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A TECHNICAL REVIEW OF THE ARICHENG NORTH AND ARICHENG SOUTH URANIUM DEPOSITS, IN WESTERN GUYANA FOR U3O8 CORP. AND PROMETHEUS RESOURCES (GUYANA) INC. prepared by R. Brian Alexander, P.Geo. Senior Associate Geologist and Kurt Breede, P.Eng. Director, Marketing and Technical Services January 14, 2009 Toronto, Canada TABLE OF CONTENTS Page 1. SUMMARY ..........................................................................................................................1 2. INTRODUCTION AND TERMS OF REFERENCE.......................................................7 2.1 INTRODUCTION ........................................................................................................7 2.2 TERMS OF REFERENCE .........................................................................................10 2.3 SOURCES OF INFORMATION ...............................................................................10 2.4 UNITS AND CURRENCY ........................................................................................11 2.5 DISCLAIMER ............................................................................................................12 3. RELIANCE OF OTHER EXPERTS ...............................................................................13 4. PROPERTY DESCRIPTION AND LOCATION...........................................................14 4.1 LOCATION ................................................................................................................14 4.2 PROPERTY DESCRIPTION .....................................................................................14 5. ACCESS, CLIMATE, LOCAL RESOURCES AND INFRASTRUCTURE AND PHYSIOGRAPHY ........................................................................................................18 5.1 ACCESS .....................................................................................................................18 5.2 CLIMATE...................................................................................................................19 5.3 LOCAL RESOURCES AND INFRASTRUCTURE .................................................19 6. HISTORY ...........................................................................................................................21 6.1 GENERAL AND GOVERNMENT PROGRAMS ....................................................21 6.2 REGIONAL PRIVATE COMPANY PROGRAMS ..................................................21 7. GEOLOGICAL SETTING ...............................................................................................25 7.1 REGIONAL GEOLOGY............................................................................................25 7.2 PROPERTY GEOLOGY............................................................................................28 8. DEPOSIT TYPES ..............................................................................................................30 8.1 UNCONFORMITY DEPOSITS.................................................................................30 9. MINERALIZATION .........................................................................................................32 10. EXPLORATION RESULTS...........................................................................................33 10.1 REGIONAL EXPLORATION SURVEYS................................................................33 10.2 PROPERTY-SCALE EXPLORATION .....................................................................41 - ii - TABLE OF CONTENTS (continued) Page 11. EXPLORATION METHOD AND APPROACH .........................................................52 12. SAMPLE PREPARATION, ANALYSIS AND SECURITY .......................................55 12.1 U3O8 CORP./PROMETHEUS RESOURCES (GUYANA) INC. DIAMOND DRILL PROGRAM, SAMPLE PREPARATION.......................................................55 12.2 WGM PREPARATION LAB REVIEW AND QAQC PROGRAM REVIEW .........55 13. DATA VERIFICATION .................................................................................................59 13.1 WGM CHECK SAMPLING PROGRAM..................................................................59 13.2 WGM CHECK SURVEYING PROGRAM...............................................................59 14. ADJACENT PROPERTIES ...........................................................................................60 15. MINERAL PROCESSING AND METALLURGICAL TESTING............................61 16. MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES .......................62 16.1 GENERAL..................................................................................................................62 16.2 GENERAL MINERAL RESOURCE ESTIMATION PROCEDURES ....................63 16.3 DATABASE ...............................................................................................................63 16.4 GEOLOGICAL MODELLING PROCEDURES .......................................................65 16.5 DATABASE PREPARATION, STATISTICAL ANALYSIS AND ASSAY COMPOSITING ............................................................................................66 16.6 MINERAL RESOURCE BLOCK MODELLING .....................................................68 16.7 MINERAL RESOURCE CLASSIFICATION AND TABULATION.......................71 17. OTHER RELEVANT DATA AND INFORMATION .................................................73 18. INTERPRETATION AND CONCLUSIONS ...............................................................74 19. RECOMMENDATIONS.................................................................................................75 CERTIFICATES.....................................................................................................................77 REFERENCES........................................................................................................................81 APPENDIX 1: ANALYTICAL CERTIFICATES...............................................................84 - iii - TABLE OF CONTENTS (continued) Page LIST OF TABLES 1. 2008 priority reconnaissance targets.............................................................................37 2. Aricheng North and Aricheng South Mineral Resources .............................................63 3. Basic statistics of raw U3O8 Corp. assays....................................................................66 4. Aricheng project block model grid parameters.............................................................68 5. Aricheng North and Aricheng South Mineral Resources showing sensitivity to cut-off grade..............................................................................................................70 6. Aricheng North and Aricheng South Mineral Resource estimate.................................74 LIST OF FIGURES 1. Location of Reconnaissance Permit Areas A and B in Guyana, South America............ 8 2. Reconnaissance Permit Area A and B with location of the Kurupung Batholith........... 9 3. Portion of geology map with Permit A and B superimposed. Permit A covers primarily granite-greenstone, and Permit B covers the Roraima Basin........................ 26 4. Roraima Basin, with outliers. The Athabasca Basin is superimposed on this image at the same scale to illustrate size comparisons ................................................. 27 5. Regional map of Kurupung Batholith showing contoured cps and reconnaissance areas .............................................................................................................................. 29 6. Airborne radiometric survey map showing coverage of the Kurupung Batholith and outlining 28 priority targets.................................................................................... 35 7. DEM Map of Reconnaissance Permit A and B showing individual flight blocks flown during the airborne radiometric survey............................................................... 36 8. Summary of regional structure and stratigraphy of Permits A and B, based on satellite radar imagery................................................................................................... 38 9. Airborne magnetic data from Kurupung Batholith with interpreted structures............ 40 10. Simplified structural interpretation with mineralized structures shown....................... 41 11. VLF frequency 1 Fraser Filter quadrature data – Aricheng South ............................... 46 12. Detailed map VLF structural interpretation of Aricheng South with contoured cps and mineralized surface projection ............................................................................... 46 13. Detailed map (as above) with frequency 1 Fraser Filter quadrature data ..................... 47 14. Aricheng South Drill hole Location Map ..................................................................... 49 15. Aricheng South Longitudinal Section with contoured grade x thickness data ............. 50 16. Aricheng North Drill hole Location Map ..................................................................... 52 17. Aricheng North Longitudinal Section with contoured grade x thickness data ............. 53 18. LOG Normal Probability Plot of Aricheng North Assays ............................................ 67 19. LOG Normal Probability Plot of Aricheng South Assays ............................................ 67 20. Mineral Resource Blocks on Section ARN15 showing % U3O8 grades....................... 72 21. Mineral Resource Blocks on Section ARSW10 showing % U3O8 grades.................... 72 - iv - 1. SUMMARY On March 24, 2008, U3O8 Corp.