Project Description

The 40,256 hectare (~ 98,000 acres) Waterbury Lake Uranium Property is located in the Province of Saskatchewan and surrounds the AREVA/Denison Midwest Uranium Deposit (41 million lbs U3O8 at an average grade of about 5.5% U3O8), and the Midwest "A" discovery within the east-central part of Saskatchewan's Athabasca Basin. This structural trend continues on to the northeast portion of the property.

In January 2010, a 20 hole with 7,500m drill program budgeted at $2.68 million were commenced. On January 25th,
the Company found significant radioactivity in drill hole WAT10-063A, located in the Discovery Bay Zone, approximately 140m west of the Roughrider uranium discovery. Hole WAT10-63A intersected 10.5m grading 1.91% U3O8 from 226.0m to 236.5m downhole. Included in this interval is a high grade intersection of 1.0m grading 13.87% U3O8 from 230.0m to 231.0m On February 8th, the Company completed three additional vertical step-out holes in close proximity to WAT-063A to further define the extent and geometric shape of this new discovery, which was named the "J-Zone". Further drilling to the end of March, confirmed the continuity of high grade uranium mineralization over exceptional widths, trending laterally to the west of discovery hole WAT10-063A. By the end of the Winter 2010 program 21 drill holes defined the "J-Zone" over an area of 90m x 50m. It remains open along strike and to the west, north and south. New mineralization was also discovered at the "J-Zone East" and "Highland Zone", located on strike 70m East and 130m west of the "J-Zone" respectively.

With the completion of the Waterbury Lake 2010 winter drill program, the KEPCO Waterbury Consortium has satisfied its earn-in requirements by spending $14 Million over the past three years. The Joint Venture continued as a Limited Partnership with Fission and the KEPCO Consortium each holding a 50% interest in the Waterbury Lake Project.
A Memorandum of Understanding outlining the mutually agreed terms to accelerate exploration and development expenditures to $30 Million over the next three years has been signed on June 30, 2010 and finally, a Definitive Limited Partnership Agreement was entered into on August 16, 2010.