Texas Los Finados Exploration Continuing; Kingsville Dome Pond Activities Progressing Well

  • Phase II work on the joint Los Finados exploration project with Cameco is scheduled to be completed in November 2012. Under Phase II thus far, 32 holes have been drilled at an average depth of 1,170 feet with an additional 15 holes planned. Of the total $1.5 million that was committed by URI to complete Phase II, $1 million is being funded by Cameco, who currently has earned a 40% interest in the project and will have 50% interest after Phase II completion. URI has until November 30, 2012 to make a decision regarding moving on to Phase III.
  • In order to accommodate production in New Mexico and be in a position to return to production in Texas, URI is in the process of refurbishing the Kingsville Dome holding ponds. Total capital and operating costs for the refurbishment project is estimated at $2.9 million. URI expects to generate up to 40,000 to 50,000 pounds of U 3O 8 as a by-product of this activity.
  • Continued restoration activities at the Company’s three most recent South Texas projects included approximately 4.5 billion gallons of water processed to date. Restoration activities continue at KVD PA3 and Vasquez PA1 and PA2. Groundwater restoration has been completed at the Rosita PA1 and PA2 well fields, which are currently being monitored for stability. Final closure on these areas is expected by the third quarter of 2012.

Liquidity Position

Cash at June 30, 2012 was $2.8 million compared with $2.9 million at December 31, 2011. As part of the merger agreement, URI has supplied Neutron with $3.2 million in cash for their budget to date and an additional $0.2 million for an asset purchase in the first quarter of 2012. As of August 3, 2012, URI had $2.0 million in cash. URI, at its option, can receive $5 million through the sale of additional shares to Resource Capital Fund V L.P. (“RCF”) at the closing of the Neutron merger. The share price will be based off the lower of $0.97 or the volume weighted average trading price of URI common stock on the NASDAQ exchange of the previous 20 trading days prior to the closing of the merger.

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