Harpoon Discovery, Rook I


The Rook I project hosts the Harpoon Discovery located 4.7 km northeast of the Arrow Deposit which in discovery hole HP-16-08 intersected 17.5 m at 3.89% U3O8 (219.5 to 237.0 m) including 2.5 m at 12.49% U3O8 (224.5 to 227.0 m). Furthermore, hole HP-16-20 which was drilled 73 m up-dip and northeast from hole HP-16-08, intersected 13.5 m at 3.94% U3O8 (182.5 to 196.0 m) including 2.5 m at 20.90% U3O8 (187.0 to 189.5 m).  This new discovery is land-based and is defined by strong visible uranium and dense accumulations of massive to semi-massive pitchblende mineralization (see Core Photo below). Combined with Arrow, uranium occurrences along trend have now been identified over a mineralized strike length of 7 km all within the Rook I project and make up a known mineralized strike length from Spitfire to PLS of approximately 14 km of which NexGen holds 9 km of strike length.

The Harpoon Discovery is located on a Rook I internal mineral disposition (northeast of green dashed line in Figure 1) which is subject to a 2% net smelter return royalty (the “NSR”) of which 1% can be repurchased by the Company for $1 million which is held by Advanced Royalty Corp. In addition, Harpoon is subject to a 10% production carried interest held by Rio Tinto Uranium Corporation (“Rio Tinto”) which provides Rio Tinto with a right to 10% of potential future production provided Rio Tinto pays NexGen their 10% pro rata portion of the collective expenditure from June 20, 2005.