2. RESTATEMENT

The Company determined that the capitalization of development costs primarily on its New Mexico mineral properties and to a lesser extent on its South Texas mineral properties was not in accordance with U.S. GAAP resulting in the Company expensing amounts previously recorded to Plant, Property and Equipment. The Company has amended and restated its consolidated financial statements for the years ended December 31, 2012, 2011 and 2010, by reclassifying from property, plant and equipment to mineral property expenses $8,974,000 of costs, of which $3,922,000 was recorded before 2010 and accordingly, was recorded to accumulated deficit. The details of these restatements are outlined in the tables below.

Consolidated Balance Sheet

	December 31, 2012
	As Reported			Adjustment			As Restated
Assets
Property, plant and equipment	$	109,033,002		$	(8,974,335	)	$	100,058,667
Total Assets	58,578,770			(8,974,335		)	49,604,435
Shareholders’ equity
Accumulated deficit	(162,201,908		)	(8,974,335		)	(171,176,243		)
Total shareholders’ equity	45,143,377			(8,974,335		)	36,169,042
Total liabilities and shareholders’ equity	58,578,770			(8,974,335		)	49,604,435

Consolidated Statement of Operations

	Year Ended December 31, 2012
	As Reported			Adjustment			As Restated
Mineral property expenses	$	492,858		$	3,736,480		$	4,229,338
Total cost of uranium sales	5,276,471			3,736,480			9,012,951
Loss from operations before corporate expenses	(5,276,471		)	(3,736,480		)	(9,012,951		)
Loss from operations	(15,836,302		)	(3,736,480		)	(19,572,782		)
Net Loss	(15,624,373		)	(3,736,480		)	(19,360,853		)
Basic and diluted net loss per common share	(1.28		)	(0.30		)	(1.58		)

Consolidated Statement of Cash Flows

	Year Ended December 31, 2012
	As Reported			Adjustment			As Restated
Net Loss	$	(15,624,373	)	$	(3,736,480	)	$	(19,360,853	)
Additions to uranium properties	(5,015,225		)	3,736,480			(1,278,745		)

Consolidated Balance Sheet

	December 31, 2011
	As Reported			Adjustment			As Restated
Assets
Property, plant and equipment	$	83,637,321		$	(5,237,855	)	$	78,399,466
Total Assets	31,404,929			(5,237,855		)	26,167,074
Shareholders’ equity
Accumulated deficit	(146,577,535		)	(5,237,855		)	(151,815,390		)
Total shareholders’ equity	23,411,293			(5,237,855		)	18,173,438
Total liabilities and shareholders’ equity	31,404,929			(5,237,855		)	26,167,074

Consolidated Statement of Operations

	Year Ended December 31, 2011
	As Reported			Adjustment			As Restated
Mineral property expenses	$	17,918		$	(133,555	)	$	(115,637	)
Total cost of uranium sales	2,847,053			(133,555		)	2,713,498
Loss from operations before corporate expenses	(2,847,053		)	133,555			(2,713,498		)
Loss from operations	(11,375,749		)	133,555			(11,242,194		)
Net Loss	(11,199,397		)	133,555			(11,065,842		)
Basic and diluted net loss per common share	(1.20		)	0.02			(1.18		)

Consolidated Statement of Cash Flows

	Year Ended December 31, 2011
	As Reported			Adjustment			As Restated
Net Loss	$	(11,199,397	)	$	133,555		$	(11,065,842	)
Additions to uranium properties	(322,295		)	(133,555		)	(455,850		)

Consolidated Balance Sheet

	December 31, 2010
	As Reported			Adjustment			As Restated
Assets
Property, plant and equipment	$	83,895,090		$	(5,371,410	)	$	78,523,680
Total Assets	42,561,515			(5,371,410		)	37,190,105
Shareholders’ equity
Accumulated deficit	(135,378,138		)	(5,371,410		)	(140,749,548		)
Total shareholders’ equity	32,676,867			(5,371,410		)	27,305,457
Total liabilities and shareholders’ equity	42,561,515			(5,371,410		)	37,190,105

Consolidated Statement of Operations

	Year Ended December 31, 2010
	As Reported			Adjustment			As Restated
Mineral property expenses	$	1,646		$	1,449,152		$	1,450,798
Total cost of uranium sales	2,270,007			1,449,152			3,719,159
Loss from operations before corporate expenses	(2,270,007		)	(1,449,152		)	(3,719,159		)
Loss from operations	(10,700,040		)	(1,449,152		)	(12,149,192		)
Net Loss	(10,354,567		)	(1,449,152		)	(11,803,719		)
Basic and diluted net loss per common share	(1.43		)	(0.20		)	(1.63		)

Consolidated Statement of Cash Flows

	Year Ended December 31, 2010
	As Reported			Adjustment			As Restated
Net Loss	$	(10,354,567	)	$	(1,449,152	)	$	(11,803,719	)
Addition to uranium properties	(1,814,537		)	1,449,152			(365,385		)

The Company has also restated the March 31, June 30, and September 30 interim financial statements for the years 2010, 2011 and 2012 to expense certain costs previously capitalized as mineral property development costs. The Company has determined that its capitalization of these expenditures was not in accordance with U.S. GAAP. Specifically for 2012, the Company amended and restated the interim consolidated balance sheet as of March 31, 2012, June 30, 2012 and September 30, 2012 to remove $5,841,000, $7,414,000 and $8,384,000 of costs previously capitalized as development costs which should have been recorded as mineral property expenses. The interim consolidated statement of operations for the three month periods ended March 31, 2012, June 30, 2012 and September 30, 2012 were amended and restated to expense $603,000, $1,573,000 and $969,000, respectively, of costs previously capitalized as development costs to mineral property expenses. The interim consolidated statement of operations for the six month period ended June 30, 2012 and the nine month period ended September 30, 2012 were amended and restated to expense $2,177,000 and $3,146,000, respectively, of costs previously capitalized as development costs to mineral property expenses. Corresponding changes were made to the interim statement of cash flows for the three months ended March 31, 2012, the six months ended June 30, 2012 and the nine months ended September 30, 2012. Details on the quarters in the years ended December 31, 2010, 2011 and 2012 are outlined in the tables below.

Consolidated Balance Sheet

	March 31, 2012
	As Reported			Adjustment			As Restated
Assets
Property, plant and equipment	$	84,544,667		$	(5,841,050	)	$	78,703,617
Total Assets	40,431,532			(5,841,050		)	34,590,482
Shareholders’ equity
Accumulated deficit	(150,184,005		)	(5,841,050		)	(156,025,055		)
Total shareholders’ equity	31,488,394			(5,841,050		)	25,647,344
Total liabilities and shareholders’ equity	40,431,532			(5,841,050		)	34,590,482

Consolidated Statement of Operations

	Three Months Ended March 31, 2012
	As Reported			Adjustment			As Restated
Mineral property expenses	$	26,715		$	603,195		$	629,910
Total cost of uranium sales	655,487			603,195			1,258,682
Loss from operations before corporate expenses	(655,487		)	(603,195		)	(1,258,682		)
Loss from operations	(3,700,507		)	(603,195		)	(4,303,702		)
Net Loss	(3,606,470		)	(603,195		)	(4,209,665		)
Basic and diluted net loss per common share	(0.37		)	(0.06		)	(0.43		)

Consolidated Statement of Cash Flows

	Three Months Ended March 31, 2012
	As Reported			Adjustment			As Restated
Net Loss	$	(3,606,470	)	$	(603,195	)	$	(4,209,665	)
Additions to uranium properties	(964,621		)	603,195			(361,426		)

Consolidated Balance Sheet

	June 30, 2012
	As Reported			Adjustment			As Restated
Assets
Property, plant and equipment	$	86,692,812		$	(7,414,436	)	$	79,278,376
Total Assets	37,373,332			(7,414,436		)	29,958,896
Shareholders’ equity
Accumulated deficit	(153,844,684		)	(7,414,436		)	(161,259,120		)
Total shareholders’ equity	27,889,996			(7,414,436		)	20,475,560
Total liabilities and shareholders’ equity	37,373,332			(7,414,436		)	29,958,896

Consolidated Statement of Operations

	Three Months Ended June 30, 2012
	As Reported			Adjustment			As Restated
Mineral property expenses	$	30,744		$	1,573,386		$	1,604,130
Total cost of uranium sales	1,571,642			1,573,386			3,145,028
Loss from operations before corporate expenses	(1,571,642		)	(1,573,386		)	(3,145,028		)
Loss from operations	(3,787,151		)	(1,573,386		)	(5,360,537		)
Net Loss	(3,660,679		)	(1,573,386		)	(5,234,065		)
Basic and diluted net loss per common share	(0.34		)	(0.15		)	(0.49		)

Consolidated Statement of Operations

	Six Months Ended June 30, 2012
	As Reported			Adjustment			As Restated
Mineral property expenses	$	57,459		$	2,176,581		$	2,234,040
Total cost of uranium sales	2,227,129			2,176,581			4,403,710
Loss from operations before corporate expenses	(2,227,129		)	(2,176,581		)	(4,403,710		)
Loss from operations	(7,487,658		)	(2,176,581		)	(9,664,239		)
Net Loss	(7,267,149		)	(2,176,581		)	(9,443,730		)
Basic and diluted net loss per common share	(0.71		)	(0.21		)	(0.92		)

Consolidated Statement of Cash Flows

	Six Months Ended June 30, 2012
	As Reported			Adjustment			As Restated
Net Loss	$	(7,267,149	)	$	(2,176,581	)	$	(9,443,730	)
Additions to uranium properties	(3,155,448		)	2,176,581			(978,867		)

Consolidated Balance Sheet

	September 30, 2012
	As Reported			Adjustment			As Restated
Assets
Property, plant and equipment	$	108,434,518		$	(8,383,691	)	$	100,050,827
Total Assets	57,289,865			(8,383,691		)	48,906,174
Shareholders’ equity
Accumulated deficit	(158,065,598		)	(8,383,691		)	(166,449,289		)
Total shareholders’ equity	48,129,901			(8,383,691		)	39,746,210
Total liabilities and shareholders’ equity	57,289,865			(8,383,691		)	48,906,174

Consolidated Statement of Operations

	Three Months Ended September 30, 2012
	As Reported			Adjustment			As Restated
Mineral property expenses	$	12,402		$	969,255		$	981,657
Total cost of uranium sales	1,199,786			969,255			2,169,041
Loss from operations before corporate expenses	(1,199,786		)	(969,255		)	(2,169,041		)
Loss from operations	(4,235,360		)	(969,255		)	(5,204,615		)
Net Loss	(4,220,914		)	(969,255		)	(5,190,169		)
Basic and diluted net loss per common share	(0.34		)	(0.08		)	(0.42		)

Consolidated Statement of Operations

	Nine Months Ended September 30, 2012
	As Reported			Adjustment			As Restated
Mineral property expenses	$	69,861		$	3,145,836		$	3,215,697
Total cost of uranium sales	3,426,915			3,145,836			6,572,751
Loss from operations before corporate expenses	(3,426,915		)	(3,145,836		)	(6,572,751		)
Loss from operations	(11,723,018		)	(3,145,836		)	(14,868,854		)
Net Loss	(11,488,063		)	(3,145,836		)	(14,633,899		)
Basic and diluted net loss per common share	(1.05		)	(0.29		)	(1.34		)

Consolidated Statement of Cash Flows

	Nine Months Ended September 30, 2012
	As Reported			Adjustment			As Restated
Net Loss	$	(11,488,063	)	$	(3,145,836	)	$	(14,633,899	)
Additions to uranium properties	(4,278,130		)	3,145,836			(1,132,294		)

Consolidated Balance Sheet

	March 31, 2011
	As Reported		Adjustment		As Restated
	$		$		$
Assets
Property, plant and equipment	83,987,152		(5,445,882	)	78,541,270
Total Assets	38,772,593		(5,445,882	)	33,326,711
Shareholders’ equity
Accumulated deficit	(138,404,631	)	(5,445,882	)	(143,850,513	)
Total shareholders’ equity	30,748,593		(5,445,882	)	25,302,711
Total liabilities and shareholders’ equity	38,772,593		(5,445,882	)	33,326,711

Consolidated Statement of Operations

	Three Months Ended March 31, 2011
	As Reported		Adjustment		As Restated
	$		$		$
Mineral property expenses	91,898		74,472		166,370
Total cost of uranium sales	759,889		74,472		834,361
Loss from operations before corporate expenses	(759,889	)	(74,472	)	(834,361	)
Loss from operations	(3,093,759	)	(74,472	)	(3,168,231	)
Net loss	(3,026,493	)	(74,472	)	(3,100,965	)
Basic and diluted net loss per common share	(0.32	)	(0.01	)	(0.33	)

Consolidated Statement of Cash Flows

	Three Months Ended March 31, 2011
	As Reported		Adjustment		As Restated
	$		$		$
Net loss	(3,026,493	)	(74,472	)	(3,100,965	)
Additions to uranium properties	(222,265	)	74,472		(147,793	)

Consolidated Balance Sheet

	June 30, 2011
	As Reported		Adjustment		As Restated
	$		$		$
Assets
Property, plant and equipment	83,511,677		(5,154,556	)	78,357,121
Total Assets	35,940,521		(5,154,556	)	30,785,965
Shareholders’ equity
Accumulated deficit	(141,097,312	)	(5,154,556	)	(146,251,868	)
Total shareholders’ equity	28,255,567		(5,154,556	)	23,101,011
Total liabilities and shareholders’ equity	35,940,521		(5,154,556	)	30,785,965

Consolidated Statement of Operations

	Three Months Ended June 30, 2011
	As Reported		Adjustment		As Restated
	$		$		$
Mineral property expenses	16,789		(291,326	)	(274,537	)
Total cost of uranium sales	702,206		(291,326	)	410,880
Loss from operations before corporate expenses	(702,206	)	291,326		(410,880	)
Loss from operations	(2,704,420	)	291,326		(2,413,094	)
Net loss	(2,692,681	)	291,326		(2,401,355	)
Basic and diluted net loss per common share	(0.29	)	0.03		(0.26	)

Consolidated Statement of Operations

	Six Months Ended June 30, 2011
	As Reported		Adjustment		As Restated
	$		$		$
Mineral property expenses	108,687		(216,854	)	(108,167	)
Total cost of uranium sales	1,462,095		(216,854	)	1,245,241
Loss from operations before corporate expenses	(1,462,095	)	216,854		(1,245,241	)
Loss from operations	(5,798,179	)	216,854		(5,581,325	)
Net loss	(5,719,174	)	216,854		(5,502,320	)
Basic and diluted net loss per common share	(0.61	)	0.02		(0.59	)

Consolidated Statement of Cash Flows

	Six Months Ended June 30, 2011
	As Reported		Adjustment		As Restated
	$		$		$
Net loss	(5,719,174	)	216,854		(5,502,320	)
Additions to uranium properties	(8,041	)	(216,854	)	(224,895	)

Consolidated Balance Sheet

	September 30, 2011
	As Reported		Adjustment		As Restated
	$		$		$
Assets
Property, plant and equipment	83,557,195		(5,194,436	)	78,362,759
Total Assets	33,744,608		(5,194,436	)	28,550,172
Shareholders’ equity
Accumulated deficit	(143,884,558	)	(5,194,436	)	(149,078,994	)
Total shareholders’ equity	25,626,119		(5,194,436	)	20,431,683
Total liabilities and shareholders’ equity	33,744,608		(5,194,436	)	28,550,172

Consolidated Statement of Operations

	Three Months Ended September 30, 2011
	As Reported		Adjustment		As Restated
	$		$		$
Mineral property expenses	(25,816	)	39,880		14,064
Total cost of uranium sales	773,241		39,880		813,121
Loss from operations before corporate expenses	(773,241	)	(39,880	)	(813,121	)
Loss from operations	(2,827,097	)	(39,880	)	(2,866,977	)
Net loss	(2,787,246	)	(39,880	)	(2,827,126	)
Basic and diluted net loss per common share	(0.30	)	—		(0.30	)

Consolidated Statement of Operations

	Nine Months Ended September 30, 2011
	As Reported		Adjustment		As Restated
	$		$		$
Mineral property expenses	82,871		(176,974	)	(94,103	)
Total cost of uranium sales	2,235,336		(176,974	)	2,058,362
Loss from operations before corporate expenses	(2,235,336	)	176,974		(2,058,362	)
Loss from operations	(8,625,276	)	176,974		(8,448,302	)
Net loss	(8,506,420	)	176,974		(8,329,446	)
Basic and diluted net loss per common share	(0.91	)	0.02		(0.89	)

Consolidated Statement of Cash Flows

	Nine Months Ended September 30, 2011
	As Reported		Adjustment		As Restated
	$		$		$
Net loss	(8,506,420	)	176,974		(8,329,446	)
Additions to uranium properties	(114,778	)	(176,974	)	(291,752	)

Consolidated Balance Sheet

	March 31, 2010
	As Reported		Adjustment		As Restated
	$		$		$
Assets
Property, plant and equipment	82,463,604		(3,992,568	)	78,471,036
Total Assets	29,668,196		(3,992,568	)	25,675,628
Shareholders’ equity					0
Accumulated deficit	(127,371,721	)	(3,992,568	)	(131,364,289	)
Total shareholders’ equity	20,788,394		(3,992,568	)	16,795,826
Total liabilities and shareholders’ equity	29,668,196		(3,992,568	)	25,675,628

Consolidated Statement of Operations

	Three Months Ended March 31, 2010
	As Reported		Adjustment		As Restated
	$		$		$
Mineral property expenses	0		70,309		70,309
Total cost of uranium sales	587,199		70,309		657,508
Loss from operations before corporate expenses	(587,199	)	(70,309	)	(657,508	)
Loss from operations	(2,345,448	)	(70,309	)	(2,415,757	)
Net loss	(2,348,150	)	(70,309	)	(2,418,459	)
Basic and diluted net loss per common share	(0.41	)	(0.01	)	(0.42	)

Consolidated Statement of Cash Flows

	Three Months Ended March 31, 2010
	As Reported		Adjustment		As Restated
	$		$		$
Net loss	(2,348,150	)	(70,309	)	(2,418,459	)
Additions to uranium properties	(160,394	)	70,309		(90,085	)

Consolidated Balance Sheet

	June 30, 2010
	As Reported		Adjustment		As Restated
	$		$		$
Assets
Property, plant and equipment	82,492,622		(4,019,098	)	78,473,524
Total Assets	37,051,948		(4,019,098	)	33,032,850
Shareholders’ equity					0
Accumulated deficit	(129,092,277	)	(4,019,098	)	(133,111,375	)
Total shareholders’ equity	28,297,310		(4,019,098	)	24,278,212
Total liabilities and shareholders’ equity	37,051,948		(4,019,098	)	33,032,850

Consolidated Statement of Operations

	Three Months Ended June 30, 2010
	As Reported		Adjustment		As Restated
	$		$		$
Mineral property expenses	725		26,530		27,255
Total cost of uranium sales	500,617		26,530		527,147
Loss from operations before corporate expenses	(500,617	)	(26,530	)	(527,147	)
Loss from operations	(1,992,230	)	(26,530	)	(2,018,760	)
Net loss	(1,720,556	)	(26,530	)	(1,747,086	)
Basic and diluted net loss per common share	(0.29	)	—		(0.29	)

Consolidated Statement of Operations

	Six Months Ended June 30, 2010
	As Reported		Adjustment		As Restated
	$		$		$
Mineral property expenses	725		96,839		97,564
Total cost of uranium sales	1,087,816		96,839		1,184,655
Loss from operations before corporate expenses	(1,087,816	)	(96,839	)	(1,184,655	)
Loss from operations	(4,337,678	)	(96,839	)	(4,434,517	)
Net loss	(4,068,706	)	(96,839	)	(4,165,545	)
Basic and diluted net loss per common share	(0.70	)	(0.02	)	(0.72	)

Consolidated Statement of Cash Flows

	Six Months Ended June 30, 2010
	As Reported		Adjustment		As Restated
	$		$		$
Net loss	(4,068,706	)	(96,839	)	(4,165,545	)
Additions to uranium properties	(207,787	)	96,839		(110,948	)

Consolidated Balance Sheet

	September 30, 2010
	As Reported		Adjustment		As Restated
	$		$		$
Assets
Property, plant and equipment	82,670,939		(4,152,861	)	78,518,078
Total Assets	36,185,372		(4,152,861	)	32,032,511
Shareholders’ equity					0
Accumulated deficit	(132,756,758	)	(4,152,861	)	(136,909,619	)
Total shareholders’ equity	26,127,217		(4,152,861	)	21,974,356
Total liabilities and shareholders’ equity	36,185,372		(4,152,861	)	32,032,511

Consolidated Statement of Operations

	Three Months Ended September 30, 2010
	As Reported		Adjustment		As Restated
	$		$		$
Mineral property expenses	0		133,763		133,763
Total cost of uranium sales	645,637		133,763		779,400
Loss from operations before corporate expenses	(645,637	)	(133,763	)	(779,400	)
Loss from operations	(3,730,998	)	(133,763	)	(3,864,761	)
Net loss	(3,664,481	)	(133,763	)	(3,798,244	)
Basic and diluted net loss per common share	(0.44	)	(0.02	)	(0.46	)

Consolidated Statement of Operations

	Nine Months Ended September 30, 2010
	As Reported		Adjustment		As Restated
	$		$		$
Mineral property expenses	725		230,602		231,327
Total cost of uranium sales	1,733,453		230,602		1,964,055
Loss from operations before corporate expenses	(1,733,453	)	(230,602	)	(1,964,055	)
Loss from operations	(8,068,676	)	(230,602	)	(8,299,278	)
Net loss	(7,733,187	)	(230,602	)	(7,963,789	)
Basic and diluted net loss per common share	(1.16	)	(0.03	)	(1.19	)

Consolidated Statement of Cash Flows

	Nine Months Ended September 30, 2010
	As Reported		Adjustment		As Restated
	$		$		$
Net loss	(7,733,187	)	(230,602	)	(7,963,789	)
Additions to uranium properties	(456,898	)	230,602		(226,296	)