Hathor Exploration Limited Letter to Shareholders by 24hgold

Friday, October 14, 2011

Letter to Shareholders

Dear Hathor shareholder,

I wish to provide you with an update on Hathor. The Hathor board of directors continues to recommend you reject Cameco's unsolicited offer. To REJECT the offer, DO NOT DO ANYTHING.

As I am sure you are aware, Cameco launched its unsolicited hostile offer for your company on August 30, 2011, offering a price of $3.75 per share.. Cameco's representatives are contacting Hathor shareholders, urging you to tender your shares to the offer in order to acquire your company. The board of directors has carefully reviewed the offer in consultation with the special committee of its independent directors and with its financial and legal advisors and we unanimously recommend that you REJECT this offer.

We are therefore asking you to continue to show your disapproval of the offer by NOT tendering your shares to the offer. To REJECT the offer, TAKE NO ACTION; you don't need to do anything. If Cameco does not obtain sufficient shares of Hathor, its offer automatically fails. If you have already tendered your shares to the offer, you may still withdraw them before the October 31st expiry. If you wish to withdraw your deposited shares, or wish to obtain any other information, please contact our information agent, Phoenix Advisory Partners, at 1-800-243-1162.

If you are still undecided about the Cameco offer, let me once again provide you with a few of the principal reasons for the board of directors' unanimous recommendation to Hathor's shareholders to REJECT the offer and NOT TENDER your shares to the offer:

Predatory - The offer was announced prior to Hathor's planned release of the first independent preliminary economic assessment for the Roughrider uranium deposit and the completion of the anticipated mineral resource estimate for the Far East zone. Therefore, the offer was made prior to Hathor being able to disclose important information regarding the size and value of the Roughrider uranium deposit;
Opportunistic - the offer seeks to take advantage of the current weakness in both global commodity prices and the weak uranium sector following the events in Fukushima;
Inadequate - the offer significantly undervalues the world class Roughrider uranium deposit and fails to recognize the strategic importance of the Athabasca Basin, as the preeminent high grade uranium exploration and mining district in the world; and
Discounted - the offer is well below the average premium of recent precedent unsolicited transactions in the mining industry, a discrepancy reinforced by Hathor's current share price which is and has been consistently above the offer price since the hostile bid was announced.

The board of directors continues to explore strategic alternatives to increase shareholder value so there is no pressing need to tender your shares to Cameco. We have sufficient funding to continue to advance our assets, including both Roughrider and other advanced-stage exploration programs..

Thank you for your ongoing support of Hathor. We greatly appreciate the support from our investors throughout this process. Again, we urge you to continue to DO NOTHING in order to REJECT Cameco's offer. If you require any other information, please visit our website at www.hathor.ca or www.MaximizingHathorsValue.ca.

Sincerely,

Michael H. Gunning, PhD, PGeo
President & Chief Executive Officer

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