WORKSHOP ON APPLICATION OF UNITED NATIONS FRAMEWORK CLASSIFICATION – 2009 FOR

URANIUM RESOURCES

Johannesburg 10 -14 November 2014

AN OVERVIEW OF URANIUM IN SOUTH AFRICA

Abdul O Kenan

MAJOR URANIUM DEPOSITS IN SOUTH AFRICA

SPRINGBOK

FLATS BASIN

Carbonaceous

shale & coal

WITS BASIN

Palaeo-

quartz-pebble

conglomerate

NAMAQUALAND

(Surficial

deposits)

KAROO

URANIUM

PROVINCE

Sandstone

MAJOR URANIUM DEPOSITS

HISTORICAL BACKGROUND

WITS BASIN

Uranium exploration begun in 1944 within the Wits Basin

Consequently, uranium production (as by-product of gold) begun in 1952

Virtually, all of the historical uranium produced in South Africa came from the Wits Basin, with a small proportion being from the Palaborwa carbonatite complex

All the current uranium production is sourced from the Wits Basin

SPRINGBOK FLATS BASIN

Uranium was discovered in the Springbok Flats Basin 1976 during exploration drilling for coal

Exploration for uranium sporadically continued until 1988 when it ceased

Currently, HolGoun Uranium and Power Limited is conducting feasibility study in the basin

NAMAQUALAND REGION

Uranium in the Namaqualand region was discovered in 1975 (Henkries deposit) by Anglo American Ltd following airborne radiometric survey

Anglo American completed feasibility study in 1979

Anglo American shelved the project in the mid-1980s due to low uranium prices

NAMAQUALAND REGION

Prospecting rights was granted to Namakwa Uranium in 2007

Namakwa Uranium conducted desktop studies by reviewing previous work by Anglo

Currently, Xtract Resources Ltd is conducting exploration in the Namaqualand region

KAROO URANIUM PROVINCE

Presence of uranium first noted by Southern Oil Exploration Corporation in 1967

Union Carbide Exploration Corporation begun exploration in 1970

First resource estimates in 1972

Large-scale exploration initiated in 1973

By 1976, there were 11 companies exploring in the Karoo Uranium Province

Exploration work stopped in 1986 due to low uranium prices

Exploration work re-started in 2005 with companies such as UraMin

UraMin was later taken over by AREVA, which subsequently sold its properties to Peninsula Energy Ltd

Currently, Peninsula Energy Ltd is the dominant player in the region

WITS BASIN

Dominion Reefs –

Shiva Uranium

Cooke uranium project

& Randfontein operations: Sibanye Gold

Vaal River

Underground

(AngloGold Ashanti): Great Noligwa, Kopanang,

Moab Khotsong - treated at

SOUTH URANIUM PLANT

Tshepong, Phakisa,

Masimong & FSTUP

projects – Harmony

De Bron, Bloemhoek,

Kloof, Driefontein,

Beatrix – Sibanye

Gold

Ergo Tailings – DRD gold

Operational

Potential future

production

Vaal River

Surface

(AngloGold Ashanti): Mine Waste Solution

VAAL RIVER OPERATIONS

• Great Noligwa: Mature operation, depth up to 2400 m

• Kopanang: depth 2600 m

• Moab Khotsong: AngloGold newest mine (2003)

• Total uranium in-situ resources AngloGold Ashanti operations: 130560 t @ 0.12 kg/t

*AngloGold Ashanti 2014

FREE STATE PROJECTS • De Bron and Bloemhoek awarded mining right • Reviewing of pre-feasibility and feasibility studies completed by Sibanye Gold

*Sibanye Gold 2014

AngloGold acquired Mine Waste Solution from First Uranium Ltd

Gold One acquired Ezulwini from First Uranium Ltd

Gold One acquired Randfontein operations from Rand Uranium Ltd

In 2012

*Gold One Ltd 2013

• Sibanye Gold acquired Cooke operations from Gold One Ltd effectively from the 15th May 2014

• Sibanye Gold completed the acquisition of Wits Gold Ltd (i.e., Witwatersrand Consolidated Gold Resources Limited) on the 14th April 2014. Projects acquired include those located in the Free State

FREE STATE PROJECTS

COOKE OPERATIONS

*Sibanye Gold 2014

• Near mine exploration and extensions of existing

mining areas

• Drilling 2013 – 2014 (surface and underground): • 1256 m at Great Noligwa

• 14671 m at Kopanang

• 10587 m at Moab Khotsong

• Improved production 2013 and 2014

• Sibanye Gold begun uranium production on the 29th May 2014 at its Cooke operations

• Envisage to produce about 115 t of uranium by end of 2015; and up to about 165 t of uranium by end of 2016

• MWS expected to start uranium production in 2014 • No update on Dominion Reef Mine

SPRINGBOK FLATS BASIN

*V Nxumalo 2014

Henkries

NAMAQUALAND REGION

*Xtract Resources 2013

*Xtract Resources 2013

• The Council for Geoscience completed high resolution geophysical survey (radiometric and magnetic) in June 2014.

• Geochemical sampling is expected to begin in January 2015

KAROO URANIUM PROVINCE

Beaufort Group: Tarkastad & Adelaide Subgroups Karoo Uranium Province lies the Late Permian Adelaide Subgroup (except satellite area, Late Triassic Elliot and Molteno Formations) Adelaide Subgroup: Teekloof & Abrahamskraal Formations Poortjie Member (Teekloof Formation) holds more than 80% of the known uranium in the basin Primary uranium-bearing minerals: coffinite and uraninite Uranium-bearing sandstones – fine grained Ore predominates in the fine-grained, horizontally bedded and low angle stratified sandstones Ore bodies are tabular, peneconcordant, and lenticular

• The properties owned by Peninsula Energy Ltd divided into Western and Eastern Sector

• Peninsula Energy has total of 42 prospecting rights

• Completed scoping study in the Eastern Sector in 2013

• Drilling: 2745 m in 2013

• Commenced pre-feasibility study, using alkaline leaching processing route

• Total in-situ resources: 25816 t @ 1.11 kg/t

*Peninsula Energy 2014

URANIUM INSITU RESOURCES – SAMREC CODE

DEPOSIT MEASURED INDICATED INFERRED

Tonnes Kg/t U3O8

Tonnes Kg/t U3O8

Tonnes Kg/t U3O8

WITS BASIN (Palaeo-quartz-pebble conglomerate)

47523

0.115 219607 0.111 300855 0.356

KAROO URANIUM PROVINCE (Sandstone)

0 0 9936 1.242 15881 1.038

SPRINGBOK FLATS (Carbonaceous shale and coal)

0 0 0 0 83462 0.43

NAMAQUALAND DEPOSIT, Henkries Central (Surficial deposits)

415 0.61 937 0.46 694 0.29

TOTAL 47938 0.119 230480 0.16 400892 0.80

83.99%

12.34% 0.3%

SA - Ranked 7th in the world

*Red Book 2014

PRODUCTION

*Department of Mineral Resources

Three Mile Island 1979

Chernobyl 1986

Fukushima 2011

*Red Book 2014

2012

NUCLEAR ENERGY

1.8 GWe requires ~290 t U per year

9.6 GWe requires ~1550 t U per year

2013

2030

Energy

share

Concentrated

solar power

Combined

Cycle

Gas

Turbines

Open

Cycle

Gas

Turbines

*L Ainslee 2013

• AngloGold Ashanti Ltd at www.anglogoldashanti.com

• Department of Mineral Resources

• Gold One Ltd at www.gold1.co.za

• Lee Ainslee (NECSA)

• Peninsula Energy Ltd at www.pel.net.au

• Red Book 2014 published by the IAEA, OECD and the NEA

• Sibanye Gold Ltd at www.sibanyegold.co.za

• Valerie Nxumalo (Council for Geoscience)

• Xtract Resources Ltd

References

THANK

YOU