Raven-Horseshoe Deposits

Wednesday, August 23rd 2006

Raven-Horseshoe hosts a total historical resource estimate of 6.7 million tonnes at an average grade of 0.16% U3O8, representing approximately 23 million contained pounds of U3O8. (Note: this is a historical resource estimate completed by Gulf Minerals (“Gulf”) that was not estimated using current Canadian Institute of Mining, Metallurgy and Petroleum categories, and for which no current resource or reserve confidence categories were applied.) The deposits are of the basement-hosted type and are located approximately 5 kilometres southeast of the edge of the Athabasca Group sandstones, which normally cover uranium deposits in the Athabasca Basin. The deposits are also located less than 5 kilometres south of Cameco Corporation’s (“Cameco”) Rabbit Lake Mill. The deposits are comprised of two shallow plunging zones developed over a 2.5 kilometre strike length, and at depths of 50 to 450 metres below surface. Mineralization is hosted by zones of hematite alteration which fringe the margins of a broad, south dipping, fault-controlled clay alteration zone, in a geometry that is comparable to some roll-front style uranium deposits. Unlike unconformity-type deposits such as McArthur River and Cigar Lake, Raven-Horseshoe is within competent pre-Athabasca basement rocks with no overlying sandstone that could allow underground ramp access and conventional underground mining methods if an economic resource is defined. Cameco’s producing Eagle Point Mine, located 17 kilometres to the northeast, is also in basement rocks and is mined by such methods.