November 10, 2011 Industry Update

URANIUM REACTION
IEA report says nuclear energy is vital; UK advised to spend on nuclear and not wind; French study shows inevitability of nuclear IEA INSISTS NUCLEAR ENERGY VITAL TO MEET GLOBAL DEMAND
The International Energy Agency (IEA) has warned that with the growth of emerging economies, the fight to reduce global warming and the expected rise in cost for oil, nuclear energy remains the only viable solution to meet the global energy needs. In a report released Wednesday, the IEA outlined that global nuclear generation capacity could fall 15% by 2035 if countries like Germany and Belgium continued with their decommissioning plans. However, this pullback would only mean an increased demand for coal and gas, which would further deteriorate the environment and produce carbon emissions. The price of non-nuclear energy sources would rise sharply as China and other emerging economies drive a 14% increase in oil demand by 2035. The IEA predicts a future oil price of $120 a barrel. The executive director of IEA, Maria van der Hoeven, noted that growth, prosperity and rising population would inevitably push up energy needs in the future but the world cannot continue to rely on an insecure environmentally unsustainable use of energy. Without a bold change in policy direction, the world will lock itself into an insecure, inefficient and high-carbon energy system.

Equity Research

UK GOVERNMENT ADVISED TO SHELVE WIND FOR NUCLEAR

Accounting firm KPMG, has advised that shifting emphasis away from wind turbines and towards nuclear or gas powered stations would slash the countrys energy bill by 34billion, which equates to around 550 for every person in Britain. Wind turbines produce around 5% of the countrys electricity, or enough to power 3.2 million homes. The governments goal is to increase this about five-fold by 2020 under plans to raise the amount of green energy produced, while cutting carbon emissions by a targeted 34%. However, wind power is one of the most expensive forms of electricity generation to build. The report highlights that using nuclear can cut the cost by one sixth the amount while still achieving the carbon target goals.
Exhibit 1. Nuclear power more economical than wind

Source: www.dailymail.co.uk

Rob Chang
rchang@versantpartners.com (416) 849-5008 (866) 442-4485

Keagan Marcus
kmarcus@versantpartners.com (416) 363-5757 (866) 442-4485

Sales/Trading Montreal: (514) 845-8111, (800) 465-5616; Toronto: (416) 363-5757, (866) 442-4485 See disclosure and a description of our recommendation structure at the end of this report.

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FRENCH CONSUMERS WOULD PAY 50% MORE IF NUCLEAR REDUCED TO 50%

A study conducted by Union Francaise de l'Electricite's (UFE), Frances energy industry association, notes that it would cost the country EUR60112 billion more by 2030 if it were to reduce nuclear powers contribution to the countrys energy mix from the current 75% (EUR322 billion) to either 50% (382 billion) or 20% (EUR 434 billion). In addition to the cost, a 25% decline in nuclear share to 50% would also lead to a 25% increase in CO2 emissions. Consumers would also pay 50% more in electricity costs if nuclear power accounted for only 50% of Frances energy mix. These findings have strengthened the convictions of French Energy Minister Eric Besson that nuclear power is an invaluable part of Frances future. He noted that lowering the share of Frances energy mix would dent the countrys competitiveness, increasing power prices for companies and harming French energy independence and safety of supply. He went on to highlight, that it would also be detrimental to environmental protection efforts, as nuclear helps to rein in Frances carbon emissions. The evidence concludes that it is not currently possible to efficiently replace nuclear energy. France is currently operating 58 nuclear reactors and is currently building a 59th with the 60th expected to come in a few years time.

JAPANS PRIME MINISTER MOVING AWAY FROM LESS RELIANCE ON NUCLEAR POWER POSITION
Japans Prime Minister, Yoshihiko Noda, is backing down from Japans post-Fukushima position of having Japan rely less on nuclear power. During summit talks with Vietnamese Prime Minister Nguyen Tan Dung, Noda agreed to have Japan work with Vietnam to develop the latters nuclear program. This agreement reverses the Japanese governments postFukushima decision to suspend its talks with other countries over the export of nuclear power complexes. The move also maintains Japans international credibility as the reneging on the previously won Vietnamese contract would spark questions regarding the international communitys confidence in Japanese contracts. Similarly, Japans Foreign Minister and his Indian counterpart have agreed to continue talks towards a bilateral nuclear power agreement, which would pave the way for Japans export of nuclear reactors and technology to India in the future. Prime Minister Noda is still cautious in giving a complete green light to future exports of nuclear reactors and technology, but the moves could be interpreted as an indication that Tokyo is considering fresh exports of nuclear power despite the Prime Ministers cautious approach.
Exhibit 2. Japanese and Vietnamese Prime Ministers shake hands over nuclear agreement

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Source: Mainichi News

DALI LAMA SEES ROLE FOR NUCLEAR IN GLOBAL DEVELOPMENT

After taking a trip to the tsunami-devastated region of Japan for the first time, the Dalai Lama has lent his support to nuclear power by saying he is in support of using nuclear energy for peaceful means as a way to bridge the socioeconomic gap in developing countries in the absence of more efficient alternative energy. In the past, the Dalai Lama has been an active voice against nuclear weapons but advocates that there is still a huge gap between the rich and the poor and millions of people live under the poverty level. He went on to express that the other forms of alternative energy are inefficient to put to realistic practice to meet the needs of fast developing countries and nuclear energy may be the only viable solution.

URANIUM ONE OUTPERFORMS

Uranium One (UUU-T), a member of our uranium-focused equity basket, posted third-quarter profits that beat consensus estimates handily. The company doubled revenue and posted net profit of $45.8 million, or 5 cents per share, compared with the net loss $44.8 million, or 8 cents per share last year. It also gave guidance of 11.6 million pounds of uranium for 2012 and kept its 2011 forecast at 10.5 million pounds. Uranium One, which has operations in Kazakhstan, the United States, Australia and Canada, sells most of its uranium on the spot market or on contracts tied to the spot price. Entirely unhedged, the company stands to benefit the most by our forecasted increase in uranium prices.

VIRGINIA REACTORS READY FOR RESTART

The Nuclear Regulatory Commission (NRC) has confirmed that two nuclear reactors are ready to be restarted after a 5.8 magnitude earthquake hit Mineral, Virginia in August that caused the shutdown of the plants. The NRC continues to inspect the plant because the earthquake caused peak ground movement that was greater than what the plant was designed

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to withstand. However, with the NRC approval the reactors can be restarted as soon as next week.

URANIUM EQUITY BASKET STUMBLES THIS WEEK

Our basket of highlighted uranium names declined for the first time in 4 weeks as its performance from November 3 to November 10 was down 2.5% on average. It was marginally outperformed by the broader S&P/TSX Global Base Metals Indexs loss of -2.0% over the same period. Since we highlighted the names on August 24, the basket has posted a performance of 8.9% and has outperformed the S&P/TSX Global Base Metals Indexs return of -5.3% by over 14 percentage points.
Exhibit 3. Performance of Highlighted Uranium Names

Company Name Cameco Uranium One Uranium Participation Fission Energy Kivalliq Energy Energy Fuels Average S&P TSX Global Base Metals Index
Source: Versant Partners

Ticker CCO UUU U FIS KIV EFR

Weekly Since Inception -8.4% -10.2% -9.8% -7.2% -1.0% -2.4% -7.2% 54.0% 13.8% 0.0% -2.6% 19.4% -2.5% 8.9% -2.0% -5.3%

IF CASH IS KING
Uranium equities trading at the lowest multiples relative to their most recently reported balance sheet cash positions are the following:
Exhibit 4. Top 10 Uranium Companies - Price to Balance Sheet Cash
November 9, 2011 Company Name Stage All figures in $CAD Stock Price $0.34 $0.35 $0.10 $0.22 $0.18 $0.09 $0.16 $0.09 $0.11 $0.32 Market Cap (MM) 17.60 61.01 8.45 13.09 19.40 17.44 54.59 9.86 7.41 49.21 Enterprise Value (MM) -2.11 8.76 1.64 3.19 4.91 5.07 18.46 3.52 3.00 20.07 Price/Cash 0.9x 1.2x 1.2x 1.3x 1.3x 1.4x 1.5x 1.6x 1.7x 1.7x Cash (MM) 19.7 52.36 6.81 9.9 14.49 12.37 36.13 6.34 4.41 29.14 Shares O/S 51.75 174.30 84.52 59.49 107.78 193.73 341.17 109.50 67.34 153.77

Continental Precious Minerals, Inc. (TSX:CZQ) Exploration Berkeley Resources Ltd. (ASX:BKY) Feasibility Uranium North Resources Corp. (TSXV:UNR) Exploration Tigris Uranium Corp. (TSXV:TU) Exploration Macusani Yellowcake, Inc. (TSXV:YEL) Exploration Tournigan Energy Ltd. (TSXV:TVC) Pre-Feasibility Alliance Resources Ltd. (ASX:AGS) Development Energia Minerals Limited (ASX:EMX) Exploration Australian American Mining Corporation Limited (ASX:AIW) Pre-Feasibility Energy Metals Limited (ASX:EME) Exploration

Source: Versant Partners and Capital IQ

Rob Chang, (416) 849-5008

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EV/LB AVERAGES
The average enterprise value to pounds of in-situ uranium in the ground ratios are presented below. The data is separated based on development stage and shows the group average EV/Lb metric using 43-101/JORC compliant resources and global resources, which are all resources of any level of confidence. The past week saw the average uranium EV/Lb valuation for uranium equities rise as the average 43-101/JORC compliant valuation increased to $1.68/lb this week from $1.58/lb last week (+6.3%). The average for global resources declined to $1.36/lb from $1.51/lb or -9.9%.
Exhibit 5. EV/Lb Averages by Development Stage - This Week

Global # of 43-101/JORC Resource Stage Constituents EV/Lb Avg EV/Lb Avg Producer 6 $5.68 $4.20 Developer 4 $3.34 $3.00 Feasibility 8 $0.88 $0.85 Pre-Feasibility 11 $1.10 $0.99 Exploration 32 $1.10 $0.85 61 $1.68 $1.36
*Results higher than three standard deviations are removed from the calculation of averages Source: Versant Partners

Exhibit 6. EV/Lb Averages by Development Stage Last Week

Global # of 43-101/JORC Resource Constituents EV/Lb Avg EV/Lb Avg Producer 6 $6.88 $5.31 Developer 4 $3.26 $3.00 Feasibility 8 $0.86 $0.83 Pre-Feasibility 11 $1.11 $1.01 Exploration 32 $1.11 $1.10 61 $1.58 $1.51 Stage
*Results higher than three standard deviations are removed from the calculation of averages Source: Versant Partners

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Exhibit 7. Uranium Comparables

November 9, 2011 SYM CCO DML ERA PDN UEC UUU AGS EFR URZ URE ACB BAN BKY EXT KRI MGA STM TUE AIW BYU FSY LAM PEN PWE RSC TOE TVC UEX UNX ABE AEK AEE BLR CZQ CXZ CUE DYL EMX EME FIS FTE HAT JNN KIV YEL MEY MAW GEM PIT PXP RGT SMM TU UWE ULU URC UNR URRE USA VEM VAE Exch Company Name Stage All figures in $CAD Stock Price $19.73 $1.45 $1.93 $1.45 $3.20 $2.57 $0.16 $0.37 $2.04 $1.04 $0.29 $0.26 $0.35 $8.21 $0.25 $0.29 $0.49 $0.20 $0.11 $0.21 $0.70 $0.87 $0.04 $0.13 $0.46 $0.08 $0.09 $0.70 $0.34 $0.06 $0.11 $0.22 $0.02 $0.34 $0.48 $0.03 $0.13 $0.09 $0.32 $0.77 $0.03 $4.55 $0.09 $0.33 $0.18 $0.03 $1.79 $0.18 $0.15 $0.12 $1.09 $1.82 $0.22 $0.34 $0.05 $0.08 $0.10 $1.05 $0.15 $0.19 $0.20 Implied EV/Lb Valuation $15.51 $5.30 $20.78 $3.07 $3.67 $1.81 $0.28 $0.55 $1.39 $1.16 $0.76 $0.66 $0.69 $2.11 $0.74 $0.26 $1.29 $0.26 $0.27 $2.28 $2.35 $1.11 $0.03 $0.22 $0.18 $0.07 $0.39 $0.55 $0.21 $0.08 $0.17 $5.31 $0.15 $23.00 $0.64 $0.09 $0.13 $0.13 $0.31 $0.47 $0.03 $0.77 $0.03 $0.25 $0.41 $0.18 $2.91 $0.41 $1.57 $0.16 $0.60 $0.36 $0.76 $0.74 $0.18 $0.40 $0.21 $1.36 $0.22 $0.30 $0.40 Enterprise Value Upside to Market Market Cap (MM) (MM) Implied Value 7,783.88 7,807.11 -21.41% 557.76 425.18 265.44% 368.13 176.62 976.56% 1,127.11 1,788.76 112.06% 235.01 205.59 14.76% 2,460.00 2,597.74 -29.69% 54.59 18.46 73.38% 45.88 37.37 48.15% 157.06 113.90 -31.88% 107.83 79.05 11.76% 58.03 45.45 160.82% 60.95 54.65 155.10% 61.01 8.76 98.16% 2,060.79 1,983.29 -74.34% 13.56 7.29 197.19% 74.56 43.44 -11.88% 44.07 28.86 163.63% 25.96 19.59 29.73% 7.41 3.00 142.64% 4.69 3.69 987.07% 56.09 48.97 236.28% 59.04 55.40 27.50% 83.81 56.16 -12.60% 13.43 16.78 71.16% 66.67 72.31 -60.49% 77.20 46.50 -16.55% 17.44 5.07 335.10% 142.15 128.65 -22.11% 57.67 54.15 -37.08% 5.70 4.94 40.06% 10.84 8.89 50.78% 29.11 25.71 2314.67% 14.77 6.18 633.28% 17.60 -2.11 6665.37% 22.79 13.13 33.80% 3.42 3.54 200.74% 146.58 132.81 -1.16% 9.86 3.52 47.33% 49.21 20.07 -2.94% 75.46 56.87 -39.20% 20.87 11.85 4.16% 514.24 490.38 -83.01% 9.55 7.70 -69.98% 40.42 24.70 -22.73% 19.40 4.91 129.22% 12.77 11.08 495.73% 92.45 79.48 62.61% 24.11 20.81 125.76% 3.09 2.53 946.62% 4.78 2.87 33.95% 118.45 83.87 -45.12% 396.72 385.48 -79.99% 13.09 3.19 244.41% 34.91 19.48 117.69% 1.74 1.67 250.45% 10.62 5.07 405.85% 8.45 1.64 106.57% 98.21 90.84 29.37% 21.96 14.22 49.55% 23.67 14.75 57.50% 19.50 15.55 99.94% Price/Cash 6.5x 4.2x 1.9x 10.0x 8.0x 6.7x 1.5x 5.4x 3.6x 3.7x 4.6x 3.9x 1.2x 26.6x 2.2x 2.4x 2.0x 4.1x 1.7x 4.7x 7.9x 16.2x 3.0x 2.6x 14.2x 2.5x 1.4x 10.5x 16.4x 7.0x 5.4x 8.6x 1.7x 0.9x 2.4x 114.1x 10.6x 1.6x 1.7x 4.1x 2.3x 21.6x 5.2x 2.6x 1.3x 3.8x 7.1x 7.3x 5.5x 2.5x 3.4x 32.7x 1.3x 2.2x 24.8x 1.9x 1.2x 12.4x 2.8x 2.2x 4.9x Based on 43-101/JORC Resource MKT / LB $7.93 $4.60 $0.55 $2.31 $12.35 $7.49 $3.12 $4.25 $8.24 $3.93 $0.37 $0.36 $0.78 $4.02 $0.35 $1.90 $0.78 $0.85 $0.60 $0.22 $0.34 $0.95 $2.02 $0.56 $3.29 $2.52 $0.30 $1.61 $1.94 $0.87 $0.83 $0.05 $0.16 $0.02 $1.27 $0.36 $1.23 $1.32 $2.90 $3.03 $1.80 $8.88 $2.86 $0.71 $0.19 $6.05 $0.52 $1.17 $4.27 $6.38 $0.41 $2.02 $0.24 $0.87 $0.96 $0.89 $0.68 EV / LB $7.96 $3.51 $0.27 $3.66 $10.80 $7.91 $1.05 $3.46 $5.98 $2.88 $0.29 $0.32 $0.11 $3.86 $0.19 $1.10 $0.51 $0.64 $0.24 $0.17 $0.30 $0.89 $1.36 $0.70 $3.57 $1.52 $0.09 $1.46 $1.82 $0.75 $0.68 $0.04 $0.07 ($0.00) $0.73 $0.37 $1.11 $0.47 $1.18 $2.28 $1.02 $8.46 $1.75 $0.18 $0.16 $5.20 $0.45 $0.70 $3.02 $6.20 $0.10 $1.13 $0.12 $0.17 $0.62 $0.55 $0.54 Based on Global Resource MKT / LB $7.42 $1.66 $0.55 $2.16 $5.56 $7.49 $3.12 $2.58 $8.24 $3.93 $0.37 $0.36 $0.78 $4.02 $0.35 $1.90 $0.41 $0.84 $0.60 $0.10 $0.34 $0.91 $2.02 $0.56 $2.30 $2.52 $0.30 $1.61 $1.94 $0.87 $0.83 $0.05 $0.16 $0.02 $1.20 $0.36 $1.23 $1.32 $2.90 $3.03 $1.80 $8.88 $10.29 $2.86 $0.71 $0.19 $0.74 $0.52 $0.11 $1.17 $4.27 $6.38 $0.41 $0.63 $0.32 $0.24 $0.87 $0.90 $0.96 $0.89 $0.61 EV / LB $7.45 $1.27 $0.27 $3.42 $4.86 $7.91 $1.05 $2.10 $5.98 $2.88 $0.29 $0.32 $0.11 $3.86 $0.19 $1.10 $0.27 $0.63 $0.24 $0.08 $0.30 $0.85 $1.36 $0.70 $2.49 $1.52 $0.09 $1.46 $1.82 $0.75 $0.68 $0.04 $0.07 ($0.00) $0.69 $0.37 $1.11 $0.47 $1.18 $2.28 $1.02 $8.46 $8.30 $1.75 $0.18 $0.16 $0.63 $0.45 $0.09 $0.70 $3.02 $6.20 $0.10 $0.35 $0.30 $0.12 $0.17 $0.83 $0.62 $0.55 $0.49 Avg Grade 9.393% 1.572% 0.308% 0.078% 0.066% 0.057% 0.324% 0.206% 0.103% 0.066% 0.015% 0.020% 0.045% 0.046% 0.127% 0.112% 0.089% 0.113% 0.088% 0.083% 0.014% 0.116% 0.043% 0.138% 0.434% 0.050% 0.323% 0.741% 0.014% 0.527% 0.117% 0.016% 0.060% 0.019% 0.044% 0.043% 0.030% 0.028% 0.091% 0.058% 0.030% 8.628% 0.090% 0.790% 0.021% 0.017% 0.031% 0.045% 0.057% 0.230% 0.110% 0.075% 0.105% 0.103% 0.063% 0.012% 0.087% 0.168% 0.028% 0.020% 0.076% Resources and Reserves (MM lbs) Total P&P M&I Inferred Historical 484.04 141.65 355.67 67.28 2.87 78.80 39.51 214.11 246.20 272.64 144.74 0.00 159.20 192.06 136.91 34.58 0.00 6.53 12.50 23.24 47.97 153.23 127.35 0.00 0.00 8.00 9.50 0.00 0.00 6.45 4.35 6.99 0.00 15.72 3.34 0.00 0.00 23.72 3.71 0.00 0.00 50.20 107.60 0.00 0.00 118.96 51.12 0.00 0.00 34.90 43.15 0.00 319.90 38.51 154.80 0.00 30.68 6.61 1.39 0.00 0.00 34.56 4.76 0.00 0.00 36.85 19.51 50.50 0.00 30.40 0.00 0.65 0.00 0.00 12.31 0.00 0.00 11.46 10.16 23.73 60.50 77.20 27.07 0.00 0.00 43.26 19.07 2.70 0.00 11.20 30.20 0.00 0.00 17.06 6.85 0.00 0.00 7.46 12.78 8.80 0.00 10.87 19.74 0.00 0.00 32.24 25.40 0.00 0.00 72.77 15.49 0.00 0.00 4.35 25.40 0.00 0.00 1.96 4.63 0.00 0.00 8.12 4.94 0.00 0.00 0.00 638.00 0.00 0.00 39.75 51.18 0.00 0.00 14.41 1,037.96 15.34 0.00 7.40 10.50 1.10 0.00 8.30 1.20 0.00 0.00 39.01 80.57 0.00 0.00 0.00 7.46 0.00 0.00 4.90 12.08 0.00 0.00 0.00 24.89 0.00 0.00 0.00 11.60 0.00 0.00 17.21 40.73 0.00 0.00 0.00 0.00 0.93 0.00 0.00 14.15 0.00 0.00 10.37 16.97 0.00 0.00 9.60 58.40 0.00 0.00 0.12 15.17 110.00 0.00 15.18 31.44 0.00 0.00 0.00 0.00 29.00 0.00 0.00 4.10 0.00 0.00 6.07 21.68 0.00 0.00 32.70 29.44 0.00 0.00 32.08 0.00 0.00 0.00 12.10 5.14 38.00 0.00 0.00 0.00 5.49 0.00 6.86 37.10 0.00 0.00 0.00 9.71 0.00 0.00 0.00 0.00 109.15 0.00 0.00 22.90 0.00 0.00 13.66 13.07 0.00 0.00 28.56 0.00 3.40 Total 1,048.64 335.29 663.59 522.74 42.27 328.54 17.50 17.78 19.06 27.43 157.80 170.08 78.05 513.21 38.69 39.32 106.87 31.05 12.31 45.35 164.77 65.03 41.40 23.91 29.03 30.61 57.64 88.25 29.74 6.59 13.06 638.00 90.93 1,067.71 19.00 9.50 119.58 7.46 16.98 24.89 11.60 57.94 0.93 14.15 27.34 68.00 125.29 46.63 29.00 4.10 27.75 62.14 32.08 55.24 5.49 43.95 9.71 109.15 22.90 26.73 31.96

TSX Cameco Corp. (TSX:CCO) Production TSX Denison Mines Corp. (TSX:DML) Production ASX Energy Resources of Australia Ltd. (ASX:ERA) Production TSX Paladin Energy, Ltd. (TSX:PDN) Production AMEX Uranium Energy Corp. (AMEX:UEC) Production TSX Uranium One Inc. (TSX:UUU) Production ASX Alliance Resources Ltd. (ASX:AGS) Development TSX Energy Fuels Inc. (TSX:EFR) Development amex Uranerz Energy Corp. (AMEX:URZ) Development TSX UR-Energy Inc. (TSX:URE) Development ASX A-Cap Resources Ltd. (ASX:ACB) Feasibility TSX Bannerman Resources Limited (TSX:BAN) Feasibility ASX Berkeley Resources Ltd. (ASX:BKY) Feasibility ASX Extract Resources Ltd. (ASX:EXT) Feasibility TSX Khan Resources Inc. (TSX:KRI) Feasibility TSX Mega Uranium Ltd. (TSX:MGA) Feasibility TSX Strathmore Minerals Corp. (TSX:STM) Feasibility TSXV Titan Uranium Inc. (TSXV:TUE) Feasibility ASX Australian American Mining Corporation Limited (ASX:AIW) Pre-Feasibility TSXV Bayswater Uranium Corp. (TSXV:BYU) Pre-Feasibility TSX Forsys Metals Corp. (TSX:FSY) Pre-Feasibility TSX Laramide Resources Ltd. (TSX:LAM) Pre-Feasibility ASX Peninsula Energy Limited (ASX:PEN) Pre-Feasibility TSX Powertech Uranium Corp. (TSX:PWE) Pre-Feasibility TSX Strateco Resources Inc. (TSX:RSC) Pre-Feasibility ASX Toro Energy Ltd (ASX:TOE) Pre-Feasibility TSXV Tournigan Energy Ltd. (TSXV:TVC) Pre-Feasibility TSX UEX Corp. (TSX:UEX) Pre-Feasibility ASX Uranex Limited (ASX:UNX) Pre-Feasibility TSXV Abitex Resources Inc. (TSXV:ABE) Exploration ASX Anatolia Energy Limited (ASX:AEK) Exploration ASX Aura Energy Limited (ASX:AEE) Exploration ASX Black Range Minerals Ltd. (ASX:BLR) Exploration TSX Continental Precious Minerals, Inc. (TSX:CZQ) Exploration AMEX Crosshair Energy Corp. (AMEX:CXZ) Exploration TSXV Cue Resources Ltd (TSXV:CUE) Exploration ASX Deep Yellow Ltd. (ASX:DYL) Exploration ASX Energia Minerals Limited (ASX:EMX) Exploration ASX Energy Metals Limited (ASX:EME) Exploration TSXV Fission Energy Corp. (TSXV:FIS) Exploration ASX Forte Energy NL (ASX:FTE) Exploration TSX Hathor Exploration Ltd. (TSX:HAT) Exploration TSXV JNR Resources Inc. (TSXV:JNN) Exploration TSXV Kivalliq Energy Corp. (TSXV:KIV) Exploration TSXV Macusani Yellowcake, Inc. (TSXV:YEL) Exploration ASX Marenica Energy Ltd (ASX:MEY) Exploration TSX Mawson Resources Ltd. (TSX:MAW) Exploration TSXV Pele Mountain Resources Inc. (TSXV:GEM) Exploration TSXV Pitchblack Resources Ltd. (TSXV:PIT) Exploration TSXV Pitchstone Exploration Ltd. (TSXV:PXP) Exploration TSX Rockgate Capital Corp. (TSX:RGT) Exploration ASX Summit Resources Ltd. (ASX:SMM) Exploration TSXV Tigris Uranium Corp. (TSXV:TU) Exploration TSXV U308 Corp. (TSXV:UWE) Exploration TSXV Ultra Uranium Corp. (TSXV:ULU) Exploration TSXV Uracan Resources, Ltd. (TSXV:URC) Exploration TSXV Uranium North Resources Corp. (TSXV:UNR) Exploration NASDAQ Uranium Resources, Inc. (NasdaqCM:URRE) Exploration ASX Uraniumsa Limited (ASX:USA) Exploration TSX Vena Resources Inc. (TSX:VEM) Exploration TSXV Virginia Energy Resources Inc. (TSXV:VAE) Exploration

Source: Versant Partners and Capital IQ

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DISCLAIMERS AND DISCLOSURE Disclaimers

The opinions, estimates and projections contained in this report are those of Versant Partners Inc. (Versant) as of the date hereof and are subject to change without notice. Versant makes every effort to ensure that the contents have been compiled or derived from sources believed to be reliable and that contain information and opinions that are accurate and complete; however, Versant makes no representation or warranty, express or implied, in respect thereof, takes no responsibility for any errors and omissions which may be contained herein and accepts no liability whatsoever for any loss arising from any use of or reliance on this report or its contents. Information may be available to Versant that is not herein. This report is provided, for informational purposes only, to institutional investor clients of Versant Partners Inc. Canada, and does not constitute an offer or solicitation to buy or sell any securities discussed herein in any jurisdiction where such offer or solicitation would be prohibited. This report is issued and approved for distribution in Canada, Versant Partners Inc., a member of the Investment Industry Regulatory Organization of Canada ("IIROC"), the Toronto Stock Exchange, the TSX Venture Exchange and the CIPF. This report is has not been reviewed or approved by Versant Partners USA., a member of FINRA. This report is intended for distribution in the United States only to Major Institutional Investors (as such term is defined in SEC 15a-6 and Section 15 of the Securities Exchange Act of 1934, as amended) and is not intended for the use of any person or entity that is not a major institutional investor. Major Institutional Investors receiving this report should effect transactions in securities discussed in the report through Versant Partners USA.

Potential conflicts of interest

The author of this report is compensated based in part on the overall revenues of Versant, a portion of which are generated by investment banking activities. Versant may have had, or seek to have, an investment banking relationship with companies mentioned in this report. Versant and/or its officers, directors and employees may from time to time acquire, hold or sell securities mentioned herein as principal or agent. Although Versant makes every effort possible to avoid conflicts of interest, readers should assume that a conflict might exist, and therefore not rely solely on this report when evaluating whether or not to buy or sell the securities of subject companies.

Disclosures as of November 10, 2011

Versant has provided investment banking services or received investment banking related compensation from Kivalliq Energy, Fission Energy and Energy Fuels within the past 12 months. Versant has not received investment banking related compensation from Cameco, Paladin Energy, Hathor Exploration, Uranium One, Uranium Energy Corp, Uranium Participation, Rio Tinto, Bannerman Resources, Macusani Yellowcake, Vena Resources and U3O8 Corp. The analyst responsible for this research report does not have, either directly or indirectly, a long or short position in the shares or options of Kivalliq Energy, Energy Fuels, Cameco, Uranerz Energy, Fission Energy, Uranium One, Paladin Energy, Hathor Exploration, Rio Tinto, Uranium Participation, Uranium Energy Corp, Bannerman Resources, Macusani Yellowcake, Vena Resources and U3O8 Corp. The analyst responsible for this report has visited the material operations of U3O8 Corp, Uranium Energy Corp, Rio Tinto, Uranerz Energy and Kivalliq Energy. The analyst responsible for this report has not visited the material operations of Cameco, Uranium One, Uranium Participation, Paladin Energy, Hathor Exploration, Bannerman Resources, Macusani Yellowcake, Vena Resources and Fission Energy.

Analyst certification
The research analyst whose name appears on this report hereby certifies that the opinions and recommendations expressed herein accurately reflect his personal views about the securities, issuers or industries discussed herein.

Definitions of recommendations
BUY: The stock is attractively priced relative to the companys fundamentals and we expect it to appreciate significantly from the current price over the next 6 to 12 months.

BUY (Speculative): The stock is attractively priced relative to the companys fundamentals, however investment in the security carries a higher degree of risk. NEUTRAL: The stock is fairly valued, lacks a near term catalyst, or its execution risk is such that we expect it to trade within a narrow range of the current price in the next 6 to 12 months. The longer term fundamental value of the company may be materially higher, but certain milestones/catalysts have yet to be fully realized. SELL: The stock is overpriced relative to the companys fundamentals, and we expect it to decline from the current price over the next 6 to 12 months. TENDER: We believe the offer price by the acquirer is fair and thus recommend investors tender their shares to the offer. UNDER REVIEW: We are temporarily placing our recommendation under review until further information is disclosed.
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Rob Chang, (416) 849-5008

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