ABN 61 119 966 353 17 June 2008 ASX RELEASE KURUNDI PROJECT EXPANDED TO INCLUDE PHOSPHATE Northern Uranium Limited (ASX: NTU) will immediately commence an investigation of phosphate potential at its Kurundi project in the Northern Territory, following a new farm-in and joint venture heads of agreement with tenement holder Washington Resources Ltd (ASX: WRL). The northeastern part of the Kurundi tenements lies within the Georgina Sedimentary Basin which hosts several major phosphate deposits, including Duchess and D Tree in Queensland and Alexandria, Alroy, Highland Plains and Wonarah in the Northern Territory (Figure 1). Under the new heads of agreement with Washington, Northern Uranium will undertake an investigation of the possibility of phosphate and uranium co-existing in commercially interesting concentrations in the Georgina Basin sediments, and also explore directly for rock phosphate deposits. Executive Chairman Kevin Schultz said the agreement followed dramatic increases in the world market price of rock phosphate. Rapidly rising global demand for rock phosphate has driven prices from US$50/tonne a year ago to more than US$200/tonne, making phosphate an attractive exploration target, Mr Schultz said. At Kurundi we have granted tenure in the Georgina Basin in conjunction with Washington Resources with 50km of potentially phosphate-bearing sediments to investigate. Northern Uranium has also applied for 2,900km 2 of new exploration licences only 50km from Wonarah and covering the same favourable sedimentary strata, Mr Schultz said. Farm-In The farm-in and joint venture heads of agreement with Washington recognises that whilst Northern holds uranium rights, Washington holds the rights to all other commodities in Kurundi tenements including phosphate. Under the terms of the new heads of agreement, Northern is allowed a maximum two years to earn 60% interest in phosphate mineral rights by sole funding a $250,000 exploration program including reconnaissance mapping and sampling, followed by widely-spaced drilling in areas determined prospective for phosphate (Figure2). Joint Venture Should Northern earn a 60% interest in rights to phosphate within the Kurundi tenements, Washington may either contribute to maintain a 40% interest or elect to dilute to a 20% interest allowing Northern to earn a further 20% through the completion of a pre-feasibility study or the expenditure of another $1,000,000, whichever is the greater. Should Northern reach an 80% interest in rights to phosphate within the Kurundi tenements, Washington may elect to contribute to maintain a 20% interest or elect to be diluted pro-rata until Northern reaches 90% interest, at which time Washington may elect to exchange its interest for a 2% royalty.
2 Uranium Exploration The Kurundi project, located 100 km southeast of Tennant Creek, has a primary focus on the historic high grade Munadgee uranium mine which unofficially produced 3,000 tonnes of ore at an average grade of 10 pounds / tonne (5 kg/t) of U 3 O 8. RC drilling along strike from Munadgee in the December 2007 quarter encountered broad zones of anomalous gamma radiation values, particularly in the holes closest to the old mine workings and these are to be followed up this year. As regards the proposed investigation of the possibility of phosphate and uranium co-existing in commercially interesting concentrations in Georgina Basin sediments at Kurundi, the occurrence of uranium within phosphate rock deposits is well known. Uranium resources in Morocco's phosphate deposits, for example, have been estimated by the International Atomic Energy Agency to be around 6 million tons, which corresponds to twice the world's resources in uranium deposits (Areva press release October 23, 2007). While uranium is presently only extracted from phosphate rock on a limited scale, the increasing price of phosphate rock and uranium is making it increasingly economically attractive to consider such potential. About Northern Uranium Northern Uranium Limited (ASX:NTU) is a uranium development company with large and prospective projects in Western Australia (WA) and the Northern Territory (NT). The Company s long term strategy is to develop high grade uranium projects, through targeted exploration across its current tenement base, and acquisition of complementary uranium prospects, both within Australia and offshore. The current primary focus is the Gardiner-Tanami Super Project, comprising some 11,700 km 2 in the Granites-Tanami region of WA and the NT. Geologically, the Gardiner-Tanami Super Project area compares favourably with both the Alligator Rivers region in the NT and the Athabasca Basin in Canada, the latter being host to the world s highest-grade unconformity-related uranium deposits. Northern Uranium has a strategic alliance with the major French nuclear group, Areva NC, via its wholly owned subsidiaries, Areva NC Australia Pty Ltd (Areva) and Afmeco Mining and Exploration Pty Ltd (Afmex). Afmex is the operator of uranium exploration and development of the Gardiner-Tanami Super Project. Areva will also market any uranium produced by Northern Uranium, and has a substantial shareholding in Company. For and on behalf of NORTHERN URANIUM LIMITED Kevin Schultz Executive Chairman
3 Competent Person Declaration The information in this report accurately reflects information prepared by competent persons (as defined by the Australasian Code for Reporting of Mineral Resources and Ore Reserves). It is compiled by Mr K Schultz, an employee of the Company who is a Fellow of The Australasian Institute of Mining and Metallurgy with the requisite experience in the field of activity in which he is reporting. Mr Schultz has sufficient experience which is relevant to the style of mineralisation and the type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Schultz consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. INVESTOR INFORMATION Principal Office: 2nd Floor, 7 Havelock Street West Perth WA 6005 PO Box 669 West Perth WA 6872 Tel: 08 9481 2344 Fax: 08 9481 5929 Email: info@northernuranium.com.au Web: www.northernuranium.com.au Capital Structure: Share Price (NTU): 33 Issued Shares: 50.6m Market Cap: $16.7m Company Management: Kevin Schultz Executive Chairman Adrian Griffin - Non executive Director Bob Hair - Non executive Director Colin McCavana - Non executive Director Philippe Portella - Non executive Director Robin Wilson General Manager Richard Webb CFO & Company Secretary
Figure 1 Cambrian Phosphatic Sedimentary Strata in Northern Territory and Queensland
Figure 2 Kurundi Phosphate Target Areas