Akbastau Mine

Akbastau is an operating in situ recovery uranium mine located on the No. 1, 3 and 4 Sites of the Budenovskoye Uranium Field in the southwestern part of the Chu-Sarysu basin in the Suzak region, South Kazakhstan province, approximately 400 km northwest of Shymkent and 200 km east of Kyzylorda, Kazakhstan.  The mine is owned by the Akbastau joint venture, a Kazakh registered joint stock company in which Uranium One has a 50% interest. The other 50% interest in Akbastau is owned by JSC NAC Kazatomprom, Kazakhstan’s state-owned company responsible for the mining and exporting of uranium.

Production

Pilot production at the Akbastau mine commenced on January 30, 2009 from the No. 1 Site and in October 2010 from the No. 3 Site.

Pursuant to the terms of its subsoil use contract, the current production capacity of the Akbastau Mine is 4,992,000 lbs U₃O₈ (1,920 t U) per year from the No. 1, 3 and 4 Sites of the Budenovskoye Uranium Field.

Uranium is extracted at the Akbastau mine using the in situ recovery method, and processed using ion exchange technology at the neighbouring Karatau processing facility.

Akbastau is currently producing from Sites No. 1 and 3 and plans to commence production from Site No. 4 following receipt of required regulatory approvals. Akbastau is adjacent to the Karatau mine, which is licensed to mine Site No. 2 within the southern subfield of the Budenovskoye Uranium Field.  Akbastau entered into a toll processing agreement with Karatau, under which all of the solutions mined at Akbastau are currently processed at Karatau.

Most recently, in 2011, Akbastau produced 2,873,900 lbs U₃O₈ (1,105 t U) of which 1,437,000 lbs U₃O₈ (553 t U) was attributable to Uranium One.

Mineral Resources and Mineral Reserves

The following table sets out the mineral resource and mineral reserve estimates for the Akbastau mine as at December 31, 2011.

Notes:

(1)   Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.  Inferred Mineral Resources have a great amount of uncertainty as to their existence and as to their economic feasibility.  Under no circumstances can it be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher Mineral Resource category or converted to Mineral Reserves.

(2)   The foregoing Mineral Resource and Mineral Reserve estimates are taken from the report titled “Technical Report on the Akbastau Uranium Mine, Kazakhstan” dated March 1, 2012 (as amended May 2, 2012), prepared for Uranium One by Roscoe Postle Associates Inc. and are subject to the methods, parameters, assumptions, qualifications and procedures which are set out in such report. For a complete description of such methods, parameters, assumptions, qualifications and procedures, reference should be made to the full text of the foregoing reports, which is available for review on SEDAR under Uranium One’s profile located at the following website: www.sedar.com.  Mineral Resources and Mineral Reserves are reported in accordance with Definition Standards on Mineral Resources and Mineral Reserves adopted by the Council of the Canadian Institute of Mining, Metallurgy and Petroleum and National Instrument 43-101 – Standards of Disclosure for Mineral Projects promulgated by the Canadian Securities Administrators.

(3)   The second column for “Tonnes U” and “U₃O₈” represents the portion of total Mineral Reserves and/or Mineral Resources notionally attributable to Uranium One’s equity interest in the joint venture through which the property is owned in the percentage indicated in this column.