UrAmerica

CERRO SOLO PROJECT

UrAmerica’s Cerro Solo Project

UrAmerica’s Cerro Solo Project is located in Chubut Province, Patagonia, Southern Argentina, approximately 1,300km southwest of Buenos Aires and 350km west of Chubut Province’s capital city of Rawson.

The company controls 61 exploration permits ("cateos") and mining concessions ("Manifestaciones de Descubrimiento"), either wholly owned or through JV agreements, covering over 255,000ha within the San Jorge Basin.

This basin, which is largely composed of Jurassic and Cretaceous continental sediments and volcanics, is over 180,000km2 in area and is at an average elevation of 800 meters. This important geologic basin hosts many significant oil, gas, uranium, and metal resources. Most of this basin and the company’s properties are easily accessible year round via National Road #25.

UrAmerica's properties vs. Geologic map showing UrAmerica's and CNEA's

other companies in Chubut Province properties in Cerro Solo Area

UrAmerica's current property position covers many highly prospective areas, including over 145,000ha directly surrounding CNEA's Cerro Solo Uanium Deposit, which is the largest and highest grade sedimentary hosted uranium deposit in Argentina, and Los Adobes Open Pit.

The Cerro Solo Uranium Deposit was discovered by Argentina’s National Commission of Atomic Energy (CNEA) in 1979 and is currently estimated to contain 15.4 million lbs U3O8 at an average grade of approximately 0.47% eU3O8. There are numerous zones of mineralization within CNEA’s Cerro Solo property, but most of the high grade resources are located in two adjacent ore bodies, designated as Sectors B and C. These “Sectors” are adjacent to UrAmerica’s property.

The CNEA recently announced their intention to begin open pit mining at Cerro Solo in 2012. They have been drilling there since 2009, presumably to increase confidence in the existing resource in order to complete a feasibility study prior to commencing mining operations.

Very limited drilling has been conducted on the ground surrounding the CNEA’s Cerro Solo permit area. In the 1970’s, CNEA only conducted wide spaced drilling south of the Los Adobes open pit where the mineralized Los Adobes Formation is exposed. This drill program resulted in the discovery of the blind Cerro Solo deposit. Once a discovery at Cerro Solo was made, CNEA limited their exploration drilling to the delineation of the mineralized body, starting at 100 meter offset, following 25m, to 12.5 at present

CNEA’s Cerro Solo uranium deposit is described as a series of tabular shaped ore bodies containing abundant carbonaceous material and surrounded by oxidized sediments. UrAmerica’s exploration model considers the Cerro Solo deposit to be part of a roll front system very similar in origin to the roll front deposits in Wyoming and the Grants, New Mexico Mineral Belt.

Paleochannels in the Uranium Bearing Los Adobes Formation

Cerro Solo Area - Chubut Province

Map illustrating the location of the Los Adobes paleochannels depositing the stream sediments of the uranium bearing Los Adobes Formation. Paleochannel deposition of the Los Adobes sediments was confined to the low areas between the Paleozoic/Jurassic topographic highlands.

Cerro Solo is hosted within sandstones and conglomerates of the Cretaceous Los Adobes Formation, which were laid down within a major northeast–southwest trending paleochannel. The uranium is transported by oxidizing solutions down the hydrologic gradient somewhere to the southwest of CNEA’s Cerro Solo deposit and onto UrAmerica's property.

The Cerro Solo deposit is considered by UrAmerica to be a remnant uranium deposit preserved by the carbonaceous material within the oxidized portion of a major roll front system.

During 2008, limited drilling by UrAmerica’s predecessor, Urex through its wholly owned Argentine subsidiary UEM S.A., demonstrated that the uranium mineralization on CNEA’s property clearly continues off the CNEA ground and onto UrAmerica’s property. According to an independent qualified person the UEM drilling defined a NI 43-101 compliant inferred resource of 1.6 million lbs U3O8 at an average grade of 0.08% eU3O8 in two areas immediately south and west of the CNEA’s Cerro Solo Deposit. UrAmerica operates UEM S.A. and its properties through an exploration agreement and a JV with Patagonia Resources Ltd., who acquired UEM S.A. in February, 2010.

UrAmerica is planning a 30,000 meter drilling program, to begin in November 2011, which is intended to better evaluate the roll front concept while also defining the extensions of the Cerro Solo Deposit's mineralization onto UrAmerica’s property.

Uramerica’s goal is to establish a 15 M lbs U3O8 resource over the next 12 to 18 months. CNEA’s Cerro Solo deposit could be one of a series of high grade, remnant uranium deposits yet to be discovered within the Los Adobes paleochannel. Additionally, it is believed that the geologic environment is excellent for discovering high grade uranium deposits. UrAmerica controls the extensions of the highly prospective Los Adobes paleochannel that could host a world class district containing well over 100 M lbs of high grade uranium.

Images of the Cerro Solo Area

Panoramic view of the Cerro Solo area

It is a sparsely vegetated, remote landscape of gently rolling topography. The area has very few local inhabitants and its sole activity is sheep farming. There is easy year round access to the project area, which is considered to be an ideal location for a mining project

Outcrop of mineralized Los Adobes sandstone and conglomerates in CNEA`s Los Adobes Open Pit

It produced approximately 120 tonnes of uranium in the 1970’s. Note the cross bedding and the coarse grain conglomerates with pervasive hematite alteration. The mineralization is associated with the more reduced zones in the Los Adobes Formation

Strong hematite and limonite alteration within the Los Adobes sandstone and conglomerates

These are exposed on UrAmerica's Cerro Solo Property

Close up view of the above photo

Showing the Los Adobes Formation conglomerate displaying purple-red hematite alteration characteristic of sediments within the oxidized portion of a roll front system