June 29, 2010

Japanese demand. JUMI currently has an off-take agreement with UUU for 20% of its production beyond 2015.
We expect the Japanese to ultimately wish to retain supply regardless of the Russian deal outcome.
• Chinese demand. Cameco (CCO-T: C$23.53, Not Rated) announced on 24-Jun-10 that it had agreed to send
uranium to two Chinese nuclear power companies. It has been suggested that CCO would supply at least 23 MM
lbs of U3O8 to one of the buyers.
• Poor economics. Low uranium prices have led many investors to believe that several projects, particularly large
and low grade African projects, may not receive financing due to poor economics. We believe this to likely and
that higher prices are required just to maintain supply expectations.

Industrial Fuels and Power (blog),

29 June 2010

Ukraine wants to supply reactors with domestic uranium

Ukraine`s Deputy Fuel and Energy Minister Natalia Shumkova said that the country is seeking to
supply its nuclear reactors with uranium mined within its borders from 2015. It aims to expand uranium
production from a current 830tpa to 5000tpa in 2020 and to 6000tpa in 2030. Ukraine will need to invest
UAH9.9bn (US$1.25bn) in uranium production through 2013, she added.

Last week, the ministry announced a tender to build a uranium plant. In October, it will announce the
successful winner, Ms Shumkova said. Both Russia`s OAO Tvel and Toshiba Corp`s Westinghouse Electric
Corp have the experience to build the plant, she continued.

Yuriy Nedashkovskyi, president of state-owned nuclear power station operator DP NAEK Energoatom, said the
country plans to construct a third nuclear reactor at its Khmeinytskyi power plant by 2016 with a fourth to follow
one year later. The construction represents a value of UAH30.1bn (US$3.8bn). As a result of new units and
extending the lifespan of existing reactors by 15 years, the country`s nuclear capacity is expected to double by
2030.

Bloomberg: Ukraine seeks to supply reactors with its own uranium

Ukraine is seeking to supply its nuclear reactors with uranium mined in the country from 2015, Deputy
Fuel and Energy Minister Natalia Shumkova said.

Ukraine aims to increase uranium production to 5,000 metric tons a year in 2020 and 6,000 tons in 2030, from
830 tons, Shumkova said at a conference in Kiev today. The eastern European country needs to invest 9.9
billion hryvnia ($1.25 billion) in uranium output through 2013, she said.

The ministry this week announced a tender to build a uranium plant and will pick a winner by early October,
according to Shumkova. Russia`s OAO Tvel and Toshiba Corp.`s Westinghouse Electric Co. have the
experience to build the plant, she said.

Ukraine plans to construct a third nuclear reactor at its Khmelnytskyi power plant by 2016 and a fourth by
2017, Yuriy Nedashkovskyi, the president of DP NAEK Energoatom, Ukraine`s state-owned operator of
nuclear power stations, said at the same event. The construction is worth 30.1 billion hryvnia, he said.

The country`s nuclear capacity will double by 2030 by extending the lifespan of current reactors by 15 years
and by building new generators, Nedashkovskyi said.
Energoatom had first quarter net income of 380 million hryvnia, Nedashkovskyi said, without elaborating.
Ukrainian nuclear power plants will produce 87 billion kilowatt-hours of energy this year, he said.

Minister Boiko: Ukraine to review Energy Strategy fundamentally

Ukraine insists on obtaining controlling stake in creation of interstate joint ventures with
Russia in gas and nuclear industries, Fuel and Energy Minister Yuriy Boiko said this in
an interview with the Uryadovy Kuryer newspaper (Government Courier).

"Russia`s proposal is to establish joint venture on a parity basis. Not only in gas, but also in
nuclear industry. Our position is a control over strategic industries, respectively, the Ukrainian
side must have 51%," he said. Boiko also said that Ukraine`s energy strategy will be reviewed.
According to the minister, changes, in particular, will touch on the state`s attitude to pricing of
energy resources for the private sector. "The state is no longer able to act as protectionist of
private owners of enterprises. The era of cheap gas, similarly to cheap oil is over. The price of
gas for industry should be acceptable in terms of competitiveness of the final product," the
minister emphasized. Changes in the energy strategy will also touch on the production of
hydrocarbons offshore, the implementation of projects for the extraction of shale gas.
Tentatively, the projects will "start working" in 4 years. "These projects, coupled with reform of
the sector, will provide a cumulative effect that will enable to save the country from energy
dependence," Boiko noted. Ukraine also plans to increase oil and gas production at foreign
fields, he added. This is the production of at least 30 billion cubic meters of gas per year.
According to him, the commercial oil production has already started at the concession site of
Alam El Shawish Еаst in the Arab Republic of Egypt at 300 barrels per day. These volumes will
grow to 430 tons of crude oil by the end of the year. Naftogaz is exploring hydrocarbons in the
emirate of Al Fujairah in the United Arab Emirates, licenses for oil exploration are obtained in
Libya, while in Algeria a Ukrainian company was retrained by Algeria`s ALNAFT and received a
three-year permission to participate in tenders for exploration and development of oil and gas
deposits.

Ukraine is seeking to supply its nuclear reactors with uranium mined in the country from 2015,
Deputy Fuel and Energy Minister Natalia Shumkova said. Ukraine aims to increase uranium
production to 5,000 metric tons a year in 2020 and 6,000 tons in 2030, from 830 tons,
Shumkova said at a conference in Kiev today. The eastern European country needs to invest
9.9 billion hryvnia ($1.25 billion) in uranium output through 2013, she said. (Kyiv Post June 26,
2010)

7/16/10

CGNPC Begins Operating Ling Ao 3

China Guangdong Nuclear Power Group (CGNPC) began generating power on July 15, at its Ling Ao 3 nuclear plant in southern
Guangdong province.

The reactor is based on the CPR1000 PWR technology derived from European technologies but with some Chinese modifications. The
1,000 MWe unit is scheduled for connection to the grid later this year. Ling Ao 4, which is still under construction, is reportedly expected
to be operating by June 2011. Ling Ao 3 and 4 make up the second phase of the station where Units 1 and 2 have been operating
since 2002.

7/19/10

House Bill May Mean More DOE Uranium Sales

The House subcommittee responsible for the Department of Energy's budget on Thursday finished an appropriations bill
that supports nuclear loan guarantees and takes small steps to aid the ailing Yucca Mountain project. However, the bill
also cut funding for accelerated cleanup at the old enrichment plant near Piketon, Ohio, increasing the likelihood that
the DOE will continue to pay for that work with uranium. (Monday, July 19, 2010)

Second stage pilot scale operation of Trekkopje uranium mine project taken into operation
The Midi project (second stage pilot scale operation), for which Bateman Engineering was the EPCM (Engineering,
Procurement, Construction Management) contractor, is currently being handed over to Areva.
The Maxi project (full production scale operation) is currently on schedule to ensure that the first ore stacking will start
in the first quarter of 2012. (Bateman Engineering July 2, 2010)
With a steady water supply from the Erongo desalination plant now available, the operations team are able to
commence with the wash sequence on the MIDI heap leach pad at Trekkopje Mine. This is the start of a 600 day wash,
leach, and rinse cycle on the 10 cell MIDI pad that will produce over 400 tonnes of uranium from 3.2 million tonnes of
mined ore.
Meanwhile, work on the MAXI project is underway with 250 machines being deployed for the excavation of the pad and
ponds. Spent ore will be used to backfill the open pit by an on-off heap leaching to reduce the mine’s footprint and assist
in the process of concurrent rehabilitation. (The Namibia Economist July 16, 2010)

Areva hopes to achieve full production at Trekkopje uranium mine by mid-April

Construction and testing are in full swing at the world’s tenth largest uranium mine, Trekkopje, in an effort to achieve
full production by mid-April this year. (New Era Feb. 22, 2010)