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1 ASX RELEASE 12 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 Director s Statement WIGETTY ilmenite-magnetite-phosphate prospect UraniumSA Limited (ASX: USA) has today announced a maiden Exploration Target at the Wigetty titanium-iron-phosphate prospect of up to 230 million tonnes of potentially open-pit mineable mineralisation within the Company s Muckanippie project in northern South Australia (ASX 12 February 2014). The Directors consider that Wigetty is a significant exploration and development opportunity for the Company and shareholders. It provides excellent upside value opportunity and diversity to our commodity portfolio. UraniumSA has created its existing assets through the discovery of significant uranium mineralisation in its Samphire project, south of Whyalla on the Eyre Peninsula. While the Company s focus remains on the future development of its flagship Blackbush uranium deposit at Samphire the uranium commodity markets are challenging over the near term. Wigetty now presents UraniumSA with an opportunity to create new assets of value by investigating it as a multi-commodity prospect and development opportunity. The Muckanippie project which contains the Wigetty prospect was acquired at the time of UraniumSA s initial listing on ASX. The tenement covers a large portion of the Muckanippie Anorthosite Complex (MAC); internationally such structures contain major deposits in a range of metals and commodities (base metals, titanium). Our early exploration in the area was for sediment-hosted uranium. Ongoing work has been exploration for copper-nickel mineralisation associated with magnetic features interpreted as potential basin/dome closures in differentiated mafic rocks the analogy has been with the eye structures associated with the Nova nickel discovery in Western Australia (Sirus Resources Ltd, ASX: SIR). Wigetty is a known prospect centred on a pronounced geophysical anomaly which has previously been explored with a single commodity focus (iron ore or ilmenite). UraniumSA recently initiated a data mining and interpretation exercise to examine the mineralisation in its full geological context and it quickly became apparent that Wigetty is a highly prospective multi-commodity opportunity. Integration of the available geology, geophysics, petrology and assay data lead to the estimation of an Exploration Target (ASX 12 February 2014). Directors Statement Wigetty ilmenite-magnetite-phosphate prospect 1

2 The intention of this document is to give shareholders an overview of the Wigetty prospect considering its geology, mineralisation, and the exploration and development opportunities which it presents. This statement of the opinion of the Directors is largely technical in nature and while the Company has attempted to explain and provide context for the statements and information individual shareholders and investors must seek their own advice if they need assistance to understand the material and its implications. THE WIGETTY PROSPECT LOCATION and LOGISTICS The Coober Pedy Tarcoola district in South Australia has for many years now been a focus for mineral discovery and mine development. Operating mines range from the globally significant and well established Olympic Dam and Prominent Hill mines working IOCGU mineralisation, through to the more recently established Cairn Hill and Peculiar Knob iron ore mines which truck their product ~60-80km to the Adelaide - Darwin broad-gauge rail corridor. The Wigetty prospect is located on the western margin of Exploration Licence It is only 44km west of the Adelaide-Darwin broad gauge rail infrastructure corridor and well positioned for any development. The license is within the Woomera Prohibited Area (WPA) south of the Defence Periodic Use Zone 2 corridor. UraniumSA has a Deed of Access for exploration and mining for the WPA and a current PEPR (Program for Environment Protection and Rehabilitation) issued by DMITRE (Department for Manufacturing, Innovation, Trade, Resources and Energy). Directors Statement Wigetty ilmenite-magnetite-phosphate prospect 2

3 THE UPSIDE Wigetty mineralisation comprises ilmenite (a titanium mineral), magnetite (an iron ore mineral) and apatite (a phosphate mineral). The best mineralisation is contained in a metamorphic host rock within the basal contact zone of the Muckanippie Anorthosite Complex. The nature of the host rock and of the mineralisation has a potentially critical influence on the mining and milling required to produce saleable products. The Wigetty prospect Exploration Target tonnes and grade range estimates (ASX Maiden Exploration Target - Wigetty 12 February 2014) indicate the possibilities for the future development of a long-life project. Given the shallow depth to mineralisation, the significant tonnages and grades estimated and the nature of the mineralisation the prospect will be evaluated as an open-cut operation producing ilmenite, magnetite and apatite concentrates. Certainly, there is considerable work to be done to increase the level of information and grow the confidence in the numbers to the point where JORC estimates for mining operations can be made but the Company is confident that there are excellent chances that this can be achieved. The opportunity presented by the Wigetty prospect has to be appraised in the context of other hard rock ilmenite mines and prospects round the world. Internationally, there are two hard rock high grade ilmenite mines in anorthosite complex rocks, and a number of large tonnage low to medium grade deposits in similar intrusive systems which are being assessed for development. The mineralisation in these deposits is an integral part of the igneous host rocks and they therefore have different geological, mining and metallurgical characteristics to the metamorphic hosted Wigetty mineralisation and it is these differences which may provide an economic advantage at Wigetty. INTERNATIONAL MINES and PROSPECTS Current ilmenite production from hard-rock mining comes from deposits within layered mafic anorthosite complexes which are geologically similar to the MAC (Muckanippie Anorthosite Complex). The significant mines and prospects occur within the Grenville Province in North America and in the equivalent Rogaland Anorthosite Province in Norway. There are two open cut operations, Lac Tio and Tellnes, both mining high grade ores. The Tellnes deposit, Rogaland Anorthosite Province, Norway, is a body of un-metamorphosed ilmenite-rich norite containing ~30% ilmenite. The Lac Tio deposit, in the Harve-Saint-Pierre anorthosite complex, Grenville Province, Quebec Canada, is a body of very high grade ilmenite ore which is mined and transported by rail and ship some ~800km to a metallurgical processing facility. There are two advanced proposed open cut operations, both in Canada, investigating mining bulk mineralised hard rock material within igneous anorthosite complex rocks; both are targeting phosphate (apatite) production, apparently without co-product. The Lac a Paul project in the Lac-Saint-Jean Anorthosite Suite, Quebec, is planning to mine primary igneous rock to produce phosphate as apatite (average grade 6.9 % P 2 O 5 at a 3.5% cut-off) - refer to Similarly, the Arnaud project in the Sept-Îles Anorthosite Complex, Quebec, is planning to mine un-metamorphosed, mafic intrusive rocks to produce phosphate as apatite (average 4.18% P 2 O 5 at a 1.76% cut-off). refer to Directors Statement Wigetty ilmenite-magnetite-phosphate prospect 3

4 A typical undeveloped prospect of the igneous type is the Bjerkreim-Sokndal Intrusion in Norway, an un-metamorphosed mafic complex within the Rogaland Anorthosite Province, estimated to contain % ilmenite, % P 2 O 5, and % magnetite refer to In all of these anorthosite igneous complex type deposits, concentration of ilmenite-magnetite-apatite has resulted from magmatic differentiation of mafic magmas within broader anorthosite complexes. The massive high grade, coarse grained ores of Lac Tio and Tellnes are rare. Large tonnage medium grade deposits are relatively common and better grades are often associated with fine to very fine grain sizes. WIGETTY Regional geology The Wigetty prospect comprises gabbro intruded into granulite metamorphic rocks along the interpreted outer basal margin of the Muckanippie Anorthosite Complex. There are two mineralised rock types at the Wigetty prospect, gabbro and granulite. Gabbro is a component of the broad Muckanippie Anorthosite Complex. Internationally, anorthosite complex are host to a variety of important deposits ranging from the large Voisey Bay nickel deposit in Canada through to the ilmenite mines discussed herein. UraniumSA is conducting copper-nickel exploration across the Muckanippie tenement and is presently completing soil geochemical surveys at the Satisfaction Bore and White Nose Bore prospects. Other companies are actively exploring in the immediately surrounding areas. Directors Statement Wigetty ilmenite-magnetite-phosphate prospect 4

5 Granulite is a metamorphic rock which forms from a variety of pre-existing rocks under high pressure, high temperate, anhydrous conditions. These conditions were potentially present at the base of the anorthosite complex when the gabbro was intruded and are assumed here to have led to the formation of the Wigetty granulite from an iron-rich sedimentary protolith (the rock which was metamorphosed into the granulite). Wigetty Geology There is limited bedrock outcrop at the Wigetty prospect. While minor ilmenite mineralised outcrop has been mapped and sampled the majority of the prospective area is below ~19m of saprolite cover. Mineralisation is known from outcrop sampling and drilling over ~1.2km of strike and the geophysics indicates that it can be projected out to ~2.5km at reasonable levels of confidence The Wigetty prospect is located on an airborne magnetic anomaly and has a coincident gravity anomaly. The best-fit to the geophysical, geological and drilling data is of northeast trending, steeply east dipping complex of gabbro bodies and granulite metamorphic rocks. This complex is divisible into a Western Granulite Zone (WGZ) corresponding to the peak aeromagnetic response, with separate Central Granulite Zone (CGZ) and gabbro bodies. Geological Interpretation Wigetty prospect Magnetic contour map is a Helimag survey reported by Aztec. The coloured outlines are interpretations of the geology by UraniumSA. EL 5195 Marmota Energy Ltd western basal zone of the MAC Blue line is the position and extent of the composite profile (next page). Purple dashed line is the EL. The cross-hatched area has been excluded from the estimation of an Exploration Target. Western Granulite Zone Gabbro Gabbro Central Granulite Zone Plan view, north to top, graticules are 500m An interpretive Composite Profile through the Wigetty Prospect is shown on the next page. EL 4694 UraniumSA Ltd cross-cutting terminating structure Directors Statement Wigetty ilmenite-magnetite-phosphate prospect 5

6 Wigetty Composite Profile Drill hole profiles central line is the geology from Iluka field logs left side is %TiO2, orange >5% right side is %Fe, orange >20% Section 315AMG perpendicular to strike. Scale as shown. No vertical exaggeration. TA0001 TA0002 TA0003 TA0004 TA0005 TA0006 Western Granulite Zone Central Gabbro Central Granulite Zone Eastern Granulite Zone Unscaled magnetic profile from Iluka ground survey data, refer to the section line and plan location below Geological shapes interpreted by UraniumSA from drill logs and the Iluka geophysical interpretation Wigetty Mineralisation The minerals of potential economic interest (ilmenite, magnetite and apatite) have been identified in thin section of drill chip samples of both granulite and gabbro. Assay data from drilling is consistent with this petrology. All three minerals are potentially capable of being concentrated into commercially saleable products and the prospect is therefore being appraised as a multi-commodity play to market an ilmenite concentrate, a magnetite concentrate, and a phosphate (apatite) concentrate. The Wigetty gabbro is an integral component of the broader anorthosite complex. Petrographically, the igneous gabbro is equigranular with a mm grain size. Ilmenite is described and estimated 1 as a minor component of the entire rock, no magnetite was recorded, and apatite is an accessory component. The estimated bulk grade of gabbro intersected in drilling is 4% ilmenite, 7% magnetite, 1.9% apatite. The petrology and mineralisation of the gabbro is typical of an anorthosite mafic complex. The Wigetty granulite is a high temperature, high pressure metamorphic rock. Petrographically, it is a magnetite olivine pyroxene granulite with an aligned and in-equigranular fabric. The olivine is ironrich indicating that it is probably derived from an iron-rich sediment, not from an intrusive component of the broader anorthosite complex. Ilmenite is described and estimated as a major component of the entire rock, magnetite as a major component, and apatite as an accessory. The estimated bulk grade of the Western Granulite Zone intersected in drilling is the same as the bulk grade of the Exploration Target (ASX 12 February 2014), namely 11% ilmenite (range 9.9% to 12.3%), 13% magnetite (range 11.4% to 14.0%), 2.5% apatite (range 2.3% to 3.1%). It has a Directors Statement Wigetty ilmenite-magnetite-phosphate prospect 6

7 distinctive petrology and mineralisation which differentiates it from the intrusive anorthosite mafic complex styles. 1 Note. In petrology the constituent minerals of the rock being described are often visually semi-quantitatively estimated in decreasing order of abundance. The rankings used here range in decreasing order from major, through dominant, accessory, minor to trace: the absence of some minerals is noted where it is potentially important. The Wigetty granulite is not a single homogeneous rock type but can be differentiated into a well mineralised Western Granulite Zone and to the east a less mineralised granulite and gabbro. A scatterplot of iron and titanium drill assay data 2 shows that the data for the Western Granulite Zone forms a distinct cluster (holes TA0001,0002, 0003) which is clearly differentiated from the data for granulite bodies to the east (TA0005, 0006) and the gabbro (TA0004). Relationship between titanium and iron in Wigetty lithologies Western Granulite Zone cluster 2 Note. The TiO2 number is the outcome of a geochemical reporting convention which converts assay determined Ti metal to TiO2 it should not be interpreted to imply that the metal is present as rutile (which has a composition of TiO2). Because petrology has identified ilmenite as the dominant titanium mineral in the granulite UraniumSA has elected to convert the assay values to ilmenite assuming a normal stoichiometric composition (which is supported by the available data). Similarly, the FeO number used here is a geochemical convention conversion from assayed metal. On the basis of the available information UraniumSA has estimated magnetite content from the assayed metal content by apportioning a stoichiometric portion to ilmenite and assuming that the remaining metal is equally distributed between silicate minerals (such as olivine) and magnetite. The conventions and conversions are constant factors and do not affect the distribution patterns. Directors Statement Wigetty ilmenite-magnetite-phosphate prospect 7

8 In many metal and other deposits the best grades are located along a deposit footwall. There is a pattern of grade distribution at Wigetty which offers an opportunity to discover a higher-grade zone of mineralisation. Within the Western Granulite Zone at Wigetty there is a clear increase in the bulk grade (length weighted average) from east-to-west towards the interpreted structural footwall. West Central East Hole ID TA0001 TA0002 TA0003 Ilmenite 12.3% 10.9% 9.9% Magnetite 14.0% 13.7% 11.4% Apatite 3.0% 2.6% 2.3% This relationship is apparent in the composite geological-geophysical profile (previous) and will be a focus of attention in the early exploration. Physical characteristics of the Wigetty host rock In all hard rock operations the physical characteristics of the mineralised rock has a significant impact on the mining and metallurgical inputs and cost of production. The petrographic information on the host rocks at Wigetty from drill chips indicates that while the gabbro is essentially similar to the host rock in other mafic-hosted deposits, the granulite which contains the majority of mineralisation has significantly different characteristics. The gabbro has an equigranular fabric with a mm grain size. There are no clear penetrative micro-structures and the rock will almost certainly have isotropic strength characteristics (equal in all directions). The mining, crushing/grinding characterises can be expected to be typical for an igneous rock type. Photomicrograph of a polished thin section of gabbro from the Wigetty prospect. source: ENV06924 SARIG database Directors Statement Wigetty ilmenite-magnetite-phosphate prospect 8

9 The granulite has a clearly aligned in-equigranular fabric with oblique apparently penetrative microfractures. The rock will have anisotropic strength characteristics potentially preferentially fracturing along the mineral fabric and/or micro-fractures. The mining, crushing/grinding characterises cannot be estimated but the metamorphic granulite may well be significantly weaker than the igneous gabbro. Photomicrograph of a polished thin section of granulite from the Wigetty prospect. Mineral fabric aligned top-left to lower-right. Micro-fracture fabric aligned lower-left to upper-right source: ENV06924 SARIG database PRODUCTS AND MARKETS The investigation is proceeding on the assumption that three concentrate products will be produced and bulk shipped to market on the Adelaide-Darwin broad gauge rail infrastructure. Ilmenite Almost all ilmenite is processed into non-toxic titanium dioxide (the mineral form of which is rutile), a white pigment for use in the manufacture of paints, fibreglass, plastics, paper, ink, rubber, textiles, cosmetics, leather and ceramics. Titanium metal is strong, corrosion-resistant and light and is used in aircraft, spacecraft, motor vehicles, desalination plants and surgical implants. Magnetite Is an increasingly important feedstock for steel production. Magnetite concentrate is currently being mined at Cairn Hill (refer to map page 2) railed to Port Adelaide and exported to China. Apatite Apatite in various forms is the phosphate mineral used as a feedstock for the manufacture of highanalysis agricultural fertilizers. There is a relatively small but growing market for direct-application mineral based fertilizers. Directors Statement Wigetty ilmenite-magnetite-phosphate prospect 9

10 CONCLUSION The Wigetty prospect has all of the features required for a high quality exploration and development opportunity. It has: 1. Large tonnage potential. 2. Good bulk grade and the possibility of identifying areas of significantly higher grade. 3. Host rock characteristics differentiate it from its international peers and have the potential to deliver favourable mining and milling performance. 4. The potential to produce saleable concentrates of ilmenite, magnetite and phosphate (apatite). 5. A good location for development with several relatively new operations in the area producing bulk concentrates which are exported using existing infrastructure. The immediate work plans for the exploration and development of Wigetty are given in the ASX release Maiden Exploration Target - Wigetty 12 February CAUTIONARY STATEMENT This document is based on information provided in ASX release Maiden Exploration Target - Wigetty 12 February All of the information used and relied on in the ASX release and in this statement is based on third party work recovered from ENV09625 and available from the SARIG web site. The raw data has been not been generated by UraniumSA none of it can be duplicated or otherwise verified by the Company. The methods adopted and the assumptions used by UraniumSA in this document are the same as those described in the ASX release Maiden Exploration Target - Wigetty 12 February 2014 which should be referred to if additional information is required. Directors Statement Wigetty ilmenite-magnetite-phosphate prospect 10

11 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. Directors Statement Wigetty ilmenite-magnetite-phosphate prospect 11