The Prospect currently hosts an Inferred Mineral Resource estimate (MRE) of 35.9 million pounds U3O8 reported in accordance with the JORC Code.

The exploration drilling has continued to be focused on the high priority target area in northeastern portion of Nyota, around one kilometer to the northeast of the existing resource, where the results of initial drilling have highlighted a significant new area of mineralization.

The results returned from an additional 35 exploration drill holes have expanded this new area of shallow mineralization. The drilling has extended the mineralization to the north and west, and it now occurs over a total area of around one square kilometer. Significant intersections have been recorded at shallow depths, with thicknesses up to 42 meters. Select intercepts include:

MNEA0074 42m at 816 ppm eU3O8 3m;

MNEA0067 20m at 496 ppm eU3O8 28m;

MNEA0079 28m at 304 ppm eU3O8 surface;

MNEA0050 11m at 618 ppm eU3O8 38m and 8m at 495 ppm eU3O8 60m;

MNEA0073 17m at 354 ppm eU3O8 surface;

MNEA0060 13m at 400 ppm eU3O8 5m;

MNEA0067 10m at 467 ppm eU3O8 surface;

MNEA0055 11m at 311 ppm eU3O8 5m;

MNEA0046 8m at 421 ppm eU3O8 15m.

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.

The company has commenced a Pre-Feasibility Study (PFS) and committed to large drilling and trenching programs that started in May 2009.

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.

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. The three air drill rigs currently operating at Nyota have now advanced on to the testing of adjacent high priority exploration target areas.

To the end of September, 219 aircore holes for 12,960m 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 2009, and will be followed by a revised global MRE anticipated to be completed in the March quarter of 2010.