Final detailed project reviews are underway as Berkeley Energia counts down to the commencement of construction at the Salamanca uranium mine in Spain. At the same time production cuts are being announced at some of the world’s largest uranium mines, which are likely to result in a 12% reduction in primary mine production this year.

The Salamanca mine, the only major uranium mine in construction in the world this year, is scheduled to reach production as the market enters the long awaited supply/demand deficit that industry experts have called both fundamental and unavoidable.

The project continues to receive strong support among key stakeholders in Spain, reflecting the growing awareness of the benefits the investment will bring to a community that is experiencing some of the highest levels of unemployment in the European Union. Highlights:

• Berkeley Energia completes strategic investment of up to $120 million with the Oman sovereign wealth fund
• Construction preparation continues
• Following the receipt of funding, the company is filling key management positions and finalising capital and operating costs
• As part of its commitment to develop the project in partnership with Spanish engineering excellence, Sanchez y Lago, one of Spain’s major construction companies and contract mining firms has been selected as the preferred mining contractor
• Strong support from key stakeholders
• AENOR, the Spanish Association for Standardisation and Certification, recently re awarded the company certificates in Sustainable Mining and Environmental Excellence
• As part of its commitment to reduce unemployment in the region, the majority of new staff required for the first phase of construction activity will be recruited from the local villages of Retortillo and Villavieja.

Cameco’s recently announced suspension of operations at its low cost McArthur River mine along with cuts announced by Areva and Kazatomprom, are expected to remove 17 Mlb U3O8 from the market this year (12 Mlb attributable to Cameco alone), representing 12% of primary mine supply;

• The Company has 2.75 Mlb of U3O8 under contract for the first six years, with a further 1.25 Mlb of optional volume, at an average price above $42, compared with a spot price of $24/lb
• The company will continue to progressively build its offtake book and has granted the Oman sovereign wealth fund the right to match any future long term offtake transactions
• Exploration focused on identifying additional targets with similar characteristics to Zona 7 continued during the quarter
• Over 2,200 samples were collected during the first phase of the geochemical sampling programme and 12 potential uranium targets have been identified using a combination of Ionic Leach™ analysis and other methods.

The company is in a strong financial position with $82.2 million in cash. Managing Director, Paul Atherley, commented: “Having completed the financing, we are finalising the selection of contractors and are undertaking detailed final reviews to ensure that we have the very best possible capital and operating costs.

“We have engaged the University of Salamanca to study the positive impact the investment will have on the local community. Previous studies have shown that there is a multiplier of 5.1 indirect jobs for every direct job we are creating.

“The benefits go well beyond employment. Evidence elsewhere in Spain has shown that local business, tourism and agriculture will all receive a big boost.

“The local housing market is expected to react positively to the investment, as evidenced by the almost 800% increase in the value of real estate surrounding the Aguas Teñidas mine in Andalucía.”