Cyclone Rim and Eagle Uranium Projects, Wyoming, USA

Overview

In June 2006 Black Range Minerals signed an agreement with Uranerz Energy Corporation of the USA to form a joint venture to explore and develop the advanced Cyclone Rim and Eagle Uranium Projects located in the Red Desert area of southwest Wyoming.

Considerable resources of uranium were delineated at both the Cyclone Rim and Eagle Projects during exploration in the 1970’s. Exploration target estimates are approximately 3 million pounds of uranium oxide (U₃O₈) at the Cyclone Rim Project and approximately 2 million pounds of U₃O₈ at the Eagle Project. Both deposits are shallow and amenable to in-situ leaching and/or open-pit mining. With the imminent recommissioning of the Sweetwater Uranium Mill, located just 25km from both projects, the Company could potentially be in production from these deposits in the foreseeable future.

The State of Wyoming, USA and the Red Desert area

Cyclone Rim and Eagle Uranium Projects - Location Plan

No exploration has been undertaken at the Cyclone Rim or Eagle Projects since the 1970’s. The Company has commenced compilation and assessment of historic data. A drill rig will be mobilised to the area during the fourth quarter of 2006.

Sweetwater Uranium Mill, Red Desert Basin, Wyoming, USA

Uranium in the USA

Several months ago Black Range made a strategic decision to diversify into the uranium sector. In doing so it identified certain jurisdictions, all outside of Australia, where regulations support the exploration and development of uranium projects. Wyoming is a particularly favourable jurisdiction, and hosts the largest reserves of uranium in the USA. Wyoming also hosts one of only two large-scale operating uranium mines in the USA.