BOOMERANG URANIUM & GOLD PROPERTY

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Boomerang Uranium Property
The Boomerang uranium property (the “Boomerang Property” or “Boomerang Project”) is located about 478 kilometers east of Yellowknife, NT and consists of 5 mineral leases and 253 contiguous mining claims covering about 636,948 acres located along the southwestern margin of the Thelon Basin, NT (Figure 1). This property is located about 478 kilometers east of Yellowknife, Northwest Territories and is serviced by ski/wheeled- and float-equipped fixed wing aircraft during winter and summer exploration programs, respectively. The Boomerang Property straddles the southwestern edge of the Thelon Basin edge for about 90 kilometers in a North-South direction and extends basin wards from the basin edge for distances between 7 to 25 kilometers. Uravan’s land position is unparalleled when compared to land ownership in either of the Thelon or Athabasca basins.

In July 2006 Cameco and Uravan jointly acquired (on a 50-50 basis) an additional 88 contiguous mining claims consisting of 227,260 acres covering the basement geology adjacent to the most southwestern Boomerang Property claim block described above (the “Thelon SW” property). This staking effort was part of a larger acquisition program designed to cover prospective basement geology adjacent and adjoining Boomerang Property. 

Cameco – Uravan Joint Venture
The Boomerang Project is a joint exploration effort between Cameco and Uravan.  Effective January 1, 2005 Uravan and Cameco entered into the Boomerang Option Agreement (the “Option”) whereby Cameco was granted an Option to earn an aggregate 60% interest in Uravan’s 100% owned Boomerang Property (the “Boomerang Project”) by funding a cumulative ten million dollars ($10,000,000) in exploration expenditures.  The agreement consists of two options: (1) the first option grants Cameco the exclusive right to earn a 51% interest in the Boomerang Project properties by funding $6,000,000 in exploration expenditures over six year and (2) the second option grants Cameco the exclusive right to earn an additional 9% interest in the Boomerang Project properties by funding an additional $4,000,000 in exploration expenditures.  Upon Cameco earning either a 51% or 60% interest a joint venture will be formed between Cameco and Uravan (collectively the “Parties) with the Parties funding their pro-rata share of future exploration expenditures. Uravan is currently the operator for the first two years of the Option, with the responsibility to plan, organize and carry out Annual Exploration Programs on behalf of Cameco. Cameco is expected to fund 100% of the exploration expenditures to the extent of its minimum earn-in amount. After two years Cameco may elect to become the operator. In 2005 Cameco funded $1,003,516 in exploration expenditures and in 2006 a further $2,198,237 resulting in an aggregated expenditure of $3,201,753 incurred on the Boomerang Project pursuant to the Option.

2007 Planned Exploration Program and Budget
Based on the positive 2006 drill results, Cameco has allocated $4.0 million in 2007 to fund a more aggressive reconnaissance exploration drill program across the northern part of the Boomerang Property. It is estimated this accelerated drilling expenditure will provide Uravan’s exploration team the funds to complete 20 to 25 diamond drill holes along the continuous and highly prospective F- and G- G extension and H-series conductive trends. This widely-spaced (>2000 metre) reconnaissance drill program will attempt to assess the uranium-bearing potential along the entire interpreted length of these conductive trends.

The 2007 technical exploration program as planned will be is a multi-disciplinary program with the following objectives to:

1. Evaluate through widely-spaced reconnaissance diamond drilling the uranium-bearing potential of the Thelon-basement contact along the G-extension and H1 to 8 conductive corridors. 
2. Drill test previous unexplored segments of the F- and G-conductive trends utilizing the information derived from the 2006 drill program and ensuing geochemical investigations. 
3. Map two basement domains within the Boom project in order to assist the 2007 drilling and assist in target definition for the 2008 drill program. 
4. Complete a multi-medium surface sampling geochemical survey (the “Multi-media Survey) over the southern Boom Property (BM and STD claims) and including the jointly held Thelon SW property (BW, ER and SL claims). 

Summary – Boomerang Comparable to Athabasca Unconformity Model
Previous exploration on the Boomerang property discovered the first unconformity-related polymetallic uranium mineralization hosted in Thelon sandstone at the contact with graphitic metasedimentary rocks (Economic Geology, Vol. 84, 1989, pp 143-157). The consistent intersection of precious metal and base metal values in drill holes in association with the uranium intersections clearly adds significantly to the potential future exploration on the Boomerang Property. The U-Au-Ag-Ni-Cu-Co-As metallic signature clearly defines the Boomerang style of uranium mineralization, which is comparable to the polymetallic unconformity-type uranium deposits that occur in the Athabasca Basin such as the high-grade Cigar Lake and Key Lake deposits.

The Boomerang drilling to date has revealed that the geological characteristics present in the SW Thelon Basin are similar to known high-grade unconformity-type uranium deposits in the Athabasca Basin. These features include the presence of significant uranium mineralization:

• located at the unconformity between younger siliciclastic sediments and older basement rocks;
• spatially associated with graphitic pelitic basement gneisses;
• associated with large-scale reactivated basement structures and;
• associated with extensive clay alteration and hydrothermal bleaching.

Although the major uranium deposits in the Athabasca Basin are generally small (i.e. < 1.0 Mt) they can be exceedingly high grade (i.e. McArthur River, 1.4 Mt @ 15% U₃O₈ and Cigar Lake, 900,000 t @ 14.40% U₃O₈) and are generally developed over strike lengths less than one kilometre. Uravan’s exploration objective is to pursue similar Athabasca-type high-grade unconformity-related uranium deposits on the Boomerang Property. Although there is no assurance of making a discovery, Uravan is most excited about the potential for a major uranium discovery based on the previously identified mineralized intersections, an aerially extensive land position that covers a highly prospective basement domain along the margin and beneath the Thelon Basin comparable to segments of the Athabasca Basin and the similarity of polymetallic mineralization to world-class polymetallic uranium deposits that are adjacent to and beneath the south eastern margin of the Athabasca Basin.