REPORT - 4/15/2009, 9:43:46 AM-JWD

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1.0 INTRODUCTION On behalf of Powertech (USA) Inc. (Powertech), R2 Incorporated (R2) has prepared this Site Characterization Plan (SCP) to document the approach to and methods for the collection and analyses of background environmental data to be used to characterize the pre-mining site conditions of the Centennial Project in Weld County, Colorado. The process of preparing this SCP was initiated with the Colorado Division of Reclamation, Mining and Safety (DRMS) and other applicable agencies in 2007. In the absence of promulgated regulations under the 2008 statute, HB 08-1161, this report has been prepared to comply with the requirements found at 34- 32-112.5(5)(a), (b) and (c), thus providing a more transparent and open record for all interested stakeholders regarding the collection and analyses necessary for characterization of the Centennial Project area. 1.1 Site Description Powertech proposes to develop a uranium in-situ recovery (ISR) operation on its Centennial Project, located in Weld County, Colorado. This project area is situated approximately 15 miles northeast of Fort Collins, and approximately midway between the towns of Nunn and Wellington. A vicinity map, showing the location of the project area, in relation to major highways and landmarks, is provided in Figure 1. The project area is contained within the two SCP sample location maps for the Centennial Project (Plates 1 and 2). As of the date of this document, the project consists of approximately 10,000 acres. A final permit boundary will be established prior to the submission of Powertech's mine permit application. 1.2 Project Background and General Approach to Mining The project area was extensively explored by Rocky Mountain Energy (RME) and Mobil Oil Company in the late-1970s and early-1980s. RME performed pre-mining feasibility studies on uranium resources in the southern portion of the project area, where uranium production (using conventional open pit mining and milling techniques) was planned. Due to low uranium commodity prices, RME abandoned the project in 1984. Powertech acquired the mineral rights to 5,760 acres in 2006 from Anadarko Petroleum Corporation, the successor to RME. Powertech's proposed ISR operations will consist of a series of sequentially developed well fields, a satellite ion exchange (IX) facility (SF) and the central processing plant and associated process facilities (CPP) to recover and process the final uranium product. April 2009 1 Site Characterization Plan