Credit Facility

Under the terms of the facility, the Company has the ability to borrow up to US$100 million from the lead lenders, Bank of Montreal and The Bank of Nova Scotia. The facility has a two year term, and may be extended for a further year with lender consent. Draw downs under the facility may be used for general corporate purposes, including working capital requirements and funding capital expenditures and acquisitions. The facility was arranged by BMO Capital Markets and Scotia Capital as joint lead arrangers. Endeavour Financial acted as financial adviser to Uranium One.

In addition to the funds available under the facility, as at June 15, 2008 the Company's consolidated cash position was approximately US$145 million.

Q2 2008 Sales and Deliveries

In line with the timing for deliveries under existing uranium sales contracts, the Company's attributable sales volume of U(3)O(8) during Q2 2008 totalled 685,000 lbs, an increase of 180% over the 244,300 lbs sold in Q2 2007 and an increase of 142% over the 283,300 lbs sold in Q1 2008.

Kazakhstan

South Inkai - Industrial Production

Uranium One has recently been advised that the Kazakhstan Ministry of Energy and Mineral Resources has, subject to the approval of reserves by the State Committee for Geology, approved the application by the Company's 70%-owned Betpak Dala affiliate for an amendment to the South Inkai subsoil use agreement to increase permitted production levels at South Inkai from 780,000 lbs U(3)O(8) (300 tonnes U) per year to 5.2 million lbs U(3)O(8) (2,000 tonnes U) per year. Uranium One's attributable production at full capacity is expected to be 3.6 million lbs U(3)O(8) per year.

The amendment, previously anticipated to be granted in the first half of 2009, is now expected to become effective in the second half of 2008. South Inkai is continuing to exceed expectations and, from January 1 to the end of May 2008, total pre-commercial production from the mine was approximately 479,500 lbs U(3)O(8) (335,600 lbs attributable to Uranium One).

Sulphuric Acid

The new Kazakhmys Balkhash sulphuric acid plant located in eastern Kazakhstan was commissioned and commenced acid production last month. This plant, which has an annual capacity of 1.2 million tonnes of sulphuric acid, provides Kazakh uranium producers, including the Company's Betpak Dala and Kyzylkum Joint Ventures in Kazakhstan, with a significant additional source of sulphuric acid in the country. While production levels at the Company's operations in Kazakhstan have not to date been constrained by acid supply, the commissioning of the Balkhash plant is expected to ensure that this will continue to be the case.

Dominion Project

During the second quarter of 2008, the Company reached agreement on a new, two year collective agreement covering its unionized workforce at the Dominion Project. The new agreement replaces the 2005 collective agreement, which expired in June 2008. It provides for graduated increases in base salary in line with the Company's expectations, as well as certain medical and pension benefits. The Company wishes to acknowledge the constructive manner in which the union approached the negotiations over the new agreement and looks forward to continued good relations with its workforce at Dominion.

In June 2008, the Company received a certificate of registration from the South African National Nuclear Regulator to commence exploration drilling on a portion of the shallow Dominion Reefs (Ottosdal) extensions. A drilling campaign to test these extensions is scheduled to commence in Q3 2008. -- www.cnxmarketlink.com