Trekkopje

AREVA obtained the first batch of uranium concentrate in the development phase of the Trekkopje mining project in Namibia.

A technical report dated Apr 26/07 was released and provides the results of a recent resource update and the status as of the end of Jan/07 of the Bankable Feasibility Study (BFS) in progress. Measured and indicated resources total 144.6 Mt grading 146 ppm eU3O8 for 21,084 contained tonnes eU3O8 or 46.48 million contained pounds U3O8. Inferred resources are estimated at 195.3 Mt grading 138 ppm for 26.894 tonnes or 59.3 million pounds eU3O8. (See May 8/07 for the results of the final NI 43-101-compliant definitive feasibility study (DFS) resource statement). Based upon current assumptions (603 million total capital costs, 1.23 billion total operating costs, open pit with 100,000 tpd production rate and 75% heap leach recovery), pre-tax project NPV (10% discount) is US$1.0 billion with an IRR of 67%.

Results of the final NI 43-101-compliant definitive feasibility study (DFS) resource statement were announced. At a cut-off grade of 100 ppm eU3O8, measured and indicated resources now total 335 million tonnes at an average grade of 149 ppm eU3O8, containing 50,074 tonnes eU3O8 (110 million pounds eU3O8). This represents a 94% conversion rate of resources from the inferred to measured and indicated resource categories. Inferred resources stand at 29 million tonnes at an average grade of 126 ppm U3O8, containing 3,653 tonnes eU3O8 (8 million pounds eU3O8). The Trekkopje DFS remains on schedule for completion in the 3rd quarter of 2007 and first production is on track for the 1st quarter of 2008.