Resource Capital Research (RCR)
TSX VENTURE : BUF.U
OTC Bulletin Board : BYBUF
TSX VENTURE : UNI
PINK SHEETS : UNOFF

December 19, 2006 16:35 ET

Equity Research Report on Global Uranium Companies

SYDNEY, AUSTRALIA--(CCNMatthews - December 19, 2006) - Resource Capital Research ("RCR"), an equity research company which focuses on small resource companies, today launched a major quarterly research report covering 25 global uranium exploration and development companies with a focus on Australia, Canada, USA and the UK. Over 150 junior and mid cap explorers, development and production companies are identified.

The report reviews companies active in established uranium districts globally, including Australia, Canada, USA, Argentina, Peru, Mongolia, Zambia, Tanzania and Namibia. The following US traded companies: Buffalo Gold Ltd. (OTCBB: BYBUF) and (TSX-V: BUF.U), Unor Inc. (TSX-V: UNI) and (PINKSHEETS: UNOFF), and CanAlaska Uranium Ltd. are covered in the report.

To access a free abbreviated summary report, or to purchase the complete 88 page comprehensive report, go to www.rcresearch.com.au/documents, or call uranium analyst John Wilson directly at (+61-2) 9252 9405.




Uranium Highlights - Year-end 2006
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Physical market:

-- The spot uranium price is US$65.50/lb, an
increase of 23% compared with 3 months ago.
-- The uranium price is forecast to reach US$90/lb
by mid 2007, an increase of 37% from the
current spot price. By late 2008, prices are
forecasted to increase to US$115/lb.
-- 251 new nuclear power reactors are currently
under construction, proposed or planned
worldwide. Currently 442 nuclear power reactors
are in operation worldwide.
-- New planned and proposed nuclear power reactors
announced between May and November 2006
increased dramatically. Worldwide a total of 223
reactors have now been
announced, up from 153 (70 new units, 46% increase).
-- The main increases are from China with 63 planned
and proposed new nuclear power reactors (up from 24
in May); Russia with 26 (up from 9 in May), and
the USA with 23 (up from 13 in May).


Publicly Traded Uranium Companies:

-- The market valuation of our selection of 65 Australian uranium juniors
increased 7% over the past month, 53% over 3 months, and 186% over the past
year.
-- The market valuation of 92 selected Canadian uranium juniors increased
19% in the past month, 40% over the past 3 months, and 143% over the past
year.
-- Uranium equities experienced a broad rerating following news of a
delay at the new Cigar Lake uranium mine in Canada with production now
unlikely before 2010. The mine's future production was estimated to be
approximately 37% of new uranium production previously forecast to come
onstream prior to 2010.
-- New producers and those with near term production visibility have
outperformed the uranium juniors in general. The group (as categorized by
RCR) is up 299% over 12 months compared with the uranium juniors in
general, up 160%.
-- Several junior uranium companies are expected to announce decisions to
develop uranium projects in 2007.


Company Activity

A number of juniors continue to make strong progress in reviewing and advancing historic development projects, some companies have committed to new project development, and additional project development decisions are expected in 2007. Companies include Equinox Minerals (EQN), OmegaCorp (OMC) (subject to a takeover offer from Denison Mines (DML)), UrAsia Energy (UUU), Ur-Energy (URE), and Paladin (PDN) (Kayelekera).

Near term producer share prices are discounting a high "forward" uranium price, ie above US$90/lb U3O8. This premium and good organic growth potential are driving M&A activity in some instances. Recent examples being Denison's acquisitions of IUC (IUC) and OmegaCorp, and Paladin's earlier stage acquisition of Valhalla Uranium (VUL).

New producers and those with near term production visibility have outperformed the uranium juniors in general. Australian companies in this category are up 399% over the past 12 months, while Canadian companies in this category are up 175%. This compares with the overall sector average increase of 160% in the past 12 months.

Companies with advanced projects (in most cases historical projects) which could advance rapidly in 2007 include Tournigan Gold Corporation (TVC), Uranex (UNX), PepinNini Minerals (PNN), Berkeley Resources (BKY), Wildhorse Energy (WHE), Energy Metals Limited (EME), Forsys Metals (FSY) and Laramide Resources (LAM).

Companies advancing earlier stage exploration projects in 2007, in some cases with encouraging early results, include Curnamona Energy (CUY), Globe Uranium (GBE), Scimitar Resources (SIM), Unor (UNI), Bayswater Uranium (BAY), Buffalo Gold (BUF), Magnum Uranium (MM), Continental Precious Metals (CZQ), Stellar Resources (SRZ) and West Australian Metals (WME).

"Overall there continues to be strong investor interest in the junior end of the uranium market, and our view is that this is likely to continue into 2007. Development stage companies with compliant resources, or those expected to advance to development stage mid term are forecast to continue to outperform the sector," John Wilson, Managing Director of RCR, noted.

About Resource Capital Research

Resource Capital Research ("RCR") (www.rcresearch.com.au), founded in 2004 is based in Sydney, and provides investors with in-depth reports on current investment opportunities in the mining sector both in Australia and globally. We focus on small resource companies, ranging from exploration stage, through development and production. John Wilson, analyst, principal, and founder of RCR research has nine years' experience analysing mining companies in Sydney and on Wall Street for major investment banks.

The report is available at www.rcresearch.com.au. The next Uranium Sector Review will be published in the March Quarter, 2007.



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