Uranium Sector Review Exploration, Development & Production

Uranium Sector Review Exploration, Development & Production March Quarter 2011 Resource Capital Research

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28 March 2011

Uranium Sector Review March Quarter 2011

Resource Analyst (Uranium): John Wilson

Resource Analyst: Dr Tony Parry Resource Analyst: Dr Trent Allen

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Contents

Contents ...... 2 Overview and Investment Comment ...... 3 RCR March Quarter Featured Company Summary ...... 7 [Industry Background and Analysis ...... ] Comparative Charts ...... 9 Financial Data ...... 12 Company Statistics ...... 12 Reserves, Resources and Historic Mineralisation ...... 13 Valuation and Performance Data ...... 13 Exploration, Development and Production Companies

[Aura Energy Limited ...... ] Australian-American Mining Corp Limited...... 14 Bannerman Resources Ltd ...... 16 [CanAlaska Uranium Limited ...... ] Deep Yellow Limited...... 18 Energy and Minerals Australia Limited ...... 20 Energy Resources of Australia Limited* ...... 22 Energy Ventures Limited ...... 24 [Extract Resources Limited ...... ] Greenland Minerals and Energy Limited ...... 26 [Northern Minerals Limited ...... ] Paladin Energy Limited* ...... 28 Peninsula Energy Limited...... 30 PepinNini Limited ...... 32 [Stonehenge Metals Limited ...... ] Toro Energy Limited...... 34 Ur-Energy Inc ...... 36

[Uranium Price Fundamentals ...... ] [Uranium Company Share Price Performance Tables ...... ] Market Charts………………………………………………………………………………………………………………………………………..65 Report Contributors ...... 40 Disclosure and Disclaimer ...... 41

* Indicates companies with detailed financial projections and valuation available.

[This is the Abridged Report version of the March Quarter RCR Uranium Sector Review. The purchase price of RCR’s March quarter Subscriber Reports (uranium, gold, rare and minor metals, and iron ore) is A$110 per report. The annual subscription rate for all RCR reports is A$440 – commodities covered may vary from quarter to quarter. Purchase details and research services for institutional investors can be found at www.rcresearch.com.au]

Overview and Investment Comment

Market performance summary table

28 March 2011 Current 1 month 3 month 6 month 12 month Price* Performance (%) Spot Uranium Price :US$/lb 60.0 -12 -3 28 42 Uranium Participation Corp :C$/Share 7.0 -23 -13 6 18 Merrill Lynch Uranium Equity Index 459.4 -19 -14 17 15 Share Prices - Select Companies Energy Resources of Australia :A$/share 8.31 -19 -26 -39 -56 Paladin Energy :A$/share 3.75 -24 -24 1 -3

Cameco :C$/Share 30.6 -23 -24 8 13 Denison Mines :C$/Share 2.7 -27 -17 48 88 Uranium One :C$/Share 4.4 -32 -8 58 102

Australian companies with one or more uranium project na -7 6 45 62 Canadian companies with one or more uranium project na -10 6 58 71

Market Indices

World Markets (all sectors) Morgan Stanley World Index 1325.9 -2 4 13 14

Equity market performance

Global uranium The Merrill Lynch Uranium Equity Index (a global basket of uranium equities hit by high equities) is down 19% over the past month, down 14% over 3 months volatility following and up 15% over the past 12 months. The sector has been adversely events in Japan. impacted by serious crises at a number of Japan’s nuclear power plants following a devastating earthquake and tsunami March 11.

In the past 1 month, the uranium mining majors have had negative The Merrill Lynch share price performance: Cameco (CCO) is down 23% (3 month Uranium Equity Index performance -24%), Denison Mines (DML) is down 27% (3 month is down 19% over the performance -17%), Uranium One (UUU) down 32% (3 month past 1 month. performance -8%), Energy Resources of Australia (ERA) down 19% (3 month performance -26%) and Paladin (PDN) down 24% (3 month performance -24%).

The market valuation of Australian companies with one or more uranium projects is down 7% over the past month, up 6% over the past 3 months, and up 62% over the past 12 months. Canadian companies with one or more uranium projects are down 10% over the past month, up 6% over the past 3 months, and up 71% over the past 12 months.

Uranium price outlook The uranium spot price at US$60/lb is The uranium spot price is US$60/lb (Trade Tech; UxC US$62.50/lb), down from a recent and following a volatile quarter it is back to the same price it was in high of US$68/lb. December. It has partially recovered from its plummet mid March to US$49/lb on news of the partial meltdown at the Fukushima nuclear

plant in Japan. Immediately prior to the massive Japanese earthquake on 11 March, the spot price had been trading at US$68/lb. The uranium spot market is likely to We expect the spot market to be characterised by heightened volatility experience increased around the US$60/lb mark in the coming months. volatility over the next 3 to 9 months. The long term contract uranium price is US$73/lb (28 February), up from US$65/lb three months ago. While the impact of the Japanese quake may weaken discretionary inventory purchases, and produce

some delays to new reactor construction programs, the impact on contract prices is likely to be temporary, remaining at or quickly

returning to +US$70/lb territory, the likely level necessary to support development decisions at a number of advanced projects, particularly in Namibia, eg the large scale Extract (ASX:EXT) and Bannerman (ASX:BMN) projects, and potentially Deep Yellow (ASX:DYL).

Impact of the Japanese earthquake

The full impact of the Japanese earthquake and tsunami is yet to be The full impact of the determined. Indeed the reactors at the Fukushima plant, the worst Japanese earthquake affected by the earthquake, appear to be stabilising, though, at the time is yet to be of writing, they are not yet fully under control. However, as the risk of determined. reactor damage becomes clearer, the question remains as to what impact the crisis will have on the rate of nuclear power expansion

elsewhere in the world and the associated impact on uranium demand. The answer to both questions may not be evident for 12 months. However, it appears likely that the nuclear expansion trajectory will be flatter, due to the possibility of constrained reactor life extensions, and increased reactor capex driven by an expectation of increased

regulatory requirements and associated increased construction time.

The 3, or possibly 4, Of the 13 reactors on Japan’s northern coast impacted by the quake and reactors lost in the tsunami, it was the 4 oldest reactors (pre 1980) that completely failed, Japanese earthquake and at least 3 of these, and possibly all 4, will remain permanently account for less than closed. There will likely be delays to restarting the other reactors that 1% of global uranium shut down automatically when the quake hit, due to damage of related demand. facilities and infrastructure.

Number of operating nuclear power plants by age in the world at 26 August 2010.*

About 75% of all reactors in operation today are over 20 years old, and 25% are over 30 years old.

(*Note that a reactor’s age is determined by the date when it was first connected to the grid.) Source: IAEA, 2010

Japan has 55 nuclear reactors with annual uranium consumption of 21.3mlbs, or about 12-13% of global uranium demand. With the shut down reactors accounting for 20% - 24% of the Japanese fleet, the

impact to global uranium demand is about 4-5mlbs on an annualised basis. In relation to the 3 or 4 reactors to be permanently shut down, annual uranium demand is estimated at 1 to 1.5mlbs. With annual

global uranium demand from nuclear power of ~185mlbspa, the destroyed reactors represent less than 1% of global uranium demand.

Germany has indicated it is temporarily shutting down its older reactors (commissioned pre 1980) to undertake a safety review. This has

resulted in the temporary shut down of 7 of its 17 reactors.

All countries will review their nuclear fleets for safety, and some reactors may be closed (temporarily or possibly permanently) if safety upgrades (‘backfits’) are required. At this stage, apart from Germany,

there is no indication of extended shut down delays. However, it should be noted that about 25% of the world’s reactors are over 30 years old (refer to chart in this report).

In the view of one former U.S. NRC commissioner (Victor Gilinsky), the

lessons of the current crisis will likely indicate that:

(1) older reactors have been built to lower safety standards than required today and not adequately upgraded. (2) the fundamental approach of regulators to nuclear safety will need to be examined with a view to taking a stricter approach to enforcement. In relation to older plants in the U.S., he points out,

that the NRC “must enforce up-to-date safety standards more

forcefully” reflecting his view that nuclear regulators have been

“overly accommodating to the industry they supervise”.

However, while there is potential for some impact to the marginal The uranium market growth of nuclear, the key forces driving the nuclear “renaissance” is expected to be appear to remain intact, viz: buoyed by strong fundamentals mid to • Competing fuel prices increasing (oil, gas, coal). long term. • Carbon dioxide pricing to be introduced. • Growth in world energy demand for electricity, currently expected to double in the next couple decades. • Uncertainty around renewable energy technologies market penetration. • Uncertainty around carbon capture and sequestration costs.

China, India, Russia, and the USA have the largest planned and proposed reactor programs (refer to World Nuclear Power Reactor table in this report) and aspects of these programs are being reviewed in response to the Japanese quake to see what lessons may be applicable.

In the days following the crisis, a number of high profile announcements

from various officials and governments around the world affirmed the

commitment to nuclear energy, setting the tone for the market

rebound.

In particular, comments from the U.S. that it is committed to nuclear Comments of U.S. energy buoyed markets in our view: “Regulators should press ahead commitment to with approving construction licenses for new nuclear power plants nuclear power despite Japan’s nuclear crisis, U.S. Energy Secretary Steven Chu said support market. on March 15. Chu told a US House panel that “the American people

should have full confidence that the United States has rigorous safety

regulations in place to ensure that our nuclear power is generated safely and responsibly.” He added that the administration “is committed to learning from Japan’s experience.” Chu stated that he thought

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construction license applications pending at the US Nuclear Regulatory Commission could proceed.” (Trade Tech).

The key lesson from A former chairman of India’s Atomic Energy Regulatory Board, A. Japan’s nuclear crisis Gopalakrishnan, reported in a major Australian newspaper, and echoing may point to the need Gilinsky’s point 2 above concerning the impact of regulators on the for, and benefit of, safety of the industry, warned that government secrecy, insularity and greater transparency lack of transparency was likely the key issue behind the crisis in Japan. and accountability of He indicated that, in his experience, the Indian nuclear regulator government, and “operates like a lapdog of the Department of Atomic Energy and the stricter oversight of Prime Ministers office.” He points to the need for, and benefit of, government agencies. transparency and accountability of government, and in particular the negative impact of deficiencies in closed oversight/supervisory systems.

Other events of the past 3 months include:

- The UK announced introduction of carbon pricing – the first country to introduce a price floor in relation to power generation. The floor price will be introduced from 1 April 2013 reportedly to drive investment into the “low-carbon power sector”. The commencement price will be £16/t of carbon dioxide (US$26/t)

rising to £30/t of carbon dioxide (US$49) by 2020.

- ARMZ bid for Mantra Resources (ASX:MRU, TSX:MRL) was back on track with a revised transaction announced 22 March - an all- cash offer of A$7.02/share, valuing MRU at A$1.02bn. This compares with the earlier offer from ARMZ (15 December 2010) of A$8.00/share (down 12.25%) previously withdrawn citing the

reactor crisis in Japan. With resource base of 101.8mlbs U O 3 8 (grading 0.042%, MII) the transaction value is ~US$9.80/lb. - Chinese state-owned CGNPC seeking to gain control of Extract Resources (ASX:EXT, TSX:EXT) through 'possible bid' for EXT parent, KAH. Original CGNPC 'possible bid' at A$10.61 share level - we expect a revised offer, and flow through bid for EXT.

A$9.00/share for EXT is equivalent to only ~US$3.80/lb (567mlb

potential resource target). - Aurora Uranium Assets Acquisition: Paladin (ASX, TSX:PDN) acquired wholly owned subsidiary of Fronteer Gold (TSX:FRG) Feb ’11 in a share deal valued at C$280.9m. This represents a resource valuation of US$1.90/lb (137mlbs U O ) for Michelin, Jacques Lake 3 8 and associated 4 other deposits in the CMB, Canada.

- Areva announced delays to Trekkopje (Namibia) ramp-up pushing full production back by at least 12 months to 2013 for the 6mlbpa U3O8 low grade, heap leach project.

- Kazakh uranium production increased to 46mlbs U3O8 in 2010, up from 36mlbs in 2009 (+29% yoy).

RCR March Quarter Featured Company Summary

AUSTRALIA Company Code Comment Australian-American Mining Corp. LimitedAIW Scoping AIW's uranium resource target for 2011 is 28-42mlbs grading 0.05-0.12% U3O8 at three projects in the US (NV,TX,NM), which would be a significant increase from the current 12.8mlbs. The development pipeline also includes drilling at gold and rare metal projects.

Aura Energy Limited AEE Advanced Exploration Aura could add to its +290mlb U3O8 resource inventory in 2011, via expansion at Häggån (Sweden), and an initial resource at Reguibat (Mauritania). The share price gained +50% in the three months to March 11 and could retrace this trend on good news.

Bannerman Resources Limited BMN DFS underway, advanced exploration Recent share price volatility reflects the high U price sensitivity of BMN's 212mlb Etango Heap Leach Project, Namibia. Rebounding sector sentiment and success in finding a development partner will be the key to BMN's rerating from a current ~US$0.50/lb valuation.

Deep Yellow Limited DYL PFS, Advanced Exploration DYL has released interim data on its proposed 2.2mlbpa Omahola Project in Namibia, potential production 2014. Economics look very robust (~US$25/lb U3O8 opex) and are likely to be enhanced by the inclusion of the new Ongolo high grade discovery in the PFS due 2Q11.

Energy and Minerals Australia Limited EMA Development A pre-feasibility study of uranium production at the Ambassador Deposit (Mulga Rock Deposits, WA, total 27.1kt U3O8) is planned for 2011. Likely output of U3O8 is 1200tpa (2.6mlbspa) for capex A$260m, opex US$25/lb. Price target +A$0.31/share.

Energy Resources of Australia Limited ERA Producer Suspensded production at Ranger for 3 months 1H11 and further uncertain production outlook due to high water levels in tailings facility could see further production downgrades in 2011. RCR ERA valuation is A$11.14/share.

Energy Ventures Limited EVE Advanced exploration EVE's current and successful strategy is to identify undervalued brownfields uranium assets in the US. Resource base is now 38Mlbs U3O8 with good potential to increase in the near term. A feasibility study of the Aurora Deposit (OR) is expected in 2011.

Extract Resources Limited EXT Advanced exploration, DFS With a reduced Russian bid for Mantra back on the table, we think that China's CGNPC will follow the same path with Kalahari, EXT's major shareholder, given the huge strategic potential of EXT's Husab resource (potental >600mlb). We don't expect RIO to counter.

Greenland Minerals and Energy Limited GGG Pre-Feasibility Study The Kvanefjeld resource has increased by 35% and now stands at 350mlbs of U3O8, 6.5mt of total REO and 1.4mt of Zn. A definitive feasibility study (DFS) of production, including uranium, should start in 2H11. Share price target is A$1.46.

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AUSTRALIA (cont.) Company Code Comment Northern Minerals Limited NTU Mid Exploration The re-named NTU (formerly Northern Uranium) now has the rights to explore for multiple commodities in the Tanami region (WA-NT), widening its focus to include rare earths and gold. With cash A$7.4m in December 2010, intensive exploration is planned for 2011.

Paladin Energy Limited PDN Producer PDN is expanding production at its African projects to 6mlbs U3O8 expected FY11, up from 3.5mlbs FY10. Potential 13.8mlbspa from 2014. The company has an active acquisition program (recent deals - NGM and Aurora) and exploration (100,000mpa drilling).

Peninsula Energy Limited PEN Prefeasibility Study Lance project (WY, USA; 100% PEN) continues to build momentum and looks well positioned to be part of the next wave of USA ISR projects. Economic prospects bolstered by expanding/upgraded resource base (Feb '11). DFS expected 1H11; production potential 2012.

PepinNini Minerals Limited PNN BFS, Advanced Exploration With the Crocker Well Uranium BFS (60% SinoSteel, 40% PNN, 11.7mlb resource) on hold, PNN's exploration focus is on the project's rare earths potental, as well as advancing a DSO iron ore resource in WA and scoping study on high grade gold mineralisation in N QLD.

Stonehenge Metals Limited SHE Early Exploration The Daejon Project (SHE 100%) is the largest uranium resource in South Korea. With a substantial tenement holding spread across four projects, SHE is looking grow on its near surface 65mlb U3O8 resource (grading 320ppm) during 2011 for a PFS in 2012.

Toro Energy Limited TOE BFS and Exploration The economics of Toro's Wiluna (WA) project (boosting resources to ~37mlb) will be enhanced with the recent purchase of a key tenement. Uranium sector weakness could provide a window of opportunity for acquisitions required to reach a resource target of 220mlb by 2015.

CANADA Company Code Comment CanAlaska Uranium Ltd CVV Mid Exploration CVV has a large strategic land position (1.0m Ha) in the Athabasca Basin, targeting large, high grade unconformity style deposits. Drilling 2010-11: Cree East: 7,650m (18 holes); Fond du Lac: 6,000m; Grease River: 1,200m; West McArthur TBA.

Ur-Energy Inc URE Permitting The Lost Creek ISR Project (WY) has a Draft Source Material Licence from the NRC, one of the final steps in the permit process. Production could be 1mlbs/yr U3O8 , cash cost US$20/lb. Lost Creek resource is 8.4mlbs U3O8 Indicated with additional targets on adjoining property.

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Comparative Charts

Three month share price performance to March 28, 2011

Northern Minerals

Peninsula Minerals

Stonehenge Metals

Greenland Minerals and Energy

Energy Ventures

Extract Resources

Energy and Minerals Australia

Aura Energy

Australian-American Mining Corp.

PepinNini Minerals

Bannerman Resources

Toro Energy

Paladin Energy

Deep Yellow

Energy Resources of Australia

Ur-Energy Inc

CanAlaska Uranium 0 10 20 30 40 50 -50 -40 -30 -20 -10 %

Uranium companies’ share prices remain The uranium sector sell off since March well off 12 month highs following the 11 has seen a partial retracement of nuclear reactor crises in Japan. many of the share price gains made over the prior 3 to 6 months. In comparison to the above share price movements, the Merrill Lynch Uranium Equities Index is down 19% over the past month and down 14% over the past 3 months.

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Explorers’ Development Cycle: Conceptual market capitalisation versus development stage; March Q 2011

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Financial Data

2 Fully M arket Enterprise 3 COMPANY Share Price (LC$/share) Diluted Cap Book Value

Code Status1 Yr End Exchanges 52 week Current Shares Opt+W2 C. Not es2 Shares (undiluted) Cash Debt Value (Undiluted) 28 M arch 2011 Hi Low (m) (m) (m) (m) (LC$m)3 (LC$m)3 (LC$m)3 (LC$m)3 (LC$m)3 AUSTRALIA (A$)

Australian-American M ining Corp. Limited AIW E June ASX OTC FSE AIWO 0.11 0.03 0.05 332 184 0 516 17 5.8 0.0 16 17 Aura Energy Limited AEE E June ASX No 0.56 0.12 0.30 132 7 0 139 40 6.4 0.0 16 40 Bannerman Resources Limit ed BMN E June ASX TSX No 0.91 0.24 0.45 234 18 23 276 105 18.1 10.0 85 116 Deep Yellow Limited DYL E June ASX No 0.39 0.12 0.24 1128 23 5 1155 265 18.0 0.0 136 265 Energy and M inerals Australia Limited EM A E June ASX EM AO 0.30 0.12 0.20 388 67 30 485 78 2.2 0.0 6 78 Energy Resources of Australia Limited ERA P Dec ASX No 19.90 6.76 8.30 191 0 0 191 1583 81.4 0.0 938 1583 Energy Ventures Limited EVE E June ASX TSX No 0.29 0.02 0.17 339 19 0 358 56 3.0 0.0 26 56 Ext ract Resources Limited EXT E June ASX TSX No 10.80 5.96 8.24 251 2 0 252 2067 81.3 0.0 211 2067 Greenland M inerals and Energy Limited GGG E Dec ASX GGGO 1.41 0.31 1.03 318 108 0 425 325 10.9 0.0 62 325 Northern M inerals Limit ed NTU E June ASX NTUOA/B 0.75 0.06 0.51 166 39 0 204 84 6.7 0.0 7 84 Paladin Energy Limited PDN P June ASX TSX NSE No 5.61 3.01 3.76 778 0 121 899 2924 257.2 718.8 1108 3643 Peninsula Energy Limited PEN E June ASX PENOA, PENOC 0.16 0.03 0.10 2086 889 51 3026 200 33.3 0.0 83 200 PepinNini M inerals Limited PNN E June ASX No 0.37 0.13 0.19 90 0 0 90 17 5.4 0.0 26 17 Stonehenge M etals Limited SHE E June ASX No 0.24 0.07 0.14 271 62 60 393 37 3.7 0.0 9 37 Toro Energy Limit ed TOE E June ASX No 0.18 0.06 0.12 965 22 0 987 111 32.1 0.0 112 111

Total: Australia 565.6 728.8 2841 8638 CANADA (C$) CanAlaska Uranium Ltd CVV E April TSX.V OTC FSE No 1.90 0.78 0.98 19 6 0 25 19 3.7 0.0 44 19 Ur-Energy Inc URE I Dec TSX AM EX No 3.35 0.76 1.75 103 6 0 109 181 31.0 0.0 72 181

Total: Canada 3.7 0.0 44 19

Total: (US$)4 581 743 2943 8830

(1) P: Producer; E: Explorer; I: Imminent - includes companies with bankable feasibility studies and likely to be in product ion within 3 years; IHC: Invest ment Holding Company (2) Fully Diluted (shares, options + warrants (opt. + w), convertible notes (Conv. N), other obligat ions) (3) L.C. - Local Currency unit; End of quarter forecast. (4) AUD/ USD: 1.02; CAN/ USD: 1.02 Company Statistics

COMPANY

Code Land Drilling ('000 m) (A) Exploration (L.C.$m)7 (B) Corporate (L.C.$m)7 (A)/(A+B) % 28 M arch 2011 ('000 ha)6 Dec-10 M ar-11 2011 2012 Dec-10 M ar-11 2011 2012 Dec-10 M ar-11 2011 2012 M ar-11 2011 2012 AUSTRALIA (A$)

Australian-American M ining Corp. Limited AIW 500 6.0 2.5 14.9 20.0 0.7 1.0 3.4 4.0 0.7 0.6 2.4 2.4 63 59 63 Aura Energy Limited AEE 1,648 6.0 6.0 20.0 24.0 0.8 0.7 2.6 2.8 0.3 0.3 1.2 1.2 70 68 70 Bannerman Resources Limited BMN 24 12.5 12.5 50.0 50.0 2.7 3.5 12.5 14.0 1.4 1.3 5.6 5.6 73 69 71 Deep Yellow Limited DYL 2,933 48.0 45.0 191.8 180.0 4.5 3.3 16.6 17.6 1.1 1.2 4.3 4.4 73.3 79.3 80.0 Energy and M inerals Australia Limited EM A 340 10.0 10.0 40.0 40.0 0.8 1.0 3.9 6.0 0.4 0.4 1.7 1.6 71.4 70.2 78.9 Energy Resources of Australia Limited ERA 8 5.0 7.5 30.0 40.0 7.0 7.0 28.0 28.0 3.0 3.1 12.3 12.5 69.6 69.5 69.1 Energy Ventures Limited EVE 6,176 2.0 2.5 9.8 20.5 1.0 0.8 4.5 6.6 0.3 0.4 1.5 1.8 63.8 75.1 79.1 Extract Resources Limited EXT 270 80.0 50.0 295.0 320.0 15.5 12.0 58.3 60.0 2.5 3.0 10.0 10.0 80.0 85.4 85.7 Greenland M inerals and Energy Limited GGG 211 5.0 5.0 21.0 20.0 0.5 2.9 8.1 8.0 1.6 3.8 8.3 5.4 43.6 49.1 59.7 Northern M inerals Limited NTU 1,802 3.0 0.0 8.0 20.0 1.2 0.6 3.4 4.0 0.5 0.5 1.8 1.6 55.0 66.0 71.4 Paladin Energy Limited PDN na 25.0 25.0 100.0 100.0 4.0 3.0 18.0 18.0 14.3 10.0 45.0 40.0 23.1 28.6 31.0 Peninsula Energy Limited PEN 272 10.0 10.0 52.9 40.0 2.1 3.0 11.4 8.0 1.3 0.5 3.3 2.0 85.7 77.8 80.0 PepinNini M inerals Limited PNN 1,607 4.3 4.8 23.5 26.0 0.9 0.8 3.7 3.6 0.5 0.2 1.2 1.2 80.0 75.6 75.0 Stonehenge M etals Limited SHE 7 0.9 0.0 0.9 0.0 0.4 0.7 2.5 1.4 0.4 0.3 1.2 1.0 73.7 66.9 58.3 Toro Energy Limited TOE 4,132 7.5 5.5 34.0 23.0 4.3 2.8 16.1 14.0 1.2 0.9 3.6 3.2 76.7 81.8 81.4

Total: Australia 225 186 892 924 46 43 193 196

CANADA (C$) CanAlaska Uranium Ltd CVV 987 6.1 5.0 23.0 16.3 2.5 5.0 13.1 15.0 0.3 0.7 2.0 2.6 88.5 86.9 85.2 Ur-Energy Inc URE 26 20.0 20.0 80.0 80.0 1.1 1.5 6.0 6.0 1.2 1.3 5.0 5.0 55 55 55

Total: Canada 26 25 103 96 4 7 19 21

Total: (US$)4 51 51 216 221

(6) To convert hectares to acres, multiply by 2.47; eg 100 thousand hectares ('000 ha) = 247 thousand acres ('000 ac) (7) L.C. - Local Currency unit

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Reserves, Resources and Historic Mineralisation

Historical/M ineralised 2 2 2 COMPANY Reserves (Equity) Resources (Equity) M aterial/Target (Equity) Total Uranium (U3O8) Total - Gold Production

1 1 3 Code Status Uranium (U3O8) Other Uranium (U3O8) Other Uranium (U3O8) Other (All M ineralisation) Equivalent Commencement 28 M arch 2011 M lb kt M lb kt M lb kt M lb kt (M oz) Year AUSTRALIA

Australian-American M ining Corp. Limited AIW E 0.0 0.0 12.8 5.8 1.0 0.5 13.8 6.3 0.6 na Aura Energy Limited AEE E 0.0 0.0 293.6 133.2 0.0 0.0 293.6 133.2 12.4 na Bannerman Resources Limited BMN E 0.0 0.0 170.1 77.1 0.0 0.0 170.1 77.1 7.2 na Deep Yellow Limited DYL E 0.0 0.0 97.9 44.4 0.0 0.0 97.9 44.4 4.1 na Energy and M inerals Australia Limited EM A E 0.0 0.0 59.6 27.0 0.0 0.0 59.6 27.0 2.5 na Energy Resources of Australia Limited ERA P 214.7 97.4 404.6 183.5 0.0 0.0 619.4 281.0 26.1 1981 Energy Ventures Limited EVE E 0.0 0.0 37.9 17.2 0.0 0.0 37.9 17.2 1.6 na Extract Resources Limited EXT E 0.0 0.0 392.4 178.0 0.0 0.0 392.4 178.0 16.5 na Greenland M inerals and Energy Limited GGG E 0.0 0.0 350.0 158.8 REO 0.0 0.0 350.0 158.8 14.7 na Northern M inerals Limited NTU E 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 na Paladin Energy Limited PDN P 159.2 72.2 500.2 226.9 35.1 15.9 535.2 242.8 22.5 2008 Peninsula Energy Limited PEN E 0.0 0.0 32.9 14.9 6.1 2.8 39.0 17.7 1.6 na PepinNini M inerals Limited PNN E 0.0 0.0 5.0 2.3 0.0 0.0 5.0 2.3 0.2 na Stonehenge M etals Limited 4 SHE E 0.0 0.0 65.0 29.5 28.0 12.7 93.0 42.2 3.9 na Toro Energy Limited TOE E 0.0 0.0 30.6 13.9 0.0 0.0 30.6 13.9 1.3 na

Average: Australia CANADA CanAlaska Uranium Ltd CVV E 0.0 0.0 0.0 0.0 0.5 0.2 0.5 0.2 0.0 na Ur-Energy Inc URE I 0.0 0.0 27.1 12.3 0.0 0.0 27.1 12.3 1.1 na

Total/Total Average 374 170 2480 1125 71 32 2765 1254

(1) P: Producer; E: Explorer; I: Imminent - includes companies with bankable feasibility studies and likely to be in production within 3 years; IHC: Investment Holding Company (2) Reserves, resources and mineralised material published by the relevant company. Tonnes are metric (2204.6 pounds). (4) Range for M ineralised M aterial 17-39mlbs The applicable mineral resource codes are by country: Australian: JORC, Canadian: NI 43-101, South Africa: SAM REC (5) M F Global; (FIP) fund implied price represents the price reversed out of the closed end (3) For uranium only. Assumes a uranium price of US$60.00/lb and a gold price of US$1425/oz physical fund UPC. * M ineral resource estimates are inclusive of the mineral reserve. ^ ERA reserves are in addition to resources. Valuation and Performance Data

Valuation (%) of U3O8 Price (USD) COMPANY EV-Cash EV-Cash EV-Cash Res'v+resources Share Price Performance Current Share Price

5 Code P/Book P/Net Cash /Reserves /Res'v+resources /Total U3O8 Spot Contract FIP (%) % off 12 month 28 M arch 2011 (x) (x) US$/unit US$/unit US$/unit 60.00 73.00 56.00 1 month 3 month 6 month 12 month Hi Lo AUSTRALIA

Australian-American M ining Corp. Limited AIW 1.1 2.9 na 0.9 0.8 1 1 2 -35 -15 19 -25 52 67 Aura Energy Limited AEE 2.4 6.2 na 0.12 0.12 0 0 0 -36 -9 76 80 46 155 Bannerman Resources Limited BMN 1.2 13.1 na 0.58 0.58 1 1 1 -43 -21 36 -8 50 88 Deep Yellow Limited DYL 1.9 14.7 na 2.6 2.6 4 4 5 -23 -25 34 4 39 96 Energy and M inerals Australia Limited EM A 13.8 34.8 na 1.29 1.29 2 2 2 -20 -9 -7 -7 32 74 Energy Resources of Australia Limited ERA 1.7 19.4 7.13 3.79 3.79 6 5 7 -19 -26 -39 -56 58 23 Energy Ventures Limited EVE 2.2 18.9 na 1.4 1.4 2 2 3 -31 0 242 na 43 951 Extract Resources Limited EXT 9.8 25.4 na 5.2 5.2 9 7 9 -11 -8 34 5 24 38 Greenland M inerals and Energy Limited GGG 5.2 29.8 na 0.92 0.92 2 1 2 -21 7 92 116 27 231 Northern M inerals Limited NTU 11.4 12.6 na na na na na na -15 38 50 383 32 819 Paladin Energy Limited PDN 2.6 -6.3 21.7 6.9 6.5 12 9 12 -24 -23 2 -3 33 25 Peninsula Energy Limited PEN 2.4 6.0 na 5.17 4.36 9 7 9 -29 33 174 116 38 243 PepinNini M inerals Limited PNN 0.6 3.1 na 2.27 2.27 4 3 4 -16 -16 -18 12 49 42 Stonehenge M etals Limited 4 SHE 4.1 9.8 na 0.52 0.36 1 1 1 -27 17 73 29 44 108 Toro Energy Limited TOE 1.0 3.5 na 2.6 2.6 4 4 5 -21 -23 10 -12 36 80

Average: Australia 14.41 2.44 2.34 4 3 4 CANADA CanAlaska Uranium Ltd CVV 0.4 5.2 na na 31.99 na na na -36 -36 9 -39 48 26 Ur-Energy Inc URE 2.5 5.8 na 5.65 5.65 9 8 10 -36 -35 79 103 48 130

Average: Canada na 5.65 18.82 9 8 10

Total/Total Average 9.61 2.49 4.14 4 3 4 -25 -8 48 41 39 177

Resource Capital Research

Australian-American Mining Corp Limited Australian-American Mining Corp Ltd AIW.AU A$ 0.05

28 March 2011 AIW's uranium resource target for 2011 is 28-42mlbs grading 0.05- Uranium, Rare Metals, Gold USA (TX,UT,NM,AZ) 0.12% U3O8 at three projects in the US (NV,TX,NM), which would be a Scoping significant increase from the current 12.8mlbs. The development Exchanges: ASX:AIW, OTC:MNOMY pipeline also includes drilling at gold and rare metal projects.

Capital Profile Production and Financial Forecasts

Share price (A$) 0.05 Year End: June Dec-10a Mar-11F 2010a 2011F 2012F 52 week range (A$/share) 0.03 to 0.11 Number of shares (m) 332 Exploration and evaluation (A$m) 0.70 1.00 2.10 3.45 4.00 Options and warrants (m) 184 Corporate (A$m) 0.68 0.60 2 2.42 2.40 Convertible notes (m) 0 Exploration/(Expl.+ Corporate) (%) 51 63 0 59 69 Fully diluted (m) 516 Funding duration at current burn (years) 0 0.8 0.7 Market capitalisation (undiluted) (A$m) 16.6 Shares on issue (pr end) (m shares) 331.7 331.7 162.4 331.7 356.7 Debt (A$m) - Mar 11F 0.0 Drilling - RAB (m) 0 0 0 0 0 Enterprise value (A$m) 10.8 Drilling - Other/Diamond (m) 6,000 2,500 1,500 14,850 20,000 Major shareholders: JP Morgan (12%), Libra Advisors (10%), Land holding ('000 ha) 500 505 400 505 600 Metco (10%) Tenement costs ($k per year) - - - - - Avg monthly volume (m) 101 Capital raisings (A$m) 8.6 0.0 3.8 8.9 3.0 Cash (A$m) - Mar 11F 5.8 Funding from JV partners (A$m) 0 0 0 0 0.0 Price/Cash (x) 2.9 Cash (A$m) 7.1 5.8 0.8 4.8 4.5 Price/Book (x) 1.1 Cash backing (Ac/share) 2.1 1.7 0.5 1.5 1.4 Listed company options: AIWO Net asset backing (Ac/share) 4.7 4.7 4.6 4.8 6.0 * Uranium prospective properties only. Quarters refer to calendar year. Investment Points Company Comment Overview: AIW (or “AusAmerican”) listed on the ASX in September, 2005, as Monaro Mining NL (MRO) and Focused on established (brown fields) uranium projects changed name in April 2010 to reflect its current focus: brown-fields uranium and gold exploration in the in USA (Texas, New Mexico, Nevada), potential for low USA, although some tenements are also prospective for rare metals. capital intensity and low opex (~US$25/lb). Apex-Lowboy Project (Nevada; uranium): 270km E of Reno. Apex includes an historic mine (105klb U3O8 production to 1966, grading 0.25%). Mineralisation is on a sediment-granite contact. There is a JORC resource (March 2011) of 1.45mlbs U3O8 grading 0.07%, including 0.85mlbs @ 0.188%. There is a Scoping Current resource inventory 12.85mlbs U3O8 with a target Study (Jul ’07) for open cut (strip 2:1) and heap leach, recovery 80% in 48hrs (capex then US$24m, opex of 28-42mlbs @ 0.05%-0.12% for 2011 at three projects. US$22/lb). There is exploration potential at Apex-Lowboy on ~12km strike. AIW has exploration targets of 2- 3mlbs U3O8 grading 0.05-0.12% at Apex, and 2mlb-15mlb at 0.05%-0.12% U3O8 at Lowboy. Lowboy drilling (1,300m) is expected in 1H11. A feasibility study could be completed 2011. Production target 2H12. Apex-Lowboy (NV): Apex resource 1.45mlb U3O8 in area Rio Puerco Project (New Mexico; uranium): Targeting roll front uranium deposits in Grants Mineral Belt, of historic production. Combined exploration target to which has historic production of ~340mlb U3O8. Regional deposits include Roca Honda (33mlb U3O8, Strathmore Minerals, mine/mill permitting at advanced stage). There is a JORC resource at Rio Puerco of 18mlb U3O8. Further drilling expected in 1H11. 11.4mlb U3O8 grading 0.09% (cut-off 0.03%). This includes 5.8mlbs @ 0.27% (cut-off 0.1%). Infrastructure includes a mine with 260m concrete shaft and drives. The claim block hosting the resource is 7% of the 2 Rio Puerco (NM): located in Grants Mineral Belt. JORC 48km project. Prospective strike is 15km. There is an Exploration Target for 2011 of 20mlbs U3O8 grading 0.05% to 0.20%. Drilling expected in March 2011 (5000m). AIW could co-operate with other companies, e.g. resource 11.4mlbs U3O8 grading 0.09%. Exploration to toll treat at future nearby operations (Strathmore plant from 2H12). The deposit could be ISR amenable. upside on 15km strike, target 20mlbs. Drilling 1Q11. Lone Star Project (Texas, uranium): In the Texas Uranium Belt, acquired 1Q10. Resource target is 4-6mlbs grading 0.12%-0.15% U3O8, after Union Carbide in the 1960s. Mineralisation is shallow (10ft-150ft), sediment-hosted and possibly ISR amenable. Texas is a favourable jurisdiction, with uranium mills within Lone Star (TX): new acquisition with historic resource, 100km. Drilling could start in March-April 2011 on the Baumbach Area, which has an individual target of 3- 4mlbs U O grading 0.07%-0.12%.. A Lone Star resource is expected 2011. target 3-4mlbs U3O8 with potential for ISR. Drilling 1H11. 3 8 Apache Basin JV (Arizona; uranium): Target is unconformity-hosted uranium (e.g. Athabasca Basin). Targets are below known fracture-controlled high grade (0.18-0.19% U3O8) uranium mineralisation. Rare and specialty metals focus, with recent pegmatite Rare and Specialty Metal Pegmatites (Arizona): AIW has claims over pegmatites in the White Picacho acquisitions in Arizona; drilling expected in 2011. area, prospective for lithium, tantalum and REE. Initial sampling has been encouraging, e.g. Li2O to 4.5% and Ta to 0.2%-0.3%. Spending A$2m on trenching program, to be followed by drilling, potentially in 2Q11. Gold projects: These include the recently acquired San Marcos (AZ, 10.5km2 including historic workings on AIW - Australian-American Mining Corporation Ltd 750m open strike to +100m depth), where AIW chip and channel samples run to 98.2g/t Au, with 28% of 86 samples showing +1g/t Au. Target detachment fault hosted (Copperstone-type) mineralisation. Drilling here 0.09 and at the geologically similar Bernard (AZ) could proceed in 2Q11. Corporate: Raised $8.4m before costs through placement and SPP in Nov-Dec ‘10, of which 40% went to 0.08 North American investors. Springtree convertible note agreement has been terminated and all debt repaid at 0.07 end December 2010. Looking to list on the TSX in April 2011. The Board has been partly restructured to include directors with further experience in project development (Jackson) and uranium (Falconer). 0.06 Investment Comment: AIW’s strategy of acquiring advanced exploration projects could result in near to medium term, low cost uranium production. Progress in in the past 12 months has been to schedule, 0.05 providing confidence that total uranium resources could reach the 2011 target of 28-42mlbs U3O8. Share 0.04 price drivers should continue to be resource upgrades and exploration results (uranium, gold, rare metals).

Share($/Share) Price 0.03 Reserves and Resources/Mineralised Material 0.02 Code for reporting mineral resources - Australian: (JORC)

Uranium Classification/ Project Ore U3O8 Cut Off U3O8 U3O8 U3O8 Eqty 0.01 U3O8 Geology Equity Mt % ppm Kt Mlb Mlb 0.00 Reserves 0.0 0.0 0.0 Resources Rio Puerco Inferred 100% 6.0 0.09 300 5.2 11.4 11.4 Oct-10 Jun-10 Jan-11 Feb-11 Mar-11 Mar-10 Aug-10 Sep-10 Nov-10 May-10 Apex Inferred 100% 1.0 0.07 100 0.7 1.5 1.5 Source: Bloomberg Total 7.0 5.9 12.8 12.8 Mineralised Material (est., non compliant w ith JORC) Apex-Lowboy 100% 0.45 1.0 1.0

Contacts Directors Key Projects

Mr Jim Malone J Malone (Exec Chair) Ownership/ JV Target Process Project Executive Chairman G Barns (Non Exec) Project Option Metal Partner Type Route Status Location Tel: +61 (0) 8 9325 5568 D Falconer (Non Exec) Rio Puerco 100%U none Sandstone Toll Adv Expl USA (NM) West Perth, WA, Australia D Geldard (CEO, Exec) Apex-Lowboy 100% U noneGranite-sed na Scoping USA (NV) www.ausamerican.com.au S Jackson (Non Exec) Lone Star 90% U Lone Star LLC Sandstone na Adv Expl USA (TX) Apache Basin 100% U na Unconformity na Mid Expl USA (AZ) White Picacho 100% Li,REE na Pegmatite na Early Expl USA (AZ) Analyst: Dr Trent Allen Bernard 100% Au,U,Mn na Structural na Early Expl USA (AZ) [email protected] San Marcos 100% Au,Ag na Structural na Early Expl USA (AZ)

Resource Capital Research

AIW project locations: Apex-Lowboy and Rio Puerco are 100% owned by AIW, and Lone Star 90%. All are advanced exploration projects that include historic uranium mines and/or JORC-qualifying or historic resources. Drilling is under way or planned for each. The Arizona rare metal project is a major new focus.

Rio Puerco claims map: the project lies at the eastern end of the well known Grants Mineral Belt, which has pre-1986 production of >320mlbs U3O8. The region is host to a number of large uranium deposits that are in the advanced stages of mine permitting. Rio Puerco has resource of 11.4mlbs U3O8 (Oct ’09). Drilling 1H11.

Resource Capital Research

Bannerman Resources Ltd Bannerman Resources Limited BMN.AU A$ 0.45

28 March 2011 Recent share price volatility reflects the high U price sensitivity of Uranium BMN's 212mlb Etango Heap Leach Project, Namibia. Rebounding Namibia, Botswana DFS underway, advanced exploration sector sentiment and finding a development partner will be key to Exchanges: ASX:BMN, TSX:BAN BMN's rerating from a current ~US$0.50/lb valuation.

Capital Profile Production and Financial Forecasts

Share price (A$) 0.45 YEAR END: June Dec-10a Mar-11F 2010a 2011F 2012F 52 week range (A$/share) 0.24 to 0.91 Number of shares (m) 234 Exploration and evaluation (A$m) 2.70 3.50 14.79 12.52 14.00 Options and warrants (m) 18 Corporate (A$m) 1.37 1.30 5.77 5.60 5.60 Convertible Notes plus other issues (m)* 20 Exploration/(Expl.+ Corporate) (%) 66 73 72 76 71 Fully diluted (m) 276 Funding duration at current burn (years) 0.8 0.7 0.7 Market capitalisation (undiluted) (A$m) 105.5 Shares on issue (pr end) (m shares) 234.4 234.4 201.7 234.4 301.1 Debt (A$m) - Mar 11F 10.0 Drilling - RC (m) 0 0 0 0 0 Enterprise value (A$m) 115.5 Drilling - Other/Diamond (m) 12,500 12,500 87,500 50,000 50,000 Major shareholders: Widerange Corp. (6.5%), Resource Capital Funds (5.9%)Land holding ('000 ha)* 24 24 24 24 24 HSBC Noms (6.1%), JP Morgan Noms (5.3%), Regent Pacific Group (4.6%). Tenement costs ($k per year) - - - - - Avg monthly volume (m) 56 Capital raisings (A$m) 15.55 0.00 0.00 15.55 20.00 Cash (A$m) - Mar 11F 18.1 Funding from JV partners (A$m) 0 0 0 0 0 Price/Cash (x) 5.8 Cash (A$m) 22.7 18.1 16.6 13.2 14.4 Price/Book (x) 1.2 Cash backing (Ac/share) 9.7 7.7 8.2 6.2 4.8 Company options: No Net asset backing (Ac/share) 36.6 36.1 36.9 39.1 36.1 * Assumes conversion @ A$0.612, plus 4m shares issued on granting of ML *Uranium prospective tenements only, both held and under application. Investment Points Company Comment

100% uranium focus, concentrating on pro-uranium Overview: Bannerman Resources Limited (ASX.BMN, listed April 2005) is focused on uranium projects in Africa - Namibia and Botswana. The flagship Namibian project, Etango, has advanced to a world jurisdictions in Africa (Namibia, Botswana). scale 212mlb contained U3O8 resource, and a definitive feasibility study (DFS) is underway. Etango Resource (80%, Namibia): An alaskite-hosted uranium deposit in “Alaskite Alley”, lower Etango (Namibia, 80% BMN) is a world scale, low grade, but similar to, the world-class Rössing uranium mine of Rio Tinto, which lies 30km NE, and the higher grade Husab discovery (Extract Resources). Mineralisation is primary (uraninite, pitchblende). In grade uranium deposit: resource recently increased 4Q10, BMN announced an updated Etango resource of 212.6mlb at a grade of 193ppm. Importantly, by 31% to 212mlbs U3O8 grading 193ppm. 70% (148.7mlb) of the resource is now in the Measured and Indicated categories grading 201ppm. About 70% of the resource is within 200m of surface and is open at depth and along strike. Etango FS Update: DFS is underway. The project update (December 1, 2010) confirmed that this is a Etango resource de-risked - 148.7mlb is Measured potential large scale heap leach project, indicating 15mtpa ore treatment and average 5.5mlbspa U3O8 & Indicated at 201ppm, conservative parameters. over a +20 year mine life. Key parameters are shown in the table on the page opposite. Next Steps & Development Timeline: Initial environmental clearances have been received; a revised EIS (enlarged resource) will be lodged 2Q11. After further optimisation work aimed at cost reduction DFS is advanced - targeting heap leach 5-7mlbpa and improved recoveries, the DFS could be completed in 4Q11 or 1Q12. BMN’s strategy is to seek a production, min. 20 year mine life, capex US$638m, project development partner to facilitate debt and equity financing. A number of interested parties are currently conducting due diligence. Subject to financing, project commissioning is possible in 2014. opex US$42/lb, further optimisation on-going. Regional Exploration Potential: Only ~50km2 of total 500km2 highly prospective regional ground around Etango has been addressed to date. BMN’s recent regional exploration, has produced BMN seeking development partner, for DFS promising initial shallow intercepts at Cheetah (e.g. 10m @ 339ppm, 8m @240ppm), along strike and completion 1Q12, possible production 2014. to the north of Etango. Drilling is underway at Hyena, immediately south of Etango. Investment Comment: The Etango project is undoubtedly world scale, but relatively low grades and relatively high costs (US$42/lb cash costs) make it highly sensitive to the uranium price. Hence recent Excellent exploration potential for 'look-alike' dramatic share price movements post the Japanese earthquake. At US$60/lb the project looks 2 2 marginal, but with spot prices soaring above US$70/lb in late 2010, BMN was starting to attract strong discoveries - only 50km of total 500km explored to investor interest. With efforts to attract a strategic development partner likely to bear fruit in such a date, plus Swakop River and Botswana ground. positive environment, BMN shares performed strongly, more than doubling from around A$0.34/share in October 2010 to >A$0.80/share in February 2011. The recent dramatic events in Japan resulted in BMN’s share price falling significantly (as for all junior uranium explorers). However, with improved Etango's size will be a big plus in attracting a 'big sentiment, BMN’s share price has since recovered strongly. BMN’s 2011 focus will continue to be on brother' looking for long term supply security. opex reduction and increased recovery initiatives to improve project viability, while continuing its hunt for a ‘big brother’ partner seeking security of supply from a large scale project in a stable uranium BMN - Bannerman Resources Limited friendly country such as Namibia. Meanwhile, BMN’s exploration programs could yield higher grade S ore. If the uranium market continues to stabilise, and BMN achieves success in its DFS, exploration, 1.00 and in particular, its hunt for a strategic development partner, we see potential for share price upside 0.90 towards the valuation multiples seen in recent uranium M&A activity. After all, buying BMN at current 0.80 levels is buying a large uranium resource at a level of around ~US$0.50/lb. 0.70 0.60 Reserves and Resources/Mineralised Material Code for reporting mineral resources - Australian: (JORC and Canada NI 43-101) 0.50 Uranium ClassificationProject Ore U3O8 Cut Off U3O8 U3O8 U3O8 Eqty 0.40 U3O8 Equity Mt % ppm Kt Mlb Mlb 0.30 Reserves 0.0 0.0 0.0 SharePrice($/Share) 0.20 Resources 0.10 Etango Measured + Ind 80% 336.2 0.0201 100 67.6 148.7 119.0 0.00 Etango Inferred 80% 164.6 0.0176 100 29.0 63.9 51.1 Total 500.8 0.0193 100 96.5 212.6 170.1 Jul-10 Oct-10 Jun-10 Jan-11 Mar-10 Feb-11 Mar-11 Aug-10 Sep-10 Nov-10 May-10 Mineralised Material (est., non compliant w ith JORC) 0.0 0.0 0.0 Source: Bloomberg

Contacts Directors Key Projects

Mr Len Jubber D Smith (Chairman) Ownership/ JV Target Process Project (CEO & MD) L Jubber (CEO & MD) Project Option Metal Partner Type Route Status Location Tel: 61 (0) 8 9381 1436 R. Beevor (Non Exec) Etango 80% U none Alaskite Acid leach DFS Namibia Subiaco, WA, Australia C. Jones (Non Exec) Swakop River 80% U none Calcrete na Early Expl. Namibia www.bannermanresources.com J McClements (Non Exec) Dukwe/Serule 100% U none Calcrete na Early Expl. Botswana G Stanley (Non Exec) Analyst: Dr Tony Parry D Tucker (Non Exec) tony [email protected] M Hills (Alt. Non Exec)

Resource Capital Research

BANNERMAN RESOURCES VALUATION

Base Valuation Sensitivity Uranium Implied Case (Low) (High) Equity Resource Valuation A$m * A$m A$m ** Projects (mlbs) US$/lb + Etango (NPV @ 10% DR) ^ 80% 212.6 0.20 35 15 118 + Exploration - Namibia + Botswana 25 10 40 Sub Total 60 25 158

+ Cash (31 Mar 2011F) 18.1 18.1 18.1 + Tax Losses 21.4 21.4 21.4 - Debt 10.0 10.0 10.0 - Corporate 20.0 20.0 20.0 Sub Total 9.5 9.5 9.5

BMN NET ASSET VALUE 70 35 167

Capital Structure Shares 234.4 234.4 234.4 Fully Diluted Shares 252.9 252.9 252.9

BMN NET ASSET VALUE PER SHARE :A$/share 0.30 0.15 0.71 BMN NET ASSET VALUE DILUTED ^^ :A$/share fully diluted na na na

* Base Case valuation assumes US$60/lb long term uranium price, long term A$/US$ = 0.82, 10% cost reduction from PFS parameters. ** High valuation assumes US$70/lb long term uranium price, other parameters as per target valuation. ^ NB: Etango Project NPV risk-discounted by 30% to allow for PFS stage data - pre DFS. ^^ Fully diluted NAV not applicable as options are well out of money (ave. A$2.40 ex price) and we have treated con notes as debt.

ETANGO URANIUM PROJECT NPV - SENSITIVITY TO URANIUM PRICE AND OPERATING COSTS

Base Case Costs -5% Costs -10% Costs -15%

800

Base case assumes 600 US$42/lb LOM Opex.

400

200

0 40 50 60 70 80 -200

Project NPV (US$m @10% DR) @10% (US$m NPV Project -400

-600 Long Term Uranium Price (US$/lb)

ETANGO URANIUM PROJECT KEY ASSUMPTIONS - FEASIBILITY STUDY UPDATE DEC '10 (100% of Project) *

RESOURCE ESTIMATES Mineable Resources Uranium Mt % Mlbs

Current Measured & Indicated (only) 336 0.0201 149 Total 336 0.0201 149

Total LOM tonnage mined: 292mt @ 0.0195% (ave) = 87% of M&I resource

MINING METHOD Open pit (to max. 400m depth). Drill and blast LOM strip ratio: 3.5:1 (3.5:1 if in-pit inferred resources included) PROCESS METHOD Three stage crushing Sulphuric acid heap leach - low acid consumption, dynamic on-off leach pads Solvent extraction, precipitation, calcination. PRODUCTION RATE :mtpa 15.0 Ore treatment

:mlbspa 5.0-7.0 U3O8 output (average 5.5mlbspa) CAPITAL COSTS (not incl. mining fleet) :US$ 638 Plus ave. sustaining capex of US$19mpa (US$1.26/t). RECOVERY - URANIUM :% 85 Conservative based on FS testwork (~90% possible) ACID CONSUMPTION :kg/tonne 10-15 OPERATING COSTS :US$/t 15.46 LOM ave :US$/lb 42.00 LOM ave :US$/lb 51.60 Including capex and sustaining capex (LOM US$1.02bn) TAX :% 37.5 ROYALTY (Government) :% 3.0 MINE LIFE :Years 20+ TARGET COMMISSION DATE : 2H14

* These figures and flowsheet assumptions are preliminary in nature (based on BMN's Dec 2010 feasibility study update). Considerable refinement may result from the DFS underway, expected to be completed in 4Q11 or 1Q12.

Resource Capital Research

Deep Yellow Limited Deep Yellow Limited DYL.AU A$ 0.230

28 March 2011 DYL has released interim data on its proposed 2.2mlbpa Omahola Uranium Project in Namibia, potential production 2014. Economics look Namibia, Australia (QLD,NT) PFS, Advanced Exploration robust (~US$25/lb U3O8 opex) and should be enhanced by inclusion Exchanges: ASX:DYL, NSX:DYL of the new Ongolo high grade discovery in the PFS due 2Q11.

Capital Profile Production and Financial Forecasts

Share price (A$) 0.23 YEAR END: June Dec-10a Mar-11F 2010a 2011F 2012F 52 week range (A$/share) 0.12 to 0.39 Number of shares (m) 1128 Exploration and evaluation (A$m) 4.55 3.30 15.85 16.60 17.60 Options and warrants (m) 23.1 Corporate (A$m) 1.12 1.20 3.03 4.34 4.40 Convertible notes (m) 5 Exploration/(Expl.+ Corporate) (%) 80 73 84 87 96 Fully diluted (m) 1155 Funding duration at current burn (years) 0.8 0.6 -0.4 Market capitalisation (undiluted) (A$m) 259 Shares on issue (pr end) (m shares) 1127 1128 1126 1128 1128 Debt (A$m) - Mar 11F 0.0 Drilling - RAB (m) 5,000 5,000 20,000 20,000 20,000 Enterprise value (A$m) 259.3 Drilling - RC/Diamond (m) 42,974 40,000 164,828 171,785 160,000 Major shareholders: Paladin (19.96%), Robert Healy (6.46%) Land holding ('000 ha) 2,933 2,933 3,546 2,933 2,933 Leon Pretorius (5.89%), G Sw aby (3.61%). Tenement costs ($k per year) - - - - - Avg monthly volume (m) 79 Capital raisings (A$m) 0.6 0.0 1.3 0.2 0.0 Cash (A$m) - Mar 11F 18.0 Funding from JV partners (A$m) 0.0 0.0 0.0 0.0 0.0 Price/Cash (x) 14.4 Cash (A$m) 20.4 18.0 29.6 12.9 -8.6 Price/Book (x) 1.9 Cash backing (Ac/share) 1.8 1.6 2.6 1.3 -0.9 Listed company options: No Net asset backing (Ac/share) 12.3 12.1 13.0 12.8 11.7 Quarters refer to calendar year end. Investment Points Company Comment Overview: Deep Yellow is a uranium exploration and development company currently focused on DYL's focus is uranium exploration and advanced advanced resource development projects in Namibia and Australia (QLD). 2 project development - budget ~A$18mpa. Namibia: DYL holds 100% of 2,875km ~15km SW of PDN’s Langer Heinrich mine, plus JV tenements with Nova Energy (subsidiary of Toro). The Tumas-Tubas palaeochannel system is 80km length. DYL has drilled >500,000m in Namibia since 2007, and only addressed a fraction of the potential. Drilling ~10,000m-15,000m per month in Namibia, plus Omahola Project PFS: DYL has combined the shallow (~20m deep) INCA uraniferous oxide project and Australian (QLD) exploration. Cash ~A$18m. the nearby very shallow (surface to ~13m deep) Tubas Red Sands (“TRS”) into one production-focused project - the “Omahola Project”. A PFS is currently underway (SNC Lavelin). Flowsheet is based on Namibian Projects: current JORC resource is 87mlb, conventional acid leach and SX/precip. DYL has released interim PFS results based on production of 2.2mlbpa over a 12 year mine life. Main feed will be INCA (80%), balance lower grade TRS low cost free- includes Omahola (18.3mlb), Tumas-Tubas (50.8mlb) digging sand (beneficiation to >500ppm). Capex estimate US$324-336m. Importantly, the first pass estimate of opex is coming in at around US$25/lb, which is encouragingly low and reflects the low mining Development focus is now on Omahola Project targeting costs. Opex may well reduce further with the inclusion of higher grade recently discovered Olongo alaskite (see below). The finalisation of the PFS has been extended to 2Q11 in order to incorporate Ongolo as a 2.2mlbpa with U3O8 acid leach treatment plant, PFS potential ore source. A DFS is likely in early 2012 with a project start-up possible in 2013/2014, subject to underway, production target 2014. PFS/DFS outcomes and permitting. Recently DYL has confirmed high grade mineralisation (11m @ 1,064ppm) in scout drilling of the first of ten new INCA type targets south of the current INCA deposit. This could be very significant to boosting Omahola economics. Omahola interim PFS data: capex ~US$336m, opex Ongolo Alaskite Discovery: higher grade alaskite similar to Extract’s Husab Project (2km strike) ~US$25/lb, 12 year mine life discovered at north of Tubas tenement. Follow up drilling suggests consistent grades >400ppm over good widths (>10m) and ~600m zone width. This is a major potential value-adding development, since this higher Project milestones: Omahola PFS 2Q11, DFS ~1Q12. grade alaskite could possibly be fed to an Omahola mill. No problems treating Ongolo ore in the Omahola acid leach plant are expected. DYL has recently had five RC and one DDH rig on this project. The initial JORC resource estimate is imminent. Recent discovery of high grade alaskite at Ongolo and Shiyela Iron Project: Large scale (potential strike 8km) high grade magnetite discovery (two deposits so potential high grade INCA extensions should enhance far), ~4km SW of Tubas and ~35km form Walvis Bay Port. After >25,000m of drilling completed, initial grade Omahola project economics. estimates and JORC resource are expected in 2Q11. Preliminary scoping study is now underway. Mount Isa Project (QLD, Australia): Now the main focus of Australian exploration (1,688 km2). DYL is targeting an initial 11-18mlb resource, and sees potential for 26-33mlb in the med-long term. As uranium sector sentiment recovers, we expect solid Other Australian Projects: Napperby (NT): Target 13mlb resource, current 7.4mlb. Grass Roots gains in DYL share price leading up to the 2Q11 PFS. Exploration: DYL holds interests in >28,000 km2 tenements in NT, QLD. Currently low priority. Investment Comment: DYL’s previous exploration focus on achieving a ~100mlb resource in Namibia, has progressed to a predominant focus on becoming a significant Namibian uranium producer in 2014. The DYL - Deep Yellow Limited Omahola project, which could be in production within three years, demonstrates robust pre-PFS economics, 0.40 (the US$/lb opex is similar to that indicated for Extract’s massive 480ppm 15mlbpa Husab Project). Economics should be further enhanced by the exciting new Ongolo alaskite discovery. The Shiyela 0.35 magnetite project is interesting but not likely to excite uranium buffs. If, as we expect, some confidence re- builds in the uranium sector, and with the Omahola PFS due in 2Q11, we expect a solid re-bound from DYL 0.30 shares as a potential low cost Namibian producer with a big exploration pipeline.

0.25 Reserves and Resources/Mineralised Material Code for reporting mineral resources - Australian: (JORC) 0.20 Uranium (U3O8) Classification/ Project Ore Grade Cut Off Eqty 0.15 Geology Equity Mt ppm ppm Kt Mlb Mlb Reserves 0.0 0.0 0.0 Share($/Share) Price 0.10 Resources Omaholo - Namibia * Meas + Ind + Inf 100% 28.2 288 100/250 8.29 18.3 18.3 0.05 Tubas-Tumas Palaeoch.**Ind + Inferred ** 100% 92.1 250 100/200 23.03 50.8 50.8 Ausinanis Ind + Inferred 100% 34.6 237 150 8.20 18.0 18.0 0.00 Napperby Inferred 100% 9.3 359 200 3.35 7.4 7.4 Mount Isa Ind + Inferred 100% 3.6 428 300 1.54 3.4 3.4 Jul-10 Oct-10 Jun-10 Feb-11 Mar-11 Mar-10 Aug-10 Sep-10 Nov-10 Dec-10 May-10 Total Resources 167.8 249 44.42 97.9 97.9 Source: Bloomberg Mineralised Material (est., non compliant w ith JORC) 0.00 .0 0.0 * ~73% (13.4mlb) of Omahola resource is higher grade Inca resource, grades ave. 405ppm. ** A higher grade Tubas-Tumas resource of 34.8mlb grading 424ppm has been defined Contacts Directors Key Projects

Mr Greg Cochran M Greene (Non Exec Ch.) Ownership/ JV Target Process Project (Managing Director) G Cochran (MD) Project Option Metal Partner Type Route Status Location Deep Yellow Limited M Kavanagh (Exec) Namibia 100% uranium na hardrock/calcrete acid leach Adv Expl PFS Namibia Tel: 61 (0) 8 9286 6999 R Brunovs (Non Exec) Nova Energy JV 65% uranium TOE hardrock/calcrete na Mid Expl. Namibia Subiaco, Australia G Swaby (Non Exec) Queens Gift 100% uranium na m'somatic/brec. na Mid Expl. Aus (QLD) www.deepyellow.com.au Isa West JV 100% uranium uranium Xstrata metasomatic na Mid Expl Aus (QLD) Tanami-Arunta 100% uranium na calcrete/roll front na Early Expl Aus (NT) Analyst: Dr Tony Parry Napperby 100% uranium na calcrete alk. Leach Sc. Study Aus (NT) [email protected] Shiyela 100% iron na magnetite na Early Expl Namibia

Resource Capital Research

In less than five years DYL’s intensive uranium exploration programs, mainly in Namibia, have grown the resource base rapidly from zero to 98mlb contained U308. Focus is now shifting towards uranium production from the Omahola Project, supported by a strong exploration pipeline.

Source : Deep Yellow

DYL’s Namibian exploration and development has focused mainly on EPL 3496 which hosts the INCA and Tubas Red Sands (TRS) deposits that make up the Omahola project, the new high grade Olongo Alaskite discovery in the north, and the Shiyela Iron magnetite deposit.

Source : Deep Yellow

Resource Capital Research

Energy and Minerals Australia Limited Energy and Minerals Australia Limited EMA.AU A$ 0.20

28 March 2011 A pre-feasibility study of uranium production at the Ambassador Uranium, Base Metals, Rare Metals Deposit (Mulga Rock Deposits, WA, total 27.1kt U O ) is planned for Australia (WA) 3 8 Development 2011. Likely output of U3O8 is 1200tpa (2.6mlbspa) for capex Exchanges: ASX:EMA A$260m, opex US$25/lb. Price target +A$0.31/share.

Capital Profile Production and Financial Forecasts

Share price (A$) 0.20 YEAR END: June Dec-10a Mar-11F 2010a 2011F 2012F 52 week range (A$/share) 0.115 to 0.3 Number of shares (m) 388 Exploration and evaluation (A$m) 0.80 1.00 5.82 3.89 6.00 Options and warrants (m) 67 Corporate (A$m) 0.37 0.40 1.58 1.66 1.60 Performance Shares (m) 30 Exploration/(Expl.+ Corporate) (%) 68 71 79 70 79 Fully diluted (m) 485 Funding duration at current burn (years) 3.1 1.6 0.8 0.2 1.7 Market capitalisation (undiluted) (A$m) 77.6 Shares on issue (pr end) (m shares) 387.9 387.9 387.9 387.9 445.8 Debt (A$m) - Mar 11F 0.0 Drilling - RAB (m) 5,000 5,000 42,367 20,000 20,000 Enterprise value (A$m) 77.6 Drilling - Other/Diamond (m) 5,000 5,000 15,751 20,000 20,000 Major shareholders: Land holding ('000 ha)* 340 340 340 340 340 M. Few ster (74.0%), Acorn Capital (7.6%) Tenement costs ($k per year) - - - - - Avg monthly volume (m) 5 Capital raisings (A$m) 0.00 0.00 11.55 0.00 19.10 Cash (A$m) - Mar 11F 2.2 Funding from JV partners (A$m) 0.0 0.0 0.0 0.0 0.0 Price/Cash (x) 34.8 Cash (A$m) 3.6 2.2 5.9 0.9 13.0 Price/Book (x) 13.8 Cash backing (Ac/share) 0.9 0.6 1.5 0.2 2.9 Listed company options: EMAO Net asset backing (Ac/share) 1.5 1.5 1.6 1.4 5.3 * Uranium prospective properties only. Quarters refer to calendar year. Investment Points Company Comment Overview: Energy and Minerals Australia listed on the ASX in May ’08. It holds 3,403km2 in WA, Mulga Rock Deposits (MRD): first revenue stream prospective for uranium, precious and base metals, and lignite. uranium, with potential from base metals (Ni, Co) and Mulga Rock Deposits (WA): 240km NE of Kalgoorlie. Mulga Rock was discovered in 1980 by PNC rare metals (Sc, REE). Exploration (Japan) and developed as a uranium deposit – it had an historic, non JORC resource of 46,500t U3O8 at grade 0.11% U3O8. It is comprised of three known deposits – Ambassador, Emperor and Shogun. Mineralisation evolved via the deposition of metals from enriched groundwater. Host rocks are JORC inferred resource of U3O8 at MRD is 59.6mlbs sandstones and lignite below a clay cap, at shallow depths (40m to 70m). Aside from uranium, commodities grading 0.047%-0.059%, in upper and lower lignite, and include base metals (nickel, cobalt), scandium and rare earth elements. Current JORC Inferred resource sandstone (June 2010). (Jun ’10) is 27.1kt (59.6mlbs) U3O8 grading an average 0.049% at cut-off 100ppm (sandstone) to 200ppm (lignite). The resource is based on recent and historic assays, and uranium-equivalent grades from EMA radiometric data. An upgrade to Indicated resource classification is currently hampered by remaining Sandstone-hosted uranium could be amenable to uncertainty with regard to sample integrity during previous drilling (Coffey Mining June 2010). Three relatively low cost ISR (In Situ Recovery). sandstone prospects within 10km of Ambassador have a combined Exploration Target of 7.6kt to 13kt U3O8 at grades of 240 to 650ppm eU3O8. Targets for other elements at Ambassador are 33.8-39.5kt Ni (0.24-0.28%); 15.2-17.9kt Co (0.11-0.13%); 1-1.2kt Sc2O3 (150-180ppm); and 14.3-21.2kt REO (0.22- Scoping Study (Nov '10): 12kt U3O8 from 2014-2025, 0.33%); these targets could be tested by further drilling, including diamond holes to twin existing air core split 50/50 between ISR and lignite open cut. Capex holes and determine adjustment factors for potential grade loss during air core drilling. Other WA tenements: Narnoo (surrounding the MRD), Minigwal and Gunbarrel, are prospective for MRD- A$260m, opex US$23/lb U3O8 with byproduct credits. style, calcrete and palaeochannel uranium deposits. Initial drilling could be completed by mid 2011. Scoping Study (Nov ’10): Considers production at Ambassador of 12kt U3O8 between 2014 and 2025, i.e. Adjacent grassroots projects are prospective for MRD- 1.2kt or 2.6mlbs per annum at full production. Assumption is a 50/50 split (600tpa each) between open cut style, sandstone hosted and paleochannel uranium. mining of lignite and in situ recovery (ISR) of the sandstone-hosted uranium. Years 1 & 2 would be ISR only; ISR continues to Year 11 and open pit to Year 13. Processing is solvent extraction (SX) for ISR, and acid leach and RIP (resin in pulp) for lignite; uranium recoveries are 82% RIP and 65% ISR. Combined Conservative RCR valuation: NAV A$136m or capex is A$260m (or US$95 per lb of U3O8 nameplate capacity). Total opex is A$1.3bn, or A$0.7bn net of A$0.31/share (current A$0.20) with upside from de- byproducts such as base and rare metals (e.g. life of mine ~8kt Ni and ~4kt Co) – this means US$23/lb risking project during PFS from 1Q11. U3O8. A Pre-Feasibility Study of the MRD is expected to start in 1Q11 and include a field leach trial to test ISR potential, as well as advanced metallurgical and mineralogical studies of lignite-hosted mineralisation. Litigation: Yarri Mining disputes ownership of the MRD. It has applied to the High Court for permission to appeal the dismissal of its appeal to the Supreme Court of WA. The application will be heard 8 April 2011. EMA - Energy and Minerals Australia Limited Investment Comment: Based on the Scoping Study a preliminary DCF valuation is possible, of the Ambassador Deposit resource with upside from the other MRD deposits and uranium Exploration Target. 0.30 At a long-term U3O8 price of US$55/lb (current US$60/lb) and allowing for risk, we estimate NAV10 is A$130m or A$0.31/share fully diluted. There is potential to re-approach this share price by upgrading the 0.25 resource and de-risking the process route (improving recoveries, field leach trial) during the PFS in 2011. A general recovery of uranium stocks could occur, depending on how and when the Japan crisis is resolved. 0.20 Reserves and Resources/Mineralised Material

0.15 Code for reporting mineral resources - Australian: (JORC) Uranium Classification Project Ore U3O8 Cut Off U3O8 U3O8 U3O8 Eqty U O Equity Mt % ppm Kt Mlb Mlb 0.10 3 8 Reserves 0.0 0.0 0.0 SharePrice($/Share) Resources 0.05 Mulga Rock Deposits Ambassador* Inferred 100% 27.6 0.047 100-200 12.9 28.4 28.4 0.00 Emperor Inferred 100% 24.1 0.050 200 12.0 26.4 26.4 Shogun Inferred 100% 3.7 0.059 200 2.2 4.8 4.8 Jul-10 Oct-10 Jun-10 Jan-11 Mar-10 Mar-11 Aug-10 Nov-10 Dec-10 May-10 Total 55.4 27.1 59.6 59.6 Source: Bloomberg Mineralised Material (est., non compliant with JORC) 0.0 0.0 0.0

* Includes 10kt U3O8 grading 0.06% in Upper Lignite, 1.2kt grading 0.032% in Low er Lignite and 1.7kt grading 0.024% in sandstone Contacts Directors Key Projects

Mr Chris Davis P Golding (Chairman) Ownership/ JV Target Process Project Managing Director M Fewster (Exec) Project Option Metal Partner Type Route Status Location Tel: 61 (0) 8 9389 2700 C Davis (MD) Mulga Rock Deposits 100% U,Ni,Co na Lignite RIP/ISR Development Aus (WA) West Perth, WA, Australia S Penrose (Non-Exec) Narnoo regional 100% U,lignite na sandstone na Early Expl Aus (WA) www.eama.com.au Gunbarrel 100%U nasandstone na Early Expl Aus (WA) Minigwal 100% U na sandstone na Early Expl Aus (WA) Analyst: Dr Trent Allen [email protected]

Resource Capital Research

A DCF (discounted cash flow) model and valuation for EMA, based on the November 2010 Scoping Study of the Ambassador Deposit at the Mulga Rock Deposits (WA), and RCR’s uranium price assumptions.

ENERGY AND MINERALS AUSTRALIA, VALUATION

Target Valuation Sensitivity Uranium Price (Low) (High) Resource/Target Valuation Discount A$m A$m A$m Projects (mlbs) US$/lb for risk + Mulga Rock, Ambassador Resource 28.4 2.89 35% 100 33 275 + Mulga Rock, Emperor and Shogun 31.2 0.52 40% 20 5 93 + Ambassador Exploration 45.4 0.05 60% 3 2 4 Sub Total 105 123 40 372

+ Cash 2.2 2.2 2.2 + Tax Losses 6.8 6.8 6.8 - Corporate 1.9 1.9 1.9 Sub Total 7.1 7.1 7.1

EMA NET ASSET VALUE 130 47 379

Capital Structure Shares 388 388 388 Fully Diluted Shares* 418 418 418

EMA NET ASSET VALUE PER SHARE :A$/share 0.33 0.12 0.98 EMA NET ASSET VALUE DILUTED :A$/share fully diluted 0.31 0.11 0.91 * Includes 30.042m performance shares plus in-the-money options

MULGA ROCKS PROJECT, AMBASSADOR DEPOSIT (based on November 2010 Scoping Study)

Equity Sensitivity LONG TERM URANIUM PRICE^ :US$/lb 40 60 70 80 100 EXCHANGE RATE :AUUS 0.82 0.82 0.82 0.82 0.82

MULGA ROCKS URANIUM NPV @ 10% NOMINAL* :A$m 100% 33 120 160 200 275 MULGA ROCKS URANIUM NPV @ 10% NOMINAL* :US$m 100% 27 99 131 164 226 NPV/SHARE :A$/share 0.08 0.31 0.41 0.51 0.71

* Includes a Scoping Study and Inferred Resource project discount of 35% of valuation: 35% ^Uranium contract price forecasts are US$68/lb in 1H11, US$65/lb to 1Q12, US$60/lb to 4Q17, thence long term price indicated.

MULGA ROCKS URANIUM PROJECT KEY ASSUMPTIONS*

RESOURCE ESTIMATES Uranium Mt % Mlbs Kt Conceptual Uranium Target Mulga Rocks, Ambassador Resource 27.6 0.047 28.4 12.9 Mulga Rocks, Emperor and Shogun 27.8 0.051 31.2 14.2 Ambassador exploration targets 42.0 0.049 45.4 10.3 Total 97.3 0.049 105 37.4

MINING METHOD ISR (In Situ Recovery) for sandstone; open pit for lignite-hosted uranium and other metals.

PROCESS METHOD Dual front end, and combined product preparation facility Front end: solvent extraction (SX) for ISR; acid leach and RIP (Resin in Pulp) for lignite SX and RIP pregnant fluids combined at RIP plant for uranium precipitation

PRODUCTION RATE (U3O8) :tpa 1,200 Study assumes 50/50 ISR and RIP :mlbspa 2.6 CAPITAL COSTS :A$m 260 Combined ISR and RIP operations RECOVERY - URANIUM :% 65-82 ISR 65%, RIP 82%. Likely to change with further testing. OPERATING COSTS :US$/lb 23 Net of by-product credits: base, rare and minor metals, gold EMA assumes A$600m revenue over life of mine TAX :% 30 ROYALTY (WA) :% 2.5 Royalty rate for metal MINE LIFE :Years 12 TARGET COMMISSION DATE : 1Q14

* These figures are preliminary in nature and are intended to provide only a general indication of project potential scale and economic robustness. Further refinement may result from the Pre-Feasibility Study, which should commence in 1Q11 and include ISR borefield trials.

Resource Capital Research

Energy Resources of Australia Limited* Energy Resources of Australia Ltd ERA.AU A$ 8.30

28 March 2011 Suspensded production at Ranger for 3 months 1H11 and further Uranium uncertain production outlook due to high water levels in tailings Australia (NT)

Producer facility could see further production downgrades in 2011. RCR ERA Exchanges: ASX:ERA valuation is A$11.14/share.

Capital Profile Production and Financial Forecasts

Share price (A$) 8.30 YEAR END: Dec 2009a 2010a 2011F 2012F 2013F 52 week range (A$/share) 6.76 to 19.90 Number of shares (m) 191 Equity Production (t) 5,240 3,793 3,515 4,420 3,355 Options and warrants (m) 0 EBIT (A$m) 393 75 94 170 139 Convertible notes (m) 0 Net Profit (norm) (A$m) 273 47 52 106 84 Fully diluted (m) 191 EPS (norm) (A¢/share) 143 25 27 55 44 Market capitalisation (undiluted) (A$m) 1,583 CFPS (A¢/share) 241 71 83 133 101 Debt (A$m) - Mar 11F 0 Dividends (A¢/share) 39 8 10 19 15 Enterprise value (A$m) 1,583 PER (x) 5.8 33.7 33.3 18.0 18.9 Major shareholders: Rio Tinto (68.39%); P/CF (x) 3.4 11.6 11.0 7.5 8.2 BlackRock Investment Management (5.03%) Yield (%) 4.7% 1.0% 1.1% 1.9% 1.9% Avg monthly volume (m) 20 EV/EBITDA (x) 3.4 11.6 10.0 6.3 8.2 Cash (A$m) - Dec 10F 81.9 Exploration and Evaluation (A$m) 30.0 38.0 28.0 28.0 28.0 Price/Cash (x) 19.3 Drilling - RAB (m) - - - - - Price/Book (x) 1.7 Drilling - Other/Diamond (m) 14,933 21,081 30,000 40,000 30,000 Listed company options: No Land holding ('000 ha)* 7.9 7.9 7.9 7.9 7.9 *Ranger only. Quarters refer to calendar year. Investment Points Company Comment

Overview: ERA has mined ore and produced uranium oxide at Ranger (NT) since 1981. Ranger is the ERA offers 100% exposure to uranium production and world's second largest uranium mine with normalised production of ~5.5ktpa of U3O8, equivalent to 12% of exploration in Australia (NT). global uranium mine supply. ERA also holds title to the Jabiluka deposit 22km north of Ranger. Ranger No. 3: Ranger is an open cut mine scheduled to operate till year end 2012 after which stockpiled ERA is the world's sixth largest uranium producer, ore will be processed through to 2020 (ERA lease tenure expires Jan 2021). ERA is reviewing potential for mining at Ranger (NT) since 1981. a possible underground mine and plant expansion. Expansion options include de-bottlenecking of the crushing and grinding circuit and a heap leach – potential production 2014 (to treat additional 15k to 20kt U3O8 within current pit and on stockpiles) over 5-6 years; DFS expected 2011. ERA indicates heap leach Ranger 3 Deeps exploration decline development production (capacity: 9mtpa low grade ore) to supplement Ranger mill production levels beyond 2013 after decision expected 2Q11 (75mlbs;10mt @ 0.34% U O ). mining ceases in pit 3. Ranger 3 Deeps’ exploration decline board development decision expected 2Q11 3 8 to allow for closer spaced exploration drilling; development expected 2H11; drilling 2012. Ranger 3 Deeps resource target is 15m-20mt containing 30k-40kt U3O8 - defined over 1.2km strike (open to the north) and Heap leach EIS submission expected 1H11; DFS 2011. 250m-500m depth. Resource statement includes ~34kt U3O8 associated with Ranger 3 Deeps. The 31 December 2010 statement of Reserves and Resources downgraded Ranger in-pit reserves from 15.1kt Production potential 2014. 15-20kt U3O8 resource. U3O8 to 9.3kt - a total of 5.8kt, 4.5kt of which was due to depletion and 1.3kt due to revisions to the reserve model following the infill drill program 2H10. The reserve grade fell to 0.21% (from 0.24% U3O8). Uranium contract price guidance: 2011 expected to be Jabiluka: The project remains on long term care and maintenance, and will not proceed without the above 2009 realised price of US$50.84/lb (RCR forecast consent of the traditional owners - the Mirrar. All regulatory permits are granted (some may need to be reviewed). We model mine production to commence by 2020, subject to approval. US$53.46/lb). Investment Comment: ERA earnings (NPAT 2010 A$47m) and NPV have been adversely impacted over the past 12 months due to the convergence of a number of factors. These include a reserve downgrade at ERA growth potential includes Jabiluka, further u/g Ranger (31 Dec) that lowered both residual tonnes and grade; high rainfall events constraining production; reserve increases at Ranger, regional exploration and a strong Australian dollar. These factors are all expected to continue to negatively impact 2011 NPAT, though offset by an expected higher realised uranium price (RCR 2011F NPAT A$52m). There have also success, potential heap leach, and underground mine. been delays to approvals for the exploration decline at Ranger 3 Deeps, heap leach and DFS which have negatively impacted sentiment. Our NPV valuation is A$11.14/share (10% discount rate, LT uranium price Jabiluka mining lease granted - awaiting development US$55/lb (post 2017), AUD/USD 0.82) down from A$15.08/share last quarter. Jabiluka start-up is consent from traditional land owners. 12 year mine life modelled from 2020 with 50% probability. ERA production guidance for Ranger is ~3,800t in 2011 – similar to 2010 levels (normalised production 5,200tpa). Given the risk of further production cuts, we have plus exploration upside. conservatively modelled 2011 production at 3,500t at this stage.

ERA - Energy Resources of Australia Ltd Reserves and Resources/Mineralised Material 25.00 Code for reporting mineral resources - Australian: (JORC); As at 31 December 2010. Uranium Classification Project Ore U3O8 Cut Off U3O8 U3O8 Eqty

U3O8 Equity Mt % % kt Mlb Mlb 20.00 Reserves Ranger No. 3 pit Proved and Probable 100% 4.60 0.21 0.08 9.3 20.5 20.5 15.00 Ranger Stockpile Stockpile 100% 20.3 0.10 0.06 20.6 45.3 45.3 Jabiluka Proved and Probable 100% 13.8 0.49 0.20 67.7 148.9 148.9 Sub total 10.00 38.7 0.25 97.5 214.7 214.7

Share Price ($/Share) Price Share Resources (in addition to reserves) Cut Off* 5.00 Ranger No. 3 pit Measured and Ind. 100% 125.3 0.07 87.4 192.7 192.7 Jabiluka Measured and Ind. 100% 4.54 0.36 0.20 16.4 36.2 36.2 0.00 Ranger No. 3 pit Inferred 100% 6.0 0.12 7.1 15.6 15.6

10 Jabiluka Inferred 100% 10.9 0.53 0.20 57.5 126.8 126.8 10 10 10 10 10 10 10 10 11 11 ------Ranger Stockpile Stockpile - Measured 100% 38.1 0.04 0.02 15.1 33.3 33.3 Jul Oct Jun Mar Feb Mar Aug Sep Nov Dec May Sub total 184.8 0.10 183.5 404.6 404.6 Source: Bloomberg Mineralised Material (est.) 0.0 0.00 0.0 0.0 0.0

* Ranger cut-off grades: 0.02% U3O8 open pit; 0.15% U3O8 underground; 0.02% U3O8 stockplie ore. Contacts Directors Key Projects

Mr Rob Atkinson (CEO) D. Klinger (Chairman) Ownership/ JV Target Process Project Tel: 61 (0) 8 8924 3500 (ERA) R. Atkinson (Director) Project Option Metal Partner Type Route Status Location David Skinner (IR - Rio Tinto) M. Coulter (Non Exec Dir) Ranger 100% Uranium na Unconformity acid leach Production Aus (NT) Tel: 61 (0) 3 9283 3628 (RIO) P. Taylor (Non Exec Dir) Jabiluka 100% Uranium na Unconformity acid leach Pending Aus (NT) Darwin (NT), Australia H. Garnett (Non Exec Dir) www.energyres.com.au J. Pegler (Non Exec Dir)

Analyst: John Wilson [email protected]

Resource Capital Research

Energy Resources of Australia Ltd

YEAR END: Dec Year Year ASSUMPTIONS 2009a 2010a 2011F 2012F 2013F FINANCIAL RATIOS 2009a 2010a 2011F 2012F 2013F A$/US$ 0.80 0.92 1.0 3 0.94 0.87 Uranium Price - Spot (US$/lb) 46 47 57 52 54 Net debt/mkt equity (%) -16% -12% - 10 % -19% -23% Uranium Price - Contract (US$/lb) 66 61 6 7 61 60 Net debt/ net debt + mkt equity (%) -19% -13% - 11% -23% -30% Uranium Price Realised (US$/lb) 51 48 53 50 47 Current ratio (x) 3.1 3.4 6 .7 9.1 9.1 EBIT/interest (x) 35 5 8 14 12 Debt/operating cashflow (%) 0% 0% 0 % 0% 0% EQUITY PRODUCTION Exploration/total overhead (%) 68% 76% 69% 69% 69% Ranger Production (t) 5,240 3,793 3 ,515 4,420 3,355 EV/EBITDA (x) 3.4 11.6 10.0 6.3 8.2 Jabiluka Production (t) 0 0 0 0 0 M arket cap/net cash (x) 6.2 8.4 9 .9 5.3 4.4 ERA Equity Production U3O8 (t) 5,240 3,793 3 ,515 4,420 3,355 Market cap/book (x) 1.6 1.7 1.6 1.4 1.4 Cash Costs (US$/lb) 17.87 41.51 3 3 .4 3 20.92 18.46

PROFIT AND LOSS (A$m) FINANCIAL SENSITIVITIES Revenues 781 586 4 6 2 522 401 Operating costs -218 -352 - 2 3 1 -189 -136 % Change in EPS for a 10% increase in: Depreciation/amortisation -67 -61 - 6 4 -83 -54 Exploration -30 -38 - 2 8 -28 -28 AUD/USD -51% -32% -32% Corporate -14 -12 - 12 -13 -13 Uranium Price 59% 40% 41% Other -59 -48 - 3 2 -39 -32 EBIT 3 9 3 75 9 4 170 13 9 Finance costs 11 16 12 12 12 % Change in NPV for a 10% increase in forecast minelife Operating profit/loss 3 8 2 59 8 2 158 12 7 commodity assumptions for: Tax -109 -12 - 3 0 -52 -43 B ase + 10 % M inorities 0 0 0 0 0 A $/shareA$/share % Net profit/loss 2 73 4 7 52 10 6 8 4 Uranium Price 11.14 13.97 25% Net other 0 0 0 0 0 Net profit/loss (reported) 273 47 52 106 84

BALANCE SHEET (A$m) VALUATION (A$m) Q1 11 Cash and deposits 2 54 18 8 159 2 9 9 3 6 3 Total current assets 449 412 3 8 4 524 587 A ssump t ions B ase " W hat if " PP&E 4 70 54 0 559 518 50 6 Long Term Contract Uranium Price (from 2018) :US$/lb 55 70 Total non-current assets 910 1011 10 3 1 989 977 Long Term AUUS 0 .8 2 0.82 Total assets 1359 1423 14 15 1513 1565 Pro ject s Total current liabilities 145 122 57 57 43 Ranger 100% NPV@10% US$10.28/lb 6 76 950 Reclamation reserves 199 300 3 0 0 300 300 Jabiluka - factor 50% 100% NPV@10% US$3.59/lb 53 4 1002 Long term debt 0 0 0 0 0 R eso urces Total non-current liabilities 247 351 3 51 351 351 Ranger 100% 241.6 mlb US$4.25/lb 10 17 1627 Total liabilities 393 472 4 0 8 408 394 Jabiluka - factor 50% 100% 163.0 mlb US$0.88/lb 14 1 232 Eq uit y 9 6 7 9 51 10 0 7 110 5 1171 Exploration 55 85 A sset s T o t al d eb t 0 0 0 0 0 Cash and deposits 8 2 82 Net debt -254 -188 -159 -299 -363 Rehabilitation Fund 0 0 Average shares (fully diluted) (m) 191 191 19 1 191 191 Other 0 0 Liabilities FLOW OF FUNDS (A$m) Debt 0 0 EBITDA 4 6 0 13 6 158 2 53 19 2 Corporate - 8 0 -80 Cash flow from operating activities Reclaimation reserve - 3 0 0 -300 Operating surplus 560 224 2 2 5 323 250 N et A sset s 2 12 5 3 59 8 Corporate -14 -12 - 12 -13 -13 Net financing cost -1 -6 - 7 -1 6 Fully Diluted Shares (m) 19 1 191 Net tax paid -132 -75 - 2 8 -51 -64 Net assets/share (A$/share) 11.14 18 .8 6 Net exploration paid -30 -38 - 2 8 -28 -28 Other non cash items -134 -51 18 17 2 Net cash from operating activities 2 4 9 4 2 16 7 2 4 7 152 Valuation/Reserve lb :US$/lb 8 .11 13.74 Cash flow from investing activities Valuation/Reserve & Resource lb :US$/lb 2 .8 1 4.76 Capital expenditure -37 -45 - 8 4 -41 -42 Other non cash items 0 0 0 0 0 Net cash from investing activities - 3 7 - 4 5 - 8 4 - 4 1 - 4 2 OWNER Share % Cash flow from financing activities Net proceeds from issue of shares 0 0 0 0 0 Rio Tinto 68 Dividends paid -65 -63 - 18 -37 -29 Net proceeds from borrowings 0 0 0 0 0 Net cash from financing activities - 6 5 - 6 3 - 18 - 3 7 - 2 9 Net change in cash 147 -66 6 6 169 81

PRODUCTION STATISTICS R ang er 10 0 % Ore Treated (kt) 2268 2400 19 8 0 2600 2600 Head Grade (%) 0.26 0.19 0 .2 3 0.20 0.15 Recovery (%) 88 87 8 5 85 87 Recovered grade (%) 0.23 0.17 0 .18 0.17 0.13 The largest 20 shareholders hold 72.82% of the total shares issued.

U3O8 Produced (t) 5240 3793 3 515 4420 3355 Equity Production (t) 52 4 0 3 79 3 3 515 4 4 2 0 3 3 55 C ash Costs (US$/lb, est.) 17.9 4 2 3 .14 2 5.0 1 2 0 .9 1 18 .50

DIRECTOR'S INTERESTS Shares Jab iluka 10 0 % Ore Treated (kt) 0 0 0 0 0 Head Grade (%) 0.00 0.00 0 .0 0 0.00 0.00 Recovery (%) 0 0 0 0 0 Recovered grade (%) 0.00 0.00 0 .0 0 0.00 0.00

U3O8 Produced (t) 0 0 0 0 0 Equity Production (t) 0 0 0 0 0 C ash Costs (US$/lb) 0 .0 0 0 .0 0 0 .0 0 0 .0 0 0 .0 0 Production Costs ($/t) 0.00 0.00 0 .0 0 0.00 0.00

Resource Capital Research

Energy Ventures Limited Energy Ventures Limited EVE.AU A$ 0.17

28 March 2011 EVE's current and successful strategy is to identify undervalued Uranium brownfields uranium assets in the US. Resource base is now United States of America Advanced exploration 38Mlbs U3O8 with good potential to increase in the near term. A Exchanges: ASX:EVE feasibility study of the Aurora Deposit (OR) is expected in 2011.

Capital Profile Production and Financial Forecasts

Share price (A$) 0.17 YEAR END: June Dec-10a Mar-11F 2010a 2011F 2012F 52 week range (A$/share) 0.02 to 0.29 Number of shares (m) 339 Exploration and evaluation (A$m) 0.95 0.77 4.26 4.49 6.63 Options and warrants (m) 19 Corporate (A$m) 0.31 0.44 0.44 1.49 1.75 Convertible notes (m) 0 Exploration/(Expl.+ Corporate) (%) 76 64 91 75 79 Fully diluted (m) 358 Funding duration at current burn (years) na na 1.4 0.4 0.5 Market capitalisation (undiluted) (A$m) 55.9 Shares on issue (pr end) (m shares) 276.5 339.1 224.4 340.8 373.2 Debt (A$m) - Mar 11F 0.0 Drilling - RAB (m) 0 0 0 0 0 Enterprise value (A$m) 55.9 Drilling - RC/Diamond/Other (m) 2,000 2,500 0 9,800 20,500 Major shareholders: Land holding ('000 ha) 6,176 6,176 526 6,176 6,500 Directors and management (27%), Geared Investments (5%) Tenement costs ($k per year) na na na na na Avg monthly volume (m) 41 Capital raisings (A$m) 0.4 1.5 10.4 3.9 9.6 Cash (A$m) - Mar 11F 3.0 Funding from JV partners (A$m) 0 0 0 0 0 Price/Cash (x) 18.9 Cash (A$m) 2.6 3.0 6.7 2.3 3.9 Price/Book (x) 2.2 Cash backing (Ac/share) 1.0 0.9 3.0 0.7 1.0 Company options: No Net asset backing (Ac/share) 9.0 7.6 11.2 7.6 9.2

Investment Points Company Comment

Holds four advanced uranium exploration and Overview: Energy Ventures is an Australian company formed in 2003 as Australian Development Capital Ltd and is listed on the ASX. It has four uranium projects in the US: Aurora Deposit (OR), Virgin Valley development projects, all of which were acquired at low (NV), Maybell (CO) and Skull Creek (CO), of which the priorities are Aurora and Maybell. All four have cost. been acquired in the past 12 months, are in states with established mine permitting regimes, and have a history of exploration as well as current resources or previously defined mineralisation. Other projects are under evaluation for staking, acquisition or joint venture (JV). Resource base of 38mlb U3O8 with potential to increase Aurora Deposit (SE Oregon): Covering 526ha, located 5km N of the Nevada border, adjacent to the in near-term via verification of historical deposits and now-closed Bretz Mercury Mine. The deposit consists of a flat lying zone of uranium mineralisation in near-mine exploration. volcanic rocks beneath a shallow cap of sediments (0m-50m depth). There is a JORC compliant resource of 69.3mt @ 0.0248% eU3O8 for 37.9mlbs (100ppm, or 0.01%, cut off; where “e” means equivalent uranium grade calculated by downhole radiometrics). Of this, 97% is in the Indicated category, and 47% Lead project ready for feasibility studies and has a is in a higher-grade near surface core with a 300ppm eU3O8 cutoff (18mlbs grading 0.0444%). The potentially short timeframe to development resource envelope (low cutoff) measures ~800m by ~250m (within a 1.5km x 300m mineralised zone) and varies from <10m to +30m in thickness. Planned RC step-out drilling to the southeast of the resource, Aggressive exploration and development programme scheduled from April 2011, has potential to add +400m of strike. Currently, diamond drilling within the resource area (15 holes, ~1700m) could upgrade the resource’s status and provide samples for planned for 2011 and 2012 - spending +$16m. metallurgical and geotechnical testing. Development plans include processing options, cost estimates, confirmation of environmental baseline parameters and preliminary mine planning (potential open pit), Cash March 2011 forecast is A$2.1m, with funds leading to completion of a pre-feasibility study in 2011. EVE has sufficient expertise to manage the available from existing assets, e.g. 4.4% share of African development, including the all-the permitting process. Maybell Project (NW Colorado): EVE holds 536 lode claims (4330ha) in a known uranium mining Energy Resources (ASX:AFR, current cap ~A$200m). province. Historic production from the project area was ~5.3mlbs U3O8 including 4.3mlbs grading 0.13%. Mineralisation is hosted by tuffaceous sandstones in zones +30m thick. EVE states that “historical drilling Mining friendly jurisdictions in the western USA, low indicates potential for large, near-surface resource of low-grade mineralisation with local high grade country risk. Management have US experience. zones.” (Feb ’11). A compilation of known exploration information is in progress, expected to lead to drill target selection resource definition. Drilling is expected from May 2011. Equity investments: Agricola Resources (PLUS:AGRI), Wayland Copper Ltd (50%), Norrsken Energy Highly leveraged to uranium price. Ltd (51%) and African Energy Resources Ltd (4.4% and formerly 35.3%, ASX:AFR). EVE gained value through these holdings in 2010 and 1Q11. The market cap of AFR increased 15-fold from its yearly low to high (Feb ’11) due to the rising uranium price and the discovery of coal deposits in Botswana. EVE - Energy Ventures Ltd Exploration and development budget 2011 and 2012: Aurora feasibility studies, $2.25m; exploration 0.30 and resource drilling, $11m; admin and salaries $3.5m; split is $8.25m in 2011, $8m in 2012. Cash at Dec 10 was A$2.6m. Divesting the remaining interest in ASX:AFR could raise A$9m (current value). Investment Comment: EVE acquired Aurora for US$2m in May ‘10 when the uranium price was at 0.25 ~US$40/lb (close to the current 5 year low). This is equivalent to ~US$0.05/lb eU3O8 current resource. EV/resource is now ~$1.40/lb compared to the industry average of +US$3/lb - so there is potentially value 0.20 to be added in 2011-12 via ongoing resource definition, feasibility studies and the initiation of project permitting. The recent pullback in share price has been industry-wide due to global uncertainty. 0.15 Reserves and Resources/Mineralised Material 0.10 Code for reporting mineral resources - Australia - JORC:

Share($/Share) Price Uranium Classification Project Ore Grade Cut off U3O8 Equity

0.05 U3O8 Equity Mt % ppm Kt Mlb Mlb

0.00 Reserves 0.0 0.0 0.0 Resources

Jul-10 Aurora Indicated, Inferred 100% 69.3 0.0248 100 16.9 37.9 37.9 Oct-10 Apr-10 Jan-11 Mar-11 Sep-10 Nov-10 Dec-10 May-10 Source: Bloomberg Mineralised Material (est., non compliant w ith JORC) 0.00.0 0.0

Contacts Directors Key Projects

Mr Lachlan Reynolds A Cooke (Exec Chair) Project Ownership/ JV Target Process Project (Managing Director) L Reynolds (MD) Option Metal Partner Type Route Status Location Tel: +61 (0) 8 6465 5500 M Curnow (Non Exec) Aurora 100% U na volcanic na Adv Expl US(OR) West Perth, WA, Australia B Fry (Exec) Maybell 100% U na sandstone na Mid Expl US (CO) www.energyventures.com.au Virgin Valley 100% U na volcanic na Mid Expl US (NV) Skull Creek 100% U na lignite/sst na Mid Expl US (CO) Analyst: Dr Trent Allen [email protected]

Resource Capital Research

Energy Ventures, project locations: EVE has acquired four new uranium projects in the past 12 months, all in known uranium districts in the US, and with histories of significant exploration, definition of mineralisation and some uranium production.

The Aurora Project, resource outline and drill targets: the resource base, of 37.9mlbs U3O8 based on historic drilling and radiometrics, was more than doubled in 4Q10. Based on this image, step-out drilling has potential to add ~50% to the strike length of known mineralisation.

Resource Capital Research

Greenland Minerals and Energy Ltd GreenlandGGG.AU Minerals and Energy Limited A$ 1.03

28 March 2011 The Kvanefjeld resource has increased by 35% and now stands at Rare Earth Elements, Uranium, Zinc, Sodium Fluoride Greenland 350mlbs of U3O8, 6.6mt of total REO and 1.4mt of Zn. A definitive Pre-Feasibility Study feasibility study (DFS) of production, including uranium, should Exchanges: ASX:GGG start in 2H11. Share price target is A$1.46.

Capital Profile Production and Financial Forecasts

Share price (A$) 1.03 Year End: December Dec-10a Mar-11F 2010F* 2011F 2012F 52 week range (A$/share) 0.31 to 1.41 Number of shares (m) 318 Exploration and evaluation (A$m) 0.53 2.91 6.45 8.91 4.00 Options and warrants (m) 108 Corporate (A$m) 1.58 3.77 6 7.82 5.40 Convertible notes (m) 0 Exploration/(Expl.+ Corporate) (%) 25 44 53 53 47 Fully diluted (m) 425 Funding duration at current burn (years) 1 1.7 2.1 Market capitalisation (undiluted) (A$m) 326.0 Shares on issue (pr end) (m shares) 288.7 317.6 226.8 432.2 432.2 Debt (A$m) - Mar 11F 0.0 Drilling - RAB (m) 0 0 0 0 0 Enterprise value (A$m) 326.0 Drilling - Other/Diamond (m) 5,000 5,000 13,000 20,000 20,000 Major shareholders: Citicorp Nom (16.7%), National Nom (16.7%), Land holding ('000 ha) 211 211 211 211 211 JP Morgan Nom (15.9%), HSBC Nom (7.6%), Westrip Hold. (5.9%) Tenement costs ($k per year) - - - - - Avg monthly volume (m) 50 Capital raisings (A$m) 7.5 5.8 14.7 32.0 0.0 Cash (A$m) - Mar 11F 10.9 Funding from JV partners (A$m) 0 0 2 2 1.6 Price/Cash (x) 29.9 Cash (A$m) 11.6 10.9 7.6 28.0 19.8 Price/Book (x) 5.2 Cash backing (Ac/share) 4.0 3.4 3.4 6.5 4.6 Listed company options: GGGO Net asset backing (Ac/share) 20.8 19.6 26.5 19.8 18.8 * Year has ended but some actuals not yet published. Investment Points Company Comment Overview: Greenland Minerals and Energy Limited listed on the ASX in June 2006 (ASX:GGG). It is Multi-element focus at Kvanefjeld - uranium component evaluating the uranium-rich Kvanefjeld multi-element project in Greenland. valued in-ground at ~US$21 billion (US$60/lb) and REE Kvanefjeld (uranium, Greenland): The project (80km2) is located on the SW tip of Greenland, at at +US$196 billion (+US$30/kg). Narsaq. Within the Ilimaussaq alkaline intrusive igneous complex, it is one of the world’s largest rare earth elements and uranium deposits. Other elements and minerals include zinc, tin and sodium fluoride. GGG’s 61% ownership can move to 90% with A$10m payment, and 100% with A$50m, subject to the One of the world's largest REE and U deposits - plus results of ongoing litigation brought by its JV partner, Westrip Holdings Ltd (see disclaimer). economic potential NaF, Zn and Sn. Potential for long life, The deposit: is a flat-lying slab of disseminated mineralization hosted by black lujavrite (igneous). The sustainable mining operation. main body of lujavrite covers 2.2km by 1km and extends from surface to 280m depth. Current JORC resource (Mar ‘11) is 619mt @ 0.026% U3O8 for 350mlbs, 1.06% REO for 6.55mt (includes yttrium) and 0.22% Zn for 1.36mt, with 71% of these in the Indicated category. The recent upgrade includes near- Resource tonnage upgrade by 35.4% in March 2011, surface, higher grade zones incl. 122mt @ 1.4% TREO (0.05% HREO, 0.12% Y2O3) and 0.004% U3O8. includes 350mlbs U3O8, 6.55mt TREO and 1.44mt Zn Exploration: There is resource upside within the ~6km x 4km Ilimaussaq intrusion. Regional and with potential to increase further. resource development drilling (~11,000m from Jun ’10) intersected black lujavrite at Zone 2 (6km SE of Kvanefjeld), similar to mineralised rocks of the resource: assays include 131m @ 1.3% TREO, 447 ppm U3O8, 0.34% Zn (Feb ’11). Modelling suggests lujavrite is present as a continuous layer at depth. Metallurgical studies are advanced, with further progress Metallurgical and mineralogical tests are at an advanced stage. Current process flow sheet includes likely: flow sheet includes alkaline/carbonate pressure alkaline pressure leach (CPL) to remove uranium, recovering 84%, followed by flotation and acid leach to leach for uranium, and flotation and leach for REO. produce REE carbonate (rec. 34%). There is potential to improve recoveries, and to beneficiate the ore prior to the CPL circuit and reduce costs. There is also the possibility of generating a zinc concentrate (ZnS). Fluorine and thorium can both convert to insoluble compounds during CPL. A mineralogical study Pre-feasibility study, Feb '10: processing 10.8mtpa for 23 at UBC (Uni British Columbia) should help refine the processing methodology. Pre-Feasibility Study (updated January 2010): Calls for open cut mining, 10.8mtpa processing, for years, producing 43.7ktpa REO and 8.6mlbspa U3O8 . 43.7kt REO and 3.9kt (8.6mlbs) U3O8. Total capital cost is US$2.31bn with contingency. Operating costs Capex is US$2.31bn, opex US$41/t. NPV US$2.18bn. are US$3.83/t mining, US$23.55/t for the CPL uranium circuit (US$29.61/lb at head grade 365ppm U3O8), which includes some of the REO flowsheet, and a further US$13.62/t for the REO circuit Greenland Government has approved investigation of (US$3.36/kg at head grade 1.19% REO). Construction is scheduled for 2013 and production for 2015. The study places mid-point NPV (10% disc) at US$2.18bn (pre-tax). Base commodity prices are uranium potential (Dec '10), including a DFS. US$80/lb U3O8 (current LT contract price ~US$75/lb) and US$13/kg REO (could now be +US$30/kg). Break even U3O8 is US$37/lb. A Definitive Feasibility Study (DFS) should start in 2H11. Well funded by likely $40m option conversions in 1H11. Permitting: In Dec ‘10, the Greenland Government approved full evaluation of the deposit’s economic potential, including uranium. This, importantly, includes permission for a DFS. Critical studies will include Environmental and Social Impact Assessments, for which contracts have been awarded (Feb ’11). GGG - Greenland Minerals and Energy Limited Corporate: GGG raised working capital in 2Q10, placing A$6m in equity at $0.34/share, and has organised a further $15m equity facility that can be drawn down when needed over the next 5 years. defined1.6 over 2km x 1km; open at depth (>300m) and Timely option conversions, the majority at $0.2/share, could raise $40m in 4Q10-2Q11 (+$13m to date). along strike, regional prospectivity is high. Investment Comment: As we first forecast in March 2008, GGG grew from a <$200m to >$500m 1.4 company (fully diluted), helped by strong REE and resurgent uranium markets, a softening of Greenland’s stance on uranium, and exploration success. In February, we revised our earlier (December 1.2 2010) mid-term share price target upwards from A$1.46/share, in view of increasing project confidence. Subsequently, the crisis in Japan and its potential negative effect on the nuclear industry and rare metal 1 prices sapped confidence sector-wide. With the crisis moving towards resolution, and assuming that legal proceedings with Westrip find in GGG’s favour, the share price may push back above A$1.46. The 0.8 resource expansion has proved to be a positive catalyst; others could be the DFS with further process improvements; permission to mine; project finance; and a move to full ownership of Kvanefjeld. 0.6 Share Price ($/Share) Price Share

0.4 Reserves and Resources/Mineralised Material Code for reporting mineral resources - Australian: (JORC) 0.2 Rare Earths Classification Project Ore TREO Cut Off TREO TREO TREO Eqty 0 Equity Mt % ppm KtMlb Kt U3O8 10 10 11 10 10 10 11 10 10 ------Reserves 0.0 0.0 0.0 Oct Jun Jan Mar Mar Sep Nov Dec May Resources Source: Bloomberg Kvanefjeld* Indicated, inferred 61% 619 1.06 150 6,552 14,445 3,997 Mineralised Material (est., non compliant w ith JORC) 0.0 0.0 0.0 *Also uranium (350mlbs contained @ 0.026%) and Zn (1.36mt contained @ 0.22%) Contacts Directors Key Projects

Mr Roderick McIllree M Hutchinson (Chair) Ownership/ JV Target Process Project Managing Director R McIllree (MD) Project Option Metal Partner Type Route Status Location Tel: 61 (0) 8 9382 2322 S Cato (Exec Dir) Kvanefjeld 61%/100% U, REO W Igneousestrip na Advanced Expl Greenland Subiaco, WA, Australia J Whybrow (Expl Dir) www.ggg.gl T Ho (Non-Exec)

Analyst: Dr Trent Allen [email protected]

Resource Capital Research

Kvanefjeld and exploration targets, southern Greenland: there is considerable potential to extend the current resource (incl. 350mlbs U3O8 and 6.6mt of rare earth oxides). Mineralised lujavrite may form a continuous layer at depth, a theory supported by recent Zone 2 drilling (185m @ 1.2% TREO).

Development schedule for Kvanefjeld: The updated PFS is expected in 2Q11. As hoped, the Greenland Gov’t has given permission for a DFS, which should include pilot and demonstration level processing plants. Production is possible in 2015.

Resource Capital Research

Paladin Energy Limited* Paladin Energy Ltd A$ 3.75 PDN.AU

30 March 2011 PDN is expanding production at its African projects to 6mlbs Uranium U O expected FY11, up from 3.5mlbs FY10. Potential 13.8mlbspa Australia (WA,QLD,NT), Namibia, Malawi, Niger, Canada (CMB) 3 8 Producer from 2014. The company has an active acquisition program (recent Exchanges: ASX:PDN; TSX:PDN; NSX (Namibia):PDN deals - NGM and Aurora) and exploration (100,000mpa drilling).

Capital Profile Production and Financial Forecasts

Share price (A$) 3.75 YEAR END: June 2009a 2010a 2011F 2012F 2013F 52 week range (A$/share)3.01 to 5.61 Number of shares (m) 778 Equity Production (kt) 1245 1898 2733 3325 3719 Options and warrants (m) 0 EBIT (US$m) -2.2 -4.3 48.0 192.5 211.2 Convertible notes + incentive shares (m) 121 Net Profit (norm) (US$m) 300.5 -52.9 -17.6 84.6 97.9 Fully diluted (m) 899 EPS (norm) (US$/share) -0.78 -0.08 -0.02 0.11 0.13 Market capitalisation (undiluted) (A$m) 2916.4 CFPS (US$/share)^ 0.07 0.15 0.10 0.28 0.33 Debt* (US$m) - Mar 11F 733.2 Dividends (US$/share) 0.00 0.00 0.00 0.00 0.00 Enterprise value (A$m) 3664.5 PER (x) nmf nmf nmf 32 28 Major shareholders: CDS & Co (19.17%), HSBC Cus. Nom. Aust (17.05%) P/CF (x) 50 25 38 13 11 National Nom (9.01%), Fronteer (6.7%), JP Morgan (6.57%), CEDE & Co (5.08%) Yield (%) 0 0 0 0 0 Avg monthly volume (m) 235 EV/EBITDA (x) nmf nmf nmf 17.1 14.6 Cash (US$m) - Mar 11F 262.3 Exploration and evaluation (US$m) 12.2 17.1 18.0 18.0 18.0 Price/Cash (x) 10.9 Drilling - RAB (m) - - - - - Price/Book (x) 2.5 Drilling - Other/Diamond (m) 105,000 105,000 100,000 100,000 100,000 Listed company options: No Land holding ('000 ha) - - - - - * Convertible notes due Mar '13 (US$325m) and Nov '15 (US$300m). ^ EBITDA Quarters refer to calendar year. AU/US: 0.98 Investment Points Company Comment

PDN is 100% focused on uranium. Exploration budget Overview: Paladin Energy Ltd is an Australian company listed on the ASX and TSX. It is a mid tier uranium producer with two mines in production. PDN holds 19.3% stake in Deep Yellow (ASX:DYL). RCR conducted a ~US$14m expected in 2011. site visit to Langer Heinrich Feb ‘11. Langer Heinrich Mine: Dec Q production 933klb U3O8 (Stage 2 nameplate production 925klb/q; 3.7mlbpa LHM: Stage 3 (5.2mlbspa) start-up expected late 1Q11. U3O8). Stage 3 expansion underway; production expected late 1Q11 targets 5.2mlbspa U3O8, based on mill throughput head grade of 0.075% U3O8. Capex US$99.5m. Stage 4 potential expansion to 10mlbspa U3O8 (+92% over Stage 3) with ROM 8mtpa grading 0.06% U O . Production is expected to include 1.3mlbspa LHM: Stage 4 expansion: to 8.7mlbspa + 1.3mlbspa heap 3 8 U3O8 heap leach (42mt @ 175ppm U3O8). Onsite mill upgrade capex ~US$300m; opex US$25-30/lb; heap leach; LOM opex ~US$25-30/lb U3O8; onsite capex leach capex ~US$50m, opex

PDN - Paladin Energy Ltd Code for reporting mineral resources Aust/Canadian: (JORC/NI 43-101) Uranium (U3O8) Classification/ Project Ore Grade Cut Off Eqty Reserves Geology Equity Mt % (ppm) Kt Mlb Mlb 6.00 Langer Heinrich P+P and stockpile. 100% 110.2 0.055 250 61.0 134.3 134.3 Kayelekera Proved and Prob. 85% 12.6 0.105 400 13.3 29.3 24.9 5.00 Sub total 122.8 0.060 74.2 163.6 159.2 4.00 Resources (includes proved and probable reserves) Langer Heinrich M.Ind.Inf../calcrete 100% 142.8 0.055 250 78.7 173 173 3.00 Kayelekera M.Ind.Inf../sndst-rf 85% 26.2 0.080 300 21.0 46 39 Michelin (+5 CMB dep's) M. + Ind. /IOCGU 100% 40.2 0.09 * 38.0 84 84 2.00 Michelin (+5 CMB dep's) Inferred /IOCGU 100% 29.0 0.08 * 24.0 53 53

Share Price ($/Share) Price Share Valhalla (Mt Isa Uranium) M,Ind,Inf./Ir ox vein 91% 52.0 0.076 230/250 39.3 87 79 1.00 Skal (S+E, Mt Isa Uranium) Ind,Inf/ Ir ox vein 91% 12.7 0.052 250 6.6 15 13 0.00 Bigrlyi Ind. & Inf./sndst 42.1% 8.0 0.127 500 10.2 22 9 Other (6 projects)^ 23.1 51 49 10 10 10 10 10 10 11 10 10 11 11 ------Sub total 241 531 500 Jul Oct Jun Jan Mar Aug Sep Feb Mar Nov May Mineralised Material (est., non JORC compliant) Angela/Pamela Sandstone 50% na .10-.13 na 12-13 26 13 Source: Bloomberg Oobagooma Historic/sndst. 100% 8.2 0.12 350 10.0 22 22 * Cut-off: 200ppm open cut; 500ppm underground. 22.0 48 35

^ Manyingee (24mlbs U3O8), Andersons (4.7mlbs), Watta (3.8mlbs), Bikini (11.5mlbs), Duke Batman (3.1mlbs), Honey Pot (3.96mlbs) Contacts Directors Key Projects

Mr John Borshoff (MD/CEO) R. Crabb (Non-Ex Chair) Ownership/ JV Plant Process Project Paladin Resources Ltd J. Borshoff (MD) Project Option Metal Partner (ktpa) Route Status Location Tel: 61 (0) 8 9381 4366 S. Llewelyn (Non-Ex Dir) Langer Heinrich 100% U na 1500 alk. leach Production Namibia Perth, Australia D. Shumka (Non-Ex Dir) Kayelekera 85% U Malawi Gov. 1500 acid leach Construction Malawi www.paladinenergy.com.au P. Baily (Non-Ex Dir) Mt Isa Uranium 91% U SMM na convention'l Adv. Expl. Aust (QLD) P. Donkin (Non-Ex Dir) Michelin + Jacques L. 100% U na na convention'l Scoping Study Can (NL) Angela and Pamela 50% U CCO na convention'l Adv. Expl. Aust (NT) Analyst: John Wilson Manyingee 100% Una na ISR Dormant Aust (WA) [email protected] Oobagooma 100% U na na ISR Dormant Aust (WA)

Resource Capital Research

Paladin Energy Ltd

YEAR END: June Year Year ASSUMPTIONS 2 009a 2010a 2011F 20 12F 2013F FINANCIAL RATIOS 20 09a 2 010a 2011F 2 012F 2013F A$/ US$ 0.75 0.88 0 .9 8 1.01 0.89 Uranium Price - Spot (US$/lb) 51 44 56 54 52 Net debt/mkt equity (%) 18% 13% 16 % 15% 22% Uranium Price - Contract (US$/lb) 71 61 6 5 64 60 Net debt/ net debt + mkt equity (%) 15% 12% 14 % 13% 18% Uranium Price Realised (US$/lb) 59 54 56 62 63 Current ratio (x) 2.0 4.3 3 . 8 4.2 2.7 EBIT/interest (x) 0 0 1 4 4 Debt/operating cashflow (%) na na na 579% 468% EQUITY PRODUCTION Exploration/tot al overhead (%) 26% 31% 2 8 % 29% 29% Langer Heinrich Production (t) 1226 1521 16 8 6 2071 2405 EV/EBITDA (x) nmf nmf nmf 17.5 13.2 Kayelekera Product ion (t) 18 378 10 4 7 1254 1313 M arket cap/net cash (x) -5.6 -7.6 - 6 . 4 -7.0 -4.1 PDN Equity Production U3O8 (t) 1245 1898 2 73 3 3325 3719 M arket cap/book (x) 4.6 3.0 2 . 5 2.4 2.0 Cash Costs (US$/lb) 19.31 31.45 2 9 .14 25.72 25.81

PROFIT AND LOSS (US$m) FINANCIAL SENSITIVITIES Revenues 115 214 3 2 5 465 525 Operating costs -53 -132 - 176 -189 -212 % Change in EPS for a 10% increase in: Depreciation/amort isation -9 -14 - 2 3 -18 -35 Exploration -12 -17 - 18 -16 -16 AUD/USD 0% 0% 0% Corporate -35 -39 - 4 5 -40 -40 Uranium Price 83% 48% 65% Other 8 17 15 10 12 EBIT - 2 - 4 4 8 19 3 2 11 Interest 31 21 6 0 53 54 % Change in NPV for a 10% increase in forecast minelife Operating profit/loss - 3 3 - 2 6 - 12 13 9 157 commodity assumptions for: Tax 237 -28 - 5 -55 -59 B ase + 10 % M inorities -96 -1 0 0 0 U S$/sh US$/sh % Net profit/loss 3 0 1 - 53 - 18 8 5 9 8 AUD/USD 3.29 3.69 -12% Net other -781 0 * 0 0 0 Uranium Price 3.29 3.69 12% Net profit/loss (reported) -480 -53 - 18 85 98 * Net adjustment for abnormal impairment charges BALANCE SHEET (US$m) VALUATION (US$m) Q1 11 Cash and deposits 66 349 2 8 0 3 2 8 13 9 Tot al current assets 182 516 4 9 2 540 351 N PV Assumptions B ase " W hat if " PP&E 4 58 54 1 58 1 58 6 8 8 5 Long Term Realised Uranium Price :US$/lb 54 70 Tot al non-current assets 1282 1442 1712 1734 2052 Long Term A$/US$ 0 .8 2 0.82 Tot al asset s 1464 1958 2 2 0 3 2275 2403 Pro ject s Tot al current liabilit ies 91 121 12 9 129 129 Langer Heinrich + phase III, IV 100% NPV@10% 13 0 7.4 1764.9 Reclamation reserves 0 0 0 0 0 Kayelekera 85% NPV@10% 4 74 .5 616.8 Long term debt 572 6 8 2 6 9 4 707 720 Resources Tot al non-current liabilities 741 880 9 2 8 941 954 Kayelekera 85% 38.0 mlb US$7.00/lb 2 2 6 .2 294.1 Total liabilities 832 1001 10 56 1069 1083 M anyingee 100% 24.0 mlb US$2.25/lb 54 .0 70.2 Eq uit y 6 3 1 9 56 114 7 12 0 5 13 2 0 Oobagooma 100% 21.9 mlb US$2.00/lb 4 3 .8 56.9 Isa Uranium (100%; 81.9% SM M ) various 117.7 mlb US$6.00/lb 70 6 .2 918.1 T o t al d eb t 58 6 73 0 73 7 750 76 3 Angela and Pamela 50% 26.4 mlb US$5.00/lb 6 6 .0 89.1 Net debt 520 381 4 57 421 624 M ichelin + 5 CM B deposits 100% 136.8 mlb US$2.00/lb 2 73 .6 369.4 Average shares (fully diluted) (m) 618 697 73 9 741 741 Other + Exploration 150 .0 202.5 A sset s FLOW OF FUNDS (US$m) Cash and deposits 2 6 2 .3 262.3 EBITDA 7 10 71 2 10 2 4 6 Other 12 5.0 168.8 Cash flow f rom operating activities Liabilities Operating surplus 59 71 14 0 266 305 Debt - 73 3 .2 -733.2 Corporate -35 -39 - 4 5 -40 -40 Corporate - 13 2 .3 -132.3 Net interest paid -40 -35 - 70 -64 -63 Other liabilities - 19 3 .8 -234.0 Net tax paid 0 -17 - 3 7 -53 -56 Reclaimation reserve 0 .0 0.0 Net exploration paid -12 -17 - 18 -18 -18 N et A sset s 2 6 3 0 3 714 Other non cash items 8 -5 2 9 39 36 Shares (m) 8 9 9 899 Net cash from operating activities - 2 0 - 4 2 - 2 13 0 16 3 Net NPV/share (US$/share) 3 .2 9 4 .4 9 Cash flow f rom investing activities Net NPV/share (A$/share) 4 .0 1 5.4 8 Capital expenditure -237 -170 - 6 6 -22 -334 Valuation/Reserve lb :US$/lb 16 .52 23.33 Other non cash items -33 -36 - 18 -18 -18 Valuation/Reserve & Resource lb :US$/lb 5.2 6 7.42 Net cash from investing activities - 2 70 - 2 0 6 - 8 4 - 4 0 - 3 52 Cash flow f rom financing activities OWNER Shares Net proceeds from issue of shares 6 375 0 0 0 Dividends paid 0 0 0 0 0 Net proceeds from borrowings -13 120 50 -41 0 Net cash from financing activities - 7 4 9 5 50 - 4 1 0 Net change in cash -297 247 - 3 6 49 -189

PRODUCTION STATISTICS Langer Heinrich 10 0 % Ore Treated (kt) 1608 1995 2 3 14 3100 3600 Head Grade (%) 0.09 0.10 0 .0 9 0.08 0.08 Recovery (%) 80 80 8 1 88 88 Recovered grade (%) 0.08 0.08 0 .0 7 0.07 0.07

U3O8 Produced (t) 1206 1521 16 8 6 2071 2405 Equity Production (t) 12 0 6 152 1 16 8 6 2 0 71 2 4 0 5 C ash Costs (US$/lb) 2 6 .3 4 2 5.9 1 2 5.10 2 5.3 6 2 5.6 8 Production Costs (US$/t) 43.62 43.54 4 0 .3 2 37.36 37.82

Kayeleker a 8 5% DIRECTOR'S INTERESTS Shares Ore Treated (kt) 18 571 12 6 3 1500 1575 (m shares) % Head Grade (%) 0.11 0.13 0 .14 0.11 0.11 M r. John Borshoff M anaging Director 21.5 2.8% Recovery (%) 80 59 74 90 90 Recovered grade (%) 0.09 0.08 0 .10 0.10 0.10

U3O8 Produced (t) 16 444 12 3 2 1475 1545 Equity Production (t) 13 3 78 10 4 7 12 54 13 13 C ash Costs (US$/lb) na na 3 4 .6 3 2 2 .3 6 2 2 .16 Production Costs (US$/t) na na 8 1.9 6 48.47 47.92

Resource Capital Research

Peninsula Energy Limited Peninsula Energy Limited A$ 0.10 PEN.AU

28 March 2011 Lance project (WY, USA; 100% PEN) continues to build momentum and Uranium, Molybdenum, Gold looks well positioned to be part of the next wave of USA ISR projects. USA (WY), South Africa, Australia (WA), Fiji Prefeasibility Study Economic prospects bolstered by expanding/upgraded resource base Exchanges: ASX:PEN (Feb '11). DFS expected 1H11; production potential 2012.

Capital Profile Production and Financial Forecasts

Share price (A$) 0.10 YEAR END: June Dec-10a Mar-11F 2010a 2011F 2012F 52 week range (A$/share) 0.03 to 0.16 Number of shares (m) 2086 Exploration and evaluation (A$m) 2.08 3.00 11.57 11.41 8.00 Options and warrants (m) 889 Corporate (A$m) 1.30 0.50 3.81 3.25 2.00 Performance shares (m) 51 Exploration/(Expl.+ Corporate) (%) 62 86 75 78 80 Fully diluted (m) 3026 Funding duration at current burn (years) 0.5 2.1 3.4 Market capitalisation (undiluted) (A$m) 200.2 Shares on issue (pr end) (m shares) 1942.2 2108.9 1628.1 2108.9 2775.5 Debt (A$m) - Mar 11F 0.0 Drilling - RAB (m) 0 0 0 0 0 Enterprise value (A$m) 200.2 Drilling - Other/Diamond (m) 10,000 10,000 20,000 52,857 40,000 Major shareholders: Pala Investment Holdings (13.96%) Land holding ('000 ha)* 272 272 272 272 272 Tenement costs ($k per year) - - - - - Avg monthly volume (m) 442 Capital raisings (A$m) 26.3 10.0 15.4 36.3 40.0 Cash (A$m) - Mar 11F 33.3 Funding from JV partners (A$m) 0 0 0 0 0 . 6.0 Cash (A$m) 26.4 33.3 7.1 31.2 34.1 Price/Book (x) 2.4 Cash backing (Ac/share) 1.4 1.6 0.4 1.5 1.2 Listed company options:* PENOA, PENOC Net asset backing (Ac/share) 3.8 3.9 2.9 3.9 4.5 * PENOA (3c, exp 30 June 2012); PENOC (3c, exp 31 December 2015). *Uranium prospective tenements only, both held and under application. Quarters refer to calendar year. Investment Points Company Comment Overview: Formerly Peninsula Minerals (name change Nov ’10), PEN is listed on the ASX and has operated Focused on uranium - CY11 exploration and evaluation under the current management team since 2007 when key US projects were vended into the company. PEN is budget A$11m. exploring for uranium in the US, South Africa and Australia; and gold in Fiji. Lance Uranium Project (USA, WY): Located in the northeast part of the Powder River Basin comprises 13 Lance: PFS (Lyntek, Jul '10) potential production 2012 at project areas (12,000 ha) including the Ross and Barber prospects - targeting roll front style uranium. The project area was discovered in the ‘70’s by JV partners Nuclear Dynamics and Bethlehem Steel (NuBeth) and drilled 1.5mlbspa U3O8; C1 opex US$19.88/lb or US$13.52/lb between 1970 and 1979. NuBeth drilled 5000 holes (912,000m). PEN acquired the project 2H07 with a database with Vn credit; initial capex US$53m (total US$79.2m). of drilling and pilot plant data (from Ur-Energy). 22 roll fronts have been defined over a combined strike length of 305km (190 miles) containing 13 project areas with drill defined mineralization. Initial hydrology studies indicate good permeability and contained aquifer – prerequisites for ISR. Average deposit Lance mine permits and EIS lodged Dec '10. DFS GT’s 0.31-0.43ft% (cut-off 0.20). PFS (Lyntek) July 2010 confirms development potential for satellite production expected 1H11. Construction 2H11. LOM 13 years. Debt and a centralised processing plant at Ross from 4Q12 with capacity to produce up to 3mlbspa U3O8, commencing and offtake discussions at advanced stage. at 1.5mlbpa. Initial production is targeted from Ross and Barber. Lance project resource target is 95 to 145mlbs U3O8 – in addition to current JORC resource. PEN drilling 1Q11 is aimed at uplifting resources for DFS. The outlook for permitting in Wyoming continues to improve: Uranium One (TSX:UUU) received its NRC Lance resource upgrade to 33mlbs U3O8 (+31%) at operating license (Oct ’10) for Moore Ranch; and 2 other companies (TSX: URE, URZ) are expecting NRC 0.045% (200ppm cut-off, Feb '11). Additional resource permits in the next few months. URE received a draft Source and Byproduct Materials License from the NRC Jan ’11; URZ Permit to Mine (WDEQ) received Jan ’11. target is 95-145mlb U3O8 grading 0.036-0.05%. Karoo Project (South Africa): Located in the Karoo Basin of the Western, Eastern and Northern Cape Provinces; tenements comprise 6 project areas (198,000 ha) with defined U-Mo mineralisation across stacked sandstone units identified from surface to 40m. The region hosts Areva’s historic Ryst Kuil uranium mine (est. NRC permits potential to be granted to 2 further 40mlbs @ 0.1% U3O8). Three of PEN’s project areas host historic resources drilled by JCI and Union Carbide companies with WY ISR projects 1H11. (~1,300 holes) in 1970-80’s which defined high mineralisation grades of 0.07 to 0.14% U3O8. PEN has an exploration target of 90 – 150mlbs U3O8 grading 0.07 to 0.14%. Drill results (1Q11) confirm high grade uranium: Karoo Project: shallow, high grade mineralisation from intercepts include 2.1m @ 0.15% U3O8 and 1.9m @ 0.15%. Initial JORC resource expected 1H11. Mid-term surface to 40m. 2012 resource target 30mlb. 10 priority resource target 30mlbs U3O8 (2012). Investment Comment: PEN remains on-track for completing the Lance DFS and timely permitting of its WY targets. Initial drill results (1Q11) confirm high grade based ISR project, with production visibility 4Q12. The “nuclear renaissance” is expected to regain momentum, uranium. notwithstanding recent events in Japan. Lance base case NPV A$165m (A$0.08/share; US$50/lb realised uranium price, vanadium US$7.50/lb). With full de-risking of Lance, post commissioning, PEN NPV is A$0.10/share fully diluted (discounting a realised uranium price of US$50/lb, AUD/USD 0.80 and 10% discount PEN - Peninsula Energy Limited rate). Assuming a US$60/lb uranium price, post commissioning, NPV rises to A$0.13/share fully diluted. WY is a uranium friendly state, and combined with PEN’s experienced permitting consultants, and new streamlined US 16 permitting procedures, the company is well positioned to fast track regulatory approvals. 14 Reserves and Resources/Mineralised Material 12 Code for reporting mineral resources - Australian: (JORC)

Uranium Classification Project Ore eU3O8 Cut Off eU3O8 eU3O8 U O8 Eq 10 3 U3O8 Equity Mt % ppm Kt Mlb Mlb 8 Reserves 0.0 0.0 0.0 Resources 6 Lance - Ross Permit Area^ M,I,I 100% 5.50.048 200 2.6 5.8 5.8

Share Price ($/Share) Price Share 4 Lance - Ross M,I,I 100% 16.5 0.044 200 7.3 16.2 16.2 Lance - Barber M,I,I 100% 11.3 0.044 200 5.0 11.0 11.0 2 Total Lance* 33.3 0.045 14.9 32.9 32.9 Mineralised Material (est., non compliant w ith JORC) 0 Karoo - Site 22 Historic 74% 0.146 1.3 2.8 2.1 10 10 10 10 10 10 11 11 10 10 10 ------Karoo - Site 29 Historic 74% 0.111 0.3 0.6 0.4 Jul Oct Jun Mar Feb Mar Aug Sep Nov Dec May Karoo - Site 45 Historic 74% 0.076 2.2 4.8 3.6 Source: Bloomberg ^ Ross Permit Area includes a Vanadium resource (MII): 1.74mlbs V2O5 grading 0.0143%. 3.7 8.2 6.1

* Inferred Resource is 22.6mt 0.045% U3O8 for 22.5mlbs. Measured and Indicated Resources are 10.7mlbs U3O8 grading 0.045%. Contacts Directors Key Projects

Mr. John (Gus) Simpson J Simpson (Chairman) Ownership/ JV Target Process Project Executive Chairman M James (Non Exec Dir) Project Option Metal Partner Type Route Status Location Tel: 61 (0) 8 9380 9920 W Grigor (Non Exec Dir) Lance Uranium Projects 100% U na Roll front ISR PFS US (WY) West Perth, WA, Australia A Marlow (Non Exec Dir) Karoo Projects 74% U (Mo) BEE S'stone acid Mid Expl. S. Africa www.pel.net.au M Barton (Non Exec Dir) Western Australia 100% U na various na Early Expl. Aus (WA) Raki Raki 50% Au ASX:GPR na na Mid Expl. Fiji Analyst: John Wilson [email protected] March Quarter 2011 Disclaimer and disclosure attached. Copyright© 2011 by Resource Capital Research Pty Ltd. All rights reserved. 30

Resource Capital Research

PENINSULA ENERGY LIMITED VALUATION

Base Resource Base NPV Adjusted Adjusted Equity Val'n NPV Factor Value Uranium Price Sensitivity (%) (US$/lb) (A$m) (%) (A$m) (A$m) Assumptions Realised Uranium Price : US$/lb 50 50 40 60 70 80 Exchange rate: AUUS 0.80 0.80 0.80 0.80 0.80 0.80

Projects Lance project : NPV @10% 100% 1.58 166 65% 108 76 141 173 206

Resources and Exploration Lance (resource est. +100%) : NPV @10% 100% 0.83 88 65% 57 42 71 85 98 Karoo/other 10 10 5 7 12 15 Sub-total Exploration 98 67 47 78 97 113

Assets + Cash 33 33 33 33 33 33 + Tax Losses 6 6 6 6 6 6

Liabilities - Debt 0 0 0 0 0 0 - Corporate 16 16 16 16 16 16 - Reclamation 0 0 0 0 0 0 PEN Net Assets 287 198 147 241 293 342

Fully diluted shares (m) 3025.9 3025.9 3025.9 3025.9 3025.9 3025.9 Cash on Option Conversion 27.5 27.5 27.5 27.5 27.5 27.5

PEN Net Asset Value per share : A$/share 0.14 0.095 0.070 0.116 0.140 0.164 PEN Net Asset Value Diluted : A$/share dil 0.10 0.075 0.058 0.089 0.106 0.122

Sensitivity of Net Asset Value to Equity Raising Price:

PEN Net Asset Value (assuming A$40m capex raised through share issue at A$0.07) 0.066 0.052 0.078 0.092 0.106 PEN Net Asset Value (assuming A$40m capex raised through share issue at A$0.06) 0.064 0.051 0.076 0.090 0.103 PEN Net Asset Value (assuming A$40m capex raised through share issue at A$0.05) 0.062 0.049 0.074 0.087 0.100

LANCE URANIUM PROJECT KEY ASSUMPTIONS (derived from PEN PFS (Lyntek) - July 2010)

RESOURCE ESTIMATES Uranium Resource Tonnes Grade Uranium

Cutoff Mt % U3O8 Mlbs

Resource (M,I,I) Lance 200ppm 26.6 0.043 25.2 RCR modelling assumptions Lance 200ppm 18.5 0.043 17.5

MINING METHOD IN-SITU RECOVERY (ISR) PROCESS METHOD CENTRALISED URANIUM PLANT 1. Ion exchange and vanadium circuit 2. Potential satellite facilities

RESOURCE CONVERSION :% 40-60% (Inferred to Indicated or better) TONNAGE DILUTION :% na GRADE UPLIFT :% 6

BASE CASE ASSUMPTIONS PRODUCTION RATE :tpa na AVERAGE HEAD GRADE - U3O8 :% na HIGH GRADE :% na RECOVERY - URANIUM :% 76 PFS: 80% recovery in-situ; then 95% plant recovery URANIUM PLANT CAPACITY :mlbspa 3.00 Assumes expanded resource base (not included in base case NPV) INITIAL URANIUM PRODUCTION :mlbspa 1.50 Production rate based on PFS resources

VANADIUM PRODUCTION :mlbspa 1.20 PFS includes vanadium circuit: production ratio V2O5:U3O8 0.8:1. Cogema's Crowe Butte project recovers vanadium through IX circuit. CAPITAL COSTS - INITIAL DEVELOPMENT :US$m 53 CAPITAL COSTS - TOTAL :US$m 79 Includes sustaning capex of US$13.5m and US$2m for permitting and land acquisition. OPERATING COSTS: (C1) :US$/lb 19.88 less by-product credit :US$/lb 6.36 PFS assumes vanadium production of 1.2mlbspa; price US$7.50/lb. (C2) :US$/lb 21.42 (C3) :US$/lb 30.02 TAX :% 30 ROYALTY :% 6 MINE LIFE :Years 13 Years COMMISSION PROJECT : 4Q 2012 36 month ramp-up.

These figures are preliminary in nature and are intended to provide only a general indication of project scale and economic robustness. Considerable refinement may result from subsequent feasibility studies, expected to be completed in 1H11.

Resource Capital Research

PepinNini Minerals Limited PepinNiniPNN.AU Limited A$ 0.19

28 March 2011 With the Crocker Well Uranium BFS (60% SinoSteel, 40% PNN, Uranium, REE, Iron, Gold/Silver, Lead/Zinc, Copper/Nickel 11.7mlb resource) on hold, PNN's exploration focus is on the Australia (SA,QLD,WA) BFS, Advanced Exploration project's rare earths potental, as well as advancing a DSO iron ore Exchanges: ASX:PNN resource in WA and scoping study on high grade gold in N QLD.

Capital Profile Production and Financial Forecasts

Share price (A$) 0.19 YEAR END: June Dec-10a Mar-11F 2010a 2011F 2012F 52 week range (A$/share) 0.13 to 0.37 Number of shares (m) 89.7 Exploration and evaluation (A$m) 0.91 0.80 4.88 3.69 3.60 Options and warrants (m) 0.0 Corporate (A$m) 0.52 0.20 1.01 1.19 1.20 Convertible notes (m) 0 Exploration/(Expl.+ Corporate) (%) 63 80 83 83 75 Fully diluted (m) 89.7 Funding duration at current burn (years) 1.0 0.9 -0.4 Market capitalisation (undiluted) (A$m) 16.6 Shares on issue (pr end) (m shares) 78 90 78 90 90 Debt (A$m) - Mar 11F 0.0 Drilling - vacuum/aircore (m) 1,058 3,500 8,725 12,315 14,000 Enterprise value (A$m) 16.6 Drilling - RC/Diamond (m) ** 3,256 1,250 8,408 11,141 12,000 Major shareholders: NL Kennedy (10.6%), RA Holland-Kennedy (10.6%) Land holding ('000 ha)* 1,607 1,607 1,607 1,607 1,607 Sinosteel Corporation Pty Ltd (3.7%), National Noms (2.4%). Tenement costs ($k per year) - - - - - Avg monthly volume (m) 5 Capital raisings (share buybacks)(A$m) 0.0 3.1 0.0 3.1 0.0 Cash (A$m) - Mar 11F 5.4 Funding from JV partners (A$m) 1.0 1.0 4.4 3.0 0.0 Price/Cash (x) 3.1 Cash (A$m) 3.4 5.4 5.9 4.4 -1.8 Price/Book (x) 0.6 Cash backing (Ac/share) 4.3 6.1 7.5 5.4 -2.0 Listed company options: No Net asset backing (Ac/share) 29.8 29.2 30.3 31.8 25.6 *Tenements held or applied for ** Drilling includes JV drilling sole-funded by Sinosteel Investment Points Company Comment Overview: PNN listed on the ASX in April 2005. PNN is a diversified explorer - targeting uranium, base Flagship is the Crocker Well/Mt Victoria uranium project metals, rare earths and gold in S.A. and Qld, and iron ore in W.A. (11.7mlb resource). Sinosteel (60%) is a strong partner. Curnamona Province – 3,778 km2 (SA) – Sinosteel JV. Crocker Well/Mt Victoria: The Crocker Well Uranium Project (discovered in the 1950’s) is a JV between Sinosteel Corporation (“SSC”), operator (60%) and PNN (40%). An initial 14.9mlb U3O8 resource was established Sep ‘05. Scoping Study was Focus shifting to high grade rare earths potential, plus completed Mar ’06 (1.3mlbpa production). A BFS in progress in 2008 was put on ice pending more base metals and iron ore targets, Curnamona Province favourable uranium prices and A$/US$ exchange rates. In 2010 a revised JORC resource for Crocker (SA), while the Crocker Well BFS remains on hold. Well of 11.7mlb @ 280ppm was announced. Over A$14m has been spent to date, mostly funded by SSC, A$5m remaining to be spent in JV before PNN is required to contribute. Rare Earth Targets: Focus has Strong newsflow expected in 2011: REE, base metals now switched to rare earth targets where 2Q10 JV drilling at high grade uranium targets has yielded significant high grade uranium and rare earth values. At Becaroo (e.g. 10m @ 972ppm Ce and 948 ppm drilling (Curnamona, SA), maiden iron ore resource La) and Mt Victoria (e.g. 7m @ 4927ppm, 1.76% total rare earths). JV Base Metals Targets: SSC is sole (WA), scoping study, possible initial gold resource (N funding (A$5m spend) drilling of multiple base metals and gold targets in the Curnamona Province. Over QLD), further REE/base metal drilling (Musgrave, SA). 30 targets have been identified. A 4-hole diamond drilling program has commenced 1Q11. Robinson Range Iron Ore Project (WA), 700km2, (50%/40%): Iron ore exploration is now becoming a high priority for PNN. PNN has farmed into a total of seven tenements in the Midwest iron ore province - Iron ore - Robinson Range JV (midwest WA), aiming for WA’s second major iron ore province after the Pilbara. The tenements cover 40km of the Robinson 10mt DSO initial resource - 100mt potential. Range banded iron formation, 550 km NE of Geraldton. PNN is the operator. Surface sampling at 12 sites has identified out-cropping high grade hematite mineralisation (up to 67.3%Fe, low P), suggesting direct N Qld drilling 4Q10: confirmed high grade gold/silver vein shipping ore (DSO) potential. An initial 5,000m RC drilling campaign is likely to commence 2Q11, targeting an initial 10mt DSO JORC resource. PNN believes the total resource potential is >100mt. systems - scoping study is next step. Georgetown Inlier/Woolgar Goldfield (QLD), 2,773km2, (100%): This area has demonstrated uranium and phosphates potential, but PNN is focussing on precious metals, with extensive narrow vein high Musgrave Province (SA): numerous Voisey's Bay style grade Au + Ag mineralisation at Percyville, 30km SE of the Kidston mine and nearby ‘The Return” Cu-Ni targets, early stage drilling continuing. prospects confirmed in the initial 3,256m 4Q10 RC drilling program of priority targets. Results include 2m @ 10.1g/t Au, 33g/t Ag and 1m@ 20.3g/t Au and 35g/t Ag. An inaugural JORC resource is possible in 2011, dependent on results of a scoping study now underway for economic viability. Advancing rapidly. Cash (Mar '11) A$5.4m (6c/share), expl'n ~A$3.5mpa, Musgrave Province (SA), 9,601 km2 (100%), Rio Tinto Farm-in 1,382km2 (51%): PNN is focusing on plus A$5m free spend Sinosteel, Curnamona JV. priority AEM anomaly Ni-Cu targets, Voisey’s Bay type settings in this largely unexplored province. Potential for major Proterozoic hosted mineralised systems. Recent drilling confirmed favourable lithologies for stratabound Cu-Ni mineralisation. This is long term big target greenfields exploration. Our assessed NAV is A$0.33/share. Argentina: The company has said it intends to assess exploration opportunities in Argentina. Corporate: A$3.1m raised in Jan ’11 via a placement at A$0.27/share. Est. cash at 31 March is A$5.4m. PNN - PepinNini Minerals Limited Investment Comment: After some wild price fluctuations in January, and the Japanese nuclear fallout in Current0.40 price reflects zero value for excellent gold, base March, PNN is now trading at around half of our assessed value of A$0.33/share. The market finds it difficult to value such a diversified explorer, but when we look at the sum of the parts, we see real value metals0.35 and uranium exploration potential. now, particularly if the gold, rare earths or iron ore potential starts to generate headlines later in 2011. 0.30 Reserves and Resources/Mineralised Material 0.25 Code for reporting mineral resources - Australian: (JORC)

0.20 Uranium (U3O8) Classification Project Ore Grade Cut Off Eqty 0.15 Equity Mt % ppm Kt Mlb Mlb Reserves 0.0 0.0 0.0 0.10 Share Price ($/Share) Price Share Resources 0.05 Crocker Well Indicated 40% 13.3 0.0283 150 3.7 8.3 3.3 0.00 Crocker Well Inferred 40% 5.6 0.0275 150 1.5 3.4 1.4 Mt Victoria ** Inferred 40% 0.3 0.1600 300 0.4 0.9 0.4 10 10 10 10 10 10 10 10 11 11 ------Total Province Inferred 19.1 0.0298 5.7 12.5 5.0 Jul Oct Jun Mar Feb Mar Sep Dec Nov May Source: Bloomberg Historical (est., non compliant w ith JORC) 0.0 0.0 0.0

Contacts Directors Key Projects

Mr Norman Kennedy N Kennedy (Chair, MD) Ownership/ JV Target Process Project Managing Director R Holland-Kennedy (Exec Dir) Project Option Metal Partner Type Route Status Location Tel: 61 (0) 8 8218 5000 A Harris (Non-Exec Dir) Crocker Well/Mt Vict. 40% IOCGU Sinosteel Breccia convent'nl BFS Aus (SA) Adelaide, Australia C Lambert (Non-Exec Dir) Curnamona Province 40% U,Cu,REE Sinosteel various na Early Expl. Aus (SA) www.pepinnini.com.au Robinson Range 50%/40% Fe G'ton Gold hematite DSO Early Expl. Aus(WA) Musgrave Province 100% Ni-Cu na ultramafic na Early Expl. Aus (SA) Analyst: Dr Tony Parry Musgrave Rio Tinto JV 0/51% Ni-Cu na ultramafic na Early Expl. Aus (SA) [email protected] Georgetown 100% U, Au na volcanogenic na Early Expl. Aus (QLD) Woolgar Inlier 100% Au-Ag na vein (Au) CIP Mid Expl. Aus (QLD) March Quarter 2011 Disclaimer and disclosure attached. Copyright© 2011 by Resource Capital Research Pty Ltd. All rights reserved. 32

Resource Capital Research

Our current assessed value of PNN is A$0.33/share comprising A$0.11/share for the Crocker Well Uranium Project JV with uranium/rare earths/base metals resource upside, cash A$0.06/share, and A$0.26/share for PNN’s iron ore (WA) and extensive strategic SA/QLD gold/base metals/uranium exploration projects.

PEPINNINI MINERALS VALUATION

Project Value PNN Valuation Valuation A$m Equity A$m A$/share Curanamona Province JV (Sinosteel 60%) Crocker Well Uranium Project - BFS Stage Total Resource (mlb) 8.7 Project Valuation (US$/lb) 1.00 Project Value 8.7 40% 3.5 0.04

Curanamona Exploration (Uranium, REE - multiple targets to drill) 10.0 40% 4.0 0.04 Curanamona Exploration (Base metals - multiple targets)* 6.0 40% 2.4 0.03 *(A$6m spend sole-funded by Sinosteel) Sub Total (Curanamona Province equivalent - PNN) 9.9 0.11

+ Musgrave Province Project (large unexplored area, Cu/Ni Voisey's Bay style targets) 100% 3.0 0.03 + Musgrave Rio Tinto Farm-in tenements (multiple Ni/Cu targets, PNN earning 51%) 51% 2.0 0.02 + N QLD - Gold Exploration (High grade gold intercepts - resource imminent?) 100% 8.0 0.09 + WA Project - Robinson Range Iron Ore (50% JV, 10mt DSO Potential) 50%/40% 10.0 0.11 Sub Total (Musgrave, N QLD, Robinson Range Exploration & Cash) 23.0 0.26

+ Cash (f'cast end Mar '11) 5.4 0.06 - Corporate -8.6 -0.10 + Tax Losses 0.0 0.00 Sub Total -3.2 -0.04

PNN NET ASSET VALUE 29.7 0.33

Capital Structure Shares 89.7 Fully Diluted Shares 89.7

PNN NET ASSET VALUE PER SHARE :A$/share 0.33 PNN NET ASSET VALUE DILUTED :A$/share fully diluted 0.33

PepinNini has developed a strong and highly diversified project pipeline. Two project areas that are likely to generate strong newsflow in 2011 are the Robinson Range Iron Ore Project (WA, LH graphic) and the North Queensland high grade gold-silver exploration near Kidston (RH graphic). .

Resource Capital Research

Toro Energy Limited Toro Energy Limited TOE.AU A$ 0.12

28 March 2011 The economics of Toro's Wiluna (WA) project (boosting resources Uranium to ~37mlb) will be enhanced with the purchase of a key tenement. Australia (WA,NT,SA), Namibia BFS and Exploration Uranium sector weakness could be a chance for acquisitions Exchanges: ASX:TOE required to reach a resource target of 220mlb by 2015.

Capital Profile Production and Financial Forecasts

Share price (A$) 0.12 YEAR END: June Dec-10a Mar-11F 2010a 2011F 2012F 52 week range (A$/share) 0.06 to 0.18 Number of shares (m) 965 Exploration and evaluation (A$m) 4.35 2.80 9.46 16.07 14.00 Options and warrants (m) 22 Corporate (A$m) 1.17 0.85 3.51 3.56 3.20 Convertible notes (m) 0 Exploration/(Expl.+ Corporate) (%) 79 77 73 82 81 Fully diluted (m) 987 Funding duration at current burn (years) 6.4 8.8 4.2 1.2 0.4 Market capitalisation (undiluted) (A$m) 111.0 Shares on issue (pr end) (m shares) 964.9 964.9 964.9 964.9 964.9 Debt (A$m) - Mar 11F 0.0 Drilling - RAB (m) 5,000 3,500 20,000 22,500 15,000 Enterprise value (A$m) 111.0 Drilling - RC/Sonic/Diamond (m) 2,500 2,000 15,500 11,500 8,000 Major shareholders: OZ Minerals Ltd (42.5%), ANZ Nominees (2.3%), Land holding ('000 ha) 4,132 4,132 4,225 4,132 4,132 HSBC Nominees (1.5%), Allarrow Pty Ltd (1.0%) Tenement costs ($k per year) - - - - - Avg monthly volume (m) 98 Capital raisings (A$m) 0.0 0.0 60.6 0.0 0.0 Cash (A$m) - Mar 11F 32.1 Funding from JV partners (A$m) 0 0 0 0 0 Price/Cash (x) 3.5 Cash (A$m) * 35.4 32.1 54.5 23.7 7.4 Price/Book (x) 1.0 Cash backing (Ac/share) 3.7 3.3 5.6 2.7 0.9 Listed company options: No Net asset backing (Ac/share) 11.7 11.6 12.5 12.2 13.1 * FY11 cash assumes A$4.5m Norilsk payment 2Q11. Investment Points Company Comment Overview: TOE listed on the ASX in March 2006 and is a pacesetter in advancing calcrete style uranium 100% uranium focus. Expl. + eval. budget ~A$16m pa. projects in Australia - Wiluna (WA) is at the BFS stage. Toro’s Aspirational Targets: TOE has ambitious growth targets: 220mlb U3O8 resources by 2015 Cashed up (est. A$32m Mar '11) to fund Wiluna BFS, (currently 30mlb) and production of 5.5mlbpa by 2020. Meeting these will require TOE (backed by major Wiluna resource expansion and exploration/acquisitions. shareholder Oz Minerals - ~A$1.4bn cash) to look beyond the current core asset at Wiluna. Wiluna Regional Resource Consolidation: We have previously highlighted the potential for TOE to increase its Wiluna resource base to >30mlb U3O8 in a 40km radius of Wiluna, with strategic Potential Wiluna production mid 2013: ~2.0mtpa ore, acquisitions/alliances. TOE has now achieved this to great affect. Our modelling suggest this regional alkaline tank leach, ~2.2mlbpa output. consolidation will increase forecast Wiluna Project NPV by ~A$25m (~2.6cps). The Acquisition of the Firestrike uranium discovery in 4Q09 was the first step. Then came the purchase of 100% of the Dawson-Hinkler Well calcrete uranium project (20km W of Centipede) from U3O8 Ltd (ASX:UTO), for a Wiluna BFS underway, draft EIS lodged, resource A$1.00/lb resource (A$6.2m) and a 2% royalty for production in excess of 6.2mlb. Recently, the final key upgrade expected 2Q11. piece of the Wiluna jigsaw puzzle has been put in place with the proposal to acquire key tenements which cover a uranium mineralised zone called Millipede, bordering TOE’s Centipede deposit. There is TOE's regional resource consolidation strategy for not much doubt, based on continuity of mineralisation and past drilling, that these tenements contain 4- 5mlb U3O8 at similar grades to Lake Way and Centipede (400-600ppm). The purchase consideration of Wiluna signifcantly enhances Wiluna Project value. A$4.5m plus a 2% NSR on production of >4.5mlb from the tenements is pitched at a similar level (~US$1.00/lb) to the Dawson-Hinkler Well acquisition, and is probably better value given the likely higher Purchase of strategic Norilsk tenements (target 4-5mlb grades and proximity to existing resources. resource) for A$4.5m is very positive. Wiluna Project Status: A PFS was completed Sep ’08, followed by Optimistation Study in Sep ’09. Wiluna BFS: BFS is now underway. The milestone Environmental Management Review Programmme/Draft Environmental Impact Statement was lodged with the EPA (WA) in March 2011. This TOE's Wiluna resource base should now exceed 37mlb should trigger the important public exhibition phase. Resource upgrade due 2Q11. The BFS should be completed 4Q11, which could see a go-ahead decision in 2Q12, and potential production mid 2013. U3O8, base case valuation is A$0.15/share. Other Exploration: Lake Mackay (WA): Theseus discovery is promising - Potential buried palaeochannel – will need to wait until 2Q11 for drilling due to wet season. TOE has extensive U TOE can be seen as OZ Minerals' (ASX:OZL) uranium exploration portfolio in SA, NT, WA and Namibia (~43,000km2). Mount Woods (SA): TOE has 100% U division - an acquisitive strategic vehicle. rights for OZL’s currently aggressive exploration for IOCGU targets – recent interesting U-only hits. Investment Comment: We think that TOE’s ambitions in the uranium sector go beyond Wiluna, which is a challenging first production project. It demonstrates viability (particularly with the smart regional OZL likely to bankroll Australian/overseas acquisitions to acquisitions) with long term prices >US$65/lb. Our base case evaluation for TOE of A$0.15/share is reach TOE's stated 220mlb resource target. based on NPV’s at US$60/lb long term U price and A$ back to US$0.82. At US$70/lb, NAV rises to A$0.23. TOE’s talented team, backed by cash rich major shareholder Oz Minerals, may well be able to TOE - Toro Energy Limited take advantage of a window of opportunity generated by the Japanese disaster, and look at project acquisitions, as well as maintaining focus on its extensive exploration ground, to generate a much 0.20 increased uranium market presence, and potentially increased shareholder value. 0.18 0.16 Reserves and Resources/Mineralised Material 0.14 Code for reporting mineral resources - Australian: (JORC)

0.12 Uranium Classification Project Ore U3O8 Cut Off U3O8 U3O8 Eqty

0.10 U3O8 Equity Mt % ppm Kt Mlb Mlb 0.08 Reserves 0.0 0.0 0.0 0.06

Share($/Share) Price Resources 0.04 Wiluna: L. Way & C'pede Meas Ind & Inf. 100% 20.2 0.0548 200 11.1 24.4 24.4 0.02 Dawson-Hinkler Well Inferred 100% 9.50 0.0293 200 2.8 6.2 6.2 0.00 Total Resources 29.70 0.0467 13.85 30.6 30.6

Jul-10 (est., non compliant with JORC) Oct-10 Mineralised Material Jun-10 Mar-10 Feb-11 Mar-11 Nov-10 Dec-10 Aug-10 Sep-10 May-10 Source: Bloomberg Total Mineralised (non JORC) 0.0 0.0 0.0

Contacts Directors Key Projects

Mr Greg Hall E Smyth (Non Ex. Ch'man) Ownership/ JV / Target Process Project Managing Director G. Hall (MD) Project Option Metal Partner Type Route Status Location Tel: 61 (0) 8 8132 5600 P. Lester (Non Exec Dir) Wiluna 100% U none Calcrete Alk. Leach BFS Aus (WA) Norwood, SA, Australia D. Carter (Non Exec Dir) Lake Mackay 100% U none Palaeo/IOCG na Early Expl. Aus (WA) www.toroenergy.com.au J. Nitschke (Non Exec Dir) Namibia 25% U DYL Calc/Alask na Early Expl. Namibia A Coles (Non Exec Dir) Mount Woods 100% U rights U OZL/MNT IOCGU na Early Expl. Aus (SA) Analyst: Dr Tony Parry Birrindudu 50.01% U Cameco Unc+S'stone na Early Expl. Aus (SA) [email protected]

Resource Capital Research

TORO ENERGY VALUATION

Uranium Valuation Range Resource/Mineralisation Target Price * (Low) (High) ** mlbs US$/lb A$m A$/Share A$m A$m Projects + Wiluna Project NPV (Optimisation Study completed, BFS underway) * 30.6 1.54 47 0.05 19 91 + Wiluna regional resource potential NPV (regional resource acquisition) 25 0.03 10 40 + Lake Mackay - (grassroots palaeochannel discovery) 5 0.01 4 10 + Namibia (DYL JV - strategic tenements in DYL palaeochannel system) 5 0.01 2 8 + Basement projects (SA, uranium rights to OZL's IOCGU exploration program) 8 0.01 5 12 + Other Australia - WA, NT and SA (grass roots, requires targeting work) 5 0.01 2 8 Sub Total 95 0.10 42 169

+ Cash (Mar 11F) 32 0.03 32 32 + Tax Losses 28 0.03 28 28 - Corporate 11 0.01 11 11 Sub Total 49 0.05 49 49

TOE NET ASSET VALUE 144 0.15 91 218

Capital Structure Shares (Mar '11) 964.9 964.9 964.9 Fully Diluted Shares 986.6 986.6 986.6

TOE NET ASSET VALUE PER SHARE :A$/share 0.15 0.09 0.23 TOE NET ASSET VALUE DILUTED :A$/share fully diluted 0.15 0.10 0.23

NOTE: * Wiluna Project NPV is based on Sep '09 optimisation study parameters, long term contract uranium pricing at US$60/lb, 10% discount rate nominal. ** High valuation assumes further improvements in grades and positive uranium price movements (US$70/lb long term). Modelling is based on project NPV's for Wiluna discounted by 30% to allow for pre-BFS project status.

WILUNA URANIUM PROJECT NPV @10% nominal - based on Wiluna resource upgrades (Jun '09) and optimisation study targets Equity NPV Sensitivity LONG TERM URANIUM PRICE ^ :US$/lb 50 60 70 80 LONG TERM EXCHANGE RATE :AU/US 0.82 0.82 0.82 0.82

NPV @ 10% NOMINAL** Base Case (includes grade upgrades Jun '09) :A$m 100% 4 47 91 134 Regional Resource Sensitivity: Tonnes +50% :A$m 100% 21 78 135 192

** Includes a pre prefeasibility study project discount of 30% of the project valuation: 30% ^ Long term uranium price forecasts are from 1Q14, linear transition from current levels.

Toro’s value-enhancing strategy of building Wiluna into a significant uranium production hub has taken a further step with the acquisition of the Millipede tenements (red tenements in map below), closing a ‘gap’ in the Centipede resource. Regional resources targets are now approaching 40mlb (r.h.graph).

Lake Way-Centipede Dawson-Hinkler Well Millipede Firestrike/Albion Downs

40 ) 8 35 O 3

5 Wiluna Regional Resource Base (mlb U (mlb Base Resource Regional Wiluna

0 3Q10a 4Q10a 2Q11F

Resource Capital Research

UR-Energy Inc Ur-Energy Inc URE.CN C$ 1.75

28 March 2011 The Lost Creek ISR Project (WY) has a Draft Source Material Licence Uranium from the NRC, one of the final steps in the permit process. Production USA, Canada Permitting could be 1mlbs/yr U3O8 , cash cost US$20/lb. Lost Creek resource is Exchanges: TSX:URE, AMEX:URG 8.4mlbs U3O8 Indicated with additional targets on adjoining property.

Capital Profile Production and Financial Forecasts

Share price (C$) 1.75 Year End: December* Dec-10a Mar-11F 2010a 2011F 2012F 52 week range (A$/share) 0.76 to 3.35 Number of shares (m) 103 Exploration and evaluation (C$m) 1.10 1.50 4.72 6.00 6.00 Options and warrants (m) 6 Corporate (C$m) 1.15 1.25 4.88 5.00 5.00 Convertible notes (m) 0.0 Exploration/(Expl.+ Corporate) (%) 49 55 49 55 55 Fully diluted (m) 110 Funding duration at current burn (years) 4.5 2.8 2.5 Market capitalisation (undiluted) (C$m) 181.0 Shares on issue (pr end) (m shares) 102 102 94 102 103 Debt (A$m) - Mar 11F 0 Drilling - RAB (m) 0 0 0 0 0 Enterprise value (C$m) 150.0 Drilling - Other/Diamond (m) 20,000 20,000 80,000 80,000 80,000 Major shareholders: Land holding ('000 ha) 26 26 26 26 26 Black Rock Inc (16.2%) Tenement costs ($m per year) 0 0 0 0 0 Avg monthly volume (m) 41 Capital raisings (C$m) 3.0 0.0 8.0 3.3 0.0 Cash (C$m) - Mar 11F 31 Funding from JV partners (C$m) 0.0 0.0 0.0 0.0 0.0 Price/Cash (x) 5.8 Cash (C$m) 33.8 31.0 43.4 31.0 28.0 Price/Book (x) 0.0 Cash backing (C¢/share) 33.2 30.4 46.2 30.4 27.1 Listed company options: No Net asset backing (C¢/share) 71.2 70.7 77.3 72.2 74.1 * Quarters are stated on calendar year basis. "F" indicates RCR forecast. Investment Points Company Comment Overview: Ur-Energy listed on the TSX Nov. '05 and the NYSE- AMEX in Jul ‘08. Its most advanced uranium URE is focused on uranium in Wyoming, where it holds projects are roll front style with in-situ recovery (ISR) potential in the Great Divide Basin, WY. resources (equity) of 25.6mlbs U3O8. Wyoming ISR Projects (Great Divide Basin): URE holds +50,000 mineral acres of claims in Wyoming. Its key priority is to advance Lost Creek. Other, earlier stage projects include LC North and South, Lost Soldier, EN (Eagles Nest) and the Bootheel JV. Historic resources total +60mlbs U3O8. Lost Creek ISR planned rate 1mlbspa U3O8 with mill Lost Creek: The resource is defined along a 4.8km (3 miles) strike with mineralisation occurring in 4 main capacity 2mlbspa, low opex of US$19.66/lb, pre- sandstone horizons between 96m (315 feet) and 213m (700 feet) deep. Mineralised beds average 4.9m (16 feet) thick. URE expects leach recovery of 80%. The most recent NI 43-101 Preliminary Assessment (March production capex $35.1m (spent $24m to date). 2011) considers 6 year life of mine (LOM) pre-production capex of US$35.1m (with 10% contingency for ISR plant [$17.5m], plus engineering, drilling, etc), life-of-mine capex $85.6m, cash opex of US$19.66/lb for Draft NRC Source Material Licence for Lost Creek production of 1mlb/yr U3O8 (plant capacity 2mlb with potential for satellite or toll treatment). Considerable received in January 2011, permitting risk reduced. capex on infrastructure and equipment ($24m) has already occurred. Initial extraction will be from Mine Units #1 and #2 in the HJ horizon (delineated by +200km down-hole drilling), which each consists of multiple roll- fronts. URE’s development plan is to always have three units, or three years’ production (at 1-2mlbs U3O8 per Wyoming is considered uranium friendly and has ISR unit), ahead of permitting and mining. Definition of a third mine unit is planned to include both the HJ and mines at Highlands/Smith Ranch (CCO). underlying underlying KM horizon (potential cost of delineation drilling $13-17m). Lost Creek is in the advanced stages of permitting, and equipment purchasing has started. The NRC Supplementary EIS is expected shortly, as is the NRC Source Material Licence of which a Draft was issued in Jan 2011. Final Grassroots exposure to unconformity style uranium permits from the BLM and WDEQ (Permit to Mine) are expected to follow. In terms of expansion, there are targets in the Thelon and Baker Lake Basins, CAN, and exploration targets at Lost Creek, LC North and LC South. Drilling in 2010 (159 holes for 101.270ft or sandstone-hosted deposits in Nebraska. 30.9km) intersected multiple regional redox fronts. A further 2000-3000 holes are recommended ($15-20m). At Lost Soldier, 22.5km NE of Lost Creek. mineralised horizons consist of 14 sand units at 30m to 137m depth. URE may submit Lost Soldier NRC and WDEQ applications as an amendment to the Lost Creek licences. Cash position at Sep '10 was C$34.7m. Plans for Investment Comment: URE passed our Dec ’10 share price target of C$2.52/share (set when C$30m financing at $3/share on hold due to market ~C$2.20/share), peaking at C$3.35 in January before retreating to the current ~$2. The rise was on the back of volatility and new Lost Creek economic assessment. a buoyant uranium price and lessening risk after issue of the Draft Source Material Licence. The subsequent pullback and bounce was due to the Japan crisis and perhaps influenced in URE’s case by a 14% decrease in Indicated resource pounds at Lost Creek (in 2011 Preliminary Assessment). Based on production at Lost Potential for return to +C$2.50/share at U O US$55/lb. 3 8 Creek with an expanded resource (current 9.4mlbs plus exploration upside), NPV10 for 1mlbspa U3O8 could be C$151m (at C/US 0.90) at LT contract price US$55/lb (current US$60/lb). With other assets, NAV is C$263m URE - Ur-Energy Inc or C$2.50/share, with upside from increasing production to 2mlbspa. Potential share price catalysts in 2011: resource expansion at Lost Creek, award of final permits, and a sales agreement with an energy producer. 3.9 Reserves and Resources/Mineralised Material Resource3.4 upside potential (over 4 projects) could be to Code for reporting mineral resources - Canadian: NI 43-101

Uranium Classification Ownership/ Ore U3O8 Cut Off U3O8 U3O8 U3O8 Eqty 2.9 U3O8 Option Mt^ % ppm Kt Mlb Mlb Reserves 0.0 0.0 0.0 2.4 Resources* Lost Creek Indicated 100% 8.6 0.049 300 3.8 8.4 8.4 1.9 " Inferred 100% 2.0 0.051 300 0.9 2.0 2.0

Share($/Share) Price Lost Soldier Measured, Indicated 100% 9.4 0.065 300 5.5 12.2 12.2 1.4 " Inferred 100% 1.4 0.055 301 0.8 1.8 1.8 Bootheel Indicated 25% 1.3 0.038 na 0.5 1.1 0.3 0.9 " Inferred 25% 4.0 0.037 na 1.5 3.3 0.8 Hauber Indicated 100/25% 0.44 0.170 na 0.7 1.5 1.5 0.4 Total 13.7 30.3 27.1 Jul-10 Oct-10 Jan-11 Jun-10 Feb-11 Mar-11 Mar-10 Aug-10 Sep-10 Nov-10 May-10 Mineralised Material* (est., non compliant w ith NI 43-101) 0.0 0.0 0.0

Source: Bloomberg * Lost Creek Resource calculated by polygonal method. Resource by GT contour method (used for March 2011 Preliminary

Assessment economic analysis) is 5.22mlbs grading 0.055% U3O8 Measured and Indicated, 0.78mlbs grading 0.051% Inferred. ^Reminder that units are metric (tonnes). Contacts Directors Key Projects

Mr Bill Boberg JT Klenda (Chairman) Ownership/ JV Target Process Project CEO and President WW Boberg (President) Project Option Metal Partner Type Route Status Location Tel: 1 (720) 981 4588, Ext 223 T Parker (Ind) Lost Creek 100% U na sandstone ISR Permtting WY (US) Littleton, Colorado JM Franklin (Ind) Lost Soldier 100% U na sandstone ISR Development WY (US) www.ur-energy.com P Macdonell (Ind) EN (Eagles Nest) 100% U na sandstone ISR Adv. Expl. WY (US) Bootheel 25% U Crosshair sandstone ISR Adv. Expl. WY (US) LC North and South 100% U na sandstone ISR Adv. Expl. WY (US) Analyst: Dr Trent Allen Thelon Basin 100% U na unconform. na Early Expl. NT (CN) [email protected] Nebraska 100% U na sandstone ISR Early Expl. NE (US)

Resource Capital Research

Ur-Energy has a pipeline of prospective ISR projects in the Great Divide Basin, Wyoming. The main focus is on Lost Creek, which is ready for construction on receipt of permits. Target valuation has been run at a conservative long-term US$55/lb U3O8.

UR-ENERGY INC, VALUATION

Target Valuation Sensitivity Uranium Price* (Low) (High) Resource/Target Valuation Discount A$m A$m A$m Projects (mlbs) US$/lb for risk + Lost Creek, current resource 8.5 13.24 15% 125 106 181 + Lost Creek area exploration* 26 0.89 40% 26 13 65 + Lost Soldier current resource 14 4.00 30% 62 42 70 + Other resources, equity (Wyoming) 2.6 2.00 30% 6 1 10 Sub Total 51.1 219 162 326 * 24-28mlbs U3O8, average 26mlbs + Cash 32.3 32.3 32.3 + Tax Losses 27.3 27.3 27.3 - Corporate 20.5 20.5 20.5 Sub Total 39.1 39.1 39.1

URE NET ASSET VALUE 258 201 365

Capital Structure Shares 102 102 102 Fully Diluted Shares 108 108 108

URE NET ASSET VALUE PER SHARE :C$/share 2.54 1.98 3.59 URE NET ASSET VALUE DILUTED :C$/share fully diluted 2.48 1.96 3.48

* at LT US$55/lb U3O8

LOST CREEK ISR PROJECT, WYOMING (CURRENT RESOURCE)

Equity Sensitivity LONG TERM URANIUM PRICE^ :US$/lb 40 60 70 80 100 EXCHANGE RATE :C/US 0.90 0.90 0.90 0.90 0.90

LOST CREEK URANIUM NPV @ 10% NOMINAL* :C$m 100% 106 130 144 156 180 LOST CREEK URANIUM NPV @ 10% NOMINAL* :US$m 100% 95 117 129 140 162 NPV/SHARE :C$/share 1.04 1.28 1.41 1.53 1.78

* Includes a pre-production project discount of 15% of valuation: 15% ^Uranium price assumptions are US$68/lb to 2Q11,$65/lb to 1Q12, $60/lb to 4Q17, thence long term price indicated.

LOST CREEK URANIUM PROJECT KEY ASSUMPTIONS*

RESOURCE ESTIMATES Uranium Mt % Mlbs Kt Conceptual Uranium Target Lost Creek current resource, Ind. + Inf. 10.6 0.049 8.5 3.9 Lost Creek area, exploration upside 22.2 0.049 26.0 11.8 Total 32.8 0.049 35 15.6

MINING METHOD ISR (In Situ Recovery)

PROCESS METHOD Solvent extraction (SX) and precipitation

PRODUCTION RATE (U3O8) :tpa 454 (This is 1mlbspa) :mlbspa 1 to 2 Model: 1 year ramp up, 1mtpa ongoing CAPITAL COSTS :US$m 85.6 Pre-production is $35.1m, with initial 10% of borefield RECOVERY - URANIUM :% 80 OPERATING COSTS :US$/lb 19.66 Total cost US$42.65/lb including capex. TAX :% 34 Corp. 15% at Jan '12; Ontario 14%; other 4.9%; land $200k MINE LIFE :Years 7+ Currently two years' production horizons have been defined. TARGET COMMISSION DATE : 1Q12

* These figures are intended to provide only a general indication of project potential scale and economic robustness. Further refinement may result during production, which could commence in 1Q12 after final permitting and construction. Resources are as defined by the polygonal method.

Resource Capital Research

Market Charts: Uranium leveraged funds/securities, energy and uranium spot price charts

Merrill Lynch Uranium Equity Index Uranium Spot Price (U3O8) (US$/lb) 160 1400

140 1200 120 1000 100

800USD 80 (US$/lb) 600 60

400 40

200 20

0 0 01 01 02 02 03 03 04 04 05 05 06 06 07 08 09 10 11 07 08 09 10 ------02 02 03 08 09 04 05 05 06 06 07 10 03 04 07 09 10 ------Oct Apr Oct Apr Oct Apr Oct Apr Oct Apr Oct Apr Apr Apr Mar Mar Mar Jul Jul Sep Sep Sep Sep Oct Apr Oct Jan Jan Jan Feb Mar Feb Aug Sep Dec Aug Sep May Source: Bloomberg Source: Bloomberg

Uranium Focused Energy Fund (TSX:UF.UN) DAX global Nuclear Energy Index Share Price (C$/share) 12 450

400 10 350

8 300

USD 250 6

(C$/share) 200

4 150

100 2 50

0 0 07 08 09 10 07 08 08 08 09 09 10 10 07 07 08 08 09 09 10 10 11 04 05 08 09 10 11 03 01 02 02 03 05 06 06 07 07 08 09 ------Jul Oct Oct Oct Oct Jan Feb Mar Mar Mar Mar Aug Aug Dec Aug Dec Aug Dec Apr Oct Jun Jan Oct Apr Jun Jan Feb Mar May May May May Sep Dec Aug Sep Nov Dec May Source: Bloomberg Source: Bloomberg

Cameco Corporation (TSX:CCO) Paladin Energy (ASX:PDN, TSX:PDN) Share Price (C$/share) Share Price (A$/share) 70 12

60 10

50 8

40 6

C$/share 30 A$/share

4 20

2 10

0 0 05 09 05 06 08 10 01 02 03 04 07 08 02 02 04 06 01 05 08 09 03 06 07 09 10 ------Jul Oct Oct Jan Mar Mar Mar Mar Aug Dec Jan Jun Jan Oct Oct May May Mar Mar Mar Nov Aug Aug Dec May Source: Bloomberg Source: Bloomberg

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Report Contributors

John Wilson: John has a background in mining, finance and equity research. He worked on Wall Street for 6 years and has covered US, Australian and Latin American mining stocks. He has also worked with BHP in their minerals division. Qualifications include an MBA from the Wharton School of the University of Pennsylvania and a Bachelor of Engineering from the University of Sydney.

Tony Parry: Tony has extensive experience in metallurgical process development, (working with MIM Limited for five years) and in mining equity research, equity sales and mining corporate finance (working in London for five years and subsequently Perth). He was a founding Director and CEO of an ASX listed exploration company and has been engaged extensively as a strategic planning consultant to many small-medium enterprises. Tony’s qualifications include a BSc (Hons) in Metallurgy and a PhD in Metallurgy from the University of NSW.

Trent Allen: Trent has a BSc (Hons) and a PhD from the University of Sydney, specialising in the petrology, trace-element geochemistry and economic geology of alkaline igneous rocks. His Australian mining industry experience includes several years with Newcrest’s Cadia Valley gold/copper mines, where he was engaged in resource definition and geotechnical engineering. Trent has also worked as an exploration consultant, university lecturer in geology and civil engineering, and as a newspaper editor with Fairfax in Sydney.

Greg Burns: Greg has over 25 years experience in the stockbroking/trading industry with companies such as Jacksons, Capel Court Capel, BBY, Bain & Co, and BZW/ABN Amro. As an institutional financial analyst, he has covered both the supply and demand side of the resource sector. Greg has substantial experience in corporate work including underwritings, equity raisings and corporate takeovers. Qualifications include an MEc from Macquarie University and a Bachelor of Economics from the University of Sydney. Greg has also completed his Chartered Accounting qualification and the Australian Defence Industry Study program.

Resource Capital Research

Disclosure and Disclaimer

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THE INFORMATION PRESENTED, WHILE OBTAINED FROM SOURCES WE BELIEVE RELIABLE, IS CHECKED BUT NOT GUARANTEED AGAINST ERRORS OR OMISSIONS AND WE MAKE NO WARRANTY OR REPRESENTATION, EXPRESSED OR IMPLIED, AND DISCLAIM AND NEGATE ALL OTHER WARRANTIES OR LIABILITY CONCERNING THE ACCURACY, COMPLETENESS OR RELIABILITY OF, OR ANY FAILURE TO UPDATE, ANY CONTENT OR INFORMATION HEREIN. This report and the information filed on which it is based may include estimates and projections which constitute forward looking statements that express an expectation or belief as to future events, results or returns. No guarantee of future events, results or returns is given or implied by RCR. Estimates and projections contained herein, whether or not our own, are based on assumptions that we believe to be reasonable at the time of publication, however, such forward-looking statements are subject to risks, uncertainties and other factors which could cause actual results to differ materially from the estimates and projections provided to RCR or contained within this report. This report may, from time to time, contain information or material obtained from outside sources with the permission of the original author or links to web sites or references to products, services or publications other than those of RCR. The use or inclusion of such information, material, links or references does not imply our endorsement or approval thereof, nor do we warrant, in any manner, the accuracy of completeness of any information presented therein. RCR, its affiliates and their respective officers, directors and employees may hold positions in the securities of the companies featured in this report and may purchase and/or sell them from time to time and RCR and its affiliates may also from time to time perform investment banking or other services for, or solicit investment banking or other business from, entities mentioned in this report. Australian American Mining Corporation NL, Bannerman Resources Limited, Deep Yellow Limited, Energy and Minerals Australia, Energy Ventures Limited, Greenland Minerals and Energy Limited, Peninsula Minerals Limited, PepinNini Minerals Limited, Toro Energy Limited and Ur-Energy Inc commissioned RCR to compile respective company reviews in this report. In consideration, RCR received from each company a cash consultancy fee of less than $15,000. Paladin Energy Limited and Extract Resources Limited contributed to travel expenses for a recent RCR site trip. RCR may receive referral fees from issuing companies or their advisors in respect of investors that RCR refers to companies looking to raise capital. Those fees vary, but are generally between 0 - 1% of the value of capital raised from referrals made by RCR. RCR received referral fees in relation to recent capital raisings for Globe Uranium Limited, PepinNini Minerals Limited, Uranex NL and Toro Energy Limited. At the date of this report, neither RCR, nor any of its associates, hold any interests or entitlements in shares mentioned in this report with the exception that either or both of John Wilson (either directly or through Resource Capital Investments Pty Limited (RCI)) and associates, or RCI, as trustee of the Resource Capital Investments Fund owns shares in BHP, Rio Tinto, African Energy Resources Limited, Gold Road Resources Limited, and Uranex NL. Analyst Certification: All observations, conclusions and opinions expressed in this report reflect the personal views of RCR analysts and no part of the analyst’s or RCR’s compensation was, is, or will be, directly or indirectly related to specific recommendations or views expressed in the report. Officers, directors, consultants, employees and independent contractors of RCR are prohibited from trading in the securities of U.S. companies that are, or are expected to be, the subject of research reports or other investment advice transmitted to RCR clients for a blackout window of 14 days extending before and after the date such report is transmitted to clients or released to the market. Cautionary Note to U.S. Investors Concerning Estimates of Measured, Indicated and Inferred Resources: RCR publishes mineral resources based on standards recognized and required under securities legislation where listed mining and exploration companies make their exchange filings and uses the terms “measured", "indicated" and "inferred" mineral resources. U.S. investors are advised that while such terms are recognized and required under foreign securities legislation, the SEC allows disclosure only of mineral deposits that can be economically and legally extracted. United States investors are cautioned not to assume that all or any part of measured, indicated or inferred resources can be converted into reserves or economically or legally mined. We recommend that US investors consult Securities and Exchange Commission Industry Guide 7 – “Description of Property by Issuers Engaged or to Be Engaged in Significant Mining Operations” for further information about the use of defined terms and the presentation of information included in this report.

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Resource Capital Research Suite 1306 183 Kent Street Sydney, NSW 2000

T: +612 9252 9405 F: +612 9251 2859 E: [email protected]

ACN 111 622 489