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WILDHORSE SIGNS MOU TO RECOVER URANIUM FROM COAL ASH IN EUROPE 25th May 2007

KEY POINTS •

WildHorse Energy Limited (ASX:WHE) and Sparton Resources Inc. (TSX-V:SRI) announced today that they have entered into a Memorandum of Understanding (“MOU”) to identify and evaluate the possibility of extracting commercial quantities of uranium from waste coal ash produced by thermal power stations in Europe.

This is a further extension of the WildHorse’s strategy to be a major uranium supplier in Europe, with the potential of exploiting a secondary source of uranium that could be developed more rapidly than conventional mining operations.

Limited exploration and development work is required and development and capital requirements are much lower than for conventional mine development. These projects may be fast tracked to production. Further, the higher risk, more expensive, initial exploration and development phases of the normal cycle of discovery to production are eliminated.

Sparton Resources has developed extensive experience in evaluating uranium extraction from coal ash in China, in association with established technology partners from the US, and is regarded as an ideal partner for this program.

SUMMARY WildHorse Energy has announced today, the signing of a Memorandum of Understanding (“MOU”) with Canadian minerals and energy company, Sparton Resources Inc., to develop opportunities to extract uranium from coal ash in Europe. The move is part of the WildHorse strategy to be a major supplier of uranium in Europe, and presents a low cost and fast track path to production which will augment the company’s developing mining assets in the Central Eastern European region. The MOU will specifically seek to identify, test and develop of uranium from the ash by-products produced from across Europe. This review is expected to take about six studies and pre-feasibility level reports to develop process uranium recovery plant design would be commissioned.

several secondary sources coal fired power stations months, after which scoping engineering flow sheets and

The venture will be a natural extension for WildHorse Energy’s current network and business development capability already established in Europe, where many of the primary uranium projects currently being evaluated are administered by similar regulatory authorities. To produce uranium from suitable coal ash, it is necessary to process ash from existing stockpiles, or ongoing power plant production, through a processing facility similar to a standard uranium recovery plant. By avoiding mining development and operational costs, and reducing the time from identification of a suitable ash supply to production, the overall economics of developing such a recovery system can be very positive. 1

E: wildhorse@wildhorse.com.au W: www.wildhorse.com.au WildHorse Energy ACN 117 085 748


Europe produces more than 50 million tonnes of coal ash each year, some of which could potentially be developed into a significant supply of uranium. Uranium and other heavy metals such as vanadium are naturally occurring substances in coal, particularly in the lower grade coal types such as brown coal and lignite. The process of coal burning (through volume reduction) concentrates the original metal content by 3 to 15 times. This increases the 'grade' of the ash in terms of the potentially economic amounts for various metals including uranium.

Most coals average about 3-4 parts per million (ppm) uranium but certain deposits are known to contain 20-60 ppm and in rare circumstances, can contain uranium quantities similar to low grade primary uranium deposits. The uranium content of ash generated by burning these coals can vary from 100-300 ppm, which is similar to a number of primary uranium deposits being prepared for, or currently in, production. Radioactive waste deposits of high uranium ash are unsuitable for use as a concrete or cement filler and the reprocessing of the ash and uranium removal can be regarded as an environmentally positive operation, remediating a potential or existing hazardous waste disposal problem. WildHorse has already started evaluating one specific opportunity in Europe which will be reviewed as part of the activities planned under the MOU. Analyses on this material done between 1992 and 1995 indicate the ash contains between 90 and 150 ppm U3O8. Sparton Resources has acquired considerable experience in evaluating secondary sources of uranium for possible extraction operations in China, using established ion exchange technology (as used for In Situ Leach processes) which allows selective recovery and concentration of uranium. It is currently evaluating the large ash deposits stockpiled, and being produced at the Xiaolongtang Guodian Power Company in central Yunnan Province PRC. The work in China has been ongoing for over 12 months and currently involves a three-phase program which is at the advanced bench scale testing stage. Bulk sample testing and actual test production of small amounts of U3O8 are expected to be completed by year end. WildHorse and Sparton will undertake a study and sampling program to identify high uranium content ash deposits in Europe and to complete initial test work on leach amenability. The 2

E: wildhorse@wildhorse.com.au W: www.wildhorse.com.au WildHorse Energy ACN 117 085 748


MOU partners will contribute combined funds of up to A$500,000 for the initial phase of the work. High uranium ash material located by the program will be leach tested for uranium recovery in a program conducted under the direction of US based engineering and mineral processing company Lyntek Inc, which has been involved in over 30 uranium recovery projects in 10 different countries. Lyntek is a recognised leader in uranium extraction process engineering. This initial program is expected to extend over six months, will involve identification, sampling and leach testing of various types of ash samples from a number of power stations. Positive results in the initial test work may lead to scoping studies and pre-feasibility or full feasibility level evaluations and eventual production from one or more uranium recovery plants commissioned to process and recover uranium from these ash deposits. For more information, see www.wildhorse.com.au or contact: Mr Richard Pearce Managing Director +61 8 9389 2010

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Mr Mark Hughes Chairman +61 8 9389 2001

Ms Caroline De Mori Investor Relations +61 8 9485 1254

E: wildhorse@wildhorse.com.au W: www.wildhorse.com.au WildHorse Energy ACN 117 085 748

Wildhorse signs mou to recover uranium from coal ash in europe  
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