from the ceo

At the peak of the uranium bull market in April 2007, I think there were over 130

ASX-listed uranium explorers. They are our competitors, but it will be interesting

to see what happens to a lot of them as their cash reserves dwindle. I think some

have already run low on cash. We are one of the few, genuine emerging uranium

producers listed on ASX and we have a substantial cash reserve.

More importantly, Alliance is differentiated from its peers by the Four Mile

project, which is emerging as a world class, high grade uranium deposit and our

JV partner Quasar is affiliated with Heathgate, the owner and operator of the

adjacent Beverley Uranium Mine. At Four Mile we plan a staged development

with ISR mining and we expect to be producing 1 million pounds per annum of

U3O8 at start up in late 2009 with production ramp-up to follow. We have the

tremendous advantage of having access to the existing infrastructure at Beverley to

process the mining solution from Four Mile. That, along with the staged

development, means we will minimise our capital outlay and maximise the cash

flow from the project.



The development of the Four Mile project will catapult Alliance from the pool of

uranium explorers into a top ten global uranium producer. That will create

tremendous value for Alliance shareholders because, once we’re in production, we

can be rated by the market on our cash flow generation rather than as an explorer.

We expect to see a large re-rating at that point underpinned by the quality of the Four Mile project.