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Uranium One

Akdala Mine

Akdala is an operating in situ recovery uranium mine located in the Chu-Sarysu basin in the Suzak region, South Kazakhstan province, approximately 240 km north of Shymkent, Kazakhstan. The mine is owned by the Betpak Dala joint venture, a Kazakh registered limited liability partnership in which Uranium One has a 70% interest. The other 30% interest in Betpak Dala is owned by JSC NAC Kazatomprom, Kazakhstan’s state-owned company responsible for the mining and exporting of uranium.

Production

Commercial production at the Akdala mine commenced in January 2004, following a 2.25 year pilot-plant testing program conducted during the period from October 1, 2000 through to December 31, 2003.

Uranium is extracted at the Akdala mine using the in situ recovery method, and processed using ion exchange technology at a processing facility on site. As of December 31, 2012 there were 458 extraction wells and 1,116 injection wells, of which 243 production wells and 751 injection wells were in operation. During 2012 a total of 247 wells were installed with a plan of installing a further 239 wells in 2013 to achieve the production target for the year. In addition, acidification of six new production blocks were completed and put into production during 2012.

Construction of a satellite plant to facilitate treatment of solutions from production blocks located approximately 15 kilometres to the east of the current central processing facilities in an area known as Letniy commenced in 2011. Construction of the satellite plant is scheduled for completion in 2013. Production from new well fields in the Letniy area is expected to commence by the end of 2013.

Most recently, in 2012, the Akdala mine produced 2,846,600 lbs U3O8 (1,095 t U), of which 1,992,600 lbs U3O8 (766 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 Akdala mine as of June 30, 2013.

AKDALA MINE - Blizhniy

(as of June 30, 2013)

Ore

(000s tonnes)

Grade

(% U)

Tonnes U

Grade (%U3O8)

U3O8

(M lbs)

Reserves

100%

100%

70%

100%

70%

Proven

33,935

0.005

1,698

1,189

0.006

4.41

3.09

Probable

 -

 - 

 - 

 - 

 - 

 - 

 -

Proven and Probable

33,935

0.005

1,698

1,189

0.006

4.41

3.09

Resources




Measured

33,935

0.006

1,887

1,321

0.007

4.90

3.43

Indicated

 - 

 - 

 - 

 - 

 - 

 - 

 - 

Measured and Indicated

33,935

0.006

1,887

1,321

0.007

4.90

3.43

Inferred

911

0.046

415

291

0.054

1.08

0.76


AKDALA MINE - Letniy

(as of June 30, 2013)

Ore

(000s tonnes)

Grade

(% U)

Tonnes U

Grade (%U3O8)

U3O8

(M lbs)

Reserves

100%

100%

70%

100%

70%

Proven

-

-

-

-

-

-

-

Probable

1,300

0.028

360

252

0.033

0.94

0.66

Proven and Probable

1,300

0.028

360

252

0.033

0.94

0.66

Resources




Measured

-

-

-

-

-

-

Indicated

628

0.064

399

279

0.075

1.04

0.73

Measured and Indicated

628

0.064

399

279

0.075

1.04

0.73

Inferred

8.772

0.064

5,600

3,920

0.075

14.56

10.19

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 Uranium One’s Summary of Mineral Resources and Mineral Reserves at June 30th 2013 outlined in "Uranium One Announces a 5% Increase in Q3 2013 Production to 3.2 Million Pounds at an Average Total Cash Cost of $16 per Pound Sold" on November 4, 2013, and are subject to the methods, parameters, assumptions, qualifications and procedures which are set out in such document. For a complete description of such methods, parameters, assumptions, qualifications and procedures, reference should be made to the full text of the foregoing document, 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.