The Butler Lake Project consists of seven claims totalling 19,648 hectares, located along the northern periphery of the Athabasca Basin near the town of Stony Rapids, Saskatchewan, approximately 750 kilometres north of Saskatoon, Saskatchewan. The project area is accessible year-round by provincial roads and trails, and by aircraft.

UEX staked the claims in late 2004 following its discovery of unconformity-type uranium mineralization at the Black Lake Uranium Project in hole BL-18. New mineral exploration technologies such as deep-penetrating airborne electromagnetic and airborne gravity surveys have been used at the Butler Lake Project. These improved exploration methods allow modern explorers a "second look" at areas where historical geophysical work rarely penetrated deep enough to delineate geophysical conductors in the basement rocks below the unconformity. Such conductors are the focus of uranium exploration efforts in the Athabasca Basin.

Mineral exploration in the Butler Lake Project area has been intermittently active since the 1950's. The earliest recorded work was in the northeastern regions of the project area where surface trenching was completed by prospectors in 1956.

Famok Limited, an predecessor exploration company of AREVA, conducted geological and geophysical surveys in the late 1960's on their properties along the northern rim of the Athabasca basin. A radioactive boulder train located in 1967 from the result of a helicopter-borne radiometric survey southeast of the vilage of Fond du Lac, approximately 60 kilometres northwest of the Butler Lake project area, led to Famok's discovery of the Fond du Lac Uranium Deposit. The Fond du Lac Deposit uranium mineralization is present as a high-grade central core perched above the unconformity with a surrounding low-grade aureole. The uranium resource was estimated by Eldorado in 1982 at approximately 200,000 tonnes grading 0.25% U3O8, containing local higher grade areas of up to 5% U3O8 [Note: This is not a National Instrument 43-101 compliant resource estimate and is presented for information purposes only].

During that exploration era, Famok completed airborne and ground radiometric surveys, geological mapping, and drilled a total of 29 holes between 1968 and 1970 within the Butler Lake Project area. Although several fault offsets were identified in the unconformity, no anomalous concentrations of uranium were identified and Famok allowed the permit to lapse.

In 1976 Eldorado Nuclear Limited ("Eldorado") and Saskatchewan Mining Development Corporation ("SMDC") began work on SMDC Permit No. 2 (later MPP 1064). SMDC and Eldorado (later merged to form Cameco Corporation) initially conducted an exploration program consisting of geophysical, geochemical and geological mapping surveys. The geophysical surveys consisted of magnetometer, VLF-EM, apparent resistivity and IP survey. The geochemical surveys included reconnaissance soil, lake sediment, emanometer and lake water surveys as well as geological surveys consisting of regional and detailed mapping, including boulder distribution surveys. Results of the initial programs indicated that certain grids showed promising characteristics which warranted further work. One of these prospective areas included the Gibbons Creek grid, which lies within the current Butler Lake Project.

Between 1977 and 1980, 35 holes were drilled on the Gibbons Creek grid. The most significant result from this drilling was 0.15% U3O8 over 0.13 metres at the unconformity in drill hole GC-15. Eldorado reported areas of core loss within the hole, which correlated to elevated uranium and/or elevated radioactivity levels.

In 1978, Eldorado and SMDC completed an airborne INPUT and magnetic survey over the project area. In 1980, a regional geochemical survey and an airborne spectrometer survey were completed over the area. However, due to budget constraints and the greater impact of discoveries made further south such as Cigar Lake, the various claims and permits were allowed to lapse.

Pioneer Metals Corporation ("Pioneer") staked several claims in 1996 to investigate for ultramafic nickel-copper-cobalt mineralization, similar to the nickel showings found at Axis Lake and Currie Lake, northeast of the Athabasca Basin sandstone margin. In the winter of 1997, Pioneer carried out a ground geophysical UTEM survey on five small claims within the current Butler Lake Project area. A geophysical response near the Riou Lake West grid gave indications of a conductive lithology to the east of the survey area. Follow-up investigations began in 1998 and Pioneer eventually focused its exploration efforts on claims located further south, where it found a system of graphitic conductors in 1999. By 2002, Pioneer had allowed its claims located north of Riou Lake to lapse.

As a "first pass" exploration program, UEX commissioned a MEGATEM airborne electromagnetic survey in 2005 and later a Falcon airborne gravity survey. In early 2006, UEX carried out a fixed-loop, floow-up ground geophysical survey and identified a conductor of interest. A helicopter-assisted drilling program was in progress during the 2006 summer/fall exploration season on the Butler Lake Project.