Resource Capital Research
TSX VENTURE : UNI
TSX VENTURE : CVV
OTC Bulletin Board : BYBUF
OTC Bulletin Board : CVVUF
PINK SHEETS : UNOFF
TSX VENTURE : VEM
PINK SHEETS : VNARF
ASX : PNN

March 29, 2007 06:17 ET

RCR Research Report on Global Uranium Companies 1Q07

SYDNEY, AUSTRALIA--(CCNMatthews - March 29, 2007) - Resource Capital Research ("RCR"), an equity research company which focuses on small resource companies, today launched a major quarterly research report covering 23 global uranium exploration and development companies with a focus on Australia, Canada, USA and the UK. Over 250 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), CanAlaska Uranium Ltd. (TSX-V: CVV) (OTCBB: CVVUF), Unor Inc. (TSX-V: UNI) (PINKSHEETS: UNOFF) and Vena Resources Inc. (TSX-V: VEM) (PINKSHEETS: VNARF), are covered in the March 2007 report.

To access the free summary report, go to www.rcresearch.com.au. To purchase the complete 90 page comprehensive report, go to www.rcresearch.com.au/documents, or call analyst John Wilson directly at (+61- 2) 9252 9405.



Uranium Highlights -- 1Q 2007

Uranium market dynamics:

-- The spot uranium price is US$95.00/lb, up 45% from US$65.50/lb 3
months ago and up 78% from US$53.25/lb 6 months ago.
-- Forward indicators continue to strengthen and are currently at all
time highs (except for a brief spike that coincided with the Cigar Lake
flooding 4Q06).
-- Current indications suggest the uranium price will reach US$125/lb
during 2007, an increase of 32% from the current spot price; and US$140/lb
by September 2008, an increase of 47% over the current spot price.
-- 48 new nuclear power reactors are currently expected to be
commissioned globally by 2013 with aggregate generating capacity of 43.5
GWe.
-- The majority of new power reactors under construction are located in
Asia (13 in China, 8 in India, 6 in Korea, 3 in Japan) and 8 in Russia.


Uranium Companies:



-- The market valuation of our selection of Australian uranium juniors
(140 companies) is unchanged over the past month, up 23% over the past 3
months, and up 122% over the past 12 months.
-- This compares with a selection of 166 Canadian uranium juniors, down
2% over the past month, up 25% over the past 3 months, and up 75% over the
past 12 months.
-- Following floods at the Cigar Lake development project Oct. '06,
Cameco has confirmed it now expects production will be delayed till 2010
with full production (18mlbspa) expected 2012.
-- Australian Labor Party (ALP) "3 mines" policy reversal expected April
2007
-- QLD is expected to be the main initial beneficiary of a change in the
ALP's "3 mine" policy as it has both a supportive state government and
advanced uranium projects.


Equity Market Performance

The market valuation of our selection of Australian uranium juniors (140 companies) is unchanged over the past month, up 23% over the past 3 months, and up 122% over the past 12 months. This compares with a selection of 166 Canadian uranium juniors, down 2% over the past month, up 25% over the past 3 months, and up 75% over the past 12 months.

In the past 3 months the majors have had positive though variable performance: Cameco (CCO) is up 3%, Energy Resources of Australia (ERA) is up 35% and Paladin (PDN) is up 17%.

Uranium Price Outlook

The spot uranium price is US$95.00/lb, up 45% from US$65.50/lb 3 months ago and up 78% from US$53.25/lb 6 months ago.

Forward indicators continue to strengthen and are currently at all time highs (except for a brief spike that coincided with the Cigar Lake flooding 4Q06). Current indications suggest the uranium price is heading to US$125/lb during 2007, an increase of 32% from the current spot price; and US$140/lb by September 2008, an increase of 47% over the current spot price.

These price levels are revised up from our December uranium quarterly which indicated a uranium price of US$90/lb (+ 39%) May 2007 and US$88/lb (+59%) by late 2008.

World Nuclear Power Reactors -- Strong Growth in New Reactors Expected by 2013

WNA indicates 48 new nuclear power reactors are currently expected to be commissioned globally by 2013 with aggregate generating capacity of 43.5 GWe. These reactors are currently under construction or first concrete is expected to be poured imminently. This compares with 435 nuclear power reactors currently in operation with aggregate electricity generation capacity of 370 GWe. (WNA, Feb. '07). There is potential for additional power reactors to be commissioned by 2013 and further announcements are anticipated.

The majority of new power reactors under construction are located in Asia (13 in China, 8 in India, 6 in Korea, 3 in Japan) and 8 in Russia.

Australian Labor Party (ALP) "three mines" policy reversal expected April 2007

The Australian Labor Party national conference will be held in April 2007. The conference sets policy for all levels of the Labor Party (Federal, State and Local) and overturn of the "three mines" uranium policy is widely anticipated. The immediate impact of this should be to benefit companies with uranium projects (particularly advanced stage projects) in Queensland and South Australia where the state Labor governments have expressed support for a revised policy. The NT is already open to establishing new uranium mines. The current state government of Western Australia indicates it does not intend to abide by ALP policy changes relating to uranium -- the market, however, expects this will be a difficult position to maintain mid-term.

Advanced Australian projects likely to benefit when policy changes.



-------------------------------------------------------

Queensland
-------------------------------------------------------
Summit Resources/
Valhalla Paladin Resources
Westmoreland Laramide Resources
Ben Lomond Mega Uranium

Western Australia
-------------------------------------------------------
Yeelirrie BHP Billiton
Kintyre Rio Tinto
Lake Way and Centipede Nova Energy
Lake Maitland Mega Uranium
Man yingee Paladin Resources
Oobagooma Paladin Resources
Mulga Rocks Private
=======================================================


In addition, Curnamona Energy (CUY) has an early stage project at Oban (SA). A pilot stage trial ISL test is planned for 2H07 subject to state government approval. PepinNini Minerals (ASX: PNN) has the advanced Crocker Well/Mt Victoria project in SA.

News events impacting the markets of the past 3 months include:



-- Following floods at the Cigar Lake development project Oct. '06,
Cameco has confirmed it now expects production will be delayed till 2010
with full production (18mlbspa) expected 2012.
-- ERA declared "force majeure" at Ranger following heavy rains 1Q07.
Production will be down 20% - 30% 1Q07 over 1Q06 (1,372t U3O8) and will
likely be negatively impacted 2H07.
-- Langer Heinrich uranium mine (Paladin Resources, PDN) is now in
production and ramp-up to annualized output of 1,180tpa U3O8 (2.6mlbspa) is
on track. Kayelekera (Malawi, PDN) announced a positive BFS Feb. '07. The
project's rated capacity was increased to 1,500tpa U3O8 (3.3mlbspa) with
commissioning expected Sept. '08.
-- SXR Uranium One (SXR) plans to acquire UrAsia Energy (UUU), paying
0.45 shares for each issued share of UUU. This equates to C$7.05/share
(February 12, 2007) -- a premium of 13% or 21% to 20 day VWAP and values
the company at C$3.66bn.
-- PDN announced a scrip takeover offer for Summit Resources (SMM)
valuing SMM at A$1.01bn (27th Feb. '07) -- a 28% premium to the pre offer
closing price (26th Feb) or -34% to 10 day VWAP. SMM controls the Mt Isa
Project (QLD) and has a 50% interest in Valhalla and Skal with a JORC
resource of 28.5mlbs U3O8.
-- Denison Mines (DML) extended and went unconditional on its takeover of
OmegaCorp Limited (OMC).
-- Uranium Participation Corp (U) announced a financing of C$85m for
additional purchases of physical uranium stocks. Offer expected to close
April 10, 2007.


"Uranium price forward indicators continue to strengthen and are currently at all time highs (except for a brief spike that coincided with the Cigar Lake flooding 4Q06). Sector fundamentals are being driven by announcements of new reactors, upgrades and life extensions, combined with producer buying, and supply disruptions at Ranger and Cigar Lake," noted John Wilson, Managing Director of RCR. "A reversal of the Australian Labor Party's 'three mine' policy in relation to new uranium mines is widely anticipated April 2007. We expected projects in QLD will be the initial beneficiary as it has both a supportive state government as well as advanced uranium projects."

About Resource Capital Research

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

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



Abbreviations:
WNA - World Nuclear Association
Lb - pound
mlbspa - million pounds per annum
U3O8 - uranium



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