ASX RELEASE

14 September 2016

UraniumSA Limited ("UraniumSA")

ASX Code: USA

ABN 48 119 978 013

Ground Floor

28 Greenhill Road

Wayville SA 5034

Phone +61 8 8132 0577

Fax +61 8 8132 0766

www.uraniumsa.com.au [email protected]

BOARD OF DIRECTORS

Alice McCleary Chairman Martin Janes Director David Paterson Director &

Acting CEO

Russel Bluck Geoscience Manager

PROJECTS

South Australia

Whymlet ELA 2015/00126 Lock ELA 2015/00114

Sheoak Hill ELA 2015/00113 Muckanippie EL 4694

ISSUED CAPITAL

14 Sept 2016

Shares on Issue: 231,170,536 Quoted shares: 231,170,536

Unlisted Options: 5,000,000

INVESTOR INQUIRIES

[email protected]

PLACEMENT

UraniumSA is pleased to announce it has arranged a placement of shares to sophisticated investors to raise $240,000.

The placement involves the issue of 34,285,714 fully paid ordinary shares at a price of $0.007. Application will be made to the ASX for listing of the 34,285,714 shares which will rank equally with the existing 231,170,536 ordinary shares.

This issue of new securities will fall within the company's placement capacity available under ASX Listing Rule 7.1.

The funds raised will assist evaluation of new project opportunities, finance exploration and/or joint venture partner identification on existing titles and provide general working capital.

UraniumSA also notes that discussions with Taylor Collison regarding a further capital raising continue. On 22 June 2016 shareholders approved a placement of shares to raise up to $1 million. The 3 month approval window for this transaction is nearing expiry and pricing terms of the approval have unexpectedly made it difficult to progress a transaction pursuant to the Taylor Collison mandate.

Your directors are very mindful of the discount involved in the placement announced today. Subject to share price movements, discussions with Taylor Collison and general market conditions UraniumSA will progress a rights issue to all shareholders recognising today's discounted placement price. An announcement regarding the rights issue will be released in the coming days.

Inquiries regarding this report and company business may be directed to:

David Paterson - Acting CEO

+61 8 8132 0577

+61 417 823 654

VISIT OUR WEBSITE

www.uraniumsa.com.au

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About UraniumSA Limited

UraniumSA is an Adelaide based explorer with a portfolio of properties in South Australia's Gawler Craton and Eyre Peninsula.

On the 27th June 2016, following shareholder approval, the Company effected the demerger of Samphire Uranium Limited ('SUL') as a separate standalone unlisted public company. SUL is now the owner of the Samphire Project Uranium Assets. This has resulted in the following structure that sees UraniumSA shareholders (who owned shares on the 27th June 2016) owning shares in both entities pro-rata to their holding in UraniumSA as at 27th June 2016.

The demerger outcome is summarised in the table below.

Discussions continue with Taylor Collison with regard to their assistance with identifying new investments capable of adding significant value (ASX 6th April

2016). The Company is also pursuing its own investigations in this regard.

The exploration results and mineral resources reported herein, insofar as they relate to mineralisation, are based on information compiled by Mr Russel Bluck an employee of UraniumSA Limited and Member of the Australian Institute of Geoscientists with sufficient experience relevant to the style of mineralisation and type of deposits being considered, and to the activity which is reported to qualify as a Competent Person as defined by the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code, 2012 Edition). Mr Bluck consents to the inclusion in the report of matters based on his information in the form and context in which it appears. It should be noted that the above mentioned exploration results are preliminary.

URANIUMSA LIMITED - ORGANISATION STRUCTURE (effective 30 June 2016)

A B

UraniumSA Limited (ASX code: USA Ultimate Holding Co.)

Samphire Uranium Limited (unlisted Public Company) (ACN 613 018 385)

Fatjack Pty Ltd (100%)

Boston Minerals Pty Ltd (100%)

S Uranium Pty Ltd (ACN 116 348 915)

(fomerly Samphire Uranium Pty Ltd)

Function

owner and operator of plant and equipment

(100%)

Function

Corporate strategy and delivery, finance and asset management/asset holder

Function Subsidiary holding exploration assets

Function Subsidiary holding exploration assets

Function

Owner of Samphire Project, exploration for uranium and base metals

Angus Resources Pty Ltd (100%)

Assets

100% Fatjack Pty Ltd

100% Boston Minerals Pty Ltd

Assets

EL4694 - Muckanippie (basement complex)

Assets

Cleve Project

ELA 2015/00113 - Sheoak Hill

ELA 2015/00114 - Lock

Cariwerloo Project

ELA 2015/00126 - Whymlet

Assets

Samphire Project (host of Blackbush & Plumbush deposits) EL4979 - Mullaquana

EL5426 - Midgee (JV Hiltaba) EL5440 - Murninnie

EL4693 - Wild Horse Plain (JV Pirie Resources Pty Ltd) (100% interest in JV Uranium)

Samphire - Nonowie pastoral leases

100% Angus Resources Pty Ltd (owner of plant & equipment)

Assets

Backfill and rehabilitation plant, down hole geophysical logging plant

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