MONGOLIA

Drill operations in Mongolia

DRILL OPERATIONS IN MONGOLIA

In Mongolia, Denison owns a 70% interest and is the Managing Director in the Gurvan Saihan Joint Venture (GSJV). The other participants in the GSJV are the Mongolian government and Geologorazvedka, a Russian government entity, each of which holds a 15% interest. The joint venture was formed in early 1994 and currently holds four exploration licenses in the South Gobi region of Mongolia comprising more than 685,632 hectares.

The GSJV operates under a mineral agreement that was signed prior to the formation of the country’s current mineral law.

In addition to the four GSJV depressions, Denison also holds other exploration properties, in the GSJV and through a wholly-owned subsidiary, Denison Mines Mongolia, XXK.

In 2008, a total of 72,356 metres of drilling was carried out on the Hairhan depression, the Choir depression and other exploration targets. At Hairhan, over 25,000 metres, using seven rigs, was dedicated to infill drilling and the establishment of hydrogeological wells for baseline groundwater and monitoring wells.

At the Choir depression, only a limited amount of drilling was carried out, but it was successful in discovering several small isolated mineralized zones which will be future targets. The Haraat deposit in the Choir depression contain a very large amount of near surface uranium, which is above the water table, and is not amenable to conventional ISR operations, so a variety of mining and recovery procedures are being evaluated. Several drill holes were cored to obtain metallurgical samples. The preliminary metallurgical test work indicated that recoveries of approximately 90% could be achieved using either acid or carbonate leach.

GEOLOGISTS WORKING AT HAIRHAN

At the Ulziit depression, a 25,000 metre program was completed and a new discovery of moderate mineralization in permeable sands was made. Further evaluation of this new discovery will be the focus of further infill drilling in 2009.

Late in 2008, the Company submitted to the Mineral Resources Committee of Mongolia a reserve estimate prepared in accordance with Russian procedures.

In 2009, the program in Mongolia will be significantly reduced and will entail a combination of exploration drilling and continuation of environmental baseline data collection and permitting activities.





The Company has filed the "Technical Report on the Uranium Exploration Properties in Mongolia," dated February 27, 2007 on the Company’s profile on the SEDAR website at www.sedar.com.


Last updated April, 2009.