UraMin Inc. ("UraMin" or "the Company") - Preliminary Results for the Year Ended 31 December 2006



    Significant progress since AIM Listing

    Landmark year in prospect

    TORONTO, March 27 /CNW/ - UraMin (AIM and TSX: UMN), the emerging uranium
producer, announces preliminary results for the year ended 31 December 2006,
its first preliminary results since listing on AIM in April 2006. The
Company's major assets are the Trekkopje Project, Namibia; the Bakouma
Project, Central African Republic; and the Ryst Kuil Project, South Africa.

    
    Highlights

    -  Admitted to AIM in April and listed on Toronto Stock Exchange in
       December under the symbol "UMN"

    -  Feasibility Study for Trekkopje in Namibia on track for completion in
       the third quarter of 2007

    -  Acquired 90% interest in the Bakouma project in CAR and Feasibility
       Study underway

    -  Licences granted at Ryst Kuil in South Africa and SRK appointed to
       manage Feasibility Study

    -  Current working capital approximately US$300 million and no debt

    -  Increased portfolio of exploration properties in Africa and North
       America
    

    Ian Stalker, Chief Executive of UraMin, said:

    "UraMin has made significant progress on all its mineral properties in
2006 and now has three feasibility stage uranium projects underway all of
which are near term production opportunities. Following the recent fundraising
UraMin has approximately US$300 million to advance these projects. A trial
mine is planned at Trekkopje by the end of 2007 and we expect to be in
commercial production by the end of 2008. We are on track to meet our target
of being a mid-tier uranium producer early 2009."

    Chairman's Statement

    The scale of the world's nuclear industry is growing and UraMin is very
well placed to take advantage of this growth in demand for uranium.
    Global primary reactor-driven demand is currently estimated at 147
million lbs of U(3)0(8) each year. In 2005 only about 64 per cent of this
demand was satisfied by mine production with the balance being supplied from
secondary stockpiles. As these secondary stockpiles decline the demand for new
sources of mined uranium is growing and the price of uranium has been rising.
    Moreover, concerns over global oil supplies and global warming have
renewed interest in expanding nuclear energy supply. Improved reactor
performance, extended fuel cycles, increased generating capacity and reduced
operating costs are also contributing to a revival in nuclear power. There are
already 441 nuclear power reactors operating in 31 countries, however, as of
January 2006, there were a further 24 reactors under construction with an
additional 154 pending approval or approved. In addition to new plants, in
many cases the generating capacity of existing reactors is being increased and
plant life extended. It is estimated that over 90 per cent of the reactors in
the United States could apply for and be granted life extensions.
    With three advanced-stage uranium projects, UraMin is moving quickly
towards production and is set to become Africa's leading uranium producer. We
look forward to a rewarding period of growth.

    Samuel Jonah KBE


    Review of Operations

    Trekkopje Project - Namibia

    The Trekkopje Project(*) is the largest and most advanced UraMin project,
and is located in Western Namibia in close proximity to other operating
uranium mines. The Trekkopje project is 100% owned by UraMin Namibia, a
wholly-owned Namibian subsidiary of the Company. The Trekkopje Project
consists of two broad, shallow, calcrete uranium deposits: the Trekkopje
deposit and the Klein Trekkopje deposit.
    In November 2006, the Ministry of Mines and Energy ("MME") formally
granted UraMin Namibia an Exploration Licence ("EPL") covering the 37,368ha of
the Trekkopje Project area. In addition, an EPL was granted covering 91,611ha
of surrounding area with highly prospective exploration potential.
    SRK Consulting (US) Inc. ("SRK") of Denver, Colorado was retained by the
Company in May 2005 to prepare a Definitive Feasibility Study ("DFS") on the
Trekkopje Project which is expected to be completed in the third quarter of
2007.
    Since the year end, SRK has published its interim report which
demonstrated the potential for simple and cost-effective open pit mining, as
80% of the known mineralisation is shallower than 15 metres, below a nominal 2
metre alluvial surface. Heap leach is currently the preferred processing
technology following successful initial test work that indicated recoveries of
approximately 75%. On this basis, SRK has predicted a production profile for
Trekkopje rising to 8.4 million lbs U(3)0(8) per year. This compares favorably
with the 3.3 million lbs U(3)0(8) per annum of production previously forecast
using tank leach processing. Importantly, water consumption using heap
leaching is substantially lower than would be the case with tank leaching.
    A trial mine is planned for the fourth quarter of 2007 and commercial
production is planned for late 2008 with an initial estimated production rate
of 4.2 million lbs in 2009 scaling up to 8.4 million lbs in 2011 for total
production of 61 million lbs U(3)O(8) and 20 million lbs V(2)O(5). SRK
estimated operating costs of US$18.07 per lb U(3)O(8) after credit (US$20.08
per lb without V(2)O(5) credit) and estimated start up capital expenditure of
approximately US$0.5bn.

    Bakouma Project - Central African Republic

    The Bakouma Uranium Project(xx) is a high grade deposit located near the
village of Bakouma about 100km north of the Central African Republic's (CAR)
southern border with the Democratic Republic of the Congo. The Project
consists of ten documented uranium deposits in close proximity to one another.
A review of the studies conducted by Compagnie des Mines d'Uranium de Bakouma
and Societe de l'Uranium Centrafricain between 1969 and 1977 revealed an
exploration target in excess of 7 million tonnes at an average grade in excess
of 0.26% U(3)O(8) (which translates to 18,000 tonnes or 41 million lbs of
U(3)O(8)).(1)
    In May 2006, the Company acquired a 90% interest in a mining license
granted over the 10 known uranium deposits in the Bakouma Basin. The Company
also entered into a mining convention with the Central African Republic which
provides for a stable and favourable fiscal regime for the duration of the
25-year mining licence.
    An exploration programme, largely consisting of a confirmatory drilling
programme, commenced in August 2006. Phase 1 of this programme will be
completed shortly. The programme consists of 238 holes and is expected to
enable UraMin to issue a NI 43-101 compliant resource statement covering an
area representing approximately half of the targeted 41 million lbs.
    In December 2006 UraMin awarded the DFS for the Bakouma Project to GRD
Minproc (Pty) Ltd. The DFS is scheduled for completion in the second quarter
of 2008.
    Since the year end, in February 2007, the Company was awarded two
additional prospecting licenses which extend the Bakouma project area to 2,900
sq. km.

    
    (1) Based on historical estimates completed by Compagnie des Mines
        d'Uranium de Bakouma and Société de l'Uranium Centrafricain between
        1969 and 1977. These historic estimates do not comply with NI 43-101
        standards and should not be relied on as they do not conform to
        mineral category definitions used in codes recognized by NI 43-101.
    

    Ryst Kuil Project - South Africa

    The Company's assets in South Africa are comprised of a 74% interest in
both the Ryst Kuil and the Riet Kuil properties (together referred to as the
"Ryst Kuil Project"). The Ryst Kuil Project is located approximately 50 km
south-east of the town of Beaufort West in the Western Cape.
    UraMin has also identified several areas of interest in the Sutherland
district and hopes to acquire licences in this area in due course. The area
has been explored and evaluated in the past by various companies including
Union Carbide Corporation, Anglo American and Esso Minerals Africa Inc.
    Since the year end, SRK/Senet has been appointed to undertake Consulting
and Engineering Services for the completion of the DFS for the Ryst Kuil
Project. This work is expected to commence shortly.
    An exploration programme designed to deliver an NI 43-101 compliant
resource statement to DFS standard within 12 months is underway. The Directors
believe that the property is capable of being placed into commercial
production by late 2009 at the rate of 2.6-3.0 million lbs uranium per year
with significant molybdenum by-product.

    Financing

    UraMin has raised approximately US$397 million for operations since it
was admitted to the AIM market of the London Stock Exchange. In April 2006 the
Company raised gross proceeds of US$60 million by means of a private placement
of shares. Immediately prior to the Toronto Stock Exchange listing in December
2006, the Company raised a further US$70 million by means of a placement of
shares. Subsequent to the year end, in March 2007, the Company completed a
further placement of shares to raise an additional US$226 million. At the date
of this report the Company has working capital of approximately US$300 million
and no debt.

    Outlook

    UraMin has made significant progress on all its major projects since its
admission to AIM in April 2006 and following the recent fundraising it is well
placed to advance these projects. A trial mine is planned at Trekkopje by the
end of 2007 and the Company expects to be in commercial production by the end
of 2008. UraMin is on track to meet our target of becoming a mid-tier uranium
producer

    
    Glossary

    -------------------------------------------------------------------------
    DFS           Definitive feasibility Study: a comprehensive study of a
                  deposit in which all geological, engineering, operating,
                  economic and other relevant factors are considered in
                  sufficient detail for it to reasonably serve as the basis
                  for a final decision by a financial institution to finance
                  the development of the deposit for mineral production
    -------------------------------------------------------------------------
    EPL           Exclusive Prospecting License
    -------------------------------------------------------------------------
    U(3)0(8) ppm  Triuranium octaoxide
    -------------------------------------------------------------------------
    V(2)0(5)      Vanadium pentoxide
    -------------------------------------------------------------------------
    NI 43-101     National Instrument 43-101 - Standards of Disclosure for
                  Mineral Projects, Form 43-101F1 and Companion Policy 43-
                  101CP
    -------------------------------------------------------------------------
    Measured      A 'Measured Mineral Resource' is that part of a mineral
    Resource      resource for which quantity, grade or quality, densities,
                  shape, and physical characteristics are so well established
                  that they can be estimated with confidence sufficient to
                  allow the appropriate application of technical and economic
                  parameters, to support production planning and evaluation
                  of the economic viability of the deposit. The estimate is
                  based on detailed and reliable exploration, sampling and
                  testing information gathered through appropriate techniques
                  from locations such as outcrops, trenches, pits, workings
                  and drill holes that are spaced closely enough to confirm
                  both geological and grade continuity.
    -------------------------------------------------------------------------
    Indicated     An 'Indicated Mineral Resource' is that part of a mineral
    Resource      resource for which quantity, grade or quality, densities,
                  shape and physical characteristics can be estimated with a
                  level of confidence sufficient to allow the appropriate
                  application of technical and economic parameters, to
                  support mine planning and evaluation of the economic
                  viability of the deposit. The estimate is based on detailed
                  and reliable exploration and testing information gathered
                  through appropriate techniques from locations such as
                  outcrops, trenches, pits, workings and drill holes that are
                  spaced closely enough for geological and grade continuity
                  to be reasonably assumed.
    -------------------------------------------------------------------------
    Lb            Pound
    -------------------------------------------------------------------------
    Uranium       Heavy silvery-white metallic element found in several
                  minerals, notably uraninite and carnotite
    -------------------------------------------------------------------------
    Tpd           Tonnes per day
    -------------------------------------------------------------------------


    (*) Trekkopje Project, Namibia

    The resource information contained in this announcement has been reviewed
    by Allan Moran, Principal Geologist with SRK. He is the Qualified Person
    overseeing the Trekkopje Project drilling and resource estimation
    activities for the purposes of NI 43-101 compliance. Mr. Moran has
    sufficient experience relevant to the style of mineralisation and type of
    deposit under consideration and to the activity which he is undertaking,
    to qualify as a Qualified Person for the purposes of this announcement.

    Resource estimation by SRK, follows CIM (Canadian Institute of Mining and
    Metallurgy) resource classification categories, and resources were
    determined using background-corrected (e)U(3)O(8) radiometric probe data,
    ordinary kriging for grade estimation and industry standard block
    modelling techniques. Industry accepted "Best Practices Guidelines" were
    followed in data collection, documentation, analyses, and reporting.
    UraMin has a QA/QC program in place for sample analytical data and down-
    hole radiometric probe data. The stated Trekkopje Project resource
    estimates are based on entirely new drilling data collected in 2006 by
    UraMin, and does not include any historical drill hole data.

    SRK's Interim Progress Update Report on the Trekkopje Project represents
    the latest view of project concepts, designs and likely projected
    outcomes based on the work conducted to date, industry accepted practice
    and certain project specific assumptions. Readers are cautioned that the
    results reported are not definitive and may be subject to change as
    further work is undertaken. Project outcomes may ultimately be materially
    different from those projected in this report.


    (xx) Bakouma Project, Central African Republic

    Information in this document which relates to the Bakouma Project,
    Central African Republic has been reviewed by Mr. G M Greenway of Snowden
    Mining Industry Consultants. A Registered Natural Scientist with the
    South African Council for Natural Scientists. Mr Greenway is an
    independent consultant to UraMin and has consented to the inclusion in
    this announcement of his name in the form and context in which it
    appears.



    Financial Results

    Unaudited consolidated income statement for the year ended 31 December
    2006

    -------------------------------------------------------------------------

                                                     Year ended    10 month
                                                         31      period ended
                                                      December   31 December
                                                        2006         2005
                                                          $            $

    Operating loss                                  (25,846,279)  (3,103,897)

    Finance income                                    2,063,268      220,958
    -------------------------------------------------------------------------
    Loss for the year attributable to equity
     holders of the parent                          (23,783,011)  (2,882,939)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Basic loss per share (cents)                          (14.9)        (3.3)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    Unaudited consolidated statement of recognised income and expense for the
    year ended 31 December 2006

    -------------------------------------------------------------------------

                                                     Year ended    10 month
                                                         31      period ended
                                                      December   31 December
                                                        2006         2005
                                                          $            $

    Exchange adjustment on translation of subsidiary
     and branch undertakings recognised directly
     in equity                                         (609,703)      (2,484)
    Loss for the year attributable to equity
     holders of the parent                          (23,783,011)  (2,882,939)
    -------------------------------------------------------------------------
    Total recognised income and expenses relating
     to the year                                    (24,392,714)  (2,885,423)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    Unaudited consolidated balance sheet at 31 December 2006

    -------------------------------------------------------------------------

                                                       At 31        At 31
                                                      December     December
                                                        2006         2005
                                                          $            $
    ASSETS
    -------------------------------------------------------------------------
    Non-current assets                               52,279,915   16,890,165
    -------------------------------------------------------------------------
    Property, plant and equipment                     2,000,513    1,139,267

    Intangible assets                                50,279,402   15,750,898

    -------------------------------------------------------------------------
    Current assets                                   97,896,146   25,352,931
    -------------------------------------------------------------------------
    Trade and other receivables                       1,140,058      779,326
    Cash and cash equivalents                        96,756,088   24,573,605

    -------------------------------------------------------------------------
    Total assets                                    150,176,061   42,243,096
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    EQUITY AND LIABILITIES
    -------------------------------------------------------------------------
    Equity attributable to equity holders
     of the parent                                  145,526,517   37,547,557
    -------------------------------------------------------------------------
    Share premium account                           167,070,241   40,432,980
    Warrant reserve                                   2,174,388            -
    Foreign currency translation reserve               (612,187)      (2,484)
    Retained earnings                               (23,105,925)  (2,882,939)

    Liabilities
    -------------------------------------------------------------------------
    Non-current liabilities                           2,387,723    3,653,624
    -------------------------------------------------------------------------
    Finance lease                                        63,075            -
    Installment sale obligation                       2,324,648    3,653,624

    -------------------------------------------------------------------------
    Current liabilities                               2,261,821    1,041,915
    -------------------------------------------------------------------------
    Trade and other payables                          2,244,478    1,041,915
    Current portion of finance lease                     17,343            -

    -------------------------------------------------------------------------
    Total equity and liabilities                    150,176,061   42,243,096
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    Unaudited consolidated cash flow statement for the year ended 31 December
    2006

    -------------------------------------------------------------------------

                                                     Year ended    10 month
                                                         31      period ended
                                                      December   31 December
                                                        2006         2005
                                                          $            $

    Cash flows from operating activities            (22,526,619)     809,832
    -------------------------------------------------------------------------
    Cash flow from investing activities
    -------------------------------------------------------------------------
    Interest received                                 2,063,268      220,958
    Purchase of property, plant and equipment        (1,014,667)  (1,139,267)
    Purchase of intangible assets                   (34,528,504) (15,750,898)
    -------------------------------------------------------------------------
    Net cash outflow used in investing activities   (33,479,903) (16,669,207)
    -------------------------------------------------------------------------

    Cash flows from financing activities
    -------------------------------------------------------------------------
    Share capital introduced                        138,223,869   42,055,719
    Share issue costs                               (10,034,864)  (1,622,739)
    -------------------------------------------------------------------------
    Net cash from financing activities              128,189,005   40,432,980
    -------------------------------------------------------------------------

    Net increase in cash and cash equivalents        72,182,483   24,573,605
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Cash and cash equivalents at beginning of year   24,573,605            -
    -------------------------------------------------------------------------
    Cash and cash equivalents at end of year
     (period)                                        96,756,088   24,573,605
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    Notes to the preliminary results for the year ended 31 December 2006

    Accounting policies and basis of preparation

    Uramin Inc is registered and domiciled in the British Virgin Islands. The
    financial statements incorporate the principle accounting policies set
    out below and are consistent with those adopted in the previous financial
    period.

    Basis of preparation

    The financial statements have been prepared in US dollars under the
    historical cost convention and in accordance with International Financial
    Reporting Standards as endorsed by the EU. The following principal
    accounting policies have been applied:

    Basis of consolidation

    Where the company has the power, either directly or indirectly, to govern
    the financial and operating policies of another entity or business so as
    to obtain benefits from its activities, it is classified as a subsidiary.
    The consolidated financial statements present the results of the company
    and its subsidiaries ("the group") as if they formed a single entity.
    Intercompany transactions and balances between group companies are
    therefore eliminated in full.

    -------------------------------------------------------------------------

    Basic loss per share

    The loss per ordinary shares has been calculated using the weighted
    average number of shares in issue during the period. The weighted average
    number of ordinary shares in issue in the period was 160,139,335
    (31 December 2005 - 88,072,480) and the loss, being the loss after tax,
    was $23,783,011 (31 December 2005 - $2,882,939)

    Due to the losses incurred during the period a diluted loss per share has
    not been calculated as this would serve to reduce the basic loss per
    share.

                                                               Group
                                                     Year ended    10 month
                                                         31      period ended
                                                      December   31 December
                                                        2006         2005
                                                          $            $

    Loss for the year                               (23,783,011)  (2,882,939)
    Weighted average share in issue                 160,139,335   88,072,480
    -------------------------------------------------------------------------

    Loss per weighted average share in issue (cents)      (14.9)        (3.3)

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    Taxation on loss from ordinary activities

    No taxation has been provided for the group for the year ended
    31 December 2006. A deferred tax asset has not been provided due
    to the uncertainty of when losses will be utilised

    Segmental reporting

    Segmental information is presented in respect of the Group's geographical
    and operational segments. Segmental information, assets, liabilities,
    income and expenses include items directly attributable to the segment
    that can be allocated on a reasonable and consistent basis.

    As the business is currently only involved in exploration only geographic
    segments have been provided.

    Year ended 31   South
    December 2006   Africa     Namibia       CAR      Corporate       Total
                      $           $           $            $            $

    Finance
     income         21,306       9,132           -    2,032,830    2,063,268

    Net loss    (5,001,134) (3,943,321) (2,408,709) (12,429,847) (23,783,011)

    Total
     non-current
     assets      9,004,425     461,710   7,173,786   35,639,994   52,279,915

    Total lia-
     bilities    2,508,449     121,150   1,198,782      821,163    4,649,544


    10 month
    period ended
    31 December     South
    2005            Africa     Namibia       CAR      Corporate       Total
                      $           $           $            $            $

    Finance
     income          8,177         342           -      212,439      220,958

    Net (loss)/
     profit          8,254    (380,339)          -   (2,510,854)  (2,882,939)

    Total
     non-current
     assets      1,113,958     210,886           -   15,565,321   16,890,165

    Total
     liabilities   742,641      76,535           -    3,869,363    4,688,539
    




For further information:

For further information: UraMin: Ian Stalker, Chief Executive Officer,
Tel: +27 (0)11 783 5056; Neil Herbert, Finance Director, Tel: +27 (0)11 783
5056; Canaccord Adams Limited: Robin Birchall, Tyler Broda, Tel: +44 (0)20
7050 6500; Toronto: Steve Vaughan, Tel: (416) 643-6924; Financial Dynamics:
Ben Brewerton, Edward Westropp, Tel: +44 (0)20 7831 3113

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