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Lance Projects Lance Projects Alternate Lixiviant Chemistry Alternate Lixiviant Chemistry July 28, 2017 July 28, 2017 Agenda Low pH lixiviant Discussion of reason for request Results of lab testing Recovery and Restoration


  1. Lance Projects Lance Projects Alternate Lixiviant Chemistry Alternate Lixiviant Chemistry July 28, 2017 July 28, 2017

  2. Agenda • Low pH lixiviant – Discussion of reason for request – Results of lab testing – Recovery and Restoration • Permitting process • Update on Agreement State Timeline and how it affects permitting action • Discuss path forward 2 Community Energy

  3. The Issue • Alkaline leach not effective on Lance Projects mineralization • Current head grade and resource recovery below expectations – to date best recovery at 40% • 54 Mlb Wyoming uranium resource at risk • Testing of low pH lixiviants extremely successful 3 Community Energy

  4. Precedent • Two acid leach pilot tests in Wyoming circa late 1970’s – Nine Mile Lake – Reno Creek • ISR Copper in Arizona – San Manuel – Florence – Globe – Miami Unit • Australia • Kazakhstan – Several attenuation demonstrations 4 Community Energy

  5. Mineral Occurrence • Extensive petrology work has identified difference between uranium mineralization in older, Cretaceous age Lance Deposits and Tertiary age deposits • Uranium mineralization in the Powder River Basin and other Tertiary traditionally occurs interstitially 5 Community Energy

  6. Interstitial Uranium Mineralization 6 Community Energy

  7. Lance Deposits Mineralization • Uranium mineralization predominately Uranophane as opposed to more common uraninite or coffenite • Some traditional interstitial mineralization • High percentage of mineralization occurs occluded within secondary chert • Alkaline lixiviant unable to fully contact occluded uranium 7 Community Energy

  8. Lance Interstitial Uranium Mineralization 8 Community Energy

  9. Lance “Chert Occluded” Mineralization 9 Community Energy

  10. Laboratory Testing of Low pH Lixiviants • Strata has tested several low pH lixiviants with very good initial results • Dilute sulfuric acid leach very effective • Citric acid with oxidizer also effective • 90 – 95% recovery in 20 pore volumes (PV) compared to 40% recovery with alkaline lixiviant • Initial restoration testing very positive 10 Community Energy

  11. Low pH: 95% Recovery in 20 Pore Volumes 11 Community Energy

  12. Alkaline: 40% Recovery in 20 Pore Volumes 12 Community Energy

  13. Other Low pH Lixiviants 13 Community Energy

  14. Restoration Simulation Results 14 Community Energy

  15. Changes to Permit to Mine • Low pH leaching within capacity of current facility • Plant operations minimal impact • Excursion monitoring parameters may change • Restoration standards remain the same – Restoration techniques may change • Ground water restoration impact on bonding 15 Community Energy

  16. Regulatory Context • No prohibition to low pH lixiviants • LQD Regulatory Approach – R & D Testing License – Non Significant Revision – Significant Revision • Materials license – Post Agreement State amendment • WQD Regulatory Implications / Other 16 Community Energy

  17. Path Forward • LQD feedback on concept and regulatory approach • Further laboratory testing by Strata of leaching and restoration • Strata prepares White Paper for LQD – Historical & international experience – Detail effects on Permit to Mine – Summarize safety and environmental implications 17 Community Energy

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