Uranium One to Place Dominion Operations on Care and Maintenance

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[{"type":"text","content":"\n\n\n\nTrading Symbols: UUU - Toronto Stock Exchange, JSE Limited (Johannesburg\nStock Exchange)\n\n\nVANCOUVER, BC and JOHANNESBURG, South Africa, Oct. 22 /CNW/ - Uranium One\nInc. ("Uranium One") today announced that its board of directors has decided\nto place the Dominion Uranium Project on care and maintenance.\n\n\nThe decision to place Dominion on care and maintenance reflects the\nsignificant deterioration in the Project's economics associated with the\ncontinuing decline in uranium prices over the last year and significant\ninflation-related increases in Project costs, together with a slower than\nexpected ramp-up in development and production.\n\n\nThe decision follows the completion of the Company's detailed life of\nmine planning process and budget for the Project, which has shown that the\nProject would require a sustained recovery in uranium prices, as well as\nsignificant additional capital investment, in order to become economically\nviable. While the longer term fundamentals of the uranium market remain\nattractive, Uranium One is not able, in light of current credit and general\nmarket conditions, to incur the required additional capital investment at this\ntime.\n\n\nIn accordance with the requirements of applicable South African\nlegislation, Uranium One has initiated consultations with the National Union\nof Mineworkers and Uranium One's joint venture partners with regard to today's\ndecision and will be providing notification thereafter to the South African\nregulatory authorities. In the meantime, Uranium One will be exploring\nstrategic alternatives available to it at Dominion, including a sale or other\ndisposition of its interest in the Project and, absent any improvement in\nProject economics, the potential closure of the Project.\n\n\nUranium One expected to produce 1.1 million pounds U(3)O(8) from Dominion\nin 2009; revised production guidance for the Uranium One group will be\nprovided with the Company's third quarter financial results in mid-November\n2008. Uranium One is in the process of assessing the values at which the\nDominion assets are carried in its financial statements.\n\n\nUranium One's consolidated cash balance as at September 30, 2008 of\nUS$99 million, together with the US$65 million subsequently drawn under\nUranium One's Canadian credit facility, will provide Uranium One...

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