The results returned from an initial 42 aircore holes drilled to test a high priority exploration target in the north-eastern portion of the Prospect area have highlighted a new area of shallow mineralisation. The mineralisation lies about one kilometre to the northeast of the existing resource area, and remains open in all directions.

The results of a further 43 aircore holes, drilled to test for potential extensions to the large resource area located in the central portion of the Prospect area, have shown that shallow mineralisation extends to the north and southeast beyond the existing resource boundaries.

Select intersections include 3m at 1,942 ppm eU3O8, 15m at 229 ppm eU3O8, 11m at 252 ppm eU3O8 and 7m at 368 ppm eU3O8.

To date, a total of 135 aircore holes for 9,030 metres have been drilled as part of the exploration/extension drill program.

The resource infill and exploration/extension drilling programs are ongoing, along with a significant trenching program which is being undertaken concurrently with the drilling. These activities will lead to a steady news flow over the coming months as results become available.

This phase of exploration/extension drilling will continue until December, and will be followed by a revised global MRE anticipated to be completed in the March quarter of 2010.

Following the completion of a 40,000m drilling program in late 2008, an Inferred MRE of 35.9 million pounds U3O8 (39.9 million tonnes at 409 ppm) was estimated at Nyota in early 2009. The current MRE was used as a base case scenario for the Scoping Study completed in June 2009 which supports the technical and economic viability of the MRP and its potential to generate strong cash margins.

Drilling Program

An extensive drilling campaign comprising aircore, open-hole and diamond core drilling is being undertaken at Nyota, with a view to lifting the resource category and overall resource base of the Prospect.

Three air drill rigs are currently operating at Nyota and will remain at site until December. The drilling was initially focused on upgrading the resource classification of the current Inferred MRE to the Indicated category in the areas scheduled to be mined first. Two rigs have now advanced to the adjacent high priority exploration target areas.

To date, 135 aircore holes for 9,030m have been drilled as part of the exploration/extension drill program testing the high priority target areas.

This phase of the exploration/extension drilling program is scheduled to be concluded by December, and will be followed by a revised global MRE anticipated to be completed in the March quarter of 2010.

Drilling Results

The results of 85 aircore drill holes, representing the initial set of results from the 2009 exploration/extension drilling program at Nyota, are reported herein. The results are based on down-hole gamma logging data and are presented as “equivalent” U3O8 grades or eU3O8.

A total of 42 of the aircore holes were drilled to test a high priority exploration target in the northeastern portion of the Prospect area. These drill holes have returned outstanding results and highlighted a significant new area of shallow mineralisation.

This new area of mineralisation lies about 1km to the northeast of the existing resource area, and remains open in all directions. Significant intersections have been recorded at shallow depths (from surface), with thicknesses up to 56m.

The drilling completed to date has covered only a small portion of the about 1.5km2 target which was generated through the integration of airborne radiometrics and recent geological mapping. The drilling is ongoing with two rigs systematically testing the remainder of this target area.

The results of a further 43 aircore holes, drilled to test for potential extensions to the large resource area (12.3Mt at 405 ppm U3O8) located in the central portion of the Prospect area, have shown that shallow mineralisation extends to the north and southeast beyond the existing resource boundaries. Mineralisation has been intersected at shallow depths (from surface to a maximum depth of 75m), with thicknesses up to 20m.