• U3O8 price: US$65/lb

• Mining cost: C$2/t

• Ore Shipment: C$5.00/t milled

• Toll Milling: C$50.0/t milled

• General and Administrative cost: C$40/t

• U3O8 recovery: 97.5%

• Exchange rate: 1.1 C$/US$

Scott Wilson RPA estimated an open pit discard grade of 0.06% U3O8. This

represents the minimum grade at which material would be sent to the mill, rather than the

waste dump, on the assumption that all material within the pit shell will be mined. To

ensure that the RRZ has a reasonable prospect of economic extraction for a deposit

amenable to open pit methods, Scott Wilson RPA ran a preliminary pit shell using

Whittle Four-X and found that more than 90% of the resource was captured.

The following economic assumptions were used to estimate a breakeven grade for a

potential underground mining scenario:

• U3O8 price: US$65/lb

• Mining cost: C$100/t

• Ore Shipment: C$5.00/t milled

• Toll Milling: C$50.0/t milled

• General and Administrative cost: C$40/t

• U3O8 recovery: 97.5%

• Exchange rate: 1.1 C$/US$

Scott Wilson RPA used 60% of the mining and G&A costs to estimate a marginal cutoff

grade of 0.10% U3O8 for reporting of Mineral Resources. The material with grade

above the marginal cut-off grade, but below the fully costed cut-off grade, represents

mineralization that has a reasonable prospect of economic extraction assuming sunk

development costs and that this marginal material does not displace higher grade

mineralization in the mill feed. The marginal material is included largely for purposes of

maintaining resource continuity, and does not make up a large proportion of the total

Mineral Resource.