Ann: Sale Of The Four Mile Uranium Project, page-135

hi metal.

there is confusion regarding itochu. you need to contact alliance resources if you want clarification.

i don't think itochu would be interested in owning a percentage of ace craton explorer that owns a percentage of four mile but if it was given to them then i guess they maybe interested, who wouldn't. from the alliance perspective i don't think alliance would be offering a percentage of ace craton explorer to anyone for nothing or next to nothing.

a fair price for four mile is interesting but it should be sold from a long term perspective valuation. uranium stocks valuations are all over the place atm and are quite volatile. e.g. cameco's market cap has increased by $400 million in the last 48 hours and it could get even more volatile over the next few months.

the current ags share price is not a good guide. why should toro or peninsula have higher valuations than alliance. last night usec inc (nyse) went up by over 20% and these guys are on the verge of bankruptcy. alliance has an interest in four mile, it should command a premium.

below are the results just out for ur-energy (nyse) that has a market cap of US$150 million and ur-energy has had a market cap of US$230 million as recently as march and now has been given buy ratings that would give it a market cap of US$290 million. you can see what i mean.

look at the numbers below and compare it to our 25% interest in four mile. ags is a lot better than urg.

Operational Highlights for Lost Creek
Ur-Energy (NYSE)

	Column 1	Column 2	Column 3	Column 4	Column 5
0		Units	Quarter	YTD
1			2014 Q1	2014 Q2	2014
2
3	U3O8 Captured	('000 lbs)	198.6	116.7	315.3
4	U3O8 Dried & Drummed	('000 lbs)	171.2	133.7	304.9
5	U3O8 Sold	('000 lbs)	110.0	207.8	317.8
6
7	Average Flow Rate	(gpm)	1,103	803	952
8	U3O8 Head Grade	(mg/l)	179	152	165
9	Average U3O8 Daily Production	(lbs/day)	2,206	1,282	1,742