In May 2011, URI entered into a joint venture agreement with Cameco Texas, Inc. (“CTI”), a subsidiary of Power Resources, Inc., which is a subsidiary of Cameco (NYSE: CCJ), for a three-phase,
three-year exploration program on the Los Finados property,
URI also secured the exploratory drilling permit from the Surface Mining and Reclamation Division of the Railroad Commission of Texas. Having completed the joint venture agreement and obtaining the drilling permit, on June 21, 2011, URI initiated the first phase of the drilling program. This phase of the exploratory drilling, which was completed in November 2011 at a cost of approximately $1 million, was done using a widely and evenly spaced program covering a grid designed to test the potential for uranium mineralization over the entire area. Specifically, the objective was to identify oxidation-reduction interfaces within the wide-spaced drilling. Phase II of the joint Los Finados exploration project started in December 2011 with drilling activities concluding in August 2012. Under Phase II, 40 holes were drilled at an average depth of 1,327 feet. Both parties have agreed to delay a decision to proceed with Phase III until December 31, 2012. At the conclusion of the exploration program, the parties may enter into an operating joint venture to develop and produce any discovered uranium resources and reserves.