Next Steps & Development Timeline: Initial environmental...

Next Steps & Development Timeline: Initial environmental clearances have been received; a revised EIS (enlarged resource) will be lodged 2Q11. After further optimisation work aimed at cost reduction and improved recoveries, the DFS could be completed in 4Q11 or 1Q12. BMN‟s strategy is to seek a project development partner to facilitate debt and equity financing. A number of interested parties are currently conducting due diligence. Subject to financing, project commissioning is possible in 2014. Regional Exploration Potential: Only ~50km2 of total 500km2 highly prospective regional ground around Etango has been addressed to date. BMN‟s recent regional exploration, has produced promising initial shallow intercepts at Cheetah (e.g. 10m @ 339ppm, 8m @240ppm), along strike and to the north of Etango. Drilling is underway at Hyena, immediately south of Etango. Investment

Comment: The Etango project is undoubtedly world scale, but relatively low grades and relatively high costs (US$42/lb cash costs) make it highly sensitive to the uranium price. Hence recent dramatic share price movements post the Japanese earthquake. At US$60/lb the project looks marginal, but with spot prices soaring above US$70/lb in late 2010, BMN was starting to attract strong investor interest. With efforts to attract a strategic development partner likely to bear fruit in such a positive environment, BMN shares performed strongly, more than doubling from around A$0.34/share in October 2010 to >A$0.80/share in February 2011. The recent dramatic events in Japan resulted in BMN‟s share price falling significantly (as for all junior uranium explorers). However, with improved sentiment, BMN‟s share price has since recovered strongly. BMN‟s 2011 focus will continue to be on opex reduction and increased recovery initiatives to improve project viability, while continuing its hunt for a ?big brother‟ partner seeking security of supply from a large scale project in a stable uranium friendly country such as Namibia. Meanwhile, BMN‟s exploration programs could yield higher grade ore. If the uranium market continues to stabilise, and BMN achieves success in its DFS, exploration, and in particular, its hunt for a strategic development partner, we see potential for share price upside towards the valuation multiples seen in recent uranium M&A activity. After all, buying BMN at current levels is buying a large uranium resource at a level of around ~US$0.50/lb.