Samit, Mali, West Africa

• Historical resource estimate of 440,000 pounds U3O8 with considerable potential for resource expansion.*
• Located in the Tilemsi Basin, a region with similar geology to the Tim Mersoi Basin in neighbouring Niger, the world's fourth largest producer of uranium.

Location & History

The Samit deposit is located in the Tilemsi Basin of northeastern Mali, immediately west of the uranium producing Tim Mersoi Basin in neighbouring Niger. It consists of an Establishment Agreement covering 1000 square kilometres which provides Bayswater exclusive rights to explore for and mine uranium for a term of 30 years.

The land was previously explored between 1974 and 1981 by Japan's Power Reactor & Nuclear Fuel Development Corporation (PNC). This program consisted of the drilling of over 400 holes at six prospective areas with the result of outlining a historic resource estimate of approximately 440,000 pounds U3O8 grading 0.085% (non NI 43-101 compliant).

Establishment Agreement

As mentioned, the Establishment Agreement provides Bayswater the exclusive rights to explore for and mine uranium for a term of 30 years. In order to maintain the Agreement, Bayswater is obligated to complete a work expenditure of at least $180,000 during the first year. In the event that a viable deposit is identified and developed, the government is granted a 10% carried interest in the project, and is also granted the option to purchase up to an additional 10% in the project. Also, upon production, the government is to receive payment of a negotiated amount from Bayswater that is considered to represent the value of prior work done on the property by PNC.

Geology & Mineralization

The Tilemsi Basin has very similar geological patterns as the Tim Mersoi Basin in Niger, the world's fourth largest producer of uranium.
PNC's exploration program identified a limestone plateau containing a 20 km x 20 km concentration of uranium-bearing apacrete occurrences. These occurrences are hosted in Cretaceous to Paleogene age marine sedimentary rocks that like along the south flank of the Adrar de Iforas Massif which is similar in age and composition to the Air Massif in Niger. It is composed of Precambrian gneisses and metasedimentary rocks intruded by an early Pre-Cambrian to Cambrian age granitic batholith.

Exploration

Prior to the merger, NCA visited the property and completed initial sampling of four of the six prospective areas. Two of the targets, the B Zone and the E Zone contain uranium mineralization at surface and at depth as reported from historic drilling programs.

Kidal Prospecting Permit

Prior to the amalgamation with Bayswater, NCA received a Prospecting Permit from the Direction Nationale de la Geologie et des Mines (DNGM) for an additional 29,045 square kilometres in northeastern Mali. This region includes uranium mineralized areas identified by PNC in the 1970's. This permit provides Bayswater with the exclusive rights to prospect for uranium and apply for Establishment. Applications are being prepared for two 1,000 square kilometre Establishment Agreements within the Prospecting Permit area, in the place of the Prospecting Permit, that will likely be processed by the government of Mali during the first quarter of 2008. Once these Prospecting Permits are granted, Bayswater plans to carry out surface evaluation of mineralized areas to evaluate potential drill targets. NCA has evaluated historic data and compiled regional geological maps, to identify prospective areas for further exploration.