The price of spot uranium fell US$0.50 this week to US$42.00/lb U3O8, while the long-term

price remained at US$62.00/lb U3O8. According to Ux Consulting, the market remains soft, but demand is expected to begin to

pick up in H2/10 as it did during the same period the year before, also considering that at US$42.00/lb the uranium price is at an

important support level. Aside from this, the sector appears poised to go nuclear with M&A activity. A number of senior

uranium producers have significant cash balances and have expressed their desire to make acquisitions. Casting about for

industry-leading companies that could easily be takeout candidates, Canaccord Adams came up with four names:

Deep Yellow

(DYL : ASX)

Rössing South

and west of

) Langer Heinrich; Extract – now that the company’s share price has backed off

dramatically;

Ur-Energy

(URE)

– getting closer and closer to successful permitting of its Lost Creek in situ uranium mine in Wyoming. Given the future