Uranium

Husab Uranium Targets:

Extract has undertaken an extensive drilling programme in order to develop Husab’s two key areas – Rössing South and Ida Dome - and has consistently reported outstanding drill results.

Rössing South

Located approximately 1.5km from the boundary of the Extract’s licence area and 7km south of Rio Tinto’s Rössing Mine, Rössing South is the first new alaskite hosted uranium discovery in Namibia in many years, and is demonstrating excellent potential to host a significant uranium deposit under the sand cover.

The Rossing South prospect has been defined as the highest grade granite-hosted uranium deposit in Namibia and is the fifth largest global uranium deposit. It has a current total JORC resource of 367 million pounds of U3O8 over four zones:

• Indicated Resource of 257Mlb U3O8 at average grades of 480ppm from Zones 1 & 2  
• Inferred Resource of 110.3Mlb U3O8 at average grades of 400ppm from Zones 1,2,3 & 4

With further drilling scheduled on newly delineated areas, the Board of Kalahari is confident that Extract’s resource base will continue to grow, providing Extract with the ground and cover to support multiple mining operations.

Note: Figures have been rounded and are reported above a lower cut of 100ppm U3O8.

Rossing South	Resource Classification	Tonnes (Mt)	Grade (ppm U3O8)	U3O8 (Mlb)
Zones 1 + 2	Indicated	241.0	480	257.0
Zones 1 + 2 + 3 + 4	Inferred	125.5	400	110.3

Extract is focussed on finalising the Rossing South Definitive Feasibility Study.  This has included extensive drilling campaigns, definitive economic and environmental studies and the initiation of the design of the pilot plant testwork programme.   When finalised in Q4 2010, the study is expected to confirm the preliminary cost estimates, which have already indicated that the Rossing South Project has the potential to support a profitable, long life, low cost, low technical risk uranium mine producing 14.8M lbs U3O8 per year, making it one of the world’s largest uranium mines.

Ida Dome

Having previously been drilled by Anglo American in the 1970s, Extract initiated its drilling campaign at the Ida Dome project in April 2006.  A maiden resource was announced in August 2008 for the Ida Dome Project of 25.1m lbs U₃0₈ within the Garnet Valley, New Camp and Ida Central zones.  These areas have not as yet been closed off and are expected to continue to grow along with future resource drilling on Holland’s Dome, which is also within the Ida Dome Project.  This maiden JORC resource includes results from 28,852m of drilling completed to date at Ida Dome – 48% of the planned 60,000m drilling programme.  This maiden resource is a solid foundation for the uranium resource base and Ida Dome is shaping up as a significant project in its own right.