20110909 Uranium

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September 9, 2011Industry Update

Rob [email protected](416) 849-5008(866) 442-4485

Sales/Trading — Montreal: (514) 845-8111, (800) 465-5616; Toronto: (416) 363-5757, (866) 442-4485

See disclosure and a description of our recommendation structure at the end of this report.

E q u i t y R

e s e a r c h

URANIUM REACTION Switzerland’s anti-nuclear stance softening?

Reports from Switzerland indicate that a Senate committee has drafted three texts on nuclear policy that would alkeep the door open for nuclear power, but would ban current generation designs. This appears to be a notablesoftening in the stance of a country that saw its National Council approve three texts that banned construction oall new reactors. The Senate-generated texts would consider Generation-III reactor designs, which are expected toinclude enhanced safety features over the current Generation-II designs.

The Swiss Senate is expected to vote on the new texts on September 28. After which it will then be sent back tothe National Council for debate and vote. Once approved, the cabinet would draft enacting legislation that wouldthen be debated in both houses again.

Switzerland is one of the three countries with the most adverse reactions to nuclear power post-Fukushima (theothers being Germany and Italy). With countries around the world moving forward with nuclear power, the

actions of the Swiss Senate may indicate a softening in their stance.

In other Swiss news, the country’s Federal Nuclear Safety Commission declared that Switzerland’s five nuclearpower stations can cope with the kind of severe flooding that only occurs once in every 10,000 years. Anassessment of their ability to withstand major earthquakes is expected in March 2012.

U3O8 CORP’S BERLIN PROJECT RESOURCE ESTIMATE IS “ON TRACK”

U3O8 Corp. (UWE-TSXV) announced this week that its infill drilling program is proceeding on schedule for itsBerlin Project located in the Caldas province of Columbia. The project, which has a historical resource estimate o38 M lbs of U3O8 at a grade of 0.13%, is expected to have a 43-101 compliant resource estimate in early Q4/2011

Besides uranium, the resource estimate may also include other commodities such as: vanadium, phosphate,

molybdenum, rhenium, silver and yttrium as meaningful amounts of these metals have been encountered in theassay results. To date, 72 bore holes over 16,050m have been drilled as part of a 19,000m infill drill programForty-one holes have been assayed and management notes that the holes confirm the continuity of mineralizationalong strike and across the Berlin syncline. Two drill rigs continue to focus on resource drilling, while trenching iplanned to advance along the whole 10.5km trend

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Premier Gold Mines Ltd. August 17, 2

Rob Chang, (416) 849-5008 2

Exhibit 1. Berlin Project - Location of Trenches and Drill Platforms

Source: U3O8 Corp.

HATHOR ANNOUNCES IMPRESSIVE DRILL RESULTSFROM FAR EAST ZONE

Hathor Exploration (HAT-TSXV) announced drill results from the FarEast Zone of its summer 2011 drilling campaign. Highlights from thresults include 61m grading 1.78% U3O8, 12m grading 2.65% U3O8, 34m

grading 3.34% U3O8, and 42m grading 2.95% U3O8.

These are long, high-grade intercepts that begin 320m to 435m fromsurface. Management approximates the geometry of the Far East Zone tobe 95 m x 35m with an average thickness of 33m. Based on Hathor’sprovided guidelines of a weighted average grade of 2.25% and a densityrange of 1.97 to 5.04 g/cm3, the estimated resource size is between 10.7M

to 27.4M lbs of U3O8 in the Far East Zone. Of course, significanexploration still needs to be done to refine and confirm these estimates.

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Premier Gold Mines Ltd. August 17, 2

Rob Chang, (416) 849-5008 3

Exhibit 2. Far East Zone Drill Plan Map

Source: Hathor Exploration

PALADIN ENERGY’S KAYELEKERA DELAYED A WEEK

Paladin Energy (PDN-TSX) announced that recommencement ofproduction at its Kayelekera mine in Malawi is expected to be delayed by a

week as the company installs additional tanks to store four weeks’ worth oproduction of intermediate wet uranium participate.

TOUGH WEEK FOR URANIUM EQUITIES

Our basket of highlighted uranium names had a tough week as theirperformance from August 31 to September 7 was down 4% on averageSince we highlighted the names on August 24, the basket has gained 7%and has outperformed the S&P/TSX Global Base Metals Index’s return of-1.9%.

Exhibit 3. One-Week Performance of Highlighted Uranium Names

Source: Versant Partners

Company Name Ticker Weekly Since Inception

Cameco CCO -0.4% 3.0%

Uranium One UUU -8.6% -11.6%

Uranium Participation U -1.3% 1.4%Fission Energy FIS -1.4% 40.0%

Kivalliq Energy KIV -17.1% 3.0%

Energy Fuels EFR 4.8% 6.5%

Average -4.0% 7.0%

S&P TSX Global Base Metals Index 4.7% -1.9%

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Uranium Update September 9, 2011

Rob Chang, (416) 849-5008 4 of 6

IF CASH IS KING

Uranium equities trading at the lowest multiples relative to their most recently reported balance sheet cash positions are the following:

Exhibit 4. Top 10 Uranium Companies - Price to Balance Sheet Cash

Source: Versant Partners and Capital IQ

IMPLIED EV/LB VALUATION Applying the concept of mean reversion, a market-implied valuation can bederived by applying the average EV/Lb value to the valuation of eachconstituent company to determine its value if it reverted to the mean.

Exhibit 5. EV/Lb Averages by Development Stage

*Results higher than three standard deviations are removed from the calculation of averagesSource: Versant Partners

September 9, 2011 All figures in $CADPrice/Cash

Continental Precious Minerals, Inc. (TSX:CZQ) Exploration $0.26 13.46 -4.69 0.7x 19.7 51.75

Tigris Uranium Corp. (TSXV:TU) Exploration $0.24 13.60 1.42 1.1x 12.75 56.68

Australian American Mining Corporation Limited (ASX:AI Pre-Feasibility $0.03 9.95 2.69 1.4x 7.26 331.71

Macusani Yellowcake, Inc. (TSXV:YEL) Exploration $0.19 20.48 5.99 1.4x 14.49 107.78

Energia Minerals Limited (ASX:EMX) Exploration $0.08 5.56 1.95 1.5x 3.61 69.50

Alliance Resources Ltd. (ASX:AGS) Development $0.19 64.82 30.97 1.7x 37.26 341.17

Tournigan Energy Ltd. (TSXV:TVC) Pre-Feasibility $0.12 23.25 10.88 1.9x 12.37 193.73

Uranium North Resources Corp. (TSXV:UNR) Exploration $0.17 14.35 5.04 1.9x 7.63 84.44

Powertech Uranium Corp. (TSX:PWE) Pre-Feasibility $0.13 13.43 17.27 2.0x 6.86 103.30

Khan Resources Inc. (TSX:KRI) Feasibility $0.27 14.64 10.00 2.3x 6.27 54.23

Cash

(MM)

Shares

O/SMarket Cap (MM)

Enterprise Value

(MM)Company Name Stage Stock Price

Stage# of

Constituents

43-101/JORC

EV/Lb Avg

Global

Resource

EV/Lb Avg

Producer 7 $7.22 $8.47

Developer 4 $3.83 $3.55

Feasibility 7 $0.66 $0.61Pre-Feasibility 10 $1.40 $1.20

Exploration 32 $1.75 $1.46

60 $1.92 $2.05

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Uranium Update September 9, 2011

Rob Chang, (416) 849-5008 6 of 6

DISCLAIMERS AND DISCLOSURES

Disclaimers

The opinions, estimates and projections contained in this report are those of Versant Partners Inc. (“Versant”) as of the date hereof andare subject to change without notice. Versant makes every effort to ensure that the contents have been compiled or derived from sourcesbelieved to be reliable and that contain information and opinions that are accurate and complete; however, Versant makes norepresentation or warranty, express or implied, in respect thereof, takes no responsibility for any errors and omissions which may be

contained herein and accepts no liability whatsoever for any loss arising from any use of or reliance on this report or its contents.Information may be available to Versant that is not herein.

This report is provided, for informational purposes only, to institutional investor clients of Versant Partners Inc. Canada, and does notconstitute an offer or solicitation to buy or sell any securities discussed herein in any jurisdiction where such offer or solicitation wouldbe prohibited. This report is issued and approved for distribution in Canada, Versant Partners Inc., a member of the Investment Industry Regulatory Organization of Canada ("IIROC"), the Toronto Stock Exchange, the TSX Venture Exchange and the CIPF. This report ishas not been reviewed or approved by Versant Partners USA., a member of FINRA. This report is intended for distribution in theUnited States only to Major Institutional Investors (as such term is defined in SEC 15a-6 and Section 15 of the Securities Exchange Actof 1934, as amended) and is not intended for the use of any person or entity that is not a major institutional investor. Major InstitutionalInvestors receiving this report should effect transactions in securities discussed in the report through Versant Partners USA.

Potential conflicts of interest

The author of this report is compensated based in part on the overall revenues of Versant, a portion of which are generated by investment banking activities. Versant may have had, or seek to have, an investment banking relationship with companies mentioned in

this report. Versant and/or its officers, directors and employees may from time to time acquire, hold or sell securities mentioned hereinas principal or agent. Although Versant makes every effort possible to avoid conflicts of interest, readers should assume that a conflictmight exist, and therefore not rely solely on this report when evaluating whether or not to buy or sell the securities of subject companies.

Disclosures as of September 9, 2011

Versant has provided investment banking services or received investment banking related compensation from Kivalliq Energy andEnergy Fuels within the past 12 months. Versant has not received investment banking related compensation from Cameco, FissionEnergy, Uranium One, Uranium Participation and U3O8 Corp.

The analyst responsible for this research report does not have , either directly or indirectly, a long or short position in the shares or optionsof Kivalliq Energy, Energy Fuels, Cameco, Fission Energy, Uranium One, Uranium Participation and U3O8 Corp.

The analyst responsible for this report has visited the material operations of U3O8 Corp, Uranium Energy Corp, Uranerz Energy andKivalliq Energy. The analyst responsible for this report has not visited the material operations of Cameco, Uranium One, UraniumParticipation, and Fission Energy.

Analyst certification

The research analyst whose name appears on this report hereby certifies that the opinions and recommendations expressed hereinaccurately reflect his personal views about the securities, issuers or industries discussed herein.

Definitions of recommendations

BUY: The stock is attractively priced relative to the company’s fundamentals and we expect it to appreciate significantly from thecurrent price over the next 6 to 12 months.

BUY (Speculative): The stock is attractively priced relative to the company’s fundamentals, however investment in the security carries a higher degree of risk.

NEUTRAL: The stock is fairly valued, lacks a near term catalyst, or its execution risk is such that we expect it to trade within a narrow range of the current price in the next 6 to 12 months. The longer term fundamental value of the company may be materially higher, butcertain milestones/catalysts have yet to be fully realized.

SELL: The stock is overpriced relative to the company’s fundamentals, and we expect it to decline from the current price over the next6 to 12 months.

TENDER: We believe the offer price by the acquirer is fair and thus recommend investors tender their shares to the offer.UNDER REVIEW: We are temporarily placing our recommendation under review until further information is disclosed.

Member-Canadian Investor Protection Fund.Customers' accounts are protected by the Canadian Investor Protection Fund within specified

limits. A brochure describing the nature and limits of coverage is available upon request.

20110909 Uranium

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