u3o8 corp. presentation_may 27 11

8/3/2019 U3O8 Corp. Presentation_may 27 11

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A Dominant South AmericanFocused Uranium Explorer

www.u3o8corp.comMay 27, 2011

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World Population

Energy use will continue to rise as China & India 1/3 of worlds population becomesmore developed Increasing demand for green energy to reduce carbon footprint.Where will that energy come from?

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Huge Need for EnergyThe East will drive rising energy use

World Energy Use by Country

USA

JapanFrance

S. Korea

China

400

300

200

100

India

Other Asia

China

India

Africa

Europe

Rest of

WorldSouth

America

NorthAmerica

InMillionsofBTU


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Wind = Kauai 550 Km2

Biomass = Rhode Island 4,002 Km2

Ethanol = New Jersey 22,608 Km2

Solar = Washington D.C. 177 Km2

Nuclear =


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Advancing Nuclear TechnologyThe East seeking uranium to feed

aggressive nuclear power buildup

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Escalating nuclear programs

Reactors build is being led by Asia:

439 operating, 62 under construction

484 planned or proposed Over 50% of planned/proposed in China, India & Russia

Chinas aggressive build:

11GWe 40Gwe by 2015 70GWe by 2020 27 under construction of 34 approved

Need ~50mlbs to start them up (35% of 2010 production)

Fuel for life: AREVA & Rosatom selling nuclear plants with life-time

fuel supplies Intensifying competition for uraniumsupply

Mini-reactors: Reduces infrastructure footprint

Compact (5x8ft), sealed units like mega-battery One powers about 20,000 homes (25MW electricity)

Secured underground, refueled every 8-10yrs

Costs US$35m, 2-3yr build

vs. conventional reactors at >US$3b, 5-7yr build

First install planned for 2016

Sources: World Nuclear Association, China Daily, Canaccord Genuity, Hyperion Power Generation; RBCCapital Markets, Asia Times

Small-Scale, Modular Nuclear Reactors will accelerate growth in nuclear power generation

Conventional NuclearReactors


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Strong Uranium Market OutlookSecurity of Supply

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Demand/supply gap ~180mlb uranium supply required for current reactor

fleet worldwide

75% from mined uranium; 25% from secondary supply

2013 US-Russia weapons to fuel (HEU) programexpires; secondary supply shortfall? (14% of total)

Growing competition for supply Asia aggressively seeking uranium supply

China long-term deals Cameco, AREVANew Japanese consortium

Russia trade deals with Australia, Namibia, Kazakhstan

Risk to mine supply Production shortfalls in 2010 at 2nd & 3rd largest mines

Sovereign risks:

Northern Territory in Australia withdraws supportfor Cameco/Paladin project

Coup in Niger

Technical risks Cigar Lake, Olympic Dam

Sources: World Nuclear Association, Cormark Securities,Dundee Securities, Merrill Lynch, Canaccord Genuity

New uranium discoveries becomingincreasingly important to fillprojected supply deficit

400

200

0

U3O8mlbs

Forecast Uranium Supply DeficitEmerging in 2014

Projected demand-lower case


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South AmericaNext Frontier for Uranium

Why South America?Potential:

Same prospectivity (geological) as Africa

Like Africa 10 yrs ago primed for uraniumexploration & development

Political: Favourable regulatory jurisdictions

Corporate:

Projects can be acquired at reasonable value

Fragmented market primed for consolidation

2009 World Uranium Production:South America??

Niger

Namibia

U3O8 Corp.projects

Africa produces 17% of worlds uranium,#4 and #6 in top producing countriesMajor deposits include Rossing, LangerHeinrich, Trekkopje

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Africa17%

Kazakhstan27%

Canada20%

Other14%

Australia16%

Russia

7%

Namibia10%

Niger 6%

Malawi &South Africa

1%

World Nuclear Association


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A Dominant South AmericanFocused Uranium Explorer

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GUYANA

NI 43-101resource

Advanced projects with potential to addsignificant NI 43-101 resources in near-term

Exploration upside

Favourable regulatory jurisdictions

Discovery-oriented, South American

experienced team

ARGENTINA

NI 43-101 resource

COLOMBIA

Multi-commodity

historic resourceA leading explorer focused on uranium& related metals in South America the next frontier


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Discovery-Orientated &

South American Experienced Team

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Technical Experts

Dr. Alberto Belluco, Chief Geoscientist 55+ years S. American uranium experience incl. Argentinas Nuclear Atomic EnergyCommission & International Atomic Energy Commission

Michael Baker, Consulting Geologist image interpretation & structural specialist with 30+ years experience in 30 countries

John Goode, Consulting Metallurgist extensive uranium experience including work at Aurora Energy, Avalon, Denison

Phobe Hauff, Spectral International Inc. pre-eminent expert in spectral identification of alteration minerals

Dr. Boen Tan, Unconformity-Related Uranium Specialist 30+ years uranium experience; instrumental in discovery & developmentof Key Lake deposit in the Athabasca Basin

Stewart Taylor, B.Sc. Hons Geol. President, Mega Uranium

Pablo Marcet, M.Sc., B.Sc. President & CEO, Waymar Resources

Board of Directors

Dr. Keith Barron,B.Sc., Ph.D Founder, co-founded Aurelian Resources

Bryan Coates, CA CFO, Osisko Mining

David Constable, B.Sc., MBA, P.Geo retired VP, Quadra FNXSheldon Inwentash, CA Chair & CEO, Mega Uranium

Richard Patricio, LLB EVP, Mega Uranium

Management Team

Dr. Richard Spencer, B.Sc. Hons, Ph.D, P. Geo President & CEO

John Ross, CA CFO

Dr. Hugo Bastias VP (Argentina/Colombia)

Philip Williams, CFA VP Business Development

Nancy Chan-Palmateer VP Investor Relations

Global uranium exploration, resourcedevelopment, technical & financialmarkets expertise

Extensive South Americanknowledge & experience

Proven record of discoveries &development of large scale mines inSouth America

16moz gold discoveries in Ecuador& Argentina

2Blbs copper in EcuadorDevelopment of mines in Peru &

Guyana


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Capital Structure

U3O8 Corp. Shareholder Base

40% Others

14%Insiders

38%Institutions

8%LargeRetailHolders

TSX-V: UWE

Share CapitalMarket cap(May 16, 2011 at $0.49)

$50m

Cash(Q1 2011)

$20m

Basic shares o/s 103m

Options o/s 6m

Warrants o/s* 27m

Fully diluted 136m* Right to accelerate expiry of 11.9m warrants at exercise price of $0.45 per

share if share price exceeds $0.70 for 20 consecutive trading days


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Historic Resource

Colombia: Berlin ProjectPotential for Large Multi-Commodity Resource

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38mlb at 0.13% U3O8 historic resource estimated

on only southern 4.4km of 10.5km trend Historic trench data shows entire 10.5km trend

is prospective

Project located between Colombias largestcities (Bogota & Medellin)

395 MW hydroelectric plant 12km away

60km from main highway

Port on Magdalena River 60km away

Railway line from port being refurbished

CaribbeanSea

Pacific

Historic resourceestimated on onlysouthern 4.4km of10.5km long trend

Drilling started insouth in Sept 2010,

now extendingnorthwards


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Results To Date:

Drilling confirms uranium below surface over 2.5kmand still drilling 10,000m drill program underway

Trenching shows mineralization continues northwardbeyond historic resource area

CROSS SECTION P1Mineralized

Unit

AverageWidth of

Mineralization

(metres)

Assay Values

U3O8

(%)

V2O5

(%)

PO4

(%)

Mo

(ppm)

Y2O3

(ppm)

Re

(ppm)

Ag

(ppm)

3.0 0.11 0.55 9.57 532 547 6.0 3.9

Average grades intersected in first 20 bore holes reported

Trench & Drill Program - Southern 4.4km Area

Historic Resource


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350kg/tSulphuric Acid

92% Uraniumrecovery

~50% Vanadiumrecovery+

PhosphoricAcid+

Historic ResourceColombia: Berlin Project

Fundamental breakthrough?Rethinking historic metallurgical test results

Facts:

Most metals of potential economic interest in Berlin are in phosphate minerals (eg. apatite)

Proven process fertilizer companies routinely dissolve phosphate in sulphuric acid to makePhosphoric Acid for fertilizer

Same process expected to generate phosphoric acid + dissolved metals in Berlin Project

U3O8 Corp. metallurgical testing aims to:

1. Separate heavier phosphate minerals from lighter carbonate & quartz

Dense medium separation

Floatation (used by Arafura Resources on its Nolans Bore deposit)

2. Then dissolve smaller quantity of phosphate minerals in sulphuric acid lower acid consumption

Produces phosphoric acid that contains dissolved metals

Strip dissolved metals from the phosphoric acid

Historic met tests at Berlin: show that this process works


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Goals:

Convert historic resource into NI 43-101(southern area)

Define overall size of the Berlin project throughexploration drilling

2011 Plans:

10,000m drill program underway in southern area Continue exploration drilling into northern area

to show potential upside to historic resource

Prelim metallurgical results

Infill drilling for initial NI 43-101 of 20-25mlb

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Uranium Phosphate

Yttrium Vanadium

Vanadium & Molybdenum Uranium for nuclear power Phosphate for fertilizer Vanadium for industrial batteries Yttrium heavy rare earth - lasers Molybdenum, rhenium for steel

Historic Resource



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NI 43-101 ResourceArgentina: Laguna Salada Project

Potentially Amenable to Low-Cost Mining

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Free-digging, near-surfaceuranium-vanadium

Uranium-vanadium within 3m from surface in soft gravel

Similar to Namibian & Australian deposits in semi-deserts

Results to Date:

Initial NI 43-101 uranium & vanadium resource

Simple & inexpensive sieving increases grades by 4-12x leading to head gradeof 550-580ppm for uranium

Acid leach tests yielded good recoveries

2011 Plans:

Grow resource by exploring extensions of Laguna Salada as wellother similar targets to increase to 20-24mlb in region

Metallurgical testing ongoing

NI 43-101Resource Class

Grade U3O8(ppm)

Grade V2O5(ppm)

U3O8(mlb)

V2O5(mlb)

Indicated 60 550 6.3 57.1

Inferred 85 590 3.8 26.9


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NI 43-101 Resource

Argentina: Laguna Salada ProjectCharacteristics of Caliche-Type

Uranium-Vanadium Systems

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Low-Cost Exploration & Mining

Favourable topographySkim off top of mesas = negligible strip ratio

Unconsolidated gravel No blasting, no crushing

Cheap & efficient to explore

Beneficiation very effective & cheap

Grades increase by simple screening:12x in Guanaco (88% of contained U & 39% of contained V goes to fines): ~90% of resource4x in Laga Saco (96% of contained U & 61% of conained V goes to fines): ~10% of resourceFor uranium, would lead to head grade of 550-580ppm from free-digging, at surface mineralization

Typical of head grades of similar peer deposits elsewhere in the world such as Langer Heinrich, Namibia

Recovery acid leach effective for U & V

Extract vanadium as a saleable product important environmental factor

SampleArea

Screen Test % Metal RecoverySulphuric

AcidPer Tonne

U-VConcentrated in

% MaterialUranium Vanadium

Guanaco 8% 74% 86% 17kg

Lago Seco 26% 96% 71% 53kg

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LagunaSalada

Alberto

Picaso

Argentina: Next TargetSurficial Uranium Potential

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Exploration of surficial uranium targets nowfocusing on Santa Cruz Province

Similar resource potential as Laguna Salada

Free-digging, near-surface mineralization

Initial exploration through excavation of

pit/trenches

Navidad Project(Pan American Silver)

Cerro Solo

State-owned uranium deposit

U3O8 Corps project near NI43-101 resource

U3O8 Corps next targets

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NI 43-101 ResourceGuyana: Kurupung Project

Similar to Deposits in Production or AwaitingPermitting in Other Parts of the World

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Geologically similar toalbitite-hosted depositsworldwide, which typicallycontain 60-130mlb of uraniumwithin multiple structures.

Kurupung Project hassimilar size potential

Michelin

Coles Hill

KurupungProject

Lagoa Real

Ukrainedeposits

Albitite-Hosted Uranium Deposits Occur Worldwide

Deposit Country Resource Grade Depth(m)

Status

U3O8 mlbs % U3O8

Kurupung Guyana 30-35* 0.09 200 Resource expansion

Lagoa Real Brazil 220 0.25 300 In production

Severinskoye Ukraine 130 0.10 700 Awaiting permitting

Michelin Canada 97 0.10 850 Awaiting permitting

Valhalla-Skal Australia 80 0.09 650 Awaiting permitting

Coles Hill U.S. 77 0.10 450 Awaiting permitting

Michurinskoye Ukraine 70 0.10 700 In production

Vatutinskoye Ukraine 66 0.10 500 In production

In production

Awaiting permit

Kurupung Project

*Conceptual targetincluding 7mlb NI 43-101resource

Valhalla


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NI 43-101 Resource

Guyana: Kurupung ProjectAricheng South compared with Michelin Deposit

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Michelin Deposit

1200m

U3O8 Corps Aricheng South

(shown at same scale & color scheme)

43-101 Resource: 3.7 million lbsU3O8 (Indicated)

0.8 million lbs U3O8 (Inferred)

Average grade: 0.09% (1.8 lbs/st) U3O8

Strike: 320 metres

Depth: 230 metres

Dip: ~ 60Aricheng South similarities with Michelin Deposit

Basement-hosted

Mineralization hosted in fault & shear-zonestructures with brecciation

Diagnostic alteration is albite classified as albitite-hosted uranium mineralization

U3O8 grade & distribution in clearly defined shoots


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NI43-101 Resource

Guyana: Kurupung ProjectClear Path Towards 50 Million Pounds U3O8

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Goal: Show Kurupung could host 50mlbResults To Date:

Estimated 30-35mlb* conceptual resourceso far, all structures still open

Could grow resource by drilling deeper

Most uranium lies within demagnetized

faults (blue-green areas)

2011 Plans:

Scout drilling along trend to growconceptual resource to 40-50mlb

Infill drilling underway to increase currentNI 43-101 7mlb to 20-25mlb

Kurupung Emerging into Potentially Large Uranium District

Clusters of uranium-bearing structures outlinesignificant size potential of the Kurupung system

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ACCORI AREA

ARICHENG NORTHCOMPLEX

ARICHENG WEST

COMPLEX

*Includes 7mlb NI 43-101 resource


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Book-Ends for

Kurupung EconomicsMichelin vs. Coles Pre-Economic Assessment

PEER DEPOSITS MICHELIN COLES HILL

Total Contained U3O8 97mlb 77mlb

Depth 850m 450m

Average grade U3O8 0.09% 0.1%

Annual production 5.7mlb 2.0mlb

Life of mine 17 years 35 years

IRR 19.4% 36.3%

NPV $914m $404m

Discount rate 8% 7%

Pay-back period 4.7 years 2.5 years

Direct cash costs $28.57/lb$36.83/lb

($30/lb first 10yrs)

Initial capex$984m

(incl. $132m contigency)$203m

(incl. 25% contigency)

Recovery 87.5% 83%

L/T uranium price $75/lb $65/lb

Mining methodOpen pit to 175m

Underground to 850mOpen pit & Underground

Coles Hill project in Virginia

Michelin project in Labrador

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Growth ProfileNear-term potential for

significant pounds in the ground

A dominant South American Uranium Discovery Companywith growing resource portfolio aimed at:

2011 2012

ARGENTINALaguna Salada

NI 43-101 10mlbin Q1Explore next target

Grow NI 43-101 to20-24mlb

Potential budget: $2.0-$2.5m

GUYANAKurupungProject

Current NI 43-101 7mlbGrow size potential30-35mlb conceptual

Grow NI 43-101 to 20-25mlbShow 40-50mlb potential

Potential budget: $5m-6m

COLOMBIABerlin Project

Historic 38mlb

Prelim met resultsInfill drilling for NI 43-101

Initial NI 43-101 of20-25mlbShow growing size potential

Potential budget: $6m-7m

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Set up forsimilar growthprofile in 2012


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Richard Spencer, President & CEO

[email protected]

Nancy Chan-Palmateer, VP IR

[email protected]

(416) 868-1491

www.u3o8corp.com

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u3o8 corp. presentation_may 27 11

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