Uranium One Announces Record Sales Of 1.7 Million Pounds And Lower Cash Costs

November 15, 2010

Uranium One Announces Record Sales Of 1.7 Million Pounds And Lower Cash Costs

Published on Monday Nov 15 2010

Uranium One Inc. ("Uranium One") today reported record quarterly sales of 1.7 million pounds, production of 1.7 million pounds and a decrease in total cash costs at its operations to $12 per pound sold during the third quarter of 2010. Uranium One's 2010 production guidance remains 7.0 million pounds. The Company's production guidance for 2011 is 10.5 million pounds and 12.5 million pounds for 2012.

Q3 2010 Highlights

Operational Results

* Attributable production during Q3 2010 of 1.75 million pounds was 109% higher than total attributable production of 834,800 pounds during Q3 2009.

* The average total cash cost decreased by 20% to $12 per pound sold during Q3 2010, compared to the average total cash cost of $15 per pound sold during Q3 2009.

* An operating license was issued by the NRC for the Moore Ranch in-situ uranium project in September 2010; this is the first new license granted by the NRC for the development of a new ISR operation since 1998.

Financial Results

* Record attributable sales volumes of 1.7 million pounds for Q3 2010, an increase of 302% compared to 423,100 pounds sold during Q3 2009 and an increase of 12% compared to 1.5 million pounds sold during Q2 2010. Attributable sales volumes during October were 740,700 pounds.

* Revenue increased by 243% to $73.1 million in Q3 2010, compared to $21.3 million in Q3 2009. The average realized sales price was $43 per pound during Q3 2010.

* Earnings from mine operations increased by 197% to $27.9 million during Q3 2010 compared to earnings from mine operations of $9.4 million in Q3 2009. The increase was primarily due to an increase in the pounds sold, partially offset by a decrease in the average realized sales price per pound.

Corporate

* The ARMZ transaction is anticipated to be completed before the end of 2010, subject to receipt of one remaining regulatory approval (from the US Nuclear Regulatory Commission, which is expected to be received by the end of November 2010).

* On the initial closing of this transaction, Uranium One will issue 178 million new common shares to ARMZ for US$610 million in cash, after which a special dividend of US$1.06 per share will be declared and paid to all shareholders other than ARMZ; on the final closing, Uranium One will issue a further 178 million common shares to ARMZ in exchange for its joint venture interests in Akbastau and Zarechnoye.

Jean Nortier, President and CEO of Uranium One commented:

"Uranium One continues to deliver strong operational results from our assets in Kazakhstan. At a time when there is renewed interest in the uranium space, our shareholders are set to benefit from the Company's unhedged sales contract portfolio, excellent production growth profile, industry-leading low cash costs and strong partnerships in the nuclear industry. Our transaction with ARMZ remains on track for completion by the end of 2010 and we look forward to capitalizing on the new opportunities that this transaction will bring to Uranium One."

3 Month Performance Comparison UUU-Uranium One - CCJ-Cameco