1c4ab986c729ad4f51276f.pdf

2015

ANNUAL REPORT

Contents

Chairman's Report 2

Operational Report from the CEO 4

Annual Financial Report 16

Directors' Report 17

Auditor's Independence Declaration 31

Corporate Governance Statement 32

Financial Report

Consolidated Statement of Profit and Loss and Other Comprehensive Income 35

Consolidated Statement of Financial Position 36

Consolidated Statement of Changes in Equity 37

Consolidated Statement of Cash Flows 38

Notes to the Financial Statements 39

Directors' Declaration 62

Independent Auditor's Report to the Members 63

Shareholders' Information 66

Corporate Directory 68

2015 ANNUAL REPORT A-CAP 1

Chairman's Report

This year has been one of the most unpredictable years in the resource sector in recent memory, where not one or two commodities have dropped in value, but almost all have severely declined. After the Fukushima accident in 2011, we saw the uranium price collapse and uranium stock prices fall. It was since then that most of your Company's important work was being undertaken at the Letlhakane Uranium Project. An

incredible amount of technical work has now been completed on the project, which has culminated in the submission to the Government of Botswana of a mining licence application in August 2015.

At a corporate level, the Company completed during the year an underwritten non-renounceable shareholder rights issue, raising

a total of A$4,000,000. This capital raising together with cash and cash equivalents held at 30 June 2014 of A$5,070,514 has allowed your Company to complete its planned project feasibility works within budget and within time constraints. To this end, we are now in a strong position to capitalise on a predicted increasing uranium price going forward as well as completing our trial pits and pilot plant work as part of a Bankable Feasibility Study to be completed in Q1, 2017. Construction is planned to commence in Q1, 2018.

An important catalyst aiding the expected increase in uranium usage is threefold. Firstly we are now seeing that Japan is restarting nuclear reactors after the 2011 accident. Japan alone has an annual usage of twenty million pounds of uranium in its fifty-four existing nuclear reactors.

Secondly, there are sixty-six nuclear reactors under construction worldwide, with 50% being in Asia. Each reactor will use around 400,000 lbs of uranium per year.

A third and important factor influencing future uranium use and pricing is the anticipated Chinese nuclear build offshore.

China has become a world leader in nuclear plant design and construction, and is currently actively engaged in nuclear reactor supply contracts in South Africa, Kenya and the United Kingdom. More will follow.

As the world steadily moves away from fossil fuels for power production, and adopts clean nuclear power as the best alternative, we will see the demand for large uranium deposits with significant upside in production such as Letlhakane become an extremely important component of nuclear builds. A-Cap is becoming well positioned in this important global demand.

During the year, the Board initiated a review of corporate and operational costs, which resulted in a significant reduction in corporate head office costs, including corporate office premises relocation and a reduction in corporate, marketing and support personnel.

Additionally the following changes in Office Holders occurred during the year:

1. Mr Robert Pett resigned as a Director and Chairman of the Company on 11 June 2015;

2. I was elected Chairman of the Company on 11 June 2015;

3. Mr John Fisher-Stamp was appointed as a Director on 18 June 2015;

4. Mr Richard Lockwood resigned as a Director on 19 June 2015

5. Mr Paul Ingram was appointed as Deputy Chairman of the Company on 3 July 2015;

6. Mr Michael Liu was appointed as a Director on 3 July 2015;

7. Mr Denis Rakich resigned as Company Secretary on 3 July 2015; and

8. Mr Nicholas Yeak was appointed as Company Secretary on 3 July 2015

The board appointments of Mr John Fisher-Stamp and Michael Liu will add to the Board's commercial and corporate experience to support the Company's activities in the capital markets, listing on a public exchange and roadshow engagement with the investment community.

The Company's planned activities for the 2016 financial year will focus on the planning, approvals and development of

the Letlhakane Uranium Project. Non-core Company assets comprising coal assets and Duke Royalty Limited investment will be the subject to a board directed review to consider options to release value and monetise these assets through joint venture participation, corporate re-organisation and assets sale.

I wish to thank our team in Botswana for their excellent work in preparing the necessary documentation for our mining lease

submission to the Government of Botswana. This is the culmination of many years of hard work by the team headed by CEO Paul Thomson, and involving some of the leading consultants in the resource business. The Chairman of A-Cap Botswana, Anthony Khama has greatly assisted our work in Botswana by providing sound advice on many matters on our Company's work. It is a real pleasure operating in Botswana and the wonderful stability, integrity and professionalism of the people that we encounter every day is greatly appreciated.

Angang Shen

Chairman

Operational Report from the CEO

Overview

This year A-Cap has again been successful in securing the funding necessary to complete the feasibility work required for a Mining Licence Application for our Letlhakane Uranium Project. This funding has been made available through the financial support of our shareholders. On completion of the feasibility work the Mining Licence application was submitted to the Botswana Department

of Mines in August 2015. This is consistent with the Company's strategy of preparing the project for early development and production so that we can take full advantage of an expected recovery in the uranium market and the forecast increase in the price of uranium.

'We have been successful in securing the funding necessary to complete the feasibility work required for a mining licence application for our Letlhakane Uranium Project'

The current price of uranium has been flat, but A-Cap fully expects the Uranium market to turn. With Japan restarting their nuclear program, commencing with the Sendai No. 1 Reactor, coupled with an additional 66 new nuclear

Figure 1: A-Cap's Tenement portfolio in Botswana

reactors under construction, A-Cap is well placed to have the project ready to take advantage of a forecast supply shortage and a rising uranium price.

The technical study required for our Mining Licence application comprehensively incorporated all of the work completed to date, providing a strong framework for the development of the project, based on shallow open pit mining and heap leach processing to produce up to 3.75 million pounds of U3O8 per annum

over an 18 year plus mine life. The results of the study indicate

encouraging project economics in a rising uranium market and highlight a number of distinct advantages with competitive CAPEX and OPEX cost estimates.

The Environmental and Social Impact Assessment (ESIA) was completed and submitted to the Department of Environmental Affairs (DEA) in May 2015 in line with the Botswana Government requirements.

'Our aim is to have the project ready to take advantage of a uranium price recovery'.

All of the major infrastructure is in place with the project located adjacent to a main highway, railway line, national power grid with water supply already identified and permitted, enabling capital costs to be kept to a minimum.

The deposit is shallow, soft and amenable to inexpensive open pit mining using a mix of conventional and surface miners. Detailed studies have been completed to understand the effect of utilising surface miners on the resource and understand the costs and productivity. Extensive metallurgical test work has demonstrated excellent recoveries from acid leaching and supports a low cost heap leach processing route using solvent extraction to recover uranium.

Figure 2: Location of A-Cap's Uranium and Coal Licences

A drilling programme was completed in September 2014 focussing on shallow high-grade zones earmarked for early mining in the project life. This drilling was designed to test the continuity and mine scale variability of mineralisation in three main project areas: Kraken, Gorgon and Serule West, and to provide data for further resource modelling and mine planning. This drilling yielded excellent results and confirmed the presence and continuity of high grade mineralisation within these areas.

Further metallurgical test work was completed to optimise the process design and provide geotechnical, geochemical and hydrological data for studies on heaps and waste products. Column leach tests of 2 and 4 metres were conducted at ANSTO labs in NSW, providing the basis for the Projects recoveries and processing costs.

The coal resources on our Bolau and Mea coal tenements add an extra dimension to our activities in Botswana. A maiden resource was announced at Bolau of sufficient tonnage to support a thermal power venture. Discussions with third parties are currently underway to decide on the best way to progress these projects.

We are fortunate to have secured some of the best specialists in their fields to conduct the feasibility work. This includes a team with proven expertise and experience in geology, mineralogy, mining, metallurgy, process design, hydrology, environmental, radiation and engineering.

To them and our dedicated operating and administrative team, my sincere thanks for all your efforts during the year.

Letlhakane Uranium Project

Feasibility Programme

The Letlhakane Uranium Project is one of the world's largest undeveloped Uranium Deposits. The Project lies adjacent to Botswana's main North-South infrastructure corridor that includes a sealed all-weather highway, railway line and the national power grid, all of which make significant contributions to keeping the capital cost of future developments low.

In August 2015 A-Cap submitted the Mining Licence application for PL 45/2004 (Letlhakane) to the Botswana Department of Mines. The application was based on the results of a technical study and financial modelling. The technical study was based on shallow open pit mining and heap leach processing to produce up to 3.75 million pounds of uranium per annum over a mine life of 18 years, incorporating the most up to date metallurgical results and process route, optimised mineral resources, mining, capital and operating costs developed by our feasibility specialists in Australia and internationally. The technical study confirms that

the Project has the right mix of a good resource, low capital and operating costs and is well positioned to be taken into early

production, reaping the benefits of projected shortfalls in supply in the uranium market and forecast rising uranium prices.

The outcomes of the technical study were released to the market (refer ASX release 11th September 2015) which highlighted the following:

Positive economics based on forecast uranium average contract price

Initial construction CAPEX of US$351 million Initial working capital of US$40 million

Pre-tax NPV of US$383 million at a discount rate of 8% and IRR of 29%

Operating costs of US$35/lb U3O8 over first 5 years, approximately $40/lb U3O8 over 18 year process life.

Operational Report from the CEO (Continued)

The technical study and financial modelling was completed with the assistance and in collaboration with a world-class team of consultants including Optiro, Cube Consulting, SLR Consulting (South Africa), Kappes Cassiday & Associates, OMC Hydromet and Lycopodium Minerals Pty Ltd. The key parameters for the project are summarised in Table 1.

Project Economics	Pre-tax	Post-tax
NPV	$US	$383M	$240M
IRR	%	29%	24%
Pay-back period from start of production	yrs	3	3

Capital Costs

Construction $US 351M

Working Capital $US 40M

Inputs & Assumptions

Price of Uranium (flat price over LOM)	U3O8 US $/lb	$81
Discount rate	%	8%
Life of mine (LOM)	yrs	18
Project Summary
Average Mining cost	$US /lb	$18
Average Processing Cost	$US /lb	$23
$US /lb	$41

Cash Flows	Pre-tax	Post-tax
Total Revenue	$US	$3,499M
Project Cash flow	$US	$841M	$539M

Table 1: Summary of outcomes of the technical study

The Technical Study results and production targets reflected in this annual report are preliminary in nature as conclusions are drawn partly from indicated mineral resources and partly from inferred mineral resources. The Technical Study is based on lower level technical and economic assessments and is insufficient to support estimation of ore reserves or to provide assurance of an economic development case at this stage, or to provide certainty that the conclusions of the Technical Study will be realised. There is a low level of geological

confidence associated with inferred mineral resources and there is no certainty that further exploration work will result in the determination of indicated mineral resources or that the production target itself will be realised.

The following work programmes were completed during the year which culminated in the completion of the feasibility studies required for the Mining Licence Application:

Metallurgy

Campaign 1 - 2 metre acid leach columns

Campaign 2 - 4 metre acid leach columns integrated with SX and IX recovery Process optimisation following a review of these test results

Heap leach design following an option review

Plant Design

Development of Opex and Capex requirements Plant construction and implementation studies

Geotechnical, geochemical and hydrological study of the heaps and waste products

Resources

LUC resource trials utilising Localised uniform conditioning (LUC) Remodelling of mineralisation

Drill spacing studies Grade control patterns

Mining

Physical testwork on expected lithology mixes to evaluate productivity and mining costs using Wirtgen and Vermeer surface miners with the vendors

Budget quotations were received from three experienced African mining contractors for a bulk waste prestrip, mining of the ore zone with surface miners and haulage by truck to the ROM

Updates of pit optimisations and schedules using latest cost data

The ESIA was submitted to the Department of Environmental Affairs in May 2015. This has been a long process requiring a series of study iterations over the years to coincide with

A-Cap's ever-expanding uranium resource. The Department of Environmental affairs are currently assessing this report. One consultation feedback meeting occurred in June 2015 and final feedback is due in the following months.

Metallurgy & Process Design

The SX/IX combination is novel though each component uses conventional technology and was demonstrated in the ANSTO Campaign 2 program. It was developed to optimise the water and acid balance and minimise acid loss in SX stripping.

At SGS, a 4m acid leach column test of the mixed secondary mudstone ore indicated good recoveries with moderate acid consumption indicating this process was the most effective way of treating this secondary mudstone mineralisation.

This testwork was used to develop engineering design data and process plant designs for acid heap leaching of all ore types excluding the calcrete ore. This data was used to define capital and operating costs for the process plant. The calcrete ore,

which only accounts for 3O8 resource, will be stockpiled for future processing once the main acid heap leach facility is complete.

The acid heap circuit process flow diagram is summarised in Figure 3. The surface miners will produce primary, oxide and secondary mudstone ore feed for the closed screening and secondary crushing circuit which will produce a

The technical study announced to the ASX on the 11th September 2015 focussed on treating 9 million tonnes of mineralisation per year through crushing, agglomerating, stacking and sulphuric acid leaching on one of two permanent leach pads, each with

a capacity of 79 million tonnes. Leached material will be left in place and each lift sealed with a geomembrane liner.

The design capacity of the processing plant is 3.75 million

A detailed programme of acid column leaching, Solvent

pounds per annum of U O

equivalent per year, to allow for

3 8

Extraction (SX) and Ion Exchange (IX) testwork has been

completed over the last 12 months to better define recoveries and process operating costs for the Letlhakane heap leach operation. This programme was carried out at ANSTO in Sydney and SGS in Perth. In addition, SLR Consulting of South Africa, carried out

a detailed engineering study of the heap leap facility including stability tests of the heaps.

At ANSTO, two campaigns of 2m and 4m columns were completed on the main ore types: Gorgon and Kraken primary ore, Serule West primary ore and a mixed oxide ore using the 2 stage acid leaching process which was developed over the

last 2 years. This 2 stage acid leach has been shown to improve leach kinetics and economics. The 4m columns were leached in closed circuit with the SX/IX recovery circuit to demonstrate that the leachate can be processed by SX followed by IX then refining to yield a high purity saleable uranium oxide concentrate product.

peaks in production, with average annual production estimated at 2.4 million pounds. The acid leach project is expected to operate for 18 years based on the current in- pit resources of Oxide, Primary and Secondary mineralisation.

The uranium recoveries vary from 60.5% to 77.7% depending on mineralisation type and were derived by applying discounts of 2% for scale-up from laboratory conditions to commercial field operations plus losses in ripios interstitial liquor of 0.8% and 0.1% for losses in the refinery. The recoveries used per mineralisation type were calculated following the 4m column testing completed at ANSTO and other column tests carried out at SGS labs in Perth.

Comminution tests indicate that these materials are soft and not very abrasive with the average crushing work index (CWi) of

8.82 kWh/t (range 5.9-13.3kWh/t).

Operational Report from the CEO (Continued)

Process costs were calculated by mineralisation type and pit. The major contributor to production is the Primary mineralisation. The summary of the process costs are shown in Table 2. The main operating consumable is determined by the acid consumption.

Cost Centre	Mixed Oxide	Gorgon & Kraken Primary	Serule West Pri- mary	Lower Mudstone (Acid Leach)	Mixed Mudstone Low Acid Leach (65% UM, 35% LM)
	USD/ wet t % Cost	USD/ wet t % Cost	USD/ wet t % Cost	USD/ wet t % Cost	USD/ wet t % Cost

Operating Consumables	3.46	60%	3	57%	4.62	67%	3.1	58%	3.11	57%
Product Transportation	0.08	1%	0.08	2%	0.13	2%	0.05	1%	0.06	1%
Maintenance	0.51	9%	0.51	10%	0.51	7%	0.51	9%	0.51	9%
Power	0.68	12%	0.68	13%	0.68	10%	0.68	13%	0.68	13%
Laboratory	0.05	1%	0.05	1%	0.05	1%	0.05	1%	0.05	1%
Labour -Processing & Maintenance	0.46	8%	0.46	9%	0.46	7%	0.46	9%	0.46	9%
Sub-Total - Processing & Maintenance	5.25	90%	4.79	89%	6.46	92%	4.86	90%	4.89	90%
Labour - Administration	0.22	4%	0.22	4%	0.22	3%	0.22	4%	0.22	4%
General & Administration Cost	0.35	6%	0.35	7%	0.35	5%	0.35	6%	0.35	6%
Sub-Total - General & Administration	0.57	10%	0.57	11%	0.57	8%	0.57	11%	0.57	10%
TOTAL	5.82	100%	5.36	100%	7.02	100%	5.42	100%	5.45	100%
Processing Cost, USD/t U	53,783		49,219		39,618		88,809		64,487
Processing Cost, USD/lb U3O8	20.69		18.93		15.24		34.16		24.81

PRIMARY ORE PRIMARY RIPIOS PRIMARY RIPIOS TO

TERTIARY LEACH

(BARREN HEAP)

BARREN HEAP

Table 2 - Process costs per mineralisation type, inclusive of Labour and Administration costs.

PRIMARY, OXIDE AND LOWER MUDSTONE SECONDARY ORE

Sulfuric Acid

Polymer

Sulfuric Acid

Acid fortified raffinate

ILS

RLS

Raffinate Rinse

PRIMARY ORE PRIMARY LEACH

PRIMARY ORE SECONDARY LEACH

water

PLS POND

ILS POND

RECYCLE LEACH SOLUTION POND

RAFFINATE POND

PLS

Raffinate

Sulfuric Acid

SOLVENT EXTRACTION

Loaded Strip

Extract

Strip

Sodium Carbonate/ Sodium Bicarbonate

Barren Liquor

Sodium Hydroxide

ION EXCHANGE

SODIUM DIURANATE PRECIPITATION

` Wash Water FILTRATION

(S)

Sulfuric Acid

Wash Water

(L)

SODIUM DIURANATE RE-DISSOLUTION

(S)

Sodium Hydroxide Hydrogen Peroxide

Residue to Waste

URANIUM OXIDE CONCENTRATE PRECIPITATION

CENTRIFUGE

DRYER

URANIUM OXIDE

PRODUCT

THICKENING

(L)

Figure 3: Letlhakane Uranium Project Acid Leach Circuit

Mineral Resource & Drilling Programme

Drilling was focussed in areas where initial optimisation runs delineated possible early pits. The results have been successful in increasing the confidence in these areas. A drill optimisation study has also been completed by Optiro. The drill study focussed on the Kraken area where infill drilling had previously been completed. Holes were then excluded to make pre - infill drilling grids. These were completed at 400m spacing and 200m spacing and also 100 x 100m and 50 x 100m. At the 400m and 200m spacing alternate offset grids were also used to evaluate consistency.

The results from the Kraken area concluded that the drilling defines the resource at 200m spacing and only small variations in grade and contained metal occur when the infill drilling is conducted. This gives A-Cap an excellent guide to defining mineralisation on the project as a whole.

An infill drilling programme following up on the major RC and Diamond drilling programme which was completed in June 2014, commenced in October 2014 to further define potential early start pits. This programme was successfully completed in November with results confirming the presence and continuity of high grade uranium mineralisation. These results will now be incorporated into a new resource model.

Best intervals* at 200ppm eU3O8 cut-off include:

3.25m @2386 ppm eU3O8 in hole SERC0364 2.20m @904 ppm eU3O8 in hole SERC0358 2.05m @2124 ppm eU3O8 in hole MOKR2582 2.55m @772 ppm eU3O8 in hole MOKR2584 1.25m @2123 ppm eU3O8 in hole SERC0362 2.60m @588 ppm eU3O8 in hole MOKR2596 2.95m @1514 ppm eU3O8 in hole MOKR2571 1.90m @798 ppm eU3O8 in hole MOKR2603

*all intervals are reported above 200ppm eU3O8 with a maximum internal dilution of 0.5m.

Resource modelling trials utilising Uniform Conditioning (UC) and Localised Uniform Conditioning (LUC) resource modelling techniques during the year have been successful. The LUC uses the proposed mining unit which has been reduced in size due to the selectivity of the surface miners that will be utilised.

In September 2015, A-Cap announced an upgraded Letlhakane Uranium Resource utilising LUC. The updated Global Mineral Resource, completed by an independent expert and reported in compliance with the JORC 2012 code, is summarised below:

Cut-off (U3O8 ppm)	Total Indicated		Total Inferred	Global Total
	Mt	U3O8 (ppm)	Contained U3O8 (Mlbs)	Mt	U3O8 (ppm)	Contained U3O8 (Mlbs)	Mt	U3O8 (ppm)	Contained U3O8 (Mlbs)

100	197.1	197	85.4	625.1	203	280.2	822.3	202	365.8
200	59.3	323	42	209.9	321	148.1	269	321	190.4
300	22.1	463	22.8	81.7	446	80.4	103.9	450	103.1

Table 3: 2015 LUC Mineral resource estimates for ALL DEPOSITS at various U3O8 cut-offs

The new global resource estimate using LUC best reflects the mining methodology envisaged, taking into account the surface miners' selective mining capability, combined with the proposed grade control methodology.

When comparing the 2015 LUC Resource against previous estimates, the LUC resource contains more tonnes and slightly more grade. The 2015 resource utilised wireframes that delineated continuity over larger areas, whereas the 2013 resource was completed using a categorical modelling approach. The global resources were similar when comparing the two models, however it was found that the categorical approach, although correctly estimating the quantum of the uranium resource, had less continuity of grade extrapolation compared to using a wireframe. Furthermore the takes the UC result and localises it into SMU scale blocks, making it more suited to extraction and optimisation studies.

Operational Report from the CEO (Continued)

Mining

Quotations for a bulk prestrip, mining with surface miners and truck haulage to the ROM were received from several mining contractors. Vermeer and Wirtgen also evaluated productivity and costs from the testwork undertaken on various lithologies expected during the operations.

The proportion of material to be mined is approximately; 64% mudstone and carbonaceous mudstone,

14% siltstone and fine sandstone,

12% sandstone and arkosic sandstone and 5% conglomerate and breccia and

5% surficial material.

These rock types have variable Cerchar abrasiveness (CAI) from slightly abrasive to very abrasive with an overall average of 2.0 (medium abrasiveness) and hardness's (UCS) which average from 10 to 55Mpa. Occasional (100Mpa have been observed from thin sandstone units. With this range of UCS values surface mining costs are low with high productivity.

Haulage distances from the pits to the ROM vary from 1.3 to 8.3km and a study is to be undertaken to see if a central conveying system may offer benefits over truck haulage.

The in-pit resources were scheduled using the Minemax Scheduler and produced a 16 year mine life and an 18 year process life with: Total process feed of 157mt at a grade of 191 ppm U3O8, including 103mt which is direct feed to the leach pads.

53,778,206 tonnes is reclaimed from stockpiles in the latter years of the Project,

The Indicated resources amount to 29,257,991 tonnes averaging 209 ppm U308 while the Inferred resources total 73,563,172 averaging 164 ppm U3O8

The proportion of Indicated to Inferred in the direct feed to process is currently 28.5% to 71.5%.

The mining costs are calculated by using quoted prices from operating mining contractors within Southern Africa. The costs take into account, pit depth, specific gravity and hardness of the material moved.

OPEX	Mining cost	Processing including G&A	Total Operating costs
US$/lb	US$/lb	US$/lb
LOM	18.1	22.7	40.7
Table 4 - Opex costs over life on mine
OPEX	Mining cost	Processing including G&A	Total Operating costs
Year	US$/lb	US$/lb	US$/lb
1	18.0	14.2	32.2
2	18.8	14.7	33.4
3	21.7	14.9	36.6
4	24.3	15.8	40.0
5	14.2	18.0	32.2
Average*	34.9

* the average is weighted against the UO2 produced per annum.

Table 5 - Opex for first 5 years production

Construction CAPEX

Main Area US$ (Million)

Table 6 below summarises the initial construction CAPEX cost of US$351 million which includes a contingency of $US43 million. Working capital of approximately $US40 million is required (includes US$5M contingency). Owners Project costs incorporate admin and plant pre-production costs, spare parts and mobile plant. A pre strip is required in the Serule West area to access potential higher grade mineralisation.

Construction Indirects 30 Process Plant 176

Reagents & Plant Services 30

Infrastructure	33
Mining - Pre strip	26
Management Costs	25
Owners Project Costs	28

Owners pre-production buildup 3

Grand Total exc. Working Capital 351

Table 6 - Total initial construction CAPEX

Environmental and Social Impact Assessment

SLR Consulting completed the ESIA and submitted the report to the Department of Environmental Affairs (DEA) in May 2015. Specialist studies determined that with appropriate mitigation all environmental and social aspects during the construction and planned operations were addressed. Presentations of the ESIA findings were presented to the Serule and Gojwane Kgoltas', the Mmadindare and Paje sub land Boards, and the Tonata council. A review session was undertaken at the request of the DEA in July. Further feedback as a result of the meeting is expected.

Tenure

An application for extension of the prospecting licence PL45/2005 was submitted to the Botswana Department of Mines in February 2015. While the extension is still pending, the DOM has given a three (3) months extension whilst the application

is being processed. Tenement extensions of 2 years were also granted for Foley 125/2009, Bolau 134/2005 and Mea 138/2005.

Feasibility Team

The project is fortunate to have a strong team conducting the feasibility work with proven expertise and experience in all aspects of the project. This includes specialists in geology, mineralogy, mining, metallurgy, process design, hydrology, environmental, radiation and engineering. These specialists are considered to be some of the best in their field. These include Dr Paul Woolrich (A-Cap Director) and our specialist consultants Lycopodium Minerals (lead consultant), SGS Lakefield Oretest

and ANSTO (metallurgical testing), SRK Consulting (mineralogy), Alan Taylor of Alta Metallurgical Services, Grenvil Dunn of Orway Mineral Consultants and Randall Pyper of Kappes Cassiday & Associates (metallurgical and process design), SLR Consulting (ESIA and geochemical, geotechnical and hydrological aspects of feasibility study), David Cairns of Mitico, Optiro and Cube Consulting (optimisation, mining & scheduling).

Uranium Market

It has been a challenging period for the Uranium industry, however the fundamentals of nuclear energy as a base load energy option remains sound. Brian Lundin, publisher of Gold Newsletter states 'As a relatively cheap and clean source of energy, the demand for nuclear energy has been growing for fundamental reasons that even the Fukushima accident couldn't derail'. With the increasing need to significantly reduce global carbon emissions across the world, nuclear is the clear choice of electricity generation.

Ben Heard, Director of ThinkClimate Consulting reported that there was little to no evidence that the world could shift to 100% renewables any time soon despite the touting from Greens and environmentalists.

His research group concluded that a much faster growing nuclear sector is needed to meet decarbonisation targets around the globe. Given that forecast global nuclear capacity will

grow to 552 gigawatts equivalent (GWe) by 2035 (currently 379GWe), the International Energy Agency estimates that nuclear capacity needs to reach 660GWe in 2030 and more than 900GWe by 2050.