3. 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. As a result, the Company has amended and restated its consolidated financial statements for the years ended December 31, 2012, 2011 and 2010, to reflect a cumulative adjustment to mineral property expenditures of $8,974,000 up to December 31, 2012. These adjustments to property expenditures were previously capitalized as property, plant and equipment.

The Company has also restated the March 31, 2013 and 2012 interim financial statements 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. As a result, the Company has amended and restated the interim consolidated balance sheet as of March 31, 2013 to expense $323,000 of costs incurred during the three months ended March 31, 2013 that were previously capitalized as development costs to mineral property expenses. The interim condensed consolidated statements of operations for the three month periods ended March 31, 2013 and 2012 were amended and restated to expense $323,000 and $603,000, respectively, of costs previously capitalized as development costs to mineral property expenses. Corresponding changes were made to the interim condensed statements of cash flows for the three months ended March 31, 2013 and 2012.

Consolidated Balance Sheet

	March 31, 2013
	As Reported		Adjustment		As Restated
	$		$		$

Assets
Property, plant and equipment	109,328,318		(9,297,190	)	100,031,128
Total Assets	58,224,699		(9,297,190	)	48,927,509
Shareholders’ equity
Accumulated deficit	(166,352,500	)	(9,297,190	)	(175,649,690	)
Total shareholders’ equity	50,258,986		(9,297,190	)	40,961,796
Total liabilities and shareholders’ equity	58,224,699		(9,297,190	)	48,927,509

Consolidated Statement of Operations

	Three Months Ended March 31, 2013
	As Reported		Adjustment		As Restated
	$		$		$

Mineral property expenses	98,905		322,855		421,760
Total cost of uranium sales	1,238,885		322,855		1,561,740
Loss from operations before corporate expenses	(1,238,885	)	(322,855	)	(1,561,740	)
Loss from operations	(3,920,100	)	(322,855	)	(4,242,955	)
Net Loss	(4,150,592	)	(322,855	)	(4,473,447	)
Basic and diluted net loss per common share	(0.24	)	(0.02	)	(0.26	)

Consolidated Statement of Cash Flows

	Three Months Ended March 31, 2013
	As Reported		Adjustment		As Restated
	$		$		$

Net Loss	(4,150,592	)	(322,855	)	(4,473,447	)
Additions to uranium properties	(338,581	)	322,855		(15,726	)

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	)