Samphire Overview

In late 2007, UraniumSA discovered uranium mineralisation within the Kanaka Beds of the Pirie Basin at Samphire, at a location approximately 20 kilometres southwest of Whyalla within the South Australian Gawler Craton.

Subsequent work has shown the Blackbush deposit within the Samphire project could be one of the most significant uranium discoveries in recent Australian history. The successful development of the Samphire project is expected to bring significant benefit to the State and the Whyalla community.

The Blackbush deposit is the most advanced in the Samphire project. The mineralisation defined to date could be sufficient to support a mine life of between five and 10 years. This projection is expected to be extended as evaluation work progresses and as further discoveries are made in the area.

Several years of environmental baseline data have already been collected to ensure we understand and minimise the environmental footprint of our work. There are measures in place to avoid, reduce, manage and/or offset any environmental impact.

December 2011 saw a change of emphasis and evaluation of the Samphire project. ISR work has been slowed following release of exploration results identifying potential for extensive granite hosted primary uranium mineralisation below the Blackbush inferred resource and possibly elsewhere (refer ASX releases date 2^nd and 5^th of December 2011).

A targeted exploration program is being planned for 2012 to determine the extent, tonnes and grade of the granite hosted mineralisation.

A comprehensive re-evaluation of all the data acquired to date will be undertaken to completely characterise all of the mineralisation within the resource estimates, scope all of the geological metallurgical and mining alternatives, and identify and rank the optimal mining method for all of the sediment hosted and granite hosted materials present.