Ann: Response to ASX Price Query , page-2

No point having so much cash and not using it. An excellent reply. GL

As part of its ongoing review of strategic opportunities, the Company is in discussions with various parties in respect of future opportunities. These discussions are incomplete and no agreement has been reached. Further, notwithstanding the incomplete nature of these discussions, the Company is bound by strict confidentiality undertakings. The Company is not aware, and has no reason to believe, that any information regarding these discussions has ceased to be confidential.

2. An announcement cannot be made immediately due to confidentiality undertakings. Further, the Company believes that an announcement at this time would create a false market given the incomplete nature of the discussions. An announcement will be made upon successful completion of any discussions referred to above.

3. Since the Japanese Earthquake & Tsunami on 11 March 2011 and the situation at the Fukushima Nuclear plant that followed, the price of listed uranium companies shares have dropped more than the uranium price. Investors in uranium listed entities may have noted this and have taken an interest in uranium listed entities.