Amer Lake

Amer Lake

The Amer Lake project is located 145 kilometres north of Baker Lake, Nunavut, and 70 kilometres northwest of an all-season road that connects the Meadowbank gold deposit to the community of Baker Lake which is on tide water. Amer Lake is a shallow, low-grade, high-tonnage sandstone hosted uranium deposit within the Proterozoic Amer sedimentary basin. In 2011, UNR updated a 43-101 compliant resource calculation based on 62 drill holes totaling 2,285 metres. At a base cut-off of 0.01% U3O8 the resource is estimated to be 20.9 million pounds U3O8 (22,948,000 tonnes averaging 0.041% U3O8). The deposit remains open to the south and to the west. Several uranium showings occur within the property including Faucon, Main Amer East, PTY and Horned Lake. The potential for structurally controlled high grade uranium mineralization remains valid. UNR holds a 100% interest in certain claims subject to a 2% gross overriding royalty ("GOR") in respect of diamonds, a 5% royalty on uranium production and a 2% net smelter returns royalty ("NSR") in respect of other metals.

Amer Lake

The claims are subject to a 3% royalty on uranium payable to MPH, of which UNR may purchase two thirds of this royalty for total cash payments of $2,000,000. In addition, the permits are also subject to a 2% NSR, a 3% royalty on uranium and a 2% GOR on diamonds, all payable to Diamonds North, a company related by virtue of directors in common.