for personal use only - asx2010/09/28 · review of operations grants ridge joint venture uran...

ANNUAL REPORT 2010ABN 93 107 316 683

MISSION: To acquire, def ne,

de

velop

and mine uranium deposits

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ABN 93 107 316 683ANNUAL REPORT 2010

Contents

Corporate Directory 1

Chairman’s Letter 2

Directors’ Report 3

Corporate Governance Statement 22

Auditor’s Independence Declaration 27

Consolidated Statement of Comprehensive Income 28

Consolidated Statement of Financial Position 29

Consolidated Statement of Changes in Equity 30

Consolidated Statement of Cash Flows 31

Notes to the Financial Statements 32

Directors’ Declaration 61

Independent Auditor’s Report 62

Shareholder Information 64

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Page 1

Corporate DirectoryDIRECTORS

Chairman

Mr Patrick Edward Ryan

Managing Director

Ms Catherine Mary (Kate) Hobbs

Non-Executive Director

Dr Wolf Martinick


Mr Shane Hartwig

JOINT COMPANY SECRETARIES

Mr Sam WrightMr Winton Willesee

PRINCIPAL PLACE OF BUSINESS AND REGISTERED OFFICE

Unit 6, Level 1, 680 Murray Street WEST PERTH, WA, AUSTRALIA, 6005

SHARE REGISTRY

Computershare Investor Services45 St Georges TerracePerth WA 6000

SOLICITORS TO THE COMPANY

Steinepreis PaganinLevel 4, Next Building 16 Milligan Street PERTH WA 6000

AUDITORS

RSM Bird Cameron Partners 8 St George’s Terrace Perth, WA 6000

STOCK EXCHANGE

Australian Securities ExchangeExchange Plaza2 The EsplanadePerth WA 6000

CONTACT DETAILS

Website: www.uranlimited.com.auEmail: [email protected]: + 61 (8) 9321 3445Fax: + 61 (8) 9321 3449Unit 6, Level 1, 680 Murray Street West Perth, WA, Australia, 6005

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CHAIRMAN’S LETTER

Dear Shareholder

This year has been a challenging one as the global financial downturn continues to affect market confidence, commodity prices, share price and availability of funds particularly for junior companies. The Company has responded to these challenges through careful cash management whilst continuing to explore our priority targets.

During the year the Company continued to develop its focus on uranium deposits in the south-west of the United States. Within the Grants Ridge Joint Venture the new Mesa Montanosa Project was identified, with the location of numerous historic high-grade drill results in an area of past uranium mining. A new joint venture was entered into over 10,000 acres covering numerous historic uranium mines in the Uravan area of Colorado and Utah subject to the completion of due diligence, which as at the date of this report was yet to be completed to the satisfaction of Uran. As part of this process the Company disposed of its non-core tungsten properties in Montana and California.

Drilling during the year at the Armijo and F33 Projects near Grants, New Mexico, was not generally encouraging. However a greater understanding of the uranium geology, arising from work at Mesa Montanosa, indicates that the mineralisation is related to faulting and folding rather than to algal reefs as had been understood. Geophysical and radon studies commenced to identify prospective structures.

As part of the focus onto USA and general cost containment procedures, Uran’s right to acquire Discovery Minerals Pty Ltd was not extended. The Company formed a view that it could not accept the terms of the Share Sale Agreement due to uncertainty as to whether Discovery’s applications for exploration permits over the Czech uranium deposits will be granted. However Uran retains its current 8.5% shareholding in Discovery Minerals.

Despite the very difficult funding environment over the year, the Company completed 3 raisings for a total raised $3,021,557 before costs in order to progress exploration activities in USA.

I will be retiring from the Board following the AGM in October, and take this opportunity to thank shareholders for their ongoing support through these difficult times.

PATRICK RYANChairman

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Directors’ Report

Your Directors present their report on the Company for the year ended 30 June 2010.

Directors

The names of the directors in office at any time during or since the end of the year are:-

Chairman

Mr Patrick Edward Ryan

Managing Director

Ms Catherine Mary (Kate) Hobbs


Dr Wolf Martinick

Non-Executive Director (appointed 25 August 2009)

Mr Shane Hartwig

Directors have been in office since the start of the financial period to the date of this report unless otherwise stated.

Principal Activities

The principal activities of the Company during the financial year were the exploration of uranium in a financially, technically, socially and environmentally responsible manner, to the ultimate benefit of its shareholders.

There were no significant changes in the nature of the Company’s principal activities during the financial year.

Mission

To acquire, define, develop and mine advanced uranium deposits.

Strategy

Uran Limited’s current projects are solely focussed on the exploration for uranium.The Company accumulated these projects through focussing on nations which are significant current or historic producers of uranium, with substantial past uranium exploration.

Our targets include: - operating or closed uranium mines; - identified resources or reserves; - drilled mineralisation adjacent to or on strike from these.

Our aim is to find good local partners who have strong knowledge of local uranium exploration and production.

Sovereign risk is important to the Company. We research it thoroughly prior to entry into a country, and monitor it carefully during our activities there.

The Company has and will continue to review and assess other potential projects in the minerals and energy sector.

Operating Results

The loss of the Company for the year ended 30 June 2010 after providing for income tax amounted to $1,693,759 (2009: $2,020,138).

Financial Position

The net assets of the Company are $2,499,459 as at 30 June 2010 (2009: $1,350,052).F

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REVIEW OF OPERATIONS

Grants Ridge Joint Venture

Uran Limited has a right to earn 65% interest in the Grants Ridge Joint Venture from joint venture partner Uranium Energy Corp (NYSE:UEC).The Grants Ridge Joint Venture comprises 2,270 hectares of registered mineral claims and freehold (minerals to owner) land, and consists of three projects which lie near to one another and close to the town of Grants, in the historic Grants Ridge Mineral Belt. This mineral belt was the largest uranium producing region in the USA in the previous production cycle, producing a reported 155,000 tons of U3O8.

The Grants Ridge project targets the Todilto Limestone, which hosts numerous historic underground and open-pit mines with grades ranging from 0.18 – 0.38% U3O8, with an average mined grade of 0.23%. This compares very favourably with resources currently being explored in other parts of the world. Historic uranium mines in the Todilto Limestone which used carbonate extraction also produced substantial amounts of vanadium at grades ranging from 0.03-0.5% V2O5.

The project is considered prospective for uranium, due to the high grade of historical production, at or near surface mineralization, excellent access and infrastructure, and active exploration and development in the area. In addition the acquisition cost is very low compared to similar projects in countries such as Namibia or Australia.

Background

The Grants belt produced over 340,000,000 lbs U3O8 (154,545 tonnes) prior to 1986 and was the largest producing uranium field in the USA in the previous production cycle. It is an area known for historic high-grade uranium production. At least two mines in the belt are currently in permitting to resume production.

There were a number of mines within the joint venture area, including underground operations at F33 and the Barbara J 1, 2 and 3 mines (Homestake), Lone Pine, and Flat Top; and open pits within the Armijo Project (Anaconda and others), and Rimrock. The Hope Mine abuts the north of Mesa Montanosa Project. Some of these have had significant production at high grades. The wide-spread mineralisation of the host limestone is considered to provide potential to delineate mineralisation suitable for bulk mining of large tonnages.

Grants Ridge Joint Venture, New Mexico, USA

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REVIEW OF OPERATIONS continuedKnown mineralisation within the project is in fairly flat-lying stratigraphy, at depths ranging from at surface at the Section 4 and Section 9 mines, from 30 to 70 metres at Mesa Montanosa, and up to 150 metres at F33 mine under a small mesa. The shallow depths together with high-grade mineralisation make the area very attractive for mining.

Previous metallurgical studies undertaken by Homestake of the Todilto limestone at F33 mine were reviewed by Perth-based metallurgical laboratories METS. Based on this review and comparison with other carbonate leach uranium studies, METS concluded that uranium would be readily amenable to low-cost carbonate leaching with high recovery rate of about 80-90%. It suggests that, assuming US$70/lb as a reasonable long-term contract uranium price, the lower cut-off grade for heap leaching may be less than 100ppm.

Mesa Montanosa Project

The Mesa Montanosa project lies within the Rick Claims, and was identified during the year as a result of locating historic drill records at the Bureau of Geology and Mineral Resources in Socorro, including drill logs, assay results and gamma logs for about 640 drill holes, showing widespread mineralisation ranging from 500 ppm to over 1% U3O8. This drilling was completed prior to 1980 by a number of companies, mostly by Homestake and Mid-Continent Uranium.

From the drill information recovered to date, about 160 drill holes have intercepts of greater than 1,000 ppm U3O8, including 26 which have intercepts of greater than 3,000 ppm.

The drill information which has been recovered and located on the ground so far shows that a number of coherent high-grade uranium occurrences lie in the northern part of Section 30. Mineralisation is generally 0.3 – 5 metres thick within the Todilto Limestone, at depths ranging from about 30 to 90 metres, and is related to NNW-trending faulting and anticlinal axes. This part of Section 30 has now been named Mesa Montanosa.

Best results obtained to date from the historic drilling, excluding those already mined, are set out below. Note that thickness for these results is quoted as originally reported in feet, not in metres.

Rick Claims, Grants Ridge Joint Venture

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REVIEW OF OPERATIONS continued

Historic Drill Results, Mesa Montanosa

Assigned Hole Number Interval (feet) U3O8 (ppm) Interval (feet) U3O8 (ppm)

33 1.4 4,300

311 3 4,300

314 3 5,100

315 2 1,900

317 3 4,300

319 3 7,600

320 7 3,400

321 3 5,600

322 4 6,400

323 3 3,400

324 3 3,600

331 5 3,300

435 6 4,400

451 4 4,800

452 6 5,600

459 12 4,200

460 4.3 5,700

467 6 5,600

479 3 2,000 4 5,000

529 4 5,300

673 3.5 4,700

684 5 5,400 3.5 3,400

686 3 4,900

720 6 4,600

723 4 4,000 3 2,400

724 3 7,000

729 4.5 6,400

775 8 10,900

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A full list of values greater than 1,000 ppm from the information obtained to date was reported in the June 2010 Quarterly Report Quarterly Report. There are also numerous drill holes which intercepted uranium values of 300 – 900 ppm in the same area.

Ground Penetrating Radar (GPR) survey was completed over the southern part of Section 30 where the target limestone lies within about 15 metres of the surface. Geological mapping is being carried out to locate folding and faulting favorable to mineralisation in the north of Section 30 where cover is too deep to permit use of GPR.

A radon survey is planned to cover selected areas once mapping is complete.

Preparation of applications for drill permits to confirm and extend the historic drilling has commenced. Drill locations will be selected once mapping is complete.

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Armijo Project

Armijo consists of 2 square miles (about 519 hectares) held under mineral claims, mineral leases, and private land owned by the joint venture. It covers numerous small open pit and underground mines which are reported to have been mined mainly in the 1950s and 1960s, at an average grade of 0.22% U3O8.

During the year a drilling permit was obtained for Armijo and drilling of 57 holes was completed. Greater thicknesses than expected of Todilto were encountered, up to 10 metres, but the grades were generally low even in areas where carnotite was visible at surface and in drill cuttings. For this reason drilling was halted while the geology and mineralisation was re-evaluated.

Vanadium values over 1,000 ppm V2O5 ranging up to 2,428 ppm are widespread and will be further evaluated for their impact on the economics of any future mining.

Exploration on Mesa Montanosa in 2010 indicates that uranium mineralisation is associated with north-south trending faulting and folding, rather than with thickening or algal reefs in the limestone as had been previously thought. Ground penetrating radar and a trial radon survey were carried out over parts of Armijo to try to locate prospective structures for future drilling. The radon survey was not successful because the radioactivity from surrounding mines and waste dumps is sufficiently intense to produce black films which do not provide further information.

F33 Project

The F33 Project is adjacent to and on strike from the historic F33 mine which was operated by Anaconda from 1954-1959 and by Homestake from 1974-76. Drilling had been carried out in the past over the F33 project and results of some of that drilling were located, indicating the presence of significant uranium mineralisation extending at least 200 metres south of the mine.

Eighteen reverse circulation drill holes were completed in January and February for 1,544 metres, to test for extensions of the historic Homestake F33 uranium mine. Results were generally low, and in some cases failed to intercept the mineralised structure.

Drilling to follow up the best intercepts, which are close to the southern extension of the mine, will be necessary to locate the mine structure.

Drill Results, Armijo Project

Hole Number

Depth From (m)

Depth To (m)

Interval (m)

U3O8 (ppm)

V2O5 (ppm)

A 73including

00

31

31

295826

12571

A 171including

03

64

61

4461,533

98107

Drill Results, F33 Project

Hole Number

Depth From (m)

Depth To (m)

Interval (m)

U3O8 (ppm)

V2O5 (ppm)

F33 – 5including

7273

7575

32

8981,132

393295

F33 – 2including

100106

107107

71

4262,122

3201,142

F33 – 13including

138139

144141

62

202481

26263

F33 -10including

105107

114111

94

188281

301473F

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Kit Carson Project

During the year Uran concluded the purchase of additional privately owned mineral rights in about 1,230 hectares close to or abutting the Armijo and F33 Projects (shown in blue). The ownership acquired is 50% of the mineral rights, except over Section 33 where it includes 100% ownership of minerals. Section 33 abuts the F33 Project and covers the portal for the historic F33 mine.

Most of this land does not cover Todilto Limestone but is thought to cover the Chinle Formation which lies at a depth estimated to be about 200 metres in this area. The Chinle Formation is host to the large historic uranium mines of the Lisbon Valley in Utah, although it has not been mined in New Mexico.

No exploration has been carried out by Uran on this project to date, however research in the archives held by Bureau

of Geology and Mineral Resources in Socorro has disclosed the results from drilling of Todilto Limestone by Homestake on Section 33, which hosts the portal to the historic F33 underground mine.

Close to the eastern boundary of Section 33 the following results were obtained from diamond drilling by Homestake. The depths of the intercepts are not yet known but are close to surface, just to the south of the F33 mine portal.

These drill results show that uranium mineralisation does persist in Todilto Limestone onto Section 33, but the Todilto appears to continue at shallow depths only about 100-150 metres onto Section 33. Due to the limited extent this is not seen as a stand-alone prospect, however exploration will be carried out in due course to determine whether material from this area could contribute to any future ore processing.

Historic Drill Results, Kit Carson Project

Hole No

Interval (feet)

U3O8 e (ppm)

72 10 3,200

73 14 2,100

67 4 2,500

69 4 2,700

33 6 2,340

70 2 2,500

61 5 3050

73 6 3,800

36 and

26

1,400750

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Uravan Joint Venture

During the year Uran entered into an agreement with Canadian company Summit Point Uranium Corp (“Summit”) to acquire up to an 85% equity in the Uravan Project, which consists of 501 registered mineral claims covering 4,080 hectares straddling the Utah and Colorado border. The project lies at the junction of the Uravan Belt (“uranium-vanadium”) and the Lisbon Valley, two significant uranium-producing areas in the USA between 1945 and the early 1980s.

The agreement is conditional on Uran’s due diligence, which has been extended by agreement between the parties.

The project covers a number of historic uranium mines which are hosted by sandstones, generally at shallow depth. The average mined grade for the project area is reported to have been 0.22% U3O8 from open pit or shallow underground mines. Uranium is present as carnotite with secondary carnotite. Vanadium is present as tyuyamunite and other minerals which are amenable to alkaline leaching.

The project lies in the north-west of the San Juan sedimentary basin which extends eastwards into New Mexico, where it also hosts the Grants Ridge project. It is about five hours drive from the Company's base in Grants, New Mexico, which will allow effective utilisation of staff and drilling equipment.

Background

The Uravan mineral claims lie partly within Utah and partly within Colorado. Utah is seen as a ‘permitting-friendly’ state, and the mineral claims are entirely on BLM land which will make permitting relatively quick and simple.

The area is similar in many ways to Grants Ridge, covering numerous historic small to medium-sized open-pit or shallow underground uranium mines. The uranium is present primarily as uraninite with some carnotite alteration. The averaged mined grade for both areas was about 0.22% U3O8 both lie within the San Juan Basin sedimentary basin.

However, the surface mineralisation at the Uravan Project is generally in the Salt Wash Sandstone rather than the underlying limestone member. The Salt Wash is a stratigraphic equivalent of the Westwater Canyon sandstone in New Mexico which hosts the large high-grade Ambrosia Lake and Mt Taylor uranium mines, as well as the current NI 43-10 resources at Church Rock, La Jara Mesa, and Roca Honda.

Within the project area there are 3 mineralised 4-5 metre thick sandstone members stacked at roughly 20-metre vertical intervals. All have been exploited, often simultaneously from a single mine. The mining was very similar to that at Grants in that it only exploited the shallow high-grade parts of a broad mineralised lithology, generally through shallow open pits and drifts into the sides of mesas.

Uravan Joint Venture, Utah and Colorado, USA

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REVIEW OF PROJECTSVanadium represents a potentially valuable co-project in the Uravan area. The V2O5U3O8 ratio from historic uranium mining is typically between 5:1 and 10:1, as compared to 1:1 to 5:1 in the Grants area. The whole Utah-Colorado uranium belt was worked initially for radium in the early 1900's, then for vanadium between the wars and after the atomic tests of 1945 for uranium until the early 1980s.

Czech Republic

Uran’s right to acquire Discovery Minerals Pty Ltd, by completing the Share Sale Agreement, was not extended. The right to acquire Discovery Minerals arose from an agreement made in 2006 and the Company formed a view that, despite the election of a new Government, it could not accept the terms of the Share Sale Agreement due to continuing uncertainty as to whether Discovery’s applications for exploration permits over the Czech uranium deposits will be granted. However Uran retains its current 8.5% shareholding in Discovery Minerals.

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INFORMATION ON DIRECTORS & SENIOR MANAGEMENTMr Patrick Ryan ChairmanQualifications: MA(Oxon)

From 1971 to 1992, Mr Ryan held various senior executive positions with Perth Building Society which became Challenge Bank, of which he was Managing Director from 1989 to 1992. From 1993 to 1994 he was Chief Executive of the Hospital Benefit Fund of WA. He has been Deputy Chairman of Energy Equity Corporation and a Director of a number of ASX-listed companies across several sectors between 1993 and 2003. Mr Ryan was the driving force behind a consortium which purchased regional WA airline Skywest from the administrators of Ansett Airlines in 2001. He was Chairman of Skywest from 2001 until its takeover by Singapore-based CVC in late 2004.

Mr Ryan has a relevant interest in 324,762 shares, 1,250,000 unlisted options and 13,066 listed options in the Company.

Other Current Directorships: None

Former Directorships in last three years:None

Mrs Catherine (Kate) Hobbs Managing Director Qualifications: BA(Geol) FAusIMM

Ms Kate Hobbs was founding Managing Director of Hindmarsh Resources Ltd, a substantial uranium exploration company previously listed on the Australian Stock Exchange. Ms Hobbs was a founder and Executive Director of Focus Minerals Ltd, a gold and nickel mining company listed on the Australian Stock Exchange. She has worked as a uranium exploration geologist with the Australian Atomic Energy Commission, Agip Nucleare, and Noranda (now Falconbridge). She has extensive experience in strategic planning and acquisitions, and joint venture management.

Mrs Hobbs holds a relevant interest in 8,082,262 shares and 2,020,566 listed options in the Company.

Other Current Directorships:None

Former Directorships in the last three years:NoneF

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INFORMATION ON DIRECTORS & SENIOR MANAGEMENT continued

Dr Wolf Martinick Non-Executive DirectorQualifications: B.SC(Agric), PhD. FAusIMM

Dr Wolf Martinick is an environmental scientist with extensive experience in uranium mining, including responsibility for environmental management for Ranger and Nabarlek mines, and the rehabilitation of Rum Jungle and Mary Kathleen uranium mines. He was responsible for preparation of the Environmental Impact Statement for Olympic Dam, and was involved in environmental management of the Kintyre, Lake Way, and Koongarra uranium projects. Dr Martinick is Chairman of Weatherly International Limited, an AIM-listed company with large copper mining and smelting interests in Namibia and Zambia. He was also chairman of Windimurra Vanadium Ltd until 2009.

Dr Martinick has a relevant interest in 1,908,750 shares and 1,250,000 unlisted options in the Company.

Other current directorships:Sun Resources NL - appointed 19 February 1996Azure Minerals Limited – appointed 1 September 2007Weatherly International PLC – appointed 22 July 2005Ezenet Limited – appointed 10 January 2003

Former directorships in last three years:Carbine Resources Limited – (2006 – 2008)Ghazal Minerals Limited – (2007 – 2008)Windimurra Vanadium Ltd – (2006 – 2009)

Mr Shane Hartwig Non-Executive DirectorQualifications: B.Bus, CPA, ACIS

Mr Hartwig’s expertise in corporate advisory and finance for junior resource companies will be of significant value to Uran Limited as it progresses its uranium projects in USA. Mr Hartwig was a founder of Cardrona Capital prior to its acquisition by Transocean Securities Pty Ltd, of which he is now a Director of Corporate Finance. Transocean provides corporate, strategic and equity capital raising services.

Prior to this he worked in corporate advisory roles with Montagu Stockbrokers (now Patersons Securities) in Perth and in the debt capital markets area for Bankers Trust plc in London. He is a CPA and Chartered Secretary. He is also currently the Company Secretary of ASX listed companies Forge Resources Ltd, GLC Corp Ltd and Anteo Diagnostics Ltd.

Other Current Directorships: NoneFormer Directorships in last three years:None

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Mr Sam Wright Joint Company SecretarySam Wright is experienced in the administration of ASX listed companies, corporate governance and corporate finance. He is a member of the Australian Institute of Company Directors, the Financial Services Institute of Australasia, and the Chartered Secretaries of Australia.

Mr Wright is currently a Non-Executive Director of ASX listed companies, PharmAust Limited and Structural Monitoring Systems plc. He is also Company Secretary for ASX listed companies, Mount Magnet South NL, PharmAust Limited, Structural Monitoring Systems plc, and Uran Limited. Mr Wright has also filled the role of Director and Company Secretary with a number of unlisted companies. He is the principal of Perth-based corporate advisory firm Straight Lines Consultancy, specialising in the provision of corporate services to public companies.

Mr Winton Willesee Joint Company SecretaryMr Willesee is an experienced Director and Company Secretary in the small capitalisation sector of the ASX and brings to Uran a broad range of experience in company administration, corporate governance and corporate finance.

Mr Willesee has a Master of Commerce, Post-Graduate Diploma in Business (Economics and Finance), a Diploma in Education and a Bachelor of Business. Mr Willesee is a Fellow of the Financial Services Institute of Australasia and a Member of CPA Australia.

Mr Willesee is also a Director of Newera Uranium Limited, Future Corporation Australia Limited, and Base Resources Limited and has filled the role of Company Secretary with a number of listed and unlisted public companies. He is currently the Company Secretary of Base Resources Limited, Boss Energy Limited, Future Corporation Australia Limited, Mantle Mining Corporation Ltd, Newera Uranium Limited and Greenvale Mining NL, and is the Joint Company Secretary of Tawana Resources NL.

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Meetings of Directors

During the financial year, 8 meetings of Directors were held. Attendances by each director during the year were as follows:

Directors’ Meetings Audit committee Risk CommitteeNumber eligible

to attend

Numberattended

Number eligible

to attend

Numberattended

Number eligible

to attend

Numberattended

DirectorsPat Ryan 8 8 1 1 - -Kate Hobbs 8 8 - - - -Wolf Martinick 8 6 1 - - -Shane Hartwig 8 7 1 1 - -

Dividends Paid or Recommended

The Directors do not recommend the payment of a dividend and no amount has been paid or declared by way of a dividend to the date of this report.

Environmental Regulations

The Company is aware of its environmental obligations with regards to its exploration activities and ensures that it complies with all regulations at all times.

The Company holds participating interests in mining and exploration tenements. The authorities granting such tenements require the tenement holder to comply with the terms of the grant of the tenement and all directions given to it under those terms of the tenement. There have been no known breaches of the tenement conditions, and no such breaches have been notified by any government agencies during the year ended 30 June 2010 or since.

Matters Subsequent to the End of Financial Year

On 21 July 2010, the Company announced that it had received valid acceptances from shareholders for 29,610,610 shares pursuant to the Rights Issue lodged with ASIC and ASX on 17 June 2010. On 11 August the Company announced that it had completed the allocation of the shortfall. All 52,393,241 shares under the shortfall were placed to sophisticated investors. The total amount raised before costs was $1,230,058 (i.e 82,003,851 shares at 1.5c).

On 11 August 2010, Kate Hobbs lodged a Form 605, notifying that she was ceasing to be a substantial shareholder due to dilution from the issue of shares under the Rights Issue.

On 2 August 2010, the Company advised that 23,625,000 unlisted options with a exercise price of 28.04 cents had expired on 31 July 2010.

On 31 August 2010, the Company informed the market that in order to reduce financial liabilities within the Company, the Board of Uran has provided 12 months notice of termination of employment to Kate Hobbs, the current Managing Director. Ms Hobbs’ current employment contract requires the Company to provide 12 months notice if it seeks to terminate the contract without cause. The Board has determined to reduce this potential liability by giving notice to terminate the existing contract. The Company will, at a period closer to the expiration of this 12 month period time, seek to renegotiate a new employment contract with Ms Hobbs on similar terms to the existing contract, subject to a reduction in the termination notice period.

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Directors’ Report continuedOther than disclosed above, between the end of the financial year and the date of this there are no items, transactions or events of a material and unusual nature likely, in the opinion of the Directors, to affect significantly, the results of those operations, or the state of affairs of the Group in future financial years.

Likely Developments & Expected Results

The Directors are not aware of any developments that might have a significant effect on the operations of the Company in subsequent financial years not already disclosed in this report.

Significant Changes in the State of Affairs

On 10 July 2009, the Company held a General Meeting of Shareholders at The Celtic Club, 48 Ord Street, West Perth, Western Australia. All resolutions were passed on a show of hands. The Company issued 1,000,000 shares with a fair value of 3.2c each to Falx Pty Ltd in part payment of Finder’s Fee on the Grants Ridge project. The Company granted 272,500 shares with a fair value of 3 cents to each of Mr Ryan and Dr Martinick. The shares were issued in lieu of director’s fees for the quarter April – June 2009.

On 24 July 2009, the Company announced that it had completed a Rights Issue. The Company raised $1.76 Million before costs from a Rights Issue which was underwritten by Transocean Securities Pty Ltd.

On 25 August 2009, the Company announced that Mr Shane Hartwig was appointed as a Non-Executive Director.

On 17 December 2009, the Company announced the successful completion of its capital raising via the issue of 9 million shares at an issue price of $0.05 per share to raise $450,000.

On 19 February 2010, the Company announced the successful completion of its capital raising via the issue of 14,043,302 shares at an issue price of $0.035 per share, together with 14,043,302 free attaching options, to raise $491,516. The Company also issued 750,000 shares to Uranium Energy Corp in accordance with the earn-in requirements of the Grants Ridge Joint Venture agreement.

On 17 May 2010, the Company announced the successful completion of its capital raising via the issue of 21,294,482 ordinary Shares at an issue price of $0.015 per share to raise $319,417.

On 25 June 2010, the Company held a General Meeting of Shareholders at RSM Bird Cameron, 8 St Georges Terrace, East Perth, Western Australia. All resolutions were passed on a show of hands. The Company granted 1,000,000 shares with a fair value of 1.4 cents to each of Dr Martinick and Transocean Securities Pty Ltd, a company which Mr Hartwig is an employee. The shares were issued in lieu of director’s fees for the period January – June 2010.

Share Options

The details of unissued ordinary shares under option at the date of this report are as follows:Number Exercise Price Expiry Date

Quoted 53,387,074 8 cents 13 July 2012Employee Share Option Plans:Unquoted 1,250,000 40 cents 31 July 2011Unquoted 1,250,000 60 cents 31 July 2011

During the year, no options were exercised. There have been no further options exercised since the end of the financial year to the date of this report.

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Directors’ Report continued

Proceedings on Behalf of Company

No person has applied for leave of Court to bring proceedings on behalf of the company or intervene in any proceedings to which the Company is a party for the purpose of taking responsibility on behalf of the Company for all or any part of these proceedings.

The Company was not a party to any such proceedings during the year.

Indemnifying Officers or Auditor

In accordance with the constitution, except as may be prohibited by the Corporations Act 2001 every Officer of the Company shall be indemnified out of the property of the Company against any liability incurred by him in his capacity as Officer, auditor or agent of the Company or any related corporation in respect of any act or omission whatsoever and howsoever occurring or in defending any proceedings, whether civil or criminal. The Company has agreed to pay a premium of $42,419 for Directors and Officers Insurance.

Non-audit Services

The following non-audit services were provided by the entity’s Auditor, RSM Bird Cameron Partners. The directors are satisfied that the provision of non-audit services is compatible with the general standard of independence for auditors imposed by the Corporations Act. The nature and scope of each type of non-audit service provided means that auditor independence was not compromised.

RSM Bird Cameron Partners received or are due to receive the following amounts for the provision of non-audit services:

Tax advisory services $2,500

Details of the amounts paid or payable to the auditor for audit services paid during the year are set out in Note 21.

Auditor’s Independence Declaration

The lead auditor’s independence declaration for the year ended 30 June 2010 has been received and can be found on page 26 of this annual report.

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REMUNERATION REPORT (AUDITED)This remuneration report outlines the director and executive remuneration arrangements of the Company and the Group in accordance with the requirements of the Corporations Act 2001 and its Regulations. For the purposes of this report, key management personnel (KMP) of the Group are defined as those persons having authority and responsibility for planning, directing and controlling the major activities of the Company and the Group, directly or indirectly.

Details of Key Management Personnel

Directors

Mr Patrick Ryan ChairmanMrs Catherine (Kate) Hobbs Managing Director Dr Wolf Martinick Non-Executive DirectorMr Shane Hartwig Non-Executive Director (appointed 25 August 2009)

Remuneration policy

The Company has not established a Remuneration Committee, the role of the Committee is assumed by the Board, as a whole, which is responsible for determining and reviewing the remuneration arrangements of the directors and executives.

The Board assesses the appropriateness of the nature and amount of emoluments of such Directors and executives on an annual basis by reference to market and industry conditions.

In order for the Company to prosper, thereby creating shareholder value the Company must be able to attract and retain the highest calibre executives.

Executive and non-executive directors, other key management personnel and other senior employees have been granted ordinary shares and options over ordinary shares. The recipients of options are responsible for growing the Company and increasing shareholder value. If they achieve this goal the value of the options granted to them will also increase. Therefore the options provide an incentive to the recipients to remain with the Company and to continue to work to enhance the Company’s value.

Due to the nature of the Company’s operations the current remuneration policy is not linked to the performance of the Company.

Non-executive Directors remuneration

The Board seeks to set remuneration levels that provide the Company with the ability to attract and retain the highest calibre professionals.

Fees and payments to non-executive Directors reflect the demands that are made on, and the responsibilities of the Directors from time to time.Directors fees are determined by the Board within the aggregate directors fee limit approved by shareholders. The maximum currently stands at $500,000 approved by shareholders on 25 October 2006.

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Non-executive Directors remuneration continuedThe Company may provide remuneration in the form of shares to Directors in lieu of Director’s Fees. The issue of shares to Directors requires the Company to obtain prior Shareholder approval. The Board considers that remuneration of Directors in equity will align their interests with those of the shareholders.

Remuneration in the form of share options issued under the Company’s Employee Share Options Plans is designed to reward Directors and executives in a manner aligned to the creation of shareholder wealth. Subject to shareholders approval non-executive directors may participate in the Company’s Employee Share Option Plan. While Corporate Governance Principle 8.1 recommends that non-executive directors not participate in such plans the Board considers the grant of options to be reasonable given the necessity to attract and retain the highest calibre professionals to the Company.

Non-executive Directors receive superannuation benefits in accordance with the Superannuation Guarantee Legislation. Non-executive directors are permitted to salary sacrifice all or part of their fees.

Due to the nature of the Company’s operation i.e. mineral exploration and development, the remuneration of directors and executives, at present, does not include performance-based incentives

Relationship of Company Performance to Shareholder Wealth

In accordance with s300A(1AA) and (1AB) of the Corporations Act 2001, the chart below itemises the constituents to the company’s Earnings/(Loss)Per Share (“EPS” or “LPS”) by year for each of the past five years. The company’s average LPS over the past five years has been 5.30¢.

Year Ended

Jun-06 Jun-07 Jun-08 Jun-09 Jun-10

LPS (¢) (1.30) (13.23) (6.86) (3.77) (1.32)

Executive Remuneration (including Executive Directors)

The Board aims to reward executives with a level and mix of remuneration commensurate with their position and responsibilities to align the interests of executives with those of shareholders and to ensure that remuneration is market competitive.

Remuneration consists of:• Fixed Remuneration

Being base salary, non-monetary benefits and superannuation. Fixed remuneration is reviewed annually.• Variable remuneration – Long term incentives• Being share options issued under the Company’s Employee Share Option Plans. These options do not

have any vesting conditions other than service conditions.

Remuneration issued in the form of share options issued under the Company’s Employee Share Option Plans is designed to reward directors and executives in a manner aligned to the creation of shareholder wealth.Due to the nature of the Company’s operation i.e. mineral exploration, the remuneration of directors and executives, at present, does not include performance-based incentives. At present, the vesting of options is only based on completion of service requirements.

The Company has entered into contracts of employment with the Managing Director and standard contracts with other executives, the details of which are set out on Page 20.

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Board Remuneration Details of remuneration for year ended 30 June 2010

Short-term Post-employment

Share based

paymentSalary& Fees

Other Superannuation Options Termination benefits

Total % Performance

related$ $ $ $ $ $ $

Non-executive directors

P Ryan 23,674 - - 8,175# - 31,849 -

W Martinick 16,350 - - 22,175# - 38,525 -

S Hartwig¹ - - - - - - -

40,024 - - 30,350 - 70,374 -

Executive directors

K Hobbs 215,132 - 19,362 - - 234,494 -

Other key management personnel

P Schiemer² 168,000 - 15,120 16,138* - 199,258 -

Total 423,156 - 34,482 46,488 - 504,126 -

¹ Shane Hartwig was appointed 25 August 2009 as a representative of Transocean Securities Pty Ltd. All board remuneration is received by Transocean Securities Pty Ltd, which has been disclosed in note 19: Related parties.2 Resigned 1 July 2010# Shares issued in lieu of fees to directors.* Percentage of options as part of the total remuneration is 8%.Details of remuneration for year ended 30 June 2009

Executive directors

K Hobbs 204,651 - 17,477 - - 222,128 -

T Schrimpf 3 125,616 - 11,305 - - 136,921 -

330,267 - 28,782 - 359,049 -

Other key management personnel

J Cucvara 5 112,331 - - - 70,000 182,331 -P Schiemer 161,500 - 14,535 51,396* - 227,431 -K Edwards 4 46,680 - - - - 46,680 -

320,511 - 14,535 51,396 70,000 456,442 -

Total 677,703 - 69,642 51,396 70,000 868,741 -

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Board Remuneration continued1 Includes directors fees salary sacrificed 2 Resigned 1 September 20083 Resigned 29 October 20084 Resigned 1 February 20095 Resigned 23 October 2008 as an International Business Development Manager* Percentage of options as part of the total remuneration is 23%.Compensation Options: Granted and Vested during the year

No options were granted during the year.250,000 options granted to Mr P B Schiemer on 28 May 2008 (exercisable at 60 cents) vested during the year. Options granted as part of remuneration

No options were granted as remuneration the 2010 financial year or since. The Company has no policy in relation to directors’ limiting their exposure to risk in relation to the options held.Shares Issued on Exercise of Compensation Options

No options were exercised last financial year, this financial year or since.Employment contracts of directors and senior executives

Managing Director

Remuneration and other terms of employment for the Managing Director, Mrs C M Hobbs, are formalised in a service agreement, details of which are set out below.

Base salary inclusive of superannuation of $250,000 to be reviewed annually. From 31 October 2008 to 31 December 2009, a voluntary temporary reduction in salary of $30,000 per year for Mrs C M Hobbs was approved by the Company.

The Company may terminate, other than for gross misconduct, with 3 months notice or payment in lieu of an amount of $62,500 on the grounds of inadequate performance or prolonged illness, or 12 months notice payment in lieu of an amount of $250,000 for redundancy or the Company being taken over.

Other executives (standard contracts)

All other executives have contracts whereby the Company may terminate, other than for gross misconduct, with 3 months notice a payment in lieu of notice period on the grounds of inadequate performance or prolonged illness, or 6 months notice a payment in lieu for redundancy or the Company being taken over.

Signed in accordance with a resolution of the Board of Directors.

PATRICK RYANChairman

DATED at PERTH this 24th day of September 2010

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Corporate Governance StatementThe Company is committed to implementing the highest standards of corporate governance. In determining what those high standards should involve the Company has turned to the ASX Corporate Governance Council’s Principles of Good Corporate Governance and Best Practice Recommendations. The Company is pleased to advise that the Company’s practices are largely consistent with those ASX guidelines.

Unless disclosed below, all the best practice recommendations of the ASX Corporate Governance Council have been applied for the entire financial year ended 30 June 2010.

Board Composition

The skills, experience and expertise relevant to the position of each Director who is in office at the date of the annual report and their term of office are detailed in the Director’s report.

Directors of Uran Limited are considered to be independent when they are independent of management and free from any business or other relationship that could materially interfere with or could reasonably be perceived to materially interfere with the exercise of their unfettered and independent judgement. The following directors are considered to be independent:

Mr Patrick RyanDr Wolf MartinickMr Shane Hartwig

When determining the independent status of a Director the Board used the Guidelines detailed in the ASX Corporate Governance Council’s Principles of Good Corporate Governance and Best Practice Recommendations.

Code of Conduct

The Company has established its Code of Conduct to ensure that directors and senior executives are provided with clear principles setting out the expectations of their conduct.

It is expected that directors and senior executives will actively promote the highest standards of ethics, honesty and integrity in carrying out their roles and responsibilities for the Company.

In dealings with the Company’s suppliers, competitors, customers and other organisations with which they have contact, they will exercise fairness and integrity, and will observe the form and substance of the regulatory environment in which the Company operates.

Directors and senior executives must, at all times, act in the interests of the Company and will ensure compliance with the laws and regulations in relation to the jurisdictions in which the Company operates.

Directors and senior executives have a role in ensuring compliance with this code of conduct, and therefore should be vigilant and report any breach of this code of conduct.

For further information on the Company’s Code of Conduct refer to our website.

Trading Policy

Under the Company’s Share Trading Policy a Director, executive or their related parties may not trade in Securities while in possession of information which may be price-sensitive and which has not been released to the ASX or which is not otherwise in the public domain. Price-sensitive information is any information which a reasonable person would think may affect the price of Securities, either negatively or positively.

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Corporate Governance Statement continuedDirectors and executives must not engage in short-term trading of securities and must not trade in Securities in the two weeks prior to release of Annual and Quarterly periodic reports.

Directors and executives must advise the Chairman or Managing Director in advance of selling Securities.

As required by the ASX Listing Rules, the Company notifies the ASX of any transaction conducted by Directors in the Securities of the Company.

Audit Committee

The Board has established an Audit Committee which operates under a formal charter.

It is the Board’s responsibility to ensure that an effective internal control framework exists within the entity. This includes internal controls to deal with both the effectiveness and efficiency of significant business processes, the safeguarding of assets, the maintenance of proper accounting records, and the reliability of financial information. The Board has delegated responsibility for establishing and maintaining a framework of internal control and ethical standards to the Audit Committee.

The Committee also provides the Board with additional assurance regarding the reliability of financial information for inclusion in the financial reports. All members of the Audit Committee are non-executive directors.

The members of the Audit Committee during the year were:

P Ryan – ChairmanW MartinickS Hartwig

Risk Committee

The Board’s responsibility is to evaluate and monitor areas of operational and financial risk the Board has delegated this responsibility to the Risk Committee.

The Committee determines the Company’s risks profile and is responsible for overseeing and approving risk management strategy and policies, internal compliance and internal control.

The Chief Executive Officer and Chief Financial Officer have provided a written statement to the Board that in their view the Company’s financial report is founded on a sound system of risk management and internal compliance and control which implements the financial policies adopted by the Board and that the company’s risk management and internal compliance and control system is operating effectively in all material respects.

The members of the Risk Committee during the year were:

P Ryan – ChairmanW MartinickS Hartwig

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Corporate Governance Statement continued

Compliance with Disclosure Requirements

The Company is committed to meeting its disclosure obligations and to the promotion of investor confidence in its securities. It has in place written policies and procedures to ensure compliance with ASX Listing Rule 3.1.

Uran will immediately notify the market by announcement to the ASX of any information concerning the business of Uran that a reasonable person would expect to have a material effect on the price or value of Uran’s securities.

Shareholders

The Board endeavours to ensure that shareholders are fully informed of all activities affecting the Company. Information is conveyed to shareholders via the Annual Report, Quarterly Reports and other announcements. This information is available on the Company’s website, www.uranlimited.com.au, in hard copy upon request.

The Board encourages attendance and participation of shareholders at the Annual General and other General Meetings of the Company.

The Company’s external auditor is requested to attend the Annual General Meeting and be available to take questions about the conduct of the audit and the content of the Auditors’ Report.

COMPLIANCE WITH BEST PRACTICE RECOMMENDATIONS

The Board sets out below its “if not why not” report in relation to those matters of corporate governance where the Company’s practices depart from the Recommendations.

Recommendation Uran Limited Current Practice

1.1 Companies should establish the functions reserved for the board and those delegated to senior executives and disclose those functions.

Satisfied.

Board Charter is available at www.uranlimited.com.au in the Corporate Governance Statement.

1.2 Companies should disclose the process for evaluating the performance of senior executives.

Satisfied. Board Performance Evaluation Policy is available at www.uranlimited.com.au in the Corporate Governance Statement.

2.1 A majority of the board should be independent directors.

Satisfied.

2.2 The chair should be an independent director. Satisfied.

2.3 The roles of chair and Chief Executive Officer should not be exercised by the same individual.

Satisfied.

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2.4 The board should establish a nomination committee. Not satisfied.

The Board consider that given the current size of the Board (4), this function is efficiently achieved with full Board participation. Accordingly, the Board has not established a nomination committee.

2.5 Companies should disclose the process for evaluating the performance of the board, its committees and individual directors.

Satisfied.

Board Performance Evaluation Policy is available at www.uranlimited.com.au in the Corporate Governance Statement.

3.1 Companies should disclose a code of conduct and disclose the code or a summary of the code as to:The practices necessary to maintain confidence in the company’s integrityThe practices necessary to take into account their legal obligations and the reasonable expectations of their stakeholdersThe responsibility and accountability of individuals for reporting and investigating reports of unethical practices.

Satisfied.

The Code of conduct is available at www.uranlimited.com.au in the Corporate Governance Statement.

3.2 Companies should establish a policy concerning trading in company securities by directors, senior executives and employees, and disclose the policy or a summary of that policy.

Satisfied.

The Trading Policy is available at www.uranlimited.com.au in the Corporate Governance statement.

4.1 The board should establish an audit committee. Satisfied.

4.2 The audit committee should be structured so that it:Consists only of non-executive directorsConsists of a majority of independent directorsIs chaired by an independent chair, who is not chair of the boardHas at least three members

Satisfied.

4.3 The audit committee should have a formal charter. Satisfied.

Audit Committee charter is available at www.uranlimited.com.au in the Corporate Governance statement.

5.1 Companies should establish written policies designed to ensure compliance with ASX Listing Rule disclosure requirements and to ensure accountability at senior executive level for that compliance and disclose those policies or a summary of those policies.

Satisfied.

Continuous disclosure policy is available at www.uranlimited.com.au in the Corporate Governance statement.

Recommendation Uran Limited Current Practice

Corporate Governance Statement continued

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6.1 Companies should design a communications policy for promoting effective communication with shareholders and encouraging their participation at general meetings and disclose their policy or a summary of their policy.

Satisfied.

Shareholders communication strategy is available at www.uranlimited.com.au in the Corporate Governance statement.

7.1 Companies should establish policies for the oversight and management of material business risks and disclose a summary of those policies.

Satisfied.

Risk management program is available at www.uranlimited.com.au in the Corporate Governance statement.

7.2 The board should require management to design and implement the risk management and internal control system to manage the company’s material business risks and report to it on whether those risks are being managed effectively. The board should disclose that management has reported to it as to the effectiveness of the company’s management of its material business risks.

Satisfied.

The Board, including the Managing Director, routinely consider risk management matters.

7.3 The board should disclose whether it has received assurance from the chief executive officer (or equivalent) and the chief financial officer (or equivalent) that the declaration provided in accordance with section 295A of the corporations Act is founded on a sound system of risk management and internal control and that the system is operating effectively in all material respects in relation to financial reporting risks.

Satisfied.

The Board has received a section 295A declaration pursuant to the 2010 financial period.

8.1 The board should establish a remuneration committee. Not Satisfied.

The Board consider that given the current size of the Board (4), this function is efficiently achieved with full Board participation. Accordingly, the Board has not established a remuneration committee.

8.2 Companies should clearly distinguish the structure of non-executive directors’ remuneration from that of executive directors and senior executives.

The structure of Directors’ remuneration is disclosed in the remuneration report of the annual report.

Further information about the Company’s corporate governance practices is set out on the Company’s website at www.uranlimited.com.au/corporategovernance

Signed in accordance with a resolution of the Board of Directors.

PATRICK RYANChairmanDATED at PERTH this 24th day of September 2010

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Auditor’s Independence Declaration Under Section 307C of the Corporations Act 2001

RSM Bird Cameron Partners

8 St Georges Terrace Perth WA 6000

GPO Box R1253 Perth WA 6844

T +61 8 9261 9100 F +61 8 9261 9111

www.rsmi.com.au

Liability limited by a scheme approved under Professional Standards Legislation

Major Offices in: Perth, Sydney, Melbourne, Adelaide and Canberra ABN 36 965 185 036

RSM Bird Cameron Partners is an independent member firm of RSM International, an affiliation of independent accounting and consulting firms. RSM International is the name given to a network of independent accounting and consulting firms each of which practices in its own right. RSM International does not exist in any jurisdiction as a separate legal entity.

AUDITOR’S INDEPENDENCE DECLARATION

As lead auditor for the audit of the financial report of Uran Limited for the year ended 30 June 2010, I declare that, to the best of my knowledge and belief, there have been no contraventions of:

(i) the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and

(ii) any applicable code of professional conduct in relation to the audit.

RSM BIRD CAMERON PARTNERS

Chartered Accountants

Perth, WA TUTU PHONG

Dated: 24 September 2010 Partner

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Consolidated Statement of Comprehensive Income

For the Year Ended 30 June 2010

Notes 30/06/2010 30/06/2009$ $

Interest received 7,139 84,477 Other income 35,360 23,961 Administration expenses 2 (300,321) (430,920)Compliance and regulatory expenses (39,912) (87,874)Depreciation (42,903) (46,196)Directors’ fees (94,374) (45,675)Employee benefits expense 2 (352,582) (743,576)Loss on sale of plant and equipment (2,045) (1,155)Tenancy and operating expenses (158,659) (150,996)Impairment of available for sale investments - (100,000)Impairment of mineral exploration expenditure 10 (541,564) (46,797)Other 2 (203,898) (475,387)Loss before tax (1,693,759) (2,020,138)Income tax expense 3 - - Loss after income tax (1,693,759) (2,020,138)Other Comprehensive IncomeExchange differences on translating foreign operations 22,097 -Income tax relating to components of other comprehensive income for the year

- -

Other Comprehensive Income for the Year 22,097 -Total Comprehensive Loss (1,671,662) (2,020,138)

Basic (loss) per share (cents per share) 4 (1.32) (3.77)Diluted (loss) per share (cents per share) 4 (1.32) (3.77)

The accompanying notes form part of these financial statements.

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Consolidated Statement of Financial Position

As at 30 June 2010

30/06/2010 30/06/2009$ $

CURRENT ASSETS NotesCash and cash equivalents 5 114,918 125,836 Trade and other receivables 6 10,586 42,602 Other assets 7 - 33,252Other financial assets 8 141,862 60,000Mineral exploration expenditure – held for sale 11 65,000 -TOTAL CURRENT ASSETS 332,366 261,690

NON-CURRENT ASSETSOther financial assets 8 71,280 71,299Plant and equipment 9 258,317 198,675 Mineral exploration expenditure 10 2,168,903 1,160,944 TOTAL NON CURRENT ASSETS 2,498,500 1,430,918

TOTAL ASSETS 2,830,866 1,692,608

CURRENT LIABILITIESTrade and other payables 12 273,325 295,962 Provisions 13 58,082 46,594TOTAL CURRENT LIABILITIES 331,407 342,556

NET ASSETS 2,499,459 1,350,052

EQUITYContributed equity 14 12,365,338 9,642,001Reserves 3,331,187 3,211,358 Accumulated losses (13,197,066) (11,503,307)

TOTAL EQUITY 2,499,459 1,350,052

The accompanying notes form part of these financial statements.

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Consolidated Statement of Changes in Equity


Consolidated NotesIssued Capital

Option Reserve

Foreign Currency Reserve

Accumulated Losses

Total Equity

$ $ $ $ $Balance at 1 July 2008 9,449,537 3,159,962 - (9,483,169) 3,126,330Loss for the year - - - (2,020,138) (2,020,138)Total comprehensive loss for the Year

- - - (2,020,138) (2,020,138)

Shares issued during the year 14 244,647 - - - 244,647Share issue costs 14 (52,183) - - - (52,183)Share based payment - 51,396 - - 51,396Balance at 30 June 2009 9,642,001 3,211,358 - (11,503,307) 1,350,052

Balance at 1 July 2009 9,642,001 3,211,358 - (11,503,307) 1,350,052

Loss for the year - - - (1,693,759) (1,693,759)Exchange differences on translating foreign operations

- - 22,097 - 22,097

Total comprehensive loss for the Year

- - 22,097 (1,693,759) (1,671,662)

Shares issued during the year 14 3,124,157 - - - 3,124,157Share issue costs 14 (400,820) - - - (400,820)Share based payment - 97,732 - - 97,732Balance at 30 June 2010 12,365,338 3,309,090 22,097 (13,197,066) 2,499,459

The above statement of changes in equity should be read in conjunction with the accompanying notes.

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Consolidated Statement of Cash Flows


Consolidated

Notes 30/06/2010 30/06/2009$ $

CASH FLOWS FROM OPERATING ACTIVITIESPayments to suppliers and employees (999,759) (1,840,737)Payments for mineral exploration (1,508,076) (1,039,650) Interest received 7,139 84,477 NET CASH USED IN OPERATING ACTIVITIES 17 (2,500,696) (2,795,910)

CASH FLOWS FROM INVESTING ACTIVITIESPayments for plant and equipment (130,691) (27,284)

Proceeds from disposal of plant and equipment - 18,862

Proceeds from disposal of other financial assets 39,534 64,880Payments for other financial assets (121,396) -NET CASH FROM/(USED IN) INVESTING ACTIVITIES (212,553) 56,458

CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of shares 3,021,557 199,647Share issue costs (319,226) (52,183) Repayment of borrowings - (22,043) NET CASH FROM FINANCING ACTIVITIES 2,702,331 125,421

NET DECREASE IN CASH HELD (10,918) (2,614,031)Cash and cash equivalent at the beginning of the year 125,836 2,739,867 Cash AND CASH EQUIVALENT at the end of the year 5 114,918 125,836

The statement of cash flows is to be read in conjunction with the financial statements.

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Notes to the Financial Statements


1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a) Basis of Preparation

The financial report is a general purpose financial report that has been prepared in accordance with Australian Accounting Standards, Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001. Australian Accounting Standards set out accounting polices that the AASB has concluded would result in a financial report containing relevant and reliable information about transactions, events and conditions. Compliance with Australian Accounting Standards ensures that the financial statements and notes also comply with International Financial Reporting Standards. Material accounting policies adopted in preparation of this financial report are presented below and have been consistently applied unless otherwise stated.

The financial report has been prepared on an accrual basis and is based on historical costs, modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities.

The financial report was authorised for issue on 24 September 2010 by the Board of Directors.

b) Going Concern

The financial statements have been prepared on the going concern basis, which contemplates continuity of normal business activities and the realisation of assets and discharge of liabilities in the normal course of business.

As disclosed in the financial statements, the Company and Group incurred losses of $1,691,251(2009: $2,020,138) and $1,693,759 (2009: $2,020,138) respectively and the Group had net cash outflows from operating activities of $2,500,696 (2009: $2,795,910) for the year ended 30 June 2010. As at that date, the Group had net current assets of $959 and the Company had net current liabilities of $157,455 and net assets of $2,499,459 and $2,479,870 respectively.

The Directors believe that it is reasonably foreseeable that the Company and Group will continue as going concerns and that it is appropriate to adopt the going concern basis in the preparation of the financial report, after consideration of the following factors:

• The Company raised $1,230,057 from the issue of shares subsequent to reporting date, as disclosed in Note 24;

• The ability to issue additional shares under the Corporations Act 2001;• The ability to further reduce operational cost levels to conserve cash in the event that capital raisings are

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Notes to the Financial Statements For the Year Ended 30 June 2010

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont’d)

c) Adoption of new and revised accounting standards

The Company has adopted the following new and revised Australian Accounting Standards issued by the AASB which are mandatory to apply to the current financial year. Disclosures required by these Standards that are deemed material have been included in this financial report on the basis that they represent a significant change in information from that previously made available.

(i) Presentation of financial statements

The Group has applied the revised AASB 101 Presentation of Financial Statements (2007) from 1 January 2009. The revision of this standard now requires the Group to present all non-owner changes to equity (‘comprehensive income’) in the statement of comprehensive income. The Group has presented the statement of comprehensive income and non-owner changes in equity in one statement of comprehensive income. All owner changes in equity are presented separately in the statement of changes in equity.The presentation requirements have been applied for the entire reporting period and comparative information has been re-presented to also comply with the revised AASB 101.(ii) Segment reporting

The Group has applied AASB 8 Operating Segments with effect from 1 July 2009. AASB 8 requires the entity to identify operating segments and disclose segment information on the basis of internal reports that are provided to, and reviewed by, the chief operating decision maker of the Group to allocate resources and assess performance. In the case of the Group, the chief operating decision maker is the Board of Directors. Operating segments now represent the basis on which the Company reports its segment information to the Board on a monthly basis. The change in policy has not resulted in a change to the disclosure presented. (iii) Business combinations and consolidation procedures

Revised AASB 3 Business Combinations and AASB 127 Consolidated and Separate Financial Statements apply prospectively from 1 July 2009. Changes introduced by these standards which are expected to affect the Company, include the following:

• Costs incurred that relate to the business combination are expensed instead of comprising part of the goodwill acquired on consolidation;

• Any non-controlling interest (previously known as minority interest) in an acquiree is measured at either fair value or as the non-controlling interest’s proportionate share of net identifiable assets of the acquiree;

• The acquirer is prohibited from recognising contingent liabilities of the acquiree at acquisition date that do not meet the definition of a liability;

• Consideration for the acquisition, including contingent consideration, must be measured at fair value at acquisition date. Subsequent changes in the fair value of contingent consideration payable are not regarded as measurement period adjustments but are rather recognised in accordance with other Australian Accounting Standards as appropriate;

• The proportionate interest in losses attributable to non-controlling interests is assigned to non-controlling interests irrespective of whether this results in a deficit balance. Previously, losses causing a deficit to non-controlling interests were allocated to the parent entity; and

• Where control of a subsidiary is lost, the balance of the remaining investment account shall be remeasured to fair value at the date that control is lost.

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d) Basis of consolidation

A controlled entity is any entity Uran Limited has the power to control the financial and operating policies of so as to obtain benefits from its activities. A list of controlled entities is contained in Note 18 to the financial statements. All controlled entities have a June financial year end.

All inter-company balances and transactions between entities in the consolidated group, including any unrealised profits or losses, have been eliminated on consolidation. Accounting policies of subsidiaries have been changes where necessary to ensure consistencies with those polices applied by the parent entity.

Where controlled entities have entered or left the consolidated group during the year, their operating results have been included/ excluded from the date control was obtained or until the date the control ceased.

e) Revenue Recognition

Revenue is recognised and measured at the fair value of the consideration received or receivable to the extent it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognised.

(i) Interest IncomeRevenue is recognised as interest accrues using the effective interest method. This is a method of calculating the amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying amount of the financial asset.

f) Income Tax

The income tax expense (income) for the year comprises current income tax expense (income) and deferred tax expense (income).

Current income tax expense charged to the profit or loss is the tax payable on taxable income calculated using applicable income tax rates enacted, or substantially enacted, as at reporting date. Current tax liabilities (assets) are therefore measured at the amounts expected to be paid to (recovered from) the relevant taxation authority.

Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability balances during the year as well as unused tax losses.

Current and deferred income tax expense (income) is charged or credited directly to equity instead of profit or loss when the tax related to items that are credited or charged directly to equity.

Deferred tax assets and liabilities are ascertained based on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets also result where amounts have been fully expensed but future tax deductions are available. No deferred income tax will be recognised from the initial recognition of an asset or liability, excluding a business combination, where there is no effect on accounting or taxable profit or loss.

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Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled, based on tax rates enacted or substantially enacted at reporting date. Their measurement also reflects the manner in which management expects to recover or settle the carrying amount of the related asset or liability.

Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it is probable that future taxable profit will be available against which the benefits of the deferred tax asset can be utilised.

Where temporary differences exist in relation to investments in subsidiaries, branches, associates, and joint ventures, deferred tax assets and liabilities are not recognised where the timing of the reversal of the temporary difference can be controlled and it is not probable that the reversal will occur in the foreseeable future.

Current tax assets and liabilities are offset where a largely enforceable right of set-off exists and it is intended that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur. Deferred tax assets and liabilities are offset where a legally enforceable right of set-off exists, the deferred tax assets and liabilities related to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where it is intended that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur in future periods in which significant amounts of deferred tax assets or liabilities are expected to be recovered or settled.

g) Employee Benefits

Provision is made for the Company’s liability for employee benefits arising from services rendered by employees to balance date. Employee benefits that are expected to be settled within one year have been measured at the amounts expected to be paid when the liability is settled, plus related on-costs. Employee benefits payable later than one year have been measured at the present value of the estimated future cash outflows to be made for those benefits.h) Leases

Leases of fixed assets, where substantially all the risks and benefits incidental to the ownership of the asset, but not the legal ownership that are transferred to the Group, are classified as finance leases.

Finance leases are capitalised by recording an asset and a liability at the lower of the amounts equal to the fair value of the leased property or the present value of the minimum lease payments, including any guaranteed residual values. Lease payments are allocated between the reduction of the lease liability and the lease interest expense for the period.

Leased assets are depreciated on a straight-line basis over the shorter of their estimated useful lives or the lease term. Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are charged as expenses in the periods in which they are incurred.

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i) Impairment of assets At each reporting date, the Group reviews the carrying values of its tangible and intangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use, is compared to the asset’s carrying value. Any excess of the asset’s carrying value over its recoverable amount is expensed to the statement of comprehensive income. Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised in profit or loss immediately, unless the relevant asset is carried at fair value, in which case the impairment loss is treated as a revaluation decrease. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but only to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised in profit or loss immediately, unless the relevant asset is carried at fair value, in which case the reversal of the impairment loss is treated as a revaluation increase.

j) Cash and Cash Equivalents

Cash and cash equivalents in the statement of financial position comprise cash at bank and in hand and short-term deposits with an original maturity of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

k) Goods and Services Tax

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Tax Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the statement of financial position are shown inclusive of GST. Cash flows are presented in the statement of cash flows on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows.

l) Plant and EquipmentPlant and equipment is stated at historical cost less accumulated depreciation and any accumulated impairment losses. Depreciation is calculated on a straight-line basis over the estimated useful life of the assets as follows: Plant and Equipment – over 6 to 15 years Motor Vehicles – over 4 years Computer Equipment – over 6 years

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The assets’ residual values, useful lives and amortisation methods are reviewed, and adjusted if appropriate, at each financial year end.

An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits are expected from its use or disposal.

Any gain or loss arising on de-recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in profit or loss in the year the asset is derecognised.

m) Exploration and Evaluation Expenditure

Exploration and evaluation costs are capitalised as exploration and evaluation assets on a project by project basis pending determination of the technical feasibility and commercial viability of the project. The capitalised costs are presented as either tangible or intangible exploration and evaluation assets according to the nature of the assets acquired. When a licence is relinquished or a project abandoned, the related costs are recognised in the statement of comprehensive income immediately.

Exploration and evaluation assets shall be assessed for impairment when facts and circumstances suggest that the carrying amount of an exploration and evaluation asset may exceed its recoverable amount. When facts and circumstances suggest that the carrying amount exceeds the recoverable amount an impairment loss is recognised in the statement of comprehensive income.

n) Provisions and Employee Leave Benefits

Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

When the Group expects some or all of the provision to be reimbursed, for example under an insurance contract, the reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is presented in the statement of comprehensive income net of any reimbursement.

Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at the financial position date. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects the time value of money and the risks specific to the liability. The increase in the provision resulting from the passage of time is recognised in finance costs. Employee Leave Benefits

(i) Wages, salaries, annual leave and sick leaveLiabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick leave expected to be settled within 12 months of the reporting date are recognised in respect of employees’ services up to the reporting date. They are measured at the amounts expected to be paid when the liabilities are settled. Expenses for non-accumulating sick leave are recognised when the leave is taken and are measured at the rates paid or payable.

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n) Provisions and Employee Leave Benefits (Cont’d)

(ii) Long service leaveThe liability for long service leave is recognised and measured as the present level of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures, and periods of service. Expected future payments are discounted using market yields at the reporting date on national government bonds with terms to maturity and currencies that match, as closely as possible, the estimated future cash outflows.

o) Share Based Payment Transactions

(i) Equity settled transaction:

The Group provides benefits to its employees (including key management personnel) in the form of share-based payments, whereby employees render services in exchange for shares or rights over shares (equity-settled transactions).

There are currently two plans in place to provide benefits:* Uran Limited Employee Share Option Plan; and * Uran Limited Employee Share Option Plan No. 2 to provide benefits to directors and senior executives. The cost of these equity-settled transactions with employees is measured by reference to the fair value of the equity instruments at the date at which they are granted. The fair value is determined by an external independent valuer using an option pricing model.

In valuing equity-settled transactions, no account is taken of any vesting conditions other than conditions linked to price of the shares of Uran Limited (market conditions) if applicable.

The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the period in which the performance and/or service conditions are fulfilled (the vesting period), ending on the date on which the relevant employees become fully entitled to the award (the vesting date).

At each subsequent reporting date until vesting the cumulative charge to the statement of comprehensive income is the product of:

(i) the grant date fair value of the award; (ii) the current best estimate of the number of awards that will vest, taking into account such factors as the likelihood of employee turnover during the vesting period and the likelihood of non-market performance conditions being met; and (iii) the expired portion of the vesting period.

The charge to the statement of comprehensive income for the period is the cumulative amount as calculated above less the amounts already charged in previous periods. There is a corresponding credit to equity.

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o) Share Based Payment Transactions (cont’d)

Until an award has vested, any amounts recorded are contingent and will be adjusted if more or fewer awards vest than were originally anticipated to do so. Any award subject to a market condition is considered to vest irrespective of whether or not that market condition is fulfilled, provided that all other conditions are satisfied.

If the terms of an equity-settled award are modified, as a minimum an expense is recognised as if the terms had not been modified. An additional expense is recognised for any modification that increases the total fair value of the share based payment arrangement, or is otherwise beneficial to the employee, as measured at the date of modification.

If an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any expense not yet recognised for the award is recognised immediately. However, if a new award is substituted for the cancelled award and designated as a replacement award on the date that it is granted, the cancelled and new award are treated as if they were a modification of the original award, as described in the previous paragraph.

The dilutive effect, if any, of outstanding options is reflected as additional share dilution in the computation of diluted earnings per share.

p) Contributed Equity

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.

q) Earnings Per Share

(i) Basic Earnings per share

Basic earnings per share is calculated by dividing the profit attributable to equity holders of the company, excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the financial year.(ii) Diluted Earnings per Share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares.

r) Financial Instruments

Financial instruments, incorporating financial assets and financial liabilities, are recognised when the entity becomes a party to the contractual provisions of the instrument. Trade date accounting is adopted for financial assets that are delivered within timeframes established by marketplace convention.

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r) Financial Instruments (cont’d)

Financial instruments are initially measured at fair value plus transactions costs where the instrument is not classified as at fair value through profit or loss. Transaction costs related to instruments classified as at fair value through profit or loss are expensed to profit or loss immediately. Financial instruments are classified and measured as set out below.

Derecognition

Financial assets are derecognised where the contractual rights to receipt of cash flows expires or the asset is transferred to another party whereby the entity no longer has any significant continuing involvement in the risks and benefits associated with the asset. Financial liabilities are derecognised where the related obligations are either discharged, cancelled or expire. The difference between the carrying value of the financial liability extinguished or transferred to another party and their fair value of consideration paid, including the transfer of non-cash assets or liabilities assumed, is recognised in profit or loss.

Classification and Subsequent Measurement(i) Financial assets at fair value through profit or loss

Financial assets are classified at fair value through profit or loss when they are held for trading for the purpose of short term profit taking, where they are derivatives not held for hedging purposes, or designed as such to avoid an accounting mismatch or to enable performance evaluation where a group or financial assets is managed by key management personnel on a fair value basis in accordance with a documented risk management or investment strategy. Realised and unrealised gains and losses arising from changes in fair value are included in profit or loss in the period in which they arise.(ii) Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are subsequently measured at amortised cost using the effective interest rate method.(iii) Held-to-maturity investments

Held-to-maturity investments are non-derivative financial assets that have fixed maturities and fixed or determinable payments, and it is the group’s intention to hold these investments to maturity. They are subsequently measured at amortised cost using the effective interest rate method.(iv) Available-for-sale financial assets

Available-for-sale financial assets are non-derivative financial assets that are either designated as such or that are not classified in any of the other categories. They comprise investments in the equity of other entities where there is neither a fixed maturity nor fixed or determinable payments.(v) Financial Liabilities

Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised cost using the effective interest rate method.

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r) Financial Instruments (cont’d)

Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are applied to determine the fair value for all unlisted securities, including recent arm’s length transactions, reference to similar instruments and option pricing models.

Impairment of Assets

At each reporting date, the Group reviews the carrying values of its tangible and intangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use, is compared to the asset’s carrying value. Any excess of the asset’s carrying value over its recoverable amount is expensed to the statement of comprehensive income.

Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs.

s) Critical accounting estimates and other accounting judgements

Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Equally, the Group continually employs judgement in the application of its accounting policies.

Management has identified the following critical accounting policies for which significant judgements, estimates and assumptions are made. Actual results may differ from these estimates under different assumptions and conditions. Those which may materially affect the carrying amounts of assets and liabilities reported in future periods are discussed below.

(i) Classification of and valuation of investments

The Group has decided to classify investments with no active market as “available for sale” investments. Where the fair value of the investment cannot be reliably measured they are carried at cost.(ii) Impairment of non-financial assets

The Group assesses impairment on all assets at each reporting date by evaluating conditions specific to the Group and to the particular asset that may lead to impairment. These include technology and economic environments. If an impairment trigger exists, the recoverable amount of the asset is determined. This involves value-in-use calculations, which incorporate a number of key estimates and assumptions.(iii) Share-based payment transactions

The Company measures the cost of equity settled transactions with directors and employees by reference to the fair value of the equity instruments at the date at which they are granted. Equity settled transactions comprise only options, with their fair value determined using an Options Pricing model. The accounting estimates and assumptions relating to equity settled share-based payments would have no impact on the carrying amounts of assets and liabilities within the next annual reporting period but my impact expenses and equity.

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(iv) Estimation of useful lives of assets

The estimation of useful lives of assets has been based on historical experience. Adjustments to useful lives are made when considered necessary. Depreciation and amortisation charges as well as estimated useful lives are included in Note 9.

(v) Impairment of capitalised exploration and evaluation expenditure

The future recoverability of capitalised exploration and evaluation expenditure is dependent on a number of factors, including whether the Group decides to exploit the related lease itself or, if not, whether it successfully recovers the related exploration and evaluation asset through sale.

Factors which could impact the future recoverability include the level of proved and probable mineral reserves, future technological changes which could impact the cost of mining, future legal changes (including changes to environmental restoration obligations) and changes to commodity prices.

To the extent that capitalised exploration and evaluation expenditure is determined not to be recoverable in the future, this will reduce profits and net assets in the period in which this determination is made.

In addition, exploration and evaluation expenditure is capitalised if activities in the area of interest have not yet reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves. To the extent that it is determined in the future that this capitalised expenditure should be written off, this will reduce profits and net assets in the period in which this determination is made.

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Notes to the Financial Statements continued


2. EXPENSES2010 2009 2010 2009

$ $ $ $

Administration ExpensesTravel 87,863 192,441 87,863 192,441Accounting 36,136 83,902 70,386 83,902Telephone 20,429 23,638 20,429 23,638Promotion 4,312 48,690 4,312 48,690Conferences 4,098 15,626 4,098 15,626Printing 4,579 18,059 4,579 18,059Subscriptions 37,018 6,329 37,018 6,329Other 105,886 42,235 71,636 42,235

300,321 430,920 300,321 430,920

Employee benefits expenseSalaries 283,020 550,731 283,020 550,731Superannuation 39,064 87,228 39,064 87,228Provision for employee leave 11,489 50,954 11,489 50,954Staff amenities 2,871 3,267 2,871 3,267Share-based payments 16,138 51,396 16,138 51,396

352,582 743,576 352,582 743,576

OtherConsultants 49,117 328,492 49,117 328,492Insurance 45,770 51,970 45,770 51,970Legal 45,577 58,328 45,577 58,328Other 63,415 36,597 63,434 36,597

203,879 475,387 203,898 475,387

3. INCOME TAX

Numerical reconciliation between aggregate tax expense recognised in the statement of comprehensive income and the tax expense calculated per the statutory income tax rate:

Accounting loss before income tax (1,693,759) (2,020,138)At the Group’s statutory income tax rate of 30% (508,128) (606,041)Expenditure not allowable for income tax purposes 173,323 239,616Adjustment in respect of deferred income tax of previous year - 1,007,459Deferred tax assets not brought to account as realisation is not considered probable

334,805 (641,034)

Income Tax expense reported in the statement of comprehensive - -

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3. INCOME TAX (Cont’d)

The Company has deferred tax losses not brought to account of $1,623,450 (2009: $1,288,645). The Company has not recognised the deferred tax assets in the financial statements as it is not considered probable that sufficient taxable amounts will be available in future periods in which to be offset.

The availability of these losses is subject to satisfying Australian taxation legislation requirements and will only be available if:

i). The company derives future assessable income of a nature and amount sufficient to enable the benefit from the deduction for the losses to be realised.ii) The company continues to comply with the provisions of the income tax legislation relating to the deduction of losses from prior years.iii) No changes in tax legislation adversely affect the company in realising the benefit from the deduction for the losses.

4. EARNINGS PER SHARE 2010 2009

$ $

Loss used in the calculation of basic and diluted EPS (1,693,759) (2,020,138)Weighted average number of ordinary shares used in calculation of basic earnings per share 128,048,313 53,523,377Weighted average number of ordinary shares used in calculation of diluted earnings per share 128,048,313 53,523,377

As at 30 June 2010, the Company had on issue 66,387,074 (2009: 28,475,000) options over unissued capital and has incurred a net loss. These potential ordinary shares have not been included in the calculation of diluted earnings per share as they are anti-dilutive for all periods presented.

There are no instruments (e.g. share options) excluded from the calculation of diluted earnings per share that could potentially dilute basic earnings per share in the future because they are antidilutive for either of the periods presented.

Other than the rights issue and the expiration of options subsequent to the balance date as detailed in Note 24, there have been no transactions involving ordinary shares or potential ordinary shares that would significantly change the number of ordinary shares or potential ordinary shares outstanding between the reporting date and the date of completion of these financial statements.

5. CASH AND CASH EQUIVALENTS

Cash at bank 114,779 72,825

Cash on deposit 139 53,011

114,918 125,836Cash at bank earns interest at floating rates.

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6. TRADE AND OTHER RECEIVABLES

Other receivables 1,279 1,085GST receivables 9,307 41,517

10,586 42,602

7. OTHER ASSETS

Prepayment - 33,252

8. OTHER FINANCIAL ASSETS

2010 2009$ $

CurrentHeld to maturity investments 141,862 60,000

Non CurrentHeld to maturity investments 71,280 71,280Available for sale investments - 19

71,280 71,299

Held to maturity investments comprise:- Environmental bonds 121,396 -- Credit card security term deposit 20,466 60,000- Office building rental bond 71,280 71,280

213,142 131,280

Available for sale investments comprise:Shares unlisted – at cost 300,000 300,019Accumulated impairment (300,000) (300,000)

- 19

An assessment of the Company’s 8.5% investment in Discovery Minerals Pty Ltd was performed indicating a value of nil. The carrying value of the investment was written down to reflect an impairment loss of $nil (2009: $100,000).

9. PLANT AND EQUIPMENT

Plant and equipment – at cost 403,800 289,908Less: accumulated depreciation (145,483) (91,233)

258,317 198,675

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Reconciliation of the carrying amount of property, plant and equipment:

Carrying amount at beginning of year 198,675 237,604Additions 130,691 27,284Disposals (2,045) (20,017)Depreciation expense (42,903) (46,196)Depreciation capitalised under mineral exploration expenditure (26,101) -Carrying amount at end of the year 258,317 198,675

10. MINERAL EXPLORATION EXPENDITURE2010 2009

$ $

Balance at beginning of the year 1,160,944 91,091Deferred exploration expenditure 1,614,523 1,116,650Transfer to mineral exploration expenditure – held for sale (65,000) -Impairment (541,564) (46,797)Balance at end of the year 2,168,903 1,160,944

11. MINERAL EXPLORATION EXPENDITURE – HELD FOR SALE

Deferred exploration expenditure - at recoverable value 65,000 -

12. TRADE AND OTHER PAYABLES

Trade payables 60,791 175,362Accrued liabilities 212,534 120,600

273,325 295,962

13. PROVISIONS

Employee leave entitlementsBalance at beginning of year 46,594 25,908Provision during the year 40,120 50,954Amount used during the year (28,632) (30,268)Balance at end of the year 58,082 46,594

14. ISSUED CAPITAL

Ordinary shares, fully paid 12,365,338 9,642,001

Ordinary shares have the right to receive dividends as declared and, in the event of winding up the company, to participate in the proceeds from the sale of all surplus assets in proportion to the number of and amounts paid up on shares held. Ordinary shares entitle their holder to one vote, either in person or by proxy, at a meeting of the company.

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For the Year Ended 30 June 201014. ISSUED CAPITAL (Cont’d)

Number of shares $Movements 2010 2009 2010 2009Ordinary SharesAt 1 July 58,687,459 51,032,573 9,642,001 9,449,537Rights issue 58,687,459 - 1,760,624 -Shares issued in lieu of Grants Ridge finders fee 1,000,000 - 32,000 -Issue of shares as per Grants Ridge agreement 750,000 1,000,000 26,250 45,000Shares issued in lieu of fees to directors 2,545,000 - 44,350 -Placement shares 44,337,785 6,654,886 1,260,933 199,647Issue costs - - (400,820) (52,183)At 30 June 166,007,703 58,687,459 12,365,338 9,642,001

Share optionsExercise

priceExpiry date

Balance at beginning of

year

Granted during the

year

Exercised during

the year

Expired or forfeited

during the year

Balance at end of year

Options exercisable at end of

year

Number Number Number Number Number Number

2010 yearUnlisted options $0.2804 31/07/10 23,625,000 - - (13,625,000) 10,000,000 10,000,000Unlisted options $0.3804 01/01/11 250,000 - - (250,000) - -Unlisted options $0.5804 01/01/11 250,000 - - (250,000) - -Unlisted options $0.40 31/07/11 1,925,000 - - (675,000) 1,250,000 1,250,000Unlisted options $0.60 31/07/11 1,925,000 - - (675,000) 1,250,000 1,250,000Unlisted options $0.40 31/07/12 250,000 - - - 250,000 250,000Unlisted options 1 $0.60 31/07/12 250,000 - - - 250,000 250,000Listed options 2 $0.07 13/07/12 - 43,387,074 - - 43,387,074 43,387,074Listed options 3 $0.07 13/07/12 - 10,000,000 - - 10,000,000 10,000,000

28,475,000 53,387,074 - (15,475,000) 66,387,074 66,387,0741 Options granted to P Schiemer on 28 May 2008 (exercise price of 60 cents) vested on 1 May 2010.2 Options were free attaching to the shares issued under the rights issue and share placement during the year. 3 Options were issued to Transocean Securities in lieu of services related to rights issue. The fair value of the options on measurement date was $81,594.2009 yearUnlisted options $0.2804 31/07/10 23,625,000 - - - 23,625,000 23,625,000Unlisted options $0.3804 01/01/11 250,000 - - - 250,000 250,000Unlisted options $0.5804 01/01/11 250,000 - - - 250,000 250,000Unlisted options $0.40 31/07/11 1,925,000 - - - 1,925,000 1,925,000Unlisted options $0.60 31/07/11 1,925,000 - - - 1,925,000 1,925,000Unlisted options $0.40 31/07/12 250,000 - - - 250,000 250,000Unlisted options $0.60 31/07/12 250,000 - - - 250,000 -Listed options $0.1804 24/05/09 20,986,176 - - (20,986,176) - -

49,461,176 - - (20,986,176) 28,475,000 28,225,000The Company has two Employee Share Option Plans under which Options to subscribe for the Company’s shares have been granted to directors, senior executives and employees.The share option holders carry no rights to dividends and no voting rights.

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15. RESERVES

a) Options reserve

The option reserve is used to record the value of share based payments provided to consultants and employees, including key management personnel.

b) Foreign currency reserve

The foreign currency reserve accumulates all foreign exchange differences arising from foreign subsidiaries.

16. SEGMENT INFORMATION

The directors have considered the requirements of AASB 8 – Operating Segments and the internal reports that are reviewed by the chief operating decision maker (the Board) in allocating resources and have concluded during the year, Uran Limited operated in the mineral exploration industry within the geographical segments of Australia and USA.

Australia Australia USA USA Consolidated Consolidated2010 2009 2010 2009 2010 2009

$ $ $ $ $ $Revenue 42,499 108,438 - - 42,499 108,438

Assets 372,543 531,664 2,458,323 1,160,944 2,830,866 1,692,608

Major Customers - - - - - -

17. RECONCILIATION OF STATEMENT OF CASH FLOWS

Reconciliation of net loss after tax to net cash flows from operations:2010 2009

$ $

Loss for the year (1,693,759) (2,020,138)Depreciation expense 42,903 46,196 Impairment of non-current assets 541,564 146,798 Loss on disposal of other financial assets 19 -Loss on disposal of plant and equipment 2,045 1,155 Share based payment 60,488 51,396 Changes in assets and liabilities Trade and other receivables 32,016 (8,304)Prepayments 33,252 31,171)Provisions 11,488 20,685Trade and other payables (22,636) 37,123Mineral exploration expenditure (1,508,076) (1,039,650)

(2,500,696)

(2,795,910)

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18. CONTROLLED ENTITIES

The consolidated financial statements include the financial statements of Uran Limited and the subsidiaries listed below:

Name Country ofIncorporation

Equity%

Investment

2010 2009 2010 2009Juno Minerals Ltd Australia 100 100 969 1Zoloto Mines Ltd Australia 100 100 1 1New Mexico Investments Inc USA 100 - 1 -

971 2

19. RELATED PARTIES

Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to other parties unless otherwise stated. Transactions with related parties:

a) Ultimate parent company Uran Limited is the ultimate Australian parent Company.

b) Controlled entities Interests in controlled entities are set out in Note 18.

c) Key management personnel Details relating to key management personnel are set out in the Remuneration Report and Note 20.

d) Other transactions with Directors and Director related entities

i) In December 2006 the Company announced to ASX it had exercised its option , subject to shareholders approval, to acquire Discovery Minerals Pty Ltd, a company of which Mrs C M Hobbs is a director and shareholder. Shareholder approval will be required to approve the acquisition of Discovery Minerals Pty Ltd. During the year, Uran Limited decided not to proceed with the agreement to acquire Discovery Minerals Pty Ltd. The Company formed a view that it could not accept the terms of the Share Sale Agreement due to uncertainty as to whether Discovery’s applications for exploration permits over the Czech uranium deposits will be granted. Implicit in the Discovery option agreement, the Company was to fund the projects of Discovery which were the subject of the option agreement. During the year up until the agreement was terminated, the Company paid a total of $43,873 for legal and consulting fees in respect of these projects (2009: $313,993).

ii) During the year, Mr Shane Hartwig was appointed to the board of directors as a representative of Transocean Securities Pty Ltd, where Mr Shane Hartwig is an employee.

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During the year, the Company paid fees to Transocean Securities Pty Ltd for providing underwriting services for the Company’s July 2009 rights issue. The Company paid marketing fees of $50,000, underwriting fees of $105,637 and advisory fees of $35,000 as well as issuing 10,000,000 listed options which had a fair value at measurement date of $81,594. The options issued have an exercise price of $0.08 and expire on 13 July 2010.

Transocean Securities Pty Ltd received director fees for the year ended 30 June 2010 totalling $24,000, comprised of $10,000 in short term benefits and 1,000,000 shares with a fair value at grant date of $14,000, issued in lieu of January to June 2010 director fees.

The above transactions were entered into on normal commercial terms and conditions.

20. KEY MANAGEMENT PERSONNEL

a) Compensation for Key Management Personnel

2010$

2009$

Short term employee benefits 423,156 677,703Post employment benefits 34,482 69,642Termination benefits - 70,000Share based payments 46,488 51,396

504,126 868,741

b) Option Holdings of Key Management Personnel

30 June 2010

Balance1 July 2009

Options Granted

Options Cancelled

Other Balance30 June

2010

Total Exercisable Not Exercisable

DirectorsP E Ryan 1,260,000 - - 13,066 1,273,066 1,273,066 1,273,066 -C M Hobbs 10,000,000 - - 2,020,566 12,020,566 12,020,566 12,020,566 -W Martinick 1,250,000 - - - 1,250,000 1,250,000 1,250,000 -S Hartwig 1 - - - - - - - -

ExecutivesP Schiemer 500,000 - - - 500,000 500,000 500,000 -

13,010,000 - - 2,033,632 15,043,632 15,043,632 15,043,632 -1 S Hartwig – appointed 25 August 2009F

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30 June 2009

Balance1 July 2008

Options Granted

Options Cancelled

Other Balance30 June

2009

Total Exercisable Not Exercisable

DirectorsP E Ryan 1,260,000 - - - 1,260,000 1,260,000 1,260,000 -C M Hobbs 10,000,000 - - - 10,000,000 10,000,000 10,000,000 -W Martinick 1,250,000 - - - 1,250,000 1,250,000 1,250,000 -R Kennedy 1 1,500,000 - - (1,500,000) - - - -T Schrimpf 2 1,250,000 - - (1,250,000) - - - -

ExecutivesP Schiemer 500,000 - - - 500,000 500,000 250,000 250,000J Cucvara 3 1,000,000 - - (1,000,000) - - - -K Edwards 4 875,000 - - (875,000) - - - -

17,635,000 - - (4,625,000) 13,010,000 13,010,000 12,760,000 250,0001 R Kennedy – resigned 1September 20082 T Schrimpf – resigned 29 October 2008

3 J Cucvara – resigned 23 October 20084 K F Edwards – resigned 1 February 2009

c) Shareholdings of Key Management Personnel

Ordinary Shares30 June 2010

Balance1 July 2009

Granted as Remuneration

On exercise ofOptions

Net ChangeOther

Balance30 June 2010

DirectorsP E Ryan 1 26,131 272,500 - 26,131 324,762C M Hobbs 4,041,131 - - 4,041,131 8,082,262W Martinick 1 - 1,272,500 - - 1,272,500S Hartwig 2 - - - - -

ExecutivesP B Schiemer 90,000 - - - 90,000

4,157,262 1,545,000 - 4,067,262 9,769,5241 Shares granted as remuneration were in lieu of fees to directors 2 S Hartwig – appointed 25 August 2009

Ordinary Shares30 June 2009

Balance1 July 2008

Granted as Remuneration

On exercise ofOptions

Net ChangeOther

Balance30 June 2009

DirectorsP E Ryan 26,131 - - - 26,131C M Hobbs 4,041,131 - - - 4,041,131W Martinick - - - - -D R Kennedy 1 261,131 - - (261,131) -T Schrimpf 2 - - - - -

ExecutivesP B Schiemer - - - 90,000 90,000J Cucvara 3 - - - - -K F Edwards 4 211,131 - - (211,131) -

4,539,524 - - (382,262) 4,157,2621 R Kennedy – resigned 1September 20082 T Schrimpf – resigned 29 October 2008

3 J Cucvara – resigned 23 October 20084 K F Edwards – resigned 1 February 2009

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21. AUDITORS REMUNERATION

2010$

2009$

Amounts received or due and receivable for:• an audit or review of the financial report of the Company 30,000 44,540• tax advisory services 2,500 46,970

32,500 91,510

22. FINANCIAL RISK MANAGEMENT

The Company attempts to mitigate risks that may affect its future performance through a systematic process of identifying, assessing, reporting and managing risks of corporate significance.

The management and the Board discuss the principal risks of the Group, particularly during the strategic planning and budgeting processes. The Board sets policies for the implementation of systems to manage and monitor identifiable risks. The Board Risk Committee is responsible for the oversight of risk management.

The Group‘s principal financial instruments comprise cash and short term deposits. The Group has various other financial assets and liabilities such as trade receivables and trade payables, which arise directly from its operations.

The main purpose of these financial assets and liabilities is to raise finance for the Group’s operations. It is, and has been throughout the entire period under review, the Group’s policy that no trading in financial instruments shall be undertaken.

The main risks arising from the Group’s financial instruments are cash flow interest rate risk. Other minor risks are summarised below. The Board reviews and agrees policies for managing each of these risks.

(a) Credit Risk

The Group minimises credit risk by undertaking a detailed review of its potential customers’ financial position and the viability of the underlying project prior to entering into material contracts.

Financial instruments other than receivables (refer to Note 6) that potentially subject the Group to concentrations of credit risk consist principally of cash deposits. The Group places its cash deposits with high credit-quality financial institutions, being in Australia only the major Australian (big four) banks. Cash holdings in other countries are generally not significant. The Group’s cash deposits all mature within twelve months and attract a rate of interest at normal short-term money market rates.

The maximum amount of credit risk the Group considers it would be exposed to would be $338,646 (2009: $299,737), being the total of its carrying values of cash and cash equivalents and other financial assets.

Sundry debtors are non interest bearing and receivable within 30 days.

(b) Interest Rate Risk

The Group’s exposure to the risks of changes in market interest rates relates primarily to the Group’s short term deposits with a floating interest rate. All other financial assets and liabilities in the form

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of receivables and payables are non-interest bearing. The Group does not engage in any hedging or derivative transactions to manage interest rate risk.

The following table sets out the Group’s exposure to interest rate risk and the effective weighted average interest rate for each class of these financial instruments.

A 100 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the possible change in interest rates. Based on the simulations performed, the annual impact on profit or loss of a one percent shift in interest rates, with all other variables held constant, is estimated to be a maximum increase or decrease of $3,280 (2009: $2,571).

The Group constantly analyses its interest rate exposure to ensure the appropriate mix of fixed and variable rates.

The Group has not entered into any hedging activities to cover interest rate risk. In regard to its interest rate risk, the Group continuously analyses its exposure. Within this analysis consideration is given to potential renewals of existing positions, alternative investments and the mix of fixed and variable interest rates.

Floating Interest Rate

Fixed Interest Rate Non-Interest Bearing

Total Carrying Amount

Notes $ $ $ $ $ $ $ $2010 2009 2010 2009 2010 2009 2010 2009

Financial Assets Cash and cash equivalent

5 114,918 125,836 - - - - 114,918 125,836

Trade and other receivables

6 - - - - 10,586 42,602 10,586 42,602

Other financial assets 8 213,142 131,280 - 19 213,142 131,299 114,918 125,836 213,142 131,280 10,586 42,621 338,646 299,737

Weighted average interest rate 3.67% 4.40%

Interest Rate Risk Sensitivity 2010 2009 -1% 1% -1% 1% Profit Equity Profit Equity Profit Equity Profit EquityFinancial Assets Cash and cash equivalent (1,149) (1,149) 1,149 1,149 (1,258) (1,258) 1,258 1,258Other financial assets (2,131) (2,131) 2,131 2,131 (1,313) (1,313) 1,313 1,313

(3,280) (3,280) 3,280 3,280 (2,571) (2,571) 2,571 2,571

(c) Price Risk

The Group is not exposed to equity securities price risk. There is no active market for available for sale investments which are shares in unlisted entities.

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(d) Liquidity Risk

The Group’s objective is to match the terms of its funding sources to the terms of the assets or operations being financed. The Group uses a combination of trade payables, finance leases, operating leases and other long-term borrowings to provide its necessary debt funding.

The Group aims to hold sufficient reserves of cash or cash equivalents to help manage the fluctuations in working capital requirements and provide the flexibility for investment into long-term assets without the need to raise debt.

Contractual maturities of payables at balance date2010 2009

$ $Payable on an undiscounted gross basis- Less than 6 months 273,325 295,962

(e) Commodity Price Risk

Due to the early stage of the Group’s operations its exposure is considered minimal. Risk arises as its operations are involved in exploration and development of mineral commodities, changes in the price of commodities for which the company is exploring and developing may result in changes to the Company’s market price. The Group does not hedge any of its exposures.

(f) Foreign currency exchange rate

The Group is exposed to foreign exchange rate currency exposures, primarily with respect to the US dollar.

Foreign exchange risk arises from future commercial transactions and recognized assets and liabilities denominated in a currency that is not the Company’s functional currency. The risk is measured using sensitivity analysis.

The following significant exchange rates were applied during the year:

Reporting date spot rate30 June 2010 30 June 2009

$ $United States Dollar 0.8567 -

The Group’s exposure to foreign currency risk at the reporting date was as follows:

Net Financial Assets/(Liabilities)in AUD

30 June 2010 30 June 2009Functional currency of group entity $ $United States Dollar 788,949 -

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Foreign currency risk sensitivity analysisAt 30 June, the effect on loss and equity as a result of changes in the value of the Australian Dollar to the foreign currencies, with all other variables remaining constant is as follows:

ConsolidatedProfit Equity

$ $Year ended 30 June 2010+/-10% in $A/$US - 2,210

Year ended 30 June 2009+/-10% in $A/$US - -

(g) Net fair values No financial assets and liabilities are readily traded on organised markets, hence net fair values approximate their carrying value. The Group has no financial assets where the carrying value amount exceeds fair value at balance date.

23. SHARE-BASED PAYMENTS

(a) Recognised share based payment expenses

The share based payment expense recognised for employee services received during the year is shown in the table below:

2010 2009$ $

Shares issued (in lieu of cash for director’s fees) 44,350 -Expense arising from employee share option plan no.2 16,138 51,396

60,488 51,396

On 10 July 2009, the Company held a General Meeting of Shareholders at The Celtic Club, 48 Ord Street, West Perth, Western Australia. All resolutions were passed on a show of hands. The Company granted 272,500 shares with a fair value of 3 cents to each of Mr Ryan and Dr Martinick. The shares were issued in lieu of director’s fees for the quarter April – June 2009.

On 25 June 2010, the Company held a General Meeting of Shareholders at RSM Bird Cameron, 8 St Georges Terrace, East Perth, Western Australia. All resolutions were passed on a show of hands. The Company granted 1,000,000 shares with a fair value of 1.4 cents to each of Dr Martinick and Transocean Securities Pty Ltd, a company which Mr Hartwig is an employee. The shares were issued in lieu of director’s fees for the period January – June 2010.

The share-based payment plans are described below. There have been no cancellations or modifications to any of the plans during 2010 and 2009.

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23. SHARE-BASED PAYMENTS (Cont’d)

(b) Types of Share based payment plans

Uran Limited, Employee Share Option Plan

Share options are granted to senior executives and designed to provide executives an incentive and participate along with shareholders by increasing the value of the Company’s shares. The options are issued by the Board having regard, in each case to:

(i) the contribution to the Company which has been made by the Participant;(ii) the period of employment of the Participant with the Company, including (but not limited to) the years of service by that Participant; (iii) the potential contribution of the Participant to the Company; and (iv) any other matters which the Board considers in its absolute discretion, to be relevant.

The options are issued to participants at a price the Board considers appropriate, but in any event, no more than nominal consideration.

Uran Limited, Employee Share Option Plan No. 2

The options are issued by the Board having regard, in each case, to: (i) the contribution to the Company which has been made by the Participant; (ii) the period of employment of the Participant with the Company, including (but not limited to) the years of service by that Participant; (iii) the potential contribution of the Participant to the Company; and (iv) any other matters which the Board considers in its absolute discretion, to be relevant. The options are issued to participants at a price the Board considers appropriate, but in any event, no more than nominal consideration.

The exercise price and the expiry date of the options is set by the Board.

Options lapse on the date of 30 days following the participant ceasing to be employed by the Company or such later date that the Board determines where the participant ceases to be employed by virtue of retirement or permanent illness or incapacity.F

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23. SHARE-BASED PAYMENTS (Cont’d)

(c) Summary of Options granted under Employee Share Option Plans

2010 2009No Weighted

Average Exercise

Price

No Weighted Average Exercise

PriceOutstanding at beginning of the year 28,475,000 31.75 cents 28,475,000 31.75 centsGranted during the year - - - -Forfeited during the year (15,475,000) (30.60 cents) - -Exercised during the year - - - -Outstanding at end of the year 13,000,000 33.11 cents 28,475,000 31.75 cents

24. EVENTS SUBSEQUENT TO BALANCE DATE

On 21 July 2010, the Company announced that it had received valid acceptances from shareholders for 29,610,610 shares pursuant to the Rights Issue lodged with ASIC and ASX on 17 June 2010. On 11 August the Company announced that it had completed the allocation of the shortfall. All 52,393,241 shares under the shortfall were placed to sophisticated investors. The total amount raised before costs was $1,230,058 (i.e 82,003,851 shares at 1.5c).

On 2 August 2010, the Company advised that 23,625,000 unlisted options with an exercise price of 28.04 cents had expired on 31 July 2010.

On 11 August 2010, Kate Hobbs lodged a Form 605, notifying that she was ceasing to be a substantial shareholder due to dilution from the issue of shares under the Rights Issue.

On 31 August 2010, the Company informed the market that in order to reduce financial liabilities within the Company, the Board of Uran has provided 12 months notice of termination of employment to Kate Hobbs, the current Managing Director. Ms Hobbs’ current employment contract requires the Company to provide 12 months notice if it seeks to terminate the contract without cause. The Board has determined to reduce this potential liability by giving notice to terminate the existing contract. The Company will, at a period closer to the expiration of this 12 month period time, seek to renegotiate a new employment contract with Ms Hobbs on similar terms to the existing contract, subject to a reduction in the termination notice period.

Other than disclosed above, between the end of the financial year and the date of this there are no items, transactions or events of a material and unusual nature likely, in the opinion of the Directors, to affect significantly, the results of those operations, or the state of affairs of the Group in future financial years.F

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25. COMMITMENTS

(a) Operating Leases

Commitments for minimum lease payments in relation to non-cancellable operating leases for office premises are payable as follows:

2010$

2009$

Within one year 154,331 137,698Later than one year but no later than 5 years 154,331 390,150

308,662 527,848

(b) Exploration

Commitments in relation to Grants Ridge project as follows:

Within one year - 150,000Later than one year but no later than 5 years - 1,500,000

- 1,650,000

There are no further exploration commitments under the Grants Ridge Joint Venture agreement, other than a feasibility study. The cost of the feasibility study has not been included as an exploration commitment above as it cannot be reliably measured.

(c) Share issue

Commitments in relation to Grants Ridge project as follows:

Number of shares

Number of shares

Within one year 750,000 750,000Later than one year but no later than 5 years 750,000 1,500,000

1,500,000 2,250,000

26. CONTINGENT LIABILITIES

There are no contingent liabilities at reporting date.

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27. PARENT INFORMATION

2010$

2009$

Financial PositionAssetsCurrent assets 138,226 261,678Non current assets 2,637,326 1,430,930Total assets 2,775,552 1,692,608

LiabilitiesCurrent liabilities 295,682 342,556Total liabilities 295,682 342,556

EquityIssued capital 12,365,338 9,642,001Reserves 3,309,090 3,211,358Accumulated Losses (13,194,558) (11,503,307)Total equity 2,479,870 1,350,052

Financial Performance

Loss for the year (1,691,251) (2,020,138)Other comprehensive income - -Total comprehensive income (1,691,251) (2,020,138)

Contingent liabilities of the parent

The parent entity did not have any contingent liabilities as at 30 June 2010 or 30 June 2009.

Contractual commitments for the acquisition of property, plant or equipment

As at 30 June 2010 (30 June 2009 – $Nil), the parent entity did not have any contractual commitments for the acquisition of property, plant or equipment.

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28. New accounting standards and interpretations issued but not yet effective

At the date of this financial report the following standards and interpretations, which may impact the Group in the period of initial application, have been issued but are not yet effective:

Reference Title Summary Application date(financial years

beginning)AASB 2009-5 Further Amendments to

Australian Accounting Standards arising from the Annual Improvements Project [AASB 5, 8, 101, 107, 117, 118, 136, 139]

Amends a number of standards as a result of the annual improvements project.

1 January 2010

AASB 9 Financial Instruments Replaces the requirements of AASB 139 for the classification and measurement of financial assets. This is the result of the first part of Phase 1 of the IASB’s project to replace IAS 39.

1 January 2013

AASB 124 Related Party Disclosures Revised standard. The definition of a related party is simplified to clarify its intended meaning and eliminate inconsistencies from the application of the definition.

1 January 2011

2009-11 Amendments to Australian Accounting Standards arising from AASB 9

Amends AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 121, 127, 128, 131, 132, 136, 139, 1023 and 1038 and Interpretations 10 and 12 as a result of the issuance of AASB 9.

1 January 2013

2009-12 Amendments to Australian Accounting Standards

Amends AASB 8 Operating Segments as a result of the revised AASB 124. Amends AASB 5, 108, 110, 112, 119, 133, 137, 139, 1023 & 1031 and Interpretations 2, 4, 16, 1039 & 1052 as a result of the annual improvement project.

1 January 2011

2010-3 Amendments to Australian Accounting Standards arising from the Annual Improvements Project

Amends AASB 3, AASB 7, AASB 121, AASB 128, AASB 131, AASB 132 & AASB 139 as a result of the annual improvements project.

1 July 2010

2010-4 Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project

Further amends AASB 1, AASB 7, AASB 101 & AASB 134 and Interpretation 13 as a result of the annual improvements project.

1 January 2010

The expected impact on the Group of the above standards and interpretations are currently being assessed by management. A final assessment has not been made on the expected impact of these standards and interpretations, however, it is expected that there will be no significant changes to the accounting policies of the Company.

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Directors’ Declaration

In the opinion of the Directors:

(a) The accompanying financial statements and the notes and the additional disclosures included in the directors’ report designated as audited of the consolidated entity are in accordance with the Corporations Act 2001, including:

(i) Giving a true and fair view of the consolidated entity’s financial position as at 30 June 2010 and of their performance for the year ended that date; and

(ii)Complying with Accounting Standards (including the Australian Accounting Interpretations) and Corporations Regulations 2001; and

b) The financial statements and notes thereto are in accordance with International Financial Reporting Standards issued by the International Accounting Standards Board, as disclosed in Note 1; a

c) There are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

This declaration has been made after receiving the declarations required to be made to the directors in accordance with section 295A of the Corporations Act 2001 for the financial year ended 30 June 2010.

Signed in accordance with a resolution of the Directors made pursuant to section 295(5) of the Corporations Act 2001.

On behalf of the DirectorsPATRICK RYANChairman

DATED at PERTH this 24th day of September 2010

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RSM Bird Cameron Partners

8 St George’s Terrace Perth WA 6000

GPO Box R1253 Perth WA 6844

T +61 8 9261 9100 F +61 8 9261 9111

www.rsmi.com.au

Liability limited by a scheme approved under Professional Standards Legislation

Major Offices in: Perth, Sydney, Melbourne, Adelaide and Canberra ABN 36 965 185 036

RSM Bird Cameron Partners is an independent member firm of RSM International, an affiliation of independent accounting and consulting firms. RSM International is the name given to a network of independent accounting and consulting firms each of which practices in its own right. RSM International does not exist in any jurisdiction as a separate legal entity.

INDEPENDENT AUDITOR’S REPORT

TO THE MEMBERS OF URAN LIMITED

Report on the Financial Report We have audited the accompanying financial report of Uran Limited, which comprises the statement of financial position as at 30 June 2010, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, a summary of significant accounting policies, other explanatory notes and the directors' declaration of the consolidated entity comprising the company and the entities it controlled at the year’s end or from time to time during the financial year. Directors’ Responsibility for the Financial Report The directors of the company are responsible for the preparation and fair presentation of the financial report in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Act 2001. This responsibility includes establishing and maintaining internal control relevant to the preparation and fair presentation of the financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. In Note 1, the directors also state, in accordance with Accounting Standard AASB 101 Presentation of Financial Statements, that compliance with the Australian equivalents to International Financial Reporting Standards ensures that the financial report, comprising the consolidated financial statements and notes, complies with International Financial Reporting Standards. Auditor’s Responsibility Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. These Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit

opinions.

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Auditor’s Independence Declaration In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001. Auditor’s Opinion In our opinion: (a) the financial report of Uran Limited is in accordance with the Corporations Act 2001, including:

(i) giving a true and fair view of the consolidated entity’s financial position as at 30 June 2010 and of their performance for the year ended on that date; and

(ii) complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and

the Corporations Regulations 2001; and (b) the financial report also complies with International Financial Reporting Standards as disclosed in Note 1. Report on the Remuneration Report We have audited the Remuneration Report which is included within the directors’ report for the financial year ended 30 June 2010. The directors of the company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards. Auditor’s Opinion In our opinion the Remuneration Report of Uran Limited for the financial year ended 30 June 2010 complies with section 300A of the Corporations Act 2001.

RSM BIRD CAMERON PARTNERS

Chartered Accountants

Perth, WA TUTU PHONG

Dated: 24 September 2010 Partner

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Shareholder InformationAdditional information required by the Australian Securities Exchange Limited Listing Rules, and not disclosed elsewhere in this report.

SHAREHOLDINGS

At the date of this report there are no shareholders who are substantial shareholder notices with the Company.

CLASS OF SHARES AND VOTING RIGHTS

The voting rights attached to the Fully Paid Ordinary shares of the Company are:

a) at a meeting of members or classes of members each member entitled to vote may vote in person or by proxy or by attorney; and

b) on a show of hands every person present who is a member has one vote, and on a poll every person present in person or by proxy or attorney has one vote for each ordinary share held.

Options do not carry any voting rights.

DISTRIBUTION OF SHAREHOLDERS (as at 31 August 20010)Range Total holders Units % of Issued Capital

1 - 1,000 304 113,430 0.05

1,001 - 5,000 295 901,193 0.36

5,001 - 10,000 215 1,773,434 0.72

10,001 - 100,000 646 24,093,390 9.71

100,001 - 9,999,999,999 270 221,130,107 89.16

Rounding 0.00

Total 1,730 248,011,554 100.00

There were 927 shareholders holding less than a marketable parcel at 31 August 2009.

There is no current on-market buy back taking place.

During the reporting year the Company used its cash and assets in a manner consistent with its business objectives.

DISTRIBUTION OF LISTED OPTIONHOLDERS (as at 31 August 2010)

Range Total holders Units % of Issued Capital1 - 1,000 54 25,535 0.05

1,001 - 5,000 140 436,087 0.825,001 - 10,000 59 446,239 0.84

10,001 - 100,000 108 4,118,500 7.71100,001 - 9,999,999,999 55 48,360,713 90.59

Rounding -0.01Total 416 53,387,074 100.00

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Shareholder Information continued

TWENTY LARGEST SHAREHOLDERS

(as at 22 September 2010)

Rank Name Units % of Units

1.MR JOHN GEORGIADES + MISS NICOLE LOUISE MORCOMBE <THE CONVENTUS CAPITAL A/C> 10,000,000 4.03

2. MANDEVILLA PTY LTD 10,000,000 4.03

3. SKYMIST ENTERPRISES PTY LTD 9,911,487 4.00

4. BLUEBASE PTY LTD 9,000,000 3.63

5.MS CATHERINE MARY HOBBS + MS AVELEY ROSE MCCANN <KATE HOBBS SUPERANNUATION FUND> 8,022,262 3.23

6. NUMBER 7 INVESTMENTS PTY LTD <SUPERANNUATION FUND A/C> 8,000,000 3.23

7. URIO INVESTMENTS PTY LIMITED <URIO FAMILY A/C> 7,132,500 2.88

8. CITICORP NOMINEES PTY LIMITED 6,295,858 2.54

9. MISS KATHRYN YULE 6,000,000 2.42

10. AS & JR LIBBIS PTY LIMITED <LIBBIS FAMILY A/C> 5,327,817 2.15

11. LAPIN TRADING PTY LTD <LAPIN TRADING A/C> 4,700,000 1.90

12. OHIO ENTERPRISES PTY LTD <OHIO SUPER FUND A/C> 4,011,131 1.62

13. MR KRIS FRANCIS MARTINICK 4,010,000 1.62

14. MRS JIRACHAYA CHARNCHAYASUK 4,000,000 1.61

15. MS RINI KAJAIRI 3,500,000 1.41

16. SAYERS INVESTMENTS (ACT) PTY LIMITED <THE SAYERS INVEST NO 2 A/C> 3,085,000 1.24

17. MS BETTY ANN STEVENS 3,000,000 1.21

18. SMC CAPITAL PTY LTD <SMC CAPITAL A/C> 2,557,143 1.03

19. JINDALEE RESOURCES LIMITED 2,542,000 1.02

20. PETER ERMAN PTY LIMITED <SUPERANNUATION FUND A/C> 2,500,000 1.01

Totals: Top 20 holders of ORDINARY SHARES (GROUPED) 113,595,198 45.80

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Shareholder Information continued

TWENTY LARGEST OPTIONHOLDERS (Listed Options)

(as at 22 September 2010)

Rank Name Units % of Units

1. NUMBER 7 INVESTMENTS PTY LTD 9,250,000 17.33

2. CITICORP NOMINEES PTY LIMITED 5,812,702 10.89

3. GOFFACAN PTY LTD 3,200,000 5.99

4. AS & JR LIBBIS PTY LIMITED <LIBBIS FAMILY A/C> 2,250,000 4.21

5. LAPIN TRADING PTY LTD <LAPIN TRADING A/C> 2,142,857 4.01

6. SMC CAPITAL PTY LTD 2,032,857 3.81

7. CRAWLEY INVESTMENTS PTY LTD <THE CRAWLEY A/C> 2,005,566 3.76

8.MS CATHERINE MARY HOBBS + MS AVELEY ROSE MCCANN <KATE HOBBS SUPERANNUATION FUND> 2,005,566 3.76

9. MR SHANE FOLETTI 1,776,518 3.33

10. MR VINCENZO BRIZZI + MRS RITA LUCIA BRIZZI <BRIZZI FAMILY S/F A/C> 1,500,000 2.81

11. MR MATTHEW DAVID BURFORD 1,255,500 2.35

12. MR KRIS FRANCIS MARTINICK 1,195,000 2.24

13. GEBA PTY LTD <GEBA FAMILY A/C> 1,000,000 1.87

14. MS RINI KAJAIRI 1,000,000 1.87

15. MR TARIQ TCHIER 1,000,000 1.87

16. MERRILL LYNCH (AUSTRALIA) NOMINEES PTY LIMITED 691,204 1.29

17. RENEE MANAGEMENT PTY LTD <SUPERANNUATION FUND A/C> 689,425 1.29

18. NUMBER 7 INVESTMENTS PTY LTD 624,753 1.17

19. MR TIMOTHY JOHN BUDDEN 616,638 1.16

20. MR LEIGH NEIL HENDERSON + MR KALLAN MICHAEL HENDERSON 560,364 1.05

Totals: Top 20 holders of LIST OPTS EXP 13/07/12 @$0.08 40,608,950 76.07

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