Energy Fuels Resources Corp. is actively exploring our significant uranium land position.  Drillers have been contracted, permits acquired, and drilling is underway in the field.  The Company routinely obtains the necessary exploration permits for its drilling and prospecting activities.  We work closely with the appropriate land management agency (e.g., BLM, Forest Service) and the state agency with jurisdiction to assure compliance with all rules and regulations and to maintain a reasonable turnaround time on new permit requests. Approvals normally are obtained within 60-90 days of application and reclamation bonds are posted for all surface disturbing activities.

For several of the exploration locations described below the Company has given tonnage or pounds U₃O₈ and/or V₂O₅ and grade estimates.  Though these estimates are not NI 43-101 compliant, Energy Fuels’ geologists were personally acquainted with the companies and the geologists preparing the historical estimates.  Company geologists know and understand the methods used, believe them to be reliable, and relied upon them in evaluating properties for acquisition.

The several companies that historically explored or developed many of EFRC’s exploration properties were all legitimate, successful producers or exploration companies in this region, not speculators or promoters.   Producing companies include Union Carbide, Cotter, Pioneer, Energy Reserves Group, Energy Fuels Nuclear, Minerals Recovery Corp. and other older companies like Climax Uranium and Vanadium Corp of America (VCA).  Other reputable, well financed companies that did not actually produce, were legitimately developing reserves and not promoting.  These companies include Nuclear Dynamics, Utah Power & Light, Minatome, General Electric, Wyoming Minerals (Westinghouse), Gates, and Fox.  In the opinion of Energy Fuels geologists, when we evaluate the historical data from these companies, it is almost as reliable as if we had generated the data ourselves.

When EFRC geologists assign resource numbers to a property, it is something they really believe to be there and that could eventually be produced.

EFRC has assembled an impressive land position over the last year.  The company has either direct, joint venture, or leasehold control of almost 31,000 acres of property in high potential uranium provinces in the Colorado Plateau states of Colorado, Utah, and Arizona.  This land position includes 1,399 lode mining claims, 7 of which are patented; leases on two AZ state sections; and a lease on over 700 acres of fee minerals.  The near term mining projects (Whirlwind, Energy Queen, and Tenderfoot Mesa) account for about 5000 acres.  The balance of the acreage has exploration potential and will be evaluated as budgets and staffing allow.  These exploration projects are described in some detail below:

Colorado/Utah Properties

Colorado/Utah Properties
General Location

Colorado Properties: Morrison Formation Uranium-Vanadium Deposits Listed Generally from North to South

Farmer Girl (Map Key 15)

This leased group includes 7 patented claims and 14 unpatented ones which are located on Martin Mesa in Montrose County, Colorado, near the now reclaimed Uravan mill site.  The Farmer Girl and several other mines produced from the lower sandstones of the Salt Wash.  Small resources are left near the mine, but the property is primarily an exploration target.  Exploration drilling was initiated in June, 2007, and will continue into July.

Club Mesa (Map Key 3)

This claim block is comprised of 42 unpatented claims in Montrose County, Colorado leased by EFRC.  These claims are just west of the Uravan mill site.  There are no known resources on these claims.  This is an exploration project located between US Department of Energy Lease Blocks C-CM-24 and C-CM-25.  Drilling will be started at Club Mesa in late 2007, or early 2008.

Sara Group (Map Key 10)

These claims straddle the county line between Montrose and San Miguel Counties, Colorado, and are about 15 miles east of the Utah State line.  There are minimal resources as yet identified on these 35 leased unpatented claims.  One thin, high-grade hole is known to have been drilled by Union Carbide (Umetco), which reportedly encountered 1.1 ft of 1.07% U₃O₈.  Atlas Minerals also drilled some close-spaced holes in this area in the late 1970’s. The group holds excellent exploration potential being located eastward in the Wedding Bell-Radium Mountain trend. Drilling permit applications have been submitted and approval is pending. Drilling is planned to begin late summer of 2007.

Moonlight Group (Map Key 11)

These 40 claims, contiguous with the Sara claims, were staked and are owned by EFRC as an exploration project.  There are no known resources on the Moonlight Group. Permitting and drilling will proceed on the same schedule as the Sara Group.

Walt Group (Map Key 9)

The Walt Group consists of 22 leased, unpatented claims located in San Miguel County, Colorado, about 15 miles east of the Utah State line, and a few miles south of the line between Montrose and San Miguel counties.  These claims were drilled by Nuclear Dynamics (Uravan Joint Venture) in 1979-1980, under the supervision of their Chief Geologist, Mr. Bill Lyons, a highly respected geologist in this area for many years.  The drill indicated mineral resource here is at least 8,700 tons containing 22,700 lbs U₃O₈ at a grade of 0.13% and 113,500 lbs V₂O₅.

Cliffdweller Group (Not Mapped)

This group consists of five unpatented claims leased by EFRC just west of the Walt group in San Miguel County, Colorado.  There are no known resources, but some exploration potential.  These claims would provide good access to the Walt group if more mineralization is found there.

MCT Group (Map Key 4)

This group is located between the Walt/Cliffdweller group and the Utah line, in San Miguel County, Colorado. It consists of 22 unpatented claims leased by EFRC. There are no known uranium or vanadium reserves at this time.  The claims are an excellent exploration target by virtue of their location southwest of the large Carnation-Sunday mining complex and less than ½ mile south of Denison’s Topaz Mine.  Confirmed mineralization in the Carnation trend comes within several hundred feet of the eastern side of the MCT claims. 

Drilling of the MCT claims is complete and results are being geologically interpreted and evaluated.

Willhunt Group (Map Key 5)

The Willhunt group consists of 10 leased, unpatented claims located about 15 miles from the Utah line near the north-south midpoint of San Miguel County, Colorado.  These claims were drilled in 1978-1982 by Nuclear Dynamics (Uravan Joint Venture) also under the supervision of Bill Lyons, and known as the Steamboat II project.  Drilling indicates a mineral resource of about 132,000 tons at an average thickness of 3.3 ft containing 516,100 lbs U₃O₈ at a grade of 0.20% and at least 2,580,000 lbs V₂O₅ at a grade of 0.98 %.  The vanadium is estimated at a 5:1 ratio, which is conservative for this district.  Additional drilling should expand this resource since this group lies at the eastern end of a large channel system projected from the highly productive Carnation-Sunday mines area.   

DOC Group (Map Key 6)

Just a few miles southeast of the Willhunt Group, the DOC group consists of 19 leased, unpatented claims.  They were drilled during 1979-1983 by Union Carbide (Umetco).  The drilling indicates about 19,000 tons containing 71,500 lbs U₃O₈ at a grade of 0.19% and at least 215,000 lbs V₂O₅ at a grade of 0.57%.  This indication is based on EFRC geologists evaluation of Union Carbide drillhole maps, and personal communication with the Carbide geologist who did the exploration work.  The mineralization is open to the east and there are other unexplored areas within the group.  Drilling of the DOC claims is complete and results are being geologically interpreted and evaluated.

MO Group (Map Key 8)

This claim group is located in southwest San Miguel County, about 6 miles from the Utah State line.  There are no known reserves on these 10 leased, unpatented claims. This is an exploration project located between US Department of Energy Lease Blocks C-SR-10 and C-SR-16. Drilling plans have been formulated and permit applications are in preparation. Drilling is planned for the fall of 2007.

Luke Group (Map Key 7)

Located about 5 miles southeast of the MO group, there are no known reserves on these 12 leased, unpatented claims.  This is an exploration project adjacent to US Department of Energy Lease Block C-SR-12. Drilling plans have been formulated and permit applications are in preparation. Drilling is planned for the fall of 2007.

Utah Properties: Morrison Formation Uranium-Vanadium Deposits

Ethan Claim group-Yellow Cat Area (Map Key 13)

This claim group is located in Grand County, Utah, about 6 miles south of Interstate 70, and 24 miles west of the Colorado State line.  It is comprised of 150 unpatented mining claims owned by EFRC. Most of the drilling on this group was by Pioneer Uravan during the 1976-1980 period.  The identified deposit holds at least 40,000 tons of minable resources containing 206,000 lbs U₃O₈ at a grade of 0.26% and 833,600 lbs V₂O₅ at a grade of 1.03%.  This resource estimate is considered to be reliable.  It is based on EFRC geologists evaluation of the Pioneer Uravan drillhole maps, and the personal relationship that EFRC geologists had with the people who actually did the exploration work.  This deposit could potentially be enlarged to over 300,000 lbs. in the immediate area with offset drilling.  The remainder of the large claim group is a good exploration target, relatively shallow, with the potential to hold other similar deposits.

Dorry Claims-Brumley Creek Area (Map Key 14)

This claim group of 20 EFRC-owned unpatented claims is located in northern San Juan County, Utah, about 10 miles west of the Colorado line.  It contains a small deposit of about 20,000 lbs U₃O₈ with a good V₂O₅:U₃O₈ ratio of about 5:1.  These reserves are based on evaluation done by EFRC geologists of drillhole maps and logs prepared by Energy Fuels Nuclear in 1978.  It is an exploration property, since the resource is too small to justify mining at this time.

S & M claims-Hop Creek Area (Not Mapped)

These four unpatented leased claims cover a long-known drill-indicated deposit, the size of which is not confirmed at this time, but estimated to be about 250,000 lbs U₃O₈.  This estimate is based on work done by Mineral Recovery Corp. in the 1978-1984 timeframe.  One of EFRC’s geologists personally directed exploration of this property for Mineral Recovery Corp. and considers the estimate to be reliable.  Hop Creek trend is probably a tributary channel joining the east end of the larger La Sal trend channel, just over one mile to the south.

Utah Properties: Chinle Formation Uranium Deposits

Arth’s Pasture (Map Key 12)

This large block of claims, consisting of 331 unpatented claims, are owned by EFRC.  They lie a few miles west of Moab, Utah.  The area was drilled by Cotter and Exxon in the late 1970’s.  Drilling identifies at least 20,000 tons containing 96,000 lbs U₃O₈ at a grade of 0.24%.  This estimate is based on EFRC geologists evaluation of Cotter and Exxon drill information.  In addition, EFRC’s Vice President of Exploration, Dick White, was formerly with Cotter Corp. and is confident that Cotter’s work is reliable.  Vanadium is insignificant throughout this district.  This large claim group contains favorable sediments with a potential for a million plus pounds, but it is only an exploration target at this time.

Arizona Strip Properties

Energy Fuels Resources has a favorable position in the high-grade breccia pipe province of northern Arizona, holding properties directly acquired by EFRC, as well as properties acquired through a joint venture with High Plains Uranium, Inc.  In this district, EFRC currently controls a total of 209 mining claims and 1,120 acres on two Arizona State leases giving the company a total of 25 breccia pipe target properties.  Five of these target properties are confirmed pipes based on historical information from prior drilling results.  Several of the other properties have had some past exploration conducted on them and were identified as possible pipes but they require additional exploration to determine if they are breccia pipes.  Diversified exploration efforts are underway to systematically explore all of the targets using a variety of exploration techniques, including a surface drilling program that will be conducted on several of the targets during 2007

EFRC Properties

EFRC has staked 15 claims which include 3 individual pipe targets.  In addition EFRC has leased two Arizona State School Sections for a total of 1,120 acres where there are 2 additional pipe targets.  Of these 5 pipe targets owned 100% by EFRC, 2 are definite breccia pipes and the other 3 are possible pipes, as determined by reported past drilling data and exploration work.  These 5 target properties, listed below, will be further explored during 2007. 

Arizona Strip Resources JV LLC (High Plains Uranium, Inc. Joint Venture)

In November of 2006, EFRC entered into a Joint Venture agreement with High Plains Uranium, Inc. to explore Arizona Strip breccia pipe targets.  EFRC is the operator of the JV (“Arizona Strip Resources JV, LLC”).  Under the terms of the agreement, EFRC has a 50% interest in 20 lode claim blocks with the ability to earn an 80% interest upon the completion of certain events and expenditures.  Three of these blocks are south of the Grand Canyon, two are located south of Lee’s Ferry near Marble Canyon, and eleven are located north of the Grand Canyon.  The claim blocks range in size from 100 acres to 560 acres.  Of the 20 pipe targets there are 5 targets that have been reported as definite breccia pipes based on past exploration drilling data and several of the other targets have been reported as possible pipes based on previous exploration work.

Many of these claims are high potential “pipe” targets and the most attractive will be drilled and confirmed as permitting and budgets allow.  Following is a list of the claim blocks owned by the JV:

Drilling permits will be submitted to the Bureau of Land Management by the end of March in order to conduct exploration drilling on the W Claims 1-8.  The target on the W Claims 1-8 is considered a high priority target based on limited drilling exploration conducted on the target during the 1980’s by Energy Fuels Nuclear, Inc.  Based on that data this target is a definite breccia pipe.  EFRC intends to initiate drilling operations by June 2007.

Arial photography reconnaissance and field mapping work will be conducted on other targets prior to commencing drilling operations.  Results from this work will determine which project will follow the drilling on the W Claims.

Stephen P. Antony, P.E., a Qualified Person as defined by National Instrument 43-101 has reviewed and approved the content of these pages.