UEX Corp T.UEX

UEX Corporation: CEO Corner (June 17, 2015)

[shakerman640]

https://www.uex-corporation.com/corporate/ceo-corner/ceo-corner-item-3

CEO Corner

June 17th, 2015

The last six weeks has been an interesting one for the uranium industry, with all sorts of conflicting news and events, from Japanese re-start approvals, court injunctions against the restarts upheld and overturned, the imminent closure of the world-class Ranger Mine, the first sale of uranium from Canada to India via long-term supply contracts, and the start commercial production of the Cigar Lake Mine, the last few months have been indeed been intriguing.

While all these events impact our industry, UEX has been focused on continuing our quest to add additional pounds to our resource portfolio, to better position our Company for when the inevitable uranium supply gap is realized, which experts forecast will occur between 2018 and 2020. All industry leaders and experts agree that current uranium prices are not sufficient to incentivize new production.

We agree with this premise. As such, in addition to continuing to develop our existing resources for this price rise, we look to add new pounds to our portfolio to increase our future enterprise value.

The Company is looking forward to the results of the summer drilling program at Shea Creek, which is currently underway. Of particular interest to me is the plan to follow-up the original mineralized hole that led to the discoveries of the Shea Creek Deposits.

Hole SHE-2 was drilled by Cogema (a predecessor of AREVA) in 1992, and was the second hole ever drilled on the Saskatoon Lake Conductor system, host of the Shea Creek deposits. The hole is located approximately 2 km south of and along strike of the southern end of the known Shea Creek Deposits.

SHE-2 encountered uranium-gold-nickel mineralization in the basement approximately 11 m below the unconformity that averaged 0.62% eU3O8 over 0.7 m. Cogema also documented significant hydrothermal alteration and faulting within the sandstone column up to 500 m above the unconformity, including clay alteration (illite-kaolinite-chlorite), dravite veining, druzy quartz and hydraulic fracturing, all features commonly observed within and in the immediate vicinity of the Shea Deposits, and other large uranium deposits in the Athabasca Basin.

Hole SHE-127 was drilled in 2007 approximately 200 m north-west and along strike of the Saskatoon Lake Conductor from SHE-02. SHE-127 also encountered uranium mineralization in the basement that returned a probe grade of 0.24% eU3O8 over 0.5 m, approximately 40 m below the unconformity (see UEX press release of June 18, 2008). SHE-127 is the closest existing hole along strike of the Saskatoon Lake Conductor to SHE-02.

Surprisingly, these holes have yet to be followed-up with closely-spaced holes to test the immediate up-dip projection of this mineralization at the unconformity, nor has the basement potential of the deposit been investigated, remembering of course the fact that substantial resources at Shea Creek are hosted in the basement structures.

This summer, the joint venture will be testing the unconformity in the area between and up-dip of the basement mineralization encountered in holes SHE-2 and SHE-127 as well as several targets along the Saskatoon Lake Conductor system 3-5 km south of the Shea Creek Deposits.

Meanwhile, at Hidden Bay, our exploration team is organizing the final preparations for the resistivity survey at Dwyer Lake, to define the boundaries of the strong indicative hydrothermal alteration zone we defined during the winter 2015 drill program to help us select cost-effective drill targets in upcoming drilling programs. Our geologists will also be out in the field reviewing the core library in some of the other ten basement-hosted target locations that we identified in 2014, to further refine our drilling program for the upcoming winter drill program.

Last month, UEX was successful at oversubscribing our flow-through share offering, raising $3.3 million dollars, which will be used to fund the summer and upcoming winter programs while preserving a healthy balance in our treasury. This allows our Company to continue to grow our resource base with additional discoveries in the future, without the pressures in today’s market of a depleted treasury.

I would also like to thank our shareholders, and their trust in our Board and Management teams by strongly supporting the re-election of all Board members at the Company’s Annual General Meeting held in Vancouver on June 8th.

We look forward to the summer ahead and the results of our ongoing exploration activities.

Sincerely,

Roger Lemaitre,

President & CEO