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During the past several years, the Lac 50 Trend deposits have been evaluated through a series of exploration and delineation drilling programs, and at this relatively early stage, little is known about their potential mineability or metallurgical characteristics. When subjected to estimated technical and economic operating parameters, the base case mineral resource, at a 0.2% U3O8 cut-off, forms a relatively continuous zone with thicknesses and grades that exhibit reasonable prospects for the economic extraction using a combination of open pit and underground mining scenarios. Note that these are generalized evaluations on mineral resources, not mineral reserves, as the true economic viability has not been demonstrated.

A technical report will be filed on SEDAR within 45 days of the date of this news release.

Comparison with the Previous Mineral Resource Estimate

The previous Mineral Resource Estimate for Lac Cinquante (Main, East and Western Extension Zones) was presented in a technical report dated March 1, 2012 and was based on drill results available up to the end of the 2011 field season. The majority of the increase in Lac 50 Trend resources is attributable to the J4 and Ray deposits that were discovered in 2012. Overall, the contained pounds of U3O8 within the Lac 50 Trend have increased 60%, from approximately 27.1 to 43.3 million lbs. U3O8.

Geology Model of Lac Cinquante, J4 and Ray

The geologic characteristics for the Lac Cinquante, J4 and Ray deposits are very similar. Separated by only 1,800 metres and exhibiting the same general trends, it is likely that these three deposits represent the same, or related mineralized structures. Deposits in the Lac 50 Trend are basement hosted, vein-hydrothermal type. The emplacement of uranium is structurally controlled, often associated with a graphite-chlorite tuffaceous metasediment interlayered in Archean metavolcanics. Mineralization consists of disseminated and patchy pitchblende with sulphides within fracture controlled, brecciated, hematite-quartz-carbonate veins that can occur in either the host shear or tuff unit. Potential also exists for unconformity-style uranium deposits to occur on the Angilak Property.

The Lac Cinquante deposit is comprised of three distinct mineralized sections occurring over 3.8 kilometres of strike length and interpreted to be off-set by faults. The central "Main" Lac Cinquante zone is the largest, measuring 1.4 kilometres in drilled strike length, at an azimuth of 115 degrees and dipping to the SSW at roughly -65 degrees. The "Western Extension" is a 120 metre, left-lateral displacement of the Main zone that has a drilled strike length of approximately 650 metres, is oriented at 125 degrees azimuth and dips to the SSW at -70 degrees. The "Eastern Extension" is interpreted as a 250 metre, left-lateral displacement of the Main zone with a strike of 122 degrees azimuth, a -78 degree SSW dip and an overall drilled strike length of approximately 600 metres. The true thickness of the mineralized domain varies from 0.05 to a maximum of 13.5 metres with an average of 2.2 metres.

At the J4 and Ray deposits, mineralization is comprised of several sub-parallel zones. At J4, an Upper and Lower zone are variably separated by five to 35 metres (average about 20 metres). The J4 Upper zone has a drilled strike length of 800 metres and remains "open" along strike and at depth. The true thickness of the J4 Upper zone ranges from 0.2 to 11 metres and averages about two metres. The J4 Lower zone has a strike length of about 500 metres and the along-strike extents appear to be closed by drilling but the zone remains open at depth. The true thickness of the J4 Lower zone ranges from 0.1 to 4 metres and averages 1.5 metres. Ray occurs as a separate mineralized zone about 250 metres SW and in the hanging wall of J4. The Ray zone currently has a drilled strike length of about 300 metres and remains open along strike and at depth. The true thickness at Ray ranges from 0.2 to 1.7 metres and average 0.8 metres. All zones trend at an azimuth of about 120 degrees and dip at -60 degrees to the SSW.