Uranium One Inc.Vancouver, B.C., TSX : UUU,JSE : UUU,is a Canadian uranium corporation engaged through subsidiaries and joint ventures in the mining and production of uranium, and in the acquisition, exploration and development of properties for the production of uranium, in Kazakhstan, South Africa, the United States, Australia and Canada.

The Corporation is in the process of disposing of its remaining 36% interest in Aflease Gold Limited (“Aflease Gold”), which is engaged in the development of the Modder East Gold Project in South Africa.

Uranium One owns through the Betpak Dala Joint Venture a 70% interest in both the producing Akdala Uranium Mine and the South Inkai Uranium Project, which is being commissioned.

The Kharasan Project in Kazakhstan, in which the Corporation owns a 30% interest, is being developed by the Kyzylkum Joint Venture.

In the United States, the Corporation owns projects in the Powder River and Great Divide Basins in Wyoming.

The Corporation has suspended operations at its Dominion Project in South Africa and placed it on care and maintenance while evaluating strategic alternatives for the project.

The Corporation recently entered into a joint venture agreement in relation to the Honeymoon Uranium Project in Australia, which is scheduled to close before the end of 2008. The Corporation owns, either directly or through joint ventures, a large portfolio of uranium exploration properties in South Africa, the western United States and South Australia.

Uranium One’s convertible unsecured subordinated debentures due December 31, 2011 are also listed on the TSX.

HIGHLIGHTS

• Attributable sales volumes during Q3 2008 were 848,100 pounds of U3O8, an increase of 24% compared to attributable sales volumes of 685,600 pounds of U3O8 during Q2 2008 and a substantial increase compared to 70,000 pounds of U3O8 sold during Q3 2007.
• Earnings from mine operations were $36.6 million during Q3 2008, an 11% increase over earnings from mine operations of $32.9 million during Q2 2008 and a significant increase over earnings from mine operations of $6.3 million during Q3 2007.
• Average realized U3O8 sales price during Q3 2008 was $67 per pound generating revenue of $56.7 million, compared to an average realized U3O8 sales price of $115 per pound generating revenue of $8.0 million during Q3 2007.
• Total production during Q3 2008 was 704,600 pounds of U3O8, a decrease of 8% from total production of 767,100 pounds of U3O8 during Q2 2008 and an increase of 31% from 538,400 pounds of U3O8 in Q3 2007.
• The Corporation entered into joint venture arrangements with Mitsui & Co., Ltd. of Japan in relation to the Australian assets of Uranium One, including the Honeymoon Project. The total minimum cash commitment from Mitsui will be approximately $82 million (A$104 million) for its 49% share of Uranium One Australia’s business.
• The Corporation wrote down mineral interests, plant and equipment by $2.8 billion in Q3 2008: $1.8 billion on Dominion; $0.7 billion on United States exploration properties; $0.2 billion on Honeymoon and Australian exploration; and $0.1 billion on Hobson, La Palangana and Shootaring Mill.
• Steve Magnuson succeeded Dave Hodgson as Chief Operating Officer. Mr. Magnuson is a professional engineer with 30 years mining experience, primarily in uranium in situ recovery (ISR) operations. Most recently, Mr. Magnuson was Vice President of Operations for a U.S. subsidiary of Cameco Corporation, with responsibility for ISR operations in Wyoming and Nebraska as well as the Inkai Joint Venture in Kazakhstan. Mr. Hodgson will remain a member of the board of directors of Uranium One.

OPERATIONS AND PROJECTS

• Akdala - Attributable production during Q3 2008 was 482,400 pounds of U3O8, at a cash operating cost of $14 per pound of U3O8 sold.
• South Inkai - Attributable pre-commercial production during Q3 2008 was 146,400 pounds of U3O8, a decrease from attributable pre-commercial production of 257,100 pounds of U3O8 during Q2 2008 due to lower than expected sulphuric acid deliveries as a result of ongoing transportation and logistics constraints in Kazakhstan.
• Kharasan - Pilot mining commenced in September 2008 with production fluids from the test production block delivered to the processing plant.
• Dominion - Pre-commercial production during Q3 2008 was 75,800 pounds of U3O8. Operations were suspended on October 22, 2008 with the Project being placed on care and maintenance pending the evaluation of available strategic alternatives.
• Wyoming – The permitting process continued for the Moore Ranch, Antelope and JAB Projects.
• Hobson/La Palangana - The Corporation has decided to conduct further resource delineation drilling and exploration in Texas prior to starting operations at the Hobson ISR processing facility.

OUTLOOK

• The Corporation’s attributable production estimate for 2008 has been revised to 2.8 million pounds of U3O8 from 3.1 million pounds of U3O8 as a result of the decision to place Dominion on care and maintenance, lower than expected production from South Inkai and the later than expected start-up of pilot production at Kharasan.
• Total production for 2009 is estimated to be 3.5 million pounds of U3O8, comprising 1.8 million pounds from Akdala, 1.5 million pounds from South Inkai and 0.2 million pounds from Kharasan.
• The Corporation’s total production for 2010 is estimated to be 5.6 million pounds of U3O8. This includes initial production from the Moore Ranch Project in Wyoming, which is expected to commence during the second half of 2010 and excludes initial production from the Honeymoon Project in Australia.
• During 2009, the average cash cost per pound of U3O8 sold is expected to be approximately $15 per pound of U3O8 sold from Akdala. The cash cost per pound of U3O8 sold from South Inkai is expected to be on average approximately $28 in 2009, with a cost per pound sold of approximately $20 by the end of the year.
• The Corporation’s total contracts for the sale of U3O8 amount to 26 million pounds, of which 80% have weighted average floor prices, subject to escalation, of approximately $45 per pound.
• In 2009, the Corporation expects to incur capital expenditures of $21 million for the development of assets in Wyoming and make a $6 million contribution to the costs of constructing a sulphuric acid plant in Kazakhstan.
• General and administrative expenses, excluding stock based compensation, are expected to be approximately $28 million for 2009. Care and maintenance costs at Dominion are expected to be $12 million for 2009.
• The first dividend from the Corporation’s Betpak Dala joint venture is expected to be received in Q4 2008, with regular dividend payments from Betpak Dala expected from 2009 onwards.

Forecast

During the remainder of 2008 and 2009, the Corporation is focused on maintaining production of U3O8 from Akdala at current levels, achieving commercial production from its development projects, controlling costs at its operations and remaining a reliable supplier of U3O8 to the nuclear fuel industry.

The Corporation’s attributable production estimate for 2008 has been revised to 2.8 million pounds of U3O8 from 3.1 million pounds of U3O8, mainly due to the decision to place Dominion on care and maintenance (down from 320,000 pounds to 169,300 pounds), lower than expected production from South Inkai (down from 910,000 pounds to 765,000 pounds) and the later than expected start up of pre-commercial production at Kharasan (down from 39,000 pounds to 19,000 pounds).

• The Corporation’s attributable production estimate for 2009 is 3.5 million pounds of U3O8
• Attributable production for 2010 is estimated to be 5.6 million pounds of U3O8

For 2008 the cash cost per pound of U3O8 sold is expected to be approximately $14 per pound of U3O8 sold from Akdala. During 2009, the average cash cost per pound of U3O8 sold is expected to be approximately $15 per pound of U3O8 sold from Akdala.

The cash cost per pound of U3O8 sold from South Inkai is expected to be on average approximately $28 in 2009, with a cost per pound sold of approximately $20 by the end of the year. The increase in the estimated cash cost per pound of U3O8 sold from Akdala is attributable to inflationary pressures in Kazakhstan, especially in the mining industry.

The Corporation’s total contracts for the sale of U3O8 amount to 26 million pounds, of which 80% have weighted average floor prices, subject to escalation, of approximately $45 per pound.

For 2009, the Corporation expects to incur capital expenditures of $21 million on fully owned development projects in the United States, including $17 million on Moore Ranch and other Powder River Basin properties and $4 million on JAB and Antelope in the Great Divide Basin.

The Corporation expects to make contributions to the construction of a sulphuric acid plant in Kazakhstan of $6 million in Q4 2008 and $6 million in Q1 2009. Capital expenditure by Betpak Dala and Kyzylkum are funded through the joint ventures’ working capital or third party debt facilities.

The Corporation’s Australian joint ventures, including Honeymoon, will be funded from the cash commitment of approximately $82 million (A$104 million) from Mitsui in 2009. General and administrative expenses, excluding stock based compensation, are expected to be approximately $28 million and exploration expenditure is expected to be $12 million for 2009.