August 8, 2007
Toronto, Ontario – August 8, 2007 Energy Fuels Inc. (TSX: EFR) (“Energy Fuels”) is pleased to announce that it has received a technical report, prepared in accordance with National Instrument 43-101 – “Standards of Disclosure for Mineral Projects”, on its 702 acre Energy Queen Uranium Property located in San Juan County, Utah, from FGM Consulting Group, Inc. of Golden Colorado. Concurrent with this release, the report will be filed on SEDAR (www.sedar.com).
Landy A. Stinnett is the Qualified Person, as defined by NI 43-101 responsible for the technical information contained in this release. Mr. Stinnett is independent of the Company as defined by NI 43-101. The technical and scientific information contained in this release is based upon historical assay and hole-survey data that have not been verified due to the unavailability of the core samples, the geologic down hole logs, and down hole radiometric logs. It is believed that such information may be obtained from former claim holders and the Company is in the process of attempting to obtain such information. Mr. Stinnett has accepted the historical data for the purposes of calculating the current resource estimate presented below.
The report details a total resource at Energy Queen of 766,000 pounds of U3O8 and 3,000,000 pounds of V2O5. Indicated resources are 110,000 tons of material at a grade, diluted to mining thickness, of 0.216% U3O8 and 0.82% V2O5 for a total contained metal of 475,000 pounds U3O8 and 1,800,000 pounds V2O5.Dilution is based on waste material at a zero grade. It is conservative to use waste at zero grade for the dilution, since there is often lower grade material adjacent to the target mineralized zones. Additionally, projections for inferred resources on a diluted basis are 68,000 tons grading 0.214% U3O8 and .91% V2O5,for a total contained metal of 291,000 pounds of U3O8 and 1,200,000 pounds of V2O5.
The resource calculation was performed using the polygonal method based on 59 drill holes at a nominal spacing of 200 feet. Many polygons enclose an area of influence of approximately 10,000 square feet of area (100 x 100). Some drill holes showed intercepts at a grade of less than 0.05% U3O8, and no resource pounds were included for the area of influence of those drill holes. Vanadium assay information was available for some of the drill holes. Where no vanadium data existed, the respective intercept was assigned a vanadium value based on the historical average V2O5: U3O8 ratio for the Energy Queen property, which is 4.25:1 based on assays of core.
The 43-101 report recommends undertaking a drilling program on the property and states that the potential, unidentified resource on this property is believed to be significant. Also, nearby properties contain considerable resources based on historic drill maps. To confirm the potential unidentified Energy Queen resource, Energy Fuels will drill between 15 and 20 holes in the fall of 2007 on the Energy Queen Property. A project of similar scale is planned for 2008. Once production has commenced, ongoing exploration will be concurrent with mining through long-hole drilling at the production face. These drill holes will allow miners to visually follow the mineralization in the river-channel deposit.
The Energy Queen Mine was initially joint-ventured by Hecla and Umetco (Union Carbide), and was operated briefly before low uranium prices forced closure in the early 80’s. The mine property is in very good condition with well developed infrastructure on site. A head frame, hoist, mine air compressor, and a combination shop-warehouse-office and miner’s shower facility are all in place, and there is an electric power line running to the site. Energy Fuels is currently conducting ground water baseline studies and expects to submit a ground water discharge permit application to the Utah Division of Water Quality in the third quarter of 2007. Current plans call for production at Energy Queen in 2008.
Energy Fuels’ President & CEO, George Glasier commented “We are very pleased to have completed our second of several planned technical reports on our property portfolio in 2007. While this 43-101 compliant resource is somewhat limited in scope, we are confident that more mineralized material will be developed for mining through routine underground exploration as mining operations proceed. We continue to grow our uranium/vanadium portfolio through a $2.5 million drilling program this year, and have recently made several strategic acquisitions in our geographic area of expertise. In addition, we are actively exploring and rehabilitating several formerly producing mines on the Uravan Mineral Belt consistent with our strategy of becoming a fully integrated uranium/vanadium producer.”
Stephen P. Antony, P.E., a Qualified Person as defined by National Instrument 43-101, has reviewed and approved the content of this press release.
Energy Fuels Inc. is a Toronto-based uranium and vanadium mineral exploration and development company with more than 40,000 acres of highly prospective uranium and vanadium property located in the States of Colorado, Utah and Arizona. The Company, through its wholly-owned Colorado subsidiary, Energy Fuels Resources Corporation, has assembled this property portfolio along with a first class management team, including highly skilled technical mining and milling professionals based in Lakewood and Nucla, Colorado and Kanab, Utah.
This news release contains certain “Forward-Looking Statements” within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended and “Forward Looking Information” within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein are forward-looking statements and forward looking information that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company’s expectations are disclosed in the Company’s documents filed from time to time with the British Columbia, Alberta and Ontario Securities Commissions.
‘George E.L. Glasier’
President & CEO
FOR FURTHER INFORMATION PLEASE CONTACT:
Energy Fuels Inc.
Toll free: 1-888-864-2125
(The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.)