The property area is 90-95% covered by thin overburden and so outcrop exposure is limited. Prospecting and surface sampling to date has identified 23 uranium occurrences in this mostly-covered area. Thirteen of these were discovered by the Company's prospecting crew since late 2005, seven of which were made with the assistance of the airborne radiometric survey flown in 2006. Numerous high values from boulders and outcrop exposures range up to 3.1% U3O8.

Uranium mineralization is interpreted to be stratabound hosted by sandstone and felsic volcanic rocks of Ordovician age (450 million years) in the southwest portion of the Gander Tectonic Zone of Newfoundland. Two of the smaller showings were reported to be within one of the granitic bodies. Pitchblende appears to be the primary uranium mineral, with minor associated uraninite, autinite, uranophane and brannerite.

The Newfoundland uranium property fits the Company's profile for the following reasons:

• High value commodity with excellent fundamentals and future growth potential - current spot price for uranium is $60+ per pound U3O8 and predicted to go much higher

• Prospective geology in an area where we are able to secure a large land position at a manageable cost. - The property holdings and rights cover a strike length of more than 100 kilometres totalling approximately 447,300 acres (180,400 hectares) covering a large Paleozoic sedimentary-volcanic basin in a major structural suture zone that is intruded and underlain by radiogenic, uranium-bearing granites. Uranium is hosted mainly in sediments and volcanics and is both stratabound and stratiform within the bedding. There has been no previous drilling.

• Grade and resource potential - Numerous uranium prospects in outcrop and boulders occur that are locally high grade, containing up to 3.1% U3O8. The average grade of the world's producing uranium mines is 0.15% U3O8. The opportunity here is for a near-surface open-pittable bulk tonnage uranium resource.

• Good Pedigree - previous work was done by Shell Canada and the Central Electricity Generating Board (CEGB) in the early 1980's - they recommended additional work but the uranium price fell.

• Location and Infrastructure - One of the main selling points of the project, the property is 10-35 kilometres from a sea ports, in a favourable mining jurisdiction, and has a paved highway and power line running through the centre. There is an excellent mining culture in the province and a good local labour pool.

• Control and leverage - The Company is the dominant land holder in the belt and we control all of the currently known uranium prospects.

The Company has the right to earn a 100% interest in the core 40,000 Hectare Hermitage property through two option agreements with local Newfoundland prospectors. Combined, the two deals require total cash payments of $142,200, issuing 351,000 common shares and completing $1.3 million in work over 4 years. Both agreements are subject to a 2% of Net Smelter Returns Royalty for the vendors with a buy-back of one half of the royalty for $1.0 million. The Company also holds a 2% Royalty on two groups of claims owned by Bayswater Uranium Corp to the west and east of the Company's property. The 3,675 hectare Strickland property is owned 100% by the Company and covers several uranium showings in a similar package of rocks.

A 5,500 line kilometre airborne radiometric, magnetic and radiometric geophysical survey was flown in June, 2006 by Aeroquest International Limited. Most of the known uranium showings are clearly visible in the airborne data, including Main, Hawksnest, Muise and Chan at the Blue Hills prospect and all four White Bear River prospects, including Doucette. Detailed ground prospecting using the airborne data has resulted in the discovery of at least seven new uranium showings.