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Initial Report
January 20th, 2009
1/16/09
URXE daily
0.06
0.05
0.04
0.03
Thousands
Reno, Nevada USA 89503 300
200
100
Phone: 775-721-8883
0
Email: info@urexenergy.com
Nov Dec 09
Website: www.urexenergy.com
MARKET DATA
Company Introduction
Urex Energy Corp. (URXE) is a natural resource exploration and
Symbol URXE development company that explores and develops properties con-
Exchanges OTCBB taining uranium minerals. To date, URXE has acquired 100% of the
Current Price $0.04 mineral rights to two mineral uranium properties: the Rio Chubut
Price Target $0.24
Property, located in the Chubut Province of Patagonia, southern Ar-
Rating Speculative Buy
gentina, and the La Jara Mesa Property, located in Cibola County,
Outstanding Shares 84.42 Million
Market Cap. $3.37 Million New Mexico. These assets are surrounded by prospective mineral
Average 3M Volume 29,211 deposits which have been explored by other mining companies and
shown to contain large, undeveloped uranium reserves.
Source: Yahoo Finance, Analyst Estimates
duced 350 million pounds of uranium oxide, ranking this as the most prolific uranium district in the United
States.
Investment Highlights
Nuclear power needed to satisfy energy demand
Rising demand for electricity generation, growing concerns over global warming, and rapid depletion of fossil
fuel resources are increasing demand for alternative energy sources such as nuclear power generated by ura-
nium.
Demand for electrical power is projected to nearly double from 2004 to 2030, on average growing 2.6% annu-
ally from 17,408 TWh to 33,750 TWh. Electricity consumption will increase because of economic and population
growth in the world’s developing economies, where some two billion people currently have no access to electric-
ity.
There are approximately 443 nuclear reactors currently operating worldwide; another 33 are under construction,
and 94 additional new reactors are planned over the next five to 10 years. By 2015, Cameco anticipates approxi-
mately 506 nuclear reactors will be operating worldwide. As a result, demand for uranium is forecast to rise
from approximately 80 million tons in 2007 to 100 million tons in 2015.
Since the early 1990s, a large percentage of the world’s uranium de-
mand has been met by secondary supplies of highly enriched ura-
nium sourced from the disarmament of Russian nuclear weapons.
This secondary supply declined marginally in 2006 and 2007 and is
expected to fall substantially after 2013.
Cerro Solo area drill results suggest huge uranium potential on the
Rio Chubut property
(Compania Nacional de Energia Atomica - CNEA) drilled 410 drill holes at Cerro Solo that resulted in the defini-
tion of 10 million pounds of U3O8 valued at more than $600 million at current uranium prices. Over the past six
months URXE has made significant progress advancing its program to define and develop economic uranium
resources in Argentina.
Some experts view the Rio Chubut area in southern Argentina as the next Grants Mineral Belt; this region pro-
duced 350 million pounds of U3O8 and is thought to contain another 350 million pounds of U3O8, according to
the United States Geologic Survey. In addition, uranium mineralization at Cerro Solo is hosted in the Cretaceous
Los Adobes Formation which is wide spread and underlies most of URXE’s 170,000 hectare property position.
URXE owns a 100% interest in the La Jara Mesa Extension uranium property, consisting of 137 unpatented min-
ing claims covering approximately 2,740 acres in New Mexico’s Grants Mining District. This property is within
economic haul distance of the La Jara Mesa and Melrich uranium deposit, which contains a National Instrument
43-101 compliant measured and indicated resource of 7,250,000 pounds of uranium oxide.
URXE is awaiting approval of an exploration permit which will allow it to commence phase 1 drilling of this
prospect.
The Company’s Argentina property is located adjacent to the Cerro Solo Deposit, which is the largest uranium
deposit in the San Jorge Basin. This deposit has a reserve of nearly 10 million pounds of uranium oxide at a grade
of 0.3% U3O8 (6.7 lbs per ton U3O8) and 3.3 million pounds of molybdenum at a grade of 0.20% molybdenum.
URXE’s La Jara Mesa deposit is located in the largest historic uranium-producing district in the United States.
Between 1950 and 1978, the Grants Mining District produced 270 million pounds of uranium oxide. Laramide
Resources, which has claims adjacent to URXE’s La Mesa Jara claim, recently reported an unqualified resource of
1.4 million tons grading approximately 0.3% uranium oxide which would yield an estimated 7 million pounds of
uranium.
URXE’s management team includes professionals with finance and project development expertise and seasoned
mining industry veterans with uranium exploration and development expertise. Company President Richard
Bachman is a certified professional geologist with more than 28 years of mining industry in various capacities
ranging from exploration to mine operations. Mr. Bachman spent 22 years with Homestake Mining Company
managing projects in the United States, Brazil, Peru, Argentina and central Europe. As regional geologist for
Homestake Mining, he designed and successfully implemented reconnaissance programs in southern Argentina
that resulted in the evaluation of 63 properties with five advancing.
Urex
Urex Energy
Energy Corp.
Corp. (OTCBB:
(OTCBB: URXE)
URXE) 33
Analyst: Victor Sula, Ph.D.
Initial Report
January 20th, 2009
Business Model
The Company’s business involves acquiring, exploring and developing mineral properties that have the po-
tential to host economically viable uranium deposits. URXE owns 100% interests in two uranium prospective
properties located in the United States and Argentina. By diversifying its portfolio geographically, URXE helps
mitigate risk related to each region’s political climate and policies concerning uranium exploration and mining.
The Company’s majority-owned subsidiary, United Energy Metals S.A., holds a 100% interest in the Rio Chubut
property, consisting of 170,000 hectares in the Chubut Province of Patagonia, southern Argentina. The Cerro
Solo exploration block is approximately 160 kilometers x 95 kilometers and borders the 10-million pound Cerro
Solo Uranium deposit to the north and south. The Company’s exploration strategy for this property entails a first
pass, broadly spaced drill program to identify uranium mineralization and follow-up drilling. The Company
estimates drilling program costs at around $1.9 million. To date, URXE has completed 88 drill holes in five target
areas.
URXE also owns 137 unpatented mining claims covering approximately 2,740 acres of land in New Mexico. The
La Mesa Extension uranium project is awaiting approval of an exploration permit that will allow phase 1 drilling
to commence.
URXE’s exploration program utilizes advanced drilling technologies and data acquired through the exploration
efforts of others to maximize success. The Company uses work product derived from various reports, maps,
radioactive rock samples, exploratory drill logs, state organization reports, consultants and geological studies.
All of the drill holes on the Company’s Argentina properties are logged with a down-the-hole Calibrated BGR-01
4-Channel Gamma Probe operated by in-house technicians.
The Company’s systemic approach to developing its properties includes drill testing and projects prioritized ac-
cording to resource potential and capital requirements. In addition to developing its existing uranium property
assets, URXE plans to acquire additional proprieties in strategically important areas that complement its existing
prospect portfolio. The Company expects to explore and develop its properties through the reserve/feasibility
stage and then partner with or sell its project to a larger mining company for subsequent commercial production.
Corporate strategy
URXE plans to acquire properties that are likely to contain economic quantities of uranium ore; its focus is prop-
erties that have undergone some degree of uranium exploration but have not yet been mined, and properties
that can be quickly developed into producing uranium mines. The Company will build its business by acquiring
late-stage uranium projects, and then engineering and building low-cost, environmentally responsible mines.
URXE will also seek strategic partnerships in its operating areas, and will pursue opportunities to expand its
resource base through exploration.
• Improve the geological model and complete the additional drilling required to delineate and develop eco-
nomic resources at the Rio Chubut and Cerro Solo area uranium discoveries;
• Complete a concept test and commence a substantial drilling campaign at the La Mesa Extension property;
• Continue exploration of acquired properties and advance discovery at other uranium projects;
• Continue to acquire new uranium projects;
Properties
The San Jorge Gulf Basin dominates the central and northeast por-
tions of the provinces of Chubut and Santa Cruz, respectively. The
basin is predominantly comprised of rocks of the Chubut group.
These are Cretaceous Period fluvial and pyroclastic sediments over-
lying a Jurassic Period basement, composed of basalt and andesite
volcanic rocks with lesser volcaniclastic and sedimentary rocks. The
Cerro Solo deposit is a sandstone-type uranium-molybdenum deposit with mineralized layers distributed in flu-
vial conglomeratic sandstone of the Cretaceous Chubut group lying 50 meters to 130 meters below surface.
Fluvial channels within the Chubut group rocks have been recognized as particularly favorable hosts for uranium
mineralization. To date, the better uranium deposits have been discovered in sedimentary rocks deposited by
braided, high-energy fluvial processes. This includes the Los Adobes Formation in the Cerro Solo area, and the
Arroyo del Pajarito member in particular, which is up to 150 meters thick within the Cerro Solo deposit.
The Cerro Solo deposit is the largest uranium deposit in southern Argentina and occurs within an area 212 hect-
ares.
Development Program
The Company has completed 88 drill holes on first pass drill testing on five uranium targets on its Cerro Solo
area properties. The targets drill tests to-date included:
(1) Contreras;
(2) Cerro Solo South (CSS);
(3) Carbon;
(4) Maple South; and
(5) Plateau.
Twenty-two drill holes were completed on the Plateau Target and drilling will continue as the newly discovered
uranium mineralization is outlined. A peak uranium value of 10 pounds of eU3O8 per ton (0.42 eU%) was in-
tersected in drill hole RC08-079 on the Plateau target area and occurs within an intercept of 2.24 meters grading
3.18 pounds eU3O8 per ton (0.13 eU%). The uranium mineralization in drill hole RC08-079 is hosted in flat-lying
sandstone and conglomerate of the Cretaceous Los Adobes Formation between 60.51 and 62.75 meters below the
surface.
Thirty-seven drill holes were completed on the Carbon Target (see Figure above) identifying thick zones of
anomalous uranium mineralization related to high concentrations of organic carbon in the Los Adobes Forma-
tion. Drill hole RC08037r from the Carbon Target returned a peak uranium value of 5.74 lbs/ton eU3O8.
Seventeen drill holes were completed on the CSS Target identifying a number of uranium zones for follow-up
drilling. Partial drill results for CSS are given in Table 1. The CSS property is located on the south boundary of
CNEA’s Cerro Solo uranium deposit (see Figure above).
Hole ID From (m) To (m) Interval (meter) eU3O8 (Lbs/ Ton)* eU (%) Target
URXE completed a total of nine drill holes on the Contreras Target, which is located 11 kilometers northeast of
Comision Nacional de Energia Atomica’s (CNEA) Cerro Solo uranium deposit. Uranium mineralization at the
Contreras Target occurs near surface in the flat-ying Cerro Barcino Formation lake sediments and is projected
to be broadly distributed based on initial mapping. A peak uranium value of 2.32 lbs/ton eU3O8 was obtained
from drill hole CS08.
The La Jara Mesa deposit is located within the San Mateo Mountains
in the southern part of New Mexico, and has a nearly arid environ-
ment (10 inches annual rainfall). The mesa where the deposit occurs is
2440 meters to 2530 meters above sea level. Vegetation consists of pine
and other mixed coniferous forest with natural open meadows. Forest
underbrush is minimal. Average annual temperatures vary from -1°C
to 22°C, with seasonal extremes averaging –12°C and 32°C in winter
and summer, respectively.
La Jara Mesa is a sandstone-hosted, roll front-type deposit that has been extensively explored by Homestake Min-
ing, Pathfinder and Power Resources. Since the early 1980s, approximately 500 rotary holes and 18 diamond drill
holes have been drilled on this property; preliminary metallurgical test work and initial mine planning have also
been completed.
Homestake Mining completed a feasibility study in 1983. Homestake’s La Jara Mesa deposit lies on the southwest
boundary of the URXE claim block and contains five separate areas with a combined mineral inventory (drill
indicated and inferred) of 1,133,310 tons at 0.30% eU3O8.. Within the above total is the Dena Rich deposit, which
contains 804,199 tons at 0.36% eU3O8.
The Grants Mineral Belt trends northwest from Laguna to the Gallup region of New Mexico, a distance of ap-
proximately 125 kilometers and about 25 kilometers wide. The belt includes the Laguna, Ambrosia Lake, Church
Rock and Crownpoint mining districts. New Mexico ranks second behind Wyoming among the U.S. states with
the largest uranium reserves. Production commenced in the Grants Mining District in the late 1940s. The boom
years in the Belt were 1953-1980, when approximately 350 million pounds of yellow cake (U3O8) were produced.
Adjacent Properties
The Company’s properties are near claims owned by other uranium mining companies. Some of its neighbors
and their properties are described below.
United States
Laramide Resources Ltd. owns uranium assets in Australia and the United States. Its U.S. assets include La
Jara Mesa in Grants, New Mexico and La Sal in the Lisbon Valley district of Utah. At its La Jara Mesa property,
Laramide reports an unqualified resource of 1.4 million tons grading approximately 0.3% eU3O8, which would
yield an estimated 7 million pounds of eU3O8. Mineralization is contained in several thick, tabular units at a
depth of 200 meters below the top of the mesa. An independent NI 43-101 compliant Resource calculation on
La Jara Mesa was completed in 2006 and amended in July 2007. The results indicate:
• Measured and indicated: 1,555,899 tons @ O.23 % U3O8 resulting in 7,257,817 pounds U3O8; and
• Inferred: 793,161 tons @ 0.20 % U3O8 resulting in 3,172,653 pounds U3O8.
The Melrich uranium deposit, which is also owned by Laramide, lies 4.8 kilometers to the northeast of the La
Jara Mesa deposit and borders URXE’s property. Mineralization is hosted in a north-south trending tabular
unit approximately 790 meters in length and 150 meters wide, with an average thickness of 3.6 meters.
Argentina
Industry Outlook
According to the United Nations Population Division, the world’s population hit 6.5 billion in 2005 and, despite
lower expected fertility rates, is likely to reach 9.3 billion by 2050. World energy consumption is projected to in-
crease 50% from 2005 to 2030 or 1.7% per year, reflecting GDP growth over the next 25 years that will be higher
than the prior 25 years. Emerging economies, particularly China and India, will represent an increasing share of
world GDP. World energy demand is expected to rise to 17.7 billion tons of oil equivalent, compared with 11.4 bil-
lion tons in 2005. Electricity use will double and its share of final energy consumption will rise from 17% to 22%.
Nuclear power offers a clean, efficient alternative to energy produced from coal, oil or natural gas. Electricity is
produced at lower costs, and a nuclear generating plant does not produce carbon dioxide emissions. At present,
nuclear power provides about 16% of the world’s total annual electricity generation. France receives 78% of its
electricity from nuclear, Belgium almost 56%, Sweden close to 50%, South Korea 40%, Switzerland 40%, Japan 25%
and the United States 20%.
Source: http://www.world-nuclear.org/info/inf16.html
Demand for nuclear power is growing worldwide, and world nuclear generating capacity continues to expand
as more reactors are built and existing reactors are operated at higher capacity. Nuclear power provides 6.5% of
the world’s energy and 17% of the world’s electricity, with the U.S., France and Japan together accounting for 57%
of nuclear-generated electricity. Electricity generation from nuclear power is projected to increase from about 2.6
trillion kilowatt hours (kWh) in 2005 to 3.8 trillion kWhs in 2030, as concerns about rising fossil fuel prices, energy
security and greenhouse gas emissions support the development of new nuclear generation1.
1. www.eia.doe.gov/oiaf/ieo/pdf/highlights.pdf
Source: www.eia.doe.gov/oiaf/ieo/pdf/highlights.pdf l
Uranium demand
The only significant commercial use for uranium is to fuel nuclear power plants for the generation of electric-
ity. By the time it is completely fissioned, one kilogram of uranium-235 can theoretically produce about 20 tril-
lion joules of energy, or as much energy as 1,500 tons of coal2. An important factor impacting the prospects for
nuclear power is the liberalization of electricity markets in many countries. Historically, electric power utilities
in the western world have operated in regulated electricity markets.
In 2007, the International Atomic Energy Agency reported 443 nuclear power reactors were operating in 31
countries with a total capacity of about 365 GW. As of February 2008, a total of 96 new reactors were under con-
struction or planned for completion within the next 10 years3. All together, the reactors will require 78,500 tons of
uranium oxide concentrate annually, including 66,500 tons of mined uranium or the equivalent from stockpiles
or secondary sources. Each GW of increased capacity will require about 195 tons of annual uranium mine pro-
duction, and three times this for the first fuel load4. In 2006, worldwide annual fuel consumption was estimated
at approximately 176 million pounds of U3O8.
2. http://en.wikipedia.org/wiki/Uranium#cite_note-BuildingBlocks479-3
3. www.cameco.com/uranium_101/markets/
4. www.world-nuclear.org/info/inf22.html
Owners and operators of U.S. civilian nuclear power reactors purchased a total of 51 million pounds of uranium
from the U.S. government, other U.S. suppliers and foreign suppliers during 2007. For 2008, the maximum an-
ticipated requirements for U.S. civilian reactors are 43 million pounds. At year-end 2007, maximum uranium
deliveries for 2008 through 2017 under existing purchase contracts totaled 230 million pounds. Unfilled uranium
requirements for 2008 through 2017 (not under contract) totaled 264 million pounds5.
Uranium reserves
It is estimated that 5.5 million tons of uranium ore reserves are already economically viable, while 35 million tons
are classed as mineral resources. The world’s existing measured uranium resources (5.5 million tons) are enough
to last for 80 years. This represents a higher level of assured resources than is normal for most minerals. Rising
prices will likely lead to the development of additional resources as present supplies are used up. Australia has
a substantial share (about 23%) of the world’s known recoverable uranium resources, followed by Kazakhstan
(15%) and Canada (8%).
Uranium supply sources include primary mine production and secondary sources. Production from world ura-
nium mines supplies approximately 62% of utilities fuel requirements. The balance comes from secondary sources
such as inventories held by utilities and other fuel cycle companies, inventories held by governments, recycled
5. www.eia.doe.gov/cneaf/nuclear/umar/umar.html
materials from military nuclear programs, used reactor fuel that has been reprocessed, and depleted uranium
stockpiles.
Canada produces the largest share of mined uranium (23% of world supply), followed by Australia (21%) and
Kazakhstan (16%). In 2007, seven producers accounted for approximately 85% of world uranium production
estimated at 109 million pounds. Primary uranium producers include Cameco (approximately 19% of global
mine production) and AREVA (15%), both of which produce principally from deposits in the Athabasca Basin of
northern Saskatchewan.
Source: www.world-nuclear.org/info/inf23.html
Total U.S. uranium production in 2007 was 4.5 million pounds and 10% above 2006 levels. Production was de-
rived from one U.S. mill and five in-situ-leach plants (Crow Butte, Alta Mesa Project, Smith Ranch-Highland
Uranium Project, Kingsville Dome and Vasquez). Overall, there were 11 mines in the United States that pro-
duced uranium during 2007.
Uranium prices
In 2000, uranium spot prices fell to a 26-year low of $7.10 per pound due to increased availability of secondary
supplies and higher inventories. Uranium spot prices have appreciated more than 1,300% since 2001, reaching
an all-time high of $138 in June 2007, bolstered by tight market conditions and speculative buying. In August
2007, the price fell dramatically after the U.S. Department of Energy sold 200 tons of uranium hexafluoride, a
processed form of the yellowcake.
Like many commodity markets, the global recession is also affecting the international market for uranium. Spot
uranium prices were around $46 per pound in November 2008.
Source: www.uranium.info/index.cfm?go=c.page&id=29
According to price publisher Ux Consulting Spot, uranium snapped a long, steep price decline in November 2008
as buying interest from utilities increased and India placed new uranium orders. Despite increased buying inter-
est, fears of a global recession continue to weigh heavily on the uranium market. In the near-term, Ux Consulting
predicts uranium spot prices will likely range around $45 per pound6.
Financial Analysis
Income statement
URXE is an early development-stage company in the process of acquiring and evaluating mineral properties and
is not currently generating revenues from operations.
Over the next 12 months, the Company expects to incur significant expenses for its Rio Chubut property drilling
program and mineral properties evaluation.
6.www.platts.com/Nuclear/News/6001569.xml
Income Statement, $
As at September 30, 2008, URXE had a working capital deficit of $403,902. The Company’s total liabilities con-
sisted of $522,236 in current liabilities and $100,000 in long-term debt. Total assets declined to $120,657 due to
expenditures related to exploration and drilling in Argentina.
31-Mar-08 30-Sep-08
To date, the Company has financed its operations mainly though the issuance of common stock, notes payable,
and a bank line of credit. URXE will require significant additional financing to fund its ongoing drilling program.
Valuation
Due to the early stage of its exploration and development program, it is difficult to accurately assess URXE’s min-
eral resources. We expect more information to become available after the completion of ongoing drilling at the
Rio Chubut project. Despite this uncertainty, reserve estimates for adjacent properties and independent geological
reports suggest URXE may own significant potential uranium reserves.
The Company’s Rio Chubut project is adjacent to the Cerro Solo deposit owned by Argentina’s Atomic Energy
Commission. Cerro Solo is the largest uranium deposit in the San Jorge Basin with an historical resource of nearly
10 million pounds. URXE’s La Jara Mesa deposit is located in Grants Uranium District of New Mexico, which is
the largest historic uranium-producing district in the United States. The Company’s neighbor, Laramide Resourc-
es, has reported an unqualified resource estimated at 7 million pounds at its La Jara Mesa property. According to
URXE management, uranium resources associated with its La Jara Mesa property are likely to range between 20
million and 40 million pounds.
Based on this information, we believe URXE has a good chance of discovering meaningful uranium deposits. As-
suming a modest 20% chance of uranium discovery and cumulative reserve potential of 30 million pounds, we
derive a reserve forecast for the Company of 6.0 million pounds of uranium. At $45 per pound uranium prices,
potential reserves would be worth more than $240 million.
The Company’s current market capitalization of $3.4 million represents a tiny fraction of this value and suggests
URXE may warrant a higher valuation.
Comparative analysis
Source: Reuters
Laramide Resources owns adjacent uranium properties and is currently valued at $69 million. We take into ac-
count Laramide’s valuation and URXE’s earlier development stage in deriving our $2 million market capitaliza-
tion target and $0.24 share price target for URXE. As a result, we are initiating coverage of URXE with a Specula-
tive Buy rating and a $0.24 price target.
We strongly recommend that prospective investors monitor URXE’s press releases for updates regarding the esti-
mated quantity and quality of its mineral resources and also consider the risk factors discussed in the next section
if they are contemplating the purchase of these shares.
Risks
Uncertainty of mineral reserves
The Company’s success depends on its ability to discover commercially recoverable quantities of uranium on its
properties and develop commercially viable mining operations. There is no assurance that any of URXE’s min-
ing claims contain commercially viable reserves. Moreover, significant expenditures of time and money will be
required to develop its reserves.
URXE has a limited operating history and has incurred aggregate losses of approximately $8 million since its
inception. The Company will need to raise substantial additional capital to support its drilling programs. There
is no assurance that URXE will be able to obtain the necessary financing.
The uranium industry, including the supply of uranium concentrates, is highly competitive. The Company com-
petes for acquisitions and resources with a number of companies that have greater financial resources, longer
operating histories, and a record of successful exploration. According to the World Nuclear Association, the top
seven firms in uranium production account for 85% of overall world production. Because of competition, URXE
may find it difficult to acquire attractive mining properties on terms that the Company considers acceptable.
The Company’s revenues will depend on the sale of uranium and uranium products. Earnings and operating
cash flow will be sensitive to fluctuations in uranium prices. These prices are determined by demand for nuclear
power; political and economic conditions in uranium producing and consuming countries; production interrup-
tions or delays; sales of excess civilian and military inventories; and other factors beyond the Company’s control.
Governmental regulations
URXE’s mining operations are subject to extensive regulation by state, provincial and federal governments.
These regulations impact exploration, production, development, exports, imports, taxes and royalties, mine
safety, waste disposal, protection of the environment, labor standards and other factors. The Company owns
mining interests in North and South America. Policies of the U.S. and Argentine governments, as well as eco-
nomic and political conditions, may affect URXE’s mining operations and overall ability to generate revenues.
Management Team
Richard Bachman Mr. Bachman has been the president and a director of the Company since September 2005. From 2002
until now, Mr. Bachman has acted as president and as a consulting professional geologist for Minera Teles
President and Director Pires Inc., a Nevada mining company. Prior to Minera, Mr. Bachman spent 22 years with Homestake Min-
ing in various capacities ranging from exploration to mine operations. From 2001 to 2002, Mr. Bachman
was Homestake’s regional geologist for international special projects, where he designed and successfully
implemented reconnaissance programs in southern Argentina that resulted in the evaluation of 63 proper-
ties and the coordination and field review of 22 properties. From 1999 to 2000, Mr. Bachman served as the
regional geologist for Peru operations where he led a 10-member team and refocused Homestake’s explora-
tion program, resulting in the evaluation of 83 properties in 24 months and a major new discovery. From
1995 to 1998, he served as the regional geologist for Brazil operations where he directed a team of 46 and
controlled a $2.5 million annual exploration budget. Mr. Bachman holds a Bachelor of Science in geological
engineering from the South Dakota School of Mines and Technology and is a certified professional geolo-
gist with the American Institute of Professional Geologists.
Oscar Yoshitaka Yokoi Mr. Yokoi joined the Company as a director in November 2006. Mr. Yokoi brings to URXE more than 29
years of mining and mineral exploration experience. During his career, Mr. Yokoi has worked for BP Miner-
Director als, Brascan, Homestake Mining Company, Votorantim and JOGMEC, and has consulted for CVRD, Placer
Dome and Meridian Gold. Mr. Yokoi received a Bachelor of Science in geology (1977) from the University
of Sao Paulo and a Master of Arts in business administration (2003) from UNA Belo Horizonte.
Brian Cole Mr. Cole became a URXE director in January 2007. He is a Canadian certified professional geologist with
more than 29 years of mineral exploration experience in gold, uranium, base metals, and diamonds in
Director many parts of the world. Prior to joining the Company, Mr. Cole was a partner in a consulting firm offering
project management services, supervising its Ghana, West Africa, office for three years. Prior to that, Mr.
Cole was a staff geologist for Placer Dome Inc. for 11 years in Canada and East Africa. Mr. Cole routinely
consults with clients in North and South America, advising them on mineral exploration strategy, project
management, quality control and resource estimation, and regularly prepares qualifying reports for securi-
ties exchanges on behalf of his clients.
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pleteness of the information provided, including information regarding a profiled company’s plans or ability to effect any planned or proposed actions. We
have no first-hand knowledge of any profiled company’s operations and therefore cannot comment on their capabilities, intent, resources, nor experience and
we make no attempt to do so. Statistical information, dollar amounts, and market size data was provided by the subject company and related sources which
we believe to be reliable.
To the fullest extent of the law, we will not be liable to any person or entity for the quality, accuracy, completeness, reliability, or timeliness of the information
provided in the report, or for any direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information we provide
to any person or entity (including, but not limited to, lost profits, loss of opportunities, trading losses, and damages that may result from any inaccuracy or
incompleteness of this information).
We encourage you to invest carefully and read investment information available at the websites of the SEC at http://www.sec.gov and FINRA at http://www.
finra.org.
All decisions are made solely by the analyst and independent of outside parties or influence.
I, Victor Sula, Ph.D, the author of this report, certify that the material and views presented herein represent my personal opinion regarding the content and securities included in this
report. In no way has my opinion been influenced by outside parties, nor has my compensation been either directly or indirectly tied to the performance of any security listed. I certify
that I do not currently own, nor will own and shares or securities in any of the companies featured in this report.
Victor Sula, Ph.D. has held the position of Senior Analyst with several independent investment research firms since 2004. Prior to 2004, Mr. Sula held Senior Financial Consultant posi-
tions within the World Bank sponsored Agency for Restructuring and Enterprise Assistance and TACIS sponsored Center for Productivity and Competitiveness of Moldova, where
he was involved in corporate reorganization and liquidation. He is also employed as Associate Professor at the Academy of Economic Studies of Moldova. Mr. Sula earned his Ph.D.
degree in 2001 and bachelor’s degree in Finance in 1997 from the Academy of Economic Studies of Moldova. Mr. Sula is currently a level III candidate in the CFA program.