U.S. MINING

Colorado Plateau

The Colorado Plateau district is an area encompassing approximately 20,000 square miles and straddles the border of south eastern Utah and south western Colorado. The Company’s principal mining complexes in the Colorado Plateau District consist of the La Sal, Van 4, Sunday, and East Canyon (Rim) zones. The bulk of the mineral deposits in the Colorado Plateau District are contained in three areas: the Sunday Mine complex, which includes the Sunday/St. Jude, West Sunday, Topaz and Carnation mines; the La Sal complex, which includes the La Sal, Beaver and Pandora mines; and the East Canyon Area, which includes the Rim mine. All of these areas have developed permitted mines that had been shut down in the 1990’s. There was limited mining activity on the Sunday Mine complex in 1998 and 1999.

The mines are located approximately 65 to 100 miles northwest of the Company’s White Mesa mill. Haulage of the ore from the mines to the mill is along County and State highways.

Because of the limited height of the ore, mining must be quite selective in order to maintain a satisfactory production grade. This is done by following the mineralized zones closely and by the technique of “split shooting” wherein the ore and waste are blasted separately in a two-stage operation.

In September 2006, the Company reached an agreement with an independent mining contractor, Reliance Resources LLC, to conduct contract mining at the Pandora mine, and with another independent contractor, Tomcat Mining Corporation, for the Topaz and West Sunday mines. After some development work, mining began and the first ore shipments were received and stockpiled at the White Mesa mill in the fourth quarter of 2006. At the Sunday/St. Jude mine, the Company engaged E & D Mining LLC as its contract miner early in 2007. First ore shipments from the Sunday mine were received at the mill in October 2007, after several months of rehabilitation work.

Late in 2007, rehabilitation work began at the Rim mine, and this mine was brought into production in June 2008. The Rim mine is operated directly by Denison. In addition to the Rim mine, the Company also began rehabilitation of the Beaver mine in late 2008, and this mine began shipping ore in February 2009.

The ore production by mine for 2007 and 2008 is shown in the table below.

The uranium grades in the above table are based on probe grades taken when the ore arrives at the White Mesa mill. The vanadium grades are based on historical uranium/vanadium ratios.

In addition to the mine production detailed above, a number of low grade stockpiles from the Colorado Plateau mines have been transported to the mill. During 2007 a total of 7,973 tons were shipped to the mill grading 0.08% U₃O₈ and 0.43% V₂O₅ and in 2008 a total of 6,801 tons were shipped to the mill grading 0.08% U₃O₈ and 0.39% V₂O₅.

In January 2009, the Company placed the Topaz mine on temporary standby. In March 2009, the Company also placed the Rim and Sunday/St. Jude mines on standby. Until new sales contracts are negotiated, these higher cost mines will remain on standby. The mines will be maintained so that they can be restarted with minimal effort.

The Company currently has no plans to bring the Van 4 into production, the last remaining mine on the Colorado Plateau.

Henry Mountains Complex, Utah (1)

HENRY MOUNTAINS COMPLEX, UTAH

In May 2007, Denison began limited rehabilitation work on the existing Tony M workings.  With the receipt of the operating permit in September 2007, Denison shifted from rehabilitation work to mining of the Tony M deposit. As of the end of 2007, 9,368 tons of ore grading 0.10% U₃O₈ has been shipped to the White Mesa mill from the Tony M mine.

In 2008 87,421 tons grading 0.15% U₃O₈ was shipped to the White Mesa mill, as well as 64,755 tons of ore from the historic stockpiles, grading 0.11% U₃O₈.

In addition to re-opening the mine, the Company also constructed a number of surface facilities including a power generation station, compressor station, fuel storage facilities, maintenance building, offices and the mine dry. An evaporation pond, which was originally constructed when the Tony M mine was in operation in the 1980’s, which is used for storage and evaporation of mine water, was reconstructed to allow for dewatering of the mine.

In November 2008, the Company announced that operations at the Tony M mine were being placed on temporary stand-by due to high operating costs and the weakening of the uranium spot price. The mine was put on care and maintenance, and dewatering activities are continuing so that mining operations can resume quickly, if and when Denison is able to obtain favourable uranium contracts. In March 2009, shipping of the ore stockpile to the White Mesa mill was completed.

In March, 2009, Denison released an updated NI 43-101 resources estimate for Tony M and the Southwest deposits which are part of Denison's Henry Mountains Complex.  The Tony M - Southwest resource estimate was prepared by Scott Wilson Roscoe Postle Associates Inc. Indicated resources are estimated at 8.1 million pounds U3O8 and Inferred resources at 2.8 million pounds U3O8.

Tony M - Southwest NI 43-101 Resource Estimate
March, 2009

Notes:

· CIM Definitions were followed for mineral resources.

· A grade contouring methodology was used to estimate the resource.

· The mineral resources were estimated at a cut-off grade of 0.10% eU₃O₈ over a minimum thickness of 2 feet and a minimum GT of 0.2ft-%.

· The eU₃O₈ value stands for “equivalent U₃O₈” based on data obtained from gamma logging of drill holes; this is an industry standard methodology for indirect estimation of uranium values in drill holes

The Arizona Strip (2)

The Arizona Strip is an area largely bounded on the north by the Arizona/Utah state line; on the east by the Colorado River and Marble Canyon; on the West by the Grand Wash cliffs; and on the south by a midpoint between the city of Flagstaff and the Grand Canyon. The area encompasses approximately 13,000 square miles.

The Company owns four developed and partially developed mines in the Arizona Strip, being the Arizona 1, Canyon, Pinenut and Kanab North mines, all of which had been shut down since the 1980s. In February 2007, the Company purchased from Pathfinder 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.

Ore from the Arizona Strip mines is hauled by truck from the mine sites to the White Mesa mill. The Arizona 1 and Pinenut mines are approximately 307 road miles, and the Canyon Mine is 325 road miles from the mill.

In the mid-1980s, the shaft at Arizona 1 was sunk approximately 1,200 feet below surface before activity at the mine was shut down due to depressed uranium prices. The original target depth was 1,600 feet in order to reach the bottom of the ore body. The Company has decided to ramp down from the bottom of the existing shaft rather than deepen the shaft to access the lower parts of the ore body.

Work began on the rehabilitation of the shaft in mid-2007. The rehabilitation of the shaft, underground development, sinking of an internal raise, which will be used as an ore pass, and the sinking of a ventilation shaft was completed in September 2008. Due to ongoing delays in receipt of an air quality permit, the contractor was demobilized from the site, and the site remains on care and maintenance until the air quality permit is received. Once the permit is received it will take approximately six months of underground development before ore production can begin.

The Pinenut and Canyon mine sites have been cleaned up and the buildings re-opened. Both of these sites also remain on care and maintenance.

⁽¹⁾ The Company has filed the "Technical Report on the Henry Mountains Complex Uranium Project, Utah, USA," dated September 9, 2006 on the Company’s profile on the SEDAR website at www.sedar.com. Cutoff grade for the Tony M resources are at 0.15% U₃O₈ and for Bullfrog are at 0.20% U₃O₈.

⁽²⁾ The Company has filed the "Technical Report on the Arizona Strip Uranium Project, Arizona, USA," dated February 26, 2007 on the Company’s profile on the SEDAR website at www.sedar.com. The cutoff grade used was 0.20% U₃O₈.

Last updated April, 2009.