Shea Creek Project

Shea Creek is located in northwest Saskatchewan, just south of the former Cluff Lake mine which produced over 64 million pounds of U₃O₈ during its successful 22 years of operation. Shea Creek hosts the largest undeveloped uranium resource in the Athabasca Basin. High-grade uranium is distributed along a three-kilometre long strike length at the north end of the 33-kilometre long Saskatoon Lake Conductor. The deposits at Shea Creek show three styles of mineralization: unconformity-hosted, basement-hosted and perched. Access is provided year-round by Provincial Highway 955 and by air.

Uranium Deposits

In April 2013, UEX received an updated National Instrument 43-101 independent mineral resource estimate for Shea Creek which incorporates additional drilling results from the 2010, 2011 and 2012 drilling campaigns (see UEX news release dated April 15, 2013). This estimate includes resources from the Kianna, Anne, Colette and 58B deposits based on drilling information up to December 31, 2012, and confirms that Shea Creek remains the largest undeveloped uranium resource in the Athabasca Basin. It also ranks as the third largest uranium resource in the Basin, exceeded in size only by McArthur River and Cigar Lake. Mineralization at Shea Creek is still largely open and has excellent potential to expand as drilling continues.

The following table shows the breakdown of the contribution of each deposit at Shea Creek to the total Indicated mineral resource estimate at a cut-off grade of 0.30% U₃O₈.

The following table shows the breakdown of the contribution of each deposit at Shea Creek to the total Inferred mineral resource estimate at a cut-off grade of 0.30% U₃O₈.

Future Exploration

The spring/summer 2013 exploration program will consist of a geophysical program in the northern Colette and southern Anne areas and a 5,000-metre drilling program south of the Anne Deposit. The program will be focused on the highly prospective Saskatoon Lake Conductor which continues to the south of the Anne Deposit.

Historical Timeline

The Shea Creek property has a long history of exploration which provides a wealth of knowledge and a solid base for exploration and drilling programs that have yielded impressive results to date.

• 2011-2012: Drilling programs continued to identify new mineralization at the Shea Creek Project
• 2010: Shea Creek mineral resource estimate released for the Anne, Kianna and Colette deposits. 58B identified as an emerging new deposit.
• 2008-2009: Drilling programs at the Shea Creek Project
• 2007: UEX earned a 49% interest in the Western Athabasca Projects, including the Shea Creek Project
• 2007: Drilling program at the Shea Creek Project
• 2006: Kianna Deposit and new areas of mineralization identified along the prospective corridor
• 2004-2006: Drilling programs at the Shea Creek Project
• 2004: UEX entered into an agreement to fund $30 million of drilling managed by AREVA to earn a 49% interest in the Western Athabasca Projects
• 1994-2000: Anne and Colette deposits identified along with other mineralized intercepts along the Saskatoon Lake Conductor
• 1991-1992: Ground electromagnetic surveys better outlined conductors and drilling commenced on the Shea Creek property
• 1990: Airborne GEOTEM electromagnetic and magnetic surveys identified the presence of conductive north-northwest trending zones
• 1980-2002: AREVA's nearby Cluff Lake Mine produced over 64 million pounds of U₃O₈
• 1969: A predecessor company of AREVA discovered the Cluff Lake uranium deposits in the western Athabasca Basin, having been led to the area by airborne radiometric anomalies
• 1960s: Initial exploration of the western Athabasca region