Ann: Quarterly Activities Report for Period Ending 31 Dec 2015, page-2

HIGHLIGHTS 

Sales of 1,698,517lb U3O8 at an average selling price of US$37.90/lb (vs. average spot price of US$36.03/lb) Langer Heinrich Mine - Accounting production 1,258,833lb U3O8 and drummed production 1,263,882lb U3O8, up 16% and 5% respectively vs. last quarter. - Average plant feed grade of 714ppm U3O8. - Overall recovery of 88.5%. - Record low quarterly C1 cash cost of production of US$25.38/lb (vs. guidance of US$25.00/lb to US$27.00/lb). - Record low monthly C1 cash cost achieved during the month of December of US$23.73/lb.

Kayelekera Mine - Newly commissioned Nano-filtration unit provided treated water meeting all discharge licence criteria and World Health Organisation, Malawi, and Australia drinking water guidelines. - Application for renewal of licence to discharge treated water approved by the Technical Committee of the Water Resources Authority and is awaiting Ministerial review.

Cash and cash equivalents at 31 December 2015 of US$136.8M (an increase of US$28.4M from 30 September 2015 and better vs. guidance pro-forma US$122.5M to US$132.5M after adjusting for the additional repurchase of Convertible Bonds due in April 2017 and sales proceeds from the last physical delivery of the quarter)

Repurchased an additional US$17M of the Convertible Bonds due April 2017 for approximately US$15.5M

An additional three Japanese reactors (Takahama 3 & 4 and Ikata 3) were cleared for re-start in the December quarter and are expected to commence operations in early 2016

Company continues to be on track to be cash flow neutral on an ‘all in’ basis at current spot uranium price and foreign exchange rates excluding one-off restructuring costs and capital management or strategic initiatives for FY16 full-year

SAFETY The Company achieved 544 Lost Time Injury (LTI) free days at the Kayelekera Mine (KM) and 13 LTI free days at the Langer Heinrich Mine (LHM) at the end of this quarter. The Company’s 12 month moving average Lost Time Injury Frequency Rate (LTIFR) was 2.10 as compared to 1.39 at the end of the last quarter and 4.14 for the quarter to 31 December 2014. The increase in the LTIFR in this quarter was a result of two lost time injuries at LHM. The lost time injuries were as follows:

A process operator sustained caustic burns when his Tyvek protective suit became torn and or saturated while moving in and out of a caustic tank.

A cleaning contractor slipped and fractured a bone in her foot whilst changing clothes in the change house. QUARTERLY URANIUM SALES Total sales for the quarter was 1,698,517lb U3O8 at an average selling price of US$37.90/lb, generating gross sales revenue of US$64.4M, which was a 75% increase over the previous quarter’s revenue. The TradeTech weekly spot price average for the December quarter was US$36.03/lb.