Presentation on June the 18th 2009 Mercure Hotel Dusseldorf...

Presentation on June the 18th 2009 Mercure Hotel Dusseldorf City

The following details express my personal impression, and are not intended to be a buy or sell recommendation.


Mr. Woolford, WME Chairman and Dipl. Kfm Robert G. Loch, representation for WME in Germany, welcomed us at the Mercure Hotel Dusseldorf City.

Each visitor received the actual Fat Prophets Report.
Mr. Wollford told us that he holds 3.5 million shares.
The Boardmembers of WME own a total of 7% of the outstanding shares.

The management receives 40-60.000 AUD each as a salary per year.
John A. Young,CEO of the company is the only one to earn more.
The total administrative costs amount to around 1 million AUD a year.

The motivation of the management lies primarily in the development of the shares, mainly because they are paid with options as is usual in the exploration business.

I think this sounds fair and should be in the interest of shareholders.

Mr. Woolford explained that for the first drilling phase he expects costs roundabout 3 million AUD.
The Namibian authorities welcome the current investments because the local people benefit from these.
For the future it is planned to arrange a roadshow through Germany once a year, due to the fact that about 30 % of the total shares are based in Germany.

Mr. Loch is responsible for public relations in Germany.
In the future, shareholders can expect a regular news flow.
There will be press releases about every 4 weeks, depending on the drilling progress and evaluation of interim results.
Reports about every 3 months.

Mr Woolford expects the plaacing of new shares with Polo Resources to be affirmed at the AGM.

After this placing WME can dispose over 11 million AUD cash.

Senior geologist Neil Biddle(BTV)holds 3 million shares personally, while BTV hold another 3 million.
He is a geologist for 35 years and has a reputation for a successful working career.
John Young, CEO of WME, has been a geologist for 25 years and has the necessary special understanding for exploration companies trying to develop their resources.

Mr Woolford together with Mr.Young will be in conversation with different brokers and some large scale investors from England next week.
Important to mention: All those investors have to buy on the open market, if they want to engage.

This can be a huge pricedriver.

Mr. Wollford thinks that the 0.35 AUD level might be reached in the shortterm.
The entire background settlement falls in the responsibility of Mr.David Semmens, who is particularly skilled in commercial law.

The substitution of the entire managment advanced the company to a complete differnt one, who seems dedicated to proceed quickly with the development of WME.
I think we could already see the first signs of this the last weeks.

Concerning the Research Report of Fat Prophets:
http://www.wametals.com.au/investors/research_pdfs/090610_fat_prophets.pdf

Woolford said that this is not a rag, but the author has a very good reputation in Australia, as well as excellent contacts, especially in the uranium sector.

Woolford then talked about the neighboring Extract, describing their territory as beeing unique in the world.
He said right now they just need to do some deeper drilling to increase their resources.
Dattels has a 10 % stake in this Company, even buying a lot of his shares at the 3,50 AUD level
They are now at 7.20 AUD.

He pointed out that WMEs claim is in the direct neighborhood of Areva.
As you may know, Dattels sold the Trekoppje-Uramin project for 2.7 billion U.S. dollars to Areva in 2007, ( a 130 Mlbs with 130 ppm-meaning he received a stunning 17 US-Dollars/lbs.

Areva is building a 260 mio AUD seawater desalination plant just a few miles away from Marenica.
This is expected to be finished in about 9-12 months.
An important fact is that Areva will only use this plant to 40 % capacity, so WME is welcome to use the remaining capacity.

SRK The company, which has been mandated by WME, is responsible for researching, consulting, analysis of drilling, persecution of uranium veins and development of the project.
These works will be supported by the Cardiff University.

Their assignment has already paid off, as the progress of the recent weeks has already shown.

Another highlight, i were told, was that SRK recently found an additional, third Alaskite Dome which had not been discovered during the previous radiometric flight surveys.
The reason for this, is that it is hidden under a layer of coal that absorbed the radiation measuring.

And this 3rd Dome is located just about 12 miles away from Arevas Trekoppje project.
The specialists from SRK now assume Arevas uranium was flushed out from this dome, meaning that the main uranium deposit is located inside the dome !!!
Just this sole information was worth the visit !!!

Mr Woolford repeated several times that he doesnt favour a spike in the shareprice, but prefers a long and steady climb upwards.

He said that the first time he stepped into the company he felt like a kid in a candy shop.
He said, we only need to drill.

SRK sees good chances of reaching a proved 100 Mlbs resource till november.
These 100 Mlbs only refer to the Paleo-Channels.
The 3 Domes with primary uranium are not included in this figure.

SRK believes that the recovery will be at least 80%.
By December, the scoping study should be completed.
A year later, the BFS will be finished and by the end of 2011 Marenica could already produce, and therefore generate a cash flow.

The renewal of the license of Marenica to another 2 ½ years is considered safe and will be accomplished till late july.

This was signaled by the Namibian autorities to Mr. Woolford.

The size stays the same.

WME will continue to hold 80% of the area, 20% must remain in the hands of Namibians. This is common law in Namibia.

The Namibian government is also very appreciative that Mr. Nikolaenko has left the company and WME is in the process of founding a local office at Marenica.
These administrative buildings will be finished in 2 weeks.

Nikolaenko continues to be a shareholder.

Mr. Woolford said that the WME project is still in the beginning, and will grow over time.

When I asked how he plans to defend against a hostile takeover, he said that a takeover or a sale of the project must be approved by shareholders under australian law.

Woolford stated that he himself is not willing to sell any shares for less than 3 AUD.

He seemed very convinced.

He said he wakes up with Marenica in the morning and in the evening he goes to bed with Marenica.

Mr Woolford likes Namibia.
Its like Bavaria (german region-Oktoberfest ;-) ) with Palms, he said.
He pointed out the good infrastructure, and praised the good organization and cleanliness, which is a heritage from the german colonial time.

When asked what further procedures regarding placements and dilution could be expected, Woolford said that he wanted to conduct another placement of 25 million AUD when WME has reached the 0,50 AUD area.
In this placement, all shareholders will receive a 10-15% discount to the share price.
Non-subscribed packages will go to the big investors.

We calculated that the existing 330 million shares,together with the 83 million new shares from Polo, and the 20 million options for the Board and the 41.5 million options for Polo Resources at 0.25 AUD we reach about 475 million shares.
After the next placement ( the 25 mio AUD) there will probably be another 60 Mio shares added leading to a total of 535 Mio shares.

The exact price per lbs for a sale cannot be defined today.

6-8 USD could be a possible pricerange, depending on the uranium spot price and the grades.

100 million pounds x 8 = 800,000,000 USD.
With 535 million outstanding shares that would lead to 1.5 USD/share.
Or 1.85 AUD x 80 % (= WMEs holding) means 1.47 AUD/share

And of course there is the possibility for a lot of upside potential if it comes to the amount of uranium beeing discovered.
This story remains exciting.

Mikro