Energy Fuels Inc.
TSX : EFR

Energy Fuels Inc.
Royal Resources Limited
ASX : ROY

May 06, 2008 08:30 ET

Energy Fuels and "Royal-Lynx" Form Joint Venture to Explore for Arizona Strip Uranium Deposits

TORONTO, ONTARIO--(Marketwire - May 6, 2008) -

Energy Fuels (TSX:EFR) and "Royal - Lynx" are pleased to announce the formation of a joint venture company to acquire, explore, evaluate and, if justified, mine uranium properties in the Arizona Strip region of Northern Arizona.

"Royal - Lynx" is itself a Joint Venture between Royal USA Inc, a wholly owned subsidiary of Royal Resources Limited (ASX:ROY), and Lynx2 LLC ("Lynx"). The Royal - Lynx Joint Venture was formed in April 2007 with Royal earning 80% by expenditure of US$4.5 million over 5 years. The purpose of the Royal - Lynx Joint Venture is to identify and acquire uranium and other mineral properties in the USA for exploration and development.

Energy Fuels currently controls, both directly and through participation with others, 4500 acres of potential uranium-bearing property in 26 separate prospect areas in Coconino and Mohave Counties, in the State of Arizona. Royal-Lynx wishes to actively participate in the exploration, development, and mining of these uranium properties.

The new Energy Fuels / Royal - Lynx joint venture will initially be owned 50:50 by each party, subject to adjustments based on future developments. Energy Fuels will contribute the Arizona acreage currently controlled by the Company. Royal-Lynx will contribute a minimum of $US2 million over a three year period. Once the Royal-Lynx cash commitment has been met, ongoing costs will be shared according to final ownership interest. Under the terms of the agreement, Energy Fuels will be the manager of the new joint venture and is designated as the operator of the exploration programs and any mines developed by the joint venture.

This agreement will allow Energy Fuels to pursue Arizona Strip exploration more aggressively than the Company could have done without a financial partner. Royal-Lynx will accelerate their participation in highly prospective uranium acreage in a district which offers the best U3O8 grades identified to date in the lower 48 states.

Stephen P. Antony, P.E., a Qualified Person as defined by National Instrument 43-101, has reviewed and approved the content of this press release.

Energy Fuels Inc. is a Toronto-based uranium and vanadium mineral exploration and development company actively rehabilitating and developing formerly producing mines. With more than 40,000 acres of highly prospective uranium and vanadium property located in the states of Colorado, Utah and Arizona, the Company has a full pipeline of additional development prospects. Energy Fuels Inc., through its wholly-owned Colorado subsidiary, Energy Fuels Resources Corporation, collectively referred to as Energy Fuels, has assembled this property portfolio along with a first class management team, including highly skilled technical mining and milling professionals based in Lakewood and Nucla, Colorado and Kanab, Utah.

Royal Resources Limited, (www.royalresources.com.au) is an Australian based exploration company with a portfolio of projects encompassing uranium and iron ore prospects. The Royal-Lynx Joint Venture has aggressively undertaken a uranium project acquisition program throughout southwestern Colorado and southeastern Utah to have controlling interests over claims totaling approximately 43,243 acres. Royal's board and management have extensive experience in exploration, project development, mining operations and public company administration.

Lynx is an active, experienced and dedicated team focused on the acquisition, exploration and development of uranium resources in the USA. Lynx is based in Salt Lake City, Utah, USA. The principals of Lynx, John Downen, Jim Black and Mike Leidich, have decades of experience in exploration for uranium and other minerals in the USA.

This news release contains certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended and "Forward Looking Information" within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein are forward-looking statements and forward looking information that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the British Columbia, Alberta and Ontario Securities Commissions.

George E.L. Glasier, President & CEO

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