el toro

SUMMARY &HIGHLIGHTS
CORPORATE
• Investors in uranium stocks re-enter the market, particularly where developable
resources exist in politically favourable regions.
• Uranium spot price at US$65 per lb in April, however the long term contract price
remains buoyant at US$90 per lb.
• Toro investor relations briefings held with overseas investors and shareholders.
• Cash and net receivables of $15.7 million.
• The merging of Nova Energy and Toro Energy accounts were completed.
EXPLORATION - AUSTRALIA
• Additional drilling program at Warrior (SA) complete – Part 9B Access Agreement
being progressed for access to southern channel.
• Labyrinth (SA) and Grass Patch (WA) drill results show indications of uranium.
• Review of potential drill targets at Coober Pedy IOCG project (SA).
• Commenced review of exploration priorities.
EXPLORATION - AFRICA
• Namibian alpha cup surveys confirm potential palaeochannel targets, with drill
program commencing second quarter.
• Access track upgrade to the Domou project area of Guinea underway.
• Extension received from the Moroccan Government over the Haute Molouya
exploration area.
PROJECT DEVELOPMENT
• Napperby drill results continue to provide significant grade intersections (up to
0.2%) and increased confidence in the integrity and cohesiveness of mineralisation.
• Data integration for Napperby resource increase underway – planned for late second
quarter.
• Lake Way / Centipede (WA) pre-feasibility study progressing – results expected late
May.
BUSINESS DEVELOPMENT
• Review work continued on existing and potential projects.
3
REVIEW OF OPERATIONS
CORPORATE
With the funds withdrawal from equity markets, and the reduction in interest in uranium stocks in
particular, most uranium exploration businesses reduced dramatically in market value, with Toro
being no exception. The impact on ASX listed uranium stocks has been greater than those of other
countries.
However investors, particularly in North America and Europe, have an increasing understanding
that the nuclear power expansion globally provides strong incentive for investment in new uranium
mines. During the quarter the United Kingdom and Canada joined other countries in committing to
expand and renew their nuclear power generation facilities.
At the same time, uranium production from existing, expanding and new mines is continuing to
under-perform optimistic forecasts. Global 2007 uranium production (reported during the quarter),
was less than 2006 production. While the short term spot price appears to be moving in a range of
US$65 to $90 per lb U3O8, the long term price, which depicts the level at which new term
contracts are being set, has remained buoyant at US$90 to 95 per lb for over 12 months. Term
contracts are being reported using a hybrid pricing, with a fixed component (related to the long
term price) and a spot price component, with floors on the spot component of between US$40 to
$60 per lb.
Consequently investors are now re-entering the equity market in uranium stocks, in particular
where companies have developable resources in politically favourable regions. Toro Energy
provided investor and shareholder briefings in the USA, Canada, London and Europe, with
particular interest being expressed in the Company’s Napperby Project in the NT.
Toro’s 46% shareholder Oxiana Ltd announced a merger with Zinifex Ltd. Oxiana continues to
support its interest in Toro Energy.
Toro continues to provide information to the Western Australian Office of State Revenue (WAOSR)
in regard to its stamp duty liability on the Nova transaction. Our professional advisors assisting
Toro have not recommended any change in the stamp duty provision.
At the end of quarter, the Company held cash and net receivables of $15.7 million. The final
merging of the Nova Energy and Toro Energy accounts and financials were completed early in the quater.