Ann: DFS confirms Salamanca as one of the lowest cost producers-BKY.AX, page-3

NEWS RELEASE | 14 July 2016 | AIM/ASX: BKY Study confirms the Salamanca project as one of the world’s lowest cost uranium producers.

An independent Study has confirmed the Salamanca project as one of the world’s lowest cost producers capable of generating strong after tax cash flow through the current low point in the uranium price cycle.

A Definitive Feasibility Study has reported that over an initial ten year period the project is capable of producing an average of 4.4 million pounds of uranium per year at a cash cost of US$13.30 per pound and at a total cash cost of US$15.06 per pound which compares with the current spot price of US$26 per pound and term contract price of US$41 per pound.

During this ten year steady state period, based on the most recent UxC forward curve of uranium prices, the project is expected to generate an average annual net profit after tax of US$116 million.