New uranium prospect ASX RELEASE. DRAGON PROSPECT coincident track-etch & AEM anomaly within advanced Samphire project southwest Whyalla

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1 ASX RELEASE 19 February 2014 UraniumSA Limited ( UraniumSA ) ASX Code: USA ABN Beulah Road Norwood SA 5067 Phone Fax executive@uraniumsa.com.au BOARD OF DIRECTORS Alice McCleary Chairman Russel Bluck Director & Geoscience Manager David Paterson Director & Acting CEO PROJECTS South Australia Samphire ELs 4979, 4242 Pine Hill EL 4787 Wild Horse Plains EL 4693 Muckanippie EL 4694 ISSUED CAPITAL Shares on Issue: 147,274,756 Quoted shares: 147,274,756 Unlisted Options: 7,550,000 INVESTOR INQUIRIES executive@uraniumsa.com.au Inquiries regarding this report and company business may be directed to: David Paterson Acting CEO VISIT OUR WEBSITE New uranium prospect DRAGON PROSPECT coincident track-etch & AEM anomaly within advanced Samphire project southwest Whyalla UraniumSA Limited (ASX: USA) is pleased to advise the discovery of a strong track-etch anomaly coincident with a bedrock airborne electromagnetic (AEM) anomaly. The coincident anomalies outline a feature ~100m wide with a strike extent of ~300m which is considered to have a good probability of representing high-grade uranium in bedrock. UraniumSA has a successful history of uranium exploration and discovery in its Samphire project, south of Whyalla on the Eyre Peninsula. The Samphire project contains the Company s flagship asset, the Blackbush deposit of sediment-hosted uranium. The Dragon prospect is located ~4km to the west of Blackbush. Exploration for bed-rock hosted high grade uranium mineralisation at Samphire has been accelerated over the last several years and has resulted in this new discovery. The Dragon prospect track-etch and AEM anomalies are interpreted to be sourced from a strike-extensive body of uranium mineralised metasomatised mylonite rocks below ~20m of younger cover (see map page 2, composite section page 3). Internationally and elsewhere in Australia uranium deposits associated with metasomatised mylonite rocks contain significant uranium mineralisation and deposits (refer to page 4). The identification of mylonite-hosted uranium mineralisation in the Samphire project creates exciting exploration opportunities for the discovery of new deposits. UraniumSA field mapping and geological interpretation of the geophysical surveys it has flown over the past several years is successfully delineating substantial strike extents of potentially metasomatised mylonite bedrock within the Samphire project. The mylonite is regarded by UraniumSA as part of the Kalinjala Mylonite Zone which extends into the tenement from the south and forms a northwest orientated sigmoidal (Z-shaped) fold in the western portion of the area. Within the fold, subtle extensive magnetic-destructive alteration is potentially the result of metasomatic alteration. Hiltaba suite granite is mapped along the northwest oriented fold axis and may be related to metasomatic alteration and uranium mineralisation. Mylonite north of the sigmoidal fold is considered to be part of the regionally extensive Roopena Fault structure. Dragon uranium prospect 19 February

2 DRAGON URANIUM PROSPECT Plan view of the track-etch results Interpreted width of the target mylonite zone AEM anomaly (next figure) Base image is a modified total magnetic intensity map. View north, 100m square graticules. Coordinates AMG Zone 53. Data ranges The statistically determined ranges used for the above thematic map are: Blue 4,000 to 13,000 Bq/m 3 Green 13,000 to 28,600 Bq/m Yellow 28,600 to 42,000 Bq/m 3 Orange 42,000 to 56,000 Bq/m 3 Red 56,000 to 126,000 Bq/m 3 Dragon uranium prospect 19 February

3 DRAGON URANIUM PROSPECT Profile of track-etch results with interpreted basement geology and AEM profile COMPOSITE PROFILE N Track-etch profile ground level for geology granite gneiss ground level for AEM section mylonite AEM anomaly potential mineralised host rock gneiss young cover AEM profile View north, vertical and horizontal scales as shown (note the magnetic profile is not scaled). AMG Zone 53. LOCATION OF THE DRAGON URANIUM PROSPECT Within EL 4694 and with respect to drilled out uranium deposits Base image is the 1:100,000 topographic map. View north, 1km square graticules. The Blackbush uranium deposit is ~20km southwest of Whyalla. The Lincoln Highway runs northeast to southwest across the image. Land tenure is Pastoral Leasehold title. Native Title is extinguished and Cultural Heritage continues. UraniumSA owns the land within the red-dashed outline. The Dragon uranium prospect lies ~4km west from the Western Zone, Blackbush Deposit. EL 4694 City of Whyalla The name of the prospect is taken from the small Dragon lizards that run on their back legs (commonly called Bicycle lizards) and which are abundant in the western portion of the Samphire tenement. Blue Well Dam prospect Dragon prospect UraniumSA land Blackbush deposit Plumbush deposit Dragon uranium prospect 19 February

4 GEOLOGY & MINERALISATION In its IPO prospectus UraniumSA identified high-grade mineralisation within metasomatised mylonite zones as an exploration target. Internationally and elsewhere in Australia medium to high grade uranium deposits are associated with large scale mylonite structures. Deposits of the generalised metasomatised mylonite style range from the Novokonstaninovsk deposit in Ukraine (~100,000t U 3 O 8 at ~0.16%) to the Valhalla deposit in Queensland (~6,000t U 3 O 8 at ~0.6%). As a group, deposits of the type have an average grade in the range of ~0.10% U 3 O 8. 1 The metasomatised mylonite style is frequently uranium-only, sometimes with associated lead, but without a consistent base or precious metal association. In South Australia, the Hospital uranium prospect at Port Lincoln occurs within the Kalinjala Mylonite Zone and mineralisation is typical of the style. Drill hole DDH-2 returned a cumulative down hole intercept of 3.04m at 2,990ppm U 3 O 8. 2 TRACK-ETCH Data collection and analysis The track etch detectors are "Radtrak" brand supplied and analysed by Landauer in the USA. The detection limit is 1.11 Bq/L days (the Becquerel - symbol Bq and pronounced: 'be-kə-rel - is the SI unit of radioactivity and one Bq is defined as the activity of a quantity of radioactive material in which one nucleus decays per second). Detectors are placed in the ground and left for ~20 days, recovered and returned Landauer for analysis. Raw results are reviewed by the Companies consultant and standardised for the number of days they were in the ground to mitigate the effects of atmospheric variations. The results for individual stations are given in Bq/m 3. The track-etch detectors record the presence of alpha particles from the gas radon 222 which is generated from the radioactive decay of uranium 238. All rocks contain uranium 238 and the radon 222 result from an individual station is influenced by a broad range of factors. The reported data has been statistically sorted within a population of 73 stations which were located in the area targeted for bedrock uranium and base metal mineralisation which has geologically similar cover and bedrock characteristics throughout. The repeatability of critical stations is regarded by UraniumSA as acceptable for the present purpose and the results are considered to have a high probability of reflecting a uranium source. Applicability of the method Over the last year the Company has conducted systematic trials of methods to detect uranium and base metal mineralisation below the young cover at the Samphire project. The trials have involved conventional soil sampling and assaying, targeted soils sampling and soft digest analysis. In mid-2013 the work was extended to include track etch. Several different geological targets have been investigated, including Hospital style uranium mineralisation in basement in the western part of the Samphire project (EL 4694) and sediment-hosted and granite basement hosted mineralisation styles at the Blackbush deposit. The track-etch trials have involved two sequential surveys which has demonstrated that in areas of young porous cover within the Samphire project track-etch anomalies are reproducible. Internationally, track-etch is an accepted method for the direct detection of uranium mineralisation. 1 Generalsed by UraniumSA from public domain information on the Michelin, Valhalla-Skal, Coles Hill, Lagoa Real, Novokonstaninovsk uranium deposits. 2 King, D., Woodmansee, W.C., (1956), Port Lincoln Uranium Exploration Diamond Drilling at the Hospital Prospect, Mining Review 101, p Data converted to SI units by UraniumSA Dragon uranium prospect 19 February

5 ABOUT URANIUMSA LIMITED UraniumSA is an Adelaide based explorer specialising in uranium mineralisation within a substantial portfolio of properties in South Australia s Gawler Craton. The Company has discovered sediment hosted uranium mineralisation within Exploration Licence 4979, Samphire, which is located 20km south of the industrial city of Whyalla on the eastern Eyre Peninsula in South Australia. The exploration Licence is owned and operated by Samphire Uranium Pty Ltd, a wholly owned subsidiary of UraniumSA Limited. The Samphire project contains the: Blackbush deposit with an estimated inferred resource 64.5 million tonnes of mineralisation at a bulk grade of 230ppm containing 14,850 tonnes U 3 O 8 at a 100ppm eu 3 O 8 cut-off grade (JORC 2012). Plumbush deposit with an estimated inferred resource 21.8 million tonnes of mineralisation at a bulk grade of 292ppm containing 6,300 tonnes U 3 O 8 at a 100ppm eu 3 O 8 cut-off grade (JORC 2004). The estimated mineralisation is predominantly sediment hosted in Eocene age Kanaka Beds. Exploration has discovered uranium mineralisation in other geological settings and exploration is continuing. An evaluation of mining methods to optimise the recovery of uranium from the identified resources of mineralisation is in progress. Application has been made for a Retention Lease for an in-situ recovery field trial at the Blackbush deposit. Consideration of open cut options for the sediment-hosted and granite basement hosted uranium mineralisation is underway. Through its own tenure and by joint venture UraniumSA has exploration control over what it considers the most prospective portions of the Pirie Basin. David Paterson Acting Chief Executive Officer UraniumSA Limited The exploration results mineral resources reported herein, insofar as they relate to mineralisation, are based on information compiled by Mr Russel Bluck a Director of UraniumSA Limited and Member of the Australian Institute of Geoscientists with sufficient experience relevant to the style of mineralisation and type of deposits being considered, and to the activity which is reported to qualify as a Competent Person as defined by the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code, 2012 Edition). Mr Bluck consents to the inclusion in the report of matters based on his information in the form and context in which it appears. It should be noted that the abovementioned exploration results are preliminary. Dragon uranium prospect 19 February

6 Table 1 Checklist of Assessment and Reporting Criteria JORC TABLE 1 Section 1 Sampling Techniques and Data Criteria Explanation Comment Sampling techniques Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. Aspects of the determination of mineralisation that are Material to the Public Report. In cases where industry standard work has been done this would be relatively simple (eg reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay ). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information. The results reported are from track-etch surveys Track etch detectors are "Radtrak" brand supplied and analysed by Landauer in the USA. The detection limit is 30pCi/L days (i.e Bq/L days). Detectors are placed in the ground and left for ~20 days, recovered and returned to Landauer for analysis. Raw results are reviewed by the companies consultant and standardised for the number of days they were in the ground to mitigate the effects of atmospheric variations. The results for individual stations is given in Bq/m3 Data has been statistically sorted within a population of 73 stations which were located in the terrain targeted for bedrock uranium and base metal mineralisation. The terrain has geologically similar cover and bedrock characteristics throughout. Repeatability of critical stations is regarded as acceptable for the present purpose and the results are considered to have a high probability of reflecting a uranium source. Drilling techniques Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc). A hand auger was used to set the track-etch detector cups at a uniform depth of 30cm below surface. Drill sample recovery Method of recording and assessing core and chip sample recoveries and results assessed. Measures taken to maximise sample recovery and ensure representative nature of the samples. Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material. Not relevant, no drilling/sampling. Dragon uranium prospect 19 February

7 Logging Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. The total length and percentage of the relevant intersections logged. A qualitative record of surface and immediate sub-surface materials was kept. Sub-sampling techniques and sample preparation If core, whether cut or sawn and whether quarter, half or all core taken. If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. For all sample types, the nature, quality and appropriateness of the sample preparation technique. Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling. Whether sample sizes are appropriate to the grain size of the material being sampled. Not relevant, no sub-sampling. Quality of assay data and laboratory tests The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established. Track-etch detectors record the presence of alpha particles derived from the gas radon 222 which is a product of the radioactive decay of uranium 238. All rocks contain some uranium 238 and the radon 222 result from an individual station can be influenced by a broad range of factors. Track-etch results collected for exploration are relative and not absolute values. Results are interpreted in the context of the statistics of the sample population. Verification of sampling and assaying The verification of significant intersections by either independent or alternative company personnel. The use of twinned holes. Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. Discuss any adjustment to assay data. Two stations within the reported data were repeated and returned values within an appropriate statistical range. The track-etch detectors were placed and recovered by the UraniumSA field team. Relevant variables were recorded in hard copy in the field (date, time, conditions etc) and transcribed to electronic formats. Dragon uranium prospect 19 February

8 Location of data points Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. Specification of the grid system used. Quality and adequacy of topographic control. Station locations are captured by hand-held GPS. AMG Zone 53. GDA 94. Station locations are at a relatively constant elevation and topographic correction is not required. Data spacing and distribution Data spacing for reporting of Exploration Results. Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. Whether sample compositing has been applied. The data reported was collected at 100m intervals along lines with a northsouth separation of 100m. The station separation used is sufficient for the purpose of exploration reporting. Orientation of data in relation to geological structure Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material. The sample pattern was established to generate profile data across magnetic stratigraphy which is interpreted as reflecting underlying bedrock geology. The sampling was to confirm results from previous stations located above an AEM conductor. Sample security The measures taken to ensure sample security. Track-etch stations were located in a relatively isolated area on land owned by UraniumSA. There are no indications that they were disturbed in any way. Commercial services were used to deliver the track-etch detectors to the laboratory for analysis. Audits or reviews The results of any audits or reviews of sampling techniques and data. UraniumSA have been conducting trials of the track-etch system at Samphire for nearly a year. In-house QA/QC is applied to data collection, processing and recording. Section 2 Reporting of Exploration Results (Criteria listed in the preceding section also apply to this section.) Criteria Explanation Comment Mineral tenement and land tenure status Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, Dragon uranium prospect 19 February The Dragon prospect is contained within EL 4979 held by Samphire Uranium Pty Ltd, a wholly owned subsidiary of UraniumSA Ltd.

9 partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area. The Dragon prospect is located on Pastoral Leasehold land owned by Samphire Uranium Pty Ltd. No national parks or conservation reserves are located within the tenement. UraniumSA is not aware of any impediments to exploration or renewal of tenure. Exploration done by other parties Acknowledgment and appraisal of exploration by other parties. The Dragon prospect is a new discovery. Soil geochemical exploration across the area by previous tenure holders did not identify the prospect. Geology Deposit type, geological setting and style of mineralisation. The prospect is a coincident track-etch and AEM geophysical anomaly. The likely source of the anomalism is considered to be uranium mineralisation within metasomatised mylonite rocks. Drill hole Information A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: easting and northing of the drill hole collar elevation or RL (Reduced Level elevation above sea level in metres) of the drill hole collar dip and azimuth of the hole down hole length and interception depth hole length. If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case. Not applicable. No drilling/sampling. Data aggregation methods In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated. Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. The assumptions used for any reporting of metal equivalent values should be clearly stated. Not applicable. Isolated point data is being reported. Dragon uranium prospect 19 February

10 Relationship between mineralisation widths and intercept lengths These relationships are particularly important in the reporting of Exploration Results. If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg down hole length, true width not known ). Not applicable. The reporting is of anomalism at surface, there are no intercept lengths. Diagrams Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views. The body of text contains a location map, a plan of the track-etch stations being reported, and a cross section of the track-etch and AEM data. Balanced reporting Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results. The reporting is of relevant exploration results at the Dragon prospect. Information is reported only for the 30 stations at the Dragon prospect. Exploration is ongoing and data and results continue to be evaluated. Other substantive exploration data Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances. There has been no substantive prior exploration by third parties relevant to the Dragon prospect. All UraniumSA work relevant to the Dragon prospect is reported. Further work The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling). Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive. Future work will focus on the delineation and testing of mineralised positions within the anomalous zone at the Dragon prospect. The Dragon prospect is a new discovery and the possible extensions and geological interpretations are still being investigated. Dragon uranium prospect 19 February