May 22, 2008
Toronto, Ontario – May 22, 2008 Energy Fuels Inc.
Mesa Uranium Joint Venture
Energy Fuels (TSX: EFR) and Mesa Uranium are pleased to announce that the companies have signed a definitive agreement (following the announcement of the Letter of Intent released in a June 5, 2007 news release) to form an exploration joint venture, West Lisbon JV, LLC (“West Lisbon”). West Lisbon was formed to explore the DAR property in the Lisbon Valley Mining District of San Juan County, Utah, and supports the Energy Fuels strategy of expanding existing mines and defined resources with nearby, accessible potential uranium resource properties. The northern boundary of the DAR property is located approximately two miles south of Energy Fuels’ Energy Queen Mine which is currently being refurbished in preparation for production.
As previously released, the DAR property consists of 60 recently staked mining claims (approximately 1,240 acres) located one mile west of the North Alice Mine and is on trend with historic uranium mines in the Lisbon Valley District. The property is in a geologically similar environment and on trend with thick mineralization recently announced by Vane Minerals in a press release dated 11/16/2007. Vane’s best intercepts ranged between 6.5 and 16.5 feet thick, and graded between 0.14% and 0.22% eU3O8.
West Lisbon contemplates a 50-50 shared expenditure agreement to conduct exploration drilling on the DAR property. Previous exploration work in the 1980’s by Energy Fuels Nuclear, Inc. identified strong uranium mineralization in several drill holes. Energy Fuels will be the operator of West Lisbon and will conduct the initial exploration work consisting of permitting and drilling. Should an economic uranium deposit be discovered on the claims held by West Lisbon, Energy Fuels will operate all mines that are developed.
Whirlwind Mine BLM Permit Progress
Energy Fuels moved closer to being fully permitted at the Whirlwind Mine. An Environmental Assessment prepared by a third party consultant to evaluate the environmental impacts of the proposed Whirlwind mining plan was approved by the US Bureau of Land Management (BLM) on May 15, 2008, and is now out for public comment. The public will have until June 20, 2008, to review and offer comments on the document. After the close of the public comment period, the BLM will review the comments received. Energy Fuels anticipates approval of the Whirlwind Mine plan of operations by the BLM in July, 2008.
Energy Fuels has elected, through a resolution of its Board of Directors, to extend the expiry date of 5,687,637 issued and outstanding warrants of the Company (the “Warrants”) from 5:00 p.m. (Toronto time) on June 14, 2008 to 5:00 p.m. (Toronto time) on June 14, 2009. The Warrants were issued December 14, 2006. Each Warrant entitles its holder to purchase one common share in the capital of the Company at a price of $2.20 per share. 76,465 of the Warrants are held by insiders of the Company (“Insider Warrants”) and the balance of the Warrants is held by parties at arm’s length to the Company.
The effective date of the amendment to the term of the Warrants held by arm’s length parties will be on the tenth business day following the issuance of this press release. The Insider Warrants may not be exercised after 5:00 p.m. on June 14, 2008 until the amendments to the Insider Warrants are approved by the holders of a majority of the voting shares of the Company at its next meeting of the shareholders, excluding votes cast by, or on behalf of, the insiders whose Warrants are proposed to be amended (“Shareholder Approval”). The amendment to the term of Insider Warrants will be effective once Shareholder Approval is obtained. The Company expects to seek Shareholder Approval of the amendment to the Insider Warrants at its next annual meeting of the shareholders, which is anticipated to be held in early 2009.
The amendment to the term of the Warrants has been approved by the Toronto Stock Exchange, subject to certain conditions, including obtaining the Shareholder Approval described above with respect to the Insider Warrants, filing of certain documents with the Toronto Stock Exchange and the issuance of this press release.
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.
About Energy Fuels
Energy Fuels Inc. is a Toronto-based uranium and vanadium mineral exploration and development company actively rehabilitating and developing formerly producing mines. With more than 40,000 acres of highly prospective uranium and vanadium property located in the states of Colorado, Utah and Arizona, Energy Fuels has a full pipeline of additional development prospects. Energy Fuels, 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.
President & CEO
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Energy Fuels Inc
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