Midwest Project Presentation to Engineering consulting firms

1. Midwest ProjectPresentation to Engineering consulting firms Vincent Lanièce, Director of Project Development September 2006 AREVA Resources Canada Inc.

2. Midwest location

3. Midwest site picture

4. Midwest Project and overall schedule The Midwest project is divided in 4 parts • Mining (Open Pit) – done internally • Transportation (dedicated haul road) – done with local consultants/contractors • Midwest water treatment system – looking for EPCM • Milling - Midwest expansion Project (Increase the JEB Mill production from 12 to 16 Mlbs/y U3O8) – looking for feasibility study Key dates Mine: dam and dewatering of Mink Arm starts in summer 2007 – mine stripping starting in Apr 2008 Water treatment plant, pipeline, road and power line: operational for Apr 2008 Mill modifications: in production by Nov 2009

5. Preliminary Midwest site layout

6. Midwest and McClean road connection

7. Midwest WTP cancelled – located at Midwest SX Addition Molybdenum Recovery Yellowcake Storage CCC Ore Receiving Solution Shipping Oxygen Plant Tailings Neutralization Grinding Circuit Neutral Thickener Preliminary 3D picture of mill expansion

8. 2 services requested from Engineering firm • Midwest water treatment plant system: Detailed Engineering, Procurement and Construction Management • McClean Lake JEB mill expansion: Feasibility Study, including detailed cost estimate and level 1 schedule

9. Midwest water treatment plant “System” - overview • Need to treat water, 25,000m3/day expected, released to the McClean Lake effluent system called “Sink reservoir” (20 km distant). • Current process contemplates: • Combination of membranes and conventional water treatment plants, with the treated water quality greater than the Sask Surface Water Quality Objectives (SSWQO) • Single wall pipe (20 km long) that would carry the treated water from Midwest to Sink Reservoir

10. Midwest water treatment plant “System” – Engineering status • Feasibility study in progress, including flow sheets, P&IDs, detailed cost estimate • The feasibility report should be available by end of November 2006 and will be used as the basis to tender the EPCM portion • Note that the Procurement of the EPCM will be supervised by the Areva Resources Project Contract Manager • Time line short (schedule driven project) as we need to use the 2007 fall season to start construction • System in operation (including commissioning) by early April 2008

11. Midwest Mill expansion - description • McClean Lake uranium mill (called “JEB”) currently expanded from 8 to 12 Mlbs/year – should be in operation by 1st quarter 2007 • JEB expansion to mill Midwest ore: increase of annual production from 12 to 16 Mlbs contemplated, in operation by Nov 2009 • Expansion scope described in the next slides

12. Mill expansion Project scope 16 Mlbs (1/4) Ore receiving: Existing ore pad large enough to receive additional MW ore. Grinding: Capacity OK. Pulp Density: An additional neutral thickener will increase the density up to 50% solid. Pulp Storage: One additional pulp pachuca required Leaching: 3rd leach circuit located in current tailings neutralization vault O2 used as the oxydant with mild pressure leaching (2 bars in average)

13. Mill expansion Project scope 16 Mlbs (2/4) CCC-CCD: No modifications anticipated Clarification: 1 additional sand filter required Pregnant aqueous storage capacity fine Solvent extraction: New extraction circuit (cells available recovered from other uranium mill) Current extraction cells used as Arsenic scrub and water wash cells Stripping and regeneration are OK. Mo, Ni and Co recovery circuits: Assessing potential process and cost/benefit analysis in progress

14. Mill expansion Project scope 16 Mlbs (3/4) YC precipitation: Addition of a second centrifuge and barren strip solution sand filter Calcining/Packaging: Addition of a yellow cake drum storage area (report currently exists) Tailings Neutralization: New circuit – 2 mix tanks followed by 3 tailings neutralization tanks Mill Water Treatment Plant: No change Ferric Sulphate Plant: Addition of a 3rd reactor, ferric sulphate storage tank and iron ore pad to expand

15. Mill expansion Project scope 16 Mlbs (4/4) Acid Plant: Upgrade of the plant from 150 to 285 t/d H2SO4 (acid strength of 100%) Reagents: Additional lime slurry storage Additional ammonia storage tank Ammonium Sulphate Crystallisation: No change Utilities: No change Electrical Substation: No change

16. Midwest Mill expansion – Engineering status • Pre-feasibility in progress, done internally • Pre-feasibility report available by end of November 2006 – it will be the basis for tendering the feasibility study

17. Project organization • Engineering consulting firm in charge of design, cost estimate, schedule • Areva resources Canada Inc. bringing input and in charge of review • Procurement/Contracting: strong interface with Areva Resources Contract Manager • Very close and efficient relation expected

18. Key assets expected from Consulting firm • Engineering team based in Saskatoon, Saskatchewan so that the design control can be done efficiently • Experienced Engineers and project Manager during the entire life of the project with very limited turn-over • Quality system in place • Good understanding of the Uranium/Nuclear industry • Documents and Project cost tracking system available • Tenders submitted in December 2006 with decision made in January and start of work early February 2006