3. RESTATEMENT

The Company determined that the capitalization of development costs primarily on its New Mexico mineral properties and to a lesser extent on its South Texas mineral properties was not in accordance with U.S. GAAP. As a result, the Company has amended and restated its consolidated financial statements for the years ended December 31, 2012, 2011 and 2010, to reflect a cumulative adjustment to mineral property expenditures of $8,974,000 up to December 31, 2012. These adjustments to property expenditures were previously capitalized as property, plant and equipment.

The Company has also restated the March 31, 2013 and June 30, 2013 interim condensed consolidated financial statements to expense certain costs previously capitalized as mineral property development costs. The Company has determined that its capitalization of these expenditures was not in accordance with U.S. GAAP. As a result, the Company has amended and restated the interim condensed consolidated balance sheet as of September 30, 2013 to expense $762,000 of costs incurred during the nine-months ended September 30, 2013 that were previously capitalized as development costs to mineral property expenses, and reverse impairment costs recorded in the amount of $766,000. The interim condensed consolidated statements of operations for the nine-month periods ended September 30, 2013 and 2012 were amended and restated to expense $762,000 and $3,146,000, respectively, of costs previously capitalized as development costs to mineral property expenses, and reverse impairment costs recorded during the nine-months ended September 30, 2013 in the amount of $766,000. Corresponding changes were made to the interim statements of cash flows for the nine-months ended September 30, 2013 and 2012.

Consolidated Balance Sheet

	September 30, 2013
	As Reported		Adjustment		As Restated
	$		$		$

Assets
Property, plant and equipment	108,862,877		(8,970,931	)	99,891,946
Total Assets	49,802,689		(8,970,931	)	40,831,758
Shareholders’ equity
Accumulated deficit	(174,148,350	)	(8,970,931	)	(183,119,281	)
Total shareholders’ equity	42,482,986		(8,970,931	)	33,512,055
Total liabilities and shareholders’ equity	49,802,689		(8,970,931	)	40,831,758

Consolidated Statement of Operations

	Three Months Ended September 30, 2013
	As Reported		Adjustment		As Restated
	$		$		$

Mineral property expenses	282,478		89,506		371,984
Impairment of uranium properties	769,580		(765,879	)	3,701
Total cost of uranium sales	1,793,615		(676,373	)	1,117,242
Loss from operations before corporate expenses	(1,793,615	)	676,373		(1,117,242	)
Loss from operations	(4,001,108	)	676,373		(3,324,735	)
Net loss	(3,949,264	)	676,373		(3,272,891	)
Basic and diluted net loss per common share	(0.20	)	0.04		(0.16	)

Consolidated Statement of Operations

	Nine Months Ended September 30, 2013
	As Reported		Adjustment		As Restated
	$		$		$

Mineral property expenses	1,033,838		762,475		1,796,313
Impairment of uranium properties	1,449,235		(765,879	)	683,356
Total cost of uranium sales	4,887,442		(3,404	)	4,884,038
Loss from operations before corporate expenses	(4,887,442	)	3,404		(4,884,038	)
Loss from operations	(11,753,195	)	3,404		(11,749,791	)
Net loss	(11,946,442	)	3,404		(11,943,038	)
Basic and diluted net loss per common share	(0.63	)	0.00		(0.63	)

Consolidated Statement of Cash Flows

	Nine Months Ended September 30, 2013
	As Reported		Adjustment		As Restated
	$		$		$

Net loss	(11,946,442	)	3,404		(11,943,038	)
Impairment of uranium properties	1,449,235		(765,879	)	683,356
Additions to uranium properties	(884,640	)	762,475		(122,165	)

Consolidated Statement of Operations

	Three Months Ended September 30, 2012
	As Reported		Adjustment		As Restated
	$		$		$

Mineral property expenses	12,402		969,255		981,657
Total cost of uranium sales	1,199,786		969,255		2,169,041
Loss from operations before corporate expenses	(1,199,786	)	(969,255	)	(2,169,041	)
Loss from operations	(4,235,360	)	(969,255	)	(5,204,615	)
Net loss	(4,220,914	)	(969,255	)	(5,190,169	)
Basic and diluted net loss per common share	(0.34	)	(0.08	)	(0.42	)

Consolidated Statement of Operations

	Nine Months Ended September 30, 2012
	As Reported		Adjustment		As Restated
	$		$		$

Mineral property expenses	69,861		3,145,836		3,215,697
Total cost of uranium sales	3,426,915		3,145,836		6,572,751
Loss from operations before corporate expenses	(3,426,915	)	(3,145,836	)	(6,572,751	)
Loss from operations	(11,723,018	)	(3,145,836	)	(14,868,854	)
Net loss	(11,488,063	)	(3,145,836	)	(14,633,899	)
Basic and diluted net loss per common share	(1.05	)	(0.29	)	(1.34	)

Consolidated Statement of Cash Flows

	Nine Months Ended September 30, 2012
	As Reported		Adjustment		As Restated
	$		$		$

Net loss	(11,488,063	)	(3,145,836	)	(14,633,899	)
Additions to uranium properties	(4,278,130	)	3,145,836		(1,132,294	)