agreement with north river over uis licences

AGREEMENT WITH NORTH RIVER RESOURCES OVER UIS LICENCES

September 21, 2010: The Directors of Extract Resources Ltd (Extract) are pleased to announce the signing of an agreement (the Agreement) with North River Resource Plc (North River) relating to their respective wholly-owned subsidiaries, Extract Resources (Namibia) (Proprietary) Ltd (Extract Namibia), NRR Energy Minerals Limited ("NRR Energy") and West Africa Gold Exploration (Proprietary) Limited (WAGE).

Under the Agreement, subject to the satisfaction of certain conditions (as set out below), NRR Energy will subscribe US$800,000 (the Subscription Funds), so that each of Extract and NRR Energy will hold a 50% interest in Extract Namibia. The principal assets of Extract Namibia are EPL 3327 and EPL 3328, pursuant to which Extract Namibia has the rights to explore for nuclear fuel minerals. Located west and north respectively of the historic tin mining centre of Uis in western Namibia, previous exploration activity, undertaken by Extract, has shown that these licences have the potential to host secondary uranium deposits associated with palaeodrainages of the Orawab and Ugab ephemeral river systems. The Subscription Funds will be used by Extract Namibia to expedite further uranium exploration on these licences.

The Agreement also allows for the formation of a 50/50 unincorporated joint venture between WAGE and Extract in relation to the nuclear fuel rights (if granted) in respect of EPL 3139. WAGE is the sole legal holder of EPL 3139 in Namibia and has applied for the rights to explore for nuclear fuel minerals in respect of this licence. The nuclear fuel rights for EPL 3139 have yet to be granted. Subject to the terms of the Agreement, WAGE and Extract have agreed that if WAGE is granted the nuclear fuel rights for EPL 3139, and subject to obtaining any necessary approvals and consents required to the transaction under the Namibian Minerals Act, WAGE and Extract will form an unincorporated 50/50 joint venture in respect of these nuclear fuel rights ("Joint Venture"). Once the Joint Venture is formed, WAGE is obligated to fund the first US$500,000 exploration of nuclear fuel rights in relation to EPL 3139 activities. EPL 3139 is located within 30km of Extracts Husab Uranium Project.

Extracts purpose for entering into this Agreement is to enable Extract to focus on the development of its world class Husab Uranium Project in Namibia, which contains the Rssing South Deposit. The Husab Project is held by a second Extract subsidiary, Swakop Uranium (Proprietary) Limited, and does not form part of the Agreement.

The Agreement further stipulates that Mr Luke Bryan and Mr David Steinepreis from North River will be appointed directors of Extract Namibia, joining Martin Spivey and Inge Zaamwani-Kamwi from Extract, who already sit on the board of Extract Namibia. It is intended that following the necessary approvals, Extract Namibia will be re-named Brandberg Energy (Proprietary) Ltd.

NRR Energy will be the manager of Extract Namibia and, if formed, the Joint Venture, will conduct exploration for nuclear fuel minerals activities in accordance with programs and budgets as approved by representatives of the shareholders of Extract Namibia.

In the event of a discovery on either EPL 3327 or EPL 3328, Extract has the right to increase its holding in Extract Namibia to 65% by acquiring shares from NRR Energy at a 10% discount to the then prevailing market value. In addition, in the event of a discovery on EPL 3139, Extract has the right to increase its holding in the Joint Venture to 65% at a 10% discount to the then prevailing market value. The prevailing market value of Extract Namibia and of the Joint Venture is to be determined by an independent expert applying the valuation methods and procedures established by the Australasian Institute of Mining and Metallurgy.

The subscription by NRR Energy for shares in Extract Namibia is subject, inter alia, to the satisfaction of certain matters, being:

a)NRR Energy being satisfied with the results of its legal due diligence on Extract Namibia;

b)receipt of all necessary approvals and consents required under the laws of the Republic of Namibia (if any); and

c)NRR Energy, Extract and Extract Namibia entering into an agreement with a broad-based black economic empowerment entity in respect of its involvement in Extract Namibia.

The Agreement also contains certain terms, clauses, agreements, representations and warranties from all parties that are normal for a transaction of this nature.

These conditions are to be satisfied within 180 days of signing the Agreement (or such other date as the parties agree).

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