Grab samples at Arpeggio anomaly (similar setting to Ristretto) returns up to 0.39% U3O8

Additional sampling over previously reported Livanto and Sirius anomalies (high rare earths and uranium assays) is now complete with assays expected by December 2009.

The Ashburton Project comprises 14 granted tenements prospective for unconformity style uranium mineralisation and is situated south of Paraburdoo in Western Australia. All but one of the tenements form part of the U3O8 Limited – Cameco Australia Ashburton 50:50 Joint Venture which is operated by U3O8.

As previously reported, samples were collected from a number of prospects on the Canyon Creek project and assayed for a range of elements including rare earth elements, precious and base metals, arsenic, and uranium.

Samples were analysed by ICP-MS using a lithium borate fusion and uranium was reanalysed using a fusion XRF. All the samples reported here returned very low thorium values, consistent with their strong U2/Th radiometric signature.

As reported on November 4, 2009, the first two samples collected from the Bresnahan Sandstone at the Ristretto anomaly returned grades of 1.39% and 0.20% U3O8. Both samples showed strong anomalism in lead (0.3 and 0.1% respectively), as well as gold (0.45g/t and 0.04g/t) and arsenic (0.71% and 0.20%). Samples are also variably enriched in antimony, bismuth, cerium and copper.

As indicated earlier in the month, the Company believes that the sandstone-hosted anomalies are significant for the following reasons:

Their geochemistry suggests a strong affinity and similarity with other basementhosted uranium mineralisation in the region (e.g. Nobby’s anomaly).

The structural control of the mineralisation with associated bleaching of the sandstone and nearby increase in drusy quartz veining/quartz overgrowths.

The lack of coincident high concentrations of vanadium or phosphorus and an apparent lack of correlation with the iron content suggesting that these anomalies are not related to some supergene enrichment.

Their close vicinity to the unconformity (interpreted as about 200m deep) making them amenable to shallow drilling.

The identification of structures post-dating the sedimentary cover and localised uranium enrichment in basement lithologies in the immediate vicinity of the unconformity.

As a result, these anomalies could represent a zone of perched mineralisation located above basement/unconformity-hosted mineralisation, a common occurrence in a number of Mid-Proterozoic unconformity-related uranium deposits, in particular in the Athabasca Basin (Saskatchewan, Canada). The company now intends to better define the geometry of this anomaly and possible mineralised area by means of further detailed mapping, soil sampling where appropriate and ultimately drilling.