uranium sector review exploration, development & production...uranium sector review exploration,...

Uranium Sector ReviewExploration, Development & ProductionJune Quarter 2011

Resource Capital Research


Suite 1306183 Kent StreetSydney, NSW 2000

Tel: +612 9252 9405Fax: +612 9251 2859Email: [email protected]: www.rcresearch.com.au

Resource Capital Research ACN 111 622 489

Uranium Sector Review

Resource Analyst (Uranium): John Wilson

Resource Analyst: Dr Tony Parry

This report is subject to copyright and may not be redistributed without written permission from RCR. The information contained in thisreport is for use by US, Canadian and Australian residents only.Copies are available for purchase from RCR.

June Quarter 2011

27 June 2011

Resource Analyst: Murray Brooker


June Quarter 2011 Disclaimer and disclosure attached. Copyright© 2011 by Resource Capital Research Pty Ltd. All rights reserved. 2

Contents Contents .............................................................................................................................. 2

Overview and Investment Comment ........................................................................................ 3

RCR June Quarter Featured Company Summary ........................................................................ 5

[Industry Background and Analysis ........................................................................................... ]

Comparative Charts ............................................................................................................... 7

Financial Data ..................................................................................................................... 10

Company Statistics .............................................................................................................. 10

Reserves, Resources and Historic Mineralisation ...................................................................... 11

Valuation and Performance Data ........................................................................................... 11

Exploration, Development and Production Companies

Alligator Energy Limited ............................................................................................. 12

Australian-American Mining Corp Limited...................................................................... 14

[Bannerman Resources Limited ...................................................................................... ]

[CanAlaska Uranium Limited .......................................................................................... ]

Deep Yellow Limited................................................................................................... 16

Energy and Minerals Australia Limited .......................................................................... 18

Energy Resources of Australia Limited* ........................................................................ 20

Extract Resources Limited .......................................................................................... 22

Greenland Minerals and Energy Limited ........................................................................ 24

[Paladin Energy Limited* ............................................................................................... ]

Peninsula Energy Limited............................................................................................ 26

[PepinNini Limited ........................................................................................................ ]

Toro Energy Limited................................................................................................... 28

Ur-Energy Inc ........................................................................................................... 30

[Uranium Price Fundamentals .................................................................................................. ]

Selected Uranium Sector Performance Charts ......................................................................... 32

Report Contributors ............................................................................................................. 34

Disclosure and Disclaimer ..................................................................................................... 35

* Indicates companies with detailed financial projections and valuation available.

[This is the Abridged Report version of the June Quarter RCR Uranium Sector Review. The purchase price of RCR’s June quarter Subscriber Reports (uranium and gold) is A$110 per report. The annual subscription rate for all RCR reports is A$440 – commodities covered may vary from quarter to quarter. Purchase details and research services for institutional investors can be found at www.rcresearch.com.au]



Overview and Investment Comment

Market performance summary table

Equity market performance In the past month, the uranium mining majors have had consistently negative share price performance, compounding declines of the past 3 months: Cameco (CCO) is down 13% (3 month performance -19%), Denison Mines (DML) is down 27% (3 month performance -37%), Uranium One (UUU) down 34% (3 month performance -42%), Energy Resources of Australia (ERA) down 16% (3 month performance -51%) and Paladin (PDN) down 25% (3 month performance -35%). ERA had the largest fall of the group, down 51% over 3 months and down 70% over 12 months. This reflects market and sector headwinds, in addition to a lengthy shutdown at Ranger 1H11 due to pit flooding, and delays to development projects. The Merrill Lynch Uranium Equity Index (a global basket of uranium equities) is down 19% over the past month, down 28% over 3 months and down 9% over the past 12 months. The sector has faced near term uranium price uncertainty since the crisis in Japan, as well as broader equity market concerns over slow US economic activity and ongoing sovereign debt issues in the advanced economies. Uranium price outlook The uranium spot price is US$54.25/lb. It plummeted mid March to US$49/lb on news of the partial meltdown at the Fukushima nuclear plant in Japan. Immediately prior to the earthquake and tsunami on 11 March, the spot price had been trading at US$67.75/lb, a 12 month high. In the aftermath of Japan, we expect the spot market to trade in the range of US$50-$60/lb, and it is expected to remain under downward pressure in the coming months. The fund implied price (FIP), an indicator of market price expectations looking out 3 to 6 months,

27 June 2011 Current 1 month 3 month 6 month 12 month

Price*

:US$/lb 54.25 -3 2 -12 33

Uranium Participation Corp :C$/Share 6.50 -2 -7 -19 12

317.62 -19 -28 -40 -9

Share Prices - Select Companies

:A$/share 4.11 -16 -51 -63 -70

:A$/share 2.45 -25 -35 -50 -33

:C$/Share 24.57 -13 -19 -39 6

:C$/Share 1.68 -27 -37 -48 29

:C$/Share 2.52 -34 -42 -46 19

Market Indices

World Markets (all sectors) Morgan Stanley World Index 1281.8 -4 -2 2 22

Currencies (compared to USD)

Australian dollar 1.05 -2% 2% 3% 20%

Canadian dollar 1.01 -1% -1% 2% 5%

Euro 1.43 0% 2% 8% 16%

Denison Mines

Uranium One

Performance (%)

Spot Uranium Price

Merrill Lynch Uranium Equity Index

Energy Resources of Australia

Paladin Energy

Cameco

The uranium spot price and leading sector equities have been under downward pressure… …driven by events in Japan, and also news of slower economic growth in the US and concerns over advanced countries debt levels. The Merrill Lynch Uranium Equity Index is down 19% over the past 1 month and down 28% over the past 3 months. The spot uranium price is US$54.25/lb - trading in a range of US$50-60/lb.



currently points to a spot price of US$48/lb, reflecting expectations of potential new supply to enter the market 2H11 from producers, funds and uncertainty over potential Japanese utility surplus dispositions. The long term contract uranium price is relatively stable, and is currently US$68.00/lb (31 May), down from US$73.00/lb (28 Feb). Despite the short term market impact of Japan, the long term uranium market fundamentals are considered sound with expected strong and increasing demand for new nuclear power reactors, especially from China, USA, Russia, Ukraine and India. While Germany has announced it will close all 17 of its nuclear power reactors by 2022 (with 7 to remain closed with effect from the March 2011 moratorium), many countries have publically stated their strong continued commitment to nuclear energy, most notably, and arguably of greatest influence, the US. While the impact of the Japanese quake is expected to impact discretionary inventory purchases, and further delays to new reactor construction programs are anticipated, the impact on the contract price is expected to be temporary, with the price remaining around the US$60-75/lb mark. This level should support development decisions at a number of advanced uranium development projects, particularly in Namibia, eg the large scale Husab project of Extract Resources (ASX:EXT). Emerging Trends: Rising REE prices are expected to support the economic potential of new REE projects and their associated co- or by-product uranium. Recently, Greenland Minerals and Energy (ASX:GGG) announced (June 21) in a technical update of the Kvanefjeld REE-U-Zn project, Greenland, potential production of 40,000tpa TREO and 9.5mlbspa U3O8, for the first 15 years of the project. Potential commissioning 2015. The scale of uranium production compares with Yeelirrie (ASX:BHP) 7.7mlbspa, Husab (ASX:EXT) 15mlbspa and Cigar Lake (TSX:CCO) 18mlbspa.

The FIP is currently US$48/lb. The contract price is US$68/lb (May 31). While Germany has announced it will close all 17 of its nuclear power reactors by 2022… …many countries have publically stated their continued commitment to nuclear energy, most notably, and arguably of greatest influence, the US. Emerging trends: increased REE prices are expected to support new REE production and associated co- and by-product uranium production.



RCR June Quarter Featured Company Summary

AUSTRALIA

Company Code Comment

Alligator Energy Limited AGE Advanced Exploration

Well funded explorer operating in Australia's premier uranium province.

Drilling on established high grade uranium prospects through 2H11.

Potential JORC resource late 2011/early 2012 at the Caramal prospect,

which has similarities to Jabiluka and Ranger.

Australian-American Mining Corp. Limited AIW Resource definition/Scoping

AIW's 2011 uranium resource target at three US projects (NV,TX,NM) is 28-

42mlbs at 0.05-0.12% U3O8, a significant increase from the current

12.8mlb resource. Gold, rare metals/REE add upside potential. La Paz

(Arizona) REE assays awaited. TSX listing July '11.

Bannerman Resources Limited BMN DFS underway, advanced exploration

Advancing the DFS, further project optimisation and procuring a

development partner for its 212mlb Etango Heap Leach Project in Namibia

are priorities for BMN in 2011, which should drive share price upside from

current modest US$0.40/lb resource valuation.

Deep Yellow Limited DYL PFS, Advanced Exploration

DYL's flagship Omahola Project in Namibia, (2.2mlbpa potential production

2014, PFS underway), looks very robust with ~US$25/lb opex indicated.

The Ongolo high grade discovery will further enhance Omahola grades and

economics as this resource grows.

Energy and Minerals Australia Limited EMA Development

As EMA gears up for a PFS for 2.6mlbpa uranium production at the Mulga

Rock Deposits, WA, the project potential (RCR assessed NAV

A$0.30/share) is being overshadowed by the continuation of a five year

legal battle over tenements and the need to find a new MD.

Energy Resources of Australia Limited ERA Producer

ERA's share price outlook remains volatile. Ranger project expansions,

production and opex outlook highly leveraged to environmental, social and

economic outcomes over the next 12 months. Operations back online June

'11 after 1H suspension.

Extract Resources Limited EXT Advanced exploration, DFS

We expect that China's CGNPC will come back for another tilt at EXT's

42.8% shareholder, Kalahari, at a 'flow through' level for EXT of at least

A$9.00/share, given the huge strategic potential of EXT's Husab resource

(DFS completed, potential >600mlb resource).

Greenland Minerals and Energy Limited GGG Pre-Feasibility Study

The Kvanefjeld resource stands at 350mlbs of U3O8, 6.5mt of total REO

and 1.4mt Zn. A definitive feasibility study (DFS) for production, including

uranium, should start in 2H11. Potential for strategic, robust world class

REE-U-Zn project from 2015.

Paladin Energy Limited PDN Producer

PDN production guidance is 6mlbs U3O8 for FY11 - the low end of

expectations and follows high rainfall events at LHM and continuing ramp-

up to nameplate at KM. PDN is presently focused on achieving production

targets and has initiated cost cutting programs.



AUSTRALIA (cont.)


Peninsula Energy Limited PEN Prefeasibility Study

PEN is approaching a production decision at Lance ISR project in WY.

Resource 41mlbs U3O8 (+25%, Jun '11). DFS 3Q11. Production potential

2012. A$15m conditional financing announced at 50% premium to market

with strategic investor NuCore Energy (June '11).

PepinNini Minerals Limited PNN BFS, Advanced Exploration

With the Crocker Well Uranium BFS (60% SinoSteel, 40% PNN, 11.7mlb

resource) on hold, PNN is targeting high grade gold in QLD, Au-Cu

potential in Argentina, a DSO iron ore resource in WA and large scale

magnetite deposits in Curnamona Province (SA).

Toro Energy Limited TOE BFS and Exploration

With TOE's regional Wiluna (WA) resource base edging towards 40mlb,

focus will now be on the BFS (due 4Q11) for this A$260m, 2.2mlbpa

project. Meanwhile, the Toro team has ambitions to create a much bigger

company via exploration and acquisitions.

CANADA


CanAlaska Uranium Ltd CVV Mid Exploration

CVV has a strategic land position (2.9m ac) in the Athabasca Basin with a

pipeline of high value exploration targets and funding from key strategic

investors (incl. Mitsubishi, KEPCO). Summer exploration: drilling Fond du

Lac (1,500m); multiple geophys surveys in prepartion for Winter drilling.

Ur-Energy Inc URE Permitting

Lost Creek ISR project (WY) is nearing the end of the permitting process.

The NRC issued second Draft Source Material and Byproduct License

(May '11) and confirmed final completion of SEIS (Jun '11). Production

potential 1H12; 1mlbspa U3O8, opex US$20/lb.



Comparative Charts

EV/resource values (adjusted for cash) have fallen in recent months; but clearly, producers and near term producers are achieving the highest valuations in the current market.

Some companies have registered outstanding share price performance gains over the past 12 months, despite the tough market conditions. These include Peninsula Energy and Ur-Energy, each nearing production decisions for ISR projects in Wyoming; and Greenland Minerals and Energy which is achieving key project milestones in Greenland.



[THIS PAGE INTENTIONALLY LEFT BLANK]



Explorers’ Development Cycle: Conceptual market capitalisation versus development stage; June Q 2011



Financial Data

Company Statistics

C OM P A N Y Share Price (LC$/share)3

2 Fully

Diluted

M arket

Cap Book

Enterprise

Value

ExchangesCode Status1 Yr End 52 week Current Shares Opt+W2 C. Notes2 Shares (undiluted) Cash Debt Value (Undiluted)

27 June 2011 Hi Low (m) (m) (m) (m) (LC$m)3 (LC$m)3 (LC$m)3 (LC$m)3 (LC$m)3

AUSTRALIA (A$)

Alligator Energy Limited AGE E June ASX No 0.25 0.08 0.09 123 48 0 171 11 12.6 0.0 14 11

Australian-American M ining Corp. Limited AIW E June ASX OTC FSE AIWO 0.11 0.03 0.03 337 185 0 522 11 4.2 0.0 15 11

Bannerman Resources Limited BM N E June ASX TSX No 0.91 0.21 0.23 234 19 23 276 53 13.8 10.0 83 63

Deep Yellow Limited DYL E June ASX No 0.39 0.12 0.14 1128 23 5 1155 152 14.0 0.0 132 152

Energy and M inerals Australia Limited EM A E June ASX EM AO 0.30 0.10 0.10 388 67 30 485 39 1.1 0.0 5 39

Energy Resources of Aust ralia Limited ERA P Dec ASX No 15.08 3.95 4.13 191 0 0 191 788 27.7 0.0 927 788

Extract Resources Limited EXT E June ASX TSX No 10.80 5.96 7.69 251 1 0 252 1930 74.8 0.0 210 1930

Greenland M inerals and Energy Limited GGG E Dec ASX OTC FSE GGGO 1.41 0.31 0.72 386 22 0 408 278 21.6 0.0 73 278

Paladin Energy Limited PDN P June ASX TSX NSE No 5.61 2.25 2.44 778 0 121 899 1898 185.9 727.8 963 2625

Peninsula Energy Limited PEN E June ASX PENOA, PENOC 0.16 0.03 0.08 2093 900 46 3040 157 26.0 0.0 80 157

PepinNini M inerals Limited PNN E June ASX No 0.37 0.10 0.10 90 0 0 90 9 4.5 0.0 26 9

Toro Energy Limited TOE E June ASX No 0.18 0.06 0.07 965 20 0 985 70 24.6 0.0 108 70

Total: Australia 410.7 737.8 2636 6134

CANADA (C$)CanAlaska Uranium Ltd CVV E April TSX OTC FSE No 1.90 0.62 0.69 20 5 0 26 14 18.8 0.0 60 14

Ur-Energy Inc URE I Dec TSX AM EX No 3.35 0.76 1.65 104 6 0 109 171 35.5 0.0 77 171

Total: Canada 18.8 0.0 60 14

Total: (US$)4 455 782 2856 6516

(1) P: Producer; E: Explorer; I: Imminent - includes companies with bankable feasibility studies and likely to be in production within 3 years; IHC: Investment Hold ing Company

(2) Fully Diluted (shares, options + warrants (opt. + w), convertib le notes (Conv. N), other obligations)

(3) L.C. - Local Currency unit ; End of quarter forecast. (4) AUD/USD: 1.06; CAN/USD: 1.02

Exchanges

C OM P A N Y

(A) Explorat ion (L.C.$m)7 (B) Corporate (L.C.$m)7Drilling ('000 m)Code Land (A)/(A+B) %

27 June 2011 ('000 ha)6 M ar-11 Jun-11 2011 2012 M ar-11 Jun-11 2011 2012 M ar-11 Jun-11 2011 2012 Jun-11 2011 2012

AUSTRALIA (A$)

Alligator Energy Limited AGE 705 0.0 0.5 0.5 7.0 0.3 1.0 1.2 2.3 0.4 0.4 0.8 1.6 70 60 58

Australian-American M ining Corp. Limited AIW 505 0.0 1.0 8.4 5.0 0.9 0.7 3.1 3.7 0.8 0.6 2.7 2.4 54 53 61

Bannerman Resources Limited BMN 24 5.0 7.5 30.0 30.0 2.3 3.7 11.5 14.0 1.2 1.3 5.4 5.6 74.0 68.1 71.4

Deep Yellow Limited DYL 2,933 45.7 45.0 192.5 187.0 2.8 3.5 15.2 17.2 1.0 0.9 3.9 4.0 79.3 79.4 81.1

Energy and M inerals Australia Limited EMA 340 10.0 10.0 40.0 40.0 0.7 1.0 3.6 6.0 0.4 0.4 1.6 1.6 71.4 69.0 78.9

Energy Resources of Australia Limited ERA 8 0.0 5.0 20.0 35.0 7.0 7.0 28.0 28.0 3.1 3.1 12.3 12.5 69.5 69.5 69.1

Extract Resources Limited EXT 270 50.0 80.0 295.0 320.0 8.0 10.0 49.3 60.0 2.6 3.0 10.1 10.8 76.9 82.9 84.7

Greenland M inerals and Energy Limited GGG 211 5.0 5.0 21.0 20.0 4.3 4.6 12.0 8.0 2.1 2.4 7.8 6.4 65.3 60.6 55.6

Paladin Energy Limited PDN na 25.0 25.0 100.0 100.0 4.5 4.5 18.0 18.0 10.0 10.0 45.0 40.0 31.0 28.6 31.0

Peninsula Energy Limited PEN 272 10.0 10.0 52.9 40.0 2.6 4.6 13.6 8.0 1.6 1.1 4.9 4.4 80.7 73.4 64.5

PepinNini M inerals Limited PNN 1,607 4.8 8.5 23.5 26.0 0.7 0.8 3.5 3.6 0.5 0.2 1.4 1.2 80.0 71.3 75.0

Toro Energy Limited TOE 4,690 5.5 6.0 27.0 23.0 3.1 3.2 16.0 14.0 0.2 0.7 2.8 3.2 82.1 85.0 81.4

Total: Australia 161 204 811 833 37 45 175 183

CANADA (C$)CanAlaska Uranium Ltd CVV 987 5.0 8.0 23.0 16.3 0.7 5.0 10.1 13.5 0.5 0.7 1.9 2.6 88.5 84.2 83.9

Ur-Energy Inc URE 26 20.0 20.0 80.0 80.0 0.8 1.5 5.3 6.0 1.2 1.2 4.6 4.6 57 53 57

Total: Canada 25 28 103 96 1 7 15 20

Total: (US$)4 41 54 201 214

(6) To convert hectares to acres, multiply by 2.47; eg 100 thousand hectares ('000 ha) = 247 thousand acres ('000 ac)

(7) L.C. - Local Currency unit

(A) Explorat ion (L.C.$m)7 (B) Corporate (L.C.$m)7Drilling ('000 m)



Reserves, Resources and Historic Mineralisation

Valuation and Performance Data

C OM P A N Y Total - Gold Product ion

Code Status1 Other Other Other Equivalent 3 Commencement

27 June 2011 Mlb kt M lb kt M lb kt M lb kt (Moz) Year

AUSTRALIA

Alligator Energy Limited AGE E 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 na

Australian-American M ining Corp. Limited AIW E 0.0 0.0 12.8 5.8 1.0 0.5 13.8 6.3 0.5 na

Bannerman Resources Limited BM N E 0.0 0.0 170.1 77.1 0.0 0.0 170.1 77.1 6.2 na

Deep Yellow Limited DYL E 0.0 0.0 104.1 47.2 0.0 0.0 104.1 47.2 3.8 na

Energy and M inerals Australia Limited EMA E 0.0 0.0 59.6 27.0 0.0 0.0 59.6 27.0 2.2 na

Energy Resources of Aust ralia Limited ERA P 214.7 97.4 404.6 183.5 0.0 0.0 619.4 281.0 22.4 1981

Extract Resources Limited EXT E 224.8 102.0 512.8 232.6 0.0 0.0 512.8 232.6 18.5 na

Greenland M inerals and Energy Limited GGG E 0.0 0.0 213.5 96.8 0.0 0.0 213.5 96.8 7.7 na

Paladin Energy Limited PDN P 159.2 72.2 510.8 231.7 35.9 16.3 546.7 248.0 19.8 2008

Peninsula Energy Limited PEN E 0.0 0.0 41.4 18.8 6.1 2.8 47.5 21.5 1.7 na

PepinNini M inerals Limited PNN E 0.0 0.0 5.0 2.3 0.0 0.0 5.0 2.3 0.2 na

Toro Energy Limited TOE E 0.0 0.0 30.6 13.9 0.0 0.0 30.6 13.9 1.1 na

Average: Australia

CANADACanAlaska Uranium Ltd CVV E 0.0 0.0 0.0 0.0 0.5 0.2 0.5 0.2 0.0 na

Ur-Energy Inc URE I 0.0 0.0 27.1 12.3 0.0 0.0 27.1 12.3 1.0 na

Total/Total Average 599 272 2092 949 43 20 2351 1066

(1) P: Producer; E: Explorer; I: Imminent - includes companies with bankable feasibility studies and likely to be in product ion within 3 years; IHC: Investment Holding Company

(2) Reserves, resources and mineralised material published by the relevant company. Tonnes are metric (2204.6 pounds).

The applicable mineral resource codes are by country: Aust ralian: JORC, Canadian: NI 43-101, South Africa: SAM REC(5) M F Global; (FIP) fund implied price represents the price reversed out of the closed end

(3) For uranium only. Assumes a uranium price of US$60.00/ lb and a gold price of US$1425/oz physical fund UPC.

* M ineral resource est imates are inclusive of the mineral reserve. ^ ERA reserves are in addition to resources.

(All M ineralisat ion)1

Total Uranium (U3O8)

Uranium (U3O8) Uranium (U3O8) Uranium (U3O8)

Reserves (Equity)2 Resources (Equity)2

Historical/M ineralised Material

(Equity)2

C OM P A NY EV-Cash EV-Cash EV-Cash

Code P/Book P/Net Cash /Reserves /Res'v+resources /Total U3O8 Spot Contract FIP5

27 June 2011 (x) (x) US$/ lb US$/lb US$/ lb 54.25 68.00 48.40 1 month 3 month 6 month 12 month Hi Lo

AUSTRALIA

Alligator Energy Limited AGE 0.8 0.9 na na na na na na -11 -33 na na 64 6

Australian-American M ining Corp. Limited AIW 0.7 2.6 na 0.54 0.50 1 1 1 -14 -42 -46 3 70 10

Bannerman Resources Limited BM N 0.6 14.1 na 0.31 0.31 1 0 1 -27 -53 -61 -17 75 10

Deep Yellow Limited DYL 1.2 10.9 na 1.41 1.41 3 2 3 -23 -43 -57 -7 65 13

Energy and M inerals Australia Limited EM A 7.3 34.7 na 0.67 0.67 1 1 1 -41 -49 -55 -38 66 5

Energy Resources of Australia Limited ERA 0.8 28.5 3.75 1.99 1.99 4 3 4 -16 -52 -63 -70 73 5

Extract Resources Limited EXT 9.2 25.8 8.75 3.84 3.84 7 6 8 0 -9 -14 15 29 29

Greenland M inerals and Energy Limited GGG 3.8 12.9 na 1.27 1.27 2 2 3 7 -31 -25 89 49 132

Paladin Energy Limited PDN 2.0 -3.5 16.24 5.06 4.73 9 7 10 -25 -37 -50 -35 57 8

Peninsula Energy Limited PEN 2.0 6.0 na 3.35 2.92 6 5 7 -9 -25 4 150 52 168

PepinNini M inerals Limited PNN 0.4 2.0 na 0.94 0.94 2 1 2 -26 -46 -55 -33 73 5

Toro Energy Limited TOE 0.7 2.9 na 1.59 1.59 3 2 3 -20 -37 -51 7 59 14

Average: Australia 9.58 1.91 1.83 4 3 4

CANADACanAlaska Uranium Ltd CVV 0.2 0.7 na na nmf na na na -15 -30 -55 -37 64 11

Ur-Energy Inc URE 2.2 4.8 na 5.10 5.10 9 8 11 -6 -6 -38 92 51 117

Average: Canada na 5.10 5.10 9 8 11

Total/Total Average 7.19 2.01 1.94 4 3 4 -15 -33 -40 9 56 36

(%)

Share Price Performance Current Share Price

% of f 12 month

Valuat ion (%) of U3O8 Price

(USD)

Res'v+resources



Alligator Energy Limited

0.25

Debt (A$m) - Jun 11F

Enterprise value (A$m)

Avg monthly volume (m)

Cash (A$m) - Jun 11F

Price/Cash (x) Cash (A$m)

Price/Book (x)

Listed company options: Net asset backing (Ac/share)

* Uranium prospective properties only. Quarters refer to calendar year.

Contacts Directors

Mr Denis Gately

Executive Chairman G Duncan (Exec Alternate)

Tel: +61 (07) 3852 4712 P Dickson (Non Exec)

Spring Hill, Qld, Australia L Curyer (non Exec)

A Vigar (Non Exec)

Analyst: Murray Brooker

[email protected]

Two Rocks

U

none* naU

Unconformity na Expl AUS (NT)

100%South Horn

ppm

100% U none*

na

Focused on Australia's premier uranium region - Alligator

River Uranium Province (ARUP) - host to 950 mlb U3O8.

Tenements within Arnhem Land 60km east of Jabiluka,

in the same host rocks. 2011 exploration to focus in

eastern part of the Tin Camp tenements.

Arnhem Land under-explored due to former government

3 mines uranium policy, previous low uranium prices

and access restrictions by traditional owners.

Prospects contain historical high grade uranium

intersections >0.5%. Jabiluka-style setting at Caramal

prospect, with potential for a JORC resource in 2011.

Airborne geophysics completed to target drill holes.

5,500m drilling on three prospects in 2H11.

AGE board and management have extensive experience

technical, legal and commercial experience in the

uranium industry

.

0.0

0.0

0.0

U3O8

Reserves

Mt

U3O8

Total

Caramal none*

0.0

Land holding ('000 ha)

-

Company Comment

Mineralised Material (est., non compliant w ith JORC)

Resources

A$ 0.09

Production and Financial Forecasts

2012FJun-11F 2010aMar-11a

Well funded explorer operating in Australia's premier uranium

province. Drilling on established high grade uranium prospects

through 2H11. Potential JORC resource late 2011/early 2012 at the

Caramal prospect, which has similarities to Jabiluka and Ranger.

Year End: June

0.0

0.80

1.44

to

040

0.400.40

AGE.AU27 June 2011

Uranium

Australia (NT)

0.95

Advanced Exploration

Exchanges: ASX:AGE

Share price (A$)

Capital Profile

52 week range (A$/share)

0.09

0.0822011F

122.9

0

Exploration and evaluation (A$m)

47.7

Shares on issue (pr end) (m shares)

Exploration/(Expl.+ Corporate) (%)

1.210.26

70 60

Corporate (A$m)

170.6

10.9 00

Market capitalisation (undiluted) (A$m)

0 0Drilling - RAB (m)

Funding duration at current burn (years)

Number of shares (m)

Fully diluted (m)

Convertible notes (m)

Options and warrants (m)

10.9

0

0.0

0

0.0

155.3

Mr Robert Sow erby (3.5%), National Nominees (2.8%)

80.0

-

Major shareholders: Macquarie (11%), Lagoon Creek Resources (4.5%), 705

8.8

12.612.6

500Drilling - Other/Diamond (m)

00

13.8

-

0

0

0.0

0

155.3

0

Geology

705

Equity

Classification/

0.0

Tenement costs ($k per year)

Funding from JV partners (A$m)

0.0

0.9

8.8

%

U3O8

Cash backing (Ac/share)

No

8.9

Ore

Capital rais ings (A$m)

12.6

15.0

Investment Points

0.8

9.0

10

Project

Option

Cut Off

8.1

Route

R Sowerby (CEO Exec) Target

PartnerMetal

www.alligatorenergy.com.au

Project

Gorrunghar

Ownership/ Process

Unconformity

100%

Type

2.25

0.0

0

7,000

8.8

1.60

Project

9.3

Unconformitynone*

0.0

Location

AUS (NT)

6.3

500

100% Unconformity Adv Expl

Key Projects

JV

U

Status

2.3

0.0 0.0

64

U3O8 Eqty

* An aboriginal trust holds 2% in tw o of the three granted tenements

Alligator Energy Limited

Uranium

Reserves and Resources/Mineralised MaterialCode for reporting mineral resources - Australian: (JORC)

na AUS (NT)

Expl AUS (NT)

0.0 0.0

Mlb

705

0.0

9.0

6.4

-

Kt Mlb

0.0

U3O8

15.0

Expl

155.3

705

155.3

8.1

-

0.00

0.05

0.10

0.15

0.20

0.25

0.30

Feb

-11

Mar

-11

Ap

r-11

May

-11

Sh

are

Pri

ce (

$/S

har

e)

AGE - Alligator Energy Limited

Source: Bloomberg

Overview: AGE listed on the ASX 3rd February 2011, with a focus on uranium exploration in the prolific Alligator River Uranium Province (ARUP) of the Northern Territory (NT), having successfully bid for tenements held by major uranium producer Cameco, in a highly competitive bid process. The project area contains prospects where previous exploration drilling has intersected high grade uranium mineralisation. Mining and Exploration agreements are in place with Traditional Owners and drilling is underway. Cameco retains an option to buy back 51% of total resources at 10% of spot price if a deposit >20,000t U3O8 is defined. AGE will retain off take rights on its share of resources. The purchase from Cameco includes a camp and facilities with ~$1m replacement value. AGE also holds 11 Exploration Licence Applications (ELAs) in the ARUP totalling 415km2. These are being progressed to granted status. Alligator River Uranium Province (ARUP): Targets are high grade unconformity style uranium deposits, such as ARUP deposits Ranger orebodies 1 and 3 (multiple pods, 134mlb U3O8), Jabiluka (312mlb U3O8) and Nabarlek (single pod of ~24mlb U3O8). The tenements cover the same units, structural setting and mineralisation as these deposits. Little uranium exploration was undertaken in the ARUP between the 1970’s and the 1990’s due to low U prices and the former 3 mines policy. Tin Camp Creek - Cameco Purchase (NT; uranium): This area 275km E of Darwin was explored by Cameco and purchased from them for A$3m. The tenements include several prospects, the most advanced of which is Caramal, ~60km east of Jabiluka and ~20km south of Nabarlek. Caramal: High grade drill intersections include 21m @ 0.50% U3O8 and 22.7m @ 0.38% U3O8. There are suggested similarities with Jabiluka and Ranger in the geological setting, host lithological and alteration styles. High resolution airborne magnetics and radiometrics have been flown by AGE to evaluate fault offsets, and target drilling at faults crossing the prospective horizon away from known Caramal mineralization. Six holes planned in known prospect to confirm results and bring mineralised material to JORC standard. 3,500m drilling planned 2H11. South Horn (NT; uranium): Targeting unconformity style uranium adjacent to the Beatrice Fault, which juxtaposes fractured dolerite and prospective Cahill Formation. Airborne radiometric data shows areas with elevated uranium radiometric response requiring drilling. Historical drilling includes 13m @ 0.21% and 15m @ 0.47% U3O8. 1500m drilling in 2011. Two Rocks (NT, uranium): Historical exploration defined two small zones of uranium and copper with the best historical intersection of 4m @ 0.82% U3O8. Electromagnetic and radiometric targets representing possible black shales are a priority for 500m of drilling. Gorrunghar (NT, Uranium): No exploration has been conducted since initial discovery in 1973, when 8.6m @ 0.33% U3O8 was intersected. Mapping and radiometric surveys are planned in 2011. Corporate: Raised $1 m before costs at IPO and listing in Feb 2011. MD has extensive uranium exploration experience and worked at Ranger. AGE personnel and consultants have extensive experience with ARUP geology and native title holders. Investment Comment: AGE’s tenements are located in one of the world’s premier provinces for high grade uranium deposits. Initial exploration to concentrate on granted tenements with historical high grade intersections, such as Caramal. Share price drivers are drilling and resource definition in an area of historical high grade uranium discoveries, with potential maiden resource 4Q11 at Caramal.



AGE’s exploration tenements are exclusively in the Alligator River Uranium Province (ARUP, NT), purchased from Cameco (51% claw back) or held 100%. ARUP known uranium endowment is 950mlbs of

high grade uranium resources (>0.1% U3O8) – includes Ranger and Jabiluka (ERA).

Tin Camp Project (NT, 98% AGE, purchased from Cameco), showing high grade historical prospects and drill intersections to be followed up by Alligator Energy. The Tin Camp area has exploration

dating to the 1970’s.



Australian-American Mining Corp Limited

0.11






Price/Book (x)


* Uranium prospective properties only. Quarters refer to calendar year.

Contacts Directors

Mr Jim Malone

Executive Chairman G Barns (Non Exec)

Tel: +61 (0) 8 9325 5568 D Falconer (Non Exec)

West Perth, WA, Australia D Geldard (CEO, Exec)

S Jackson (Non Exec)

[email protected] Early Expl USA (AZ)San Marcos 100% Au,Ag na Structural na

USA (AZ)Pegmatite na

371.7

505

331.7

6.0

1.3

-

Inferred

Mid Expl

8.9

Mid Expl

5.2

0.07

300

100%

Kt

U3O8Cut Off

na

0.09

0.7100

ppm Mlb

0.0

7.9

11.4

2.3

-

U3O8

0.0

11.4

Mlb

na USA (AZ)

1.5

Scoping USA (NV)

U3O8 Eqty

Australian-American Mining Corp Ltd

Uranium

Reserves and Resources/Mineralised MaterialCode for reporting mineral resources - Australian: (JORC)

8,350

100% Sandstone Adv Expl

12.8

1.00.45

5.9

0.0

Location

USA (NM)

1.3

600

0.7

Toll

67

3.70

0.0

0

5,000

6.6

2.40

8.0

Project Ore

Granite-sed

100%

Type

Unconformity

U

naApache Basin

J Malone (Exec Chair)

La Paz

Lone Star LLC

100%Apex-Lowboy

Lone Star

100% REE

none

Status

Apex-Lowboy 100%

Target

PartnerOptionProject

Rio Puerco

1.3

Route

Inferred

100%

7.0

Ownership/ Process

4.5

Total

Metal


0.0Capital rais ings (A$m)

4.2

0.0

Investment Points

0.7

4.6

2.4

4.5

%

U3O8


AIWO

1.6

Focused on established (brownfields) uranium projects

in USA (Texas, New Mexico, Nevada). Potential for low

capital intensity, low opex (~US$25/lb) and toll treatment.

Current resource inventory 12.85mlbs U3O8 with a target

of 28-42mlbs @ 0.05%-0.12% for 2011 at three projects.

Rio Puerco (NM): located in Grants Mineral Belt. JORC

resource 11.4mlbs U3O8 grading 0.09%. Exploration

upside on 15km strike, target 20mlbs. Drilling 2H11.

Apex-Lowboy (NV): Apex resource 1.45mlb U3O8 in area

of historic production. Combined exploration target to

18mlb U3O8. Further drilling expected 2H11.

Lone Star (TX): Target 3-4mlbs U3O8 with potential for

ISR. Drilling likely 2H11. Experienced JV partner team

targeting additional brown fields projects.

Picacho rare metals (Li, Rb, Ta) and La Paz (REE,

elevated HREE) projects in Arizona. Metallurgical testing

underway. La Paz drilled 2Q11, results awaited.

Mt

4.6

0

0.8

400

Geology

505

Equity

Classification/

0.5


4.24.2

1,000Drilling - Other/Diamond (m)

00

5.4

-

0 0 0

3.8

0

0.0

331.7

Metco (10%)

162.4

-

Major shareholders: JP Morgan (12%), Libra Advisors (10%), 505

10.1 1,5000


0


Fully diluted (m)



10.1

Share price (A$)


0Drilling - RAB (m)


331.7Shares on issue (pr end) (m shares)

Corporate (A$m)

521.7


3.060.91

0.03

0.0292011F

336.7

2.26


Year End: June

54

0.84

AIW.AU27 June 2011

Uranium, Rare Metals, Gold

USA (TX,NV,NM,AZ)

0.70

Resource definition/Scoping

Exchanges: ASX:AIW, OTC:MNOMY

Capital Profile

53

185.0

0.0

2.67

2.10

to

4852

0.60

17

A$ 0.030


2012FJun-11F 2010aMar-11a

AIW's 2011 uranium resource target at three US projects (NV,TX,NM)

is 28-42mlbs at 0.05-0.12% U3O8, a significant increase from the

current 12.8mlb resource. Gold, rare metals/REE add upside

potential. La Paz (Arizona) REE assays awaited. TSX listing July '11.


-

Company Comment

1.0


Apex

U3O8

Reserves

Key Projects

JV

1.0

Project

12.8

Resources

Rio Puerco

1.5

90% Uwww.ausamerican.com.au USA (TX)

Analyst: Murray Brooker

U

none naU

Sandstone na Adv Expl

Early Expl USA (AZ)White Picacho 100% Li,REE na Pegmatite na

0.00

0.01

0.02

0.03

0.04

0.05

0.06

0.07

0.08

0.09

Jun

-10

Aug

-10

Sep

-10

Oct

-10

No

v-10

Jan

-11

Feb

-11

Mar

-11

Ap

r-11

May

-11

Sh

are

Pri

ce (

$/S

har

e)

AIW - Australian-American Mining Corporation Ltd

Source: Bloomberg

Overview: AIW (or “AusAmerican”) listed on the ASX in September, 2005, as Monaro Mining NL (MRO) and changed name in April 2010 to reflect its current focus: brownfields uranium and gold exploration in the USA, although some tenements are also prospective for rare metals. Apex-Lowboy Project (Nevada; uranium): 270km E of Reno. Apex includes an historic mine (105klb U3O8

production to 1966, grading 0.25%). Mineralisation is on a sediment-granite contact. JORC resource (Mar ‘11) of 1.45mlbs U3O8 grading 0.07%, including 0.85mlbs @ 0.188%. There is a Scoping Study (Jul ’07) for open cut (strip 2:1) and heap leach, recovery 80% in 48hrs (capex then US$24m, opex US$22/lb). There is exploration potential at Apex-Lowboy on ~12km strike. AIW has exploration targets of 2-3mlbs U3O8 grading 0.05-0.12% at Apex, and 2mlb-15mlb at 0.05%-0.12% U3O8 at Lowboy. Lowboy drilling is expected in 2H11. A feasibility study could be completed 2011. Production target 2H12. Rio Puerco Project (New Mexico; uranium): Targeting roll front uranium deposits in Grants Mineral Belt -historic production ~340mlb U3O8. Regional deposits include Roca Honda (33mlb U3O8, Strathmore Minerals -mine/mill permitting). The JORC resource at Rio Puerco is 11.4mlb U3O8 grading 0.09% (cut-off 0.03%). This includes 5.8mlbs @ 0.27% (cut-off 0.1%). Infrastructure includes a mine with 260m concrete shaft and drives. The claim block hosting the resource is 7% of the 48km

2 project. Prospective strike is 15km. There is an

Exploration Target for 2011 of >20mlbs U3O8 grading 0.05% to 0.20%. Drilling to commence June 2011 (35 holes, 7700m) and extend over 4-6 months, with aim to upgrade resource to indicated and measured and providing samples for ISR metallurgy. Potential to toll treat ore at future nearby operations (Strathmore plant potential from 2015+). The deposit could be ISR amenable. Lone Star Project (Texas, uranium): In the Texas Uranium Belt, transaction completed 2Q10. Resource target is 4-6mlbs grading 0.12%-0.15% U3O8, after Union Carbide in the 1960s. Mineralisation is shallow (10ft-150ft), sediment-hosted and possibly ISR amenable. Texas is a favourable jurisdiction, with uranium mills within 100km. Drilling planned for 2H11, with resource statement anticipated 4Q11. Lone Star LLC (partner) 10% free carried in project and responsible for identifying new projects in Texas. Apache Basin JV (Arizona; uranium): Target is unconformity-hosted uranium. Targets are below known fracture-controlled high grade (0.18-0.19% U3O8) uranium mineralisation. Rare and Specialty Metal Pegmatites (Arizona): AIW White Picacho claims are prospective for lithium, rubidium, tantalum and REE in pegmatites. Initial sampling was encouraging, e.g. Li2O to 4.5% and Ta to 0.2%-0.3%, with 1300 samples taken and undergoing metallurgical testing. Possible drilling 2H11. La PazREE Project, 120 miles NW of Phoenix - drilled 2Q11 (5,120m, 195 holes) to 30m depth. Assays awaited.Wide spectrum of REEs (including heavy REEs comprising ~15-20% of total REE). Met test work expected 3Q11. Potential for bulk mineable, large tonnage REE deposit; proximal to key project infrastructure. Gold projects: San Marcos (AZ, 10.5km

2 including historic workings on 750m open strike to +100m depth),

where AIW chip and channel samples run to 98.2g/t Au, with 28% of 86 samples showing +1g/t Au. Target detachment fault hosted (Copperstone-type) mineralisation. Drilling planned for 2H11. Corporate: Raised $8.4m before costs through placement and SPP in Nov-Dec ‘10, of which 40% went to North American investors. TSX listing expected 3Q11. The Board has been partly restructured to include directors with further experience in project development (Jackson) and uranium (Falconer). Investment Comment: AIW’s strategy of acquiring advanced exploration projects could result in near to medium term, low cost, uranium production – possibly via in-situ recovery (ISR) techniques. The 2011 resource target is to define 28-42mlbs U3O8 across several projects, and multiple drill programs are underway and planned for 2H11. Share price drivers are resource upgrades, exploration results (uranium, gold, rare metals/REE) and possibly the TSX listing.



Project locations: Apex-Lowboy and Rio Puerco are 100% owned by AIW and Lone Star 90%. All are advanced exploration projects with historic uranium mines and/or JORC-qualifying/historic resources. Drilling at Rio Puerco and Lone Star 2H11. The Arizona rare metals/REE project is a major new focus.

Rio Puerco claims map: the project lies at the eastern end of the well-known Grants Mineral Belt, which has pre-1986 production of >320mlbs U3O8. The region is host to a number of large uranium deposits that are in the advanced stages of mine permitting. Rio Puerco has resource of 11.4mlbs U3O8 (Oct ’09). Drilling 2H11.



Deep Yellow Limited

0.39






Price/Book (x)


Quarters refer to calendar year end.

Resources

Tubas-Tumas Palaeoch.**Ind + Inferred **

Ausinanis

Napperby

* ~55% (13.4mlb) of Omahola resource is higher grade INCA resource, grades ave. 405ppm.

** A higher grade Tubas-Tumas resource of 34.8mlb grading 424ppm has been defined

Contacts Directors

(Managing Director)

Deep Yellow Limited

Tel: 61 (0) 8 9286 6999

Subiaco, Australia

www.deepyellow.com.au

[email protected]

Nova Energy JV

uranium

Namibiana magnetite na Mid ExplShiyela 100% iron

100%

Analyst: Dr Tony Parry

Mr Greg Cochran

M Kavanagh (Exec)

R Brunovs (Non Exec)

G Swaby (Non Exec)

M Greene (Non Exec Ch.)

0.0

65% TOEuranium

Project

Namibia 100% na


G Cochran (MD)

0.00.0

Key Projects

Ownership/ JV Target

Option Metal


ppm

Reserves

Code for reporting mineral resources - Australian:

1.2

11.7

1.5

na

Xstratauranium

Partner

1128

4.00

97

1128

0.7 -0.3

3.92

87

17.20

3.03

15.853.45

0.90

8479

20,000

167,000

2,933

Geology Equity

Reserves and Resources/Mineralised Material

0.0

152.2 40,000

152

20,0005,000

0.00.0

1155

164,828

0.8

11261128


Drilling - RC/Diamond (m)

0.99

74

Corporate (A$m)

2.80

1128



na

12.0

--

ProjectProcess

0.0

-6.6

Eqty

uranium

uranium

10.9

1.2

100% uranium

PFS, Advanced Exploration

Uranium (U3O8) Classification/

Tanami-Arunta

Namibia

Aus (QLD)

Aus (NT)

Mid Expl.

Mid Expl Aus (QLD)

Early Expl

Mid Expl.

Namibia

Adv Expl PFS

-

-0.7

0.0

0.0

0.3

2.6

0.7

17.0

A$ 0.135

1.4

15.15

(JORC)

-

0.5

Company Comment

11.9

14.0

100%

Ore

100/275

Cut Off

Fully diluted (m)

LocationStatusRoute

Mt

2,933

14.0

0.0

No

DYL.AU


Drilling - RAB (m)

Deep Yellow Limited

YEAR END: June

23.1

5

Uranium

5,000

Investment Points

Advanced stage U exploration and project development,

budget ~A$20mpa, est. cash ~A$14m Jun '11F.

Drilling 12,000m/month in Namibia plus Australian

exploration (NT & QLD).

Namibian Projects: current JORC resource is 93mlb,

includes Omahola (24.5mlb), Tumas-Tubas (50.8mlb).

Flagship is Omahola Project, targeting

2.2mlbpa U3O8 with acid leach, production target end

2014.

Omahola PFS update is imminent. Interim PFS data:

capex ~US$336m, opex ~US$25/lb.

Maiden Ongolo alaskite resource: 6.2mlb @ 410ppm.

Project newsflow: 3Q11: Omahola updated PFS, Ongolo

resource upgrade, Omahola DFS commencing 1Q12.

Shiyela magnetite project in Namibia moving to scoping

study stage, not currently reflected in share price.

ppm

Project Grade

Mlb



Capital raisings (A$m)


29.6

-Leon Pretorius (5.89%), G Sw aby (3.61%).

14.0

Major shareholders: Paladin (19.96%), Robert Healy (6.46%)

18

Mar-11a

DYL's flagship Omahola Project in Namibia, (2.2mlbpa potential

production 2014, PFS underway), looks very robust with ~US$25/lb

opex indicated. The Ongolo high grade discovery will further

enhance Omahola grades and economics as this resource grows.

2010a 2011F


2012FJun-11F

0.0

40,700

2,933

0.0

2,933

0.0

3,546

27 June 2011

0.14


Capital Profile

52 week range (A$/share) to

Namibia, Australia (QLD,NT)

0.12

1127.5

Exchanges: ASX:DYL, NSX:DYL

Share price (A$)

20,000

172,485




Mlb

Total Resources

100%

35.7

34.6 18.0

11.1

104.1 104.1

24.5

18.0

7.4

3.4 3.4

13.0

24.5

Kt

50.8

0.0

12.9

315Omaholo - Namibia *

Aus (NT)calcrete alk. Leach Sc. Study

249

428

m'somatic/brec. na

hardrock/calcrete

47.2

3.6

175.3

Mount Isa Ind + Inferred

Napperby 100% uranium

100%

na

Type

Queens Gift 100%

Isa West JV

na

acid leach

hardrock/calcrete

nacalcrete/roll front

metasomatic na

Meas + Ind + Inf

Ind + Inferred

Inferred

1.5

3.4

8.2

100/200

150

300

23.0

100% 7.4

237

50.8100% 92.1 250

9.3 359 2000.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0.40

Jun

-10

Aug

-10

Sep

-10

Oct

-10

No

v-10

Dec

-10

Jan

-11

Feb

-11

Mar

-11

May

-11

Jun

-11

Sh

are

Pri

ce (

$/S

har

e)

DYL - Deep Yellow Limited

Source: Bloomberg

Overview: Deep Yellow is an advanced stage uranium exploration and project development company currently focused on projects in Namibia and Australia (QLD, NT). Namibia: DYL holds 100% of 2,875km2 ~15km SW of PDN’s Langer Heinrich mine, plus 65% of JV tenements (1,323km2) with Nova Energy (subsidiary of Toro). The Tumas-Tubas palaeochannel system is 80km length. DYL has drilled >500,000m since 2007, and only addressed a fraction of the potential. Ongolo Alaskite Maiden Resource: Discovered 2Q10, high grade alaskite ~25km NE of INCA, similar mineralisation to Extract’s Husab project. The initial JORC resource estimate (May ’11) is 6.9mt @ 410ppm for 6.2mlb U3O8. Drilling is on-going (only about 50% of ~2km strike in first resource statement) with four RC and two DD rigs on this project. An upgraded resource statement is expected in 3Q11. Omahola Project: DYL’s flagship project. Based on mining ore from three sources: the shallow (~20m deep) high grade (~400ppm) INCA uraniferous oxide project, the nearby surficial (surface to ~13m deep) lower grade free-digging (~160ppm) Tubas Red Sands (“TRS”) and the recently discovered shallow high grade (~400ppm) Ongolo Alaskite deposit (~25-200m deep). These three deposits currently have a combined resource of 24.5mlb U3O8 @ 311ppm average grade. Omahola PFS: The PFS is currently underway (SNC Lavelin). Flowsheet is based on conventional acid leach and SX/precip. DYL released interim PFS results (based only on INCA and TRS feeds) which targets production of 2.2mlbpa over a 12 year mine life. Although it is low grade, the TRS provides a low cost free-digging sand which can be readily beneficiated from ~160ppm to ~850ppm by using hydrocyclones, with ~80% uranium recovery. Capex estimate is US$324-336m. Importantly, the first pass estimate of opex is coming in at around US$25/lb, which is encouragingly low and reflects the low mining costs. The finalisation of the PFS has been extended to mid 2011 in order to incorporate Ongolo as a further high grade ore source. Opex may well reduce further with the inclusion of higher grade Olongo alaskite. A DFS is likely to commence early 2012 (after a review of the PFS), with a project start-up possible in late 2014, subject to PFS/DFS outcomes, permitting and financing. Shiyela Iron Project: Large scale (potential strike 8km, aeromag anomaly >20km) high grade magnetite discovery (two deposits so far), ~10km S of Inca and ~45km form Walvis Bay Port. After >25,000m of drilling completed, initial JORC resource is imminent. Preliminary scoping study is now underway zeroing in on a potential 30mt high grade magnetite resource, and a 15 year 2mtpa operation. Mount Isa Project (QLD, Australia): Now the main focus of Australian exploration (1,688 km2). DYL is targeting an initial 11-18mlb resource (current 3.4mlb), DYL sees potential for ~30mlb longer term. Other Australian Projects: Napperby (NT): Scoping Study completed, 7.4mlb resource. Grass Roots Exploration: DYL holds interests in >28,000 km2 tenements in NT, QLD. Currently low priority. Investment Comment: DYL’s flagship Omahola project could be producing 2.2mlbpa U3O8 by the end of 2014. It demonstrates robust PFS economics, (~US25$/lb opex is lower than that indicated for EXT’s proposed 480ppm 15mlbpa Husab Project). Capex is low, suggesting a high IRR and DYL could conceivably finance 100%. Economics will be further enhanced by including the Ongolo alaskite deposit.As this project’s star brightens, the DYL share price drifts lower in a uranium-unfriendly market. This suggests value. Our six month target range is A$0.20-A$0.25/share as the Omahola PFS advances.



It has taken only five years for DYL’s intensive uranium exploration programs, mainly in Namibia, to have grown the Namibian resource base rapidly from zero to 93mlb contained U308. Focus is now shifting towards uranium production from the Omahola Project, supported by a strong exploration pipeline.

Source : Deep Yellow

An updated PFS for DYL’s flagship Omahola project, incorporating high grade Ongolo ore, should be released early in 3Q11. A DFS during calendar 2012 could lead to a development decision early in 2013

and commissioning late 2014.

Source : Deep Yellow



Energy and Minerals Australia Limited



Our DCF valuation for EMA is based on the November 2010 Scoping Study of the Ambassador Deposit at the Mulga Rock Deposits (WA), and RCR’s uranium price assumptions (base case US$55/lb long term,

A$/US$ = 0.82 long term). This gives a target price of A$0.30/share (fully diluted).

ENERGY AND MINERALS AUSTRALIA, VALUATION

Target

Uranium Price (Low) (High)

Resource/Target Valuation Discount A$m A$m A$mProjects (mlbs) US$/lb for risk

+ Mulga Rock, Ambassador Resource 28.4 2.83 35% 98 26 199+ Mulga Rock, Emperor and Shogun 31.2 0.52 40% 20 5 93

+ Ambassador Exploration 45.4 0.05 60% 3 2 4Sub Total 105 121 33 296

+ Cash 1.1 1.1 1.1+ Tax Losses 6.9 6.9 6.9

- Corporate 1.8 1.8 1.8Sub Total 6.2 6.2 6.2

EMA NET ASSET VALUE 127 39 302

Capital Structure

Shares 388 388 388Fully Diluted Shares* 418 418 418

EMA NET ASSET VALUE PER SHARE :A$/share 0.33 0.10 0.78

EMA NET ASSET VALUE DILUTED :A$/share fully diluted 0.30 0.09 0.72* Includes 30.042m performance shares plus in-the-money options

MULGA ROCKS PROJECT, AMBASSADOR DEPOSIT (based on November 2010 Scoping Study)

Equity

LONG TERM URANIUM PRICE^ :US$/lb 40 60 70 80 100

EXCHANGE RATE :AUUS 0.82 0.82 0.82 0.82 0.82

MULGA ROCKS URANIUM NPV @ 10% NOMINAL* :A$m 100% 26 133 199 262 323

MULGA ROCKS URANIUM NPV @ 10% NOMINAL* :US$m 100% 21 109 163 215 265NPV/SHARE :A$/share 0.07 0.34 0.51 0.67 0.83

* Includes a Scoping Study and Inferred Resource project discount of 35% of valuation: 35%

^Uranium contract price forecasts are US$68/lb in 1H11, US$65/lb to 1Q12, US$60/lb to 4Q17, thence long term price indicated.

MULGA ROCKS URANIUM PROJECT KEY ASSUMPTIONS*

RESOURCE ESTIMATES

Mt % Mlbs Kt

Conceptual Uranium Target

Mulga Rocks, Ambassador Resource 27.6 0.047 28.4 12.9

Mulga Rocks, Emperor and Shogun 27.8 0.051 31.2 14.2Ambassador exploration targets 42.0 0.049 45.4 10.3Total 97.3 0.049 105 37.4

MINING METHOD ISR (In Situ Recovery) for sandstone; open pit for lignite-hosted uranium and other metals.

PROCESS METHOD Dual front end, and combined product preparation facility Front end: solvent extraction (SX) for ISR; acid leach and RIP (Resin in Pulp) for lignite

SX and RIP pregnant fluids combined at RIP plant for uranium precipitation

PRODUCTION RATE (U3O8) :tpa 1,200 Study assumes 50/50 ISR and RIP

:mlbspa 2.6

CAPITAL COSTS :A$m 260 Combined ISR and RIP operations

RECOVERY - URANIUM :% 65-82 ISR 65%, RIP 82%. Likely to change with further testing.

OPERATING COSTS :US$/lb 23 Net of by-product credits: base, rare and minor metals, gold

EMA assumes A$600m revenue over life of mine

TAX :% 30

ROYALTY (WA) :% 2.5 Royalty rate for metal

MINE LIFE :Years 12TARGET COMMISSION DATE : 1Q14

* These figures are preliminary in nature and are intended to provide only a general indication of project potential scale and economic robustness. Further refinement

may result from the Pre-Feasibility Study, which should commence in 2H11 and include ISR borefield trials.

Valuation Sensitivity

Sensitivity

Uranium



Energy Resources of Australia Limited*

15.08

Debt (A$m) - June 11F


Major shareholders: Rio Tinto (68.39%);


Cash (A$m) - June 11F

Price/Cash (x) Drilling - RAB (m)

Price/Book (x)

Listed company options: Land holding ('000 ha)*

*Ranger only. Quarters refer to calendar year.

Jabiluka

Jabiluka

Jabiluka

Ranger Stockpile Stockpile - Measured

Mineralised Material (est.)

* Ranger cut-off grades: 0.02% U3O

8 open pit; 0.15% U

3O

8 underground; 0.02% U

3O

8 stockplie ore.

Contacts Directors

Status

20.5

45.3

33.3

214.797.5

0.10

214.7

67.7 148.9 148.90.49 0.20

Aus (NT)

Cut Off*

192.7192.7

[email protected]

0.07125.3

4.54

100%

Analyst: John Wilson

Darwin (NT), Australia H. Garnett (Non Exec Dir)

www.energyres.com.au J. Pegler (Non Exec Dir)

Option Type


Energy Resources of Australia Ltd

3.2

Route

Project

Partner

na Unconformity acid leach

20.3

Target

0.20

35,000

kt

(JORC); As at 31 December 2010.

-

1.7

Cut Off

-

Mt

Ore

100%

Resources (in addition to reserves)

Ranger Stockpile

Sub total

Reserves

Ranger No. 3 pit

Proved and Probable

44

0.25

-7

U3O8

-0.6%

35

7.9

-

Production

Tel: 61 (0) 3 9283 3628 (RIO) P. Taylor (Non Exec Dir) Jabiluka

Ranger

Project

David Skinner (IR - Rio Tinto) M. Coulter (Non Exec Dir)

Tel: 61 (0) 8 8924 3500 (ERA) R. Atkinson (Director)

Mr Rob Atkinson (CEO) D. Klinger (Chairman)

0.00.0

Ownership/ JV Process

0.00

0.12

100% 0.36Measured and Ind.

Inferred 100% 6.0

Unconformityna

Key Projects

33.3

184.8

0.0

0.10

57.5 126.810.9

38.1 0.04

183.5 404.6

126.80.53

0.02 15.1

0.20

Uranium

0


EPS (norm) (A¢/share)

Investment Points

0.8

7.1

16.4

Pending Aus (NT)

404.6

36.2

20.6

0.0

15.6 15.6

36.2

87.4

7.9

Company Comment

45.3

U3O8

7.9

20.50.21

U3O8

Project

Mlb

9.3

13.8

0.06

0.08100%

%

Classification

43

28.0

-3

20,000

273

%

2009a

788

788

191

4.13

3.95

No

BlackRock Investment Management (5.03%)

16

28.5

27.7

71

2010a 2011F

5,240

393

ERA.AU

0

27 June 2011

Uranium

Australia (NT)

Producer

Exchanges: ASX:ERA

191

to

Equity Production (t)

Share price (A$)


241

2012F

3,793

Net Profit (norm) (A$m)

EBIT (A$m)

YEAR END: Dec

25

130

-14

75

Fully diluted (m)



0Convertible notes (m)

Production and Financial Forecasts Capital Profile

8

47

143

ERA offers 100% exposure to uranium production and

exploration in Australia (NT).

ERA is the world's sixth largest uranium producer, mining

at Ranger (NT) since 1981.

Ranger 3 Deeps exploration decline development

decision expected 3Q11 (75mlbs;10mt @ 0.34% U3O8).

Heap leach EIS expected 1H11; DFS 2011. Production

potential 2014. 15-20kt U3O8 resource. High capex and

water management issues cloud project outlook.

Earnings guidance 1H11 loss of -$20m to -$30m.

Ranger operating costs under review. New project

production outlook highly leveraged to environmental,

social and economic outcomes.

Jabiluka mining lease granted - subject to development

consent from traditional land owners. 12 year mine life.

NPV $6.30/share - outlook remains volatile.

5.8

9.4%

38.0

5.8

1.7P/CF (x)

30.0

Drilling - Other/Diamond (m)

7.9

CFPS (A¢/share)

ERA's share price outlook remains volatile. Ranger project

expansions, production and opex outlook highly leveraged to

environmental, social and economic outcomes over the next 12

months. Operations back online June '11 after 1H suspension.

2,481

12

2,655 4,576

15

141

28.0

53.2-62.4 11.4

7.0

315

3.1%

13.0

28.0

PER (x)

Yield (%)

16.8

EV/EBITDA (x)

2.9

39Dividends (A¢/share)

1.9%

8

Ranger No. 3 pit Measured and Ind.

4.60

Sub total

100%

Ranger No. 3 pit

Proved and Probable

100%

38.7

7.9

-

11.9

3.8

14,933 21,081

Equity


Uranium

Exploration and Evaluation (A$m)

100% Uranium acid leach

Location

83

Metal

0.7%

7.0

Inferred

Stockpile

100%

100%

A$ 4.13

30,000

59

Mlb

2013F

EqtyU3O8

-

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

Jun

-10

Jul-

10

Sep

-10

Oct

-10

No

v-10

Dec

-10

Jan

-11

Feb

-11

Mar

-11

Ma

y-11

Jun

-11

Sh

are

Pri

ce (

$/S

har

e)

ERA - Energy Resources of Australia Ltd

Source: Bloomberg

Overview: ERA has mined ore and produced uranium oxide at Ranger (NT) since 1981. Ranger has beenthe world's second largest uranium mine with normalised production of ~5.5ktpa of U3O8, equivalent to 12% of global uranium mine supply. ERA also holds title to the Jabiluka deposit 22km north of Ranger. Ranger No. 3: Ranger is an open cut mine scheduled to operate till year end 2012 after which stockpiled ore will be processed through to 2020 (mining and processing is due to cease under the current leasearrangement Jan 2021, followed by a 5 year rehab period). ERA is reviewing potential for a possible underground mine and heap leach. Heap leach – potential production 2014 (to treat additional 15k to 20kt U3O8 within current pit and on stockpiles) over 5-6 years; EIS expected 1H11. ERA indicates heap leach production (capacity: 9mtpa low grade ore) to supplement Ranger mill production levels beyond 2013 after mining ceases in pit 3. The capex requirement is expected to be quite high, in part due to high water run-off management issues associated with the large surface areas involved in heap leach – which could render the project returns unviable at current uranium prices. Process water management and treatment: The current water management capital program and brine concentrator DFS is budgeted at A$287m; and $367m if the brine concentrator is approved 1Q12. It is not clear the extent to which the current expansion of water management and treatment facilities will cover for the possible requirements of a heap leach and/or to Ranger 3 Deeps. Ranger 3 Deeps’ exploration decline board development decision has been postponed till 3Q11. Ranger 3 Deeps resource target is 15m-20mt containing 30k-40kt U3O8 - defined over 1.2km strike (open to the north) and 250m-500m depth. Resource statement includes ~34kt U3O8 associated with Ranger 3 Deeps.A decision on the exploration decline at Ranger 3 Deeps, appears in part to hinge on the Mirrar, whose support would be required during the EIS for an underground mine, and mining lease extension beyond 2021. The absence of a clear indication in advance by the Mirrar adds to ERA’s project risk in committing to the exploration decline. Jabiluka: The project remains on long term care and maintenance, and will not proceed without the consent of the traditional owners - the Mirrar. All regulatory permits are granted (some may need to be reviewed). We model mine production to commence by 2020, subject to approval. Investment Comment: ERA’s share price has fallen from a 12 month high of ~A$15/share impacted by the nuclear accident in Japan, heavy rainfall leading to suspension of operations at Ranger for much of 1H11, and deteriorating outlook for the company’s expansion projects, compounded by a significant increase in the AUD. The share price is likely to remain volatile, leveraged to company news flow on the advancement of new projects at Ranger and guidance on the related impact to costs for treatment of low grade stockpiles and rehabilitation at Ranger.



Energy Resources of Australia Ltd

A SS UM P T ION S 20 09a 2010 a 2011F 2012F 2013F F IN A N C IA L R A T IOS 2009a 2 010a 2 011F 2 012F 20 13F

A$/US$ 0.80 0.92 1.0 6 1.04 0.97

Uranium Price - Spot (US$/lb) 46 47 59 55 55 Net debt/equity (%) -32% -24% 0 % -9% -10%

Uranium Price - Contract (US$/lb) 66 61 6 7 61 60 Net debt/ net debt + equity (%) -47% -31% 0 % -9% -11%

Uranium Price Realised (US$/lb) 51 48 55 50 46 Current rat io (x) 3.1 3.4 4 .3 5.3 5.3

EBIT/ interest (x) 35 5 1 9 3

Debt/operat ing cashf low (%) 0% 0% 0 % 0% 0%

EQUIT Y P R OD UC T ION Explorat ion/total overhead (%) 68% 76% 69% 69% 69%

Ranger Product ion (t) 5,240 3,793 2 ,4 8 1 4,576 2,655 EV/EBITDA (x) 1.7 5.8 11.9 3.2 7.0

Jabiluka Product ion (t) 0 0 0 0 0 M arket cap/net cash (x) 3.1 4.2 - 72 1.3 11.7 9.8

ERA Equity Product ion U3O8 (t ) 5,240 3,793 2 ,4 8 1 4,576 2,655 M arket cap/book (x) 0.8 0.8 0 .8 0.8 0.7

Cash Costs (US$/lb) 17.87 41.51 4 2 .8 3 18.88 18.92

P R O F IT A N D LOSS (A $ m) F IN A N C IA L SE N SIT IVIT IES

Revenues 781 586 3 3 8 482 279

Operat ing costs -218 -352 - 2 0 6 -157 -99 % Change in EPS for a 10% increase in:

Depreciat ion/amort isat ion -67 -61 - 54 -107 -70

Explorat ion and evaluat ion -30 -38 - 2 8 -28 -28 AUD/USD 131% -38% -137%

Corporate -14 -12 - 12 -13 -13 Uranium Price -157% 48% 168%

Other -59 -48 - 2 5 -37 -26

EB IT 3 9 3 75 12 14 1 4 3

Finance costs 11 16 15 15 15 % Change in NPV for a 10% increase in forecast minelife

Oper at ing pro f it / loss 3 8 2 59 - 3 12 6 2 8 commodity assumptions for:

Tax -109 -12 - 11 -43 -13 B ase + 10 %

M inorit ies 0 0 0 0 0 A $/ share A $/ share %

N et p ro f it / loss 2 73 4 7 - 14 8 3 15 Uranium Price 6.32 9.53 51%

Net other 0 0 0 0 0

Net prof it / loss (reported) 273 47 - 14 83 15

B A LA N C E SH EET (A $ m) VA LUA T ION (A $ m) Q 2 11

C ash and dep osit s 2 54 18 8 - 1 6 7 8 0

Total current asset s 449 412 2 2 4 292 305 A ssumpt ions B ase " W hat if "

PP&E 4 70 54 0 6 59 6 77 6 70 Long Term Contract Uranium Price (from 2018) :US$/lb 55 70

Total non-current assets 910 1011 113 0 1149 1142 Long Term AUUS 0 .8 2 0.82

Total assets 1359 1423 13 54 1441 1447 Pro ject s

Total current liabilit ies 145 122 51 55 44 Ranger 100% NPV@10% US$5.30/ lb 3 4 9 950

Reclamation reserves 199 300 3 0 0 300 300 Jabiluka - factor 40% 100% NPV@10% US$2.94/ lb 4 3 8 1002

Lo ng t erm debt 0 0 0 0 0 R esources

Total non-current liabilit ies 247 351 3 51 351 351 Ranger 100% 241.6 mlb US$2.75/ lb 6 19 990

Total liabilit ies 393 472 4 0 2 405 394 Jabiluka - factor 40% 100% 163.0 mlb US$0.64/ lb 9 7 200

Equi t y 9 6 7 9 51 9 52 10 3 6 10 53 Explorat ion 55 85

A sset s

Tot al deb t 0 0 0 0 0 Cash and deposits 2 8 28

Net debt -254 -188 1 -67 -80 Rehabilitat ion Fund 0 0

Average shares (fully diluted) (m) 191 191 19 1 191 191 Other 0 0

Liab il i t ies

F LO W OF F UN D S (A $ m ) Debt 0 0

EB IT D A 4 6 0 13 6 6 6 2 4 8 113 Corporate - 8 0 -80

Cash f low from operat ing act ivit ies Reclaimation reserve - 3 0 0 -300

Operat ing surplus 560 224 12 8 324 177 N et A sset s 12 0 6 2 8 76

Corporate -14 -12 - 12 -13 -13

Net f inancing cost -1 -6 - 14 -13 -13 Fully Diluted Shares (m) 19 1 191

Net tax paid -132 -75 - 2 5 -33 -29 N et asset s/ share ( A $/ share) 6 .3 2 15.0 8

Net explorat ion paid -30 -38 - 2 8 -28 -28

Other non cash items -134 -51 2 7 17 17

N et cash f rom o perat ing act ivit ies 2 4 9 4 2 76 2 54 112 Valuat ion/Reserve lb :US$/lb 4 .6 1 10.98

Cash f low from invest ing act ivit ies Valuat ion/Reserve & Resource lb :US$/lb 1.6 0 3.81

Capital expenditure -37 -45 - 174 -125 -63

Other non cash items 0 0 0 0 0

N et cash f rom invest ing act ivit ies - 3 7 - 4 5 - 174 - 12 5 - 6 3 OWN E R Share %Cash f low from f inancing act ivit ies

Net proceeds from issue of shares 0 0 0 0 0 Rio Tinto 68

Dividends paid -65 -63 5 -29 -5

Net proceeds from borrowings 0 0 0 0 0

N et cash f rom f inancing act ivit ies - 6 5 - 6 3 5 - 2 9 - 5

Net change in cash 147 -66 - 9 3 100 44 R anger Product io n R ange

P R O D UC T ION ST A T IS T IC S

R ang er 10 0 %

Ore Treated (kt) 2268 2400 13 0 9 2600 2600

Head Grade (%) 0.26 0.19 0 .2 3 0.20 0.11

Recovery (%) 88 87 8 9 88 89

Recovered grade (%) 0.23 0.17 0 .19 0.18 0.10

U3O8 Produced (t) 5240 3793 2 4 8 1 4576 2655

Equi t y Product ion ( t ) 52 4 0 3 79 3 2 4 8 1 4 576 2 6 55

C ash C ost s ( U S$/ lb , est . ) 17.9 4 2 3 .14 3 0 .0 0 18 .8 8 18 .9 2

D IR EC T OR 'S IN T ER EST S Shares

Jab iluka 10 0 %

Ore Treated (kt) 0 0 0 0 0

Head Grade (%) 0.00 0.00 0 .0 0 0.00 0.00

Recovery (%) 0 0 0 0 0

Recovered grade (%) 0.00 0.00 0 .0 0 0.00 0.00

U3O8 Produced (t) 0 0 0 0 0

Equi t y Product ion ( t ) 0 0 0 0 0

C ash C ost s ( U S$/ lb ) 0 .0 0 0 .0 0 0 .0 0 0 .0 0 0 .0 0

Product ion Costs ($/t) 0.00 0.00 0 .0 0 0.00 0.00

Year YearYEAR END: Dec



Extract Resources Limited

10.80






Price/Book (x)

ASX/TSX lis ted options: Net asset backing (Ac/share)

*Uranium prospective tenements only, both held and under application.

Resources (includes Reserves)

Husab Zone 1+2

Husab Zones 1-5

Total Resources


Contacts Directors

Mr Jonathan Leslie S Galloway (Non Exec Chair)

(CEO & MD)

Tel: 61 (0) 8 9367 2111

South Perth, WA, Australia N. MacLachlan (Non Exec)

www.extractresources.com J Main (Non Exec)

A Clayton (Non Exec)

[email protected]

Partner

Alaskite

583.3 0.040 100

JV ProcessTarget

Early Expl.

0

Adv. Expl

0.0

Project

Namibia

LocationStatus

74.8

Project

84.6

100% uranium focus in Namibia. Expl'n/dev't budget

~A$60m pa, cash ~A$75m, production potential 2014.

Husab Uranium Project resource 488mlb @418ppm, the

world's fourth largest uranium-only resource.

Husab Project is a potential >600mlb uranium deposit.

DFS completed: targets 15mtpa, 15mlbpa uranium

operation, US$1,660m capex, US$28.50/lb opex. First

production possible in 1H14.

Chinese state-owned CGNPC has sought to gain control

of EXT through agreed bid for EXT parent, KAH.

Retracted CGNPC bid at A$10.61 share level - we think a

revised offer after 10 August at >A$9/share is likely.

A$9.00/share for EXT is equivalent to only ~US$3.95/lb

(Basis: 600mlb RCR Husab resource target), and

approximates our NAV assuming US$65/lb U3O8 price.

RIO unlikely to bid, will seek cooperative involvement?

25.8

Investment Points

9.2 Cash backing (Ac/share) 29.8

83.8

Key Projects

Namibia

100%

Namibia

2.5

0

Namibia

DFS

Mlb

101.9

74.8

Acid leach

92.2

Early Expl.

Alaskite

100

Type Route

Acid leach

0.046 100

0.0

na

na

Calcrete

U

U

17

No

(JORC)

Ownership/

28.8 32.8

Capital rais ings, net (A$m) **

0

34.5

MlbKt

Cut Off

63.0

270

- -

270

0.00

6.3

61.31

0

80,000

-

89.41

270

0.00

-

270

10.80

85

251.0

295,000

0.11.3

251.0

00

320,000

3.00

91

EXT.AU

1

Uranium

Namibia

Advanced exploration, DFS

Exchanges: ASX:EXT, TSX:EXT, NSX: EXT

Capital Profile

10.14

Share price (A$)


Options and performance rights (m)


251Number of shares (m)

Fully diluted (m)

Major shareholders: Kalahari Uranium Ltd (42.8%), Rio Tinto Ltd (14.2%)

27 June 2011

7.68

5.96

0.0


1928.0

1928.0

Convertible notes (m) 0 Exploration/(Expl.+ Corporate) (%)

252

Itochu Corporation (10.0%).

1.4

Ore U3O8

251.0

0

100% 0.02153.3

Company Comment

80.5

A$ 7.68


2011FJun-11F 2010aMar-11a 2011FYEAR END: June

75

43.23

8.10

Drilling - RC/Diamond (m)

0

77

243.2

273,198

84

Corporate (A$m)

60.0049.267.99 10.00

Funding duration at current burn (yrs)

Land holding ('000 ha)*

Drilling - RAB (m)

250.9Shares on issue (pr end) (m shares)

50,000

-

61.26

U

100%

86.5

0

74.8

Classification

Ida Dome

Husab 100%

Project Option

25.1

59.5 130.0

Equity Mt

100% 224.8

357.7163.3

Analyst: Dr Tony Parry100%

100%

I Zaamwani-Kamwi (Non Exec)

J Leslie (CEO & MD)

R Chamberlain (Non Exec)

Uis

Hildenhof

25.1

0.0

234.2

Alaskite

512.8

11.4 Ida Dome Ind & Inferred

224.8Probable

Uranium

100205.0 0.050

noneU

none

none

Metal

none

Meas & Ind. 100% 355.0

512.8

% ppm

357.7

Extract Resources Limited


U3O8 U3O8 U3O8 Eqty


270


2.64

0

130.0Inferred 175.0 0.034 100

We expect that China's CGNPC will come back for another tilt at

EXT's 42.8% shareholder, Kalahari, at a 'flow through' level for EXT

of at least A$9.00/share, given the huge strategic potential of EXT's

Husab resource (DFS completed, potential >600mlb resource).

70.1

Reserves

Husab Zones 1+2


0.00

2.00

4.00

6.00

8.00

10.00

12.00

Jun

-10

Aug

-10

Sep

-10

Oct

-10

No

v-1

0

Dec

-10

Jan

-11

Feb

-11

Mar

-11

May

-11

Jun

-11

Sh

are

Pri

ce (

$/S

har

e)

EXT – Extract Resources Limited

Source: Bloomberg

Overview: EXT’s Husab Project in Namibia (discovered Feb 2008) is the world’s fourth largest uranium deposit, located immediately south of the Rössing uranium mine (RIO 69%). Exploration is advancingtowards a ~600mlb U3O8 total resource, based on new targets for additional zones, which would make it the world’s second biggest in situ uranium-only resource. Envisaged mine production of 15mlbpa U3O8,

would make it the world’s third biggest uranium mine based on 2015 global mine projections. Husab Uranium Project – Status: Total resource currently is 488mlb contained U3O8 at 418ppm. The recently completed DFS is based on open pit development only of zones 1 and 2 (Probable Reserves of 205mt @ 497ppm for 225mlb U3O8). Including 25mlb Ida Dome resource total is now 513mlb. Total Resource Target: Resource drilling is on-going, focusing on a fifth discovery zone (Zone 5 SE of Zone 4) and Middle Dome (~1km S of Zone 5), which we think will create additional resources to push total resources towards 600mlb contained U3O8. Furthermore, >40% of the ~14km prospective Rössing S trend from Zone 1 to Salem in the South remains to be explored. Recent intercepts of mineralisation further South (outside the Rössing S anticline) at Pizzaro, indicate there will be plenty of additional targets to further increase the resource base beyond our projected 600mlb level. Husab DFS and Further Project Optimisation: The much anticipated DFS for the Husab Project was released during 2Q11. Key data from the DFS is summarised in the table on following page. The total capex of US$1,659m (including pre-strip) was not a surprise, but the forecast opex of US$28.50/lb (pre royalties) was, given the original Scoping Study forecast of US$23.60/lb. The project is still highly viable at the current long term prices around US$70/lb (it would be viable at <US$50/lb), but not quite as attractive as the Scoping Study indicated. EXT has commenced further optimisation work, predominantly finer grind sizes and elevated leach temperatures, to increase recoveries and lower $/lb opex. The recent resource update after intensive infill resource drilling in Zones 1 and 2 now suggests a mine life > 20 years. RCR Valuation: Our assessed NAV for EXT is A$7.27/share (f. dil.) using the DFS data for Husab, assuming long term uranium forecast of US$60/lb, A$/US$ = 0.82. Using US$70/lb long term price would raise assessed NAV to A$10.78/share. Corporate Developments: The much publicised withdrawal of the “possible” friendly bid from the State-owned China Guandong Nuclear Power Group (CGNPC) for Kalahari Minerals plc (AIM:KAH; EXT’s 42.79% major shareholder) at £2.90/share was due to the UK Takeovers Panel blocking a proposed lower bid after the Japanese earthquake/tsunami disaster. The original bid, at the time, equated to a ‘flow through’ of A$10.61 per EXT share (or ~US$4.70/lb based on our target 600Mlb resource). Given the long term strategic value of Husab, and the KAH board’s cards now on the table in terms of monetising their gains, we think it is likely CGNPC will come back with a revised offer after the statutory three months wait before a lower bid can be tabled for KAH. CGNPC would be clear to lodge a lower bid after 10 August 2011. Interestingly, they had sought to lower their first bid to £2.70/share, which equates to A$9.56 per EXT share. Why wouldn’t CGNPC come back with a bid for KAH priced at least at A$9.00/share equiv. for EXT? This would be US$3.95/lb based on our 600mlb Husab resource target, and is our NAV discounting ~US$65/lb LT uranium price. KAH shareholders should still be keen to cash in at that level (£2.55/share). Investment Comment: We think CGNPC is likely to lodge a revised bid for control of EXT at a level of >A$9/share, after the mandatory wait period, and will also be required to bid for EXT. As such, the shares currently present value. Our NAV assuming US$70/lb l.t. uranium (A$=US$0.82) is A$10.78/share.



Our EXT valuation is based DCF modelling of the Husab Uranium Project @ 10% nominal discount rate, based on DFS parameters. The Base Case uses US$60/lb long term uranium price (A$/US$ = 0.82), while

the ‘High’ valuation (A$10.78/share) is based on US$70/lb long term uranium price.

EXTRACT HUSAB PROJECT NPV VALUATION

Base

Reserves/ Case ^ (Low) (High)

Resources Valuation A$m A$m A$m

Projects (Mlbs) US$/lb

+ Husab Uranium Project Zones 1 & 2 (NPV @ 10%) * 225 (actual) 4.11 872 412 1332+ Ida Dome (25Mlb confirmed resource) 25 (actual) 2.00 47 33 71

+Further resource potential (Additional Zones)** 350 (RCR target) 2.50 825 578 1238

Sub Total 600 3.08 1745 1023 2641

+ Cash (Jun '11F) 74.8 74.8 74.8+ Tax Losses 40.3 40.3 40.3

- Corporate 31.8 31.8 31.8

Sub Total 83.3 83.3 83.3

EXT NET ASSET VALUE 1828 1106 2724

Capital Structure

Shares 251.0 251.0 251.0

Fully Diluted Shares 252.6 252.6 252.6

EXT NET ASSET VALUE PER SHARE :A$/share 7.28 4.41 10.85EXT NET ASSET VALUE DILUTED :A$/share fully diluted 7.24 4.38 10.78

IMPLIED 600Mlb TARGET RESOURCE VALUATION :US$/lb 3.23 1.95 4.81* NPV of Husab Project is based on DFS parameters including current total of only 225Mlb Reserves - see below.

** Exploration target is based on further potential outside zones 1 and 2

^ Target price based on RCR forecast long term uranium contract price US$60/lb; A$/US$ = 0.82. Low = US$50/lb, High = US$70/lb l. term price.

HUSAB URANIUM PROJECT NPV (DFS, April 2011, Zones 1+2, 225Mlb mineable reserve, 16 year mine life, 15Mlbpa U3O8)

EquityLOW TARGET HIGH


LONG TERM EXCHANGE RATE :AU$/US$ 0.82 0.82 0.82 0.82 0.82

HUSAB URANIUM NPV @ 10% NOMINAL :A$m 100% -49 412 872 1332 1791HUSAB URANIUM NPV @ 10% NOMINAL :US$m 100% -40 338 715 1092 1469NPV/SHARE :A$/share -0.19 1.64 3.47 5.31 7.14

Husab Project NPV's are nominal NPV's, based on DFS data, using 10% discount rate. 0%

^ Uranium long term contract price forecasts are based on flat US$65/lb until 4Q17, then long term price kicks in

HUSAB URANIUM PROJECT KEY ASSUMPTIONS - based on April 2011 DFS*

RESOURCE ESTIMATESBasis: Current Probable Uranium Reserves - Zones 1 & 2 only

Mt % Mlbs

Husab Zones 1 & 2

Probable Reserves 205 0.0497 224.8Total ore mined 205 0.0497 224.8

MINING METHOD Two Open Pits to 412m (Zone 1) and 330m (Zone 2) depth, LOM strip ratio 7.0:1

Conventional truck and shovel

PROCESS METHOD Dedicated Uranium Plant

Conventional sulphuric acid agitated tank leach (same as Rössing mine)Ion exchange, solvent extraction, precipitation, drying.

PRODUCTION RATE :Mtpa 15.0

:Mlbspa U3O8 15.0

CAPITAL COSTS :US$m 1480 Plus sustaining capex of US$20mpa (US$1.33/t).

RECOVERY - URANIUM :% 90

OPERATING COSTS :US$/t 28.50 (unescalated)

:US$/lb 28.50 (US$32.00/lb incl. royalties, marketing, transport)

TAX :% 35.0

ROYALTIES :% 3.0

MINE LIFE :Years 16 based only on current Zone 1 & 2 reserve

TARGET COMMISSION DATE : 1H14

* These figures are based on DFS data released in April 2011. Considerable refinement may result from the Mine Optimisation and Resource Extension Programme

("M.O.R.E.") which is underway for the Husab Uranium project. June 2011 resource update suggests mine life >20 years.


Sensitivity

Uranium



Greenland Minerals and Energy Limited



Kvanefjeld and exploration targets, southern Greenland: there is considerable potential to extend the current resource (incl. 350mlbs U3O8 and 6.6mt of rare earth oxides). Drilling 2011 (15,000m, 3 diamond

rigs); Zone 2 and 3 targeting high grade, near surface tonnage; and initial drilling at Steenstrupfjeld.

Development schedule for Kvanefjeld: The updated PFS is expected in 2Q11. The Greenland Gov’t has

given permission for a DFS, which should include pilot and demonstration level processing plants. Production is possible in 2015.



Peninsula Energy Limited

0.16





. Cash (A$m)

Price/Book (x)

Listed company options:* Net asset backing (Ac/share)

* PENOA (3c, exp 30 June 2012); PENOC (3c, exp 31 December 2015). *Uranium prospective tenements only, both held and under application. Quarters refer to calendar year.

^ Ross Permit Area includes a Vanadium resource (MII): 2.33mlbs V2O

5 grading 0.0196%.

Contacts Directors

Mr. John (Gus) Simpson

Executive Chairman

Tel: 61 (0) 8 9380 9920

West Perth, WA, Australia

PENOA, PENOC

Karoo - Site 45

Total Lance*

74%

Historic 0.4

2.8

20.3

15.2

Status

4.8

Aus (WA)

US (WY)

[email protected]

0.041

74%


www.pel.net.au M Barton (Non Exec Dir)

ISR

J Simpson (Chairman)

M James (Non Exec Dir)

W Grigor (Non Exec Dir) 100% na

Project

Roll front

A Marlow (Non Exec Dir)

Type

J Cornell (Exec Dir)Analyst: John Wilson

Western Australia 100%

Raki Raki

S'stone

Karoo - Site 29

Karoo Projects

Ownership/

BEE74%

HistoricKaroo - Site 22

1.0

U3O8 Eq

Lance Uranium Projects

1.5

3.9

RoutePartner

0

9.1Capital raisings (A$m)



0.0

0

Mid Expl. S. Africa

PFS

6.1

0

8.2

Early Expl.

Project

26.0


Key Projects

41.4

U3O8

Process

2.1

200

2.2

6.9

acid

20.3

1.3

0.3

Target

0.6

41.4

* Inferred Resource is 30.2mlbs grading 0.042% U3O

8. Measured and Indicated Resources are 11.25mlbs U

3O

8 grading 0.045%.

3.7

3.6

Focused on uranium - CY11 exploration and evaluation

budget A$11m.

Lance: PFS (Lyntek, Jul '10) potential production 2012 at

1.5mlbspa U3O8; C1 opex US$19.88/lb or US$13.52/lb

with Vn credit; initial capex US$53m (total US$79.2m).

Lance mine permits and EIS lodged Dec '10. DFS

expected 3Q11. Construction 2H11. LOM 13 years.

Deep disposal test well permit granted (WDEQ, Apr '11).

Additional resource target is 95-145mlb U3O8 grading

0.036-0.05%.

Initial forward sales contract (Feb '11): 1.15mlbs

U3O8, priced at ~US$70/lb, 7 year term.

Key strategic alliance with NuCore Energy (June '11)

and appointment of Jim Cornell to the Board.

Karoo Project: shallow, high grade uranium and moly

confirmed (1H11) from surface to 80m (Site 22).

Intercepts include 6.6ft @ 0.36% U3O8 and 0.26% Mo.

2012 resource target 30mlb U3O8.

Lance - Barber

Reserves

50%

Historic

Lance - Ross

various

JV

Option

U (Mo)

Metal

9.2

0.111

Location

100%

5.4 2000.050

6.0

Investment Points

2.0

M,I,I

Company Comment

4.7

15.216.5

Ore

0.076

44.5

74%

0.146

208

Fully diluted (m)

157.0

Au Mid Expl.

26.0


Land holding ('000 ha)*

Drilling - RAB (m) 0

40,000

-

%

Cut Off

ppm

40.0

26.2

0

U na

U

65

2530.9

0

52,857

272

2.11.4


3040

0.0


Major shareholders: Pala Investment Holdings (13.96%) 272

-

Corporate (A$m)

4.60

1.10

Performance shares (m)

YEAR END: June

22.7



Share price (A$)

Number of shares (m) 2093


0.075

0.03

PEN.AU

900

Uranium, Molybdenum, Gold

USA (WY), South Africa, Australia (WA), Fiji

Prefeasibility Study

Exchanges: ASX:PEN

Capital Profile


27 June 2011

Equity

(JORC)

31.3

1.2

Project

Kt

1.2

Mt

3.8

0.0

26.0

46 Exploration/(Expl.+ Corporate) (%)

100%

M,I,I

0.041

157.0

20,000

0

0.042 200

eU3O8

35.415.4

0.0

75

0.5

2086.5 2086.51628.1

7381

2012FJun-11F 2010aMar-11a 2011F

4.913.81

13.56

4.401.56

Peninsula Energy Limited

PEN is approaching a production decision at Lance ISR project in WY.

Resource 41mlbs U3O8 (+25%, Jun '11). DFS 3Q11. Production potential

2012. A$15m conditional financing announced at 50% premium to

market with strategic investor NuCore Energy (June '11).

11.57 8.002.55Exploration and evaluation (A$m)

A$ 0.075


10,000

0

62

2086.5

272

3.8

272

eU3O8eU3O8

-

Mlb

0

10,000

0.4

2.9

-

272

-

Lance - Ross Permit Area^ 100%

0

7.1

0.0

ASX:GPR

na

Fiji

Resources

Mlb

Uranium


M,I,I

18.8

na na

Classification

2.7 5.9 5.9

0.00

0.02

0.04

0.06

0.08

0.10

0.12

0.14

0.16

Jun

-10

Aug

-10

Sep

-10

Oct-

10

No

v-1

0

Dec-1

0

Jan

-11

Feb-1

1

Ma

r-11

May-1

1

Jun

-11

Sh

are

Pri

ce

($/S

hare

)

PEN - Peninsula Energy Limited

Source: Bloomberg

Overview: Formerly Peninsula Minerals (name change Nov ’10), PEN is listed on the ASX and has operated under the current management team since 2007 when key US projects were vended into the company. Lance Uranium Project (USA, WY): Located in the northeast part of the Powder River Basin comprises 13 project areas (12,000 ha) including the Ross and Barber prospects - targeting roll front style uranium. The project area was discovered in the ‘70’s by JV partners Nuclear Dynamics and Bethlehem Steel (NuBeth) and drilled between 1970 and 1979. NuBeth drilled 5000 holes (912,000m). PEN acquired the project 2H07 with a database of drilling and pilot plant data (from Ur-Energy). 22 roll fronts have been defined over a combined strike length of 305km (190 miles) containing 13 project areas with drill defined mineralization. PFS (Lyntek) July 2010 confirms development potential for satellite production and a centralised processing plant at Ross from 4Q12 with capacity to produce up to 3mlbspa U3O8, commencing at 1.5mlbpa. Initial production is targeted from Ross and Barber. Lance project resource target is 95 to 145mlbs U3O8 – in addition to current JORC resource. PEN drilling 2H11 is aimed at uplifting resources at Barber (one rig) to support feed to the processing plant and establishing additional resource areas outside Ross-Barber. The outlook for permitting in Wyoming is positive: Uranium One (TSX:UUU) received its NRC operating license (Oct ’10) for Moore Ranch; and 2 other companies (TSX: URE, URZ) are expecting NRC permits in 2011. URE received a draft Source and Byproduct Materials License from the NRC Jan ’11; URZ Permit to Mine (WDEQ) received Jan ’11. PEN’s UIC – deep disposal well permit (for 5 test wells, Apr ‘11) is a significant step towards mining and confirms a level of confidence by the WDEQ in the company’s technical approach. Karoo Project (South Africa): Located in the Karoo Basin of the Western, Eastern and Northern Cape Provinces; tenements comprise 6 project areas (198,000 ha) with defined U-Mo mineralisation across stacked sandstone units identified from surface to 40m. The region hosts Areva’s historic Ryst Kuil uranium mine (est. 40mlbs @ 0.1% U3O8). Three of PEN’s project areas host historic resources drilled by JCI and Union Carbide (~1,300 holes) in 1970-80’s which defined high mineralisation grades of 0.07 to 0.14% U3O8. PEN has an exploration target of 90 – 150mlbs U3O8 grading 0.07 to 0.14%. Drill results (1H11) confirm high grade uranium and molybdenum from surface to ~75m depth: intercepts include 6.6ft @ 0.36% U3O8 and 0.26% Mo; and 6.6ft @ 0.31% U3O8 and 0.25% Mo. Mid-term resource target 30mlbs grading 0.07 to 0.14% U3O8 (2012). Investment Comment: PEN is on-track for completing the Lance DFS and timely permitting of its WY based ISR project, with production visibility 4Q12. The “nuclear renaissance” is expected to regain momentum, notwithstanding recent events in Japan. PEN base case NPV, with full de-risking of Lance post commissioning, is A$0.095/share fully diluted (at US$50/lb realised uranium price, AUD/USD 0.80 and 10% discount rate). At US$60/lb U3O8, post commissioning, NPV rises to A$0.12/share fully diluted (and at US$70/lb, A$0.14/share). The NuCore Energy strategic alliance and conditional A$15m placement (at a 50% market premium, announced June ’11) adds confidence to project status and positions PEN for the next phase (post DFS) of project financing and development. WY is a uranium friendly state, and is well positioned to fast track regulatory approvals.



Base

Resource Base NPV Adjusted

Equity Val'n NPV Factor Value

(%) (US$/lb) (A$m) (%) (A$m)

Assumptions

Realised Uranium Price : US$/lb 50 50 40 60 70 80

Exchange rate: AUUS 0.80 0.80 0.80 0.80 0.80 0.80

Projects

Lance project : NPV @10% 100% 7.09 166 75% 125 88 162 200 237

Resources and Exploration

Lance (resource est. +100%) : NPV @10% 100% 3.73 88 75% 66 49 82 98 113

Karoo/other 10 10 5 7 12 15

Sub-total Exploration 98 76 54 89 110 128

Assets

+ Cash 26 26 26 26 26 26

+ Tax Losses 6 6 6 6 6 6

Liabilities

- Debt 0 0 0 0 0 0

- Corporate 36 36 36 36 36 36

- Reclamation 0 0 0 0 0 0

PEN Net Assets 260 197 138 247 306 362

Fully diluted shares (m) 3039.8 3039.8 3039.8 3039.8 3039.8 3039.8

Cash on Option Conversion 28.2 28.2 28.2 28.2 28.2 28.2

PEN Net Asset Value per share : A$/share 0.12 0.094 0.066 0.118 0.146 0.173

PEN Net Asset Value Diluted : A$/share dil 0.095 0.074 0.055 0.091 0.110 0.128

Sensitivity of Net Asset Value to Equity Raising Price:

PEN Net Asset Value (assuming A$40m capex raised through share issue at A$0.07) 0.066 0.049 0.080 0.096 0.111



RESOURCE ESTIMATES

Uranium Resource Grade Uranium

Cutoff Mlbs

Resource (M,I,I) Lance 200ppm 41.4 (as at June 2011)

RCR modelling assumptions Lance 200ppm 18.8

MINING METHOD IN-SITU RECOVERY (ISR)

PROCESS METHOD CENTRALISED URANIUM PLANT

1. Ion exchange and vanadium circuit

2. Potential satellite facilities

RESOURCE CONVERSION :% 40-60% (Inferred to Indicated or better)

TONNAGE DILUTION :% na

GRADE UPLIFT :% 6

BASE CASE ASSUMPTIONS

PRODUCTION RATE :tpa na

AVERAGE HEAD GRADE - U3O8 :% na

HIGH GRADE :% na

RECOVERY - URANIUM :% 76 PFS: 80% recovery in-situ; then 95% plant recovery

URANIUM PLANT CAPACITY :mlbspa 3.00 Assumes expanded resource base (not included in base case NPV)

INITIAL URANIUM PRODUCTION :mlbspa 1.50 Production rate based on PFS resources

VANADIUM PRODUCTION :mlbspa 1.20

CAPITAL COSTS - INITIAL DEVELOPMENT :US$m 53

CAPITAL COSTS - TOTAL :US$m 79

OPERATING COSTS: (C1) :US$/lb 19.88

less by-product credit :US$/lb 6.36 PFS assumes vanadium production of 1.2mlbspa; price US$7.50/lb.

(C2) :US$/lb 21.42

(C3) :US$/lb 30.02

TAX :% 30

ROYALTY :% 6

MINE LIFE :Years 13 Years

COMMISSION PROJECT : 4Q 2012 36 month ramp-up.

These figures are preliminary in nature and are intended to provide only a general indication of project scale and economic robustness. Considerable

refinement may result from subsequent feasibility studies, expected to be completed in 3Q11.

Includes sustaning capex of US$13.5m and US$2m for permitting and land

acquisition.

44.5 0.041

18.5 0.046

LANCE URANIUM PROJECT KEY ASSUMPTIONS (derived from PEN PFS (Lyntek) - July 2010)

Tonnes

Mt % U3O8

PFS includes vanadium circuit: production ratio V2O5:U3O8 0.8:1.

Cogema's Crowe Butte project recovers vanadium through IX circuit.

PENINSULA ENERGY LIMITED VALUATION

Adjusted

Uranium Price Sensitivity

(A$m)



Toro Energy Limited

0.18

Debt (A$m) - Jun 11F *




Price/Cash (x) Cash (A$m) *

Price/Book (x)


^ Uranium tenements held or applied for

Reserves

Resources

Wiluna: L. Way & C'pede Meas Ind & Inf.

Dawson-Hinkler Well Inferred

Mineralised Material (est., non compliant with JORC)

Total Mineralised (non JORC)

Contacts Directors

Mr Greg Hall

Managing Director

Tel: 61 (0) 8 8132 5600

Norwood, SA, Australia D. Carter (Non Exec Dir)

A Coles (Non Exec Dir) OZL/MNT IOCGU

Cameco Unc+S'stone

Route

Early Expl.

na

na

Calc/Alask25% na

100% Alk. LeachCalcretenone

Analyst: Dr Tony Parry

[email protected]

100% uranium focus. Expl. + Eval. budget ~A$20m pa.

Cash ~A$25m (Jun '11F) to fund Wiluna BFS, Wiluna

resource expansion and exploration/acquisitions.

Wiluna resource consolidation strategy has significantly

enhanced Wiluna Project value; resource equity grown

from 24mlb to nearly 40mlb U3O8 at ~A$1/lb cost.

Wiluna BFS underway, draft EIS lodged, resource

upgrade expected soon.

Potential Wiluna production mid 2013: ~2.0mtpa ore,

alkaline tank leach, A$260m capex, ~2.2mlbpa output.

Wiluna could be a pacesetter as the first of the WA

calcrete projects underway.

TOE has ambitious target of 100mlb resources by 2015.

This means exploration and acquistions are likely to play

an increasing role in the medium term.

Cashed-up OZL could bankroll Australian/overseas

acquisitions to reach TOE's stated resource target.

www.toroenergy.com.au

G. Hall (MD)

J. Nitschke (Non Exec Dir)

P. Lester (Non Exec Dir)

E Smyth (Non Ex. Ch'man) JV /

Option Metal

24.6

U3O8

2.9

Investment Points

0.7

No

Type


00

U3O8Project

54.5

Project

29.70

12.5

5.6

12.3

Mlb

0.0467

0.0

Uranium


Classification U3O8

2.8

Capital raisings (A$m)

0

24.6

0

Mt

Company Comment

Equity % ppm

U3O8

Reserves and Resources/Mineralised Material(JORC)

U DYL

U

23

Fully diluted (m)

U

Ore

85

-

0.51.3

4,690

-

15,500

964.9

11,500 8,000

11.7

24.632.2

3.3

11.2

2.6

Drilling - RAB (m) 20,000

-

964.9

3,500

964.9

2,000

4,000


Land holding ('000 ha) ^

70.4

985

HSBC Nominees (1.5%), Allarrow Pty Ltd (1.0%)

0.0

Junket capitalisation (undiluted) (A$m)

Major shareholders: OZ Minerals Ltd (42.5%), ANZ Nominees (2.3%),

0.70Corporate (A$m)

Jun-11F

0.22


0.07

0.0652 week range (A$/share)

TOE.AU

20

Uranium

Australia (WA,NT,SA), Namibia

BFS and Exploration

Exchanges: ASX:TOE

Capital Profile

to

Number of shares (m) 965

27 June 2011

Share price (A$)



Drilling - RC/Sonic/Diamond (m)70.4

0 Exploration/(Expl.+ Corporate) (%)



964.9

6.3

82

YEAR END: June

93

3.20

Mar-11a

Exploration and evaluation (A$m) 3.07

9.8

2011F

Toro Energy Limited

With TOE's regional Wiluna (WA) resource base edging towards

40mlb, focus will now be on the BFS (due 4Q11) for this A$260m,

2.2mlbpa project. Meanwhile, the Toro team has ambitions to

create a much bigger company via exploration and acquisitions.

A$ 0.073


2012F2010a

9.46

4,690

14.0016.04

2.843.51

73

4.2

3.20

81

15,500

4,2254,690 4,690

-

0.00.0

20.2100%

100%

Key Projects

Ownership/

U

100%

Wiluna

none

9.50

Early Expl.na

0.0

Target

6.2

Palaeo/IOCG

Partner

Kt

Cut Off

Process

Status

Project

11.1

13.85

0.0293

0.0548 200

200 2.8

0.0

Early Expl. Aus (SA)

Aus (SA)

0.0

24.4

0.0

U

Lake Mackay

Namibia

Mount Woods 100% U rights

Birrindudu 50.01%

30.630.6

NamibiaEarly Expl.

0.0

BFS Aus (WA)

Total Resources

Mlb

Eqty

0.0

24.4

Aus (WA)

Location

6.2

8.3

* Jun 11F cash assumes A$4.5m Norilsk payment 2Q11.

964.9

15,000

0.0

2,000

60.6

-

0

1.0

13.2

0.00

0.02

0.04

0.06

0.08

0.10

0.12

0.14

0.16

0.18

0.20

Jun

-10

Aug

-10

Sep

-10

Oct

-10

No

v-1

0

Dec

-10

Jan

-11

Fe

b-11

Ma

r-11

May

-11

Jun

-11

Sh

are

Pri

ce (

$/S

ha

re)

TOE - Toro Energy Limited

Source: Bloomberg

Overview: TOE listed on the ASX in March ‘06 and is a pacesetter in advancing calcrete style uranium projects in Australia. Wiluna is at BFS stage and could be WA’s first new uranium producing project. Toro’s Aspirational Targets: TOE has ambitious growth targets: 100mlb U3O8 resources by 2015 (currently 30mlb) and production of 5.5mlbpa by 2020. Meeting these will require TOE (supported by major shareholder Oz Minerals - ~A$1.4bn cash) to look beyond the current core asset at Wiluna. Wiluna Regional Resource Consolidation: We have previously highlighted the potential for TOE to increase its Wiluna resource base in a 40km radius of Wiluna, with strategic acquisitions/alliances. TOE has now achieved this to great affect. The acquisition of the Firestrike discovery in 4Q09 was the first step. Then came the purchase of 100% of the Dawson-Hinkler Well calcrete uranium project (20km W of Centipede) from U3O8 Ltd (ASX:UTO). The final key piece of the Wiluna jigsaw puzzle is about to be put in place with the imminent completion of the purchase of a uranium mineralised zone called Millipede, bordering TOE’s Centipede deposit. The purchase consideration is pitched at a similar level (~A$1.00/lbresource) to the Dawson-Hinkler Well acquisition. These acquisitions at ~A$1/lb are very cheap by international benchmark standards. Our modelling suggest this regional consolidation could increase forecast Wiluna Project NPV by ~A$25m (~2.6cps) if it provides an additional 5-6 year’s mine life. Wiluna BFS: A PFS was completed Sep ’08, followed by Optimistation Study in Sep ’09. The BFS, based on the original 24mlb, 550ppm resource, 2.2mlbpa production, 10 year mine life, is now underway. The Environmental Management Review Program/Draft EIS (a milestone for WA U projects) was lodged with the EPA (WA) in March 2011. This triggers the important public exhibition phase. Resource drilling is on-going to upgrade a large part of the resource from Indicated to Measured during 2H11. Recent deeper drilling at Lake Way has identified higher grade mineralisation (>1,000ppm) at around 10m depth, which is positive. Bench scale testing of the proposed agitated chloride alkaline leach followed by direct precipitation (avoiding solvent extraction) has yielded good results. A pilot plant test program will commence in Jun ’11. The BFS should be completed in 4Q11, which could see a go-ahead decision and financing (possibly with a strategic partner) in 1H12, potential production in 2H13. Other Exploration: Lake Mackay (WA): Theseus discovery is promising - potential buried palaeochannel – will need to wait until 3Q11 for drilling due to wet season. TOE has extensive U exploration portfolio in SA, NT, WA and Namibia (~43,000km

2). Mount Woods (SA): TOE has 100% U

rights for OZL’s currently aggressive exploration for IOCGU targets – recent promising U-only hits. Investment Comment: We think that TOE’s ambitions in the uranium sector go beyond Wiluna, which is the company’s first production project and a WA pacesetter. TOE’s talented team, with possible support from cash rich major shareholder Oz Minerals, is likely to look to project acquisitions, as well as maintaining focus on its extensive exploration ground, to generate a much increased uranium market presence, and increased shareholder value. The Toro team really knows its way around the uranium market, and that could well be an increasing source of excitement, and upside, for Toro’s shareholders in coming quarters, when we will also see the Wiluna BFS released.



Toro is expecting its strategic grass roots uranium exploration holdings in Northern Territory, South Australia, Western Australia and Namibia (JV with DYL) to play an important role in its ambitious plans to

achieve a resource base of 100mlb contained U3O8 by 2015.

Toro’s value-enhancing strategy of building Wiluna into a significant uranium production hub over the past year has meant that the consolidated regional resource target is now approaching 40mlb (r.h.graph), a big increase from the 24mlb original Lake Way/Centipede resource. Additional resources have been acquired at a very cost effective ~A$1/lb. This will give a significant boost to the Wiluna NPV and project viability.

0

5

10

15

20

25

30

35

40

3Q10a 4Q10a 2Q11F

Wil

un

a R

eg

ion

al

Re

so

urc

e B

as

e (

mlb

U3O

8)

Lake Way-Centipede Dawson-Hinkler Well

Millipede Firestrike/Albion Downs



Ur-Energy Inc

3.35


Enterprise value (C$m)

Major shareholders:


Cash (C$m) - Jun 11F

Price/Cash (x) Cash (C$m)

Price/Book (x)

Listed company options: Net asset backing (C¢/share)

* Quarters are stated on calendar year basis. "F" indicates RCR forecast.

Lost Soldier

Lost Soldier

Total

Mineralised Material* (est., non compliant w ith NI 43-101)

Contacts Directors

T Parker

JM Franklin

P Macdonell

0.037

100%

sandstone

JV

na

0.170 na

No

100% naU

Option

Investment Points

25%

100%Nebraska [email protected] (CN)

U3O8

1.5 3.3

WY (US)Development

Project

WY (US)

Status

Adv. Expl.

0.0

2.0

Type

na

31.7

Resources*

100/25%

Inferred

300

1.5

4.0

0.44

U

33.0

U3O8 Eqty

100%

4.8

Option

Lost Creek

Ownership/

73.8 74.0

Project Metal

Process

0.065

na

Mr Wayne Heili

0.8

36


Classification

34.1

URE is focused on uranium in Wyoming, where it holds

resources (equity) of 25.6mlbs U3O8.

Lost Creek ISR planned rate 1mlbspa U3O8 with mill

capacity 2mlbspa, low opex of US$19.66/lb, pre-

production capex $35.1m (spent $24m to date).

Lost Creek exploration upside on adjacent blocks.

Resource upgrade and step-out drilling 2H11.

Wyoming is considered uranium friendly and has ISR

mines at Highlands/Smith Ranch (CCO).

Grassroots exposure to unconformity style uranium

targets in the Thelon and Baker Lake Basins, CAN, and

sandstone hosted deposits in Nebraska.

Potential for return to +C$2.50/share at U3O8 US$55/lb.

Resource upside potential (over 4 projects) could be to

88mlbs U3O8 based on historic estimates.

Key Projects

Target

sandstone WY (US)

Littleton, Colorado

EN (Eagles Nest) 100%

sandstone

Indicated

Analyst: John Wilson

Tel: 1 (720) 981 4588

LC North and South

Lost Soldier

Lost Creek

Bootheel

Ownership/

8.6 3000.049

* Lost Creek Resource calculated by polygonal method. Resource by GT contour method (used for March 2011 Preliminary

Assessment economic analysis) is 5.22mlbs grading 0.055% U3O

8 Measured and Indicated, 0.78mlbs grading 0.051% Inferred.

^Reminder that units are metric (tonnes).

Inferred

ISR

Location

ISR

Route

WY (US)Permttingsandstone

U

WW Heili Partner

naWW Boberg

Thelon Bas in

ISR

ISR Adv. Expl.25%

unconform. na Early Expl.

170.9

Black Rock Inc (16.2%)

Market capitalisation (undiluted) (C$m)

U

Uranium

11

0.0 Cash backing (C¢/share)

Bootheel

0

Hauber Indicated

Ore

100%

100% 2.0

Inferred

Reserves

Lost Creek

80,000

26

0Drilling - RAB (m)

Mt^ U3O8


0.0

34.1

30.2

39


4.5

105103

57

3.5

26

3.0

94

0

105

0

103

80,000

URE.CN

Capital Profile

2010aYear End: December

1.15

20,000 80,00020,000

0


0

8.5

2626

0.03.2Capital rais ings (C$m)

26

135.4

27 June 2011

Mar-11a

0.0

Jun-11F

6.1



109.7Fully diluted (m)


35.5

Cut Off

ppm

NI 43-101

4.88

0

72.1

0.0

77.3

4.60

0

6.4

Kt

Code for reporting mineral resources - Canadian:

4957

Mlb

U3O8

Company Comment

Mlb

76.5

33.0

0

3.3

%

43.4

0.00.0


33.9 46.2

0

U3O8

0

Tenement costs ($m per year)

0.0

12.2

1.5

0.0 0.0

0.051

27.1

300 0.9 2.0

to

5.25

0.76

Corporate (C$m)

103.6 1.50

4.611.16Options and warrants (m)

0.7

0.0

3.8

13.7

0.0

5.5

Funding from JV partners (C$m)

Uranium

USA, Canada

Permitting

Exchanges: TSX:URE, AMEX:URG

2011F


Share price (C$) 1.65


2012F

0.5

100% 1.4 0.055 301 0.8 1.8

na

Ur-Energy Inc

Lost Creek ISR project (WY) is nearing the end of the permitting

process. The NRC issued second Draft Source Material and

Byproduct License (May '11) and confirmed final completion of SEIS

(Jun '11). Production potential 1H12; 1mlbspa U3O8, opex US$20/lb.

4.700.75Exploration and evaluation (C$m) 6.00

C$ 1.65

WY (US)

Early Expl.

100%

ISR

sandstone

U

NE (US)ISR

Adv. Expl.sandstone

COO and President

Crosshair

www.ur-energy.com

U

na

U

JT Klenda (Chairman)

1.8

30.3

8.4

Measured, Indicated 100% 9.4 12.2

53

0.0

8.4

0.31.1Bootheel Indicated 25% 1.3 0.038

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

Jun

-10

Aug

-10

Sep

-10

Oc

t-10

No

v-1

0

De

c-1

0

Jan

-11

Mar

-11

Ap

r-11

May

-11

Jun

-11

Sh

are

Pri

ce (

$/S

hare

)

URE - Ur-Energy Inc

Source: Bloomberg

Overview: Ur-Energy listed on the TSX Nov. '05 and the NYSE- AMEX in Jul ‘08. Its most advanced uranium projects are roll front style with in-situ recovery (ISR) potential in the Great Divide Basin, WY. Wyoming ISR Projects (Great Divide Basin): URE holds +50,000 mineral acres of claims in Wyoming. Its key priority is to advance Lost Creek. Other, earlier stage projects include LC North and South, Lost Soldier, EN (Eagles Nest) and the Bootheel JV. Historic resources total +60mlbs U3O8. Lost Creek: The resource is defined along a 4.8km (3 miles) strike with mineralisation occurring in 4 main sandstone horizons between 96m (315 feet) and 213m (700 feet) deep. Mineralised beds average 4.9m (16 feet) thick. URE expects leach recovery of 80%. The most recent NI 43-101 Preliminary Assessment (March2011) considers 6 year life of mine (LOM) pre-production capex of US$35.1m (with 10% contingency for ISR plant [$17.5m], plus engineering, drilling, etc), life-of-mine capex $85.6m, cash opex of US$19.66/lb for production of 1mlb/yr U3O8 (plant capacity 2mlb with potential for satellite or toll treatment). Considerable capex on infrastructure and equipment ($24m) has already occurred. Initial extraction will be from Mine Units #1 and #2 in the HJ horizon (delineated by +200km down-hole drilling), which each consists of multiple roll-fronts. URE’s development plan is to always have three units, or three years’ production (at 1-2mlbs U3O8 per unit), ahead of permitting and mining. Definition of a third mine unit is planned to include both the HJ and underlying underlying KM horizon (potential cost of delineation drilling $13-17m). Lost Creek is in the advanced stages of permitting, and equipment purchasing has started. The NRC Supplementary EIS was approved June ‘11 and the NRC Source and Byproduct Materials License now awaits final sign off of the Safety Evaluation Report (SER) – which is in the process of final approvals. Final permits from the BLM and WDEQ (Permit to Mine) are expected to follow. In terms of expansion, there are exploration targets at Lost Creek, LC North and LC South. Drilling in 2010 (159 holes for 101.270ft or 30.9km) intersected multiple regional redox fronts. A further 2000-3000 holes are recommended ($15-20m). At Lost Soldier, 22.5km NE of Lost Creek. mineralised horizons consist of 14 sand units at 30m to 137m depth. Investment Comment: Based on production at Lost Creek and anticipated exploration success (as detailed on next page), NPV10 for production of 1mlbspa U3O8 is ~C$150m (at C/US 0.90) assuming LT contract price US$55/lb (current US$60/lb). With other assets, our NAV remains C$269m or ~C$2.50/share, and we expectto see the share price revisit this level as Lost Creek demonstrates successful project commissioning anticipated in 2012, and positive market sentiment returns to the sector. Potential share price catalysts in 2011: resource expansion at Lost Creek, granting of final permits, and award of forward sales agreements.



Ur-Energy has a pipeline of prospective ISR projects in the Great Divide Basin, Wyoming. The main focus is on Lost Creek, which is ready for construction on receipt of permits. Target valuation C$2.50/share has

been run at a conservative long-term US$55/lb U3O8.

Ur-ENERGY INC. VALUATION

Target

Uranium Price* (Low) (High)

Resource/Target Valuation Discount A$m A$m A$m

Projects (mlbs) US$/lb for risk

+ Lost Creek current resource 8.5 13.24 15% 125 106 181

+ Lost Creek area exploration* 26 0.89 40% 26 13 65

+ Lost Soldier current resource 14 4.00 30% 62 42 70

+ Other resources, equity (Wyoming) 2.6 2.00 30% 6 1 10

Sub Total 51.1 219 162 326* 24-28mlbs U

3O

8, average 26mlbs

+ Cash 35.5 35.5 35.5

+ Tax Losses 28.5 28.5 28.5

- Corporate 13.9 13.9 13.9

Sub Total 50.1 50.1 50.1

URE NET ASSET VALUE 269 212 376

Capital Structure

Shares 102 102 102

Fully Diluted Shares 109 109 109

URE NET ASSET VALUE PER SHARE :C$/share 2.64 2.08 3.69

URE NET ASSET VALUE DILUTED :C$/share fully diluted 2.56 2.04 3.54

* at LT US$55/lb U3O

8 (nom.)

LOST CREEK ISR PROJECT, WYOMING (CURRENT RESOURCE)

Equity


EXCHANGE RATE :C/US 0.90 0.90 0.90 0.90 0.90

LOST CREEK URANIUM NPV @ 10% NOMINAL* :C$m 100% 106 130 144 156 180

LOST CREEK URANIUM NPV @ 10% NOMINAL* :US$m 100% 95 117 129 140 162

NPV/SHARE :C$/share 1.03 1.28 1.41 1.53 1.77

* Includes a pre-production project discount of 15% of valuation: 15%

^Uranium price assumptions are US$68/lb to 2Q11,$65/lb to 1Q12, $60/lb to 4Q17, thence long term price indicated.

LOST CREEK URANIUM PROJECT KEY ASSUMPTIONS*

RESOURCE ESTIMATES

Mt % Mlbs kt

Conceptual Uranium Target

Lost Creek resource, (Polyg: Ind. + Inf.) 10.6 0.049 8.5 3.9

Lost Creek area, exploration upside 22.2 0.049 26.0 11.8

Total 32.8 0.049 34.5 15.6

MINING METHOD ISR (In Situ Recovery)

PROCESS METHOD Solvent extraction (SX) and precipitation

PRODUCTION RATE (U3O8) :tpa 454 (This is 1mlbspa)

:mlbspa 1 to 2 Model: 1 year ramp-up, 1mlbpa ongoing.

CAPITAL COSTS :US$m 85.6 Pre-production is $35.1m, with initial 10% of borefield.

(Plant: $17.5m, pre-production $7.8m, initial wellfield $5.6m)

RECOVERY - URANIUM :% 80

OPERATING COSTS :US$/lb 19.66 Total cost US$42.65/lb including capex.

TAX :% 34 Corp. 15% at Jan '12; Ontario 14%; other 4.9%; land $200k.

MINE LIFE :Years 7+ Currently two years' production horizons have been defined.

TARGET COMMISSION DATE : 1H12

* These figures are intended to provide only a general indication of project potential scale and economic robustness. Further refinement may result during

production, which could commence in 1Q12 after final permitting and construction. Resources are as defined by the polygonal method.


Sensitivity

Uranium



Selected Uranium Sector Performance Charts

4

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shar

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Uranium Participaton Corp (TSX:U) Share Price(C$/share)

Source: Bloomberg

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Geiger Counter Limited (LSE:GCL) Share Price(GBP - p/share)

Source: Bloomberg

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)

Uranium Spot Price (U3O8)(US$/lb)

Source: BloombergSource: Bloomberg

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r-07

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Uranium Focused Energy Fund (TSX:UF.UN) Share Price (C$/share)

Source: Bloomberg

0

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D

Merrill Lynch Uranium Equity Index

Source: Bloomberg

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D

DAX global Nuclear Energy Index

Source: Bloomberg



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/sh

are

Cameco Corporation (TSX:CCO) Share Price (C$/share)

Source: Bloomberg

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n-1

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(US

D/m

etri

c to

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e)

McCloskey Newcastle fob Steam Coal Spot Price/Australia (USD/metric tonne)

Source: Bloomberg

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(US

$/b

arr

el)

West Texas Intermediate (WTI) Cushing Crude Oil Spot Price (US$/barrel)

Source: Bloomberg

4000

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8000

10000

12000

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16000

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Dow Jones Index

Source: Bloomberg

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Morgan Stanley World Index

Source: Bloomberg

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/sh

are

Paladin Energy (ASX:PDN, TSX:PDN) Share Price (A$/share)

Source: Bloomberg



Report Contributors

Australian based analysts John Wilson: John has a background in mining, finance and equity research. He worked on Wall Street for 6 years and has covered US, Australian and Latin American mining stocks. He has also worked with BHP in their minerals division. Qualifications include an MBA from the Wharton School of the University of Pennsylvania and a Bachelor of Engineering from the University of Sydney. Tony Parry: Tony has extensive experience in metallurgical process development, (working with MIM Limited for five years) and in mining equity research, equity sales and mining corporate finance (working in London for five years and subsequently Perth). He was a founding Director and CEO of an ASX listed exploration company and has been engaged extensively as a strategic planning consultant to many small-medium enterprises. Tony’s qualifications include a BSc (Hons) in Metallurgy and a PhD in Metallurgy from the University of NSW. Murray Brooker: Murray has a background in mining and consulting as a geologist. He worked for North Limited (now part of Rio Tinto) for 10 years and for Parsons Brinckerhoff (a global engineering consultancy). He has 20 years’ experience assessing exploration projects in Australia, New Zealand, Mexico and South America. Murray has an MSc in Geology (James Cook University, Qld) and an MSc in Hydrogeology. He was also a founding Director of an unlisted Australian geothermal company. Canadian based analysts Khaled Sultan: Khaled has a background in oil and gas, mining and equity research. He has 11 years of industry experience, and most recently has spent more than four years focused on equity research and investment analysis. He has worked with one of Canada's top five investment banks in Toronto covering the precious metals sector with a focus on gold equities. He covered 21 gold companies including senior producers; Barrick, Newmont, and Goldcorp. Qualifications include a Bachelor of Engineering from the University of Western Ontario and an MBA from the Rotman School of Business (University of Toronto).



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Cautionary Note to U.S. Investors Concerning Estimates of Measured, Indicated and Inferred Resources: RCR publishes mineral resources based on standards recognized and required under securities legislation where listed mining and exploration companies make their exchange filings and uses the terms “measured", "indicated" and "inferred" mineral resources. U.S. investors are advised that while such terms are recognized and required under foreign securities legislation, the SEC allows disclosure only of mineral deposits that can be economically and legally extracted. United States investors are cautioned not to assume that all or any part of measured, indicated or inferred resources can be converted into reserves or economically or legally mined. We recommend that US investors consult Securities and Exchange Commission Industry Guide 7 – “Description of Property by Issuers Engaged or to Be Engaged in Significant Mining Operations” for further information about the use of defined terms and the presentation of information included in this report.

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