some of the other new areas that we have identified, we would not have to go deeper than 500 meters for quite a long time. These areas extend on strike. These extensions move up to the width on strike.

StockInterview: The most recent uranium producers, such as Paladin Resources and UrAsia, have been vague about which utilities are buying their recently mined uranium. Are you selling your future production in Europe, the U.S., or Asia?

Neal Froneman: Most of our contracts are with U.S. utilities. I try not to be too specific because the utilities are the ones who are sensitive about this. Our focus is on the western world and, for now, most of our contracts are with U.S. utilities. Our U.S. strategy is about developing U.S. uranium deposits for U.S. utilities. I think you will get the support of the NRC, you will get the support of the U.S. utilities, and you will command a premium for your production. If there is excess production, we would be open-minded. As long as countries comply with the International Atomic

We recently spoke with SXR Uranium One Chief Executive Neal Froneman in a tape-recorded telephone interview. The problem with Froneman is which to choose from the many ‘news headlines’ he provides during the course of an interview. At least one industry trade reporter told us she thought he was a ‘showman.’ We agree, but we also must emphasize Froneman keeps his promises. If you regularly read the South African press, the country where SXR plans to open the world’s next uranium mine, the oft-quoted concern voiced by mining analysts is whether a mining company is turning ‘promises into production.” Or not.

World-renown for gold and diamond production, South Africa takes mining seriously. We doubt Afrikanners gaze upon the North American resource stock promotion schemes with anything more than a chuckle or umbrage. It appears that only during the past six months did SXR finally win over the majority of mining analysts, especially those tough cookies in Jo’burg.

It has become evident to us that Neal Froneman is one of a handful of uranium mining company chief executives who pushes a project through to production. On a much smaller scale, Paladin Resources’ John Borshoff proved he could execute on his company’s Langer Heinrich deposit in Namibia. Mining is a difficult profession involving a great number of variables. As we’ve seen with Cameco’s Cigar Lake flooding, uranium may be the toughest metal to mine. Certainly, uranium mining is the most regulated and environmentally challenged.

On Tuesday, RBC Dominion Securities analyst Adam Schatzker initiated coverage on SXR Uranium One with an ‘outperform’ rating, writing that SXR “offers excellent exposure to the current strong uranium market with strong production growth and a very large reserve base.” SXR Uranium One’s market capitalization has been quickly approaching US $2 billion since Cameco Corp announced the Cigar Lake uranium mine flood this past October. The company trades on both the Johannesburg and Toronto stock exchanges.

Interview Summary

In the interview below, Neal Froneman compares SXR’s Dominion uranium mine to Cigar Lake, and concludes his mine will become “one of the great uranium ore bodies of the world.” He discussed the Dominion expansion plan to mine up to 7.5 million pounds per year over a thirty-year mine life. Froneman discussed his uranium marketing strategy, how his company will bounce back from the RTZ/Sweetwater disappointment and what sort of uranium acquisition SXR Uranium One will next make and when. After all, they’ve raised a lot of money.

StockInterview: You had announced in previous interviews that SXR’s Dominion mine could rank as one of the world’s Top Ten, possibly one of the Top Five, uranium mines. What makes you say that?

Neal Froneman: We are only scratching the top of the iceberg with Dominion. What we quote as ‘Dominion,’ it is really two ore bodies right next to each other: Dominion and Rietkuil. That’s what we commonly call Dominion. We have just been awarded a number of prospecting permits that are contiguous with Dominion. If you look at the size of that continuity, it’s enormous. Dominion, on its own as it stands right now, is an ore body that is known to have a resource of 350 million pounds. The grades approach 1 kilogram a ton. It’s technically low-risk, shallow mining. That’s a very large deposit. That is starting to rank with the Cigar Lakes, and those types of deposits in size. Of course, it’s much bigger. That is exactly why I say with a lot of confidence Dominion will be seen to be one of the great uranium ore bodies of the world.

StockInterview: How much mine life do you anticipate from Dominion with a resource that size?

Neal Froneman: If you mine three million pounds per year, that’s 100 years of life. Clearly, that’s a silly economic model. Our initial phase of mining takes us up to just under four million pounds. We are working on an expansion plan that would see the production doubling to about 7 to 7.5 million pounds. We would then bring the mine life into the region of thirty years. With these additional prospecting permits, and some of the other new areas that we have identified, we would not have to go deeper than 500 meters for quite a long time. These areas extend on strike. These extensions move up to the width on strike.

StockInterview: The most recent uranium producers, such as Paladin Resources and UrAsia, have been vague about which utilities are buying their recently mined uranium. Are you selling your future production in Europe, the U.S., or Asia?

Neal Froneman: Most of our contracts are with U.S. utilities. I try not to be too specific because the utilities are the ones who are sensitive about this. Our focus is on the western world and, for now, most of our contracts are with U.S. utilities. Our U.S. strategy is about developing U.S. uranium deposits for U.S. utilities. I think you will get the support of the NRC, you will get the support of the U.S. utilities, and you will command a premium for your production. If there is excess production, we would be open-minded. As long as countries comply with the International Atomic E

a handful of uranium mining company chief executives who pushes a project through to production. On a much smaller scale, Paladin Resources’ John Borshoff proved he could execute on his company’s Langer Heinrich deposit in Namibia. Mining is a difficult profession involving a great number of variables. As we’ve seen with Cameco’s Cigar Lake flooding, uranium may be the toughest metal to mine. Certainly, uranium mining is the most regulated and environmentally challenged.

On Tuesday, RBC Dominion Securities analyst Adam Schatzker initiated coverage on SXR Uranium One with an ‘outperform’ rating, writing that SXR “offers excellent exposure to the current strong uranium market with strong production growth and a very large reserve base.” SXR Uranium One’s market capitalization has been quickly approaching US $2 billion since Cameco Corp announced the Cigar Lake uranium mine flood this past October. The company trades on both the Johannesburg and Toronto stock exchanges.

Interview Summary

In the interview below, Neal Froneman compares SXR’s Dominion uranium mine to Cigar Lake, and concludes his mine will become “one of the great uranium ore bodies of the world.” He discussed the Dominion expansion plan to mine up to 7.5 million pounds per year over a thirty-year mine life. Froneman discussed his uranium marketing strategy, how his company will bounce back from the RTZ/Sweetwater disappointment and what sort of uranium acquisition SXR Uranium One will next make and when. After all, they’ve raised a lot of money.

StockInterview: You had announced in previous interviews that SXR’s Dominion mine could rank as one of the world’s Top Ten, possibly one of the Top Five, uranium mines. What makes you say that?

Neal Froneman: We are only scratching the top of the iceberg with Dominion. What we quote as ‘Dominion,’ it is really two ore bodies right next to each other: Dominion and Rietkuil. That’s what we commonly call Dominion. We have just been awarded a number of prospecting permits that are contiguous with Dominion. If you look at the size of that continuity, it’s enormous. Dominion, on its own as it stands right now, is an ore body that is known to have a resource of 350 million pounds. The grades approach 1 kilogram a ton. It’s technically low-risk, shallow mining. That’s a very large deposit. That is starting to rank with the Cigar Lakes, and those types of deposits in size. Of course, it’s much bigger. That is exactly why I say with a lot of confidence Dominion will be seen to be one of the great uranium ore bodies of the world.

StockInterview: How much mine life do you anticipate from Dominion with a resource that size?

Neal Froneman: If you mine three million pounds per year, that’s 100 years of life. Clearly, that’s a silly economic model. Our initial phase of mining takes us up to just under four million pounds. We are working on an expansion plan that would see the production doubling to about 7 to 7.5 million pounds. We would then bring the mine life into the region of thirty years. With these additional prospecting permits, and some of the other new areas that we have identified, we would not have to go deeper than 500 meters for quite a long time. These areas extend on strike. These extensions move up to the width on strike.

StockInterview: The most recent uranium producers, such as Paladin Resources and UrAsia, have been vague about which utilities are buying their recently mined uranium. Are you selling your future production in Europe, the U.S., or Asia?

Neal Froneman: Most of our contracts are with U.S. utilities. I try not to be too specific because the utilities are the ones who are sensitive about this. Our focus is on the western world and, for now, most of our contracts are with U.S. utilities. Our U.S. strategy is about developing U.S. uranium deposits for U.S. utilities. I think you will get the support of the NRC, you will get the support of the U.S. utilities, and you will command a premium for your production. If there is excess production, we would be open-minded. As long as countries comply with the International Atomic

Neal Froneman compares SXR’s Dominion uranium mine to Cigar Lake, and concludes his mine will become “one of the great uranium ore bodies of the world.” He discussed the Dominion expansion plan to mine up to 7.5 million pounds per year over a thirty-year mine life. Froneman discussed his uranium marketing strategy, how his company will bounce back from the RTZ/Sweetwater disappointment and what sort of uranium acquisition SXR Uranium One will next make and when. After all, they’ve raised a lot of money.

StockInterview: You had announced in previous interviews that SXR’s Dominion mine could rank as one of the world’s Top Ten, possibly one of the Top Five, uranium mines. What makes you say that?

Neal Froneman: We are only scratching the top of the iceberg with Dominion. What we quote as ‘Dominion,’ it is really two ore bodies right next to each other: Dominion and Rietkuil. That’s what we commonly call Dominion. We have just been awarded a number of prospecting permits that are contiguous with Dominion. If you look at the size of that continuity, it’s enormous. Dominion, on its own as it stands right now, is an ore body that is known to have a resource of 350 million pounds. The grades approach 1 kilogram a ton. It’s technically low-risk, shallow mining. That’s a very large deposit. That is starting to rank with the Cigar Lakes, and those types of deposits in size. Of course, it’s much bigger. That is exactly why I say with a lot of confidence Dominion will be seen to be one of the great uranium ore bodies of the world.

StockInterview: How much mine life do you anticipate from Dominion with a resource that size?

Neal Froneman: If you mine three million pounds per year, that’s 100 years of life. Clearly, that’s a silly economic model. Our initial phase of mining takes us up to just under four million pounds. We are working on an expansion plan that would see the production doubling to about 7 to 7.5 million pounds. We would then bring the mine life into the region of thirty years. With these additional prospecting permits, and some of the other new areas that we have identified, we would not have to go deeper than 500 meters for quite a long time. These areas extend on strike. These extensions move up to the width on strike.

StockInterview: The most recent uranium producers, such as Paladin Resources and UrAsia, have been vague about which utilities are buying their recently mined uranium. Are you selling your future production in Europe, the U.S., or Asia?

Neal Froneman: Most of our contracts are with U.S. utilities. I try not to be too specific because the utilities are the ones who are sensitive about this. Our focus is on the western world and, for now, most of our contracts are with U.S. utilities. Our U.S. strategy is about developing U.S. uranium deposits for U.S. utilities. I think you will get the support of the NRC, you will get the support of the U.S. utilities, and you will command a premium for your production. If there is excess production, we would be open-minded. As long as countries comply with the International Atomic

at the size of that continuity, it’s enormous. Dominion, on its own as it stands right now, is an ore body that is known to have a resource of 350 million pounds. The grades approach 1 kilogram a ton. It’s technically low-risk, shallow mining. That’s a very large deposit. That is starting to rank with the Cigar Lakes, and those types of deposits in size. Of course, it’s much bigger. That is exactly why I say with a lot of confidence Dominion will be seen to be one of the great uranium ore bodies of the world.

StockInterview: How much mine life do you anticipate from Dominion with a resource that size?

Neal Froneman: If you mine three million pounds per year, that’s 100 years of life. Clearly, that’s a silly economic model. Our initial phase of mining takes us up to just under four million pounds. We are working on an expansion plan that would see the production doubling to about 7 to 7.5 million pounds. We would then bring the mine life into the region of thirty years. With these additional prospecting permits, and some of the other new areas that we have identified, we would not have to go deeper than 500 meters for quite a long time. These areas extend on strike. These extensions move up to the width on strike.

StockInterview: The most recent uranium producers, such as Paladin Resources and UrAsia, have been vague about which utilities are buying their recently mined uranium. Are you selling your future production in Europe, the U.S., or Asia?

Neal Froneman: Most of our contracts are with U.S. utilities. I try not to be too specific because the utilities are the ones who are sensitive about this. Our focus is on the western world and, for now, most of our contracts are with U.S. utilities. Our U.S. strategy is about developing U.S. uranium deposits for U.S. utilities. I think you will get the support of the NRC, you will get the support of the U.S. utilities, and you will command a premium for your production. If there is excess production, we would be open-minded. As long as countries comply with the International Atomic

some of the other new areas that we have identified, we would not have to go deeper than 500 meters for quite a long time. These areas extend on strike. These extensions move up to the width on strike.

StockInterview: The most recent uranium producers, such as Paladin Resources and UrAsia, have been vague about which utilities are buying their recently mined uranium. Are you selling your future production in Europe, the U.S., or Asia?

Neal Froneman: Most of our contracts are with U.S. utilities. I try not to be too specific because the utilities are the ones who are sensitive about this. Our focus is on the western world and, for now, most of our contracts are with U.S. utilities. Our U.S. strategy is about developing U.S. uranium deposits for U.S. utilities. I think you will get the support of the NRC, you will get the support of the U.S. utilities, and you will command a premium for your production. If there is excess production, we would be open-minded. As long as countries comply with the International Atomic Energy Agency requirements, we would consider selling to them, but our primary market would be the United States. Where we’ll get our best deal, we will do our best deal.

StockInterview: And for your company’s Honeymoon project in Australia?

Neal Froneman: We are expecting first quarter 2008 production out of Honeymoon. We are already constructing the (ISL) mine. We’ve done further test work. We’ve done pre-production drilling so Honeymoon is a very advanced project. Half of it (the production) is already contracted with U.S. utilities, but there’s no doubt the Australian government has set up a relationship with China. It would be appropriate, I think, ‘when in Rome, you do as the Romans do,’ or you would respect what they would like you to do.

StockInterview: When will you hold the official opening ceremony for Dominion?

Neal Froneman: It is a very significant event, but we would start up and announce that we started production. Then, we would have an official opening. This really ties up into when you can get the appropriate dignitaries to come. When I was at the mine, they had one of these electronic banners that said X days to production. Certainly by the end of February or early March, we are expecting to commence production.

StockInterview: How did you react when you first heard the news from RTZ about the Sweetwater uranium mill, and what do you plan to do with the money you’ve raised for that purchase?

Neal Froneman: I was really, really disappointed. It is a setback, and I would be lying if I said it wasn’t a setback. But, I have to tell you that we’ve not been sitting on our hands while we’ve been closing or working towards closing these transactions. I personally think it was a major mistake why RTZ did it. I don’t fully understand the logic, but it was very disappointing. Certainly, Shootaring (Canyon mill in Ticaboo, Utah) is turning out to be a very nice asset with, I think, more potential than what we initially imagined. That has been nice, but it doesn’t replace Sweetwater. We have to find other assets in the United States, and we have not been sitting on our hands. I can’t tell you much more than that at this stage. But what I can say to you is watch the space. I would say that within this quarter you will see progress. Our view on the United States, despite the disappointing setback on Sweetwater, has not changed. We will be as active as we said we would be.

StockInterview: Where will you focus your attention for acquisition candidates?

Neal Froneman: I think that if you are going to be a uranium company of substance in the space, you have to focus on the advanced projects. I would say it’s not smart to buy assets that are in the early stage of development. I think that the traditional uranium areas in the United States are the ones that I find still exciting. Wyoming is a great place to hold uranium mines. Utah? We are already there. There is great potential in Arizona. I like New Mexico. I think that New Mexico, Arizona, Colorado, Utah and Wyoming are specifically very nice targets. The assets of interest, and probably should be of interest to most people in our space, are assets that are pretty well advanced. These are the ones that have got good historical assets that you can take through the permitting and feasibility study phases quite quickly. Or assets that are already in the process of being permitted. I would suggest this as a smart strategy, and one that we would be doing.

StockInterview: Will you pursue the U.S. listing we talked about in a previous interview?

Neal Froneman: Yes. You really should know that I don’t think you can be a world-class uranium company with the U.S. as a major destination, from an asset point of view, and not have a listing in the United States. Our listing will come. It’s inevitable, and we look forward to that.

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