Overview

Frontier Nuclear and Minerals Inc. owns a 10% equity interest in American Uranium Limited (ASX:AMU) and is AMU’s largest shareholder.

AMU holds a number of uranium exploration projects in Wyoming, together with uranium/vanadian assets in Utah’s Henry Mountains. AMU’s flagship asset is the 100% owned Lo Herma uranium project in the Southern Powder River Basin in Wyoming. The Lo Herma Project shares the southern boundary with the Pine Ridge uranium project.

Lo Herma is one of the more advanced development stage uranium projects in the Powder River Basin, and further development holds the potential to increase the uranium production profile of the Powder River Basin in Wyoming.

AMU recently completed a positive scoping study (the “Scoping Study”) on Lo Herma in accordance with JORC 2012, which is a preliminary technical and economic assessment of the potential viability of Lo Herma.

The Scoping Study contemplated an ISR operation with a central processing plant, a substantial JORC 2012 resource estimate, a 7-year mine life, an annual production target of 800,000 lbs U3O8 ,with an NPV of A$100 million and a pre-tax IRR of 56%.