Athabasca Projects

In December 2009 and in August 2010 Uravan acquired a land position in the Athabasca Basin with its Outer Ring and Johannsen Lake uranium projects. These acquisitions represent a first step in obtaining a major position in this uranium endowed district. The terrain being evaluated is the underexplored and further basin ward structural corridors where historical data is scarce or lacking.  A regional basin-wide compilation has been completed, corridors of interest identified and areas for specific land acquisition selected based on the Athabasca Core Review (described below).

In December 2010, Uravan signed a non-binding Letter of Intent (LOI) with Cameco Corporation ("Cameco") to exchange its 49% joint venture interest in the Boomerang uranium project in the southwest Thelon Basin for Cameco’s 100% interest in the various mineral dispositions making up the Halliday Lake, Poplar Point, Stewardson Lake and Thluicho Lake uranium projects in the Athabasca Basin, Saskatchewan.  On March 25, 2011 a definitive exchange agreement (Purchase and Sale Agreement) between Cameco and Uravan was signed.

In February 2011, Uravan and ESO Uranium Corporation (ESO) entered into an Option to Purchase Agreement (the "Option") whereby ESO granted Uravan an exclusive Option to acquire 100% interest in their Mathison Lake mining claims (S-108465 and S-108466) (the "Math project") in the Athabasca Basin. The MATH project totals 8121 hectares and adjoins Uravan's Outer Ring (OR) project on the north. The Option is exercisable by Uravan over a three (3) year term conditional on: (1) Uravan making a onetime cash payment to ESO amounting to Twenty-five Thousand Dollars ($25,000), (2) Uravan issuing an aggregate of 1,000,000 Uravan Common Shares to ESO, in four tranches of 250,000 Common Shares over three years, and (3) Uravan incurring an aggregate exploration expenditure on the Math project of not less than Two Hundred Thousand Dollars ($200,000).

The properties recently acquired by Uravan from the exchange with Cameco and the Option with ESO will provide Uravan with a much larger exploration footprint in the Athabasca Basin. The properties are considered highly prospective and immediately accessible for uranium exploration in this uranium endowed region. It is Uravan's plan to move quickly to assess the potential of these new acquisitions. Programs and budgets are in place for 2011 to complete multifaceted surface geochemical sampling programs on the Halliday, Stewardson Lake and Math projects. The objective of these geochemical surveys is to evaluate the most probable location of buried uranium mineralization. Pending positive results, potential mineral targets identified will be drilled on some of these projects by late summer 2011.