UraniumSA Ltd : SA Government Grant - Samphire Project

ASX RELEASE

17 January 2014

UraniumSA Limited

("UraniumSA")

ASX Code: USA

ABN 48 119 978 013

32 Beulah Road

Norwood SA 5067

Phone [phone]

Fax [phone] www.uraniumsa.com.au [e-mail]

BOARD OF DIRECTORS

Alice McCleary Chairman Russel Bluck Director & Geoscience Manager

David Paterson Director & Acting CEO

PROJECTS South Australia Samphire ELs 4979, 4242

Pine Hill EL 4787

Wild Horse Plains EL 4693

Muckanippie EL 4694

ISSUED CAPITAL

Shares on Issue: 147,274,756

Quoted shares: 147,274,756

Unlisted Options: 7,550,000

INVESTOR INQUIRIES

[e-mail]

Inquiries regarding this report and company business may be directed to:

David Paterson - Acting CEO

[phone]

[phone]

VISIT OUR WEBSITE

www.uraniumsa.com.au

SAMPHIRE PROJECT UPDATE SA GOVERNMENT GRANT APPROVAL METALLURGICAL TEST WORK

UraniumSA is pleased to confirm a grant from the South Australian Government of $50,000 to advance metallurgical test work connected to its Samphire Project uranium deposits - Blackbush & Plumbush.

UraniumSA will work in collaboration with the respected University of South Australia's Ian Walk Research Institute. The study will focus on finding a more efficient process for the removal and recovery of uranium from saline leach solutions and advance UraniumSA's existing data and process understanding.

Metallurgical work to date on the Samphire project uranium mineralisation has been reported previously in various ASX releases by the company. In particular interested parties are directed to an ASX Release 13 June 2012, titled 'Metallurgical Development - Samphire Uranium Project'.

This SA Government grant will facilitate the continuation of recent research and test work by UraniumSA which aims to optimise pathways for uranium recovery from hyper-saline solution and it has involved:

1. Stage 1 (kinetic testing) work planned under the MOU with

CleanTeq has been completed.

2. Stage 2 (locked cycle testing) has been scoped and costed.

The SA Government grant will enable more extensive lock cycle testing and will involve separation and purification processes using three different ion exchange resins to determine the most favourable technique to extract uranium from hyper- saline leach solutions.

1

ABOUT URANIUMSA LIMITED

UraniumSA is an Adelaide based explorer specialising in uranium mineralisation within a substantial portfolio of properties in South Australia's Gawler Craton.

The Company has discovered sediment hosted uranium mineralisation within Exploration Licence

4979, Samphire, which is located 20km south of the

industrial city of Whyalla on the eastern Eyre Peninsula in South Australia. The exploration Licence is owned and operated by Samphire Uranium Pty Ltd, a wholly owned subsidiary of UraniumSA Limited.

The Samphire project contains the:

Blackbush deposit with an estimated inferred resource 64.5 million tonnes of mineralisation at a bulk grade of 230ppm containing 14,850 tonnes U3O8 at a 100ppm eU3O8 cut-off grade (JORC

2012).

Plumbush deposit with an estimated inferred resource 21.8 million tonnes of mineralisation at a bulk grade of 292ppm containing 6,300 tonnes U3O8 at a 100ppm eU3O8 cut-off grade (JORC 2004).

The estimated mineralisation is predominantly sediment hosted in Eocene age Kanaka Beds. Exploration has discovered uranium mineralisation in other geological settings and exploration is

continuing.

An evaluation of mining methods to optimise the recovery of uranium from the identified resources of mineralisation is in progress. Application has been made for a Retention Lease for an in-situ recovery field trial at the Blackbush deposit. Consideration of open cut options for the sediment-hosted and granite basement hosted uranium mineralisation is underway.

Through its own tenure and by joint venture UraniumSA has exploration control over what it considers the most prospective portions of the Pirie Basin.

David Paterson

Acting Chief Executive Officer

UraniumSA Limited

The exploration results mineral resources reported herein, insofar as they relate to mineralisation, are based on information compiled by Mr Russel Bluck a Director of UraniumSA Limited and Member of the Australian Institute of Geoscientists with sufficient experience relevant to the style of mineralisation and type of deposits being considered, and to the activity which is reported to qualify as a Competent Person as defined by the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code, 2012 Edition). Mr Bluck consents to the inclusion in the report of matters based on his information in the form and context in which it appears. It should be noted that the abovementioned

exploration results are preliminary.

2

News Release

Minister Grace Portolesi Minister for Employment, Higher Education and Skills Minister for Science and Information Economy

Thursday, 16 January 2014

Supporting cutting edge SA businesses

Businesses manufacturing high efficiency electric motors and exploring new ways to recover uranium are the latest to receive grants from the State Government's innovation vouchers program.
Minister for Science and Information Economy Grace Portolesi said these grants encourage closer links between small to medium business and researchers.
"We have great potential for world class research and development in this state," she said. "These vouchers support businesses to find innovative solutions in partnership with our best
and brightest researchers to drive productivity, improve competitiveness and develop new
products
Glassy Metal Technologies has received $50,000 to work with the University of Adelaide to develop a cost effective method of manufacturing high efficiency electric motors to reduce power consumption and greenhouse gas emissions.
"These prototypes will be developed with local Adelaide manufacturers and will be rigorously tested against current market leading products and standards," Ms Portolesi said.
"Using research development undertaken over the past 10 years, electric motors will be developed using a special type of energy efficient metal and a new high speed water pump.
"These electric motors will target the irrigation, boating and automotive industries."
Uranium SA has been granted $50,000 to work with the University of South Australia to find a more efficient process for the removal and recovery of uranium from saline leach solutions as part of the Samphire Uranium Project, southwest of Whyalla.
The Samphire Uranium deposit is found 80 metres underground in hyper-saline water (which is three times saltier than sea water) and the hyper- saline leach solution is a product from the in situ mining process used to recover uranium.
"These ideas can make a big difference to industry and it's vital we support this work and ensure South Australia continues to be a world leader," she said
"There is no known commercially proven method for recovering uranium from hyper-saline solutions.
"If successful, the uranium product extracted will contribute to the success of the Samphire
Uranium Project."

M

www.premier.sa.gov.au Twitter: @sa_press_sec