Hidden Bay Project

Located in northeast Saskatchewan, the Hidden Bay property hosts the sixth largest undeveloped uranium resource in the Athabasca Basin. The recent National Instrument 43-101 ("N.I. 43-101") compliant Preliminary Assessment Technical Report ("PA"), prepared by SRK Consulting (Canada) Inc. ("SRK"), found the economics of mining the Horseshoe and Raven deposits to be "very robust." A base case scenario of $60 (US) per pound of U₃O₈ would yield an estimated C$246 million in earnings before interest and taxes.

The proximity of Horseshoe and Raven to milling facilities operated by Cameco Corporation ("Cameco") and AREVA Resources Canada Inc. may significantly reduce the capital requirements of the project through potential toll milling agreements. The principal hydroelectric transmission lines that service both of these facilities also pass 3 kilometres to the north of the deposits. The Raven pit may have further cost-savings potential as a regional tailings facility. The PA addresses these potential benefits in addition to numerous other opportunities for the improvement of economics at Hidden Bay.

Uranium Deposits

Resources at Horseshoe and Raven have been estimated in compliance with N.I. 43-101 standards. The deposits contain in excess of 35 million pounds U₃O₈ Indicated Mineral Resources and 2.7 million pounds U₃O₈ Inferred Mineral Resources at a cut-off of 0.05% U₃O₈.

The following table shows the breakdown of the contribution of the Horseshoe and Raven deposits to the total Indicated Mineral Resources at a 0.05% U₃O₈ cut-off.

Deposit	Tonnes	Grade U3O8 (%)	Total U3O8 (lbs)
Horseshoe	5,119,700	0.203	22,895,000
Raven	5,173,900	0.107	12,149,000
TOTAL	10,293,600	0.155	35,044,000

The following table shows the breakdown of the contribution of the Horseshoe and Raven deposits to the total Inferred Mineral Resources at a 0.05% U₃O₈ cut-off.

Deposit	Tonnes	Grade U3O8 (%)	Total U3O8 (lbs)
Horseshoe	287,000	0.166	1,049,000
Raven	822,200	0.092	1,666,000
TOTAL	1,109,200	0.111	2,715,000

Resources at West Bear have been estimated in compliance with N.I. 43-101 standards. The following table shows the contribution of the West Bear Deposit to UEX's Probable Mineral Reserves at a 0.18% U₃O₈ cut-off.

Deposit	Tonnes	Grade U3O8 (%)	Total U3O8 (lbs)
West Bear	72,374	0.94	1,492,261

Economics

The recent N.I. 43-101 compliant Preliminary Assessment Technical Report ("PA") prepared by SRK found the economics of mining the Horseshoe and Raven deposits to be "very robust."

(Please refer to the "Preliminary Assessment Technical Report on the Horseshoe and Raven Deposits" dated effective February 15, 2011 available online under UEX's profile at www.sedar.com.)

The PA recommends that the project be advanced to a preliminary feasibility level, and that this next phase of study also include UEX's West Bear Deposit.

The PA was conducted utilizing cut-off grades calculated on the basis of $60 (US) per pound of U₃O₈ in the mine optimization plan under which 16.6 million pounds of U₃O₈ would be extracted over a seven-year mine life. Uranium price sensitivity for this base case scenario is shown below.

Pre-Tax (Base Case)

Price U3O8 (per lb)	EBIT (C$ millions)	NPV5% (C$ millions)	IRR (%)
$60 (US)	246	163	42
$70 (US)	394	267	55
$80 (US)	542	371	66

Future Exploration

UEX is focused on advancing the deposits at Horseshoe and Raven through pre-feasibility and ultimately to feasibility level to assess the potential economics and viability of mining the deposits. The Hidden Bay Project has numerous opportunities for the improvement of economics, including:

• Expansion of mineable tonnes due to an increase in U₃O₈ price or a reduction in operating costs resulting in a lower cut-off grade and the conversion of a higher proportion of the existing resource base to reserves;
• Expansion of mineable tonnes through discovery of additional resources and potential inclusion of Raven underground mineralization in the mine plan;
• Potential use of the Raven pit as a regional tailings facility and potential use of tailings as underground backfill thereby further increasing regional tailings capacity; and
• Inclusion of the West Bear Deposit in the overall project mine plan and economics.

Historical Timeline

The Hidden Bay property has a long history dating back to the early days of exploration in the eastern Athabasca Basin in the 1960s.

• 2011: Exploration drilling and project development continue at Hidden Bay
• 2011: SRK completes Preliminary Assessment Technical Report demonstrating "very robust" economics for mining Horseshoe and Raven
• 2010: Probable Mineral Reserve at West Bear estimated at nearly 1.5 million pounds U₃O₈ grading 0.94% U₃O₈ at a 0.18% U₃O₈ cut-off.
• 2009: Mineral Resource Estimate released for Horseshoe and Raven
• 2006-2008: Drill programs at Horseshoe and Raven expand historical data and form the basis for subsequent N.I. 43-101 compliant resource estimates
• 2004-2007: Drill programs further explore West Bear
• 2002: UEX Corporation acquires Hidden Bay property from Cameco upon UEX's formation
• 1977: Deposit at West Bear discovered by Gulf Minerals Canada Ltd.
• 1970s: Deposits at Horseshoe and Raven discovered by Gulf Minerals Canada Ltd.