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About Uranium

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Why Should you Invest in Uranium Now?
Important Facts about Uranium
Uranium Production by Region, 1990-2004
Uranium Production vs. Requirements, 1970-2005
Ux U3O8 Prices
Ux U3O8 vs. CIS* Prices
Ux U3O8 vs. 30-Week Moving Average Prices
Top 10 Uranium Producing Countries

Why Should you Invest in Uranium Now?

China -- 40 new nuclear reactors being built and/or in the planning stages by 2015.
India -- 31 new nuclear reactors being built and/or in the planning stages by 2020.
Russia -- Building or planning 25 more reactors by 2020. They are cutting back exports by 25% to conserve fuel for the plants they will be building.
World Demand will out pace supply by 11% in the coming decade. A 15 year period of inventory liquidation has depleted stockpiles.
Supply -- World production of uranium oxide (U308) concentrate in 2001 rose +9.0% to a 10-year high of 47,395 short tons from 43,475 short tons in 2000. The world's two largest uranium producers are Canada with 16,270 short tons of production in 2001, representing 34% of world production, and Australia with 10,035 short tons of production in 2001, representing 21% of world production. Smaller producers include Niger (with 8.0% of world production), Namibia (6.1%), and the US (2.8%).
Clean Energy -- Saskatchewan exported 5.0 million kilograms of uranium to the US. All of this uranium was dedicated to generating electricity (6.5% of the total US electricity production) and avoided approximately 230 million tonnes of greenhouse gas emissions.

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Important Facts about Uranium

FACT:
Uranium is the fuel used by nuclear reactors to generate 18% of the world's electricity.

FACT:
Uranium is an extremely concentrated and efficient fuel, much more so than oil or coal. The following table shows the extent to which this is true:

	Energy Source		Electricity Produced
	1 kg of firewood 1 kg of coal 1 kg of oil 1 kg of uranium		1 kwh 3 kwh 4 kwh 50,000 kwh

FACT:
Uranium fuel accounts for only 2% to 5% of the operating costs associated with generating nuclear power. A price increase in uranium would therefore have little impact on production costs.

FACT:
The 1997 Kyoto Protocol called for significant reductions in worldwide carbon dioxide emissions. Currently coal, gas and oil account for 63% of the world's energy demands. Since nuclear power is the cleanest form of energy available, it can be expected to play a growing role in helping nations achieve their emission reduction targets.

FACT:
Last year (2004), well-known British environmentalist James Lovelock (best known for his "Gaia Theory" and his role in the start of the green movement) had this to say: "I wholly support the green wish to see all energy eventually come from renewable sources, but I do not think that we have the time to wait until this happens. Nuclear is the only energy source that we could apply in time to offset the threat from accumulating greenhouse gases. Its worldwide use as our main source of energy would pose an insignificant threat compared with the dangers of intolerable and lethal heat waves and sea levels rising to drown every coastal city of the world." He said that nuclear power plants are needed to prevent the awful toll that the burning of fossil fuels (coal, oil, and to some extent natural gas) will cause over the next century.

FACT:
President Bush, as part of his new energy bill, is calling for the construction of more nuclear power plants, the first sought in the Untied States since the 1970's. He acknowledges that coal-burning power plants contribute to global warming, and said that nuclear plants, which do not directly release greenhouse gases, may be part of the solution. Power plants that consume fossil fuels account for 40% of U.S. greenhouse gas emissions. Currently, the U.S gets 20% of its electricity from nuclear power with 103 commercial nuclear reactors operating in 31 states.

FACT:
Nuclear energy has many advantages. It has received a bad rap from some misinformed press and others with their own political agenda. Make no mistake about it -- nuclear energy is actually the cleanest, safest, and most efficient energy (electricity) source there is. The facts prove this.

FACT:
World production of electricity from nuclear power is increasing. There are currently 440 nuclear power reactors located in 31 countries, and an additional 29 are being constructed in 11 countries. The World Nuclear Association reports that at least 8 countries with nuclear power programs (China, Finland, France, India, Japan, Pakistan, Russia and South Korea) have plans to build new power reactors beyond those already under construction. In total, about 35 more nuclear power plants are being planned, with a similar number being proposed. As one might expect, China is leading the way. Even Russia has announced plans to double its nuclear capacity by 2015. In addition, a number of nuclear plants have announced expansion plans, which will increase the demand for uranium even further in the years ahead.

FACT:
For the past few years, mine production of uranium has accounted for only slightly over half of demand. The balance was made up from stock depletion and dismantling of weapons-grade highly enriched uranium (HEU). Further drawdowns from existing inventores and the HEU weapons disarmament program (mostly from Russia) will not be able to meet the forecast supply/demand deficit. In fact, Russia (the world's second largest uranium exporter after Canada) has stated that they are going to limit their exports to conserve fuel for the 25 nuclear power plants they plan to build by 2020.

FACT:
It normally takes several years for new uranium discoveries to be developed into producing mines. Due to the lead time required for new uranium mine development, a significant increase in the market price of uranium will not result in an immediate comparable increase in production. Thus the price for uranium is likely to move much higher and stay there longer -- a benefit to uranium exploration companies.

FACT:
Uranium had its last boom in the 1970's and the price peaked at over $43 per pound in the early 1980's. It then entered a long bear market with the price falling all the way down to $7.10 /lb. in Dec. 2000. Since then, the price advanced to over $20 /lb. in early 2005, and is clearly in a bull market, with most analysts predicting much higher prices in the next few years.

FACT:
Jerry Grandey, CEO of Cameco, the world's largest uranium producer, at a mining conference in Vancouver (Jan. 2005), suggested that the uranium price could hit $30 /lb. before year end. This price prediction has already been surpassed. Morgan Stanely states in their Dec. 15, 2004 "Global Insights" they are forecasting that uranium spot prices will average $45 /lb. in 2006. Dr. Thomas L. Neff, a researcher at MIT stated at the World Nuclear Association Annual Symposium in Sept. 2004 that the looming uranium shortage may become so severe that the price could reach $110.00 per pound within the next five years.

FACT:
If the price of uranium increases significantly as many experts predict, the share prices of companies which produce/explore for uranium will likely increase as well. An exploration company that makes a new economic uranium discovery will almost certainly have an extraordinary share price appreciation.

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Uranium Production by Region, 1990-2004