AUSTRALIA

Westmoreland

Laramide’s flagship project, Westmoreland, ranks as one of the best development stage uranium assets in the world not controlled by a senior producer or utility, and is one of a small percentage of known deposits expected to have compelling economics at today’s uranium prices based on Scoping Study economics. The Company owns 100 per cent of the Westmoreland Project, which is a sandstone-hosted conventional, open-cut deposit. The Project is at an advanced exploration and development stage, with significant exploration and development work previously undertaken by former owner Rio Tinto. Since its acquisition of the Westmoreland Project in late 2005, Laramide has advanced the Westmoreland Project through a series of drilling campaigns, updated resource estimates, environmental studies and metallurgical studies.

Location: Northwest Queensland, Australia

Westmoreland Geology	Claim Block

The Westmoreland project is located in a world-class mining province with favorable infrastructure and logistical support. In northwest Queensland near the Northern Territory border, the project is not far from the northern coast. It can be accessed both from the city of Mt Isa (350 km) which has an airport and from Karumba (260 km), which has a port facility. Karumba can be accessed via the town of Burketown (130 km), which is located near the coast on the Burke River. The project is located approximately 200 km northeast of the operating Century Zinc mine.

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Key Attributes:

• 51.9 million pounds of uranium (U₃O₈) (NI 43-101 compliant resource), including 36 million pounds U₃O₈ Indicated and a further 15.9 million pounds U₃O₈ Inferred, with average grades of 0.089% U₃O₈
• An open cut mine with resource expansion, a low stripping ratio (2:1) and 80% of the estimated resource is within 50m of the surface
• Large land package covers 979.4 km²
• Three contiguous joint ventures situated along strike from Westmoreland Project, for additional land package of 1,657 km²
• Compelling economics even at lower uranium prices
• Expected to produce more than 3 million pounds per annum
• Metallurgical test work demonstrates high uranium recovery utilizing conventional technologies

Project History:

The Westmoreland Project was discovered by Mount Isa Mines in 1956 and has had a long history of exploration. More recently, it was held by Rio Tinto from 1990 until 2000.

Rio Tinto completed a pre-feasibility study that included infill drilling, detailed metallurgical test work and resource calculations. This work was focused on three deposits: Redtree, Huarabagoo and Junnagunna. There are a further 39 uranium occurrences throughout the project area. This work, completed by Rio Tinto, showed that the uranium mineralization was readily amenable to acid leaching and had low acid consumption with high uranium recoveries. (“Geology of Australia and New Guinean Mineral Deposits,” published by the Australian Institute of Mining and Metallurgy. “Westmoreland Uranium Deposits,” author G M Rheinberger et al).

Laramide believes that potential exists to enhance the robustness of the project. Since Laramide’s acquisition of the project, a two-phase drill program was completed during the 2007 and 2008 field seasons. These results were included in the updated mineral resource estimate released in April 2009. The next phase of drilling was completed during the latter half of 2009 and 2010. Environmental baseline studies were completed in 2011 along with development activities that included advanced stage metallurgy work. In Q3 2012, Laramide commenced a new drilling program.

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Strategic Outlook: 

Laramide’s objective for Westmoreland is to be in a position to commence a feasibility study and file permits once there is a clear path to develop the project. 

Current work includes:

Exploration drill program – Laramide commenced the 2012 exploration program at Westmoreland. This initial program of 4,000 metres for 25 drill holes of diamond core drilling, within a larger program of 30,000 meters, is planned to test exploration targets along strike from the Huarabagoo and Junnagunna deposits. The program will focus on the highly prospective structural corridor that connects the Huarabagoo and Junnagunna deposits. Previous drilling has not extensively targeted the 3-kilometre strike length between the two deposits. 
Laramide plans to commence an exploration program in Northern Territory over the area recently joint ventured with Rio Tinto.

Updated Scoping Study – Aker Solutions (now Jacobs Engineering Group) will look at 4 million pounds per annum scenario and incorporate the results of extensive metallurgical test work, a new resource estimate and a new pit optimization and scheduling study.

Environmental Impact Baseline Program – Collection of in excess of 2 years of baseline environmental data was completed in 2011. This will allow Laramide to move quickly towards completing an Environmental Study (EIS), the first step in the application for permits to develop Westmoreland.

Metallurgical test work – Studies commenced in 2010 were completed in 2011.

Details of comprehensive metallurgical test work carried out by the Australian Nuclear Science and Technology Organisation. High recoveries of 97% were achieved using a conventional uranium processing route. The report also identified definitive process route options to provide engineering design data sufficient to support a pre-feasibility level of study.

Permits – On completion of the EIS Laramide will be able to quickly move towards a feasibility study and commence the process of applying for permits to develop Westmoreland.

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Geology:

Redtree

The Redtree deposit is where the bulk of the Westmoreland resource base is located (~50%). The deposit flanks the Redtree dyke located north of the NW-trending Namalangi fault and is characterised by a mix of horizontal and vertical lenses of continuous mineralisation in distinctly coarse pebble conglomerates with grades ranging from 0.15% to >2% U3O8. Mineralisation is generally shallow, within 10m of surface and is associated with chlorite/hematite alteration. We note that the Redtree dyke (20m-30m wide) broadly extends for 7km from Redtree to Junnagunna and has utilised the same structures as the uranium mineralisation, but does not appear to be related, although spatially associated.

This area between Redtree and Junnagunna is where LAM has focused its ongoing drilling program. The geometry of the higher grade mineralisation is not well understood and closer spaced drilling is required. We expect there is excellent potential to expand the existing resource with further drilling. Access for drill rigs could be an issue in some parts because of the challenging escarpments in this terrain (quartzite boulders would require blasting for road access) and further helicopter drilling may be required.

Huarabagoo

The Huarabagoo deposit is ~3km NE of Redtree along the Redtree dyke and straddles the contact of the Seigal Volcanics with the Westmoreland Conglomerate. Mineralisation has been identified in outcrop towards the southern end and is concealed towards the north under shallow colluvium. Mineralisation occurs in 20m thick lenses, which extend to 100- 200m length and to a depth of 80m. The strongest mineralisation was found to be associated with chlorite/hematite altered coarse pebbly sandstones similar to Redtree. Further drilling is required to improve the understanding of the complex geometry.

Junnagunna

The Junnagunna deposit occurs at a fault intersection west of the Redtree dyke zone and south of the northwest trending Cliffdale fault. Mineralisation is generally flat lying on either side of the Redtree dyke and ranges in thickness from 0.5m to 20m in thickness beneath the Seigal-Westmoreland contact. The deposit is covered by alluvium/colluvium clays and sand and weathered Seigal Volcanics. The Longpocket deposits 8km from Junnagunna may offer additional exploration upside and we note potential for Laramide to add meaningful, high grade pounds of U₃O₈ to its resource base with further drilling.

Laramide  Joint Venture	Redtree Mineralisation	Uranium Systems	Cross Section	Uranium Deposit	Westmoreland Uranium Project

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Important Political Developments in the Year Ended December 30, 2012 and the First Quarter of 2013:

In a joint statement on October 22, 2012, the Queensland Premier and the Minister for Natural Resources and Mines announced that the State Government will convene an implementation committee to oversee the recommencement of uranium mining in Queensland. In March 2013, the six-person independent committee issued their report which found Queensland’s existing system for regulating mining and radiation safety appropriate for uranium mining and concluded a new legislative framework was not necessary. The committee also concluded that a comprehensive regulatory system for the uranium industry is also in place at a federal government level. The possibility of mining Queensland’s rich deposit became a reality again when the federal government began talks to lift its ban on exporting uranium to India in late 2011. The ban was officially lifted in October 2012 and a few days later Premier Campbell Newman announced Queensland would once again allow uranium mining. The committee has made 40 recommendations on how that would work. Assessments of possible uranium mines will be a joint decision between the Commonwealth and the Queensland governments, although the committee did recommend a coordinated approvals process. At the centre of the committee’s recommendations are new institutional arrangements to improve coordination of assessment and approvals for uranium mines, including improved engagement with stakeholders and an Indigenous Training and Development trust be established with the royalties of uranium mining. The report does recommend specific mine safety and health guidance documentation be developed to ensure best standards are maintained at all stages from exploration to mining and processing. Mining royalties would be set at 5 per cent, with a view to increase this over time, but the rate would be slashed to 2.5 per cent as an incentive for investment in the first five years. The committee presented the report to Cabinet, but did not give a timeframe on when the government would respond to the 40 recommendations.

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Background on Overturn of Uranium Mining Ban in Queensland:

While mining of uranium has not occurred in Queensland since 1982, exploration for uranium has been allowed. This exploration activity has resulted in significant and continued interest in known deposits from the industry. Recent years included the following developments up until the 2012 overturn of the state uranium mining ban:

• Queensland remained the only Australian State with significant uranium deposits that advocated a restrictive uranium mining position, a party policy of the State’s former ALP and not State Legislation. There is no restrictive policy in Queensland towards exploration activities.
• The LNP won 78 seats and ALP won 7 seats in the state election held in March 2012. The new Queensland Government led by Premier Campbell Newman has a pro-uranium mining stance. North Queensland Aboriginal Leader, Murrandoo Yanner, repeated his call for the state government to lift a uranium mining ban.
• In September 2012, the new premier Campbell Newman announced the Queensland Government’s steps that ultimately led to the overturn of the uranium mining ban in the state.

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