Uranium One Completes Australian Joint Venture Transactions with Mitsui

Uranium One Inc. and Mitsui & Co., Ltd. of Japan announced that all regulatory approvals required to close the joint venture transactions previously announced on October 15, 2008 have been obtained. Mitsui has now acquired a 49% interest in the Honeymoon project and Uranium One’s Australian exploration portfolio including the Goulds Dam and Billeroo projects, and other prospective tenements on the Stuart Shelf and Eyre Peninsula.

The total minimum cash commitment from Mitsui will be approximately A$104 million for its share of Uranium One Australia’s business. The majority of these funds will be used to advance the development of the Honeymoon project through to commercial production.

Greg Cochran, Uranium One’s Executive Vice President Australia and Asia, said, “We greatly appreciate the efforts of the Federal and State regulators to provide the necessary approvals to close this transaction within a short timeframe and we are delighted to welcome Mitsui as our new partner and look forward to working with them. We expect to commence site development work at the Honeymoon project early in the New Year. The project has a design capacity of 880,000 lbs U(3)O(8) per year with an expected mine life of 6 years and production is expected to commence in 2010.”

South Australia State Premier Mike Rann commented, “The South Australian Government welcomes the agreement between Uranium One and Mitsui of Japan and looks forward to work beginning on construction of the Honeymoon mine. The decision by an overseas investor to commit millions of dollars to develop this mine amid the current global economic uncertainty highlights the confidence resource companies have in South Australia. The jobs and investment flowing from this joint venture agreement will support the long-term economic development of this State and provide important export earnings for Australia.”

Mr. Fuminobu Kawashima, Executive General Manager of Mitsui’s Energy Division, expressed his satisfaction at completing the transaction and said, “Mitsui has a long and successful investment history in various resource sectors in Australia. It is our great pleasure to extend our business portfolio through this transaction with Uranium One. We hope the joint venture will contribute to long-term growth of both companies and the local economy.”