keeping it real, page-8

Fair call SP3

They have nothing in terms of 'tangibles' as you know.

They have gone through the 'process' of negotiations at Rozna and Brzkov and have failed...at least on the 'first' attempt.

The negative view will support this.

These failures have contributed to the sentiment and the doubt.

However....

The last 12 months has created much more 'potential value' more negotiations, more experience and finally we are getting to the business end of the season so to speak.

The value for example at Uran being over $1 is based on what we can safely assume are any number of projects in a number of countries closing in on finality...of some description.

The value has to be recognised from a speculative point of view.

The $1 + valuation and more to the point the Market cap that would be sub $100 million as a result would be deemed 'cheap' for a company on the brink of production in 12-24 months.

Ukraine will be announced in the next 6 weeks or thereabouts.
We 'know' that Uran were confident enough '12 months ago' to forecast 'production within 12 months' with this on board.
So from a Ukraine point of view what value do you put on the 'possibility' of this project getting the green light in 6 weeks?
More i'd suggest than what we have now.

Czech has several opportunities at various stages. Some or all will be known/finalised THIS YEAR.
What value do you put on that? Again production here could be immediately with Rozna..depending on the deal, or within 18 months conservatively with Pribram waste/reopening of old mine.
I'd suggest more than current MC and share price.

We then go to Kazakhstan. negotiations are underway/ongoing...and most likely to be announced sometime in 2007.
Again some blue sky valuation needs to be applied here.

This doesnt include other CIS countries in the mix; Bulgaria, Uzbekistan or Africa.

When you add $5 million in the bank, we see 12 months of negotiations and the value thats hard to quantify and its not hard to see that Uran right now is trading below where it should be..

REMEMBERING the vision and focus here:

Advanced/near production targets.

The market is discounting everything bar a greenfields project that might be mined in 10 years imo.

Its a bargain based on expected developments this year that will lead this company to production in 2008 into 2009.


SP3 Uran have nothing. And they are dramatically undervalued.

The dichotomy and irony of the situation.