Investing in Today's Uranium Market Challenges and Opportunities

1. Investing in Today's Uranium Market Challenges and Opportunities by MZConsulting Inc Milton Caplan, President, Dr. Terry Thompson, Senior Advisor Presented at China Mining 2008 November

2. Outline • Demand for Uranium • Current State of the Market • Strategies for Success

3. Nuclear Power 2008 • Nuclear renaissance takes hold • New orders in China • France starts construction on Flamanville • Contracts signed in the USA • UK Government confirms support for nuclear new build and British Energy to be sold to EDF • Ontario Canada starts bidding process for new units • 36 units under construction, 99 planned and 232 proposed Source: WNA 10/08/08

4. Uranium Supply and Demand tU Source: WNA Market Report “The global nuclear fuel market: supply and demand 2007-2030”

5. 2007 Production • More than half of supply comes from Canada, Australia and Kazakhstan • 7 companies control about 80% of the global production • Ongoing problems at Cigar Lake, Rossing, Uranium One and others limiting production

6. China • Require over 10,000 tons of uranium/year by 2020 • Equal to 25% of current production! • Major new discoveries needed to cope with significant new build • China needs new ‘Elephants’ • Mines close to road, power and mills • >50M lb resource Where is the uranium required to meet China’s nuclear program going to come from?

7. Canadian Based Juniors • Difficult to invest in Majors • Investment in Cameco is restricted • Areva is government owned • Australian mines are owned by large global mining companies • There are about 140 publicly listed junior uranium companies in Canada • No ownership limits at the exploration stage • Most companies own properties not only in Canadian uranium basins, but in the USA, Central Asia, Africa and Australia • Only a small numberare ever likely to enter production • Most explorers don’t have the resources, or permitting and mining expertise to enter production • Many surviving companies likely to be bought out

8. Economic Crisis • The recent global financial crisis has had a major impact • No money for major energy projects • No money for mining

9. Uranium in 2008 • Spot price fall below $50 • Long term price at $75 • Uranium stocks dropping even on good nuclear industry news • Credit is tight to nonexistent. • No money available for exploration • Cash is king

10. Current State of the Market

11. Key Transactions

12. Is it a good time to Invest? • Stock prices are low • Companies need money to proceed with plans • M&A activity has shifted from share exchange to earn-ins to cash purchases as market has weakened. • October 08/08- Cameco’s Grandey said “there will be plenty of chances to form joint ventures with smaller companies that need financing for their projects and have no way to raise any in these credit markets. Other companies can be simply taken over as they trade at dirt-cheap valuations." YES

13. Issues • Juniors want to sell out with good resources estimates and high prices • Reluctant to sell at low prices • Strong belief that prices will rebound in the future • Potential buyers want to take advantage of the low prices • In this market, survival is key So how do we proceed to meet these needs?

14. Strategies for Success Two approaches going forward • Fund exploration programs to “earn in” to a property • Companies need cash to drill • Companies with cash want to protect it • Purchase a company through a combination of shares and cash (Partner approach) • Seller benefits from staying in the market and gets cash in his pocket • Cash buyer benefits from the expertise of the share buyer and more reasonable price • Share buyer expands property portfolio without requiring cash.   • Win-win situation that results in the best price for all parties

15. MZConsulting • Extensive knowledge and experience in the Canadian and international nuclear industry • Canadian-based, same as most junior uranium companies in the world • Continuously monitors uranium companies with emphasis on those believed most likely to succeed • Excellent relationships with these companies • Extensive analytical capability • Provide advice and support to clients looking for uranium investments Work with Asian clients to access uranium supply options at little cost and risk

16. Summary • The future demand for uranium remains strong • The financial crisis has had a major impact on the junior mining sector • Prices of uranium companies are very low and cash is in short supply • Only the best companies with high quality properties will survive • Large users (China) can’t sit back and expect industry to respond in current climate For those with a long term view and cash available, now is an excellent time to get into the market and acquire juniors with good properties/prospects that have “elephant” characteristics

17. Thank You Milton Caplan, President MZConsulting Inc mzconsulting@rogers.com www.mzconsultinginc.com +1.647.271.4442