Denison Mines

The Arizona Strip

<![CDATA[The Arizona Strip ]]>
The Company owns four developed and partially developed mines in the Arizona Strip: Arizona 1, Canyon, Pinenut and Kanab North. In February 2007, the Company purchased from Pathfinder Mines Corporation five additional uranium deposits in the Arizona Strip: the EZ1, EZ2, DB, WHAT and Moonshine Springs properties.

The Company recommenced development work on the Arizona 1 mine in April 2007 and restarted mining operations in November 2009. The mine is an underground operation employing a combination of long hole and shrinkage stopping methods at a mining rate of 335 tons per day, four days per week. Ore from the Arizona 1 mine is hauled by truck approximately 325 miles to the White Mesa mill. The mine employs a total of 32 people.
]]>3O₈ of which 156,000 pounds is expected to be produced in 2010, 461,000 pounds in 2011 and 240,000 pounds in 2012.

On November 16, 2009, the Center for Biological Diversity, Grand Canyon Trust, Sierra Club and the Kaibab Band of Paiute Indians filed a Complaint for Declaratory and Injunctive Relief against Ken Salazar, Secretary of the Interior, the U.S. Bureau of Land Management (BLM) in regards to the permitting of Arizona 1. (The BLM granted Denison some of the required permits to operate the mine.) Since then an application for an injunction to halt production at the mine has also been filed. Though Denison was not named in the original lawsuit, it has been added as an intervener and Denison believes that the allegations are completely without legal merit. At this time, this legal action has not impacted the operations at Arizona 1. ]]>Permitting is at various stages for the Pinenut and Canyon mines. Both of these operations were shut down in the 1980s. The initial permitting for the EZ1 and EZ2 deposits is also in progress. These two pipes are greenfield developments and will require a full EIS to be completed. The Pinenut and Canyon mine sites remain on care and maintenance.

Classification

Tons

Grade

(% U₃O₈)

Lbs U₃O₈

Arizona 1

Inferred

70,300

0.68

956,000

Pinenut

Inferred

99,200

0.44

873,000

Canyon

Inferred

70,500

1.08

1,523,000

EZ 1

Inferred

110,500

0.51

1,127,000

EZ 2

Inferred

113,700

0.43

978,000

Total

464,200

0.59

5,457,000

Further Documents:

· June 24, 2009, NI 43-101 EZ1 and EZ2 Breccia Pipes Resource Estimate

· February 26, 2007, NI 43-101 Arizona Strip Resource Estimate

· Arizona Department of Environmental Quality current permit applications

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