kah chairman - 500m lbs, page-4

And from Ambrian......

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Rossing South Scoping Study
03 August 2009


Extract Resources, in which Kalahari* owns 40%, has released a scoping study for Rossing South. Preliminary estimates put production at 15Mtpa at a grade of 487ppm U3O8 (vs. 350ppm reserve grade at Rossing), with recovery of 92% for annual production of 14.8Mlbs pa (double Rio’s Rossing mine – 7.7Mlbs U3O8 pa in 1H09).

Capex is estimated at US$704m based on a tank leach plant. As part of the ongoing feasibility study, Extract will now consider other optimisation routes, including potential for a heap leach component.

These figures are outstanding, with the key new information being the extremely high head-grade (487ppm vs. 350ppm at Rossing), and the resultant low cash cost (50% margin even at current low uranium prices). The only remaining unknowns are life-of-mine and the uranium price.

With 267Mlbs already identified, we think the company should reach 300Mlbs by year end, and exceed 400Mlbs within 1-2 years thereafter. At the above mining rates a 300Mlb reserve would give a 20-year mine life, with production rates well in excess of neighbouring Rossing.

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http://www.kalahari-minerals.com/News/Analyst_Research/Rossing_South_Scoping_Study/News.aspx?id=102