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Discovering Uranium in Argentina Company Presentation August 2012 1.

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Presentation on theme: "Discovering Uranium in Argentina Company Presentation August 2012 1."— Presentation transcript:

1 Discovering Uranium in Argentina Company Presentation August

2 2 [The presentation and information contained in this document (the “Presentation”) does not purport to contain all information that a prospective investor may require and is subject to updating, revision and amendment. This Presentation neither constitutes nor forms nor should be construed as constituting or forming part of any offer or invitation to sell or any solicitation of any offer to purchase or to subscribe for any securities in UrAmerica Ltd. (the “Company”) or any other body corporate (the “Transaction”) nor shall it or any part of it, or the fact of its distribution, form the basis of or be relied on in connection with any contract therefore. This Presentation has been prepared by and is the sole responsibility of the Company. No representation, undertaking or warranty is made or given, in either case, expressly or impliedly, by the Company or any of its subsidiaries or any of their respective directors, officers, employees, advisers or agents as to the accuracy, fairness, reliability or completeness of the information contained herein or as to the reasonableness of any assumptions on which any of the same is based or the use of any of the same. Accordingly, no such person will be liable for any direct, indirect or consequential loss or damage suffered by any person resulting from the use of the information or opinions contained herein (which should not be relied upon), or for any opinions expressed by any such person, or any errors, omissions or misstatements made by any of them, save in the event of fraud. Prospective investors are encouraged to obtain separate and independent verification of information and opinions contained herein as part of their own due diligence. This document does not constitute a recommendation regarding the shares of the Company. This Presentation is exempt from the general restriction in section 21 of Financial Services and Markets Act 2000 (as amended) (“FSMA”) on the communication of invitations or inducements to engage in investment activity pursuant to the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Financial Promotion Order”) on the grounds that it is directed only at the following, being persons who the Company reasonably believes to be: (a) persons having professional experience in matters relating to investments (being “Investment Professionals” within the meaning of article 19(5) of the Financial Promotion Order); and/or (b) persons who fall within article 49 of the Financial Promotion Order (high net worth companies, unincorporated associations etc.). 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A number of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this announcement. While the Company makes these forward-looking statements in good faith, neither the Company, nor its directors and management, can guarantee that the anticipated future results will be achieved. Any reference to the Company includes its legally owned subsidiaries.] Disclaimer

3 Summary 3  UrAmerica has consolidated the largest uranium-rich land position within the San Jorge Basin in Argentina.  Adjacent to the historic National Commission of Atomic Energy’s (CNEA) high grade Cerro Solo Deposit (15.4M lbs U 3 O 8 at 4,700ppm).  Balanced Board of Directors with experience and success in uranium exploration, mining and investment.  US $10M investment and Strategic Alliance with Cameco, world’s largest uranium producer (October 2011).  Currently drilling 27,000 meters, over 12 months, making this the most aggressive drill program for uranium in Argentine history. Results from first 9,000 meters have shown extensions of mineralization to the North, South and East of the Cerro Solo Deposit, as well as further evidence of the existence of a roll front system within UrAmerica’s areas.  2012 target resource of 15M lbs U 3 O 8.  Medium term target resource of 100M lbs U 3 O 8.

4 4 UrAmerica Overview  UrAmerica Ltd is a private uranium exploration company, incorporated in London in  Main offices in Buenos Aires and operations in the Province of Chubut.  World class mining experience and strong local management.  Maintain an in-house exploration team of over 20 people (geologists, land management, GIS, probing, logistics, assistants, etc.).  Preserve majority control of shareholdings. Shareholders Patagonia Resources Limited (38%) – controlled by UrAmerica’s directors and upper management Cameco (20%) Omar Adra (8%) URU Metals (7%) Resinco (7%) Seed Investors (20%) – mostly friends and family

5 5 Board of Directors & JTC Board of Directors & JTC  Omar Adra - Executive Director & CEO - Founder with over 15 years in management and political affairs. Strong networks in the public and private sectors.  Neil Herbert - Non-Executive Chairman - Former CFO of Uramin (bought by AREVA in 2007 for US $2.5B), and current Chairman & Managing Director of Polo Resources, an investment group who sold its 9% holding of Extract Resources to Itochu.  Ian Stalker - Non-Executive Director - Former CEO of Uramin, Niger Uranium, Berkeley Resources. Currently CEO of Brazilian Gold Corp. Successfully managed eight mining projects worldwide through feasibility studies, development and construction phases.  Hernan Celorrio - Non-Executive Director - Former President of Barrick Gold’s subsidiary in Argentina for 10 years. Opened the Veladero Mine, biggest gold producer in Argentina. Attorney at law specialized in mining, natural resources & foreign investment. Strong institutional & political relationships. A Joint Technical Committee has been formed with Cameco, to develop and oversee the exploration programs and budgets for Cameco’s investment.

6 Cameco Investment & Strategic Alliance  Cameco, the world’s largest uranium producer, invested US $10M for 19.9% equity interest in UrAmerica Ltd in October 2011 (US $50M valuation).  Joint Technical Committee set up to oversee use of proceeds for investment.  Strategic Alliance signed, giving Cameco the option to acquire 70% of each deposit discovered by UrAmerica, by means of the following mechanism: UrAmerica discovers a deposit of ≥ 15M lbs of U 3 O 8 ( compliant; any category). When option exercised, the deposit is transferred to a new JV company, where Cameco pays UrAmerica for 70% interest (price is per lb; varies based on spot market). UrAmerica retains 30% of the JV company and sale/marketing rights of final product. Cameco becomes operator of said deposit and has 5 years to bring it to feasibility, upon which a 2 nd cash payment is made to UrAmerica for any additional lbs discovered in the deposit. Option repeats for every deposit discovered.  Extensive geological and legal due diligence carried out.  This unique Strategic Alliance allows UrAmerica to maintain it upside potential.  UrAmerica fits into Cameco’s Double U plan. 6

7 7 Uranium Sector  Uranium demand driven by nuclear growth, mainly in BRIC countries. In addition, Japan has approved the restart of several reactors.  Production well below demand (difference is met by stock piles and nuclear disarmament, which are limited and diminishing).  Current market uncertainty has created M&A opportunities but has put additional pressure on supply side as marginal projects are set back. UXCWNA

8 6 months2 years6 years 8 Uranium Price  Uranium spot price stable (US $50-$55 per lb) despite Fukushima event.  Long term uranium price at US $62 per lb.  Price above mid-2010 levels.  At current spot price of US $50 per lb, Cameco would pay US $4 per lb if option exercised, according to the Strategic Alliance Agreement.  Analysts (JP Morgan, BMO, etc) predict an increase in price for 2012 and a price of US $80 per lb within the next 3 years.

9 9 Chubut Project – Overview Chile Pan American Silver

10 10 Perfect Mining Environment  Minimal environmental and social risk  Easy access and operations Australia Canada Province of Chubut Argentina

11 11 Land Position  UrAmerica controls more than 258,000 hectares in the Province of Chubut (directly or through joint venture).  Paso de Indios (nearest town with 2,500 people) is pro-mining, along with the other communities in the Central Plateau area as other economic activity is very limited due to problems with drought and volcanic ash.  UrAmerica is well integrated, acquiring as much labor, materials and services in the local community as possible.

12 12 Strategic Land Position  UrAmerica controls most of the strategic land position directly adjacent to and surrounding CNEA’s high grade Cerro Solo Deposit, hosting 15.4M lbs U 3 O 8 at a grade of 4,700ppm, and the Los Adobes Open Pit Mine.

13 CNEA’sDrillholeCNEA’sDrillhole UrAmerica`s Drillholes 13 CNEA’s Cerro Solo Deposit Extends Into UrAmerica’s Properties

14 14 Roll Front Model The Cerro Solo Deposit may be a remnant of a much larger uranium bearing system, which can be located by observing differences in the reduction/oxidation of the host sandstone, already detected in UrAmerica’s areas. Source: Areva Concentrated Uranium Mineralization

15 15 Uranium Bearing Paleochannel  Much of UrAmerica’s land position overlies a paleochannel, which hosts uranium mineralization, providing multiple target potential (16 drill targets already identified).  The Cerro Solo Deposit lays within the paleo- channel but may just be a remnant of a larger system present in the area.  The known boundaries of the paleochannel extend over 120km and are 30km wide (blue dotted line). Graben Target: Extention of uranium ore body Cerro Solo Deposit Evidence of Roll Front in outcrops Calypso Uranium: 322ppm 613ppm (Reported Feb.22)

16 16 Previous Results Shallow Mineralization – High Grade – Possible Roll Front 1.7M lbs U 3 O 8 & 16 Drill Targets Defined

17 17 Aggressive Drilling Program A 27,000 meter drill program (12 months) under way on 7 targets, testing mainly the areas directly surrounding the Cerro Solo Deposit. Initial results show high grade extensions to the North, South & East of Cerro Solo and further evidence of a roll front system.

18 18 Graben Target  Extensive continuation of mineralized bodies detected to the North of CNEA’s properties in the Graben Target. This presents the potential to quickly build up a resource by carrying out infill drilling. In addition, mineralization of the Graben Target remains open on all sides.  Drilling, thus far, has also demonstrated that CNEA’s mineralized bodies extend into UrAmerica’s properties to the West and South.

19 19 Cerro Solo S. & Ganzo Targets The rest of the campaign will test the extensions of known mineralization defined by the CNEA (colored bodies) and pursue the roll front to the South. Roll Front Remnant (has moved to SE)

20 Summary 20  UrAmerica has consolidated the largest uranium-rich land position within the San Jorge Basin in Argentina.  Adjacent to the historic National Commission of Atomic Energy’s (CNEA) high grade Cerro Solo Deposit (15.4M lbs U 3 O 8 at 4,700ppm).  Balanced Board of Directors with experience and success in uranium exploration, mining and investment.  US $10M investment and Strategic Alliance with Cameco, world’s largest uranium producer (October 2011).  Currently drilling 27,000 meters, over 12 months, making this the most aggressive drill program for uranium in Argentine history. Results from first 9,000 meters have shown extensions of mineralization to the North, South and East of the Cerro Solo Deposit, as well as further evidence of the existence of a roll front system within UrAmerica’s areas.  2012 target resource of 15M lbs U 3 O 8.  Medium term target resource of 100M lbs U 3 O 8.

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