Uranium One Inc. reported record quarterly revenue of $101.9 million for Q1 2011 based on sales of 1.7 million pounds at an average realized sales price of $61 per pound. Quarterly production was a record 2.4 million pounds at a total cash cost per pound sold of $14.

Q1 2011 Highlights

Operational Results

• Total attributable production during Q1 2011 was a record 2.4 million pounds, 33% higher than total attributable production of 1.8 million pounds during Q1 2010.
• The average total cash cost per pound sold was $14 during Q1 2011, 22% lower than the average cash cost per pound sold of $18 during Q1 2010.
• First full quarter of attributable production from the recently acquired Akbastau and Zarechnoye mines was 366,900 pounds and 231,000 pounds, respectively.

Financial Results

• Attributable sales volumes during Q1 2011 were 1.7 million pounds, 120% higher than 0.8 million pounds sold during Q1 2010.
• Revenue was $101.9 million in Q1 2011, 187% higher than $35.5 million in Q1 2010. The average realized sales price during Q1 2011 was $61 per pound compared to $46 per pound in Q1 2010. The average spot price in Q1 2011 was $68 per pound.
• Earnings from mine operations were $51.2 million during Q1 2011, a 428% increase from earning from mine operations of $9.7 million in Q1 2010, due to increased sales volumes, an increase in the realized sales price, and decreased operating expenses.
• Net income during Q1 2011 was $14.0 million, or $0.01 per share compared to a net loss of $1.4 million or nil per share during Q1 2010.
• Adjusted net income during Q1 2011 was $14.7 million, or $0.02 per share compared to an adjusted net loss of $10.5 million or $0.02 per share in Q1 2010.

Corporate

• On March 21, 2011, ARMZ and Uranium One announced revised terms for ARMZ’s acquisition of Mantra Resources, initially announced on December 15, 2011. Uranium One’s option to acquire Mantra from ARMZ was also revised to allow for the option period to be extended to 24 months.

Chris Sattler, Chief Executive Officer of Uranium One, commented: “The Uranium One team continues to achieve our operational and financial objectives. This quarter saw continued, low cost growth from our operations and a smooth integration of our recently acquired Akbastau and Zarechnoye mines. This is an excellent start to 2011, and provides a solid platform for the Company to focus on integrating Mantra Resources following the closing of ARMZ’s acquisition in June.”

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