03 May 2012 Americas/Canada Equity Research Diversified Metals & Mining / Metals & Mining

Uranium One Inc. (UUU.TO)

Rating OUTPERFORM* [V] Price (02 May 12, C$) 3.03 Target price (C$) 4.50 52-week price range 4.44 - 1.94 Market cap. (C$ m) 2,900.28 Enterprise value (US$ m) 3,208.30
*Stock ratings are relative to the relevant country benchmark. Target price is for 12 months. [V] = Stock considered volatile (see Disclosure Appendix).

REINSTATEMENT

Out of the Blocks and Hitting Stride

Reinstating coverage of Uranium One Inc. (UUU.TO) at Outperform. After a period of restriction, we reinstate coverage of UUU with an Outperform rating and 12-month target price of C$4.50/share. Stronger reserve base and another year of production growth. UUU is targeting another year of production growth with FY12 attributable share of 11.6Mln lbs U3O8 (+9% YoY) at an average cash cost of $19/lb sold. FY13 attributable share of production is estimated to grow a further +7.8% YoY to 12.5Mln lbs U3O8. With average cash costs around $20/lb, UUU remains in the lowest cost quartile of the uranium cost curve and as a result, maintains a strong relative position on EBITDA margins on a per pound (sold) basis. Seeking an inflection. We believe we are in the early stages of a positive turn in market sentiment towards uranium and uranium equities that would see a return to the historical valuation range on P/NAV of 1.2-1.4x (peak valuation 1.6x) based on: (i) partial restart of Japanese nuclear capacity; (ii) resumption of approvals for new nuclear reactors in China; (iii) expiry of the HEU supply agreement in 2013; and (iv) slower production growth from Kazakhstan. Relative valuations are rich on traditional metrics (P/NAV, EV/EBITDA) vs. peer group metals; however, we believe uranium equities will continue to trade at premium based on scarcity value, lack of investment alternatives and the relatively high barriers to entry associated with uranium mining. Valuation: UUU well-positioned for recovery in uranium prices. We believe the current spot price of $52/lb is fundamentally supported and a staged recovery in prices more reflective of incentivized supply pricing, in our view between $65-70/lb, will occur over the next 18-24 months. We currently assume $55/lb in 2013, $65/lb in 2014, and $75/lb in 2014. Our 12-month TP for UUU of C$4.50/share is based on a 1.2x our NAV estimate of C$3.57/share. Our target multiple for UUU reflects the low-end of the historical range (1-1.6x).

Research Analysts Ralph M. Profiti, CFA 1 416 352 4563 ralph.profiti@credit-suisse.com Hussein Govani 416 352 4677 hussein.govani@credit-suisse.com

Share price performance

5 4 3 2 1 May-11 Price Daily May 04, 2011 - May 02, 2012, 5/04/11 = C$4.44

Sep-11

Jan-12 Indexed Price Relative

On 05/02/12 the S&P/TSX COMPS INDEX closed at 12094.38

Quarterly EPS 2011A 2012E 2013E

Q1 0.01 0.02 0.05

Q2 0.03 0.03 0.05

Q3 0.05 0.03 0.05

Q4 -0.00 0.03 0.06

Financial and valuation metrics Year EPS (CS adj.) (US$) Prev. EPS (US$) P/E (x) P/E rel. (%) Revenue (US$ m) EBITDA (US$ m) OCFPS (US$) P/OCF (x) EV/EBITDA (current) Net debt (US$ m) ROIC (%) Number of shares (m) BV/share (Next Qtr., US$) Net debt (Next Qtr., US$ m) Net debt/tot cap (Next Qtr., %)
Source: Company data, Credit Suisse estimates.

12/11A 0.09 33.3 233.6 530.4 332.9 0.18 12.0 9.3 164 6.25 957.19 2.1 305.5 15.2

12/12E 12/13E 0.11 0.21 27.1 14.4 205.2 126.0 619.6 839.6 365.8 557.0 0.29 0.38 10.5 8.1 8.5 5.6 266 509 5.70 7.83 IC (current, US$ m) EV/IC (x) Dividend (Next Qtr., US$) Dividend yield (%)

12/14E 0.31 9.9 95.1 1,037.6 720.3 0.47 6.5 4.3 252 10.94 2,157.40 1.4

DISCLOSURE APPENDIX CONTAINS ANALYST CERTIFICATIONS AND THE STATUS OF NON-US ANALYSTS. U.S. Disclosure: Credit Suisse does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision.

CREDIT SUISSE SECURITIES RESEARCH & ANALYTICS

BEYOND INFORMATION Client-Driven Solutions, Insights, and Access

03 May 2012

Investment summary
We are reinstating coverage of Uranium One Inc. (UUU.TO) with an Outperform rating and 12-month target price of C$4.50/share. In our view, we are in the early stages of a positive turn in market sentiment towards uranium and uranium equities that will see a recovery in the spot uranium price and a gradual return to historical valuations for uranium equities of 1.2-1.4x on P/NAV (peak valuation 1.6x) vs. 1x currently. From our perspective, we base changes in market sentiment on key industry catalysts: (i) partial restart of Japanese nuclear capacity; (ii) resumption of approvals for new nuclear reactors in China; (iii) expiry of the HEU supply agreement in 2013; and (iv) slower production growth rates from Kazakhstan. UUU is well positioned within the global uranium space as one of the largest publically traded producers, a rising uranium production profile, low-cost ISR operations, and a uranium contract book highly levered to the spot uranium price. Our target price on UUU of $4.50/share is based on a 1.2x our cash-adjusted NAV estimate (C$3.57/share). Our target multiple reflect the low-end of historical P/NAV multiples for uranium producers of 11.6x and are in-line for UUU relative to its closest peers, Cameco Corp. and Paladin Energy Ltd.

Uranium valuations have substantially compressed

Exhibit 1: Uranium peer group valuation table
Company Uranium One Inc. Price 1-May-12 2.95 22.47 1.88 1.65 1.65 Target Price 4.50 28.00 1.85 1.35 3.00

ROR (%) 53% 25% -2% -18% 82% 22% 35%

Investment rating OUTPERFORM NEUTRAL NEUTRAL UNDERPERFORM OUTPERFORM

Market Capitalization 2,824 8,881 734 864 1,399

EV/EBITDA 2012 2013 8.1 5.8 10.5 n/a 5.4 n/a 8.0 10.5 8.6 n/a 1.8 9.4 6.6 9.0

NAVPS 3.57 24.33 1.82 1.35 2.35

P/NAV 0.83 0.92 1.03 1.22 0.70 0.97 0.89

Implied uranium price 59.00 59.50 n/a 72.00 56.50 62.67 58.00

Cameco Corp. Denison Mines Ltd. ERA Ltd. Paladin Energy Ltd. Average (excl UUU) Average (excl UUU/ERA)

Source: Company data, Credit Suisse estimates

Inflection point could see valuations return to historical average 1.2-1.4x (peak 1.6x) Although relative valuations are rich on traditional metrics (P/NAV, EV/EBITDA) vs. the peer group of other metals (see Exhibit 3), we believe uranium equities will continue to trade at premium based on scarcity value, lack of investment alternatives and the relatively high barriers to entry associated with uranium mining.
Exhibit 2: Historical implied uranium price
Uranium 175 CCO UUU PDN

Uranium equities historically trade 1.4-1.6x on P/NAV

Exhibit 3: Uranium equity valuations vs. peer metals

1.0 0.9 0.8 0.7 0.6 0.5
Iron Ore PGM's Base Metals/Diversifieds Gold (Intermediate and Senior) Uranium Silver

150

125

75

P/NAV

100

Gold (Junior/Developer)

50

25

0.4 0.3
3 4 5 6 7 8 9 10 11 FY13 EV/EBITDA

Source: Company data, Credit Suisse estimates

Source: Company data, Credit Suisse estimates

Uranium One Inc. (UUU.TO)

03 May 2012

In the 6-8 months leading up to the Fukushima accident, UUU was the best performing uranium stock in the peer group. Post-Fukushima, shares of UUU have performed largely in-line with CCO and outperformed PDN and DML.
Exhibit 4: Indexed share performance pre-Fukushima Exhibit 5: Indexed share performance post-Fukushima

Source: Company data, Credit Suisse estimates

Source: Company data, Credit Suisse estimates

UUU looking to another year of production growth

UUU is targeting another year of production growth with FY12 attributable share of 11.6Mln lbs U3O8 (+9% YoY) at an average cash cost of $19/lb sold. FY13 attributable share is estimate to grow a further +7.8% YoY to 12.5Mln lbs U3O8. Further, we estimate that in five years, UUU sales will reach roughly half those of CCO vs. 35% in FY12.
Exhibit 6: UUU uranium production by mine
Kazakhstan Mkuju River Honeymoon Powder River Basin Cash cost (rhs)

Exhibit 7: Uranium sales (CCO, UUU, and PDN)

CCO.TO UUU.TO PDN.TO

20 18 16 14

25

40,000

35,000

20

30,000

25,000

12 10 8 6 4 2 2009A 2010A 2011A 2012E 2013E 2014E 2015E 2016E

15
20,000

10

15,000

10,000

5
5,000

2007A 2008A 2009A 2010A 2011A 2012E 2013E 2014E 2015E 2016E

Source: Company data, Credit Suisse estimates

Source: Company data, Credit Suisse estimates

Low cost position; industry leading margins

With average cash costs historically in the range of $16-20/lb uranium produced, UUU remains the lowest cost producer among its established industry peers. As a result, UUU generates the strongest EBITDA on a per pound (sold) basis. Despite being a low-cost producer, UUU has faced challenges related to sulphuric acid shortages at its Kazakhstan operations, which is key to the ISR uranium extraction process. Although supply is not an issue currently, UUU has identified logistical and transport issues which influence the availability of sulphuric acid to its mines. In 2011, domestic sulphuric acid supplies in Kazakhstan were supplemented by imports from Russia, which constituted approximately 36% of sulphuric acid delivered to UUUs mines. FY12 cash costs $19/lb.

Uranium One Inc. (UUU.TO)

03 May 2012

Exhibit 8: EBITDA/Lb of uranium

CCO UUU PDN Ux-Spot Ux-LT

Exhibit 9: Uranium cash costs (US$/lb)

CCO UUU PDN

60

120

45 40

50

100

35 30 25

40

80

30

60 20

20

40

15 10

10

20 5

2007A 2008A 2009A 2010A 2011A 2012E 2013E 2014E 2015E 2016E

2007A 2008A 2009A 2010A 2011A 2012E 2013E 2014E 2015E 2016E

Source: Company data, Credit Suisse estimates

Source: Company data, Credit Suisse estimates

Well positioned for leverage to underlying

We estimate UUU offers investors the highest leverage to spot uranium prices relative to its closest peers (Paladin Energy, Cameco, Denison, and ERA). UUUs average realized price is highly correlated to spot prices (90%), whereby sales contracts normally reference average market prices up to 3 months before delivery. As a result, we see below-average market prices in a rising uranium price environment, and the opposite vice-versa during periods of falling market prices. As customary in the majority of uranium sales contracts, delivery schedules are highly discretionary at the customer and as such vary significantly from quarter-to-quarter. Our principle method of valuation is the discounting of unlevered after-tax free cash flows using a base discount rate of 9% and Kazakhstan country risk premium of 1%, which we calculate using default spread over a default free government bond rate. Exhibit 10 illustrates UUUs net asset value (NAV) using normalized uranium price deck and various discount rates. We estimate a 100bps change in the Kazakhstan country risk premium impacts NAV by 160bps. Similarly, a 100bps change in the base case discount rate impact NAV by 130bps.
Exhibit 10: Net asset value sensitivity to uranium price and discount rate
40 50 3.57 0% 1.96 4.00 4% 1.31 2.80 6% 1.09 2.39 8% 0.92 2.07 10% 0.78 1.81 12% 0.67 1.60 15% 0.54 1.35 20% 0.40 1.06 *Kazakhstan country risk premium add: 1%
Source: Company data, Credit Suisse estimates

UUU is roughly 90% exposed to spot prices

Uranium price (US$/lb) 60 70 80 6.04 8.08 10.11 4.29 5.78 7.27 3.69 5.00 6.30 3.22 4.37 5.53 2.84 3.87 4.90 2.53 3.45 4.38 2.16 2.96 3.77 1.72 2.37 3.03

90 12.15 8.77 7.61 6.68 5.93 5.31 4.57 3.69

100 14.18 10.25 8.90 7.82 6.95 6.23 5.37 4.34

Stronger balance sheet required for next growth phase

In December 2011, UUU issued ruble-denominated bonds with an aggregate principal amount of $463.5Mln (RUB14.3Bln). In connection with the offering, UUU entered into a RUB/USD cross-currency interest rate swap agreement, creating a synthetic US dollar instrument with an interest rate of 6.74%, bringing UUUs balance sheet at end-2011 to a

Base case DR*

Uranium One Inc. (UUU.TO)

03 May 2012

cash balance of $619Mln (or net debt $164Mln, including convertible debt) and a D/E ratio of 29% (or 39% including convertible debt). We estimate further capital raising of $400500Mln would be required to complete the Mantra acquisition option if all conditions precedent, including minority shareholder approval, are met.
Exhibit 11: Cash flow summary incl. Mantra option
1,500
Operating cash flow Capital expenditures+Acquisitions Debt/equity capital raised Cash and equivalents (RHS)

Exhibit 12: Cash flow summary excl. Mantra option

1,500 1,500
Operating cash flow Capital expenditures+Acquisitions Debt/equity capital raised Cash and equivalents (RHS)

1,500

1,000

1,250

1,000

1,250

500

1,000

500

1,000

750

750

(500)

500

(500)

500

(1,000)

250

(1,000)

250

(1,500)
2009A 2010A 2011A 2012E 2013E 2014E 2015E 2016E

(1,500)
2009A 2010A 2011A 2012E 2013E 2014E 2015E 2016E

Source: Company data, Credit Suisse estimates

Source: Company data, Credit Suisse estimates

Still acquisitive with a majority shareholder

JSC Atomredmetzoloto (ARMZ) currently owns 51% equity interest in UUU having gone through a UUU shareholder approved asset swap where under ARMZ acquired a controlling stake in UUU in exchange for cash and ownership of two projects (Akbastau and Zarechnoye). In addition, UUU has undertaken five major transactions in the past five years. Currently, UUU sources all its commercial production in Kazakhstan, with FY12 marking the introduction of two new mines (Honeymoon, Australia and Willow Creek, USA) as UUU begins to diversify its production base. We believe continued growth through M&A and outside of Kazakhstan is a prudent strategy that balances asset opportunities, operating challenges, and strategic sensibility. Long-term, the optionality on acquiring/developing Mkuju River (Tanzania) would bring non-Kazakhstan uranium production to about 20% of steady-state production.
Exhibit 13: Selected uranium transactions (2006-present)
y = 0.1581x - 0.4708

5 major transactions over last five years

35 30

Transaction valuation (US$/lb)

Jun-2007: SxR/EMC ($1.7Bln)

25 20 15 10 5 -

Jun-2009: UUU/Karatau ($0.4Bln) Feb-2007: SxR/UrAsia ($2.9Bln)

Dec-2010: ARMZ/Mantra ($1.2Bln)

Jan-2012: UUU/Mantra 13.9% ($0.15Bln) Jun-2010: UUU/ARMZ ($0.4Bln)

20

40

60

80

100

120

140

160

Uranium spot price (US$/lb)

Source: Company data, Credit Suisse estimates

Uranium One Inc. (UUU.TO)

03 May 2012

Uranium market outlook: sentiment turning

In our view, the social and political tolerance for new nuclear build remains dynamic and because of the unique technological and environmental challenges facing uranium/nuclear, industry sentiment continues to be subject to public opinion risks. We remain constructive on the outlook for new reactor build in China, Russia, and India, where we forecast 38GWe new nuclear capacity over the next five years (2012-2016) and total global new capacity of 49GWe. We are negative on the outlook for nuclear capacity in Germany, where we assuming full phase out in-line with government policy initiatives. Following Fukushima, several energy and nuclear regulatory bodies, along with utilities undertook significant nuclear safety reviews, regulatory changes, and reactor stress tests. Even before completing these reviews, some countries had closure plans well underway, largely due to expiry of useful life and policy changes due to changeover in government. Since Fukushima, several countries (mostly in the developed world) have re-affirmed their favorable intentions towards new nuclear. A summary of key changes by country, as summarized by the World Energy Council, is seen below.
Exhibit 14: Nuclear energy policy changes after Fukushima (as of January 2012)
Countries with existing nuclear installations: Use of nuclear power in principle not being contested Argentina, Armenia, Belgium, Brazil, Bulgaria, Canada, China, Czech Republic, Finland, France, Hungary, India, Iran, Mexico, Netherlands, Pakistan, Romania, Russia, Slovakia, Slovenia, South Africa, South Korea, Spain, Sweden, Taiwan, Ukraine, United Kingdom, United States Japan Germany, Switzerland

We forecast 38GWe new nuclear capacity over the next five years (2012-2016)

Use of existing nuclear power being contested Use of existing nuclear power being phased-out Construction projects not being contested Construction projects cancelled, scaled-back or delayed Plans/proposals for new constructions not being contested

Countries currently constructing new nuclear installations: Argentina, Brazil, Bulgaria, China, Finland, France, India, South Korea, Pakistan, Russia, Slovakia, Taiwan, Ukraine, United States Japan

Countries with plans and/or proposals to construct new nuclear installations: United States, France, Russia, South Korea, Ukraine, Canada, China, United Kingdom, Sweden, Spain, Belgium, Taiwan, India, Czech Republic, Finland, Bulgaria, Brazil, Hungary, Slovakia, South Africa, Romania, Argentina, Pakistan, Slovenia, Netherlands, Armenia, Saudi Arabia, Poland, UAE, Turkey, Vietnam, Belarus, Bangladesh, Indonesia, Lithuania, Egypt, Kazakhstan, Thailand, Chile, Malaysia, Israel Germany, Switzerland, Italy

Plans/proposals for new constructions prohibited

Source: World Energy Council (World Energy Perspective: Nuclear Energy One Year After Fukushima, March 2012)

We believe a number of positive developments are building in the uranium and nuclear sector over the next 12-18 months, which in our view, serves to potentially turn sentiment in nuclear energy towards a more favorable path and in turn, positively re-rate uranium equities. Our views are based on: (i) partial restart of Japanese nuclear capacity; (ii) resumption of approvals for new nuclear reactors in China; (iii) expiry of the HEU supply agreement in 2013); and (iv) slower production growth rates from Kazakhstan. Over the last five years, Kazakhstan (currently the worlds largest uranium producer) has grown production an average of 30% (CAGR). Last year, we estimate Kazakhstan grew production 9.8% YoY to 50.6Mln lbs, U3O8 and has targeted 9.7% YoY growth in 2012 (to 55.5Mln lbs). As of 1Q12, Kazakhstan produced 12.1Mln lbs, implying a run-rate of 48.5Mln lbs (or largely flat vs. 2011).

Uranium One Inc. (UUU.TO)

03 May 2012

Exhibit 15: Net changes in number of reactors (March 10, 2011 to April 2, 2012)
Reactors 15 9 20 1 51 23 2 33 15 17 104 153 Operating 3 -8 1 -4 2 1 1 Under Construction -1 2 -1 -2 1 -1 Planned 1 -1 -2 -1 16 -9 -2 2 2 1 2 158 -4 -6 -6 5 324 4 Proposed 10

China Germany India Iran Japan South Korea Pakistan Russia Saudi Arabia Ukraine United Kingdom USA Vietnam Other Net change Pre-Fukushima

-2 -8 443

2 0 62

Change (%)

-1.8%

0.0%

1.3%

1.5%

Source: World Energy Council (World Energy Perspective: Nuclear Energy One Year After Fukushima, March 2012), World Nuclear Association

Prior to the events in Fukushima, nuclear energy in Japan accounted for ~30% of electricity requirements (March 2011). A key policy shift in the months ensuing calls for a reduction in future dependence and a recommendation that nuclear power's contribution to electricity be targeted anywhere between 0-36% in the medium term. Meanwhile, the last of Japans 51 operable reactors is expected to be shut in early May for scheduled maintenance and safety checks. In March 2012, the Japan Atomic Industrial Forum (JAIF) predicted a 10-12% electricity shortage in summer 2012. We assume Japan eventually returns to ~30% nuclear capacity factor beginning in 2012 (16 reactors out of 51). The Japanese central government has approved the restart of Kansai Electrics Ohi 3 & 4 reactors, with prefecture approval in the waiting. Following Fukushima, the Chinese government suspended its approval process pending a review of plant location, layout, regulatory controls, and safety. China currently has 15 nuclear reactors in operation, more than 26 under construction, and 51 planned. Additional reactors are planned, including some of the world's most advanced, to give a five- or six-fold increase in nuclear capacity to at least 60GWe by 2020. By the end of Chinas 12th Five-Year Plan (2015), some 25 GWe of new capacity is planned to be operational, making some 40-45GWe more may be added by the end of the 13th Five Year Plan (2019). We expect a turn in uranium prices toward end of the year The spot uranium price has been relatively stable and range-bound in the $50-55/lb range over the past ten months. Near-term, we see continued uncertainty driven by limited longterm contracting, concerns about possible excess German/Japanese inventories, US DOE materials into the market, and general sentiment. We estimate prices in the current range will provide a disincentive for new mines and brownfield expansion. Medium and longterm, we believe the uranium price will stage a recovery to a level that reflects the incentive price for production expansion and exploration, averaging between $65-70/lb over the next five years. Our peak price of $75/lb in 2014 coincides with expiration of the US-Russia HEU supply agreement. Supporting of view, we estimate the market will be in deficit by approximately 6Mln lbs (2% of global demand) in 2014, although it is highly unlikely in our view that prices will return to $100+/lb level seen in 2007.

Uranium One Inc. (UUU.TO)

03 May 2012

Since our last update, only modest changes to our supply-demand forecasts Between 2012-2020, we estimate total uranium demand of 1.97Bln lbs U3O8, down 4% vs. our previous forecast of 2.06Bln lbs. Our new demand forecasts take into account revised assumptions for Japanese restarts and full decommissioning in Germany. In summary, we forecast a net addition of 68 reactors to the current global fleet of 435 in operation by 2020. Between 2012-2020, we estimate total uranium supply of 2.1Bln lbs U3O8, a slight increase compared to our previous estimate of 2.08Bln lbs (or +0.8%), which takes into account lower supply from higher-cost producers resulting from weaker uranium prices, regulatory delays, and slower construction schedules for new mines, offset by updated supply from Roughrider mine (Canada) and US DOE material. We believe future supply trends will focus on uranium deposits of the highest quality in terms of tonnage, grade, cost, and ability to finance. In total, between 2012-2020, we estimate the global uranium market will largely in balance (deficits occurring in 2014) with more significant deficits occurring after 2022.
Exhibit 16: Credit Suisse uranium supply/demand summary
40 30
Net implied surplus (deficit) based on available supply Uranium price forecast (US$/lb of U3O8)

120

Net surplus (deficit) in Mln lbs U3O8

100 20 80 10 (10) 40 (20) 20 (30) (40) 60

Source: Company data, Credit Suisse estimates

Uranium One Inc. (UUU.TO)

03 May 2012

Exhibit 17: Credit Suisse Uranium supply/demand summary

all figures in Mln lbs U3O8, unless noted
Uranium mine production North America South America Western Europe Eastern Europe Kazakhstan Russia & Other FSU Africa Asia & Oceana Other (adjustments) Mine production growth rate Secondary supply Total supply growth rate Nuclear power plant (NPP) forecasts (units) China India Japan Russia U.S.A. Other Total growth rate Uranium demand analysis Existing NPP capacity New NPP capacity Strategic inventory build Total demand growth rate Market surplus (deficit) Based on total supply Surplus (deficit) as % of global demand Excl Russia/supplier inventories Surplus (deficit) as % of global demand Excluding secondary sources Surplus (deficit) as % of global demand 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

26.2 0.9 0.5 22.2 18.9 19.0 27.7 115.4 9.9% 54.3 169.6 -1.1%

29.8 0.9 0.5 36.5 19.6 19.6 27.4 134.3 16.4% 65.9 200.1 18.0%

28.1 0.4 0.0 46.3 22.2 23.0 25.6 145.6 8.4% 64.3 209.9 4.9%

26.9 0.7 0.0 48.1 22.5 26.6 21.3 146.0 0.3% 57.9 203.9 -2.9%

25.5 0.7 0.0 50.3 22.8 33.9 24.9 158.1 8.2% 59.2 217.2 6.6%

25.2 0.7 0.0 50.3 23.1 37.9 23.2 160.4 1.5% 59.7 220.1 1.3%

27.4 0.7 0.0 50.6 23.8 41.2 22.0 165.6 3.2% 30.9 196.5 -10.7%

30.5 0.7 0.0 58.5 24.6 45.4 21.9 181.5 9.6% 30.9 212.4 8.1%

39.3 0.7 0.0 61.1 25.5 55.1 21.2 202.9 11.8% 32.2 235.1 10.7%

44.9 0.7 0.0 59.5 26.5 54.8 20.4 206.9 2.0% 37.2 244.1 3.8%

48.3 0.7 0.0 55.9 26.6 55.0 19.7 206.1 -0.4% 42.2 248.2 1.7%

51.1 0.7 0.0 56.4 26.7 56.7 22.7 214.3 4.0% 42.2 256.5 3.3%

54.5 0.0 56.4 26.8 59.3 26.7 223.8 4.4% 42.8 266.6 3.9%

11.0 17.0 53.0 31.0 104.0 225.0 441.0 0.0%

11.0 17.0 53.0 31.0 104.0 225.0 441.0 0.0%

18.0 22.0 51.0 34.0 104.0 212.0 441.0 0.0%

15.0 20.0 51.0 32.0 104.0 211.0 433.0 -1.8%

18.0 22.0 51.0 34.0 104.0 212.0 441.0 1.8%

22.0 23.0 51.0 35.0 104.0 218.0 453.0 2.7%

27.0 24.0 51.0 37.0 104.0 220.0 463.0 2.2%

32.0 25.0 51.0 39.0 104.0 221.0 472.0 1.9%

37.0 27.0 51.0 41.0 104.0 222.0 482.0 2.1%

43.0 29.0 51.0 43.0 104.0 223.0 493.0 2.3%

49.0 33.0 51.0 45.0 105.0 224.0 507.0 2.8%

55.0 37.0 51.0 47.0 105.0 225.0 520.0 2.6%

60.0 41.0 51.0 49.0 106.0 227.0 534.0 2.7%

174.3 174.3 -0.1%

175.4 175.4 0.6%

178.2 12.0 190.2 8.5%

175.1 18.0 192.3 1.1%

156.0 19.0 4.7 178.1 -7.4%

158.7 23.4 11.6 192.2 7.9%

162.6 30.1 11.6 202.8 5.5%

164.7 36.6 11.6 211.5 4.3%

165.4 46.8 11.6 222.6 5.3%

166.0 51.5 11.6 228.0 2.4%

166.7 60.8 11.6 238.0 4.4%

167.4 63.6 11.6 241.5 1.5%

168.0 74.5 11.6 253.0 4.8%

(5) -3% (10) -6% (59) -34%

25 14% 13 7% (41) -23%

20 10% 14 7% (45) -23%

12 6% 12 6% (46) -24%

39 22% 39 22% (20) -11%

28 15% 28 15% (32) -17%

(6) -3% (6) -3% (37) -18%

1 0% 1 0% (30) -14%

12 6% 12 6% (20) -9%

16 7% 11 5% (21) -9%

10 4% 0 0% (32) -13%

15 6% 5 2% (27) -11%

14 5% 4 1% (29) -12%

Source: Company data, Credit Suisse estimates

Uranium One Inc. (UUU.TO)

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Valuation
Our target price on UUU of $4.50/share is based on a 1.2x our cash-adjusted NAV estimate (C$3.57/share). Our target multiple reflect the low-end of historical P/NAV multiples for uranium producers of 1-1.6x and are in-line for UUU relative to its closest peers, Cameco Corp. and Paladin Energy Ltd. Our primary valuation of uranium producers is based on the net present value (NPV) of its mining assets, which we derive using a discounted cash flow analysis (DCF) of mining operations, the market value of interests in listed equity investments, and valuation adjustments. The DCF analysis is applied to after-tax, unlevered free cash flows derived from the underlying life-of-mine plans of each operation and associated technicaleconomic parameters. The life-of-mine plans for each operation have been interpreted from UUUs declared reserves and resources statement, which are calculated using the JORC/43-101/Russian C1 & C2 codes for reporting mineral reserves and resources. Our base-case discount rate of 9% (real-terms) represents what we estimate is the average cost of equity for global mining projects. In addition, our modeling assumes all measured and indicated resources are converted into reserves and conversion of inferred resources of 80-100%. It should be noted that the conversion of resources into reserves requires, among other things, additional definition drilling and infrastructure to demonstrate the economic viability of exploitation. Under these assumptions, our life-of-mine plans include projected expansion and ongoing capital expenditure based on our interpretation of the historical ratio of capital expenditure per pound of uranium production. To calculate NPV, our discount rate for UUUs various mining assets incorporate the following assumptions: Minimum acceptable rate of return of 9% (real-terms) New project risk rate is between 0-4% (real-terms) Country risk rate of 0-4% (real terms) Kazakhstan 1%

Exhibit 18: Net asset value summary

Share price (C$/share) 2.95 Net Asset Value Summary Long-term U3O8 spot price 65 Long-term U3O8 contract price 65 Long-term H2SO4 price 125 Base case discount rate 9% Kazakhstan country risk premium 1% Net Asset Value (NAV) based on unlevered after-tax free cash flows Beneficial Discount all figures in US$Mln interest rate 70% 10% Akdala 70% 10% South Inkai 30% 10% Kharasan 50% 10% Karatua 50% 10% Akbastau 49.67% 10% Zarechnoye 100% 10% Mkuju River 100% 9% Honeymoon 100% 9% Powder River Basin Other Gross asset value (US$Mln) - Total debt + Cash + Uranium in inventory 3.456 Mln lbs +/- Adjustments Net asset value (US$Mln) Fully diluted shares outstanding Net asset value (US$/share) Exchange rate (US$ per CAD$) Net asset value (C$/share)

NPV (US$Mln) 309 763 254 451 490 342 206 42 131 125 3,112 568 517 156 3,216 957 3.36 0.9400 3.57

Share (%) 10% 25% 8% 14% 16% 11% 7% 1% 4% 4% 100%

NPV (US$/share) 0.32 0.80 0.27 0.47 0.51 0.36 0.22 0.04 0.14 0.13 3.25

Source: Company data, Credit Suisse estimates

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Mantra value option: Catalyst for UUUs next mine

A revised agreement with ARMZ gives UUU a call option to acquire Mantra from ARMZ, exercisable at any point up to June 7, 2013, for a purchase price equal to ARMZs acquisition cost of Mantra of ~$1Bln, including any additional expenditures contributed by ARMZ to Mantra or its properties and interest thereon at a rate of 2.65% per annum. On January 16, 2012, UUU announced that it had elected to pay $150Mln to ARMZ which extended the term of the Mantra call option to June 7, 2013 (from June 7, 2012) and resulted in UUU acquiring a 13.9% stake in Mantra from ARMZ. The agreement also provides ARMZ with a put option to sell Mantra to UUU at the end of the option term if all conditions precedent, including minority shareholder approval, are met.
Exhibit 19: Mkuju River Project NPV
40 50 0.22 0% 0.25 0.71 4% (0.02) 0.25 6% (0.09) 0.12 8% (0.14) 0.03 10% (0.17) (0.04) 12% (0.19) (0.08) 15% (0.21) (0.13) 20% (0.21) (0.16) *Kazakhstan country risk premium add: 1% Discount rate* Uranium price (US$/lb) 60 70 80 1.16 1.62 2.08 0.51 0.78 1.05 0.33 0.54 0.74 0.19 0.36 0.52 0.10 0.23 0.36 0.03 0.14 0.24 (0.04) 0.04 0.12 (0.11) (0.05) 0.00 90 2.53 1.31 0.95 0.69 0.50 0.35 0.20 0.05 100 2.99 1.58 1.16 0.86 0.63 0.46 0.28 0.11

Exhibit 20: Mkuju River Project NPV (incl acquisition cost)

40 50 (0.87) 0% (0.83) (0.38) 4% (1.10) (0.84) 6% (1.18) (0.97) 8% (1.23) (1.06) 10% (1.26) (1.12) 12% (1.28) (1.17) 15% (1.30) (1.21) 20% (1.30) (1.25) *Kazakhstan country risk premium add: 1% Discount rate* Uranium price (US$/lb) 60 70 80 0.08 0.53 0.99 (0.57) (0.31) (0.04) (0.76) (0.55) (0.34) (0.89) (0.73) (0.56) (0.99) (0.86) (0.72) (1.06) (0.95) (0.84) (1.13) (1.05) (0.97) (1.19) (1.14) (1.09) 90 1.45 0.23 (0.13) (0.40) (0.59) (0.73) (0.88) (1.03) 100 1.90 0.49 0.08 (0.23) (0.46) (0.62) (0.80) (0.98)

Source: Credit Suisse estimates

Source: Credit Suisse estimates

Technical report on Mantra assets expected 3Q12

The Mkuju River Project is a uranium development project located in southern Tanzania with current activities focused on licensing and permitting. Additional exploration work on the project is being conducted in the area of the expected Special Mining License. During 4Q11, a single rig was operated, with a second rig being mobilized to the site. Drilling was focused on brownfields exploration and resource upgrade drilling to enable conversion of inferred material within the pit designs to an indicated classification. A definitive feasibility study (DFS) relating to Mkuju River is being prepared by UUU and is expected to be finalized by 1H12 and announced in 3Q12.
Exhibit 21: Mkuju River Mineral Resource Estimate (September 27, 2011)
Mln tonnes 80.3 59.3 139.6 42.5 Uranium grade Contained U3O8 (Mln lbs) (U3O8%) 0.0313% 55.4 0.0291% 38.0 0.0303% 93.3 0.0278% 26.0 Ore value per tonne (@$65/lb) 44.85 41.70 43.42 39.84

Measured Indicated Measured and indicated* Inferred

Source: Company data, Credit Suisse estimates

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Financials
Exhibit 22: Income statement
(US$ millions)
Revenues Operating expenses Depreciation and depletion G&A Exploration Total operating expenses Earnings from operations Interest & other income (expense) Earnings before taxes & minority interests Income taxes Minority interest Other Net earnings EPS (Basic) - Reported Adjustments EPS (Basic) - Adjusted EPS (Diluted) - Reported Adjustments EPS (Fully diluted) - Adjusted Average shares outstanding (Basic) Average shares outstanding (Fully diluted) 2008A 149.8 30.5 22.6 48.7 14.9 116.6 33.2 (3,336.2) (3,303.0) 44.2 (1,013.6) (2,333.6) (4.98) 4.97 (0.02) (4.98) 4.97 (0.02) 468.4 468.4 2009A 152.0 51.0 46.4 37.9 8.8 144.1 7.9 (230.8) (222.9) (185.5) (0.6) (38.1) (0.08) (0.08) (0.08) (0.01) (0.09) 475.6 475.6 2010A 326.9 92.0 97.4 55.9 5.4 250.8 76.1 (192.0) (115.9) 73.8 (189.7) (0.31) (0.31) (0.31) 0.05 (0.26) 611.6 611.6 2011A 530.4 142.6 125.2 50.4 4.5 322.7 207.7 (56.4) 151.3 62.9 88.4 0.09 0.02 0.12 0.09 0.02 0.12 957.2 957.2 2012E 619.6 211.8 173.0 35.0 7.0 426.8 192.8 (37.7) 155.0 46.5 108.5 0.11 0.11 0.11 0.11 957.2 957.2 2013E 839.6 240.6 182.8 35.0 7.0 465.5 374.2 (37.8) 336.3 100.9 235.4 0.21 0.21 0.21 0.21 1,103.0 1,103.0 2014E 1,037.6 275.3 182.8 35.0 7.0 500.2 537.4 (40.9) 496.6 149.0 347.6 0.31 0.31 0.31 0.31 1,123.9 1,123.9

Source: Company data, Credit Suisse estimates

We forecast UUUs share of capital expenditure in FY12 of ~$213Mln. We assume UUU will successfully exercise the Mkuju River Put/Call option in 2Q13 and fund its portion (~$890Mln) with cash and equity raise ($500Mln), though numerous funding alternatives exist given UUUs strong balance sheet and conservative D/E ratio (currently 29%). For conservatism, we assume an equity-raise in 2Q13 at the current share price of ~$3/share.
Exhibit 23: Cash flow statement
(US$ millions)
Net earnings Depreciation, depletion and reclamation Future income tax recovery Minority interests Other Gross operating cash flow Changes in non-cash working capital Other Cash provided by operating activities Additions to PP&E Acquisition of net business assets Increase in LT receivables, investments & other Disposal of assets & other Cash provided by investing activities Net increase (decrease) in debt Shares issued Subsidiary issue of shares Dividends to common shareholders Other Cash provided by financing activities Effects of exchange rate fluctuations Net change in cash & equivalents Cash & equivalent (B.O.P.) Cash & equivalent (E.O.P.) Gross cash flow (GCF) per share Operating cash flow per share Free cash flow per share 2008A (2,334) 23 (1,014) 3,328 3 33 36 (217) 123 (93) 18 8 60 86 (12) 17 160 176 3.4 0.01 36.1 0.08 (180.6) (0.39) 2009A (38) 46 (206) 214 16 (10) 6 (68) 16 (52) 12 1 13 5 (28) 176 148 15.7 0.03 6.1 0.01 (62.1) (0.13) 2010A (190) 97 25 160 92 (46) 46 (108) (10) (112) (14) (244) 164 35 (493) 648 355 11 167 148 324 92.4 0.15 46.4 0.08 (554.9) (0.91) 2011A 88 125 (12) 17 219 (49) 170 (152) (17) 2 6 (161) 305 (18) 287 (2) 295 324 619 219.1 0.23 169.7 0.18 17.8 0.02 2012E 109 173 282 282 (213) (170) (383) (102) 619 517 281.6 0.29 281.6 0.29 68.2 0.07 2013E 235 183 418 418 (272) (890) (1,162) 500 500 (244) 517 274 418.3 0.38 418.3 0.38 146.4 0.13 2014E 348 183 530 530 (273) (273) 257 274 531 530.4 0.47 530.4 0.47 257.1 0.23

Source: Company data, Credit Suisse estimates

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UUU had a cash balance of $619Mln at the end of 2011 (net debt $112/Mln including convertible debt) and a D/E ratio of 29%. We forecast a cash balance of $517Mln at the end of 2012 (net debt $202Mln including convertible debt) and a D/E ratio of 27%.
Exhibit 24: Balance Sheet
(US$ millions)
Cash & equivalents Accounts receivable, net Inventories Supplies and prepaid expenses Current portion of LT recievable & other Total current assets Property, plant and equipment Long-term receivables, investments, & other Goodwill Total assets Acounts payable and accrued liabilities Income Taxes payable Current portion of long term debt Other Total current liabilities Long term debt Convertible debt (December 31, 2011) Convertible debt (February 15, 2020) Convertible debt (March 12, 2015) Other liabilities Deferred taxes Minority Interest Share capital Contributed surplus Retained earnings Convertible Debentures Total liabilities & shareholder equity 2008A 176 40 17 31 265 1,285 77 1,627 47 13 60 61 118 62 375 3,523 132 (2,750) 46 1,627 2009A 148 42 72 24 287 1,748 114 2,149 66 2 64 137 268 141 78 181 3,823 133 (2,522) 46 2,149 2010A 324 103 91 14 532 2,730 107 3,369 83 14 237 333 206 116 377 5,325 115 (3,194) 90 3,369 2011A 619 138 91 2 850 2,205 97 151 3,303 58 11 52 13 135 516 214 107 337 5,325 193 (3,525) 3,303 2012E 517 138 91 2 748 2,246 267 151 3,412 58 11 52 13 135 516 214 107 337 5,325 193 (3,416) 3,412 2013E 274 138 91 2 504 2,335 1,157 151 4,147 58 11 52 13 135 516 214 107 337 5,825 193 (3,181) 4,147 2014E 531 138 91 2 762 2,425 1,157 151 4,495 58 11 52 13 135 516 214 107 337 5,825 193 (2,833) 4,495

Source: Company data, Credit Suisse estimates

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Operations
Uranium One Inc. (UUU) is Canadian-based and one of the worlds largest publicly-traded uranium producers with a primary listing on the Toronto Stock Exchange and a secondary listing on the Johannesburg Stock Exchange. UUU has a portfolio of assets, primarily located in Kazakhstan, as well as the US and Australia, and is operator of the Mkuju River Project in Tanzania. UUUs major shareholder (51%) is JSC Atomredmetzoloto (ARMZ) which is a wholly-owned subsidiary of the Russian State Corporation for Nuclear Energy (Rosatom).
Exhibit 25: Uranium One operations

Source: Company data, Credit Suisse estimates

Operating Mines
Akdala Uranium Mine Akdala is UUUs flagship acid in-situ recovery (ISR) uranium mine located in the Suzak region of South Kazakhstan. A 70%-interest is owned by UUU through the Betpak Dala joint venture, and the other 30%-interest is owned by KazAtomProm, the Kazakhstan state-owned uranium miner and exporter. Pursuant to the terms of its subsoil use contract, the permitted production rate at the Akdala Mine is 2.6Mln lbs U3O8 per year. UUUs attributable production at Akdala in 2011 was 2.03Mln lbs U3O8. The concentration of uranium in solution averaged approximately 67 mg/l and the average flow rate from the well fields was approximately 1,923 cubic metres/hr. The well installation program for 2012 provides for the installaion of 274 wells, compared to 226 installed in 2011. UUUs attributable production guidance at Akdala for 2012 is 1.8Mln lbs U3O8 at an average cash cost of $16/lb. South Inkai Uranium Mine South Inkai is an operating ISR uranium mine located in the Suzak region of South Kazakhstan. A 70%-interest is owned by UUU through the Betpak Dala joint venture, and the other 30%-interest is owned by KazAtomProm. The design capacity of the South Inkai mine is 5.2Mln lbs per year. UUUs attributable at South Inkai in 2011 was 2.82Mln lbs U3O8. The concentration of uranium in solution averaged 59mg/l during 2011. Due to the additional well fields in

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production, the average flow rate increased significantly during 2011 to 3,505 cubic metres/hr in 4Q11, compared to 2,784 cubic metres/hr during 1Q11. UUUs attributable production guidance at South Inkai in 2012 is 3.4Mln lbs U3O8 at an average cash cost of $20/lb. Karatau Uranium Mine. UUU began accounting for Karatau on December 22, 2009. UUU's attributable production at Karatau in 2011 2.83Mln lbs U3O8. The concentration of uranium in solution averaged approximately 162 mg/l and the average flow rate from the well fields was 1,543 cubic metres/hr. The depth of the Karatau deposit is approximately 650-700 meters, compared to approximately 560 meters at South Inkai and 200 meters at Akdala. The average thickness of the Karatau ore zone varies between 10-17 meters, compared to 10-15 meters at South Inkai and 0.8-13 meters at Akdala. UUUs attributable production guidance at Karatau in 2012 is 2.6Mln lbs U3O8 at an average cash cost of $13/lb. Akbastau Uranium Mine The Akbastau Mine is a producing ISR uranium mine in Suzak District of southern Kazakhstan. Pilot production at the Akbastau Mine commenced on January 30, 2009, with UUU acquiring its 50% interest in the mine in December 2010. The production capacity of Akbastau is estimated to be 7.8Mln lbs per year, which is expected by 2016 on an annualized basis. Production from the Akbastau Mine in 2011 was 2.87Mln lbs U3O8 of which 1.44Mln lbs was attributable to UUU. UUUs attributable production guidance at Akbastau in 2012 is 1.5Mln lbs U3O8 at an average cash cost of $18/lb. Kharasan Uranium Mine Kharasan is an ISR uranium development project located in the Suzak region of South Kazakhstan. A 30%-interest is owned by UUU through the Kyzylkum joint venture, with a 30%-interest owned by KazAtomProm and a 40%-interest owned by Energy Asia Ltd. The project is currently being commissioned for an annual design capacity of 5.2Mln lbs U3O8, with a current installed capacity of 2.6Mln lbs. Pursuant to the terms of its subsoil use contract, Kharasan is allowed to ramp up production to 7.8Mln lbs/yr by 2014. As previously disclosed, performance of the well fields and uranium production has been below expectations. Several causes for underperformance of the well fields have been identified, including (i) lower than expected flow rates; (ii) sanding out of the production wells caused by the fine grain size; (iii) poor quality control over screen size utilized leading to a significant amount of well repair work; (iv) chemical plugging of screens caused by ineffective manual attempts to balance the well fields. We anticipate a slow ramp-up timetable, with UUUs attributable production guidance at Kharasan in 2012 of 0.4Mln lbs U3O8. Zarechnoye Mine The Zarechnoye Uranium Mine is an operating in situ recovery mine located in Kazakhstan, in the southern part of the Syrdaryinskaya Basin in the South Kazakhstan Oblast, approximately 200 km west of Shymkent and 450 km southeast of Kyzyl-Orda. Zarechnoye is a joint venture in which UUU has a 49.67% interest, acquired in December 2010. The remaining ownership interests are a 49.67% stake owned by Kazatomprom, the Kazakh State uranium company, and a 0.66% stake owned by the OJSC Karabaltinsky Mining Complex. The design capacity of Zarechnoye's processing facilities is approximately 2.5 million pounds (970 tons U) per year and it is expected that the annualized rate of production will reach this level in 2012.

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An area of Zarechnoye known as Zarechnoye South has not yet been developed and is expected to become operational beginning in 2014. Steady state production capacity at Zarechnoye South is expected to be 1.6 million pounds per year, bringing Zarechnoye's combined production capacity to approximately 4 million pounds per year.

Development Projects
The Honeymoon Uranium Project The Honeymoon Uranium Project, located in the uranium-producing state of South Australia, is an advanced in situ recovery (ISR) project. UUU owns 51% of the Honeymoon Uranium Project Joint Venture, which owns the Honeymoon Project. The remaining 49% of the joint venture in owned by Mitsui & Co., Ltd. Planned technical processes for uranium extraction have been confirmed through the operation of a demonstration plant and a field leach trial over an 18 month period. Steady state production levels are expected to be 880,000 pounds U3O8 per year. Powder River Basin Uranium Projects In January 2010, UUU completed the acquisition of 100% of the MALCO Joint Venture from wholly-owned subsidiaries of AREVA and lectricit de France (EDF). The assets of MALCO include the licensed and permitted Irigaray ISR central processing plant, the Christensen Ranch satellite ISR facility and associated uranium ore bodies located in the Powder River Basin of Wyoming. Willow Creek is expected to form the basis of the operating plan for UUUs projects in Wyoming. The existing central processing plant currently has a capacity of 1.3 million pounds of U3O8 per year, which is expected to be expanded to the licensed capacity of 2.5 million pounds per year.

Mkuju River Uranium Project

Uranium Ones 51% shareholder ARMZ acquired 100% interest in the Mkuju River Project by acquiring Mantra Resources Ltd in June 2011. As of June 2011, UUU is operator of the Mkuju River Project Project Overview The Mkuju River Project is a large scale uranium development project located in southern Tanzania. Current activity at the Project is focused on licensing and permitting. A definitive feasibility study relating to the Project is being prepared by UUU and is expected to be finalized by mid-2012. Put/Call Agreement ARMZ and UUU have entered into an Amended and Restated Put/Call Agreement. UUU has a call option to acquire Mantra from ARMZ, exercisable at any point within 12 months of closing (subject to extension) of the acquisition of Mantra by ARMZ. UUU has elected to pay US$150M to ARMZ which both extends the term of the option by one year to June 2013 and results in UUU acquiring a 13.9% stake in Mantra. For either the call or put option to be exercised, UUU minority shareholder approval will be required. The total purchase price to be paid upon exercise of either the put or call option will be equal to ARMZs acquisition cost of Mantra, including any additional expenditures and accrued interest of 2.65% per annum.

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Companies Mentioned (Price as of 02 May 12) Cameco Corporation (CCO.TO, C$23.05, NEUTRAL [V], TP C$28.00) Denison Mines Corp. (DML.TO, C$1.95, NEUTRAL [V], TP C$1.85) Energy Resources of Australia (ERA.AX, A$1.65, UNDERPERFORM [V], TP A$1.35) Paladin Energy Ltd. (PDN.TO, C$1.63, OUTPERFORM [V], TP C$3.00) Uranium One Inc. (UUU.TO, C$3.03, OUTPERFORM [V], TP C$4.50)

Disclosure Appendix
Important Global Disclosures I, Ralph M. Profiti, CFA, certify that (1) the views expressed in this report accurately reflect my personal views about all of the subject companies and securities and (2) no part of my compensation was, is or will be directly or indirectly related to the specific recommendations or views expressed in this report. See the Companies Mentioned section for full company names.
3-Year Price, Target Price and Rating Change History Chart for UUU.TO
UUU.TO Date 3/12/10 5/10/10 6/9/10 7/19/10 8/9/10 10/20/10 11/15/10 12/15/10 Closing Price (C$) 2.81 2.42 2.19 2.88 3.14 3.87 4.82 4.5 Target Price Initiation/ (C$) Rating Assumption 3.4 N 3.2 3.3 3.2 4.2 O 4.3 5.4 N R
8 7 6 5 5 4 3 3 2 C$ 1 3 3 N 3 4 4 O N R

Closing Price

Target Price

Initiation/Assumption

Rating

O=Outperform; N=Neutral; U=Underperform; R=Restricted; NR=Not Rated; NC=Not Covered

The analyst(s) responsible for preparing this research report received compensation that is based upon various factors including Credit Suisse's total revenues, a portion of which are generated by Credit Suisse's investment banking activities. Analysts stock ratings are defined as follows: Outperform (O): The stocks total return is expected to outperform the relevant benchmark* by at least 10-15% (or more, depending on perceived risk) over the next 12 months. Neutral (N): The stocks total return is expected to be in line with the relevant benchmark* (range of 10-15%) over the next 12 months. Underperform (U): The stocks total return is expected to underperform the relevant benchmark* by 10-15% or more over the next 12 months. *Relevant benchmark by region: As of 29th May 2009, Australia, New Zealand, U.S. and Canadian ratings are based on (1) a stocks absolute total return potential to its current share price and (2) the relative attractiveness of a stocks total return potential within an analysts coverage universe**, with Outperforms representing the most attractive, Neutrals the less attractive, and Underperforms the least attractive investment opportunities. Some U.S. and Canadian ratings may fall outside the absolute total return ranges defined above, depending on market conditions and industry factors. For Latin American, Japanese, and non-Japan Asia stocks, ratings are based on a stocks total return relative to the average total return of the relevant country or regional benchmark; for European stocks, ratings are based on a stocks total return relative to the analyst's coverage universe**. For Australian and New Zealand stocks, 12-month rolling yield is incorporated in the absolute total return calculation and a 15% and a 7.5% threshold replace the 10-15% level in the Outperform and Underperform stock rating definitions, respectively. The 15% and 7.5% thresholds replace the +10-15% and -10-15% levels in the Neutral stock rating definition, respectively. **An analyst's coverage universe consists of all companies covered by the analyst within the relevant sector. Restricted (R): In certain circumstances, Credit Suisse policy and/or applicable law and regulations preclude certain types of communications, including an investment recommendation, during the course of Credit Suisse's engagement in an investment banking transaction and in certain other circumstances. Volatility Indicator [V]: A stock is defined as volatile if the stock price has moved up or down by 20% or more in a month in at least 8 of the past 24 months or the analyst expects significant volatility going forward. Analysts coverage universe weightings are distinct from analysts stock ratings and are based on the expected performance of an analysts coverage universe* versus the relevant broad market benchmark**: Overweight: Industry expected to outperform the relevant broad market benchmark over the next 12 months. Market Weight: Industry expected to perform in-line with the relevant broad market benchmark over the next 12 months. Underweight: Industry expected to underperform the relevant broad market benchmark over the next 12 months. *An analysts coverage universe consists of all companies covered by the analyst within the relevant sector.

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**The broad market benchmark is based on the expected return of the local market index (e.g., the S&P 500 in the U.S.) over the next 12 months.
Credit Suisses distribution of stock ratings (and banking clients) is: Global Ratings Distribution Outperform/Buy* 47% (59% banking clients) Neutral/Hold* 41% (57% banking clients) Underperform/Sell* 10% (52% banking clients) Restricted 2%
*For purposes of the NYSE and NASD ratings distribution disclosure requirements, our stock ratings of Outperform, Neutral, and Underperform most closely correspond to Buy, Hold, and Sell, respectively; however, the meanings are not the same, as our stock ratings are determined on a relative basis. (Please refer to definitions above.) An investor's decision to buy or sell a security should be based on investment objectives, current holdings, and other individual factors.

Credit Suisses policy is to update research reports as it deems appropriate, based on developments with the subject company, the sector or the market that may have a material impact on the research views or opinions stated herein. Credit Suisse's policy is only to publish investment research that is impartial, independent, clear, fair and not misleading. For more detail please refer to Credit Suisse's Policies for Managing Conflicts of Interest in connection with Investment Research: http://www.csfb.com/research-and-analytics/disclaimer/managing_conflicts_disclaimer.html Credit Suisse does not provide any tax advice. Any statement herein regarding any US federal tax is not intended or written to be used, and cannot be used, by any taxpayer for the purposes of avoiding any penalties.

See the Companies Mentioned section for full company names. Price Target: (12 months) for (UUU.TO) Method: Our target price of C$4.50/share for UUU is based on a target multiple of 1.2x our net asset value of C$3.57/share (9% base case discount rate), which is based on Credit Suisse long-term uranium price forecast of US$65/lb. Risks: The key risk to our C$4.50/share target price for Uranium One Inc. includes sensitivity to spot and long-term uranium and currency fluctuations. Political and regulatory risks must also be considered in Kazakhstan and Tanzania (taxes, royalties, mining rights, trade restrictions). The nuclear energy sector is subject to public opinion risks impacting demand for nuclear power, uranium and consequently Uranium One Inc.'s valuation. Reserve and resource estimates heavily impact valuation. The accuracy of the estimates can not be guaranteed. Uranium One Inc. is currently involved in multiple projects which implies inherent development risks. As with all mining companies there are operational risks involved such as mine collapses, storms, floods, and strikes, which can not be foreseen. Please refer to the firm's disclosure website at www.credit-suisse.com/researchdisclosures for the definitions of abbreviations typically used in the target price method and risk sections. See the Companies Mentioned section for full company names. The subject company (UUU.TO) currently is, or was during the 12-month period preceding the date of distribution of this report, a client of Credit Suisse. Credit Suisse provided investment banking services to the subject company (UUU.TO) within the past 12 months. Credit Suisse has received investment banking related compensation from the subject company (UUU.TO) within the past 12 months. Credit Suisse expects to receive or intends to seek investment banking related compensation from the subject company (UUU.TO) within the next 3 months. Important Regional Disclosures Singapore recipients should contact a Singapore financial adviser for any matters arising from this research report. An analyst involved in the preparation of this report has visited certain material operations of the subject company (UUU.TO) within the past 12 months. The analyst may not have visited all material operations of the subject company. The travel expenses of the analyst in connection with such visits were not paid or reimbursed by the subject company, other than de minimus local travel expenses. Restrictions on certain Canadian securities are indicated by the following abbreviations: NVS--Non-Voting shares; RVS--Restricted Voting Shares; SVS--Subordinate Voting Shares. Individuals receiving this report from a Canadian investment dealer that is not affiliated with Credit Suisse should be advised that this report may not contain regulatory disclosures the non-affiliated Canadian investment dealer would be required to make if this were its own report. For Credit Suisse Securities (Canada), Inc.'s policies and procedures regarding the dissemination of equity research, please visit http://www.csfb.com/legal_terms/canada_research_policy.shtml. The following disclosed European company/ies have estimates that comply with IFRS: CCO.TO. As of the date of this report, Credit Suisse acts as a market maker or liquidity provider in the equities securities that are the subject of this report.

Principal is not guaranteed in the case of equities because equity prices are variable.
Commission is the commission rate or the amount agreed with a customer when setting up an account or at anytime after that. Taiwanese Disclosures: This research report is for reference only. Investors should carefully consider their own investment risk. Investment results are the responsibility of the individual investor. Reports may not be reprinted without permission of CS. Reports written by Taiwan-based analysts on non-Taiwan listed companies are not considered recommendations to buy or sell securities under Taiwan Stock Exchange Operational Regulations Governing Securities Firms Recommending Trades in Securities to Customers. To the extent this is a report authored in whole or in part by a non-U.S. analyst and is made available in the U.S., the following are important disclosures regarding any non-U.S. analyst contributors:

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The non-U.S. research analysts listed below (if any) are not registered/qualified as research analysts with FINRA. The non-U.S. research analysts listed below may not be associated persons of CSSU and therefore may not be subject to the NASD Rule 2711 and NYSE Rule 472 restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account. Ralph M. Profiti, CFA, non-U.S. analyst, is a research analyst employed by Credit Suisse Securities (Canada), Inc.. Hussein Govani, non-U.S. analyst, is a research analyst employed by Credit Suisse Securities (Canada), Inc.. For Credit Suisse disclosure information on other companies mentioned in this report, please visit the website at www.creditsuisse.com/researchdisclosures or call +1 (877) 291-2683. Disclaimers continue on next page.

Uranium One Inc. (UUU.TO)

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03 May 2012 Americas/Canada Equity Research

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