Annual report, page-5

From page 2 of WUC's annual report:

"In the estimation of management, Ablation mining allows the cost of production of uranium to be reduced by 33-44%."

This assertion is backed by questionable supporting statements:

"Mining, crushing, and separation of uranium and vanadium, used most effectively, occurs underground (inside the mine). Under this approach the costs of moving material to the surface are less as 85%-90% of the mined material remains underground and is never brought outside the mine.

Less radiometric exposure throughout the process due to reduced waste rock on the surface and after the milling process less tailings. Overall surface waste material is reduced and the time duration of material handling is reduced."

Lower costs for transportation of post-ablated material from the mine site to the mill site because 85-90% of the mined material would not be taken to the mill."

WUC admits that due to the CDPHE's requirement for a milling license, ablation may be moved from the underground Sunday Mine Complex to the proposed Pinon Ridge Mill, thus eliminating any cost savings from reduced material handling and transportation.

The annual report goes on:

"Once the ablated material reaches the mill, the acid consumption at the mill and power is much less due to the lower quantity but more concentrated material moving through the milling process."

If ablation occurs at the mill instead of in the mine, it is unclear if cost savings from reduced consumption of acid and power would exceed the cost of ablation. It's possible, but WUC has yet to disclose any economic analysis of ablation versus conventional milling.

WUC has put forward the statement that ablation reduces the cost of production by 33-44% without disclosing the assumptions and methodology used to reach this conclusion. More transparency would be appreciated, IMO.