ROTTENSTONE NI-CU-PGM PROPERTY

The Rottenstone property is located approximately 130 kilometres NNE of the town of La Ronge, northern Saskatchewan consisting of 8 contiguous mineral dispositions covering 33,009 acres (Figure 1).  Uravan owns 100% of the mineral interest covered by the mineral dispositions as described below.  Claude Resources Inc. (“Claude”) retains a 2% net smelter return (NSR) on one mineral claim, S-106565, and a 0.5% NSR on the adjoining mineral claims within a 3 kilometre distance from S-106565.  Uravan has the option to purchase one-half (1% NSR) of the 2% NSR by paying Claude $1,000,000. By November 30, 2008, Uravan must complete a ‘bankable feasibility study’ on S-106565 or return the mineral disposition to Claude.

The Rottenstone Ni-Cu-PGE Property had been the primary focus of Uravan’s exploration efforts consisting of geophysical, geochemical and diamond drilling activity. The Cu-Ni-PGE target being pursued is that of the previously exploited Rottenstone deposit. The Rottenstone deposit was mined in the mid-late 1960’s, producing approximately 40,000 tons of high-grade ore grading 3.28% Ni, 1.83% Cu and 9.63 g/t PGE.  The extremely high Ni-Cu-PGE grades in association with high contained sulphides (40% to 60%) hosted in a small ultramafic body strongly indicates that the Rottenstone deposit is an extension of a much larger ultramafic intrusive body hosting a much larger high-grade Ni-Cu-PGE deposit in the area or at depth. 

The most significant exploration work completed by Uravan from 1998 to present consists of: (1) a 2,776 line Km airborne Magnetic and VLF-EM geophysical survey, (2) a 130 square kilometre helicopter-borne treetop biogeochemical survey, (3) several ground geophysical surveys consisting of TEM, Magnetic, MaxMin, IP and gravity surveys, (4) several local area B-horizon soil geochemical surveys and, (5) several drill programs resulting in forty (40) BQ-size diamond drill holes completed totaling 5242.7 metres drilled. This exploration work is equally divided between reconnaissance work on a property wide basis and more focused exploration activity conducted within a one-square kilometre area around the previously mined Rottenstone deposit. 

To date, exploration efforts conducted by Uravan have not been successful in finding the extension or source of the high-grade Ni-Cu-PGE mineralization associated with the previously exploited Rottenstone deposit. This less than successful result of Uravan’s cumulative exploration efforts are notably discouraging and a geological conundrum that has required Uravan’s management over this last year to step back in an effort to review the cumulative exploration database in a different manor.  In 2005 Uravan completed additional and new assaying on biogeochemical samples collected in previous years. This assaying program was performed for additional nickel-PGE pathfinder elements that were not available initially. Uravan believes the results of this assaying program, based on evaluating and modeling the entire geochemical data base on the property, and has highlighted an anomalous geochemical corridor from which to focus additional mapping, sampling and geophysical work.