Annual Report Wellington Range Project 4 May 2011 to 3 May 2012 EL 5893

Abstract

This is the eighth year of tenure for EL 5893, referred to by Cameco Australia Pty Ltd (Cameco) as the Wellington Range Project. The licence is located in Arnhem Land approximately 100 km north northeast of the Jabiru Township. The tenement was granted for a period of six years on 5 May 2004, and at the end of year five, there was a statutory reduction. A 'Partial Waiver of Reduction' application, submitted in March 2008, involved the relinquishment of 68 blocks for 216.5km2, all within 'no-go' zones. This partial relinquishment was actioned on the anniversary date of 03 May 2008 with 201 blocks for an area of 639.9km2 being retained. The first renewal on the tenement was granted in February 2010. In 2011, twenty-six diamond drillholes were drilled for a total of 7,927.2m, including 1407.1m of rotary mud pre-collaring. The main exploration target, the Angularli Prospect, is located on the Angulari Fault in a similar structural environment to the mineralisation developed on the Aurari Fault Zone. The prospect is located in the eastern part of the project. Twenty drillholes intersected uranium mineralisation (=0.05% U3O8). Mineralisation is intersected either in the cataclastic breccia/sandstone, the basal part of the Kombolgie Subgroup (Mamadawerre Sandstone), or in proximity to the unconformity, with the strongest mineralisation of 27.83% U3O8 intersected in WRD0084. This intercept is the most significant mineralisation encountered by Cameco in Arnhem Land to date. Geophysical surveys in 2011 consisted of 5187 unique gravity stations collected over the central portion of the Wellington Range tenement by Atlas Geophysics, Morley, WA. Eligible exploration expenditure for Cameco's activities for the reporting period totalled $4,752,872.22. The exploration program for 2012 will consist of mapping, prospecting, soil survey, diamond drilling, and ground based gravity survey. A minimum of 20 drillholes will be drilled, with majority of targets on the Angularli Prospect or along the Angularli fault zone.