Kevin Schultz, Northern Uranium executive chairman, said the broad-based revival in commodity prices and the interest being shown by the capital markets in exploration companies was supportive for the further development of the Company’s uranium tenements.

“We expect to be able to take advantage of the current dry season and drill our highest priority target areas, starting in the next quarter,” Schultz said. “All statutory approvals are in place, and drilling contractors are available.”

The Gardiner-Tanami project covers an area of about 10,000 square km centred on the WA-NT border 200km southeast of Halls Creek. Northern Uranium has been exploring for unconformityrelated uranium deposits in the area since 2007 with French nuclear group Areva NC subsidiary, Afmeco Mining and Exploration Pty Ltd (Afmex) as the project operator.

“Exploration to date has been focused on pinpointing the highest quality targets using a ‘whole of project’ approach. This reflects Areva’s experience and success in Canada within the Athabasca Basin which hosts the world’s highest grade unconformity-related uranium deposits,” Schultz said.

The Gardiner-Tanami area is also compared favourably with the Alligator Rivers region in the NT where the Ranger mine, Australia’s largest operating uranium mine, is located.

Drill Targets In Western Australia

Oracle-Soma

– Current highest priority target area in the vicinity of “The Don” prospect (1980s primary uranium-gold discovery 5km to the east in an adjacent tenement)

– Extensive surface uranium radiometric anomalies coincide with VTEM conductors in a geological setting similar to the setting of Ranger.

Lewis Creek North

– Extensive surface uranium radiometric anomalies and several VTEM conductors on favourable structures at or near the Gardiner Sandstone unconformity

– Primary uranium mineralization was discovered in the 1980s at Mt Mansbridge two km to the east in an adjacent tenement.

5,000 square km Northern Territory (NT) Expansion

Northern Uranium is also progressing plans for a significant expansion of the Gardiner-Tanami exploration program in the NT.

Exploration to date has concentrated on granted tenements in WA, with progress in the NT, outside of land under pastoral leases, requiring finalization of negotiations with Aboriginal freehold land holders and the Central Land Council (CLC). A draft Exploration Deed submitted by the CLC is currently being considered by the Company.

The negotiations are expected to be concluded during the second half of 2009, following which about 5,000km2 of contiguous tenements can be granted. The tenements cover a number of known uranium prospects/occurrences that were discovered in the 1970s and 1980s by companies such as PNC Exploration (Australia) Pty Ltd (PNC) and Otter Mines NL (Otter).

PNC found uranium mineralization on a prospect referred to as Area 20, and rock-chip samples from costeans returned assays of up to 1.5% uranium. Follow up included shallow RAB drilling and two diamond drill holes, one of which intersected black, graphitic shale at 40m depth. The uraniferous mineralization in the area, together with the existence of graphitic/carbonaceous shales and its proximity to the interpreted sandstone unconformity, makes Area 20 a very attractive target requiring follow-up. PNC did not continue its exploration in the 1980s due to budgetary constraints.

Several other radiometric anomalies have been outlined to the south and southwest of Area 20, with limited shallow drill testing and surface sampling completed. These areas remain as targets for unconformity-related uranium discovery.

On another prospect, Boulder Ridge, discovered by Otter in the late 1970s, anomalous rock-chip samples up to 0.11% U3O8 were collected over several hundred meters of strike. However, most of the area is covered by a thin veneer of transported soils, which discouraged further work at a time of declining interest in uranium by exploration companies.