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Rio Tinto Coal Exploration Joint Venture

On 22 January 2009 the Company announced that it had entered into an option agreement with Rio Tinto Mining and Exploration Limited (RTX), whereby RTX has the right to exclusively explore for coal at, and farm in to, 2,938 sq km of URA's exploration licence areas in southern Tanzania ('RTX Option Agreement'). The RTX Option Agreement relates to all coal contained within the Mtonya and Ruhuhu farm-in licence areas. The RTX Option Agreement does not relate to the Bindi, Ruvuma and Ngaka project areas, which URA continues to develop.

The Tanzanian Government reports that a total of about 1 .5 billion tonnes in resources have so far been identified within the country and that these coals are similar in quality to the Gondwana coalfields in South Africa.

The largest of the Tanzanian coalfields is the Ketewaka-Mchuchuma coalfield which lies immediately to the west of the Company's Ruhuhu and Ngaka tenements and to the north of the Bindi tenement. To date, the remoteness of the coalfields and adequate infrastructure has prevented exploitation of these coalfields and the country has never been a significant producer.

G.M. Stockley, in the early 1930s, was the first to make a geological survey of the of the Karoo Basin of southwestern Tanzania and the Ketewaka-Mchuchuma coalfield, and he established a stratigraphic column for the coal measures in the principal Ruhuhu depression and produced initial estimates for coal potential. Between 1947 and 1953, both the Tanganyika Geological Survey ('TGS') and the Colonial Development Corporation ('CDC') conducted exploration programmes in the coalfields, but activity ceased when plans to extend the railway network in southern Tanganyika at the time were abandoned.

In more recent times coal exploration has recommenced and in February 2009 Atomic Resources Limited (ASX:ATQ) announced an initial combined coal resource of approximately 179 million tonnes in the Mhukuru and Ngaka Coalfield concessions within the Karoo Basin sediments of southwestern Tanzania.