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Compelling New Estimate Ups

Roughrider Resource 130%

By Nancy E. Roth, Managing Editor

Hathor Exploration Ltd. capped a year ofdramatic discoveries at its 90%-owned

Roughrider deposit with an announcement onTuesday that a new resource

estimate had expanded the resource 130%, to 27.8million pounds U3O8. A

complete NI 43-101 report is slated to come outin January.

Based on data from 149 drill holes, the reportby SRK Consulting put 17.2

million pounds U3O8, with an average grade of1.98%, into the Indicated

category; 10.6 million pounds meanwhile wentinto the Inferred category, with

an eye-popping average grade of 11%.

Resource Estimates for Roughrider Deposit

(2010 vs. 2009)

2010 Estimate 2009 Estimate % Change

Category Contained

U3O8*

Grade

(% U3O8)

Contained

U3O8*

Grade

(% U3O8)

Lbs.

U3O8 Grade

Indicated 17.2 1.98 6.6 2.56 161% -23%

Inferred 10.6 11.03 5.5 2.97 93% 271%

Total 27.8 2.88 12.1 2.73 130% 6%

*MM Pounds

Sources: Hathor Exploration Ltd. and Dundee Capital Markets

Apart from the resource ore grades, which are inline with those of other

mines in Saskatchewan’seastern AthabascaBasin, a remarkablefeature of the

report is its use of three estimation methods inanalyzing the data, all of which

produced similar results. The team verified theresults by conducting checks on

Zones 5 and 100, the report said. “Allvalidation checks confirm that the block

estimates are appropriate and reflect theunderlying borehole sampling data,”

the statement noted.

see Compelling New Estimate on page 8

continued from Compelling New Estimate on page1

Recovering Investor Cred

In November 2009 Hathor released an estimateshowing a total

resource of only 12 million pounds at grades of2.56-2.97%, half

of which were in the Inferred category.

For most deposits there would be nothing to beashamed about

in those numbers, especially in an initialestimate. But investors

were expecting far more, based on spectaculardrill results Hathor

had reported in early 2008.

That year the new exploration wunderkind saw itsshare price

rocket from about
.50 to a high of $4.37 inabout six months.

But the price settled into the range of$1.50-2.00 after the global

economy fell, and the 2009 resource estimate didnothing to lift

it out of that funk.

An individual close to the company told FCW that Hathor

principals did not think the 2009 report hadaccurately reflected

what was in the resource. “It wasn’t the bestjob ever done,” said

the individual.

Vol. 9 • No. 403 • December 2, 2010 fuelcycle.blogspot.com 9

Andrea Jennetta

carni.klirs@gmail.com

David Talbot of Dundee Capital Markets agreed. “Therewere too

many gaps” in the reported data, he told FCW.

That is why Hathor followed up with a rigorousdrilling campaign

in the winter of 2010. The drilling producedsome 24,300 sample

intervals and about 420 specific gravitymeasurements, according

to the release. The release included a plan mapof the deposit

dotted with the pierce points of the drillholes, as shown below.

“It looks like someone sprinkled pepper over themap,” FCW was

told, “but that is infill drilling done with amethodic approach,

based on information that was available fromother drilling.”

Yet to Come: Roughrider East

About 60-100 meters to the east of theRoughrider deposit is a

similar deposit, Roughrider East, which Hathordid not include

in this week’s resource estimate.

The explorer has not generated enough data todemonstrate

its potential or establish whether the twodeposits are actually

one, and the gap between them will be the focusof this winter’s

drilling campaign. But what Hathor has publishedabout it is

tantalizing.

“At Roughrider East we see 140 meters of robustsections…and

some of the strongest holes (7.75% over 63.5meters, including

24.3% over 17.5 meters) and most compellingdrill fences on the

entire project,” Talbot wrote in his report toclients this week. As

drilling continues, “Roughrider and RoughriderEast are anticipated

to continue to grow…particularly at Roughrider East.”

Hathor executives clearly think the two areconnected. During a

webcast conference call on Tuesday, AlistairMcCready, Hathor’s

exploration manager, told investors, “They arethe main zone

and the east zone, but I view them as one zone.You need to

put Roughrider and Roughrider East in the samescenario.

Roughrider may give us a better starting point.”•