Uranium One History - The company's vision

URANIUM ONE IS ENGAGED IN EXPLORATION AND DEVELOPMENT OF URANIUM RESOURCE PROPERTIES IN SOUTH AFRICA, KAZAKHSTAN, AUSTRALIA, CANADA AND THE UNITED STAES.

by 2012, which will distinguish Uranium One among its peers. The advantages of ISR mining are numerous, especially with regards to the environment.

[Source]

Ore bodies that meet the geological requirements for ISR are found primarily in Kazakhstan, the United States of America and Australia. Uranium One’s ISR operations are either producing or are in an advanced state of development in all these countries.

Uranium One’s conventional mining operations include DRUM in South Africa and Shootaring Mill in the United States, which is earmarked for refurbishment.

DRUM has a management and skills transfer agreement with black economic empowerment consortium, Micawber 397 (Pty) Ltd, and DRUM. Micawber 397 has an undivided 26% interest in DRUM.

The mining industry has traditionally had strong union memberships and, while this has decreased in the First World, unions are a powerful force at DRUM. Leadership and experienced managers deal with such issues at senior levels of the organisation.

The outlook for uranium is very positive. This is largely because of the greater awareness of the environmental benefits of nuclear energy as a means of reducing greenhouse gas emissions.

Looking back:

Defining moments in the history of the company

In January 2004, ISR operation in southern Kazakhstan commenced production at Akdala Uranium Mine, which is 100% owned by the Betpak-Dala Joint Venture, in which Uranium One has a 70% interest. The mine is currently pro-ducing 2,600,000 lbs U3O8 per year. The South Inkai Uranium ISR Project in southern Kazakhstan, also 100% owned by the Betpak-Dala Joint Venture, is at an advanced state of production, with inferred resources at 40,390,000 tonnes containing 43.5 million pounds of U3O8.

In February 2007 ore processing commenced at DRUM, a conventional shallow underground operation 20 km from Klerksdorp, South Africa, which is one of the world’s largest undeveloped uranium deposits.

THE WAY FORWARD :

Opportunities & challenges

The corporation’s five-year vision is to maximise shareholder returns by delivering on its projects and growing Uranium One into a low-cost, top-five international uranium producer.

2012 is targeted as the year for achieving this vision.

Safety, health and environmental issues are coming increasingly to the fore, particularly in the major developed countries. Uranium One’s Safety, Health, Environment and Sustainability Committee reviews and monitors the corporation’s policies, procedures

and activities on a quarterly basis.

Mining experience has over the past decades dropped to levels where it is increasingly difficult to find relevant skills. Such a situation leads to inflated salaries as well as competition between mining companies. The skills shortage at the DRUM Operation is

being addressed by an aggressive training and development programme.

The Honeymoon ISR project is expected to commence production in 2008, as is the South Texas Mining Venture, while production is expected to begin in 2010 at both Powder River Basin Projects and Shootaring Uranium Mill.