Low operating cost solution.

The PhosEnergy Process is free of major waste generation, is cheap to operate and generates a uranium product that exceeds the most stringent converter specifications and the latest American Society for Testing and Materials (ASTM) standard.

The estimated low operating costs indicate commercially robust production is achievable via the PhosEnergy Process in volatile market conditions.

The absence of uranium recovery facilities in phosphoric acid plants today can be explained by the high capital and operating costs of the existing technology with respect to the current uranium market. In addition, the existing uranium recovery technologies have the potential to affect the core business of the phosphoric acid producer through the addition of deleterious impurities. The solvent extraction technologies used during the 1980s for by-product uranium extraction had many operational issues which, in today’s regulatory environment, would make such production difficult to permit and result in higher operating cost.

The PhosEnergy Process has substantially reduced the capital and operating costs of by-product extraction when compared to these existing technologies; Urtek’s Pre-Feasibility level Engineering Study estimates the operating cost for the PhosEnergy Process at less than US$18/lb with well over 90% uranium recovery2. These costs are less than half the predicted operating costs associated with technologies used during the 1970s and 1980s in the recovery of uranium as a by-product from phosphate streams. The operating cost of the historic process if revived in today’s economic climate is estimated to be US$50-70/lb U3O8 which is above current spot prices and at the levels of long term industry uranium price forecasts.

This cost structure places the PhosEnergy Process in the bottom half of the cost curve for all uranium production worldwide and in the first quartile of operating cost estimates for ‘new’ uranium production (production that is coming online over the next 5 years). The estimated low operating costs indicate commercially robust production is achievable via the PhosEnergy Process in volatile market conditions.

2 PFS Study cost estimates were for production in south east USA.