Briefing on Uranium Recovery Industry: FY-2008

1. Briefing on Uranium Recovery Industry: FY-2008 Prepared for NRC/BLM Uranium Workshop Prepared by: Christopher S. Pugsley, Esq. Partner, Thompson & Simmons, PLLC

2. Uranium Recovery Overview: Introduction • International and National Policies Have Created New Interest in Nuclear Power; • Generally, Most Advocates and Opponents of Nuclear Power Focus on the Back-End of the Nuclear Fuel Cycle: • Nuclear Power Reactors; • However, It is Just as Crucial to Efficient and Effective Nuclear Power Production to Have a Strong Front-End of the Nuclear Fuel Cycle: • Uranium Mining/Milling: • Spot-Market Price as High as $140/Lb. (Summer-2007) and Now Rests at $65/Lb.

3. Uranium Recovery Overview: Industry Trends & Proposals • Not Including Agreement States, NRC Anticipates As Many As: • Twenty-One New Uranium Recovery Sites (Mostly In Situ Uranium Recovery (ISR)); • Ten Restarts or Expansions of Existing Uranium Recovery Facilities • Regulatory and Industry Should Be Focused on: • “Streamlining” the Licensing/Permitting Process; • Coordinating with Other Regulatory Entities

4. Uranium Recovery Overview: New Projects • NRC States Have Several Proposed Projects for Which License Applications or Letters of Intent Have Been Submitted (List Not Exhaustive): • Nebraska: Crowe Butte (North Trend Expansion/License Amendment) (Three Crow/Expansion); • Wyoming: Ur-Energy (Lost Creek/New License); Uranium One, Americas (Moore Ranch/Antelope/New License); COGEMA (Christensen Ranch/Facility Restart); Uranerz Energy (Hank and Nichols/New License); Power Resources, Inc. (Gas Hills/Expansion); Kennecott Uranium (Sweetwater/Facility Restart); • South Dakota: Powertech Uranium (Dewey Burdock/New License); • New Mexico: Hydro Resources, Inc. (Crownpoint Uranium Project/New License Issued); Strathmore Minerals (Roca Honda/New License)

5. Uranium Recovery Overview: New Projects • Uranium Production Companies Have Submitted Applications for Primary ISR Production Projects Over the Past Year: • Crow Butte Resources (Cameco Resources) (North Trend Expansion, NE); • Energy Metals Corporation (Uranium One) (Moore Ranch, WY); • Uranerz Energy Corporation (Nichols Ranch, WY); • Ur-Energy Corp. (Lost Creek, LLC) (Lost Creek, WY)

6. Uranium Recovery Overview: New Projects • Four ISR License Applications Have Been Submitted to NRC and Noticed for Potential Public Hearings: • Crow Butte/Cameco: Currently in Administrative Hearing: • Standing and Admissible Contention Determination Currently on Appeal at Commission; • Outstanding Contentions Still Remain to Be Evaluated • Energy Metals/Uranium One: No Hearings Requested • Uranerz Energy: Hearing Request Deadline on August 15, 2008 • Ur-Energy/Lost Creek: Hearing Request Deadline in September 8, 2008

7. Uranium Recovery Overview: “Streamlining” • “Streamlining” is Already Being Put Into Effect: The New NRC ISR Generic Environmental Impact Statement (ISR GEIS): • Created in Response to Increased Interest in Uranium Recovery and a Lack of Resources; • Created So That Environmental Analyses Under the National Environmental Policy Act (NEPA); • Created So That Environmental Analyses Would Not Be Redundant and That Such Analyses Would Not “Re-Invent-the-Wheel”

8. Uranium Recovery Overview: NRC’s ISR GEIS • Current Schedule for ISR GEIS: • Scoping Report for GEIS: Issued July, 2008 • Draft ISR GEIS: Issued July 25, 2008 • Public Comments: Proposed 60 Days (October 7, 2008) • Draft GEIS Hearings: 8 Public Hearings (SD, NE, NM, WY) • Final GEIS: Anticipated June, 2009

9. Uranium Recovery Overview: “Streamlining” • “Streamlining” is Also Viable Through the Use of Memoranda of Understanding (MOUs): • Overlap in Regulatory Process Should Be Solved Via Coordination and Not Rigid, Segmented, & Redundant Reviews: • Environmental Assessments (EAs) Should Be Coordinated and Not Separate So That Review Process is Not Unnecessarily Extended; • Previous Analyses Should Be Applied As Appropriate and Incorporated by Reference; • Regulatory Agencies Should Use MOUs to Focus and Simplify the Licensing Process

10. Uranium Recovery Overview: Conclusions • Nuclear Utilities Will Require New Sources of Uranium After The Cessation of the Russian HEU Agreement and Depletion of Available Inventories; • Groups Such as the National Mining Association (NMA) Stand Ready to Assist Regulators With Efforts At “Streamlining” and Coordination, Where Appropriate; • With Applications for New Facilities Already Being Reviewed, The Time for These Efforts is NOW