Uranium One announce increase in Kazakh

February 1. Business Report

Uranium One announce increase in KazakhUranium miner Uranium One Inc on Monday announced inaugural reserve estimates for its South Inkai and Karatau Uranium Mines in Kazakhstan, as well as a significant increase in resources at Karatau.

The company also announced the completion of the acquisition of Christensen Ranch and Irigaray in Wyoming and an update to its standstill arrangement with JSC Atomredmetzoloto.

With the addition of reserves at South Inkai and Karatau, total attributable proven and probable reserves in Kazakhstan increased by 400 percent to 47.8 million pounds U3O8, from the adjusted reserve base for Akdala.

The company declared its first reserve at the Karatau Uranium Mine, with attributable probable reserves of 14.6 million pounds U3O8. It also declared its first reserve at the South Inkai Uranium Mine, with attributable proven and probable reserves of 23.6 million pounds U3O8.

At Karatau, Uranium One announced a 12 percent increase in attributable indicated resources to 16.3 million pounds U3O8 and a 373 percent increase in attributable inferred resources to 4.7 million pounds U3O8.

It also announced the closing of the acquisition of Christensen Ranch and Irigaray for $35 million in cash effective January 25, 2010.

Uranium One now has a fully licensed and permitted processing facility which will form the basis of the company’s production plans in the Powder River Basin of Wyoming.

Uranium One also announced that, at the request of JSC Atomredmetzoloto (ARMZ), the company has agreed that ARMZ may temporarily exceed the 19.95 percent standstill under the Framework Agreement between the two companies.

This will enable ARMZ to settle certain option agreements that were entered into with the expectation that the transaction with the JUMI consortium, as originally structured, would have closed by now.

If Kazakh regulatory approval to the issuance of the 117 million common shares underlying the debentures issued in January 2010 to the JUMI consortium is received before settlement of the option agreements, the debentures will automatically convert and ARMZ’s holdings would not exceed the 19.95 percent cap.

If option exercise occurs first, subject to applicable regulatory approvals, which have been received, including FIRB approval in Australia, ARMZ would own approximately 23.2 percent of Uranium One’s outstanding common shares.

If the convertible debentures remain outstanding in 12 months time, ARMZ has agreed to reduce its holdings to the 19.95 percent level at that time.