The Berlin Project, recently acquired from Mega Uranium, is a phosphatic shale uranium prospect with a resource1 of 12.9 million tonnes at a grade of 0.13% U3O8 (38 million pounds U3O8) with associated vanadium, molybdenum and phosphate.

The uranium, vanadium, phosphate and molybdenum mineralization at Berlin occurs in a continuous shale layer that has been folded into a keel-like syncline. The syncline measures 10.5km long in a north-south orientation to a maximum width of 2km in an east-west direction. The axis of the keel reaches a maximum depth of about 250mt below surface. The mineralized layer is one to 3mt thick, which would suggest an underground mining scenario.

Two trenches, Tb0 and Tb1, are spaced about 50mt apart near the southern tip of the keel-shaped shale layer, while trench Tb2 and Tb3 are spaced at 200mt to 300mt intervals on the western flank of the syncline. Trenches Tb4 and Tb4du are located approximately 30mt apart on the east flank of the syncline, some 800mt from its southern tip.

The wide-spaced trenches were designed to test lateral continuity of the mineralization, while the two sets of close-spaced trenches tested detailed variability of mineralization. Uranium and vanadium assay results were consistent over the distance sampled with molybdenum and phosphate values being more variable.

The planned trench program in the Berlin Project includes the excavation of 26 trenches at about 200mt spacing on both sides of the southern 4.4km part of the 10.5km long syncline with the aim of confirming lateral continuity of mineralization over the area in which the resource was estimated.

Trenching of the southern area is scheduled for completion in May 2010, at which time, trenching will extend into the northern area with estimated completion in September 2010. The application for permission to drill is being processed by the authorities and drilling is expected to commence in July 2010.

The drill program of approximately 1,500mt in seven bore holes will aim to confirm the intercepts in the southern area. Contingent on successful drilling of potentially economic uranium grades, metallurgical test work is also planned for 2010.