Figures subject to rounding.

Table 2 - Akdala Resources March 31, 2010

Resource Category	Tonnage (tonnes)	Grade (% U)	Contained U (tonnes)	Contained U₃O₈ (million lbs)
Measured	6,277,600	0.057	3,578	9.3
Indicated	1,177,400	0.049	579	1.5
Measured & Indicated	7,455,000	0.056	4,157	10.8
Inferred	6,778,100	0.062	4,211	10.9

Notes

Mineral resource estimate from the Akdala Report, including mineral reserves, as subsequently updated and revised by Wayne W. Valliant, P. Geo. of RPA to take into consideration loss of mineral reserves due to production during the period July 1, 2005 to March 31, 2010. Mineral resource estimate is based on 0.04 m% (grade x thickness) cut-off per hole and 0.10m% per resource block.
RPA is of the opinion that the classification of mineral resources as reported above meets the definitions of measured, indicated and inferred mineral resources as stated by NI 43-101 and defined by the CIM standards.
Mineral resources are inclusive of mineral reserves.
Mineral resources that are not mineral reserves do not have demonstrated economic viability.
This mineral resource estimate does not take into account production since March 31, 2010. For recent production levels, refer to Uranium One's quarterly Management Discussion and Analysis.
Represents the portion of total resource notionally attributable to Uranium One's 70% equity interest in the Betpak Dala Joint Venture.
Figures subject to rounding.

Geology and Mineralization

The Akdala deposit is located in the Chu-Sarysu depression which represents a large Cretaceous age basin up to 250 km wide and which extends northward for more than 1,000 km from the foothills of the Tien Shan Mountains. The basin is underlain by folded Proterozoic and early Paleozoic formations which flank the basin. The Akdala property covers portions of a 45 km long mineralized trend and is underlain by Cretaceous to Cenozoic sediments, predominately sands, with occasional pebble and gravel layers, clay and loamy soils up to 190 m thick. The sediments are gently dipping to the southeast. The Jalpak horizon is host to the main body of mineralization and consists of fine- to medium-grained sands with inter-bedded dark grey clays and lignites.

The roll front uranium deposits, such as the Chu-Sarysu type above are sub-types of sandstone uranium deposits. Sandstone uranium deposits are generally confined to continental fluvial or marginal marine environments. The host lithologies at Akdala correspond to a sequence of mixed continental and marginal marine origin.

Mineralization on the Akdala licence occurs at depths varying between 136 metres to 190 metres over a distance of 25 kilometres. The Jalpak horizon hosts the two main deposits which contain over 90% of the resources at Akdala.

Operations

Uranium production at Akdala is by means of in situ recovery. Leaching solution is injected into the uranium bearing formation at maximum depths of about 220 metres through a series of injection wells, passes through uranium bearing material and is recovered through a series of extraction wells.

Uranium bearing solutions are pumped from the well fields into sedimentation ponds and onward to the processing plant where these solutions are passed through a series of 50 m³ ion exchange columns loaded with a uranium-selective resin. Uranium from the solutions is adsorbed onto the resin and these uranium-bearing resins are transferred to 100 m³ desorption columns where uranium is stripped from the resin using an ammonium nitrate solution.

Strip solution is treated on-site with sodium hydroxide to precipitate a wet yellowcake product. Excess fluids in the precipitate are removed in a filter press and the resultant wet yellowcake is shipped to a drying facility located at Uranium One's 70% owned South Inkai facility or to third party party processing and refining facilities.

At the end of 2010, Akdala had an average of 209 production wells in operation with an average flow rate of 1,677 m³ per hour and an average U concentration in the solution of 65 mg per litre. The number of wells in operation, and the flow from each well, is adjusted based on uranium content in the flow from each well to produce the targeted production rate.

An engineering company has been retained to design a satellite plant to facilitate treatment of solutions from production blocks located approximately 11 kilometres from the current facility. Construction of the new satellite plant is scheduled to commence in 2011 and the new production blocks are expected to commence production before the end of 2011.