In February 2010, Strateco announced an updated Scoping Study of its Matoush Property. Total operating profit is calculated at Cdn$ 1.04 billion based on a 7-year mine life and capital costs of Cdn$ 342 million.

With the Project having fully authorized as described in the Environmental Impact Statement, the federal administrator must now send its final recommendation to the Federal Minister of Environment to receive a licence for a mine construction permit.

With production to be expected within the next few years, and based upon the potential to produce 2.7 million pounds of U3O8 per year, Strateco is one of the top-3 advanced exploration/development companies focused on Canada (together with UEX and Hathor Excploration). Also considering the Company’s current Mineral resources of 20.2 million pounds U3O8, representing an in-the-ground value of more than US$ 1.0 billion or US$ 5.70 per share (fully diluted), and the resource potential to be 60 million pounds U3O8, in our view, enhanced by the overreaction of the uranium market on the nuclear disaster in Japan, the shares of Strateco are strongly undervalued.

Our next price objective is: Cdn$ 1.00.