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Re: Investor Alert - Wednesday, September 03, 2008
A Letter to Shareholders from Dorian L. (Dusty) Nicol, President
& CEO
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Dear Shareholder,
I was appointed President and CEO of Tournigan Energy in July 2008.
Having had some time now to review the company's assets, I am writing
this letter to present to you my plan to regain and increase
shareholder value.
As our name states, our primary focus is energy. Our most significant
properties are located in Slovakia, a member of the European Union and
a country which has made a long-term commitment to nuclear energy. Our
most advanced property is Kuriskova, a large, high-grade uranium
deposit on which we recently completed a resource recalculation,
resulting in a significant upgrade to the resource. Our other
significant uranium properties in Slovakia include Novoveska Huta,
which was the subject of a great deal of historical exploration work
and on which we are conducting a resource recalculation, and a large
area of prospective exploration ground on which our reconnaissance work
(including airborne radiometric surveys) has demonstrated tremendous
potential for discovering additional uranium mineralization.
Currently we are drilling with two rigs at Kuriskova. This drilling is
expected to further upgrade the resource, moving more pounds of uranium
from the inferred to the measured and indicated categories, as well as
to add to the resource both along strike and at depth. We continue our
baseline environmental sampling and geotechnical data collection on the
property as well as continuing the dialogue with communities and
government at all levels in Slovakia about the project and its
potential social, environmental and economic impacts. We are
evaluating options that will optimize value to Tournigan shareholders
as Kuriskova heads toward feasibility and an expected production
decision.
At Novoveska Huta, we have one rig drilling at present and plan to add
a second shortly. Drilling there is so far confirming the results of
historic drilling; recent drilling also appears to have extended the
strike length of mineralization and has intersected higher grade
mineralization than reported in the historic resource. We hope that
continued drilling will add to the deposit's size as well as increase
its grade. Our objective is to complete a resource recalculation there
near the end of 2008 or early in 2009 and advance Novoveska Huta so
that it is also ready for a feasibility study and expected production
decision.
On our Slovakian exploration properties, we are continuing to follow up
on the anomalies generated by our airborne radiometric survey. Work to
date has identified 25 individual targets worthy of follow up. We will
be prioritizing these targets and aggressively advancing exploration on
them.
In addition to our Slovakian uranium assets, we have several
early-stage uranium exploration properties in the western United
States. These are lower priority to us and will not be the focus of a
significant amount of activity by Tournigan. We are evaluating options
for selling or joint venturing these in a way that maintains some
participation for our shareholders in any long-term potential upside.
In addition to its uranium assets, Tournigan Energy has two significant
gold assets: Curraghinalt in Northern Ireland and Kremnica in Slovakia.
Curraghinalt is a high-grade vein deposit with significant potential
to expand both laterally and at depth. Kremnica, which has produced
over 1.7 million ounces of gold since medieval times, has a defined
resource near historic workings. However, we feel that the real
potential at Kremnica lies within the extensive mineralized area in the
southern part of the exploration license, where relatively little
exploration has been conducted to date.
As most of you know, Tournigan gave serious consideration recently to
splitting its gold assets into a separate company by means of a
so-called "butterfly split". Market conditions since then have not
been favorable for this and these plans have been shelved for the
present. We are evaluating options for realizing value for these gold
assets.
I accepted this job because I felt that Tournigan Energy has a
world-class combination of assets that represented an ideal springboard
for realizing growth. During my first two months, we have made major
reductions in head office staff and costs and our resulting scaled back
management team has the skills and experience that we need. We have
focused our efforts on those assets which have the potential to add
real shareholder value and will continue to focus our efforts in these
directions. While we will always be aggressive in following
opportunities as we identify them, we will not allow ourselves to be
distracted from our objective: to become a premier mid-tier explorer,
developer and producer of uranium. Our strategy will be to advance
Tournigan projects through exploration and development; where
appropriate, we will bring in senior joint venture partners to provide
capital and share the risk in construction and operation. Initially
our focus will remain in Slovakia where we already have world-class
uranium assets, but we will expand into other areas as we identify
opportunities that make commercial sense and fit into our strategy and
objective.
The next few years promise to very exciting for Tournigan Energy. I
thank you all for your continued support and I certainly welcome any of
your questions. If you have questions, please contact Knox Henderson,
our Manager of Investor Relations, or email info@tournigan.com.
Sincerely,
"Dusty Nicol"
Dorian L. (Dusty) Nicol
President and Chief Executive Officer
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Copyright (c) 2008 TOURNIGAN ENERGY LTD. (TSXV-TVC) All rights
reserved. For more information visit our website at
http://www.tournigan.com/ or send mailto:info@tournigan.com
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