Kingsville Dome

The Kingsville Dome property consists of mineral leases from private landowners on about 2,354 gross and net acres located in central Kleberg County, Texas. The leases provide for royalties based upon a percentage of uranium sales of 6.25%.

We hold most of these leases by production, and with a few minor exceptions, all the leases contain clauses that permit us to extend the leases not held by production by payment of a per-acre royalty ranging from $10 to $30. We have paid such royalties on all material acreage. Mineralization is found in the Goliad formation at depths of 600 to 750 feet.

Initial production commenced in May 1988 and continued until July 1999, when depressed uranium prices led to the suspension of production until April 2006. The Company believes there is a significant quantity of uranium remaining at Kingsville Dome.

A radioactive material license and underground injection control permit have been issued. As new areas are proposed for production, additional authorizations under the area permit are required.