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MCARTHUR RIVER & KEY LAKE

McArthur River is the world’s largest high!grade ura"iu# #i"ea"d Ke$ La%e is the largest ura"iu# #ill i" the world

're grades at the McArthur River #i"e are ()) ti#es the worldaverage which #ea"s it ca" *roduce #ore tha" (+ #illio"*ou"ds *er $ear ,$ #i"i"g o"l$ (-) to .)) to""es o/ ore *er da$0e are the o*erator

McArthur River is o"e o/ our three #aterial ura"iu# *ro*erties

Locatio" 1as%atchewa" Ca"ada

'w"ershi* 23+)-4 5 McArthur River

+6664 5 Ke$ La%e

E"d *roduct Ura"iu# co"ce"trates

I1' certi7catio" I1' (8))( certi7ed

Mi"e t$*e U"dergrou"d

Esti#ated reserves 9our

share:

.28- #illio" *ou"ds 9*rove" a"d *ro,a,le:

average grade U6'+; (2624

Esti#ated resources 9our

share:

+- #illio" *ou"ds 9#easured a"d

i"dicated: average grade U6'+; -2-4

63- #illio" *ou"ds 9i"/erred: average

grade U6'+; <<+4

Mi"i"g #ethods Curre"tl$; raise,ori"g

1eco"dar$ 9u"der develo*#e"t:; ,lasthole

sto*i"g =o>hole ,ori"g

Lice"sed ca*acit$ Mi"e a"d #ill; (+< #illio" *ou"ds *er $ear

9ca" ,e e>ceeded 5 see Productionfexibility :

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 Total

*roductio";

9())4 ,asis:

.))) to

.)(.

.6)- #illio" *ou"ds 9McArthur River?Ke$

La%e:

  (3+6 to

.)).

.)3+ #illio" *ou"ds 9Ke$ La%e:

.)(. *roductio" 9our share: (62 #illio" *ou"ds

.)(6 /orecast

*roductio" 9our share:

(6. #illio" *ou"ds

Esti#ated deco##issio"i"g

cost

9())4 ,asis:

@8+ #illio" 5 McArthur River 9*e"di"g

regulator$ review:

@..- #illio" 5 Ke$ La%e 9*e"di"g regulator$

review:

=ac%grou"d

roductio" Be>i,ilit$

'ur o*erati"g lice"ces /or the Ke$ La%e #ill a"d McArthur River#i"e were a#e"ded i" .))3 a"d .)() givi"g us Be>i,ilit$ i" oura""ual lice"sed *roductio" li#it As lo"g as average a""ual*roductio" does "ot e>ceed (+< #illio" *ou"ds *er $ear thesea#e"d#e"ts allow;

• the Ke$ La%e #ill to *roduce u* to .)8 #illio" *ou"ds9())4 ,asis: *er $ear

• the McArthur River #i"e to *roduce u* to .( #illio"

*ou"ds 9())4 ,asis: *er $earI/ *roductio" is lower tha" (+< #illio" *ou"ds i" a"$ $ear weca" *roduce #ore i" /uture $ears u"til we recover the short/all

Mi"i"g #ethods a"d tech"iues

0e use a "u#,er o/ i""ovative #ethods to #i"e the McArthurRiver de*osit;

Ground reezing

 The sa"dsto"e that overla$s the de*osit a"d ,ase#e"t roc%s iswater!,eari"g with large volu#es o/ water u"der sig"i7ca"t*ressure 0e use grou"d /reeDi"g to /or# a" i#*er#ea,le wallarou"d the area ,ei"g #i"ed This *reve"ts water /ro# e"teri"gthe #i"e a"d hel*s sta,iliDe wea% roc% /or#atio"s To date wehave i"stalled 7ve /reeDewalls a"d are curre"tl$ *re*ari"g asi>th

Raisebore mining

Raise,ore #i"i"g is a" i""ovative "o"!e"tr$ a**roach that we

ada*ted to #eet the u"iue challe"ges at McArthur River Iti"volves;

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• drilli"g a series o/ overla**i"g holes through the ore Do"e/ro# a raise,ore cha#,er i" waste roc% a,ove the#i"eraliDatio"

• collecti"g the ,ro%e" ore at the ,otto# o/ the raises usi"gli"e!o/!sight re#ote!co"trolled scoo* tra#s a"d tra"s*orti"g itto a gri"di"g circuit

• o"ce #i"i"g is co#*lete 7lli"g each raise,ore hole withco"crete

• whe" all the rows o/ raises i" a cha#,er are co#*lete

re#ovi"g the eui*#e"t a"d 7lli"g the e"tire cha#,er withco"crete

• starti"g the *rocess agai" with the "e>t raise,ore

cha#,er

0e have used the raise,ore #i"i"g #ethod to success/ull$

e>tract a,out .6) #illio" *ou"ds 9())4 ,asis: si"ce we ,ega"#i"i"g i" (333

McArthur River curre"tl$ has si> areas with deli"eated #i"eralreserves 9Do"es ( to 8 Do"e 8 south a"d Do"e =: a"d eight areaswith deli"eated #i"eral resources 0e are curre"tl$ #i"i"g Do"e. a"d the lower area o/ Do"e 8

o"e . has ,ee" activel$ #i"ed si"ce *roductio" ,ega" It isdivided i"to /our *a"els 9*a"els ( . 6 a"d -: ,ased o" theco"7guratio" o/ the /reeDewall arou"d the ore As the /reeDewallis e>*a"ded the i""er co""ecti"g /reeDewalls are

deco##issio"ed i" order to recover the ura"iu# that wasi"accessi,le arou"d the active /reeDe *i*es a"el - re*rese"ts

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the u**er *ortio" o/ Do"e . overl$i"g *art o/ the other *a"elsMi"i"g is "eari"g co#*letio" i" *a"els ( . a"d 6 a"d the#aForit$ o/ the re#ai"i"g Do"e . *rove" #i"eral reserves are i"*a"el -

o"e 8 is divided i"to three #i"i"g areas; ce"tral "orth a"dsouth 0e are activel$ #i"i"g the ce"tral area A "ew #i"i"garea is also u"der develo*#e"t G Do"e 8 "orth G a"d is /orecastedto ,e i" *roductio" i" .)(8 Raise,ore #i"i"g is scheduled tore#ai" the *ri#ar$ e>tractio" #ethod over the li/e o/ #i"e 0eare testi"g two other #i"i"g #ethods ,lasthole sto*i"g a"d,o>hole ,ori"g U*o" success/ul co#*letio" o/ the test *rogra#si" .)(6 a" a**licatio" will ,e #ade to the C1C to a**rovethese #i"i"g #ethods as seco"dar$ e>tractio" #ethods /orMcArthur River

Boxhole boring

=o>hole ,ori"g is si#ilar to the raise,ore #ethod ,ut the drilli"g#achi"e is located ,elow the #i"eraliDatio" so develo*#e"t is"ot reuired a,ove the #i"eraliDatio" This #ethod is curre"tl$,ei"g used at a /ew #i"es arou"d the world ,ut had "ot ,ee"used /or ura"iu# #i"i"g *rior to testi"g at McArthur River

0e e>*ect ,o>hole ,ori"g will o"l$ ,e used as a seco"dar$#ethod i" areas where we deter#i"e raise,ori"g is "ot /easi,leor *ractical Test #i"i"g to date has ide"ti7ed this as a via,le#i"i"g o*tio" however o"l$ a #i"or a#ou"t o/ ore is scheduledto ,e e>tracted usi"g this #ethod

Blasthole stoping

=lasthole sto*i"g i"volves esta,lishi"g drill access a,ove the#i"eraliDatio" a"d e>tractio" access ,elow the #i"eraliDatio"

 The area ,etwee" the u**er a"d lower access levels 9the sto*e:is the" drilled oJ a"d ,lasted The ,ro%e" roc% is collected o" thelower level a"d re#oved ,$ li"e!o/!sight re#ote!co"trolled scoo*tra#s the" tra"s*orted to a gri"di"g circuit '"ce a sto*e is#i"ed out it is ,ac%7lled with co"crete to #ai"tai" grou"dsta,ilit$ a"d allow the "e>t sto*e i" seue"ce to ,e #i"ed This#i"i"g #ethod has ,ee" used e>te"sivel$ i" the #i"i"g i"dustr$

i"cludi"g ura"iu# #i"i"g

=lasthole sto*i"g is *la""ed i" areas where ,last holes ca" ,eaccuratel$ drilled a"d s#all sta,le sto*es e>cavated without

 Feo*ardiDi"g the /reeDewall i"tegrit$ 0e e>*ect this #ethod toco#*le#e"t the raise,ori"g #ethod a"d to allow /or #oreeco"o#ic recover$ o/ ore o" the *eri*her$ o/ the ore,od$ as wellas s#aller lower grade areas

.)(. U*date

roductio"

'ur share o/ *roductio" i" .)(. was (4 higher tha" our /orecast/or the $ear a"d .4 lower tha" total *roductio" i" .)((

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At McArthur River a"d Ke$ La%e we realiDed ,e"e7ts u"der the*roductio" Be>i,ilit$ a#e"d#e"ts to the McArthur River a"d Ke$La%e o*erati"g lice"ces 9see roductio" Be>i,ilit$: /or the /ourthco"secutive $ear '"goi"g eJorts to i#*rove the ecie"c$ a"drelia,ilit$ o/ the Ke$ La%e #ill resulted i" record #ill *er/or#a"ce0e have #itigated the ris% to *roductio" i" .)(6 associated with

the tra"sitio" to the u**er #i"i"g area o/ Do"e 8 0e have #ade*roductivit$ i#*rove#e"ts o" c$cle ti#es which i"clude the useo/ ,lasthole sto*i"g i" s#aller lower grade areas o/ the #i"elocated awa$ /ro# the /reeDewalls I" additio" we have cha"gedthe seue"ci"g o/ the raises i" Do"e . *a"el - which willi#*rove *roductivit$

ew #i"i"g areas

0e co"ti"ued drilli"g to i"stall the /reeDewall i" the u**er #i"i"garea o/ Do"e 8 "orth 0e e>*ect to 7"ish i"stalli"g ,ri"ecirculatio" li"es a"d start /reeDi"g u**er Do"e 8 "orth i" .)(6

a"d ,egi" *roductio" /ro# this area i" .)(8

I" additio" to the u"dergrou"d wor% we have started to u*gradeour electrical i"/rastructure o" sur/ace to address the /uture "eed/or i"creased ve"tilatio" a"d /reeDe ca*acit$ associated with#i"i"g "ew Do"es a"d i"creasi"g #i"e *roductio"

McArthur River *roductio" e>*a"sio"

I" .)(. we co#*leted the /easi,ilit$ stud$ o" the McArthur Rivere>te"sio" *roFect a"d ,ased o" the *ositive results revised our#i"e *la" to i"cor*orate a #i"e e>*a"sio" This i"cludes a"i"crease i" our a""ual *roductio" rate to .. #illio" *ou"dsU6'+ 9())4 ,asis: ,$ .)(+ su,Fect to recei*t o/ regulator$a**roval

0e were "oti7ed ,$ the C1C that the e"viro"#e"talassess#e"t /or the *la""ed i"crease i" *roductio" would ,etra"sitio"ed to the C1C lice"si"g a"d co#*lia"ce *rocessesrather tha" the /ederal e"viro"#e"tal assess#e"t *rocess 0eare develo*i"g *la"s to co#*lete this regulator$ *rocess

I" additio" we #ust co"ti"ue to success/ull$ tra"sitio" i"to "ew#i"e areas through #i"e develo*#e"t a"d i"vest#e"t i" su**ort

i"/rastructure As *art o/ this #ulti!$ear *roFect we *la" to;

• e>*a"d the /reeDe *la"t a"d electrical distri,utio" s$ste#s

• i"crease ve"tilatio" ,$ si"%i"g a /ourth sha/t at the"orther" e"d o/ the #i"e

• i#*rove our dewateri"g s$ste# a"d e>*a"d our water

treat#e"t ca*acit$

McArthur River tech"ical re*ort

I" .)(. we u*dated the McArthur River tech"ical re*ortHighlights i"cluded;

• a (34 i"crease i" our share o/ the #i"eral reserves due to

a ..4 additio" i" to""age a"d a slight decrease i" the

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esti#ated average grade or #ore i"/or#atio" see Mi"eralreserves a"d resources

• a decrease i" the esti#ated average cash o*erati"g cost

to a,out @(3.6 *er *ou"d over the li/e o/ the #i"e /ro# a,out@(323 *er *ou"d esti#ated i" .))3 des*ite the escalati"gcosts i" the i"dustr$

• a *roductio" rate i"crease to .. #illio" *ou"ds *er $earscheduled /or .)(+ su,Fect to regulator$ a**roval

• a #i"e li/e o/ at least .. $ears ,ased o" the *la""ed*roductio" schedule

Ke$ La%e e>te"sio" *roFect a"d #ill revitaliDatio"

 The Ke$ La%e #ill ,ega" o*erati"g i" (3+6 Mill *roductio" at Ke$La%e is e>*ected to closel$ /ollow McArthur River *roductio"su,Fect to recei*t o/ regulator$ a**roval As *art o/ our Ke$ La%ee>te"sio" e"viro"#e"tal assess#e"t we are see%i"g a**roval toi"crease Ke$ La%e’s "o#i"al a""ual *roductio" rate to .- #illio"

*ou"ds U6'+ a"d to i"crease our taili"gs ca*acit$

 The #ill revitaliDatio" *la" i"cludes u*gradi"g circuits with "ewtech"olog$ to si#*li/$ o*eratio"s a"d i#*rove e"viro"#e"tal*er/or#a"ce As *art o/ this *la" we re*laced the acid stea#a"d o>$ge" *la"ts

 Taili"gs ca*acit$

 This $ear we;

• adva"ced the e"viro"#e"tal assess#e"t /or the Ke$ La%e

e>te"sio" *roFect ,$ su,#itti"g the dra/t e"viro"#e"tal i#*actstate#e"t to the regulators receivi"g their co##e"ts a"d*rovidi"g res*o"ses

• ,ega" Batte"i"g the slo*e o/ the eil#a"" taili"gs#a"age#e"t /acilit$ *itwalls relocati"g a,out +)4 o/ the sa"d

E>*loratio"

I" .)(. our sur/ace e>*loratio" *rogra#s drill tested targets"orth a"d south o/ the curre"t #i"i"g areas

la""i"g or the uture

roductio"

orecast; (+< #illio" *ou"ds o/ U6'+ *er $ear u"til .)(< 9ourshare will ,e (6( #illio" *ou"ds: with a *la""ed *roductio"i"crease i" .)(+

ew #i"i"g Do"es

o"e 8 "orth is the "e>t area to ,e #i"ed It is curre"tl$ u"derdevelo*#e"t a"d we /orecast *roductio" to ,egi" i" .)(8 0ee>*ect to start /reeDi"g the lower #i"i"g area o/ Do"e 8 "orth i".)(6

0e e>*ect to use raise,ore #i"i"g i" this area a**l$i"g thegrou"d /reeDi"g e>*erie"ce we gai"ed i" Do"e . *a"el - This

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should sig"i7ca"tl$ i#*rove *roductio" ecie"cies co#*ared to,o>hole ,ori"g

I" .)(6 we also e>*ect to co#*lete the e>*a"sio" o/ the e>isti"g/reeDe *la"t to su**ort our *roductio" *la"s at McArthur River

Mill revitaliDatio"

I" .)(6 we e>*ect to;

• co#*lete i"stallatio" a"d co##issio"i"g o/ a "ewelectrical su,statio"

• co#*lete the structural steel wor% a"d eui*#e"t

i"stallatio" /or a "ew calci"er to ,e co##issio"ed i" .)(8

 Taili"gs ca*acit$

I" .)(6 we e>*ect to;

• co#*lete Batte"i"g o/ the eil#a"" taili"gs #a"age#e"t/acilit$ *itwalls a"d ,egi" co"structi"g a ,uttress to *reve"tsa"d sloughi"g whe" the water level is raised

• adva"ce the e"viro"#e"tal assess#e"t /or the Ke$ La%ee>te"sio" *roFect ,$ su,#itti"g the 7"al e"viro"#e"tali#*act state#e"t /or review ,$ the *rovi"cial a"d /ederalregulators a"d *ursue the reuired regulator$ a**rovals

1ee Ke$ La%e taili"gs ca*acit$ ris% /or additio"al i"/or#atio"

Lice"si"g

0e will ,e a**l$i"g /or a re"ewal o/ our McArthur River a"d Ke$La%e o*erati"g lice"ces i" .)(6 The Ca"adia" uclear 1a/et$Co##issio" has scheduled a o"e!da$ heari"g i" the third uarteras *art o/ the a**licatio" *rocess

E>*loratio"

I" .)(6 we *la" to co"ti"ue adva"ci"g the u"dergrou"de>*loratio" dri/ts to the southwest a"d "ortheast directio"sAdditio"al drilli"g is *la""ed u"dergrou"d to deli"eate Do"e Aa"d /ro# sur/ace to ide"ti/$ additio"al #i"eral resources i" thede*osit

Ma"agi"g 'ur Ris%s

roductio" at McArthur River?Ke$ La%e *oses #a"$ challe"ges;co"trol o/ grou"dwater wea% roc% /or#atio"s radiatio"*rotectio" water i"Bow #i"e area tra"sitio"i"g regulator$a**rovals a"d taili"gs ca*acit$ '*eratio"al e>*erie"ce gai"edsi"ce the start o/ *roductio" has resulted i" a sig"i7ca"treductio" i" ris%

0ater i"Bow ris%

 The greatest ris% is *roductio" i"terru*tio" /ro# water i"Bows A

.))6 water i"Bow resulted i" a three!#o"th sus*e"sio" o/

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*roductio" 0e also had a s#all water i"Bow i" .))+ that did "oti#*act *roductio"

 The co"seue"ces o/ a"other water i"Bow at McArthur Riverwould de*e"d o" its #ag"itude locatio" a"d ti#i"g ,ut couldi"clude a sig"i7ca"t i"terru*tio" or reductio" i" *roductio" a#aterial i"crease i" costs or a loss o/ #i"eral reserves

0e ta%e the /ollowi"g ste*s to reduce the ris% o/ i"Bows ,utthere is "o guara"tee that these will ,e success/ul;

• Nrou"d /reeDi"g; =e/ore #i"i"g we drill /reeDeholes a"d

/reeDe the grou"d to /or# a" i#*er#ea,le /reeDewall arou"dthe area ,ei"g #i"ed Nrou"d /reeDi"g reduces ,ut does "oteli#i"ate the ris% o/ water i"Bows

• Mi"e develo*#e"t; 0e *la" /or our #i"e develo*#e"t tota%e *lace awa$ /ro# %"ow" grou"dwater sources whe"ever

*ossi,le I" additio" we assess all *la""ed #i"e develo*#e"t/or relative ris% a"d a**l$ e>te"sive additio"al tech"ical a"do*erati"g co"trols /or all higher ris% develo*#e"t

• u#*i"g ca*acit$ a"d treat#e"t li#its; 'ur sta"dard /orthis *roFect is to secure *u#*i"g ca*acit$ o/ at least o"e a"d ahal/ ti#es the esti#ated #a>i#u# sustai"ed i"Bow 0e reviewour dewateri"g s$ste# a"d reuire#e"ts at least o"ce a $eara"d ,e/ore ,egi""i"g wor% o" a"$ "ew Do"e

0e ,elieve we have sucie"t *u#*i"g water treat#e"t a"dsur/ace storage ca*acit$ to ha"dle the esti#ated #a>i#u#sustai"ed i"Bow

 Tra"sitio" to "ew #i"i"g areasI" order to success/ull$ achieve the *la""ed *roductio" schedulewe #ust co"ti"ue to success/ull$ tra"sitio" i"to "ew #i"i"gareas which i"cludes #i"e develo*#e"t a"d i"vest#e"t i"critical su**ort i"/rastructure

 The Do"e 8 "orth tra"sitio" *la""ed i" late .)(8 carries a slightl$higher tra"sitio" ris% tha" other #i"i"g area tra"sitio"s due tothe site’s li#ited Be>i,ilit$ to oJset a short/all i" *roductio" dueto schedule dela$s

La,our relatio"s The curre"t collective agree#e"t with u"io"iDed e#*lo$ees atthe McArthur River a"d Ke$ La%e o*eratio"s e>*ires o" ece#,er6( .)(6 There is ris% to *roductio" i" .)(8 i/ we are u"a,le toreach a" agree#e"t a"d e#*lo$ees go o" stri%e

Ke$ La%e taili"gs ca*acit$ ris%

 Taili"gs /ro# *rocessi"g McArthur River ore are de*osited i" theeil#a"" taili"gs #a"age#e"t /acilit$ At curre"t *roductio"rates the /acilit$ will reach lice"sed ca*acit$ ,$ .)(+ Asig"i7ca"t dela$ i" o,tai"i"g or a /ailure to receive the

"ecessar$ regulator$ a**roval /or the e>*a"sio" o/ the /acilit$could i"terru*t or *reve"t the o*eratio" o/ McArthur River a"dKe$ La%e as *la""ed

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I" the *ast sloughi"g o/ #aterial /ro# the *itwalls has resulted i"loss o/ ca*acit$ Tech"ical studies show that sta,iliDi"g a"dreduci"g water levels i" the *it e"ha"ces the sta,ilit$ o/ the*itwalls a"d reduces the ris% o/ sloughi"g I" .))3 regulatorsa**roved our *la" /or the lo"g!ter# sta,iliDatio" o/ the eil#a""taili"gs #a"age#e"t /acilit$ *itwalls 0e are i#*le#e"ti"g the

*la" a"d e>*ect it will ,e co#*lete i" .)(8 0e are *roceedi"gwith the e"viro"#e"tal assess#e"t to su**ort a" a**licatio" /orregulator$ a**roval to de*osit taili"gs to a #uch higher level

 This would *rovide e"ough taili"gs ca*acit$ to #ill all the %"ow"McArthur River #i"eral reserves a"d resources should the$ ,eco"verted to reserves with additio"al ca*acit$ to toll #ill ore/ro# other regio"al de*osits

0e also #a"age the ris%s listed here

Uranium in Canada(Updated September 2015)

• Canada was the world's largest uranium producer for many years, accounting for

about 22% of world output, but in 2009 was overtaken by a!akhstan"

• #roduction comes mainly from the $crthur &iver mine in northern askatchewan

province, which is the largest in the world"

• #roduction is e(pected to increase significantly from 20)* as the new Cigar +ake

mine comes into full operation"

• ith known uranium resources of *-2,000 tonnes of U./ 1*,000 tU3, as well as

continuing e(ploration, Canada has a significant role in meeting future world demand"

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Canada is a country rich in uranium resources and a long history of exploration, mining and generation of

nuclear power (for coverage of nuclear power, see information page on Nuclear Power in Canada). To

2!, more uranium had "een mined in Canada than any other country # $2!, t%, &!' of world total.

xploration for uranium ore "egan in earnest in &$2 under direction of the government for military

purposes. * wartime "an on private prospecting was lifted in &$+, which led in the early &s to the

discovery of ma-or deposits near lliot a/e, 0ntario, and northern 1as/atchewan. y &, 23 mines and

& treatment plants were in operation, and Canada4s C533 million in uranium exports exceeded the value

for every other mineral.

 * second "urst of exploration in the &+s resulted in ma-or discoveries in the *tha"asca asin in northern

1as/atchewan, in Protero6oic unconformity deposits. 7ines at 8a""it a/e, Cluff a/e and 9ey a/e

started up in &+, &! and &!3, which up until 2 accounted for most of Canada4s uranium

production (&$,223 tonnes of %30! in &!). Cluff a/e, 9ey a/e and the original open pit at 8a""it a/e

have now "een mined out (underground mining continues at 8a""it a/e). 7ines that "egan operation -ust

a decade ago now contri"ute most of Canada4s production (see also *ppendix &: rief ;istory of %ranium

7ining in Canada).

Canada<s Non=8esident 0wnership Policy (N80P) for uranium pro-ects had, since &!+, restricted foreign

ownership of uranium mines to a maximum of $'. The ownership structures then in place were

>grandfathered? from the new policy and were a"le to continue. The policy provided for exemptions in

situations where Canadian partners cannot "e found, and applied to uranium production only. %ranium

exploration was not su"-ect to N80P, and there were several exploration=level uranium assets in Canada

with ma-or foreign ownership which cannot proceed to mining unless the N80P was li"eralised. *s part of

the Canada=% free trade agreement negotiated in 0cto"er 2&3, the foreign ownership restrictions would

"e relaxed. @oreign investment in Canada generally remains su"-ect to the Anvestment Canada *ct.

Current production

Canada<s uranium production is ta"ulated "elow, and while relatively constant over the last few years, its

share of world production has dropped from a"out 2' to &'.

The main uranium producers are Cameco and *reva 8esources Canada (formerly Cogema 8esources),

part of @rance4s *reva Broup. Cameco was formed in the &!! merger of 1as/atchewan 7ining

evelopment Corporation and the government=owned ldorado Nuclear td. The company issued its first

pu"lic shares in && and was fully privati6ed in 22.

An the early &s, the 1as/atchewan government had considered phasing out uranium mining in the

province. This policy was later reversed after a -oint @ederal=1as/atchewan study panel on health, safety,

environment and socio=economic impact found that the -o"s provided "y the industry would "e hard to

replace and that the environmental impact of mining could "e minimi6ed. Today, the provincial government

actively supports uranium mining, and all new 1as/atchewan uranium mines have international A10 &$&

environmental certification.

nnual uranium production 1tonnes U./3a

 200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

McArthur 6877 8491 8491 8492 8492 7528 8654 9029 9064 8868 9135 8675

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 200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

River

Cigar

Lake   - - - - - - - - - - 0 156

McCle

an

Lake

2734

2724

2490

  814 867  147

61637

  785 0 0 0 51

Rabbi

t Lake

2690

2462

2732

2326

1821

1613

1706

1726

1721

1744

1872

1889

Cluff

Lake  32 - - - - - - -

!tal  123

3313676

13713

11632

11180

10617

11997

11540

10785

10612

11007

10771

cf"

#!rl$

41998

47430

49052

46499

48680

51611

59772

63285

63085

68805

70015

66297

omestic production in tonnes of uranium (as opposed to % 30!) is given in Note a.

Canadian uranium e(ports 1tonnes uranium3"

  2005 2006 2007 2008 2009 2010

Cana$ian %r!$ucti!n   11628 9863 9477 9000 10173 9786

Le&&' $!(e&tic u&e   1607 1620 1661* 1670* 1845* 1675*

Cana$ian e)%!rt   10021 8243 7816 7330 8328 8111$crthur &iver 4 ey +ake

The 7c*rthur 8iver uranium mine is the world4s largest in terms of annual production. *lso it has

enormous reserves (a"out &+, tonnes %30!, &$!,3 t%) of high grade ore (&D.' %30! after

allowance for dilution) located D metres underground. 8emote control raise "oring methods are used to

mine the ore, which is then truc/ed ! /m south to "e milled at 9ey a/e, site of the closed mine that once

produced &' of the world4s uranium.

 *t the 9ey a/e mill, which has "een modified for the 7c*rthur 8iver ore, the ore is "lended with 4specialwaste roc/4 and processed to produce %30!. Tailings are deposited in a mined=out pit. The licensed

capacity of the 9ey a/e mill is "asically !, tEyr % 30!, "ut after Cameco applied for an increase to

&, tEyr permission was given for mill production up to ,2 tEyr to catch up earlier year shortfalls. An

Fuly 2&$ CN1C approved an increase in mill production to &&,3D tEyr %30!. @rom 2&! it pro-ects &,

tEyr %30! su"-ect to regulatory approval. Cameco Guotes c52El" production cost (mid=2&3).

There has "een no production from the 9ey a/e mine since 22, "ut development of the 6one $ north

ore"ody may return it to production.

Cameco is the ma-ority owner and operator of 7c*rthur 8iver mine (D.!') as well as the 9ey a/e 7ill

(*reva is a 3.2' and &D.+' partner, respectively). *reva earlier applied for a licence to process some

7c*rthur river ore at 7cClean a/e.

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0ther deposits close to 7c*rthur 8iver are prospective.$cClean +ake

 *fter starting operation in mid=&, 7cClean a/e produced a"out 2 tEyr of %30! from 2.$' ore up

until 2, although production was well down in 2D through to 2& due to lower ore grades. The mine

was relicensed at 3D$ tEyr. 0perations have comprised three open pits, with an underground mine from1ue pit planned for the future. 7cClean a/e also has high=Guality new plant and infrastructure. At uses

the first mined=out pit for tailings disposal # the F tailings management facility.

The F mill has "een upgraded and expanded to , tonnes % 30! ($DD t%) per year to accommodate

the ore from the Cigar a/e mine (see section on Cigar a/e"elow). %nder arrangements concluded in

2&& it will treat all the Cigar a/e ore. *reva says that the mill is the most technologically=advanced in the

world, "eing a"le to treat ore from less than &' to 3' %, and in fact is the only facility capa"le of

processing high=grade uranium ore without diluting it. CN1C gave regulatory approval at the end of 2&2

to operate the mill with high=grade ore from 7c*rthur 8iver and increase production from 3D$ to tEyr 

of concentrate. *reva recommissioned the mill in 2&3, and first deliveries from Cigar a/e arrived in7arch 2&$. *reva is increasing the mill capacity to &, tonnes % 30! (2$ t%) per year from 2&D.

fforts to increase production to fill the gap left "y the delay in Cigar a/e production had limited success,

and development of the near"y small Cari"ou deposit awaits improved economic conditions. 7ining of 1ue

deposit 2=! and 1ue in 2! over 2!=& provided ore for the mill until mid=2& when it was

shut down and put onto care and maintenance until it was upgraded to treat the Cigar a/e ore. 1ome

&&, tonnes of low=grade ore remains stoc/piled to "e treated when mar/ets improve. 8eserves are

small. An 2&$ a little production was reported.

7cClean a/e is ma-ority=owned (+') and operated "y *reva 8esources. enison 7ines (22.') and

the Fapanese company 0verseas %ranium 8esources evelopment (0%8 Canada, +.') are *reva4s

 -oint venture partners.&abbit +ake

%ranium was discovered at 8a""it a/e in &D! and it was "rought into production "y Cameco in &+.

7ost of the deposit has "een mined out, "ut reserves still exist at agle Point, where around &+ tEyr of

%30! from an ore grade of 2.&' have "een mined underground in recent years. Production is expected to

diminish in the next few years, though to 2&$ Cameco considered a prospective 8a""it a/e extension.Cigar +ake

7ining commenced at Cigar a/e in 2&$. The proven and pro"a"le ore reserves at Cigar a/e are

extremely large and very high grade. * $!=metre=deep underground mine was developed in very poor

ground conditions # the ore"ody is actually in the soft *tha"asca sandstone. ;ence it uses ground

free6ing and remotely=controlled high pressure water -ets at this level to excavate the ore. 9nown

resources are &3, tonnes %30! at a"out &+' average grade, and with other resources the mine is

expected to have a life of at least 3 years. Production is ramping up to !,2 tEyr % 30! (+, t%Eyr) over

four years from late 2&$. An 2& it is expected to "e over one=third of that figure.

0re slurry from remote mining is truc/ed for toll treatment at *reva4s expanded 7cClean a/e mill, + /m

northeast, with average feed grade of 2.+' %30!.H

H Prior to 0cto"er 2&& it was envisaged that all of the leaching would "e done at 7cClean a/e and a"out

half of the uranium solution would go onto Cameco4s 8a""it a/e mill + /m east for final production of

uranium oxide concentrate. The revised arrangement will reduce costs "y 2'.

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Construction on the pro-ect "egan in 2 with production originally scheduled to start in 2&&. ;owever,

underground floods in 2D and 2! set the start date "ac/ until 2&$ and increased the overall cost of

the pro-ect from C5DD million to a"out C52.D "illion. There are extra reGuirements for pumping capacity #

now 2 m3Eh, and ground refrigeration. An @e"ruary 2&, dewatering was complete and remediation

remediation proceeded. The $2 m level was "ac/filled and new wor/ings developed in more competent

roc/ at $! m level. The first -et "oring commenced in ecem"er 2&3. The estimated average cash

operating cost for Cigar a/e increased from 5&$.$ per pound % 30! in 2+ to 523.&$, "ut revised milling

plans have reduced this estimate to 5&!.D per pound. The first ore slurry was sent to the 7cClean a/e

mill in 7arch 2&$, and treatment "egan in 0cto"er 2&$.

1ome &.3 million cu"ic metres of waste roc/ from Cigar a/e is "eing emplaced under water in the 1ue C

pit at 7cClean a/e, to prevent acid generation from it. Tailings will remain at 7cClean a/e.

 * Cigar a/e AA deposit near"y is "eing investigated.

Cameco, which has .2' ownership, is managing the -oint venture, with *reva holding 3+.&', Ademitsu

+.!+' and TPC0 8esources '.

&esources

Canadian uranium resourcesc

Mine *r!vince+%erat!

r

t!nne

& ,

t!nne

&

,3+8

Average

!re

gra$e

,3+8$

Categ!r

-

Rabbit

Lake

  Sask Cameco 9800 11,600 0.76% proven & probabe

reserves

McClean

Lake  Sask !reva

337 397 0.42% proven & probabereserves

5220 6156 4.81%

meas"re#$

n#cae#reso"rces

McArthur

River  Sask Cameco

77,780 91,700 23.81%   provenreserves

70,800 83,500 12.30%  probabe

reserves

4550 5360 6.35%

meas"re#$

n#cae#reso"rces

21,700 25,600 7.86%   n'erre#reso"rces

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Mine *r!vince+%erat!

r

t!nne

& ,

t!nne

&

,3+8

Average

!re

gra$e

,3+8$

Categ!r

-

Cigar Lake   Sask Cameco 83,560 98,540 18.30% proven & probabereserves

  850 1000 2.27%

meas"re#$

n#cae#reso"rces

  38,300 44,950 12.01%  n'erre#

reso"rces

Mi$.e&t   Sask !reva 2227 2626 0.57%  n#cae#

reso"rces

/a.n Lake   Sask Cameco 6885 8120 4.42%  n#cae#

reso"rces

Millenniu

(  Sask Cameco 19,590 23,100 4.55%

  n#cae#reso"rces

  6,400 7,575 2.54%  n'erre#

reso"rces

hea Creek    Sask   !reva-

()  26,100 30,770 1.48%

  n#cae#reso"rces

  10,870 12,800 1.01%  n'erre#

reso"rces

*h!eni)   Sask +enson 27,000 31,900 19.13%  n#cae#

reso"rces

R!ughri$er   Sask    aor/o   22,300 26,300   2.0-11.6%

n#cae#

&n'erre#reso"rces

a(arack    Sask Cameco 6900 8100 4.42%  n#cae#

reso"rces

*atter&!n

Lake !uth  Sask sson

30,600 36,100 1.58%  n#cae#

reso"rces

9960 11,700 1.30%  n'erre#

reso"rces

iggavik    "nav" !reva 48,953 57,730 0.554% n#cae#

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Mine *r!vince+%erat!

r

t!nne

& ,

t!nne

&

,3+8

Average

!re

gra$e

,3+8$

Categ!r

-

reso"rces

Michelin   abra#or   !"roraaa#n

  32,430 38,240 0.10%

meas"re#$

n#cae#reso"rces

  8820 10,400 0.12%  n'erre#

reso"rces

acue&Lake

  abra#or    !"roraaa#n

  4000 4700 0.08%

meas"re#

$n#cae#reso"rces

Mat!u&h   "ebec Sraeco 4740* 5590 0.954%  n#cae#

reso"rces

  6320 7450 0.442%  n'erre#reso"rces

Cameco4s 7c*rthur 8iver reserve figures include allowance for 2' dilution from "ac/fill and minerali6ed

waste mined, so grade is 2' less than in situ.#roposed mines$idwest

Andicated resources at 7idwest were &, tonnes of %30! with an average ore grade of .', "ut the

figure was radically downgraded in *reva4s 2&3 report. (Pro"a"le reserves in this comprise &!,!+ t at

.$+'.) * further prospect 3 /m to the north, 7idwest *, had 2D t %30! indicated at .+'. The original

plans were for an underground mine, utilising ground free6ing and water -et "oring, "ut current plans call

for a large open pit mine that will go to a depth of 2& metres and involve draining an arm of 1outh

7c7ahon a/e. The ore will "e shipped & /m to the 7cClean a/e mill. * comprehensive environmental

assessment for the pro-ect "egan in 2D and federal environmental approval for open pit mining was

received in *ugust 2&2. 0ther potential mining methods are "eing evaluated, including conventional

underground and surface -et "ore drilling, using the 1*8 (>1urface *ccess orehole 8esource

xtraction?) mining technology.

Production was originally scheduled to "egin in 2&&, "ut in 2! the starting date was postponed due

several factors, including a ' rise in the initial estimated capital costs of 5$3 million. The 7idwest

pro-ect is "eing managed "y *reva 8esources, which owns D.&D'. enison 7ines has a 2.&+' sta/e

and 0%8 Canada .D+'.5awn +ake

 *lthough its development is much further off, a deposit of more than ! tonnes %30! of indicated

resources is prospective at awn a/e in northern 1as/atchewan. Brades of up to 3' ore at depths of

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2! metres have also "een reported near"y. Cameco has +.$', *reva 23.&' and Fapan=Canada

%ranium su"sidiary FC% (Canada) xploration &.$'.

Cameco<s Tamarac/ deposit associated with awn a/e has an indicated resource of !& tonnes %30! at

$.$2', reGuiring underground mining.

$illenniumThe 7illennium deposit (now +' owned "y Cameco, 3' FC%) has indicated resources of 23,&

tonnes of $.' grade %30! and ++ tonnes of 2.&' grade inferred resources, in "asement roc/, "elow

the soft sandstone. At is "etween 7c*rthur 8iver and 9ey a/e, and ore would "e milled at 9ey a/e. *

feasi"ility study on the pro-ect led to Cameco see/ing approval to mine it at a"out 2 t%Eyr. The

environmental assessment was approved at the end of 2&3. %nderground development was envisaged

over 2&3=&+, "ut in mid=2&3 Cameco said it was not a primary pro-ect, and in 7ay 2&$ it halted

developments pending improvement in the uranium prices. An 2&2 Cameco paid C5& million for *reva4s

2!' share.iggavik

An the Nunavut Territory, some /m north of 7anito"a, a -oint venture headed "y *reva is conducting a

feasi"ility study on the 9iggavi/ uranium deposit in the Thelon asin, with $!, t% indicated resources at

.$+'% grade. The indigenous Anuit organi6ation, Nunavut Tunngavic, reversed its previous "an on

uranium exploration and mining in 2D, "ut the pro-ect has faced opposition from other groups. An 7arch

2&, the Nunavut government ruled that the proposal would "e reviewed "y a territorial regulator rather

than undergo a federal environmental assessment.

An 0cto"er 2&$ *reva 8esources su"mitted a final environmental impact statement to the Nunavut Ampact

8eview oard. The pro-ect involves the development of three open pit mines at 9iggavi/ and "oth an open

pit mine and an underground mine at 1issons. *reva and its partners, FC% (Canada) xploration (33.' in

9iggavi/) and aewoo, hope for a start=up of the mine and mill complex when the mar/et improves, to

produce a"out 3 t%Eyr over &$ years.e An 7ay 2& the Nunavut Ampact 8eview oard declined to

approve the pro-ect due indefinite start date, "ut invited resu"mission when *reva could provide a more

definite timescale. *reva has protested to the federal minister responsi"le, saying that the process has

"een lengthy and thorough and the lac/ of firm start date should not prevent approval.$ichelin

The 7ichelin deposit is in astern Canada4s Central 7ineral elt, in a"rador. At is "eing drilled in a

C52&million programme "y  *urora nergy 8esources (su"sidiary of  Paladin nergy, acGuired in

2&&). 7ichelin and near"y 6ac7ues +ake are the main deposits, with minor amounts in 8ain"ow

and three others. *ll are metasomatite=type minerali6ation except for 7oran a/e which is iron=ore=

copper=gold (A0CB) with su"economic uranium. 7ichelin has rare earths. An 2, a positive

economic assessment of the pro-ect proposed investment of %15 !$ million to set up mine and mill,

with production ramping up to 3 tEyr. ;owever, in 2& the a"rador pro-ects were suspended

due to low uranium prices.

The 7ichelin deposit has measured resources of &,$ tonnes %30! (&3,&3 t%), indicated

resources of 22,+ tonnes %30! (&,2 t%) and inferred resources of &,$ tonnes %30! (!!2 t%)

"ased on NA $3=&& figures pu"lished in mid=2&$. *"out $' of the measured and indicated

resource in 7ichelin is amena"le to open cut mining. 7easured and indicated resources in five other

associated deposits, mostly FacGues a/e, are + tonnes %30!.

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 * Nunatsiavut government three=year moratorium had "een in place until 7arch 2&&, affecting 7ichelin,

and expiry of this coincided with completion of a land use planning assessment underta/en -ointly "y the

Nunatsiavut and Newfoundland=a"rador governments. *fter esta"lishing a lands administration system,

developing environmental protection legislation, and following a review and pu"lic consultation, in

ecem"er 2&& the Nunatsiavut *ssem"ly voted unanimously to lift a moratorium on the development of

uranium deposits on a"rador Anuit lands, and this was legislated in 7arch 2&2. @ive of *urora4s six

uranium deposits in the Central 7ineral elt fall within the a"rador Anuit lands. An Fune 2& the Canadian

government approved Paladin<s ownership of the pro-ect, exempting it from the Non=8esident 0wnership

Policy (N80P) applying generally, allowing it to proceed to production.

8(ploration prospects

An addition to mining operations planned for the near future, active exploration involving more than $

companies continues in many parts of Canada. Ihile exploration has concentrated on northern

1as/atchewan, new prospects extend to a"rador and Nova 1cotia in the *tlantic provinces, Jue"ec

province, Nunavut Territory in the far north, and 0ntario4s lliott a/e area. 8esource figures Guoted are

generally NA $3=&& compliant. Cameco alone had an exploration "udget of 5D million in 2& and

expected to spend 5 million in 2&&.

The 2 A** Red Book  says that in 2+=! Kuranium exploration remained focused on areas

favoura"le for the occurrence of deposits associated with Protero6oic unconformities in the *tha"asca

asin of 1as/atchewan, and to a lesser extent, similar geologic settings in the Thelon and ;orn"y ay

"asins of Nunavut and the Northwest Territories.K

ayswater %ranium Corp. has announced a very small deposit at *nna a/e near"y. 7ega %ranium is

drilling at ruce 8iver and *illi/ ast in the region.

An Nunavut, 9ivalliG nergy (part of *urora Broup) has identified &,D! t %30! (&D,D t%) inferred

resources grading .D' %30! with .2' cut=off in its ac Trend deposit at its *ngila/ pro-ect. This

includes &2,+3 tonnes in ac CinGuante deposit and D, tonnes in F$E8ay, with good intersections in

ipole, 2 /m southwest of it, still unGuantified. *lso in Nunavut, at *mer a/e, %ranium North 8esources

has reported inferred resources of t %30!.

An uranium=rich northern 1as/atchewan, exploration pro-ects are now well=advanced at several locations.

The hea Creek pro-ect (&' owned "y *reva, $' %L Corp. which is 2&.3' owned "y Cameco) in the

western *tha"asca asin &3 /m south of Cluff a/e has reported high grade ore. An *pril 2&3, %L

announced indicated resources of 3,++ t %30! grading &.$!' and inferred resources of &2,! tonnes

grading &.&', as of Fanuary, with cut=off .3'. The deposit remains open. Production at a"out 2

t%Eyr is envisaged. xploration expenditure to the end of 2&2 was C5$. million.

%L is also exploring the ;orseshoe and 8aven deposits at idden :ay in the eastern *tha"asca "asin

( /m from 8a""it a/e and &2 /m from 7cClean a/e). The ;orseshoe deposit has indicated resources

of &,$ tonnes of %30! at a grade of .2' at & to $ m depth. 8aven has indicated resources of

tonnes at .&&', with cut=off .', at & to 3 m deep. These amounts increase slightly with

.2' cut=off. * Preliminary Technical *ssessment of the deposits in 2&& was positive and recommends a

preliminary feasi"ility study which also includes the smaller "ut shallow Iest ear deposit (+2 t at

.&'). The 2&& report assumes ;orseshoe access "y decline and 8aven "y open cut, with toll milling

and tailings management at 8a""it a/e mill over seven years.

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enison4s prime focus is the heeler &iver  pro-ect halfway "etween 9ey a/e and 7c*rthur 8iver and

immediately east of 7illennium. At is a long stri/e from 7c*rthur 8iver and geologically very similar, with

some high=grade uranium mineralisation. An Fune 2&$ the NA $3=&& compliant indicated resources for

the #hoeni( deposits were upgraded to 2+, t% at an average grade of &D.22'%, for underground

mining, with cut=off grade .D!'%. The ;ryphon deposit discovered in 2&$ is promising. Iheeler 8iver

is &2 /m from 7cClean a/e, considered close enough to use the mill there. enison has a D' interest,

Cameco 3' and FC% (Canada) &'.

Iith a consortium led "y 9orea lectric Power Corp (9epco), enison (D') is exploring the aterbury

+ake area near 7idwest. An 1eptem"er 2&3 it announced an NA $3=&& indicated resources of $ t%

grading &.+'% for the 6<=one at Iater"ury a/e. enison also is investigating its Fasper a/e pro-ect, $

/m east of Cigar a/e.

@ission %ranium Corp is exploring #atterson +ake outh on the southwest margin of the *tha"asca

asin, /m south of Cluff a/e. At announced in Fanuary 2& that the >riple & deposit, part of this

property, had 3,D t% of indicated resources at &.!' %30!, and &, t% inferred resources at &.3'

(NA $3=&& compliant). The former includes a high=grade 6one with &+, t% at &.$'%. 7ost of the

deposit is less than 2 m deep. * preliminary economic assessment in 1eptem"er 2& envisaged a

hy"rid open=pit and underground operation producing an average 2++ t% per year over the &$=year life of

the mine, with 2,!& t% recovered in the first six years of operation. *verage operating costs are

estimated at 5&$.2 per pound %30! over the life of mine. * new Patterson a/e 1outh mill could

potentially serve the Iestern *tha"asca "asin.

The company was spun out of @ission nergy Corp after enison "ought it in 2&3, and it then too/ full

ownership of the Patterson a/e prospects, paying *lpha 7inerals C5 &! million for its half share. An Fuly

2& it announced a merger with enison 7ines, to "ecome enison nergy Corp, "ut this was

su"seGuently a"orted after failure to secure agreement from @ission shareholders. @ission 3. has the

Clearwater Iest pro-ect ad-acent to Patterson a/e 1outh, and Canex nergy is farming into this.

The &oughrider  prospect 2$ /m from 8a""it a/e in *tha"asca asin at the time of ta/eover of ;athor

xploration had inferred resources of &3,+ t %30! at &&.!', with .$' cut=off in the astern 6one, for

underground mining, and in the Iest 6one indicated resources of +! t % 30! at &.!' and $! t

inferred resources at &&.3' with .' cut=off, for open pit mining. The ast Mone is a series of

moderately=dipping stac/ed, parallel lenses (greater than .' %30!). 1ince then further drilling has

extended the resource. * preliminary economic assessment for ;athor suggested low production costs

over an &&=year mine life producing & t% per year. ;athor was su"-ect to a ta/eover "id from Cameco

"ut agreed to another from 8io Tinto, valuing the company at C5D$ million.

NextBen nergy is drilling the 8oo/ & property in the *tha"asca "asin, including *rrow and ow

prospects, the former with some high=grade intersections.

An Nova 1cotia, exploration has "een proposed at 7illet roo/, "ut it awaits a review of a &! moratorium

on uranium mining in the province.

An Jue"ec, uranium exploration is underway at several locations with a total of more than $, tonnes of 

indicated or inferred deposits. ;owever, in *pril 2&3 the Jue"ec government announced that no permits

for uranium exploration or mining would "e issued in Jue"ec until an independent study into its

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environmental impact had "een completed. An addition to environmental groups, the Brand Council of the

Crees is opposed to any uranium mining in Jue"ec. * government decision was expected in mid=2&.

 * D2D=page report "y Ju"ec4s Bureau d'audiences publiques sur l'environnement  (*P) was pu"lished

"y the province4s minister for sustaina"le development, environment and climate change in Fuly 2&. At

followed one year4s wor/ "y a commission set up "y *P in 7ay 2&$ to study the environmental and

social impacts of uranium exploration and mining and conduct pu"lic hearings. The report expresses

concern a"out managing mining wastes. Ihile concluding that it would "e KprematureK to authori6e the

development of a uranium industry now, the *P commission urged the Ju"ec government not to

preclude uranium mining on a temporary or permanent "asis "ecause of potential legal and economic

impacts. The government would need to ensure social accepta"ility through an extensive information

programme and cooperation and consensus="uilding strategyO overcome Ktechnological uncertainties and

current gaps in scientific /nowledgeKO and develop a legal framewor/ to allow it to control uranium mining

operations in the province. The head of CN1C then wrote to Jue"ec<s minister Guestioning the report<s

recommendations, saying that they lac/ed >scientific "asis and rigour? and hence were misleading for all

Canadians. KTo suggest that uranium mining is unsafe is to imply that the CN1C and the government of

1as/atchewan have "een irresponsi"le in their approval and oversight of the uranium mines of Canada for 

the last 3 years.K KAt is clear that the *P4s recommendations not to proceed is "ased on the perceived

lac/ of social acceptance and not on proven science.K

An the 0tish 7ountains of central Jue"ec 1trateco 8esources Anc. had "een granted a licence "y CN1C to

conduct underground exploration on the $atoush deposit from 2&$, and commenced environmental

studies for the pro-ect. 7atoush has indicated resources of D t% at .!&'% and inferred resources of

D32 t% at .3+'%, and the company pro-ected mine production of & t%Eyr over seven years from

2&D. 1trateco commenced legal action against the provincial government following the *pril 2&3

moratorium, and announced an impairment charge of 5!+ million in its accounts due to its ina"ility to

proceed with the pro-ect<s underground exploration programme, the suspension of exploration and

evaluation planned for 2&$, and the uncertainty created for Jue"ec<s uranium industry.

An Novem"er 2&3 the Jue"ec government refused to authori6e the 7atoush underground exploration

phase. 1trateco said it had invested over 5&23 million in the pro-ect to date. An ecem"er 1trateco

launched a C5 & million claim against the provincial government for the loss of its investments. KAt should

"e recalled that on the "asis of extremely detailed, rigorous environmental and social impact studies,

1trateco received approvals for the underground exploration phase of the 7atoush pro-ect from the

Canadian Nuclear 1afety Commission, the federal 7inister of the nvironment and the federal

administrator of the Fames ay and Northern Jue"ec *greement, as well as a positive recommendation

from the provincial evaluation committee,K the company said.

An Novem"er 2&$ Toro nergy from *ustralia acGuired a &.!' interest in 1trateco as part of a financing

pac/age. An Fune 2& 1trateco filed for "an/ruptcy protection in the 1uperior Court of Jue"ec under the

Companies Creditors *rrangements *ct.

 *"itex 8esourcesE * 8esources is exploring its 8psilon pro-ect in the 0tish 7ountains of Jue"ec.

 *6imut xploration has committed C5$2 million to uranium exploration, mainly for the atavic pro-ect in

Jue"ec4s northern Nunavi/ region and other prospects in the %ngava ay region further north. %racan8esources reports 3& tonnes %30! of indicated resources and &D, tonnes of inferred resources in the

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ou"le 1 6one at its North 1hore prospect in eastern Jue"ec. *reva is esta"lishing a -oint venture with

Iaseco 8esources to explore the a"rador Trough pro-ect.

An Northwest Territories, Cameco has the prospective :oomerang pro-ect in the southwest Thelon asin.

and access issues hinder active exploration at present.

The lliot a/e area of 0ntario, which was the centre of Canada4s early uranium mining, is again attracting

exploration. An 1eptem"er 2!, Pele 7ountain 8esourcescommenced the permitting process for its 8co

&idge underground uranium and rare earth oxides mine and processing facility in the region. co 8idge

contains indicated resources of &,2 tonnes %30! and inferred resources of &+,& tonnes %30! along

with significant 80 resources. The 1erpent 8iver=Pecors deposit is a few /ilometres east.

An ritish Colum"ia, the :li!!ard prospect south of 9elowna, which was first explored in the &!s, was

revived "y oss Power. The company challenged a provincial government moratorium on exploration and

mining imposed in *pril 2!, and the ritish Colum"ia government settled "y paying the company 53.3D

million in 2&$.

%ranium exploration in Canada was intensive through to 2&2. Cameco spent C5+ million on exploration

in 2! (plus a further 532 million in three strategic partnerships with -unior explorers) and planned C5=

million for 2, mainly in 1as/atchewan, Nunavut and the Northwest Territories. An late 2+, Cameco

announced an agreement with the 8ussian company %ranium ;olding *87M (F1C *tomredmet6oloto) to

create a -oint venture to explore and mine uranium in northwest 8ussia, 1as/atchewan and Nunavut.&ecent transfers to foreign ownership

 *s well as foreign eGuity in the companies with uranium mines, in recent years there has "een increased

interest in exploration companies. 1ome companies active in Canada are foreign="ased, eg *reva. The

following ta"le outlines some recent foreign investment in Canadian="ased or esta"lished explorers, or

particular pro-ects, which have credi"le resources.

C!(%an- Main $e%!&it

+ver&ea&

inve&t!r an$

&hare

alue !f

&hare#hen

,raniu( +ne  n aaksan,

aso (S!  !/:;, 51.4%

  C<1425mon

+ec2010

ath!r

)%l!rati!n  /o"=r#er 

  /o >no,100%

C<654mon

 ov2011

 Aur!ranerg-

  :cen   aa#n )ner=?100%

  2011

?urther @nformation

ppendi(

 *ppendix &: rief ;istory of %ranium 7ining in Canada

&elated information pages

Nuclear Power in Canada

Aotes

a. ata: company sources.

nnual uranium production 1tonnes U3

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 20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

201

1

20

12

20

13

201

4

McAr

thur

River

71

99

58

31

72

00

72

00

72

00

71

99

63

83

73

39

76

56

76

86

75

20

77

44

735

6

Cigar

Lake  - - - - - - - - - - - 0 132

McCl

ean

Lake

2342

2318

2310

2112

690

734

1249

1388

666

  0 0 0 43

Rabbi

t

Lake

440

2281

2087

2316

1972

1544

1368

1447

1464

1459

1479

1587

1602

Cluff

Lake

1626

  27 - - - - - - -

!tal  116

07

10458

11597

11628

9863

9477

9000

10173

9786

9145

8999

9331

9134

cf"

#!rl

$

3606

3

3561

3

4021

9

4159

5

3942

9

4127

9

4376

4

5068

4

5366

3

5349

4

5834

4

5937

0

56217

ac/Q

". ata: company sources. Ihere an asteris/ (H) is shown, the figures are from the Iorld Nuclear

 *ssociation 7ar/et 8eport. ac/Q

c. ata: company sources. An Canadian figures resources do not include reserves and are reported in

accordance with Canadian standard NA=$3=&&. ac/Q

d. *verage ore grades given as percentage of %30! in the ore. ac/Q

e. The two parts of the pro-ect (9iggavi/ and 1issons) are operated "y *reva 8esources Canada Anc.O

1issons was held ' "y *reva in -oint venture with FC% (Canada) xploration Co. td. ($!') and

aewoo Corporation (2')O and 9iggavi/ itself was held ' "y *reva and &' "y aewoo. ;owever, in

2&$ 7itsu"ishi showed 33.' of 9iggavi/ "eing held "y FC%, an eGual three=way FR among 7itsu"ishi

Corp, Atochu and 0%8. ac/Q

;eneral sources

%ranium we"page on Natural 8esources Canada we"site (www.nrcan.gc.ca)

Cameco annual reports

%ranium in 1as/atchewan series of fact sheets availa"le on Cameco4s we"site (www.cameco.com)

 *reva 8esources we"site (www.cri.ca)

Canadian Nuclear *ssociation we"site (www.cna.ca)

Red Books:

Uranium 2007 Resources! "roduction and #emand , 0C Nuclear nergy *gency and Anternational

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 *tomic nergy *gency, 0C Pu"lishing, Fune 2! (A1N: +!2D$$+DD2)

Uranium 200$ Resources! "roduction and #emand , 0C Nuclear nergy *gency and Anternational

 *tomic nergy *gency, 0C Pu"lishing, Fuly 2& (A1N: +!2D$$++)

Ballery S e1hop S 8euse of IN* content S Contact us

2& Iorld Nuclear *ssociation, registered in ngland and Iales, num"er &2&+$&.8egistered office: Tower ;ouse, &