| Mon 4 Jun 2007, 14:45 | | SXR - Uranium One - News Release - Definitive agre |
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SXR
SXR
SXR - Uranium One - News Release - Definitive agreement to acquire Energy
Metals Corporation
sxr Uranium One Inc.
Share code: SXR
ISIN: CA87112P1062
390 Bay Street, Suite 1610
Toronto, Ontario M5H 2Y2
Energy Metals Corporation
Suite 1238, 200 Granville Street
Vancouver, British Columbia V6C 1S4
Trading Symbols:
SXR - Toronto Stock Exchange, JSE Limited (Johannesburg Stock Exchange)
EMC - Toronto Stock Exchange; EMU - NYSE Arca
NEWS RELEASE
June 4, 2007
Uranium One Announces Definitive Agreement to Acquire Energy Metals Corporation
Toronto, Ontario; Vancouver, British Columbia; Johannesburg, South Africa - sxr
Uranium One Inc. ("Uranium One") and Energy Metals Corporation ("EMC") are
pleased to announce that the two companies have signed a definitive agreement
whereby Uranium One will acquire all of the shares of EMC. The acquisition
will dramatically enhance Uranium One`s asset portfolio in the United States
and solidify the new Uranium One`s ability to build a leading U.S. uranium
producer.
Under the terms of the agreement, EMC shareholders will receive 1.15 common
shares of Uranium One for each issued share of EMC, representing a value of
C$19.12 per share based upon the closing price of Uranium One on the TSX on
June 1, 2007. This represents a 28% premium to the 20 day volume weighted
average trading prices of Uranium One`s and EMC`s shares on the TSX for the
period ending May 17, 2007, the day before EMC announced that it had entered
into exclusive negotiations with respect to a potential sale of the company.
The acquisition of EMC is consistent with Uranium One`s value-accretive
external growth strategy and will consolidate Uranium One`s position in the
United States. On a pro forma basis, Uranium One will have:
* a fully diluted market capitalization of US$7.8 billion and improved
liquidity
* a strong balance sheet with a combined cash balance of US$678 million
(includes proceeds from in the money warrants and options)
* a balanced and geographically diversified portfolio of reserves and
resources
* the second largest uranium reserve and resource base in the world in terms
of publicly traded, pure play uranium companies
* two producing mines and a pipeline of nine projects with the potential to
deliver year-on-year growth in production out to 2013
* a low cost production base with 70% of production from in situ recovery
(ISR)
* a combined uranium sales contract book that is unhedged and provides
investors with significant exposure to any further uranium price increases
* the most comprehensive ISR and conventional mining team with the capacity
to deliver on the combined company`s production growth profile
Commenting on the proposed acquisition, Neal Froneman, Uranium One President
and CEO said:
"With our solid position in Kazakhstan and South Africa, the acquisition of EMC
fits in perfectly with our stated strategy of value-accretive external growth
and our focus on growth in the United States. The combination of Uranium One
and EMC will create a powerhouse in the United States uranium sector with the
potential to become the domestic supplier of choice for U.S. utilities. Our
combined portfolio of assets will be geographically diversified, with assets in
the world`s top five uranium jurisdictions. The existing conventional mining
and ISR expertise within Uranium One, coupled with the excellent technical team
that EMC has built over the past several years will result in one of the
industry`s leading technical teams, with the necessary expertise to deliver on
development and growth opportunities in the United States."
Paul Matysek, President and CEO of EMC added:
"The transaction provides our shareholders immediate exposure to uranium
production and cash flow, while at the same time creating new avenues for
growth. The addition of Uranium One`s technical team will augment our elite
ISR staff and provide us with the ability to develop our U.S. conventional
uranium assets, which are incremental to our current growth strategy. The new
Uranium One`s significant resource base, strong balance sheet and proven
management team will ensure that the company becomes one of the world`s leading
diversified uranium producers. My colleagues and I at EMC look forward to
continuing to play an important role in what I believe to be the fastest
growing and most dynamic uranium company in the world."
Summary of the Transaction
The business combination of Uranium One and EMC is expected to be completed by
way of a statutory plan of arrangement under the Business Corporations Act
(British Columbia). After completion of the transaction, it is expected that
current Uranium One shareholders will own approximately 79% of the combined
company and current EMC shareholders will own approximately 21%.
The combination has been unanimously approved by the Boards of Directors of
each of Uranium One and EMC. A notice of meeting, management information
circular and related materials will be mailed to EMC shareholders and option
holders as soon as practicable. Closing of the transaction will require
approval by a two-thirds majority of holders of EMC common shares and option
holders, voting together, as well as applicable regulatory approvals. The EMC
shareholder vote is expected to take place in late July 2007, and assuming
timely receipt of all applicable regulatory approvals, closing of the
transaction is expected to occur shortly thereafter.
The Board of Directors of EMC has determined that this transaction is in the
best interests of EMC shareholders. GMP Securities LP has provided an opinion
to the Board of Directors of EMC that the consideration offered pursuant to the
transaction is fair, from a financial point of view, to the common shareholders
of EMC.
EMC has agreed to pay a break fee to Uranium One of C$55 million. EMC has also
provided Uranium One with certain other customary rights, including a right to
match competing offers.
In addition to customary conditions, Uranium One has a 21-day due diligence out
in its favour related to title to EMC`s material properties ending June 25,
2007.
Senior officers and directors of EMC have agreed to vote in favour of the
transaction, representing 5% of EMC`s basic shares outstanding.
Management Team and Board of Directors
Upon completion of the acquisition, EMC Chairman William M. Sheriff will be
appointed to the board of directors of Uranium One. Subject to Uranium One
shareholder approval to increase the number of directors, EMC will be entitled
to nominate a second non-Canadian representative to the board of directors of
Uranium One.
In addition, upon completion of the acquisition, Paul Matysek will continue to
lead the EMC team and grow Uranium One`s business in the United States as
Executive Vice President, Americas for Uranium One. William Lupien, a non-
executive director of EMC, will be appointed to the board of directors of
Aflease Gold.
Advisors and Counsel
Uranium One`s exclusive financial advisor is BMO Capital Markets and its legal
counsel is Fasken Martineau DuMoulin LLP in Canada and Dorsey & Whitney LLP in
the United States. EMC`s exclusive financial advisors are GMP Securities LP
and its legal counsel is Stikeman Elliott LLP.
Conference Call and Webcast
A conference call will be held on Monday, June 4 2007 at 11:00 AM Eastern time
to discuss the proposed transaction. A copy of the presentation will be made
available on www.uranium1.com prior to the call.
Via Telephone:
The local dial-in number will be 416-340-2217. The North American toll free
dial-in will be 1-866-696-5910. International participants must dial their
international access code followed by 800-8989-6336. The passcode for the live
call is 3225581 followed by the number sign.
A replay of the conference call will be available for one week at 416-695-5800
(local) or 1-800-408-3053 (North America toll free). The passcode for the
replay is 3225581 followed by the number sign.
Via Webcast:
A live audio webcast of the call will be available at
http://events.startcast.com/events/50/B0002
Key Assets of Energy Metals Corporation
EMC is a Canadian-based uranium company focused on growth in the United States.
The company has embarked upon a growth strategy seeking to commence production
from its assets in Texas and Wyoming and has amassed a large portfolio of U.S.
uranium resources located throughout the western United States as outlined at
the end of this press release.
Uranium One has projected annual production from EMC`s asset base in the United
States of 8 to 10 million pounds by 2013 from six production centres. The key
attributes of EMC include:
* A significant U.S. resource base within a portfolio of advanced uranium
projects:
- Attributable measured resources of 10.7 million pounds U3O8
- Attributable indicated resources of 49.7 million pounds U3O8
- Attributable inferred resources of 7.3 million pounds U3O8
- Attributable historical resources of 196.1 million pounds U3O8
- Significant potential to improve the confidence of existing resources
and to expand resources through additional drilling
* The Hobson ISR processing facility, located in Texas, which is currently
undergoing refurbishment and an expansion in nameplate yellowcake capacity
to approximately 1 million pounds U3O8 per year
* Advanced ISR projects with several prospective conventional mining
assets
* Near-term ISR production visible assets:
- Advanced stage projects with expected first production from the
Hobson facility in 2008
- In addition, in Uranium One`s view, projected production from Wyoming
by 2010
* Potential synergies between Uranium One`s Shootaring Mill and EMC`s
projects in Utah:
- Three EMC properties within close proximity of the mill containing
2.1 million pounds U3O8 of indicated resources at Velvet and 8.8
million pounds U3O8 of historical resources
The key NI 43-101 compliant assets of EMC are described below.
South Texas Mining Venture
The South Texas Mining Venture ("STMV") holds EMC`s interests in the Hobson ISR
processing facility and the La Palangana property located on the South Texas
Uranium Belt. EMC owns 99% of STMV and 1% is held by Everest Exploration Inc.
The La Palangana wellfield is being prepared as a projected satellite ISR
deposit to the Hobson Plant. The Hobson plant is currently being refurbished
to make use of modern processing technology, as well as doubling annual
throughput capacity to approximately 1 million pounds U3O8.
The Hobson plant is located in Karnes County in southern Texas, approximately
80 kilometres southeast of San Antonio. The plant was constructed by Everest
Exploration in 1978 and commenced commercial production of U3O8 in 1979 at a
rate of 250,000 pounds per year from the adjacent Moczygemba ISR deposit. As
production from Moczygemba decreased, the Hobson facility was modified to
enable it to accept feed in the form of loaded ion exchange resin from
satellite deposits. Nameplate capacity was increased to 500,000 pounds U3O8 in
1984, with peak production of 600,000 pounds of U3O8 achieved in 1986. The
Hobson facility was placed on care and maintenance from 1988 due to depressed
uranium prices at that time.
The La Palangana deposit is located approximately 160 kilometres south of the
Hobson processing facility and consists of two leases covering a total of 2,500
hectares. An inferred resource of 1.9 million tons grading 0.15% U3O8
containing 5.7 million pounds has been estimated at La Palangana with the
potential to increase this resource base through additional drilling at the
property (a technical report on the Palangana and Hobson Uranium In-Situ Leach
Project located in Duval and Karnes Counties, Texas was prepared for Standard
Uranium Inc, by Robert E. Blackstone, P.G. on November 10, 2005). A
confirmatory drill program is underway with six drill rigs at the project. As
of April 2, 2007 a total of 474 holes have been drilled since July 2006
totalling 188,619 feet.
CCC Group Inc. of San Antonio has been awarded the construction contract for
new and renovated facilities at Hobson. Mobilization and site specific safety
training for their crews has commenced. All baseline water quality wells are
now installed at La Palangana and water quality sampling of these wells is
ongoing.
Wyoming
EMC controls approximately 240,000 acres of uranium claims and leases in the
state of Wyoming located in the Great Divide, Powder River and Shirley Basins:
* Over 60% of the Great Divide Basin`s uranium deposits are amenable to ISR
mining methods
* 10 advanced stage project areas with historical resources within the Great
Divide Basin
* 3 advanced stage project areas with historical resources in the Powder
River Basin
* 2 projects in the Shirley Basin
Great Divide Basin
The Red Rim property comprises 405 hectares and is located in the southeast
portion of the Great Divide Basin, in Carbon County, 32 kilometres southwest of
Rawlins. In 1981, Union Carbide conducted an exploration program on the
property. Economic studies carried out at that time were conceptual and were
based on conventional underground mining techniques. Uranium mineralization on
the property is located in the lowest sandstone unit of the Fort Union
Formation, bounded by a shale unit above and by the Lance Formation below, and
varies from approximately 305 metres to 730 metres below surface. The company
has acquired the data logs of the historical exploration work completed on the
property and, based on this information, a NI 43-101 compliant resource was
estimated at 337,000 tons at 0.17% eU3O8 containing 1.1 million pounds of U3O8
in the indicated category, and 473,000 tons at 0.16% eU3O8 containing 1.5
million pounds of U3O8 in the inferred category (43-101 Mineral Resource
Report, Red Rim Uranium Project, Sweetwater County, Wyoming. Prepared for
Energy Metals Corporation by Douglas Beahm, P.E., P.G., June 14, 2006). These
estimates used a 0.25 grade-thickness cut-off. No follow-up drilling by EMC
has been conducted on the property to date.
The Jab property is located 19 kilometres from the Sweetwater Mill, in
Sweetwater County, and covers approximately 850 hectares. During the 1970`s,
Union Carbide conducted an extensive exploration program that identified two
mineralized zones on the property. Union Carbide completed feasibility studies
and intended to construct an open-pit mine and heap leach to extract the
uranium. Union Carbide submitted an application for a mining permit from the
state regulators but did not proceed with the project due to declining uranium
prices. Union Carbide eventually abandoned the property in the early 1980`s.
The mineralization on the property is comparatively shallow, where the upper
zone ranges from 12 metres to 45 metres below surface, and the lower zone
ranges from 45 metres to 80 metres below surface. Based on the historical data
available, the estimated NI 43-101 compliant measured resource for the project
is 2.2 million tons with an average grade of 0.073% containing 3.2 million
pounds of U3O8 and the estimated NI 43-101 indicated resource for the project
is 0.2 million tons with an average grade of 0.070% containing 0.3 million
pounds of U3O8 at a 0.25 grade-thickness cut-off (43-101 Mineral Resource
Report, Jab Uranium Project, Sweetwater County, Wyoming. Prepared for Energy
Metals Corporation by Douglas Beahm, P.E., P.G., July 14, 2006).
Powder River Basin
At the Moore Ranch project, a measured resource of 2.95 million tons grading
0.10% eU3O8 containing 5.88 million pounds at a 0.25 grade-thickness cut-off
has been estimated. An additional inferred resource of 43,600 tons grading
0.102% eU3O8 containing 90,000 pounds has also been estimated (43-101 Mineral
Resource Report, Moore Ranch Uranium Project, Campbell County, Wyoming.
Prepared for Energy Metals Corporation by Douglas Beahm, P.E., P. G., June 27,
2006). The Moore Ranch project was extensively explored from the 1970`s through
the mid-1980`s with the principal exploratory work and drilling completed by
Conoco Minerals Corp. Conoco conducted extensive drilling on the lands
currently held by EMC, including the delineation of three areas of
mineralization as planned open pit mines with drilling on 50 foot centers
(approximately 2,500 rotary drill holes) and the completion of approximately
130 core holes. All baseline studies are on track to be completed by the end
of August 2007. Work continues on other portions of the State and NRC License
Applications and the final applications are anticipated to be submitted at the
end of October 2007.
At the Peterson Ranch project, mineralization occurs as a roll-front type
deposit, which is typical of mineralization in this region and is amenable to
ISR mining methods. Exploration was previously completed on the property
during the late 1970`s and into the mid-1980`s. All historical drill data is
available and has been used to estimate a NI 43-101 measured resource base of
0.9 million tons grading 0.088% U3O8 containing 1.6 million pounds and an
indicated resource base of 0.1 million tons grading 0.119% U3O8 containing 0.3
million pounds at a 0.25 grade thickness cut-off (43-101 Mineral Resource
Report, Peterson Uranium Project, Converse County, Wyoming. Prepared for Energy
Metals Corporation by Douglas Beahm, P.E., P. G., June 27, 2006). Ore
delineation is ongoing at Peterson Ranch with two drill rigs.
New Mexico
The Crownpoint 19 and Crownpoint 29 properties are located in northwestern New
Mexico, approximately 125 miles northwest of Albuquerque and just to the west
of the small town of Crownpoint. The Crownpoint 24 property is located just to
the west of the town of Crownpoint. EMC has an option to acquire up to 80% in
Crownpoint 19 and Crownpoint 29 from NZ Uranium, LLC which owns 100% of these
properties. EMC also has an option to acquire an 80% interest in NZ Uranium,
LLC`s 60% stake in Crownpoint 24 which would result in EMC`s stake being a 48%
interest in this property. Hydro Resources Inc. (HRI) owns the remaining 40%
stake in Crownpoint 24. Continental Oil (Conoco) conducted an extensive
exploration and evaluation program on the Crownpoint properties in the 1970`s,
investigating the uranium mineralization with the goal of developing a mining
operation. Conoco completed at least 325 rotary and diamond core drill holes
on the Crownpoint 19 and Crownpoint 29 properties and at least 157 rotary and
diamond drill holes on the Crownpoint 24 property. Conoco and HRI completed a
pre-feasibility study defining a significant U3O8 resource. Uranium
mineralization at the Crownpoint projects is hosted in sandstone beds of the
Westwater Canyon Member of the Morrison Formation. The mineralization
represents secondarily enriched uranium bodies which are controlled by porous
and permeable stratigraphic units and structural zones. The indicated resource
calculated in the pre-feasibility study for Crownpoint 19 is 2.8 million tons
at a grade of 0.091% containing 5.6 million pounds of U3O8 at a 0.04% U3O8 cut-
off grade on a 100% basis. The indicated resource estimate for the western
half of Crownpoint 29 is 4.3 million tons at an average grade of 0.086%
containing 8.0 million pounds of U3O8 using a 0.04% U3O8 cut-off grade on a
100% basis. The indicated resource estimate for Crownpoint 24 is 4.8 million
tons at an average grade of 0.104% containing 10.0 million pounds of U3O8 using
a 0.04% U3O8 cut-off grade on a 100% basis. Studies completed by HRI indicate
that an in situ leach rate of recovery of 70% to 75% is probable (Technical
Report on Section 24 Portion of the Crownpoint Property, McKinley County, New
Mexico. Prepared by Gregory Myers, Ph.D., P.Geo., March 2, 2006).
The Hosta Butte project is located in northwestern New Mexico, approximately
125 miles northwest of Albuquerque and approximately 5 miles to the south of
the town of Crownpoint. EMC has the option to acquire up to 80% of the Hosta
Butte project from NZ Uranium, LLC, the 100% owner of the property.
Continental Oil (Conoco) conducted an extensive exploration and evaluation
program on the property in the 1970`s, investigating the uranium mineralization
with the intention of developing a mining operation. Conoco completed at least
133 rotary and diamond core drill holes in the area of the resource. Conoco
and Hydro Resources Inc. (HRI) completed a pre-feasibility study defining a
significant U3O8 resource. Uranium mineralization at Hosta Butte is hosted in
sandstone beds of the Westwater Canyon Member of the Morrison Formation. The
mineralization represents secondarily enriched uranium bodies which are
controlled by porous and permeable stratigraphic units and structural zones.
The indicated resource (on a 100% basis) calculated in this study for the Hosta
Butte property is 6.6 million tons at an average grade of 0.112% U3O8
containing 14.8 million pounds of U3O8, using a 0.04% U3O8 cut-off grade
(Technical Report of the Hosta Butte Property, McKinley County, New Mexico.
Prepared by Gregory Myers, Ph.D., P.Geo., April 18, 2006).
Utah
The Section 2 portion of the Velvet project was extensively explored during the
1970`s with the principal exploratory work and drilling completed by Atlas
Minerals and additional drilling completed by Minerals Recovery Corporation
(MRC). The drilling was completed adjacent to Atlas Minerals` Velvet Mine
which was mined in Section 3 up to the property line with EMC`s current mineral
holdings in Section 2. Atlas and MRC conducted extensive drilling on the lands
currently held by EMC including the delineation of four mineralized areas with
drilling on a rough grid of approximately 100 foot centers. The available data
includes radiometric data from some 173 drill holes completed on the property.
The Velvet Mine operated by Atlas Minerals on Section 3 produced approximately
400,000 tons of ore at grades of 0.46% U3O8 and 0.64% V2O5 (approximately 4
million pounds of U3O8 and 5 million pounds V2O5) during the period from 1979
to 1984. The indicated resource estimate for EMC`s Velvet project is 306,000
tons grading 0.34% U3O8 containing 2.1 million pounds of U3O8 at a 0.50% grade
thickness cut-off (43-101 Mineral Resource Report, Velvet Mine Uranium Project,
San Juan County, Utah. Prepared for Energy Metals by BRS Inc., March 19, 2007).
Oregon
The Aurora property is located in southern Oregon approximately three miles
from the Nevada border and approximately 10 miles west of the small border town
of McDermitt, Nevada. Placer Amex conducted an extensive exploration and
evaluation program on the property from 1977 through to 1980, investigating the
uranium mineralization with the goal of developing a conventional mining
operation. Placer Amex and the previous owner, Locke Jacobs, completed at
least 562 rotary and diamond core drill holes, of which 530 are included in the
resource calculation. Uranium mineralization is hosted in clay altered
volcanic flows and tuffs within the McDermitt Caldera complex. The
mineralization represents both primary and secondarily enriched uranium bodies
which are controlled by porous and permeable stratigraphic units and structural
zones. A NI 43-101 compliant indicated resource has been estimated at 17.69
million tons at an average grade of 0.0518% U3O8 containing 18.3 million pounds
of uranium using a 0.03% U3O8 cutoff grade. The mineralization averages
approximately 20 feet in thickness and is distributed amongst multiple, nearly
horizontal horizons ranging from 5 to over 100 feet in true thickness. Studies
completed by Placer Amex in 1979 indicate recoveries of at least 85% are
possible (Technical Report of the Aurora Uranium Project, Malheur County,
Oregon. Prepared by Gregory Myers, Ph.D., P.Geo., September 1, 2005).
About Uranium One
sxr Uranium One Inc. is a Canadian-based uranium producing company with a
primary listing on the Toronto Stock Exchange and a secondary listing on the
JSE Limited (the Johannesburg stock exchange). The Corporation owns 70% of the
operating Akdala Uranium Mine in Kazakhstan and is also developing the South
Inkai and Kharasan Uranium Projects in Kazakhstan. Uranium One owns the
Dominion Uranium Project in South Africa, as well as the Honeymoon Uranium
Project in South Australia. The Corporation recently acquired the Shootaring
Mill and associated assets in the western United States. Uranium One is also
engaged in uranium exploration activities in the Athabasca Basin of
Saskatchewan, South Africa, Australia and the Kyrgyz Republic.
About Energy Metals Corporation
Energy Metals Corporation is a TSX and NYSE Arca listed company focused on
advancing its industry leading uranium property portfolio towards production in
what is the world`s largest uranium consumer market, the United States of
America. Energy Metals Corporation has extensive advanced property holdings in
Wyoming, Texas and New Mexico that are amenable to ISR (in-situ recovery).
This form of uranium mining was pioneered in Texas and Wyoming and utilizes
oxygenated groundwater to dissolve the uranium in place and pump it to the
surface through water wells. Energy Metals is currently development drilling
the La Palangana uranium deposit and upgrading the Hobson Uranium Processing
Plant in Texas for an anticipated 2008 production date. Energy Metals is also
actively advancing other significant uranium properties in the States of
Colorado, Utah, Nevada, Oregon and Arizona.
For further information, please contact:
Neal Froneman Paul Matysek, M.Sc., P. Geo.
Chief Executive Officer Chief Executive Officer
sxr Uranium One Inc. Energy Metals Corporation
Tel: + 1 416 350-3657 Tel: + 1 604 684-9007
Chris Sattler William M. Sheriff, B.Sc.
Senior Vice President, Investor Relations Chairman
sxr Uranium One Inc. Energy Metals Corporation
Tel: + 1 416 350-3657 Tel: +1 972 333-2214
Table 1 - Energy Metals NI 43-101 Compliant Resources
Deposit Totals EMC NI-43-101
Share Resources
described in
News Release
or Technical
Reports
Dated:
Project State Tons U3O8 U3O8 Ownersh U3O8
Grade ip
(000`s) (%) (lbs (%) (lbs
000`s) 000`s)
Measured Resources
Moore Ranch WY 2,950 0.100 5,880 100 5,880 NR, July 20,
2006
Peterson WY 896 0.088 1,576 100 1,576 NR, July 19,
Ranch 2006
Jab WY 2,210 0.073 3,233 100 3,233 NR ,Oct 13,
2006
Sub-Total 6,056 0.088 10,689 10,689
Measured
Indicated
Resources
Peterson WY 110 0.119 262 100 262 NR, July 19,
Ranch 2006
Red Rim WY 337 0.170 1,142 100 1,142 NR, July 14,
2006
Jab WY 231 0.070 325 100 325 NR, Oct 13,
2006
Crownpoint 19 NM 2,800 0.091 5,634 80 4,507 TR, April 7,
2006
Crownpoint 29 NM 4,260 0.086 8,038 80 6,430 TR, April 7,
2006
Crownpoint 24 NM 4,750 0.104 9,966 48 4,784 TR, March 2,
2006
Hosta Butte NM 6,598 0.112 14,822 80 11,858 TR, April
18, 2006
Velvet UT 306 0.340 2,082 100 2,082 NR, March
20, 2007
Aurora OR 17,690 0.052 18,300 100 18,300 TR, Sept 1,
2005
Sub-Total 37,082 0.080 60,571 49,690
Indicated
Inferred
Resources
Moore Ranch WY 44 0.102 89 100 89 NR, July 20,
2006
Red Rim WY 473 0.163 1,539 100 1,539 NR, July 14,
2006
La Palangana TX 1,906 0.150 5,701 99 5,643 TR, Nov 10,
2005
Sub-Total Inferred 2,423 0.152 7,329 7,271
Table 2 - Energy Metals Historical Resources (see Cautionary Statement)
Deposit EMC Share Described in
Total News Release
Dated:
Project U3O8 (lbs Ownership (U3O8 lbs
000`s) (%) 000`s)
Wyoming
Allemand-Ross 7,800 100 7,800 Jul 20, 2006
AC Block 9,000 100 9,000 Feb 23, 2005
Antelope 15,000 100 15,000 Oct 25, 2004
Barge 9,000 100 9,000 Mar 26, 2007
BL Block 700 100 700 Feb 18, 2005
CD Block 1,500 100 1,500 Feb 18, 2005
Cyclone 2,100 100 2,100 Oct 25, 2004
DW Block 12,000 100 12,000 Feb 23, 2005
EC Block 4,000 100 4,000 Feb 23, 2005
JK Block 3,500 100 3,500 Feb 23, 2005
KM & KME Blocks 3,000 100 3,000 Feb 18, 2005
OZ Block 2,000 100 2,000 Feb 23, 2005
RM Block 4,000 100 4,000 Feb 18, 2005
Twin Buttes 5,000 100 5,000 Oct 25, 2004
Western Sheep 3,000 100 3,000 Oct 25, 2004
Nine Mile 9,000 100 9,000 June 9, 2005
Total Wyoming 90,600 90,600
Utah
San Rafael 2,000 100 2,000 Aug 22, 2006
Velvet 3,300 100 3,300 Jul 20, 2004
Frank M 3,500 100 3,500 Sep 26, 2004
Total Utah 8,800 8,800
New Mexico
Nose Rock 8,000 100 8,000 Dec 6, 2005
Total New Mexico 8,000 8,000
Colorado
Hanson Creek 28,970 39 11,298 Jul 11, 2006
Coyote Basin 35,400 100 35,400 Oct 5, 2006
Maybell 40,000 100 40,000 April 6, 2005
Total Colorado 104,370 86,698
Arizona
Wate 2,000 100 2,000
Total Arizona 2,000 2,000
Total Historical 213,770 196,098
Resources
All historical resource estimates quoted herein are based on prior data and
reports obtained and prepared by previous operators and certain other
information. The historical estimates should not be relied upon. No qualified
person (as defined by NI 43-101) has done sufficient work to classify the
historical estimate as current mineral resources or mineral reserves. Neither
EMC nor Uranium One has completed the work necessary to verify the
classification of the mineral resource estimates. Neither EMC nor Uranium One
is treating the historical estimates as current mineral resources or mineral
reserves as defined in sections 1.2 and 1.3 of NI 43-101. Properties
containing historical resource estimates will require further evaluation.
Where to Find Additional Information About the Proposed Transaction
Subject to the terms and conditions set forth in the definitive agreement, EMC
intends to file a notice of meeting, management information circular and
related materials with Canadian securities regulatory authorities and the U.S.
Securities and Exchange Commission (the "SEC") relating to the proposed
transaction, and Uranium One intends to file a registration statement and
prospectus with the SEC, including the EMC management information circular and
related materials, relating to the proposed transaction. Investors and
shareholders are strongly advised to read these documents, as well as any
amendments and supplements to these documents, when they become available
because they will contain important information. At that time, investors and
shareholders may obtain a free copy of the EMC management information circular
and related documents at the Canadian securities regulators` website at
www.sedar.com and a free copy of the registration statement and prospectus and
related documents at the SEC`s website at www.sec.gov. At that time, free
copies of these documents can also be obtained by directing a request to
Uranium One at the address for Uranium One set forth in this press release.
YOU SHOULD READ THE MANAGEMENT INFORMATION CIRCULAR, PROSPECTUS AND RELATED
MATERIALS CAREFULLY BEFORE MAKING A DECISION CONCERNING THE PROPOSED
TRANSACTION.
Other Matters and Cautionary Statement
Readers are advised to refer to independent technical reports containing
detailed information with respect to the material properties of Uranium One and
EMC. These technical reports are available under the profiles of Uranium One
and UrAsia Energy Ltd., in the case of Uranium One, and EMC at www.sedar.com
and provide the date of each resource or reserve estimate, details of the key
assumptions, methods and parameters used in the estimates, details of quality
and grade or quality of each resource or reserve and a general discussion of
the extent to which the estimate may be materially affected by any known
environmental, permitting, legal, taxation, socio-political, marketing, or
other relevant issues. The technical reports also provide information with
respect to data verification in the estimation.
This press release uses the terms "measured", "indicated" and "inferred"
resources as defined in accordance with National Instrument 43-101 - Standards
of Disclosure for Mineral Projects. United States readers are advised that
while these terms are recognized and required by Canadian securities laws, the
SEC does not recognize them. Readers are cautioned not to assume that all or
any part of the mineral deposits in these categories will ever be converted
into reserves. In addition, "inferred resources" have a great amount of
uncertainty as to their existence and economic and legal feasibility and it
cannot be assumed that all or any part of an inferred mineral resource will
ever be upgraded to a higher category. Readers are cautioned not to assume that
all or any part of an inferred resource exists or is economically or legally
mineable. Mineral resources are not mineral reserves and do not have
demonstrated economic viability.
Scientific and technical information contained herein with respect to EMC`s
resources has been reviewed on behalf of EMC by Dr. Art Ettlinger M.Sc., Ph.D.,
P. Geo. and, Chief Geologist for EMC and a Qualified Person for the purposes of
NI 43-101.
Certain of the statements made herein, including any information as to the
timing and completion of the proposed transaction, the potential benefits
thereof, the future activities of and developments related to EMC and Uranium
One prior to the proposed transaction and the combined company after the
proposed transaction, market position, and future financial or operating
performance of Uranium One or EMC,are forward-looking and subject to important
risk factors and uncertainties, many of which are beyond the corporations`
ability to control or predict. Forward-looking statements are necessarily based
on a number of estimates and assumptions that are inherently subject to
significant business, economic and competitive uncertainties and contingencies.
Known and unknown factors could cause actual results to differ materially from
those projected in the forward-looking statements. Such factors include, among
others: uranium and gold price volatility; impact of any hedging activities,
including margin limits and margin calls; discrepancies between actual and
estimated production, between actual and estimated reserves and resources and
between actual and estimated metallurgical recoveries; costs of production,
capital expenditures, costs and timing of construction and the development of
new deposits, success of exploration activities and permitting time lines;
changes in national and local government legislation, taxation, controls,
regulations and political or economic developments in Canada, the United
States, South Africa, Australia, Kazakhstan or other countries in which either
corporation does or may carry out business in the future; risks of sovereign
investment; the speculative nature of uranium and gold exploration, development
and mining, including the risks of obtaining necessary licenses and permits;
dilution; competition; loss of key employees; additional funding requirements;
and defective title to mineral claims or property. In addition, there are risks
and hazards associated with the business of uranium and gold exploration,
development and mining, including environmental hazards, industrial accidents,
unusual or unexpected formations, pressures, cave-ins, flooding and gold
bullion losses (and the risk of inadequate insurance or inability to obtain
insurance, to cover these risks), as well as the factors described or referred
to in the section entitled "Risk factors" in Uranium One`s Annual Information
Form for the year ended December 31, 2006 which is available on SEDAR at
www.sedar.com, and the section entitled "Risk factors" in EMC`s Annual
Information Form for the year ended June 30, 2006 which is available on SEDAR
at www.sedar.com and from the SEC at www.sec.gov and which should be reviewed
in conjunction with this document. Accordingly, readers should not place undue
reliance on forward-looking statements. Neither corporation undertakes any
obligation to update publicly or release any revisions to forward-looking
statements to reflect events or circumstances after the date of this document
or to reflect the occurrence of unanticipated events.
For further information about Uranium One, please visit www.uranium1.com. For
further information about EMC, please visit www.energymetalscorp.com.
Date: 04/06/2007 14:45:09 Produced by the JSE SENS Department.
