Uranium One Announces 75% Increase in Production for the First Half of 2009



    
    Trading Symbols:  UUU - Toronto Stock Exchange, JSE Limited (Johannesburg
    Stock Exchange)
    


    VANCOUVER, Aug. 10 /CNW/ - Uranium One Inc. ("Uranium One") today
reported operational and financial results for the quarter ending June 30,
2009. The financial statements, as well as the accompanying management's
discussion and analysis, are available for review at www.uranium1.com and
should be read in conjunction with this news release. All figures are in U.S.
dollars unless otherwise indicated. All references to pounds sold or pounds
produced are pounds of U(3)O(8).

    
    Q2 2009 Highlights:

    -  Total attributable production of 833,800 pounds during Q2 2009, 9%
       higher than the 767,100 pounds of attributable production recorded
       during Q2 2008 and 18% higher than total attributable production of
       708,500 in Q1 2009.
    -  The average total cash cost per pound sold was $17 per pound during
       Q2 2009.
    -  In line with scheduled deliveries under sales existing contracts,
       attributable sales volumes during Q2 2009 were 385,100 pounds, 44%
       lower than attributable sales volumes of 685,600 pounds during Q2
       2008.
    -  The average realized sales price during Q2 2009 was $48 per pound,
       generating revenue of $18.6 million, compared to an average realized
       sales price of $72 per pound, generating revenue of $49.4 million
       during Q2 2008.
    -  Earnings from mine operations were $6.6 million during Q2 2009, an 80%
       decrease compared to earnings from mine operations of $32.9 million
       during Q2 2008.
    -  On June 15, 2009 Uranium One announced the signing of a definitive
       purchase agreement to acquire a 50% interest in the Karatau Uranium
       Mine in Kazakhstan from ARMZ.
    

    Jean Nortier, President and CEO of Uranium One commented:
    "Uranium One achieved record production during the second quarter, driven
by steady performance from Akdala and the ramp-up in production from South
Inkai, which continues to meet targets. Our mines are continuing to generate
healthy operating margins with total cash costs per pound sold in line with
our expectations at $17 per pound during the quarter."

    Operations and Projects

    For the six months ending June 30, 2009 Uranium One's attributable
production was 1,516,400 pounds U(3)O(8), an increase of 75% over attributable
production of 866,800 pounds U(3)O(8) for the comparable period in 2008. The
average cash cost per pound sold was $17 per pound during the six months
ending June 30, 2009, compared to $13 per pound during the comparable period
in 2008.
    Operational results for Uranium One's operations and project during Q2
2009 were:

    
    -  At the Akdala Uranium Mine, attributable production of 438,800 pounds;
       total cash costs were $13 per pound sold.
    -  At the South Inkai Uranium Mine, attributable production of 376,700
       pounds; cash operating costs for Q2 2009 were $23 per pound sold.
    -  At the Kharasan Uranium Project, pilot production continued during the
       quarter, with attributable production during commissioning of 18,300
       pounds.
    

    On July 9, 2009 Uranium One announced an updated NI 43-101 compliant
mineral resource estimate for South Inkai provided by Hellman & Schofield Pty.
Ltd. as at December 31, 2008 with total indicated resources of 34.1 million
tonnes at a U(3)O(8) grade of 0.053%, containing 39.6 million pounds U(3)O(8)
(27.7 million pounds attributable to Uranium One) and total inferred resources
of 42.8 million tonnes at a U(3)O(8) grade of 0.047%, containing 44.4 million
pounds U(3)O(8) (31.1 million pounds attributable to Uranium One). The
previously reported mineral resource estimate dated October 2, 2006 was 57.7
million tonnes grading 0.048% U(3)O(8), containing 62.0 million pounds
U(3)O(8) in the inferred category (43.4 million pounds attributable to Uranium
One).

    Outlook

    Uranium One's attributable production estimate for 2009 remains 3.5
million pounds. With the completion of the acquisition of the 50% joint
venture interest in Karatau, total production guidance for 2010 will increase
by 35% from 5.6 million pounds to 7.5 million pounds.
    During 2009, the average cash cost per pound sold is expected to be
approximately $16 per pound at Akdala, including Kazakh mineral extraction tax
of approximately $2 per pound. The average cash cost per pound sold is
expected to be approximately $22 per pound at South Inkai, including Kazakh
mineral extraction tax of approximately $4 per pound.
    Uranium One currently has contracts for the sale of an aggregate of 25
million attributable pounds, 16 million pounds of which are contracted at
weighted average floor prices of approximately $46 per pound. The remainder of
contracted attributable sales are not subject to floors and such sales are
related to the spot price of U(3)O(8), except for 910,000 pounds, which will
be sold at an average fixed price of $79 per pound, subject to escalation.
    For 2009, Uranium One expects to sell between 2.4 million and 2.8 million
attributable pounds. Uranium One has already contracted for the sale of 2.2
million attributable pounds in 2009, of which 700,000 pounds have weighted
average floor prices of approximately $43 per pound. Sales of U(3)O(8) into
the spot market will be at Uranium One's discretion.
    Attributable inventory levels at our 70% owned Betpak Dala JV are
expected to increase from approximately 1.2 million pounds at December 31,
2008 to between approximately 1.8 million and 2.2 million pounds by the end of
2009.
    In 2009, capital expenditure by Betpak Dala is expected to be $30 million
at South Inkai and $6 million at Akdala (on a 100% basis). For development of
its assets in Wyoming, Uranium One now expects to incur capital expenditures
of $13 million during 2009.
    General and administrative expenses, excluding stock-based compensation,
are expected to be approximately $28 million for 2009; care and maintenance
costs at Dominion are expected to be $12 million for 2009.
    The C$270 million private placement and formation of a strategic
relationship with a Japanese consortium announced in February 2009 will be
completed following receipt of regulatory approval from the Kazakhstan
Ministry of Energy and Mineral Resources, which is now expected by the end of
2009.
    The previously announced acquisition of a 50% interest in the Karatau
Uranium Mine in Kazakhstan is subject to regulatory approvals, including
Kazakh Ministry of Energy and Mineral Resources approval, and is expected to
close by the end of 2009.

    Q2 2009 Financial Review

    Revenues for Q2 2009 were $18.6 million, compared to $49.4 million during
Q2 2008 with the decrease being due to lower sales volumes as well as a lower
average realized uranium price during the most recent quarter.
    The average cash cost per pound sold in Q2 2009 was $17 per pound. This
was an increase over the $14 average cash cost per pound sold recorded in Q2
2008 due primarily to the inclusion of the new Kazakh Mineral Extraction Tax
as well as the inclusion of initial production from South Inkai, which is
currently in ramp up.
    The net loss from continuing operations in Q2 2009 was $265.7 million, or
$0.57 per basic and diluted share, which includes a non-cash write-off of
$251.1 million arising from the realization of the accumulated translation
loss on Dominion, as well as a write-down of certain assets held for sale. The
net loss from continuing operations in Q2 2008 was $68.2 million, or $0.15 per
basic and diluted share.
    The adjusted net loss for Q2 2009 was $12.9 million, or $0.03 per basic
and diluted share compared to adjusted net earnings for Q2 2008 of $6.6
million, or $0.01 per basic and diluted share.
    Consolidated cash and cash equivalents were $183.9 million as at June 30,
2009 compared to $203.9 million at March 31, 2009. Working capital was $239.8
million at June 30, 2009.


    
    FINANCIAL SUMMARY               Q2 2009    Q2 2008   YTD 2009   YTD 2008
    -------------------------------------------------------------------------
    Attributable
     production (lbs)(1)            815,500    435,300  1,516,400    866,800
    Attributable sales (lbs)(1)     385,100    685,600  1,265,700    968,900

    Average realized
     sales price ($ per lb)(2)           48         72         49         74
    Average cash cost of
     production sold ($ per lb)(2)       17         14         17         13
    Revenues ($ millions)              18.6       49.4       61.5       71.9
    Earnings from mine
     operations ($ millions)            6.6       32.9       22.5       49.2
    Net loss from continuing
     operations ($ millions)         (265.7)     (68.2)    (202.4)     (78.5)
    Loss per share from continuing
     operations - basic and diluted
     ($ per share)                    (0.57)     (0.15)     (0.43)     (0.17)
    Earnings / (loss) from
     discontinued operations
     ($ millions)                       0.8        0.3       (1.4)    (104.3)
    Earnings (loss) per share
     from discontinued operations -
     basic and diluted ($ per share)   0.00       0.00      (0.00)     (0.22)
    Net loss ($ millions)            (264.9)     (67.9)    (203.8)    (182.8)
    Net loss per share - basic
     and diluted ($ per share)        (0.56)     (0.15)     (0.43)     (0.39)

    Adjusted net (loss) / earnings
     ($ millions)(2)                  (12.9)       6.6      (18.4)      (3.7)
    Adjusted net (loss) / earnings
     per share - basic
     ($ per share)(2)                 (0.03)      0.01      (0.04)     (0.01)


    Notes:
        1.  Attributable production and sales are from assets in commercial
            production during the period (Akdala and South Inkai in Q2 2009
            and YTD 2009 and Akdala in Q2 2008 and YTD 2008).
        2.  The Corporation has included non-GAAP performance measures:
            average realized sales price per pound, cash cost per pound sold,
            adjusted net earnings/(loss) and adjusted net earnings/(loss) per
            share. In the uranium mining industry, these are common
            performance measures but do not have any standardized meaning,
            and are non-GAAP measures. The Corporation believes that, in
            addition to conventional measures prepared in accordance with
            GAAP, the Corporation and certain investors use this information
            to evaluate the Corporation's performance and ability to generate
            cash flow. The additional information provided herein should not
            be considered in isolation or as a substitute for measures of
            performance prepared in accordance with GAAP.


    The following table provides a reconciliation of adjusted net earnings /
(loss) to the consolidated financial statements:

    Figures in US$ 000's,
     except per share                 3 months ended        6 months ended
                                   ------------------------------------------
                                    Jun 30,    Jun 30,    Jun 30,    Jun 30,
                                     2009       2008       2009       2008
                                   $(000's)   $(000's)   $(000's)   $(000's)
    -------------------------------------------------------------------------
    Net loss from
     continuing operations         (265,726)   (68,195)  (202,370)   (78,508)
    Unrealized foreign exchange
     loss / (gain) on future
     income tax liabilities           1,776       (171)   (67,123)    (1,309)
    Impairment of mineral
     interests, plant and
     equipment (net of tax of
     $23,880 for the 3 and 6
     months ended June 30, 2008)    251,064     81,209    251,064     81,209
    Gain on sale of available for
     sale securities (net of tax
     of $2,397 for the 3 and 6
     months ended June 30, 2008)          8     (6,205)         8     (5,070)
    -------------------------------------------------------------------------
    Adjusted net (loss) / earnings  (12,878)     6,638    (18,421)    (3,678)
    -------------------------------------------------------------------------
    Adjusted net (loss) / earnings
     per share - basic ($)            (0.03)      0.01      (0.04)     (0.01)

    Weighted average number of
     shares (thousands) - basic     469,690    468,166    469,652    467,809
    


    Conference Call Details

    Uranium One will be hosting a conference call and webcast to discuss the
second quarter 2009 results on Monday, August 10, 2009 starting at 10:00 a.m.
(Eastern Time). Participants may join the call by dialling toll free
1-800-731-6941 or 1-416-644-3420 for local calls or calls from outside Canada
and the United States. A live webcast of the call will be available through
CNW Group's website at: www.newswire.ca/webcast
    A recording of the conference call will be available for replay for a two
week period beginning at approximately 12:00 p.m. (Eastern Time) on August 10,
2009 by dialling toll free 1-877-289-8525 or 1-416-640-1917 for local calls or
calls from outside Canada and the United States. The pass code for the replay
is 21311444. A replay of the webcast will be available through a link on our
website at www.uranium1.com

    About Uranium One

    Uranium One is one of the world's largest publicly traded uranium
producers with a globally diversified portfolio of assets located in
Kazakhstan, the United States, South Africa and Australia.


    Cautionary Statement

    No stock exchange, securities commission or other regulatory authority
has approved or disapproved the information contained herein.
    Investors are advised to refer to independent technical reports
containing detailed information with respect to the material properties of
Uranium One. These technical reports are available under the profiles of
Uranium One Inc., UrAsia Energy Ltd., and Energy Metals Corporation at
www.sedar.com. Those technical reports provide the date of each resource or
reserve estimate, details of the key assumptions, methods and parameters used
in the estimates, details of quality and grade or quality of each resource or
reserve and a general discussion of the extent to which the estimate may be
materially affected by any known environmental, permitting, legal, taxation,
socio-political, marketing, or other relevant issues. The technical reports
also provide information with respect to data verification in the estimation.
    This document uses the terms "indicated" and "inferred" resources as
defined in accordance with National Instrument 43-101 - Standards of
Disclosure for Mineral Projects. United States investors are advised that
while these terms are recognized and required by Canadian regulations, the SEC
does not recognize them. Investors are cautioned not to assume that all or any
part of the mineral deposits in these categories will ever be converted into
reserves. In addition, "inferred resources" have a great amount of uncertainty
as to their existence and economic and legal feasibility and it cannot be
assumed that all or any part of an inferred mineral resource will be ever be
upgraded to a higher category. Investors are cautioned not to assume that all
or any part of an inferred resource exists or is economically or legally
mineable. Mineral resources are not mineral reserves and do not have
demonstrated economic viability.
    Scientific and technical information contained herein has been reviewed
on behalf of the Corporation by Mr. M.H.G. Heyns, Pr.Sci.Nat. (SACNASP),
MSAIMM, MGSSA, Senior Vice President Technical Services of the Corporation,
and by Mr. Simon Gatehouse, B.Sc. (Hons) Geology, MAIG, Consulting Geologist
of Hellman & Schofield Pty. Ltd. (for South Inkai resources only), both
Qualified Persons for the purposes of NI 43-101.
    Forward-looking statements: This press release contains certain
forward-looking statements. Forward-looking statements include but are not
limited to those with respect to the price of uranium, the estimation of
mineral resources and reserves, the realization of mineral reserve estimates,
the timing and amount of estimated future production, costs of production,
capital expenditures, costs and timing of the development of new deposits,
success of exploration activities, permitting time lines, currency
fluctuations, requirements for additional capital, government regulation of
mining operations, environmental risks, unanticipated reclamation expenses,
title disputes or claims and limitations on insurance coverage and the timing
and possible outcome of pending litigation. In certain cases, forward-looking
statements can be identified by the use of words such as "plans", "expects" or
"does not expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate", or "believes"
or variations of such words and phrases, or state that certain actions, events
or results "may", "could", "would", "might" or "will" be taken, occur or be
achieved. Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of Uranium One to be materially different from any
future results, performance or achievements expressed or implied by the
forward-looking statements. Such risks and uncertainties include, among
others, the actual results of current exploration activities, conclusions of
economic evaluations, changes in project parameters as plans continue to be
refined, possible variations in grade and ore densities or recovery rates,
failure of plant, equipment or processes to operate as anticipated, accidents,
labour disputes or other risks of the mining industry, delays in obtaining
government approvals or financing or in completion of development or
construction activities, risks relating to the integration of acquisitions, to
international operations, to prices of uranium as well as those factors
referred to in the section entitled "Risk Factors" in Uranium One's Annual
Information Form for the year ended December 31, 2008, which is available on
SEDAR at www.sedar.com, and which should be reviewed in conjunction with this
document. Although Uranium One has attempted to identify important factors
that could cause actual actions, events or results to differ materially from
those described in forward-looking statements, there may be other factors that
cause actions, events or results not to be as anticipated, estimated or
intended. There can be no assurance that forward-looking statements will prove
to be accurate, as actual results and future events could differ materially
from those anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking statements. Uranium One expressly
disclaims any intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise, except in accordance with applicable securities laws.

    For further information about Uranium One, please visit uranium1.com.
    %SEDAR: 00005203E




For further information:

For further information: Jean Nortier, Chief Executive Officer, Tel:
(604) 601-5642; Chris Sattler, Executive Vice President, Corporate Development
and Investor Relations, Tel: (416) 350-3657

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