7 April 2008

Agreement to Proceed in Ukraine

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Meetings were held in Kiev on 3^rd and 4^th April with the Ministry of Fuel and Energy of Ukraine, at which a plan was agreed to carry forward evaluation and development of the Novogurevskoye and Surskoye uranium projects. A timetable for completion of data exchange, data review, and finalisation of a joint venture activity agreement has been established.

The political situation in Ukraine has stabilised with the appointment late in 2007 of a new government. The Government has strongly expressed its intention to encourage foreign investment and the Minister for Fuel and Energy has taken the decision to facilitate foreign investment in uranium exploration and mining. The Minister has issued a decree ordering the Ministry to prepare the conditions for such foreign investment and these conditions have been sent to the Cabinet of Ministers for approval. Uran Limited expects to receive and accept the conditions during April 2008.

The Ministry has been authorised to expedite implementation of Uran’s interests under a previously announced protocol, which allows Uran to complete a final feasibility study of the Novogurevskoye and Surskoye uranium projects. If the study is positive Uran and state uranium mining enterprise VostGOK will form an unincorporated joint venture to mine the deposits.

The parties plan to complete the exchange of technical information, and to finalise the joint venture activity agreement for Novogurevskoye and Surskoye, in April and May 2008. This will be followed by a visit to Australia by senior representatives of the Ministry of Fuel and Energy and VostGOK.

Discussions are also underway on possible participation by Uran in other uranium exploration and mining projects in Ukraine. Uran has undertaken to prepare a proposal on participation in a consortium to acquire a 50% interest in the large underground Novoconstantinovskoye uranium mine. 

Kate Hobbs

Managing Director

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Issued by

Purple Communications

Level 3, 28 Kings Park Road, WEST PERTH WA 6005

Ph: 08 9485 1254     Fax: 08 6263 0455

purple@purplecom.com.au