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At the present exchange rate and share price, around 96 million shares would be issued to STB on execution of the Definitive Agreement and $1m in additional hard cash to open up the three year Option Period. 50% of the shares issued as consideration for the Definitive Agreement will be in escrow for six months. Mildly dilutive: Yes. Devastating: No.

Execution of the Definitive Agreement opens a luxurious three year Option Period and leaves $4m+ for a drilling/radiometric survey campaign to prove a JORC-compliant resource on Hansen. Very cost effective confirmatory and extensional drilling and down-hole radiometric surveys will be involved, just as BLR utilised in the incredibly productive first 8 months of 2007.

Look at the Quarterlies for the periods ended March 2007 and June 2007: Exploration & Evaluation outlays of $295,000 for the March Qtr and $827,000 for the June Qtr, capped off with the announcement on 13 August 07 of the initial JORC-compliant resource for Taylor Ranch of 42 million pounds of U308.

I don't think people realise how cost-effectively and rapidly Hansen's target 30 million pounds of U308 at a very decent estimated 800 parts per million can be proven up given that the data sets from 1,000 historic drill holes on the Hansen deposit are already there.

Hansen is what makes the combined resource economic, and BLR envisages adding to this prime resource via a single proposed decline Taylor Ranch's JORC-compliant 60 million pounds at 250 parts per million or 27.7 million pounds at 750 million parts per million as the contracted/spot price of U308 rises from what Bank of America/Merrill Lynch analysts are calling the bottom of the market at the current $40/lb U308.

With an economic resource, you can greatly mitigate risk with joint venture partners and secure financing. To my mind, the Definitive Agreement and ensuing Option Period are worth pursuing.

BLR's current notional value in exchange for cash on hand and the Hansen tenements alone (as valued in the LOI) is $.039968. Add in Taylor Ranch and you can understand why there was such a ratchet at .042 for the longest time until GFC 2.0

I still hold in confident expectation of a cost-effectively delivered JORC-compliant Hansen within a year and all the strategic opportunities that achievement of that milestone will yield.