Woulfe Mining Corp WFEMF

Dundee and Denison

[74volfram]

Denison announcement:
Denison Mines has entered into an agreement with Dundee Securities Ltd. on behalf of a syndicate of underwriters including Raymond James Ltd., Cormark Securities Inc. and Scotiabank (together, the "Underwriters") under which the Underwriters have agreed to purchase, on a "bought deal" private placement basis, 12,000,000 flow-through common shares of the Company (the "Flow-Through Shares") at a price of C$1.25 per Flow-Through Share for total gross proceeds of C$15,000,000 (the "Offering"). The Underwriters will seek to arrange for substituted purchasers for the Flow-Through Shares in one or more provinces of Canada.

Translation:
Dundee Securities is leading a group of underwriters to buy 12M "flow-through" shares of Denison Mines at $1.25 each (2% of outstanding shares). In this present case, 12M flow-through shares of Denison will be distributed among the undewriters and they will eventually be placed by the underwriters to "substituted purchasers" in Canada. Flow-through shares are regular common shares with an agreement that allows the purchasers to use Canadian Exploration Expenses (CEE) losses of the issuing company in their balance sheet to offset gains. CEE losses are very valuable to profitable companies to reduce their taxes. Flow-throughs are extensively used by exploration miners to attract investors.  Dundee has a special branch to place flow-through shares acquired in these deals to "substituted purchasers".  Last year another Dundee-led syndicate obtained a similar C$15M worth of flow-through shares from the same Denison Mines.

Dundee and Uranium:
There is nothing wrong with uranium mines and right now uranium price is very low. Several new nuclear reactors are being constructed in China, the Middle East and Korea.  The 50 Japanese reactors are going to be restarted fairly soon.  So uranium price should go up and this Denison deal may well prove to be a good investment for the final purchasers on top of the tax write-off.  However, nothing in this news release indicates that Dundee Securities is specifically investing in uranium or that it will keep any of these "flow-through" Denison shares.

All things considered:
This is a relatively minor deal for Dundee and a repeat of a simlar deal last year, in line with their normal course of resource-related business.