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Press release from CNW Group

Uranium One Announces Amended Option Agreement to Acquire Mantra Resources - Reduction in Price and Improved Flexibility to Exercise Option

Monday, March 21, 2011

Uranium One Announces Amended Option Agreement to Acquire Mantra Resources - Reduction in Price and Improved Flexibility to Exercise Option09:46 EDT Monday, March 21, 2011VANCOUVER, British Columbia and JOHANNESBURG, South Africa, March 21 /CNW/ - Uranium One Inc. ("Uranium One") today announced that Mantra Resources Limited ("Mantra") and JSC Atomredmetzoloto ("ARMZ") have revised the terms of the Scheme Implementation Agreement that was entered into by Mantra and ARMZ on December 15, 2010.Under the revised agreement, Mantra shareholders will receive A$7.02 comprising A$6.87 in cash to be paid by ARMZ and a cash dividend of A$0.15 to be paid by Mantra instead of A$8.00 in cash.The Directors of Mantra have agreed unanimously to recommend ARMZ's revised offer and will vote in favour of the Scheme in the absence of a superior proposal and subject to receipt of an updated recommendation from the independent expert that the revised transaction is in the best interests of Mantra shareholders.Mantra's strategic shareholder, Highland Park S.A., which owns 13.5% of the outstanding fully diluted share capital in Mantra, has also represented to Mantra that it supports the revised transaction and will vote in favour of the Scheme in the absence of a superior proposal.Concurrently with the execution of the amendment to the Scheme Implementation Agreement, Uranium One and ARMZ have entered into an Amended and Restated Option Agreement which provides Uranium One with the benefit of the A$6.87 revised price and additional flexibility in exercising the option to acquire Mantra.Under the terms of the original Put/Call Option Agreement announced on December 15, 2010, Uranium One had a call option to acquire Mantra from ARMZ, exercisable at any point within 12 months of closing of the acquisition of Mantra by ARMZ and ARMZ had a put option to sell Mantra to Uranium One at the end of such term for consideration equal to ARMZ's acquisition cost plus certain additional expenditures.  The Amended and Restated Option Agreement provides Uranium One with the ability to extend the term of the put/call option to 24 months from 12 months provided that Uranium One partially exercises its call option and acquires approximately 15% of the shares of Mantra for US$150 million before the later of six months from closing of the acquisition of Mantra by ARMZ and January 31, 2012.  If Uranium One's call option is partially exercised, ARMZ's put option is only exercisable at the end of the 24 month term.  The option to acquire the remaining 85% interest in Mantra (or 100% if the option is not partially exercised) remains subject to minority shareholder approval.Uranium One and ARMZ remain committed to the joint strategy of creating a world-leading diversified uranium production company with high quality mines and development projects.Chris Sattler, Chief Executive Officer of Uranium One, said:"Mkuju River Project ranks among the best uranium development projects in the world. The amended put/call structure maintains our ability to acquire a world-class uranium development project at a lower cost while providing us with additional flexibility to exercise the option."About Uranium OneUranium One is one of the world's largest publicly traded uranium producers with a globally diversified portfolio of assets located in Kazakhstan, the United States and Australia.Cautionary Statement No stock exchange, securities commission or other regulatory authority has approved or disapproved the information containedherein.Investors are advised to refer to independent technical reports containing detailed information with respect to the materialproperties of Uranium One. These technical reports are available under the profiles of Uranium One Inc and UrAsia Energy Those technical reports provide the date of each resource or reserve estimate, details of the keyassumptions, methods and parameters used in the estimates, details of quality and grade or quality of each resource or reserveand a general discussion of the extent to which the estimate may be materially affected by any known environmental, permitting,legal, taxation, socio-political, marketing, or other relevant issues. The technical reports also provide information with respect todata verification in the estimation.Forward-looking statements: This press release contains certain forward-looking statements. Forward-looking statements includebut are not limited to those with respect to the price of uranium, the estimation of mineral resources and reserves, the realizationof mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures,costs and timing of the development of new deposits, success of exploration activities, permitting time lines, currency fluctuations,requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated reclamationexpenses, title disputes or claims and limitations on insurance coverage and the timing and possible outcome of pendinglitigation. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "doesnot expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or"believes" or variations of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might"or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and otherfactors which may cause the actual results, performance or achievements of Uranium One to be materially different from anyfuture results, performance or achievements expressed or implied by the forward-looking statements. Such risks anduncertainties include, among others, the completion of the transactions described in this press release, the future steady stateproduction and cash costs of Uranium One, the actual results of current exploration activities, conclusions of economicevaluations, changes in project parameters as plans continue to be refined, possible variations in grade and ore densities orrecovery rates, failure of plant, equipment or processes to operate as anticipated, accidents, labour disputes or other risks of themining industry, delays in obtaining government approvals or financing or in completion of development or construction activities,risks relating to the integration of acquisitions and the realization of synergies relating thereto, to international operations, toprices of uranium as well as those factors referred to in the section entitled "Risk Factors" in Uranium One's Annual InformationForm for the year ended December 31, 2009 and Management Information Circular dated August 3, 2010, each of which isavailable on SEDAR at, and which should be reviewed in conjunction with this document. Although Uranium Onehas attempted to identify important factors that could cause actual actions, events or results to differ materially from thosedescribed in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated,estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual resultsand future events could differ materially from those anticipated in such statements.Accordingly, readers should not place undue reliance on forward-looking statements. Uranium One expressly disclaims anyintention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events orotherwise, except in accordance with applicable securities laws.For further information about Uranium One, please visit further information: Chris Sattler Chief Executive Officer Tel: +1 416 350 3657 Rob Buchanan Director, Investor Relations Tel: +1 416 350 3657