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Community Updates

McClean Lake, Midwest & Cluff Lake Projects

September 24, 2007

McClean Lake Operation

Mining continues at Sue E and should last until end of December 2007. In preparation for mining of the Sue B deposit in 2008 the overburden has been stripped. A new underground mine program is currently under review, to be located near the entrance of the McClean Lake site. Production for the underground mine would be expected in 2011.

In order to house the increasing workforce at McClean Lake and to accommodate future requirements from the Midwest Project, a camp expansion is underway. The new wing will add 140 rooms bringing the total capacity of the permanent camp to 290 rooms. Construction by Points Athabasca Construction Ltd. (PACL) started in mid-August and should last until next summer.

TSince the last Community Update there were two small reportable spills the first one occurred on August 16th when 20 kg of tailings were pushed out of a culvert and the second one on September 2nd when 20 L of sludge from the JEB Water Treatment Plant spilt when a pipeline broke. Both spills were immediately cleaned-up and should not have any adverse effect on the environment. The leaking pipeline has been repaired. Following these incidents, staff have received additional spill prevention and use of secondary containment training.

Caribou Project

The regulatory process to develop the new Caribou mine located just north of the existing Sue mine area is progressing. Saskatchewan Environment has now issued a notice of public review for the draft project specific guidelines and a public hearing will be held by the Canadian Nuclear Safety Commission (CNSC) on the Project Specific Guidelines on October 31, 2007.

Midwest

The Midwest project is advancing on several fronts simultaneously. Preparation of the Midwest Environmental Impact Statement (EIS) is continuing and nearing completion. Progress continues on the critical path components of the project such as the awarding of contracts for the design, supply and installation of the water treatment plant as well as the engineering procurement and construction management. If all goes well, construction of the Midwest facilities and preparatory work for mining could start in 2009.

Cluff Lake

Cluff Lake continues its post-closure monitoring period. The power lines decommissioning from the old mill site to the Secondary Treatment Station is almost complete. The work involves the removal of unused poles and the collection and recycling of the lines made of aluminum wire with a steel core. The poles deemed in good condition and reusable will be shipped to McClean Lake.

The exploration crew working at Shea Creek continues to operate out of the Cluff Lake camp boosting the site population to around 30 people. Three drilling rigs are currently being set-up at Shea Creek and should stay until the end of the fall exploration campaign in late November.

Environmental crews remain at Cluff Lake to collect surface and groundwater samples to evaluate the success of the decommissioning activities. Camp and equipment maintenance personnel keep the office and residences operational, electrical power generators running, roads plowed and the airstrip open.

Human Resources