ASX RELEASE                                                                                                           

4 December 2007

Scoping Study Confirms Robust Potential of Bison Basin Project

Summary

WildHorse Energy Ltd (ASX: WHE) has received the results of a Scoping Study into the options for the development of an In Situ Recovery (ISR) mine based on its Bison Basin uranium project located in Wyoming, United States.  The Study was undertaken by Mine and Quarry Engineering Services, Inc. (MQes) and confirms that a viable operation with strong cash margins can be developed.

WildHorse Managing Director, Richard Pearce said today, “We are delighted with the results of the Scoping Study. This work considered a range of scenarios with the main focus on the Bison Basin to produce one (1) million pounds per annum for an extended period.  Importantly, we can now progress with the next phase of work towards licencing a mine before the end of 2010, with a view to growing a more significant operation in the following years”.

The Scoping Study evaluated several conceptual scenarios.  The Study identified ISR[1] to be the most appropriate extraction method.  ISR is a proven technology and has been used extensively in the United States and elsewhere around the world since the mid 1970s.  

WHE’s current JORC resource of 2.3 million pounds was used as the starting point for the Study.  This resource only includes the West Alkali Creek (“WAC”) Deposit and the CAB Claims Area (“CAB”).  The WAC and CAB deposits represent approximately 15% of WHE’s total Bison Basin ground position and account for only 630 drill holes of ~3500 drilled in the Basin.  The WAC deposit was partially mined by Ogle Petroleum in the late 1970s.  Ogle’s ISR mine produced ~70,000 pounds of U₃O₈, but was closed in 1982 when the uranium price dropped below US$18/lb.  The current spot price for U₃O₈ is US$93/lb[2]. 

The main development scenario was based on an exploration target producing between eight and 10 million pounds, with a 1 million pound per annum operation.  The cash costs have been estimated at US$18 per pound and pre-production capital costs estimated to be US$62 million (including an $8 million contingency).  Consistent with the level of accuracy associated with a scoping study, these capital estimates should be taken to be �35%.  A preliminary economic analysis used a U₃O₈ price based on a consensus of investment bank and industry consultant’s forecasts. 

The Scoping Study assumes the project is developed on a stand alone basis.  At this point the potential savings associated with treating the ISR resin through the yellowcake circuit of the nearby Sweetwater Mill have not been assessed.  The Sweetwater Mill, which is owned by Rio Tinto, is currently under care and maintenance.  Rio Tinto has recently announced their intention to sell the Mill and all of their surrounding uranium tenements.

WHE will now complete pre-feasibility and feasibility studies in 2008, with a focus on the completion of all environmental and engineering work required for the submission of licence applications to relevant authorities in the United States.  WHE will continue its ongoing exploration and drilling program in the Basin with the aim of developing its resources to the target level.

1.         Project and Scoping Study Background

The Bison Basin Project is located in southern Wyoming in the United States near the northern rim of the Great Divide Basin and the southern edge of the Wind River Mountains in an area known as Antelope Hills.  The area is 55 miles (89km) south of Riverton, Wyoming and can be reached via 97km of paved and 4x4 dirt roads.  The West Alkali Creek (“WAC”) deposit represents a small part of the Bison Basin Project and was the site of the original ISR developed in the late 1970s.  The CAB Claims area (“CAB”) is located approximately 5km to the east. 

The Bison Basin Project is also 40km from WildHorse’s Sweetwater project and the Rio Tinto owned Sweetwater Mill (see Figure 2 below).  Rio Tinto has recently announced their intention to sell the Sweetwater Mill and all their surrounding uranium claims which includes the historically mined areas. 

The Scoping Study was undertaken by Mine and Quarry Engineering Services, Inc. (MQes) with additional input from Coffey Mining Pty Ltd and environmental and permitting consultants AATA International, Inc.  All groups are highly regarded resource consultancies with relevant backgrounds in uranium and in-situ recovery (ISR) mining project development.

2.         JORC Resources & Exploration Targets

The Scoping Study considered the exploration potential of the Basin.  WHE has an exploration target of 8 to 10 million pounds with average grades of 0.05% to 0.07% U₃O₈ (“Exploration Target”).

The Exploration Target is based on the large amount of historical data, including drill logs and disequilibrium studies, which WHE has acquired on the Greater Bison Basin Area.  This comprised in excess of 3,500 holes many with significant uranium mineralisation, drilled during the 1970’s and 1980’s.  Dr De Visser of Coffey Mining (Competent Person), has reviewed the historical data available for the Bison Basin Project and made a site visit to the area.  He considers the Exploration Target to be reasonable based on the data available, the assumptions made and the ~40,000 metre drilling program planned for 2008.  The size and grade of the Exploration Target is conceptual in nature and it is uncertain if further exploration will result in the determination of a mineral resource. Notwithstanding the large volume of historical data pertaining to WildHorse’s Bison Basin project, there is currently insufficient data to define a JORC compliant mineral resource for the exploration target, in addition to the current JORC resources.

The current JORC resource is 2.3 mlbs of U₃O₈ on WHE’s ground.  The current resource relates to approximately 15% of the ground held by WildHorse and includes 630 drill holes out of a total of ~3500 drilled on WHE ground and in the Greater Bison Basin Area.

Table 1: Bison Basin Project - Mineral Resources

A cut-off grade of 0.02% U₃O₈ has been used to calculate the above resources.  The resource is based on information compiled by Dr Jan Pieter de Visser, who is a Member of The Australasian Institute of Mining and Metallurgy and is employed by Coffey Mining.  Dr de Visser has sufficient experience to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. 

3.         Development Scenario

The main development scenario was based on a 1 million pound per annum operation[3] using the ISR mining method.  The key benefit of ISR is the relatively low capital requirements compared to conventional open pit or underground mining which would require milling.

In addition to the production rates, the other key assumptions are detailed in Table 2 below.  These assumptions relate to the exploration target of 8 to 10 million pounds stated above.

* This capital cost re-occurs every 4 years

The pre-production capital cost estimates are summarised in Table 3 below.  Consistent with the level of accuracy associated with a scoping study, these capital estimates should be taken to be �35%.

MQes consider ISR to be the most cost effective method of extraction for the WAC deposit.  ISR is considered the most likely extraction method for the Greater Bison Basin Project, as the geology for the WAC and CAB deposits is similar to the rest of the Project area.  A significant advantage with ISR is that it removes the requirement to mill the ore prior to the production of yellow cake.  As well as the obvious operating and capital cost saving, the time required to construct and license a new mill would delay production well beyond the current licencing target of 2010 and the ramp-up to the subsequent production target. 

For the purposes of this Scoping Study the process flowsheet is based on:

�         Barren solution along with carbon dioxide and oxygen will be pumped into the injection wells;

�         Pregnant solution will be reclaimed in production wells and pumped to surface;

�         Pregnant solution will be sent to pressure filtration ahead of the Ion Exchange (“IX”) columns where uranium will be extracted from solution and loaded onto resin;

�         Loaded resin will be eluted using a concentrated solution of ammonium bicarbonate;

�         Uranium (yellow cake) will be precipitated from pregnant eluate solution, thickened, filtered, dried and drummed;

�         Leaching, IX column loading and yellow cake thickeners will operate 24 hours per day;

�         Elution columns will operate on 12 hour cycles; and

�         Yellowcake filtering and handling will operate for 8 hours per day.

An additional scenario was evaluated whereby WildHorse’s Bison Basin and nearby Sweetwater projects would be developed together (“Joint Development Scenario”).  The economics of this scenario were also favourable.  WildHorse plans to complete a stand alone scoping study on its Sweetwater project in 2008.

4.                  Project Development Schedule

WHE will complete its pre-feasibility study and commence the feasibility study in 2008.  This will incorporate engineering and environmental studies required to lodge licence applications in early 2009.  Based on the experience of other companies, the permitting process is expected to take 18 months, subject to WHE meeting all regulatory requirements.  WHE will continue with its preparations to commence mine production after this licence is issued.  This will include an ongoing program of drill hole and data analysis, and extensive exploration drilling on its exploration target.  

For more information, contact:

The information in this statement as it relates to Exploration Results and Mineral Resources is based on information compiled by Jan de Visser, a professional geologist who is a Member of the Australasian Institute of Mining and Metallurgy.  Dr de Visser has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’.  Dr de Visser consents to the inclusion in this statement of the matters based on his information in the form and context in which it appears.  Dr de Visser is currently an employee of Coffey Mining, formerly RSG Global.  He will be joining WildHorse as a full-time employee in January 2008.

The Scoping Study report was prepared by Mine and Quarry Engineering Services, Inc. (MQes) for the exclusive use of WildHorse Energy and not for use by any other party. Any use by a third party of any information contained in this report shall be at their own risk and shall constitute a release and an agreement to defend and indemnify MQes from and against all liability in connection therewith whether arising out of MQes' negligence or otherwise.  The conclusions and recommendations contained in the report are based on certain information from sources outside the control of MQes. While exercising all reasonable diligence in the acceptance and use of information provided, MQes does not warrant or guarantee the accuracy thereof.

[1] ISR accounts for 26% of global U₃O₈ production.  Source: World Nuclear Association

2 Source: The Ux Consulting Company and TradeTech

3 This scenario is conceptual in nature and is not intended to indicate a decision by WHE to proceed with mine development.  Further studies will be required before such a decision could be considered.

Issued by

Purple Communications

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