----

| Original signed by “Ron F. Hochstein” | Original signed by “David D. Cates” |
|---------------------------------------------------|-------------------------------------------------|
|                                              |                                            |
|                                              |                                            |
| Ron F. Hochstein                                  | David D. Cates                                  |
| President and Chief Executive Officer             | Vice-President Finance & Tax                |
|                                              | Chief Financial Officer                         |

----

----

----

| DENISON MINES CORP.Consolidated Statements of Financial Position(Expressed in thousands of U.S. dollars except for share amounts) |
|-----------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                              |   | At December 312013 |   |   | At December 312012 |
| ASSETS                                                                                                                            |   |   |   |   | Restated (note 3) |
| Current                                                                                                                           |   |   |   |   |   |
| Cash and cash equivalents (note 6)                                                                                                |   | $ | 21,786 |   |   | $ | 38,188 |   |
| Investments (note 9)                                                                                                              |   |   | 10,040 |   |   |   | - |   |
| Trade and other receivables (note 7)                                                                                              |   |   | 4,148 |   |   |   | 2,638 |   |
| Inventories (note 8)                                                                                                              |   |   | 2,123 |   |   |   | 1,792 |   |
| Prepaid expenses and other                                                                                                        |   |   | 749 |   |   |   | 683 |   |
|                                                                                                                              |   |   | 38,846 |   |   |   | 43,301 |   |
| Non-Current                                                                                                                       |   |   |   |   |   |   |   |   |
| Inventories – ore in stockpiles (note 8)                                                                                    |   |   | 1,661 |   |   |   | 2,062 |   |
| Investments (note 9)                                                                                                              |   |   | 5,901 |   |   |   | 2,843 |   |
| Restricted cash and investments (note 10)                                                                                         |   |   | 2,299 |   |   |   | 2,254 |   |
| Property, plant and equipment (note 11)                                                                                           |   |   | 281,010 |   |   |   | 247,888 |   |
| Intangibles (note 12)                                                                                                             |   |   | 1,252 |   |   |   | 2,008 |   |
| Total assets                                                                                                                      |   | $ | 330,969 |   |   | $ | 300,356 |   |
|                                                                                                                              |   |   |   |   |   |   |   |   |
| LIABILITIES                                                                                                                       |   |   |   |   |   |   |   |   |
| Current                                                                                                                           |   |   |   |   |   |   |   |   |
| Accounts payable and accrued liabilities                                                                                          |   | $ | 7,992 |   |   | $ | 4,878 |   |
| Current portion of long-term liabilities:                                                                                         |   |   |   |   |   |   |   |   |
| Post-employment benefits (note 13)                                                                                                |   |   | 376 |   |   |   | 402 |   |
| Reclamation obligations (note 14)                                                                                                 |   |   | 699 |   |   |   | 848 |   |
| Debt obligations (note 15)                                                                                                        |   |   | 55 |   |   |   | 125 |   |
| Other liabilities (note 16)                                                                                                       |   |   | 333 |   |   |   | 1,750 |   |
|                                                                                                                              |   |   | 9,455 |   |   |   | 8,003 |   |
| Non-Current                                                                                                                       |   |   |   |   |   |   |   |   |
| Post-employment benefits (note 13)                                                                                                |   |   | 2,945 |   |   |   | 3,262 |   |
| Reclamation obligations (note 14)                                                                                                 |   |   | 11,509 |   |   |   | 14,816 |   |
| Debt obligations (note 15)                                                                                                        |   |   | 42 |   |   |   | 104 |   |
| Other liabilities (note 16)                                                                                                       |   |   | 940 |   |   |   | 1,005 |   |
| Deferred income tax liability (note 17)                                                                                           |   |   | 25,847 |   |   |   | 9,443 |   |
| Total liabilities                                                                                                                 |   |   | 50,738 |   |   |   | 36,633 |   |
|                                                                                                                              |   |   |   |   |   |   |   |   |
| EQUITY                                                                                                                            |   |   |   |   |   |   |   |   |
| Share capital (note 18)                                                                                                           |   |   | 1,092,144 |   |   |   | 979,124 |   |
| Share purchase warrants (note 19)                                                                                                 |   |   | 616 |   |   |   | - |   |
| Contributed surplus (note 20)                                                                                                     |   |   | 52,943 |   |   |   | 50,671 |   |
| Deficit                                                                                                                           |   |   | (860,834 | ) |   |   | (776,999 | ) |
| Accumulated other comprehensive income (loss) (note 21)                                                                           |   |   | (7,729 | ) |   |   | 10,927 |   |
| Total equity                                                                                                                      |   |   | 277,140 |   |   |   | 263,723 |   |
| Non-controlling interest (note 5)                                                                                                 |   |   | 3,091 |   |   |   | - |   |
| Total liabilities and equity                                                                                                      |   | $ | 330,969 |   |   | $ | 300,356 |   |
|                                                                                                                              |   |   |   |   |   |   |   |   |
| Issued and outstanding common shares (note 18)                                                                                    |   |   | 482,003,444 |   |   |   | 388,805,915 |   |
| Commitments and contingencies (note 26)Subsequent events (note 28)                                                                |   |   |   |   |   |   |   |   |

| (Signed) “Ron F. Hochstein” |   | (Signed) “Catherine J.G. Stefan” |   |
|-----------------------------------------|--------|----------------------------------------------|--------|
| Director                                |   | Director                                     |   |

----

| DENISON MINES CORP.                                                             |   |
|---------------------------------------------------------------------------------|--------|
| Consolidated Statements of Income (Loss) and Comprehensive Income (Loss)        |   |
| (Expressed in thousands of U.S. dollars except for share and per share amounts) |   |
|                                                                            |   | Year Ended |   |
|                                                                            |   | December 31 |   |   | December 31 |   |
|                                                                            |   | 2013 |   |   | 2012 |   |
|                                                                            |   |   |   |   | Restated (note 3) |   |
|                                                                            |   |   |   |   |   |   |
| REVENUES (note 23)                                                              |   | $ | 10,407 |   |   | $ | 11,127 |   |
|                                                                            |   |   |   |   |   |   |   |   |
| EXPENSES                                                                        |   |   |   |   |   |   |   |   |
| Operating expenses (note 22, 23)                                                |   |   | (8,811 | ) |   |   | (14,384 | ) |
| Mineral property exploration (note 23)                                          |   |   | (13,682 | ) |   |   | (12,508 | ) |
| General and administrative (note 23)                                            |   |   | (8,167 | ) |   |   | (10,475 | ) |
| Impairment of mineral properties (note 11)                                      |   |   | (47,099 | ) |   |   | - |   |
| Other income (expense) (note 22)                                                |   |   | (529 | ) |   |   | (2,676 | ) |
|                                                                            |   |   | (78,288 | ) |   |   | (40,043 | ) |
| Income (loss) before finance charges                                            |   |   | (67,881 | ) |   |   | (28,916 | ) |
|                                                                            |   |   |   |   |   |   |   |   |
| Finance income (expense) (note 22)                                              |   |   | (532 | ) |   |   | (450 | ) |
| Income (loss) before taxes                                                      |   |   | (68,413 | ) |   |   | (29,366 | ) |
| Income tax recovery (expense) (note 17):                                        |   |   |   |   |   |   |   |   |
| Current                                                                         |   |   | 51 |   |   |   | 318 |   |
| Deferred                                                                        |   |   | (15,473 | ) |   |   | 3,577 |   |
| Net income (loss) from continuing operations                                    |   |   | (83,835 | ) |   |   | (25,471 | ) |
| Net income (loss) from discontinued operations, net of tax (note 5)             |   |   | - |   |   |   | (92,493 | ) |
| Net income (loss) for the period                                                |   | $ | (83,835 | ) |   | $ | (117,964 | ) |
|                                                                            |   |   |   |   |   |   |   |   |
| Items that may be reclassified to income (loss):                                |   |   |   |   |   |   |   |   |
| Comprehensive income (loss) from continuing operations:                         |   |   |   |   |   |   |   |   |
| Unrealized gain (loss) on investments-net of tax                                |   |   | 286 |   |   |   | 80 |   |
| Foreign currency translation change                                             |   |   | (18,942 | ) |   |   | 4,977 |   |
| Comprehensive income (loss) from discontinued operations:                       |   |   |   |   |   |   |   |   |
| Unrealized gain (loss) on investments-net of tax                                |   |   | - |   |   |   | (46 | ) |
| Foreign currency translation change                                             |   |   | - |   |   |   | (5,251 | ) |
| Comprehensive income (loss) for the period                                      |   | $ | (102,491 | ) |   | $ | (118,204 | ) |
|                                                                            |   |   |   |   |   |   |   |   |
|                                                                            |   |   |   |   |   |   |   |   |
| Net income (loss) per share from continuing operations:                         |   |   |   |   |   |   |   |   |
| Basic and diluted                                                               |   | $ | (0.19 | ) |   | $ | (0.07 | ) |
|                                                                            |   |   |   |   |   |   |   |   |
| Net income (loss) per share from discontinued operations:                       |   |   |   |   |   |   |   |   |
| Basic and diluted                                                               |   | $ | - |   |   | $ | (0.24 | ) |
|                                                                            |   |   |   |   |   |   |   |   |
| Net income (loss) per share:                                                    |   |   |   |   |   |   |   |   |
| Basic and diluted                                                               |   | $ | (0.19 | ) |   | $ | (0.31 | ) |
|                                                                            |   |   |   |   |   |   |   |   |
|                                                                            |   |   |   |   |   |   |   |   |
| Weighted-average number of shares outstanding (in thousands):                   |   |   |   |   |   |   |   |   |
| Basic and diluted                                                               |   |   | 440,895 |   |   |   | 385,352 |   |

| The accompanying notes are an integral part of the consolidated financial statements |
|--------------------------------------------------------------------------------------|

----

| DENISON MINES CORP.                                     |   |
|---------------------------------------------------------|--------|
| Consolidated Statements of Changes in Equity            |   |
| (Expressed in thousands of U.S. dollars)                |   |
|                                                    |   | Year Ended |   |
|                                                    |   | December 31 |   |   | December 31 |   |
|                                                    |   | 2013 |   |   | 2012 |   |
|                                                    |   |   |   |   | Restated (note 3) |   |
| Share capital                                           |   |   |   |   |   |   |
| Balance–beginning of period                       |   |   | 979,124 |   |   |   | 974,312 |   |
| Share issues-net of issue costs                         |   |   | 13,627 |   |   |   | 6,556 |   |
| Flow-through share premium                              |   |   | (332 | ) |   |   | (1,744 | ) |
| Shares issued on acquisition of JNR (note 5)            |   |   | 10,956 |   |   |   | - |   |
| Shares issued on acquisition of Fission (note 5)        |   |   | 66,259 |   |   |   | - |   |
| Shares issued on acquisition of Rockgate (note 5)       |   |   | 21,760 |   |   |   | - |   |
| Share options exercised-cash                            |   |   | 111 |   |   |   | - |   |
| Share options exercised-non cash                        |   |   | 98 |   |   |   | - |   |
| Share purchase warrants exercised-cash                  |   |   | 330 |   |   |   | - |   |
| Share purchase warrants exercised–non-cash        |   |   | 211 |   |   |   | - |   |
| Balance–end of period                             |   |   | 1,092,144 |   |   |   | 979,124 |   |
|                                                    |   |   |   |   |   |   |   |   |
| Share purchase warrants                                 |   |   |   |   |   |   |   |   |
| Balance–beginning of period                       |   |   | - |   |   |   | - |   |
| Warrants issued on acquisition of JNR (note 5)          |   |   | 17 |   |   |   | - |   |
| Warrants assumed on acquisition of Fission (note 5)     |   |   | 827 |   |   |   | - |   |
| Warrants exercised                                      |   |   | (211 | ) |   |   | - |   |
| Warrants expired                                        |   |   | (17 | ) |   |   | - |   |
| Balance–end of period                             |   |   | 616 |   |   |   | - |   |
|                                                    |   |   |   |   |   |   |   |   |
| Contributed surplus                                     |   |   |   |   |   |   |   |   |
| Balance–beginning of period                       |   |   | 50,671 |   |   |   | 49,171 |   |
| Stock-based compensation expense                        |   |   | 903 |   |   |   | 1,500 |   |
| Share options issued on acquisition of JNR (note 5)     |   |   | 131 |   |   |   | - |   |
| Share options issued on acquisition of Fission (note 5) |   |   | 1,321 |   |   |   | - |   |
| Share options exercised-non-cash                        |   |   | (98 | ) |   |   | - |   |
| Warrants expired                                        |   |   | 17 |   |   |   | - |   |
| Warrants expired–tax effect                       |   |   | (2 | ) |   |   | - |   |
| Balance–end of period                             |   |   | 52,943 |   |   |   | 50,671 |   |
|                                                    |   |   |   |   |   |   |   |   |
| Deficit                                                 |   |   |   |   |   |   |   |   |
| Balance–beginning of period                       |   |   | (776,999 | ) |   |   | (579,640 | ) |
| Non-cash distribution of assets (note 5)                |   |   | - |   |   |   | (79,395 | ) |
| Net loss                                                |   |   | (83,835 | ) |   |   | (117,964 | ) |
| Balance-end of period                                   |   |   | (860,834 | ) |   |   | (776,999 | ) |
|                                                    |   |   |   |   |   |   |   |   |
| Accumulated other comprehensive income                  |   |   |   |   |   |   |   |   |
| Balance–beginning of period                       |   |   | 10,927 |   |   |   | 11,167 |   |
| Unrealized gain (loss) on investments                   |   |   | 286 |   |   |   | 34 |   |
| Foreign currency translation                            |   |   | (18,119 | ) |   |   | 4,977 |   |
| Foreign currency translation realized in net income     |   |   | (823 | ) |   |   | (5,251 | ) |
| Balance–end of period                             |   |   | (7,729 | ) |   |   | 10,927 |   |
|                                                    |   |   |   |   |   |   |   |   |
| Total Equity                                            |   |   |   |   |   |   |   |   |
| Balance–beginning of period                       |   | $ | 263,723 |   |   | $ | 455,010 |   |
| Balance–end of period                             |   | $ | 277,140 |   |   | $ | 263,723 |   |

| The accompanying notes are an integral part of the consolidated financial statements |
|--------------------------------------------------------------------------------------|

----

| DENISON MINES CORP.                                               |   |
|-------------------------------------------------------------------|--------|
| Consolidated Statements of Cash Flow                              |   |
| (Expressed in thousands of U.S. dollars)                          |   |
|                                                              |   | Year Ended |   |
|                                                              |   | December 31 |   |   | December 31 |   |
| CASH PROVIDED BY (USED IN):                                       |   | 2013 |   |   | 2012 |   |
|                                                              |   |   |   |   | Restated (note 3) |   |
| OPERATING ACTIVITIES                                              |   |   |   |   |   |   |
| Net income (loss) for the period                                  |   | $ | (83,835 | ) |   | $ | (117,964 | ) |
| Items not affecting cash:                                         |   |   |   |   |   |   |   |   |
| Depletion, depreciation, amortization and accretion               |   |   | 651 |   |   |   | 19,283 |   |
| Impairment – mineral properties (note 5)                    |   |   | 47,099 |   |   |   | 54,471 |   |
| Impairment – plant and equipment (note 5)                   |   |   | - |   |   |   | 43,473 |   |
| Impairment – investments                                    |   |   | 39 |   |   |   | 64 |   |
| Stock-based compensation                                          |   |   | 903 |   |   |   | 1,500 |   |
| Losses (gains) on asset disposals                                 |   |   | 12 |   |   |   | (65 | ) |
| Losses (gains) on investments and restricted investments          |   |   | 1,298 |   |   |   | (455 | ) |
| Non-cash inventory adjustments                                    |   |   | - |   |   |   | (34 | ) |
| Deferred income tax expense (recovery)                            |   |   | 15,473 |   |   |   | (3,577 | ) |
| Foreign exchange                                                  |   |   | (17 | ) |   |   | (2,724 | ) |
| Change in non-cash working capital items (note 22)                |   |   | (2,766 | ) |   |   | (741 | ) |
| Net cash provided by (used in) operating activities               |   |   | (21,143 | ) |   |   | (6,769 | ) |
|                                                              |   |   |   |   |   |   |   |   |
| INVESTING ACTIVITIES                                              |   |   |   |   |   |   |   |   |
| Acquisition of assets, net of cash and cash equivalents acquired: |   |   |   |   |   |   |   |   |
| JNR  (note 5)                                           |   |   | (715 | ) |   |   | - |   |
| Fission (note 5)                                                  |   |   | (4,058 | ) |   |   | - |   |
| Rockgate (note 5)                                                 |   |   | (989 | ) |   |   | - |   |
| Divestiture of a business, cash divested (note 5)                 |   |   | - |   |   |   | (552 | ) |
| Decrease (increase) in notes receivable                           |   |   | 298 |   |   |   | (284 | ) |
| Purchase of investments                                           |   |   | - |   |   |   | (1,816 | ) |
| Expenditures on property, plant and equipment                     |   |   | (2,262 | ) |   |   | (13,122 | ) |
| Proceeds on sale of property, plant and equipment                 |   |   | 58 |   |   |   | 104 |   |
| Decrease (increase) in restricted cash and investments            |   |   | (210 | ) |   |   | (373 | ) |
| Net cash provided by (used in) investing activities               |   |   | (7,878 | ) |   |   | (16,043 | ) |
|                                                              |   |   |   |   |   |   |   |   |
| FINANCING ACTIVITIES                                              |   |   |   |   |   |   |   |   |
| Increase (decrease) in debt obligations                           |   |   | (121 | ) |   |   | 4 |   |
| Issuance of common shares for:                                    |   |   |   |   |   |   |   |   |
| New share issues-net of issue costs (note 18)                     |   |   | 13,627 |   |   |   | 6,556 |   |
| Share options exercised (note 18)                                 |   |   | 111 |   |   |   | - |   |
| Share purchase warrants exercised (note 18)                       |   |   | 330 |   |   |   | - |   |
| Net cash provided by (used in) financing activities               |   |   | 13,947 |   |   |   | 6,560 |   |
|                                                              |   |   |   |   |   |   |   |   |
| Increase (decrease) in cash and cash equivalents                  |   |   | (15,074 | ) |   |   | (16,252 | ) |
| Foreign exchange effect on cash and cash equivalents              |   |   | (1,328 | ) |   |   | 925 |   |
| Cash and cash equivalents, beginning of period                    |   |   | 38,188 |   |   |   | 53,515 |   |
| Cash and cash equivalents, end of period                          |   | $ | 21,786 |   |   | $ | 38,188 |   |
|                                                              |   |
| Supplemental cash flow disclosure:                                |   |   |   |   |   |   |   |   |
| Interest paid                                                     |   | $ | 3 |   |   | $ | 7 |   |
| Income taxes paid (recovered)                                     |   |   | (51 | ) |   |   | (348 | ) |

| The accompanying notes are an integral part of the consolidated financial statements |
|--------------------------------------------------------------------------------------|

----

| DENISON MINES CORP.                                                                           |   |
|-----------------------------------------------------------------------------------------------|--------|
| Notes to the consolidated financial statements for the years ended December 31, 2013 and 2012 |   |
| (Expressed in U.S. dollars except for shares and per share amounts)                           |   |
|                                                                                          |   |

| 1. | NATURE OF OPERATIONS |
|----|----------------------|

| 2. | BASIS OF PRESENTATION |
|----|-----------------------|

| 3. | ACCOUNTING POLICIES AND RESTATEMENT OF COMPARATIVE NUMBERS |
|----|------------------------------------------------------------|

|   | (a) | Consolidation |
|--------|-----|---------------|

----

|   | (b) | Foreign currency translation |
|--------|-----|------------------------------|

|   | (i) | Functional and presentation currency |
|--------|-----|--------------------------------------|

|   | (ii) | Transactions and balances |
|--------|------|---------------------------|

|   | (c) | Business combinations |
|--------|-----|-----------------------|

----

|   | (d) | Cash and cash equivalents |
|--------|-----|---------------------------|

|   | (e)  | Financial instruments |
|--------|-----------|-----------------------|

|   | (i) | Financial assets and liabilities at fair value through profit or loss (“FVPL”) |
|--------|-----|--------------------------------------------------------------------------------------------|

|   | (ii) | Available-for-sale investments |
|--------|------|--------------------------------|

|   | (iii) | Held-to-maturity investments |
|--------|-------|------------------------------|

|   | (iv) | Loans and receivables |
|--------|------|-----------------------|

|   | (v) | Financial liabilities at amortized cost |
|--------|-----|-----------------------------------------|

|   | (i) | “Cash and cash equivalents” and “Trade and other receivables” are classified as loans and receivables and are measured at amortized cost using the effective interest rate method. Interest income is recorded in net income through finance income (expense), as applicable; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | A portion of “Investments” are classified as FVPL and any period change in fair value is recorded in net income through other income (expense).  The remaining amount is classified as available-for-sale and any period change in fair value is recorded in other comprehensive income.  When the investment’s value becomes impaired, the loss is recognized in net income through other income (expense) in the period of impairment; |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (iii) | “Restricted cash and investments” is classified as held-to-maturity investments; and |
|--------|-------|--------------------------------------------------------------------------------------------------|

|   | (iv) | “Accounts payable and accrued liabilities” and “Debt obligations” are classified as other financial liabilities and are measured at amortized cost using the effective interest rate method. Interest expense is recorded in net income through finance income (expense), as applicable. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | Impairment of financial assets |
|--------|-----|--------------------------------|

|   | (i) | Financial assets carried at amortized cost:  The loss is the difference between the amortized cost of the loan or receivable and the present value of the estimated future cash flows, discounted using the instrument’s original effective interest rate.  The carrying amount of the asset is reduced by this amount either directly or indirectly through the use of an allowance account. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | Available-for-sale financial assets:  The impairment loss is the difference between the original cost of the asset and its fair value at the measurement date, less any impairment losses previously recognized in the statement of income.  This amount represents the cumulative loss in accumulated other comprehensive income that is reclassified to net income. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | Inventories |
|--------|-----|-------------|

|   | (h) | Property, plant and equipment |
|--------|-----|-------------------------------|

----

| Buildings                          |   | 15 - 20 years;           |   |
|------------------------------------|--------|--------------------------|--------|
| Production machinery and equipment |   |   5 - 7 years; |   |
| Other                              |   |   3 - 5 years; |   |

|   | (i) | Mineral property acquisition, exploration and development costs |
|--------|-----|-----------------------------------------------------------------|

|   | (j) | Identifiable Intangible assets |
|--------|-----|--------------------------------|

|   | (k) | Impairment of non-financial assets |
|--------|-----|------------------------------------|

|   | (l) | Employee benefits |
|--------|-----|-------------------|

|   | (i) | Post-employment benefit obligations |
|--------|-----|-------------------------------------|

|   | (ii) | Stock-based compensation |
|--------|------|--------------------------|

----

|   | (iii) | Termination benefits |
|--------|-------|----------------------|

|   | (m) | Reclamation provisions |
|--------|-----|------------------------|

|   | (n) | Provisions |
|--------|-----|------------|

|   | (o) | Current and Deferred Income tax |
|--------|-----|---------------------------------|

----

|   | (p) | Flow-Through Common Shares |
|--------|-----|----------------------------|

|   | (q) | Revenue recognition |
|--------|-----|---------------------|

|   | (r) | Borrowing costs |
|--------|-----|-----------------|

|   | (s) | Earnings (loss) per share |
|--------|-----|---------------------------|

----

----

----

|                                    |   | As Previously |     |   |       |   |   |        |   |
|-----------------------------------------|--------|---------------|----------|--------|------------|--------|--------|-------------|--------|
| (in thousands)                          |   | Reported      |     |   | Adjustment |   |   | As Restated |   |
|                                    |   |          |     |   |       |   |   |        |   |
| At December 31, 2011:                   |   |
| Statement of Financial Position:        |   |
| Post-employment benefits                |   | $             | 3,891    |   |       | $      | (206   | )           |   | $ | 3,685 |   |
| Deficit-opening                         |   |          | (579,696 | )      |       |   | 56     |        |   |   | (579,640 | ) |
| Accumulated other comprehensive income  |   |          |     |   |       |   |   |        |   |
| Unamortized experience gain, net of tax |   |          | -        |   |       |   | 150    |        |   |   | 150 |   |
|                                    |   |
| At December 31, 2012:                   |   |
| Statement of Financial Position:        |   |
| Post-employment benefits                |   | $             | 3,852    |   |       | $      | (188   | )           |   | $ | 3,664 |   |
| Deferred income tax liability           |   |          | 9,449    |   |       |   | (6     | )           |   |   | 9,443 |   |
| Deficit-opening                         |   |          | (579,696 | )      |       |   | 56     |        |   |   | (579,640 | ) |
| Deficit-net income (loss)               |   |          | (117,948 | )      |       |   | (16    | )           |   |   | (117,964 | ) |
| Accumulated other comprehensive income  |   |          |     |   |       |   |   |        |   |
| Cumulative translation adjustment       |   |          | 11,058   |   |       |   | 4      |        |   |   | 11,062 |   |
| Unamortized experience gain, net of tax |   |          | -        |   |       |   | 150    |        |   |   | 150 |   |

| 4. | CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS |
|----|----------------------------------------------|

|   | (a) | Determination of a Mineral Property being Sufficiently Advanced |
|--------|-----|-----------------------------------------------------------------|

|   | (b) | Valuation of Mineral Properties |
|--------|-----|---------------------------------|

----

|   | (c) | Deferred Tax Assets and Liabilities |
|--------|-----|-------------------------------------|

|   | (d) | Reclamation Obligations |
|--------|-----|-------------------------|

| 5. | ACQUISITIONS AND DIVESTITURES |
|----|-------------------------------|

----

|                                             |   | Rockgate   |   |
|--------------------------------------------------|--------|------------|--------|
| (in thousands)                                   |   | Fair Value |   |
|                                             |   |       |   |
| Cash and cash equivalents                        |   | $          | 512    |   |
| Trade and other receivables                      |   |       | 173    |   |
| Prepaid expenses and other                       |   |       | 54     |   |
| Investments-debt instruments                     |   |       | 14,810 |   |
| Investments-equity instruments                   |   |       | 11     |   |
| Property, plant and equipment                    |   |       |   |   |
| Plant and equipment                              |   |       | 523    |   |
| Mineral properties – Mali                  |   |       | 11,996 |   |
| Mineral properties - Niger                       |   |       | 94     |   |
| Total assets                                     |   |       | 28,173 |   |
|                                             |   |       |   |   |
| Account payable and accrued liabilities          |   |       | 1,821  |   |
| Non-controlling interest (at 10.28%)             |   |       | 3,091  |   |
| Net assets acquired at 89.72% ownership interest |   | $          | 23,261 |   |

| (in thousands except for share amounts)                  |   |   |   |
|----------------------------------------------------------|--------|--------|--------|
|                                                     |   |   |   |
| Fair value of 20,131,665 common shares issued by Denison |   | $      | 21,760 |   |
| Costs incurred by the Company pursuant to the bid:       |   |   |   |   |
| Bid transaction costs                                    |   |   | 1,501  |   |
| Fair value of total consideration                        |   | $      | 23,261 |   |

----

|                                    |   | Fission    |   |
|-----------------------------------------|--------|------------|--------|
| (in thousands)                          |   | Fair Value |   |
|                                    |   |       |   |
| Cash and cash equivalents               |   | $          | 930    |   |
| Trade and other receivables             |   |       | 82     |   |
| Property, plant and equipment           |   |       |   |   |
| Mineral properties – Canada       |   |       | 66,945 |   |
| Mineral properties - Namibia            |   |       | 5,949  |   |
| Total assets                            |   |       | 73,906 |   |
|                                    |   |       |   |   |
| Account payable and accrued liabilities |   |       | 511    |   |
| Net assets                              |   | $          | 73,395 |   |

| (in thousands except for share amounts)                                   |   |   |   |
|---------------------------------------------------------------------------|--------|--------|--------|
|                                                                      |   |   |   |
| Fair value of 53,053,284 common shares issued by Denison                  |   | $      | 66,259 |   |
| Fair value of 1,500,854 common share purchase warrants assumed by Denison |   |   | 827    |   |
| Fair value of 1,985,035 common share options issued by Denison            |   |   | 1,321  |   |
| Costs incurred by the Company pursuant to arrangement:                    |   |   |   |   |
| Fission Loan                                                              |   |   | 3,321  |   |
| Transaction costs                                                         |   |   | 1,667  |   |
| Fair value of total consideration                                         |   | $      | 73,395 |   |

----

|                                    |   | JNR        |   |
|-----------------------------------------|--------|------------|--------|
| (in thousands)                          |   | Fair Value |   |
|                                    |   |       |   |
| Cash and cash equivalents               |   | $          | 39     |   |
| Trade and other receivables             |   |       | 50     |   |
| Prepaid expenses and other              |   |       | 7      |   |
| Investments                             |   |       | 22     |   |
| Property, plant and equipment           |   |       |   |   |
| Plant and equipment                     |   |       | 62     |   |
| Mineral properties - Canada             |   |       | 13,012 |   |
| Total assets                            |   |       | 13,192 |   |
|                                    |   |       |   |   |
| Account payable and accrued liabilities |   |       | 767    |   |
| Net assets                              |   | $          | 12,425 |   |

| (in thousands except for share amounts)                                |   |   |   |
|------------------------------------------------------------------------|--------|--------|--------|
|                                                                   |   |   |   |
| Fair value of 7,975,479 common shares issued by Denison                |   | $      | 10,956 |   |
| Fair value of 272,290 common share purchase warrants issued by Denison |   |   | 17     |   |
| Fair value of 579,255 common share options issued by Denison           |   |   | 131    |   |
| Fair value of JNR shares held by Denison prior to acquisition          |   |   | 567    |   |
| Costs incurred by the Company pursuant to arrangement:                 |   |   |   |   |
| JNR loan                                                               |   |   | 351    |   |
| Transaction costs                                                      |   |   | 403    |   |
| Fair value of total consideration                                      |   | $      | 12,425 |   |

----

|                                 |   | Year        |     |
|--------------------------------------|--------|-------------|----------|
|                                 |   | Ended       |     |
|                                 |   | December 31 |     |
| (in thousands)                       |   | 2012        |     |
|                                 |   |        |     |
| Revenues                             |   |        |     |
| Mineral concentrates                 |   |        | 37,419   |   |
| Services and other                   |   |        | 275      |   |
|                                 |   | $           | 37,694   |   |
|                                 |   |        |     |   |
| Expenses                             |   |        |     |   |
| Operating expenses                   |   |        | (31,300  | ) |
| Mineral property exploration         |   |        | (470     | ) |
| General and administrative           |   |        | (5,750   | ) |
| Impairment-mineral properties        |   |        | (54,471  | ) |
| Impairment-plant and equipment       |   |        | (43,473  | ) |
| Other income (expense)               |   |        | 5,165    |   |
|                                 |   |        | (130,299 | ) |
| Income (loss) before finance charges |   |        | (92,605  | ) |
| Finance income (expense)             |   |        | 114      |   |
| Income (loss) before taxes           |   |        | (92,491  | ) |
| Income tax recovery (expense)        |   |        |     |   |
| Current                              |   |        | (2       | ) |
| Net income (loss) for the period     |   | $           | (92,493  | ) |

|                                     |   | Year        |   |
|------------------------------------------|--------|-------------|--------|
|                                     |   | Ended       |   |
|                                     |   | December 31 |   |
| (in thousands)                           |   | 2012        |   |
|                                     |   |        |   |
| Cash inflow (outflow):                   |   |        |   |
| Operating activities                     |   |        | 10,683 |   |
| Investing activities                     |   |        | (9,489 | ) |
| Financing activities                     |   |        | -      |   |
| Net cash inflow (outflow) for the period |   | $           | 1,194  |   |

----

| 6. | CASH AND CASH EQUIVALENTS |
|----|---------------------------|

|             |   | At December 31 |   |   | At December 31 |   |
|------------------|--------|----------------|--------|--------|----------------|--------|
| (in thousands)   |   | 2013           |   |   | 2012           |   |
|             |   |           |   |   |           |   |
| Cash             |   | $              | 5,316  |   |           | $      | 4,614 |   |
| Cash equivalents |   |           | 16,470 |   |           |   | 33,574 |   |
|             |   | $              | 21,786 |   |           | $      | 38,188 |   |

| 7. | TRADE AND OTHER RECEIVABLES |
|----|-----------------------------|

|                                        |   | At December 31 |   |   | At December 31 |   |
|---------------------------------------------|--------|----------------|--------|--------|----------------|--------|
| (in thousands)                              |   | 2013           |   |   | 2012           |   |
|                                        |   |           |   |   |           |   |
| Trade receivables – other             |   | $              | 1,966  |   |           | $      | 1,684 |   |
| Receivables in joint ownership arrangements |   |           | 1,794  |   |           |   | 186 |   |
| Sales tax receivables                       |   |           | 378    |   |           |   | 322 |   |
| Sundry receivables                          |   |           | 10     |   |           |   | 144 |   |
| Notes and lease receivables                 |   |           | -      |   |           |   | 302 |   |
|                                        |   | $              | 4,148  |   |           | $      | 2,638 |   |

| 8. | INVENTORIES |
|----|-------------|

|                                      |   | At December 31 |   |   | At December 31 |   |
|-------------------------------------------|--------|----------------|--------|--------|----------------|--------|
| (in thousands)                            |   | 2013           |   |   | 2012           |   |
|                                      |   |           |   |   |           |   |
| Uranium concentrates and work-in-progress |   | $              | 4      |   |           | $      | 4 |   |
| Inventory of ore in stockpiles            |   |           | 2,058  |   |           |   | 2,203 |   |
| Mine and mill supplies                    |   |           | 1,722  |   |           |   | 1,647 |   |
|                                      |   | $              | 3,784  |   |           | $      | 3,854 |   |
|                                      |   |           |   |   |           |   |   |   |
| Inventories - by duration:                |   |           |   |   |           |   |   |   |
| Current                                   |   | $              | 2,123  |   |           | $      | 1,792 |   |
| Long-term – ore in stockpiles       |   |           | 1,661  |   |           |   | 2,062 |   |
|                                      |   | $              | 3,784  |   |           | $      | 3,854 |   |

----

| 9. | INVESTMENTS |
|----|-------------|

|                                                  |   | At December 31 |   |   | At December 31 |   |
|-------------------------------------------------------|--------|----------------|--------|--------|----------------|--------|
| (in thousands)                                        |   | 2013           |   |   | 2012           |   |
|                                                  |   |           |   |   |           |   |
| Investments:                                          |   |           |   |   |           |   |
| Equity instruments-fair value through profit and loss |   | $              | 1,106  |   |           | $      | 2,332 |   |
| Equity instruments-available for sale                 |   |           | 17     |   |           |   | 511 |   |
| Debt instruments-fair value through profit and loss   |   |           | 14,818 |   |           |   | - |   |
|                                                  |   | $              | 15,941 |   |           | $      | 2,843 |   |
|                                                  |   |           |   |   |           |   |   |   |
| Investments – by duration                       |   |           |   |   |           |   |   |   |
| Current                                               |   | $              | 10,040 |   |           | $      | - |   |
| Long-term                                             |   |           | 5,901  |   |           |   | 2,843 |   |
|                                                  |   | $              | 15,941 |   |           | $      | 2,843 |   |

| 10. | RESTRICTED CASH AND INVESTMENTS |
|-----|---------------------------------|

|                                             |   | At December 31 |   |   | At December 31 |   |
|--------------------------------------------------|--------|----------------|--------|--------|----------------|--------|
| (in thousands)                                   |   | 2013           |   |   | 2012           |   |
|                                             |   |           |   |   |           |   |
| Cash                                             |   | $              | 26     |   |           | $      | 42 |   |
| Cash equivalents                                 |   |           | 221    |   |           |   | 286 |   |
| Investments                                      |   |           | 2,052  |   |           |   | 1,926 |   |
|                                             |   | $              | 2,299  |   |           | $      | 2,254 |   |
|                                             |   |           |   |   |           |   |   |   |
| Restricted cash and investments – by item: |   |           |   |   |           |   |   |   |
| Elliot Lake reclamation trust fund               |   | $              | 2,299  |   |           | $      | 2,254 |   |
|                                             |   | $              | 2,299  |   |           | $      | 2,254 |   |

----

| 11. | PROPERTY, PLANT AND EQUIPMENT |
|-----|-------------------------------|

|                     |   | At December 31 |    |   | At December 31 |   |
|--------------------------|--------|----------------|---------|--------|----------------|--------|
| (in thousands)           |   | 2013           |    |   | 2012           |   |
|                     |   |           |    |   |           |   |
| Plant and equipment:     |   |           |    |   |           |   |
| Cost                     |   | $              | 86,805  |   |           | $      | 91,467 |   |
| Construction-in-progress |   |           | 7,516   |   |           |   | 7,880 |   |
| Accumulated depreciation |   |           | (12,627 | )      |           |   | (12,143 | ) |
| Net book value           |   | $              | 81,694  |   |           | $      | 87,204 |   |
|                     |   |           |    |   |           |   |   |   |
| Mineral properties:      |   |           |    |   |           |   |   |   |
| Cost                     |   | $              | 199,532 |   |           | $      | 160,915 |   |
| Accumulated amortization |   |           | (216    | )      |           |   | (231 | ) |
| Net book value           |   | $              | 199,316 |   |           | $      | 160,684 |   |
|                     |   |           |    |   |           |   |   |   |
| Net book value           |   | $              | 281,010 |   |           | $      | 247,888 |   |

|                              |   |   |    |   | Accumulated    |   |    |       |   |
|-----------------------------------|--------|--------|---------|--------|----------------|--------|---------|------------|--------|
|                              |   |   |    |   | Amortization / |   |    | Net        |   |
| (in thousands)                    |   | Cost   |    |   | Depreciation   |   |    | Book Value |   |
|                              |   |   |    |   |           |   |    |       |   |
| Plant and equipment:              |   |   |    |   |           |   |    |       |   |
| Balance – January 1, 2012   |   | $      | 198,250 |   |           | $      | (53,804 | )          |   | $ | 144,446 |   |
| Additions                         |   |   | 4,231   |   |           |   | -       |       |   |   | 4,231 |   |
| Amortization                      |   |   | -       |   |           |   | (55     | )          |   |   | (55 | ) |
| Business divestiture (note 5)     |   |   | (61,368 | )      |           |   | 46,757  |       |   |   | (14,611 | ) |
| Depreciation                      |   |   | -       |   |           |   | (5,293  | )          |   |   | (5,293 | ) |
| Disposals                         |   |   | (505    | )      |           |   | 466     |       |   |   | (39 | ) |
| Impairment (note 5)               |   |   | (43,473 | )      |           |   | -       |       |   |   | (43,473 | ) |
| Reclamation adjustment            |   |   | 152     |   |           |   | -       |       |   |   | 152 |   |
| Foreign exchange                  |   |   | 2,060   |   |           |   | (214    | )          |   |   | 1,846 |   |
| Balance – December 31, 2012 |   | $      | 99,347  |   |           | $      | (12,143 | )          |   | $ | 87,204 |   |
|                              |   |   |    |   |           |   |    |       |   |   |   |   |
| Additions                         |   |   | 1,192   |   |           |   | -       |       |   |   | 1,192 |   |
| Amortization                      |   |   | -       |   |           |   | (36     | )          |   |   | (36 | ) |
| Asset acquisitions (note 5)       |   |   | 1,536   |   |           |   | (950    | )          |   |   | 586 |   |
| Depreciation                      |   |   | -       |   |           |   | (796    | )          |   |   | (796 | ) |
| Disposals                         |   |   | (475    | )      |           |   | 405     |       |   |   | (70 | ) |
| Reclamation adjustment            |   |   | (833    | )      |           |   | 77      |       |   |   | (756 | ) |
| Foreign exchange                  |   |   | (6,446  | )      |           |   | 816     |       |   |   | (5,630 | ) |
| Balance – December 31, 2013 |   | $      | 94,321  |   |           | $      | (12,627 | )          |   | $ | 81,694 |   |

----

|                              |   |   |    |   | Accumulated  |   |   | Net        |   |
|-----------------------------------|--------|--------|---------|--------|--------------|--------|--------|------------|--------|
| (in thousands)                    |   | Cost   |    |   | Amortization |   |   | Book Value |   |
|                              |   |   |    |   |         |   |   |       |   |
| Mineral properties:               |   |   |    |   |         |   |   |       |   |
| Balance – January 1, 2012   |   | $      | 230,403 |   |         | $      | (7,479 | )          |   | $ | 222,924 |   |
| Additions                         |   |   | 10,293  |   |         |   | -      |       |   |   | 10,293 |   |
| Amortization                      |   |   | -       |   |         |   | (1,710 | )          |   |   | (1,710 | ) |
| Business divestiture (note 5)     |   |   | (25,430 | )      |         |   | 8,964  |       |   |   | (16,466 | ) |
| Impairment (note 5)               |   |   | (54,471 | )      |         |   | -      |       |   |   | (54,471 | ) |
| Foreign exchange                  |   |   | 120     |   |         |   | (6     | )          |   |   | 114 |   |
| Balance – December 31, 2012 |   | $      | 160,915 |   |         | $      | (231   | )          |   | $ | 160,684 |   |
|                              |   |   |    |   |         |   |   |       |   |   |   |   |
| Additions                         |   |   | 1,203   |   |         |   | -      |       |   |   | 1,203 |   |
| Asset acquisitions (note 5)       |   |   | 97,996  |   |         |   | -      |       |   |   | 97,996 |   |
| Impairment (note 11)              |   |   | (47,099 | )      |         |   | -      |       |   |   | (47,099 | ) |
| Foreign exchange                  |   |   | (13,483 | )      |         |   | 15     |       |   |   | (13,468 | ) |
| Balance – December 31, 2013 |   | $      | 199,532 |   |         | $      | (216   | )          |   | $ | 199,316 |   |

|   | a) | McClean Lake (Saskatchewan) – the Company has a 22.5% interest in the project (includes the Sue D, Sue E, Caribou, McClean North and McClean South deposits); |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | Midwest (Saskatchewan) – the Company has a 25.17% interest in the project (includes the Midwest and Midwest A deposits); |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------|

|   | c) | Wheeler River (Saskatchewan) – the Company has a 60% interest in the project (includes the Phoenix deposit); |
|--------|----|--------------------------------------------------------------------------------------------------------------------|

|   | d) | Waterbury Lake (Saskatchewan) – the Company has a 60% interest in the project (includes the J Zone deposit) and also has a 2.0% net smelter return royalty on the portion of the project it does not own; and |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | e) | Wolly (Saskatchewan) – the Company has a 22.5% interest in the project. |
|--------|----|-------------------------------------------------------------------------------|

----

----

| 12. | INTANGIBLES |
|-----|-------------|

|                              |   | At December 31 |   |   | At December 31 |   |
|-----------------------------------|--------|----------------|--------|--------|----------------|--------|
| (in thousands)                    |   | 2013           |   |   | 2012           |   |
|                              |   |           |   |   |           |   |
| Cost                              |   | $              | 6,957  |   |           | $      | 7,438 |   |
| Accumulated amortization          |   |           | (5,705 | )      |           |   | (5,430 | ) |
| Net book value                    |   | $              | 1,252  |   |           | $      | 2,008 |   |
|                              |   |           |   |   |           |   |   |   |
| Net book value-by item:           |   |           |   |   |           |   |   |   |
| UPC management services agreement |   | $              | 1,252  |   |           | $      | 2,008 |   |
| Net book value                    |   | $              | 1,252  |   |           | $      | 2,008 |   |

|                              |   |   |   |   | Accumulated  |   |   | Net        |   |
|-----------------------------------|--------|--------|--------|--------|--------------|--------|--------|------------|--------|
| (in thousands)                    |   | Cost   |   |   | Amortization |   |   | Book Value |   |
|                              |   |   |   |   |         |   |   |       |   |
| Balance – January 1, 2012   |   | $      | 7,276  |   |         | $      | (4,438 | )          |   | $ | 2,838 |   |
| Amortization                      |   |   | -      |   |         |   | (888   | )          |   |   | (888 | ) |
| Foreign exchange                  |   |   | 162    |   |         |   | (104   | )          |   |   | 58 |   |
| Balance – December 31, 2012 |   | $      | 7,438  |   |         | $      | (5,430 | )          |   | $ | 2,008 |   |
|                              |   |   |   |   |         |   |   |       |   |   |   |   |
| Amortization                      |   |   | -      |   |         |   | (648   | )          |   |   | (648 | ) |
| Foreign exchange                  |   |   | (481   | )      |         |   | 373    |       |   |   | (108 | ) |
| Balance – December 31, 2013 |   | $      | 6,957  |   |         | $      | (5,705 | )          |   | $ | 1,252 |   |

----

| 13.  | POST-EMPLOYMENT BENEFITS |
|-----------|--------------------------|

|   | — | Discount rate of 3.65%; |
|--------|---------|-------------------------|

|   | — | Medical cost trend rates at 7.00% per annum initially, grading down to 4.50% per annum over 20 years and remaining at 4.50% per annum thereafter; and |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | — | Dental cost trend rates at 4.00% per annum for the first ten years, 3.50% per annum for the following ten years and 3.0% per annum thereafter; |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------|

|                                            |   | At December 31 |   |   | At December 31    |   |
|-------------------------------------------------|--------|----------------|--------|--------|-------------------|--------|
| (in thousands)                                  |   | 2013           |   |   | 2012              |   |
|                                            |   |           |   |   | Restated (note 3) |   |
|                                            |   |           |   |   |              |   |
| Accrued benefit obligation                      |   | $              | 3,321  |   |              | $      | 3,664 |   |
|                                            |   | $              | 3,321  |   |              | $      | 3,664 |   |
|                                            |   |           |   |   |              |   |   |   |
| Post-employment benefits liability-by duration: |   |           |   |   |              |   |   |   |
| Current                                         |   | $              | 376    |   |              | $      | 402 |   |
| Non-current                                     |   |           | 2,945  |   |              |   | 3,262 |   |
|                                            |   | $              | 3,321  |   |              | $      | 3,664 |   |

| (in thousands)              |   |   |   |
|-----------------------------|--------|--------|--------|
|                        |   |   |   |
| Balance - January 1, 2012   |   | $      | 3,685  |   |
| Benefits paid               |   |   | (235   | ) |
| Interest cost               |   |   | 132    |   |
| Foreign exchange            |   |   | 82     |   |
| Balance - December 31, 2012 |   | $      | 3,664  |   |
|                        |   |   |   |   |
| Benefits paid               |   |   | (235   | ) |
| Interest cost               |   |   | 125    |   |
| Foreign exchange            |   |   | (233   | ) |
| Balance - December 31, 2013 |   | $      | 3,321  |   |

----

| 14.  | RECLAMATION OBLIGATIONS |
|-----------|-------------------------|

|                                                 |   | At December 31 |   |   | At December 31 |   |
|------------------------------------------------------|--------|----------------|--------|--------|----------------|--------|
| (in thousands)                                       |   | 2013           |   |   | 2012           |   |
|                                                 |   |           |   |   |           |   |
| Reclamation liability - by location:                 |   |           |   |   |           |   |
| Elliot Lake                                          |   | $              | 10,008 |   |           | $      | 12,673 |   |
| McClean and Midwest Joint Ventures                   |   |           | 2,200  |   |           |   | 2,991 |   |
|                                                 |   | $              | 12,208 |   |           | $      | 15,664 |   |
|                                                 |   |           |   |   |           |   |   |   |
| Reclamation and remediation liability - by duration: |   |           |   |   |           |   |   |   |
| Current                                              |   | $              | 699    |   |           | $      | 848 |   |
| Non-current                                          |   |           | 11,509 |   |           |   | 14,816 |   |
|                                                 |   | $              | 12,208 |   |           | $      | 15,664 |   |

| (in thousands)                         |   |   |   |
|----------------------------------------|--------|--------|--------|
|                                   |   |   |   |
| Balance - January 1, 2012              |   | $      | 21,576 |   |
| Accretion                              |   |   | 990    |   |
| Business divestiture (see note 5)      |   |   | (7,336 | ) |
| Expenditures incurred                  |   |   | (797   | ) |
| Liability adjustments-income statement |   |   | 762    |   |
| Liability adjustments-balance sheet    |   |   | 151    |   |
| Foreign exchange                       |   |   | 318    |   |
| Balance - December 31, 2012            |   | $      | 15,664 |   |
|                                   |   |   |   |   |
| Accretion                              |   |   | 796    |   |
| Expenditures incurred                  |   |   | (877   | ) |
| Liability adjustments-income statement |   |   | (1,645 | ) |
| Liability adjustments-balance sheet    |   |   | (755   | ) |
| Foreign exchange                       |   |   | (975   | ) |
| Balance - December 31, 2013            |   | $      | 12,208 |   |

----

| 15.  | DEBT OBLIGATIONS |
|-----------|------------------|

|                              |   | At December 31 |   |   | At December 31 |   |
|-----------------------------------|--------|----------------|--------|--------|----------------|--------|
| (in thousands)                    |   | 2013           |   |   | 2012           |   |
|                              |   |           |   |   |           |   |
|                              |   |           |   |   |           |   |
| Notes payable and other financing |   | $              | 97     |   |           | $      | 229 |   |
|                              |   | $              | 97     |   |           | $      | 229 |   |
|                              |   |           |   |   |           |   |   |   |
| Debt obligations, by duration:    |   |           |   |   |           |   |   |   |
| Current                           |   | $              | 55     |   |           | $      | 125 |   |
| Non-current                       |   |           | 42     |   |           |   | 104 |   |
|                              |   | $              | 97     |   |           | $      | 229 |   |

| (in thousands) |   |   |   |
|----------------|--------|--------|--------|
|           |   |   |   |
| 2014           |   | $      | 55     |   |
| 2015           |   |   | 32     |   |
| 2016           |   |   | 10     |   |
|           |   | $      | 97     |   |

----

| 16.  | OTHER LIABILITIES |
|-----------|-------------------|

|                                             |   | At December 31 |   |   | At December 31 |   |
|--------------------------------------------------|--------|----------------|--------|--------|----------------|--------|
| (in thousands)                                   |   | 2013           |   |   | 2012           |   |
|                                             |   |           |   |   |           |   |
| Unamortized fair value of toll milling contracts |   | $              | 940    |   |           | $      | 1,005 |   |
| Flow-through share premium obligation            |   |           | 324    |   |           |   | 1,750 |   |
| Other                                            |   |           | 9      |   |           |   | - |   |
|                                             |   | $              | 1,273  |   |           | $      | 2,755 |   |
|                                             |   |           |   |   |           |   |   |   |
| Other long-term liabilities - by duration:       |   |           |   |   |           |   |   |   |
| Current                                          |   | $              | 333    |   |           | $      | 1,750 |   |
| Non-current                                      |   |           | 940    |   |           |   | 1,005 |   |
|                                             |   | $              | 1,273  |   |           | $      | 2,755 |   |

| 17.  | INCOME TAXES |
|-----------|--------------|

| (in thousands)                                 |   | 2013   |    |   | 2012   |   |
|------------------------------------------------|--------|--------|---------|--------|--------|--------|
|                                           |   |   |    |   |   |   |
| Current income tax:                            |   |   |    |   |   |   |
| Based on taxable income for the period         |   | $      | -       |   |   | $      | - |   |
| Prior period (under) over provision            |   |   | 51      |   |   |   | 318 |   |
|                                           |   |   | 51      |   |   |   | 318 |   |
| Deferred income tax:                           |   |   |    |   |   |   |   |   |
| Origination/reversal of temporary differences  |   |   | 960     |   |   |   | 2,674 |   |
| Tax benefit-previously unrecognized tax assets |   |   | 1,729   |   |   |   | - |   |
| Change in tax rates / legislation              |   |   | (18,410 | )      |   |   | (23 | ) |
| Prior year (under) over provision              |   |   | 248     |   |   |   | 926 |   |
|                                           |   |   | (15,473 | )      |   |   | 3,577 |   |
| Income tax recovery (expense)                  |   | $      | (15,422 | )      |   | $      | 3,895 |   |

----

| (in thousands)                                     |   | 2013   |    |   | 2012   |   |
|----------------------------------------------------|--------|--------|---------|--------|--------|--------|
|                                               |   |   |    |   |   |   |
| Income (loss) before taxes                         |   | $      | (68,413 | )      |   | $      | (29,366 | ) |
| Combined Canadian tax rate                         |   |   | 26.50   | %      |   |   | 26.50 | % |
| Income tax recovery (expense) at combined rate     |   |   | 18,129  |   |   |   | 7,782 |   |
| Difference in foreign tax rates                    |   |   | 2,912   |   |   |   | (190 | ) |
| Non-deductible amounts                             |   |   | (15,810 | )      |   |   | (1,272 | ) |
| Non-taxable amounts                                |   |   | 1,538   |   |   |   | - |   |
| Previously unrecognized future tax assets (1)      |   |   | 1,729   |   |   |   | - |   |
| Renunciation of tax attributes-flow through shares |   |   | (1,101  | )      |   |   | - |   |
| Change in deferred tax assets not recognized       |   |   | (16,559 | )      |   |   | (4,265 | ) |
| Change in tax rates / legislation (2)              |   |   | (18,410 | )      |   |   | - |   |
| Prior year (under) over provision                  |   |   | 299     |   |   |   | 1,244 |   |
| Other                                              |   |   | 11,851  |   |   |   | 596 |   |
| Income tax recovery (expense)                      |   | $      | (15,422 | )      |   | $      | 3,895 |   |

|   | (1) | The Company has recognized certain previously unrecognized Canadian tax assets most of which relates to the 2013 renunciation of certain tax benefits to subscribers of its October 2012 CAD$7,005,000 flow-through share offering; and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | In December 2013, a new uranium mining royalty system became substantively enacted in the province of Saskatchewan, Canada.  The Company has concluded that a component of the new royalty system constitutes an income-based tax and is within the scope of IAS 12.  The tax basis available to the Company under the new system is significantly less than the carrying value associated with the assets that will be subject to the royalty in future years.  Accordingly, a deferred tax liability has been recorded by way of a corresponding charge to deferred tax expense in Q4-2013. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                              |   | At December 31 |    |   | At December 31 |   |
|---------------------------------------------------|--------|----------------|---------|--------|----------------|--------|
| (in thousands)                                    |   | 2013           |    |   | 2012           |   |
|                                              |   |           |    |   |           |   |
| Deferred income tax assets:                       |   |           |    |   |           |   |
| Property, plant and equipment, net                |   | $              | 636     |   |           | $      | 394 |   |
| Post-employment benefits                          |   |           | 887     |   |           |   | 1,045 |   |
| Reclamation and remediation obligations           |   |           | 3,392   |   |           |   | 4,225 |   |
| Other long-term liabilities                       |   |           | 249     |   |           |   | 271 |   |
| Tax loss carry forwards                           |   |           | 8,061   |   |           |   | 4,720 |   |
| Other                                             |   |           | 5,531   |   |           |   | 5,520 |   |
| Deferred income tax assets-gross                  |   |           | 18,756  |   |           |   | 16,175 |   |
| Set-off against deferred income tax liabilities   |   |           | (18,756 | )      |           |   | (16,175 | ) |
| Deferred income tax assets-per balance sheet      |   | $              | -       |   |           | $      | - |   |
|                                              |   |           |    |   |           |   |   |   |
| Deferred income tax liabilities:                  |   |           |    |   |           |   |   |   |
| Inventory                                         |   | $              | (696    | )      |           | $      | (594 | ) |
| Property, plant and equipment, net                |   |           | (42,237 | )      |           |   | (23,481 | ) |
| Intangibles                                       |   |           | (331    | )      |           |   | (542 | ) |
| Other                                             |   |           | (1,339  | )      |           |   | (1,001 | ) |
| Deferred income tax liabilities-gross             |   |           | (44,603 | )      |           |   | (25,618 | ) |
| Set-off of deferred income tax assets             |   |           | 18,756  |   |           |   | 16,175 |   |
| Deferred income tax liabilities-per balance sheet |   | $              | (25,847 | )      |           | $      | (9,443 | ) |

----

| (in thousands)                                        |   |   |    |
|-------------------------------------------------------|--------|--------|---------|
|                                                  |   |   |    |
| Balance - January 1, 2012                             |   | $      | (12,747 | ) |
| Recognized in income (loss)                           |   |   | 3,577   |   |
| Other, including foreign exchange gain (loss)         |   |   | (273    | ) |
| Balance - December 31, 2012                           |   | $      | (9,443  | ) |
|                                                  |   |   |    |   |
| Recognized in income (loss)                           |   |   | (15,473 | ) |
| Recognized in other liabilities (flow-through shares) |   |   | (1,727  | ) |
| Recognized in equity (warrant expiries)               |   |   | (2      | ) |
| Other, including foreign exchange gain (loss)         |   |   | 798     |   |
| Balance - December 31, 2013                           |   | $      | (25,847 | ) |

|                                      |   | At December 31 |   |   | At December 31 |   |
|-------------------------------------------|--------|----------------|--------|--------|----------------|--------|
| (in thousands)                            |   | 2013           |   |   | 2012           |   |
|                                      |   |           |   |   |           |   |
| Deferred income tax assets not recognized |   |           |   |   |           |   |
| Investments                               |   | $              | 118    |   |           | $      | 117 |   |
| Property, plant and equipment             |   |           | 26,750 |   |           |   | 9,125 |   |
| Tax losses – capital                |   |           | 29,141 |   |           |   | 31,208 |   |
| Tax losses – operating              |   |           | 27,903 |   |           |   | 19,560 |   |
| Tax credits                               |   |           | 1,131  |   |           |   | 761 |   |
| Other deductible temporary differences    |   |           | 2,852  |   |           |   | 2,615 |   |
| Deferred income tax assets not recognized |   | $              | 87,895 |   |           | $      | 63,386 |   |

|                                     |   | Expiry    |      |   | At December 31 |   |    | At December 31 |   |
|------------------------------------------|--------|-----------|-----------|--------|----------------|--------|---------|----------------|--------|
| (in thousands)                           |   | Date      |      |   | 2013           |   |    | 2012           |   |
|                                     |   |      |      |   |           |   |    |           |   |
| Tax losses - gross                       |   |      |      |   |           |   |    |           |   |
| Canada                                   |   |      | 2028-2033 |   |           | $      | 116,113 |           |   | $ | 75,217 |   |
| Mongolia                                 |   |      | 2018-2021 |   |           |   | 4,547   |           |   |   | 742 |   |
| Zambia                                   |   |      | 2013-2023 |   |           |   | 12,284  |           |   |   | 13,134 |   |
| Other                                    |   | Unlimited |      |   |           | 378    |    |           |   | 584 |   |
| Tax losses - gross                       |   |      |      |   |           |   | 133,322 |           |   |   | 89,677 |   |
| Tax benefit at tax rate of 25% - 37.5%   |   |      |      |   |           |   | 35,964  |           |   |   | 24,280 |   |
| Set-off against deferred tax liabilities |   |      |      |   |           |   | (8,061  | )              |   |   | (4,720 | ) |
| Total tax loss assets not recognized     |   |      |      |   |           | $      | 27,903  |           |   | $ | 19,560 |   |
|                                     |   |      |      |   |           |   |    |           |   |   |   |   |
| Tax credits                              |   |      |      |   |           |   |    |           |   |   |   |   |
| Canada                                   |   |      | 2028-2033 |   |           |   | 1,131   |           |   |   | 761 |   |
| Total tax credit assets not recognized   |   |      |      |   |           | $      | 1,131   |           |   | $ | 761 |   |

----

| 18.  | SHARE CAPITAL |
|-----------|---------------|

|                                                    |   | Number of |        |   |   |   |
|---------------------------------------------------------|--------|-----------|-------------|--------|--------|--------|
|                                                    |   | Common    |        |   |   |   |
| (in thousands except share amounts)                     |   | Shares    |        |   |   |   |
|                                                    |   |      |        |   |   |   |
| Balance at January 1, 2012                              |   |      | 384,660,915 |   |   | $      | 974,312 |   |
| Issued for cash:                                        |   |      |        |   |   |   |   |   |
| New issue gross proceeds                                |   |      | 4,145,000   |   |   |   | 7,019 |   |
| New issue gross issue costs                             |   |      | -           |   |   |   | (463 | ) |
| Flow-through share premium liability                    |   |      | -           |   |   |   | (1,744 | ) |
|                                                    |   |      | 4,145,000   |   |   |   | 4,812 |   |
| Balance at December 31, 2012                            |   |      | 388,805,915 |   |   | $      | 979,124 |   |
|                                                    |   |      |        |   |   |   |   |   |
| Issued for cash:                                        |   |      |        |   |   |   |   |   |
| New issue gross proceeds                                |   |      | 11,500,000  |   |   |   | 14,382 |   |
| New issue gross issue costs                             |   |      | -           |   |   |   | (755 | ) |
| Share options exercised                                 |   |      | 134,972     |   |   |   | 111 |   |
| Share purchase warrants exercised                       |   |      | 402,129     |   |   |   | 330 |   |
| Acquisition of JNR                                      |   |      | 7,975,479   |   |   |   | 10,956 |   |
| Acquisition of Fission                                  |   |      | 53,053,284  |   |   |   | 66,259 |   |
| Acquisition of Rockgate                                 |   |      | 20,131,665  |   |   |   | 21,760 |   |
| Share options exercised-fair value adjustment           |   |      | -           |   |   |   | 98 |   |
| Share purchase warrants exercised-fair value adjustment |   |      | -           |   |   |   | 211 |   |
| Flow-through share premium liability                    |   |      | -           |   |   |   | (332 | ) |
|                                                    |   |      | 93,197,529  |   |   |   | 113,020 |   |
| Balance at December 31, 2013                            |   |      | 482,003,444 |   |   | $      | 1,092,144 |   |

----

| 19.  | SHARE PURCHASE WARRANTS |
|-----------|-------------------------|

|                                                 |   | Weighted     |   |   |      |   |      |   |   |
|------------------------------------------------------|--------|--------------|--------|--------|-----------|--------|-----------|--------|--------|
|                                                 |   | Average      |   |   | Number of |   |      |   |   |
|                                                 |   | Exercise     |   |   | Common    |   |      | Fair   |   |
|                                                 |   | Price Per    |   |   | Shares    |   |      | Value  |   |
| (in thousands except share amounts)                  |   | Share (CAD$) |   |   | Issuable  |   |      | Amount |   |
|                                                 |   |         |   |   |      |   |      |   |   |
| Balance outstanding at December 31, 2012             |   | $            | -      |   |      |   | -         |   |   | $ | - |   |
|                                                 |   |         |   |   |      |   |      |   |   |   |   |   |
| Warrants issued on acquisition of JNR (note 5)       |   |         | 2.05   |   |      |   | 272,290   |   |   |   | 17 |   |
| Warrants assumed on acquisition of Fission (note 5)  |   |         | 0.84   |   |      |   | 1,500,854 |   |   |   | 827 |   |
| Warrants exercised                                   |   |         | 0.85   |   |      |   | (402,129  | )      |   |   | (211 | ) |
| Warrants expired                                     |   |         | 2.05   |   |      |   | (272,290  | )      |   |   | (17 | ) |
| Balance outstanding at December 31, 2013             |   | $            | 0.84   |   |      |   | 1,098,725 |   |   | $ | 616 |   |
|                                                 |   |         |   |   |      |   |      |   |   |   |   |   |
| Balance of common shares issuable by warrant series: |   |         |   |   |      |   |      |   |   |   |   |   |
| JNR May 2012 series (1)                              |   | $            | 2.05   |   |      |   | -         |   |   | $ | - |   |
| Fission November 2011 series (2)                     |   |         | 1.09   |   |      |   | -         |   |   |   | - |   |
| Fission December 2012 series (3)                     |   |         | 0.77   |   |      |   | -         |   |   |   | - |   |
| Fission January 2013 series (4)                      |   |         | 0.84   |   |      |   | 1,098,725 |   |   |   | 616 |   |
| Balance outstanding at December 31, 2013             |   | $            | 0.84   |   |      |   | 1,098,725 |   |   | $ | 616 |   |

|   | (1) | The JNR May 2012 series had an effective exercise price of CAD$2.05 per issuable share and expired on November 1, 2013. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------|

|   | (2) | The Fission November 2011 series had an effective exercise price of CAD$1.09 per issuable share and expired on November 17, 2013. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | The Fission December 2012 series had an effective exercise price of CAD$0.77 per issuable share and expires on December 21, 2014. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | The Fission January 2013 series has an effective exercise price of CAD$0.84 per issuable share and expires on January 21, 2015. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------|

| 20.  | STOCK OPTIONS |
|-----------|---------------|

|   | The Company’s stock-based compensation plan (the “Plan”) provides for the granting of stock options up to 10% of the issued and outstanding common shares at the time of grant, subject to a maximum of 39,670,000 common shares.  As at December 31, 2013, an aggregate of 13,393,880 options have been granted (less cancellations) since the Plan’s inception in 1997. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Under the Plan, all stock options are granted at the discretion of the Company’s board of directors, including any vesting provisions if applicable.  The term of any stock option granted may not exceed ten years and the exercise price may not be lower than the closing price of the Company’s shares on the last trading day immediately preceding the date of grant.  In general, stock options granted under the Plan have five year terms and vesting periods up to thirty months. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | A continuity summary of the stock options of the Company granted under the Plan is presented below: |
|--------|-----------------------------------------------------------------------------------------------------|

----

|                                            |   |      |       |   | Weighted- |   |
|-------------------------------------------------|--------|-----------|------------|--------|-----------|--------|
|                                            |   |      |       |   | Average   |   |
|                                            |   |      |       |   | Exercise  |   |
|                                            |   | Number of |       |   | Price per |   |
|                                            |   | Common    |       |   | Share     |   |
|                                            |   | Shares    |       |   | (CAD$)    |   |
|                                            |   |      |       |   |      |   |
| Stock options outstanding - beginning of period |   |      | 7,013,765  |   |      | $      | 2.47 |   |
| Issued on acquisition of JNR (note 5)           |   |      | 579,255    |   |      |   | 5.70 |   |
| Issued on acquisition of Fission (note 5)       |   |      | 1,985,035  |   |      |   | 1.01 |   |
| Granted                                         |   |      | 1,320,000  |   |      |   | 1.30 |   |
| Exercised (1)                                   |   |      | (134,972   | )      |      |   | 0.85 |   |
| Forfeitures                                     |   |      | (1,801,040 | )      |      |   | 2.41 |   |
| Expiries                                        |   |      | (530,905   | )      |      |   | 7.12 |   |
| Stock options outstanding - end of period       |   |      | 8,431,138  |   |      | $      | 1.91 |   |
| Stock options exercisable - end of period       |   |      | 6,583,638  |   |      | $      | 2.07 |   |

|   | (1) | The weighted average share price at the date of exercise was CAD$1.24. |
|--------|-----|------------------------------------------------------------------------|

|                                           |                |   | Weighted    |   |   |      |   |      | Weighted- |   |
|------------------------------------------------|---------------------|--------|-------------|--------|--------|-----------|--------|-----------|-----------|--------|
|                                           |                |   | Average     |   |   |      |   |      | Average   |   |
|                                           |                |   | Remaining   |   |   |      |   |      | Exercise  |   |
| Range of Exercise                              |                |   | Contractual |   |   | Number of |   |      | Price per |   |
| Prices per Share                               |                |   | Life        |   |   | Common    |   |      | Share     |   |
| (CAD$)                                         |                |   | (Years)     |   |   | Shares    |   |      | (CAD$)    |   |
|                                           |                |   |        |   |   |      |   |      |      |   |
| Stock options outstanding                      |                |   |        |   |   |      |   |      |      |   |
| $                                              | 0.38 to $ 2.49 |   |        |   | 2.28   |      |   |      | 6,946,163 |   |   | $ | 1.52 |   |
| $                                              | 2.50 to $ 4.99 |   |        |   | 1.82   |      |   |      | 1,109,656 |   |   |   | 3.33 |   |
| $                                              | 5.00 to $ 5.67 |   |        |   | 2.23   |      |   |      | 375,319   |   |   |   | 5.06 |   |
| Stock options outstanding - end of period |                |   |        | 2.22   |   |      |   | 8,431,138 |      |   | $ | 1.91 |   |

|                                       |     | 2013      |    |                      | 2012      |   |
|--------------------------------------------|----------|-----------|---------|---------------------------|-----------|--------|
|                                       |     |      |    |                      |      |   |
| Risk-free interest rate                    |     |      | 1.29    | %                         |      |   | 1.21% – 1.39 | % |
| Expected stock price volatility            |     |      | 60.2    | %                         |      |   | 65.5% – 92.8 | % |
| Expected life                              |     | 3.6 years |    |                      | 3.7 years |   |
| Estimated forfeiture rate (1)              |     |      | 4.6     | %                         |      |   | 4.7 | % |
| Expected dividend yield                    |     |      | – |                      |      |   | – |   |
| Fair value per share under options granted | CAD$0.58 |      |    | CAD$0.56 – CAD$0.97 |      |

|   | (1) | The estimated forfeiture rate for 2012 excludes 2,404,250 stock options that were forfeited in the third quarter of 2012 due to the U.S. Mining Division transaction with EFR (see note 5). |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 21.  | ACCUMULATED OTHER COMPREHENSIVE INCOME |
|-----------|----------------------------------------|

|                                                          |   | At December 31 |   |   | At December 31    |   |
|---------------------------------------------------------------|--------|----------------|--------|--------|-------------------|--------|
| (in thousands)                                                |   | 2013           |   |   | 2012              |   |
|                                                          |   |           |   |   | Restated (note 3) |   |
|                                                          |   |           |   |   |              |   |
| Cumulative foreign currency translation                       |   | $              | (7,880 | )      |              | $      | 11,062 |   |
| Unamortized experience gain – post employment liability |   |           |   |   |              |   |   |   |
| Gross                                                         |   |           | 206    |   |              |   | 206 |   |
| Tax effect                                                    |   |           | (56    | )      |              |   | (56 | ) |
| Unrealized gains (losses) on investments                      |   |           |   |   |              |   |   |   |
| Gross                                                         |   |           | 1      |   |              |   | (285 | ) |
|                                                          |   | $              | (7,729 | )      |              | $      | 10,927 |   |

| 22.  | SUPPLEMENTAL FINANCIAL INFORMATION |
|-----------|------------------------------------|

|                              |   | Year Ended  |    |
|-----------------------------------|--------|-------------|---------|
|                              |   | December 31 |    |   | December 31 |   |
| (in thousands)                    |   | 2013        |    |   | 2012 |   |
|                              |   |        |    |   |   |   |
| Cost of goods and services sold:  |   |        |    |   |   |   |
| Operating Overheads:              |   |        |    |   |   |   |
| Mining, other development expense |   | $           | (2,739  | ) |   | $ | (5,674 | ) |
| Milling, conversion expense       |   |        | (72     | ) |   |   | (72 | ) |
| Less absorption:                  |   |        |    |   |   |   |   |   |
| -Stockpiles, mineral properties   |   |        | 1,203   |   |   |   | 2,278 |   |
| Cost of services                  |   |        | (8,812  | ) |   |   | (10,131 | ) |
| Cost of goods and services sold   |   |        | (10,420 | ) |   |   | (13,599 | ) |
| Reclamation asset amortization    |   |        | (36     | ) |   |   | (32 | ) |
| Reclamation liability adjustments |   |        | 1,645   |   |   |   | (762 | ) |
| Sales royalties and capital taxes |   |        | -       |   |   |   | 9 |   |
| Operating expenses                |   | $           | (8,811  | ) |   | $ | (14,384 | ) |

|                                        |   | Year Ended  |   |
|---------------------------------------------|--------|-------------|--------|
|                                        |   | December 31 |   |   | December 31 |   |
| (in thousands)                              |   | 2013        |   |   | 2012 |   |
|                                        |   |        |   |   |   |   |
| Gains (losses) on:                          |   |        |   |   |   |   |
| Foreign exchange                            |   | $           | 17     |   |   | $ | (2,526 | ) |
| Disposal of property, plant and equipment   |   |        | (12    | ) |   |   | 67 |   |
| Investment impairments                      |   |        | (39    | ) |   |   | (64 | ) |
| Investment fair value through profit (loss) |   |        | (1,328 | ) |   |   | 523 |   |
| Restructuring of GSJV (1)                   |   |        | -      |   |   |   | (742 | ) |
| Other                                       |   |        | 833    |   |   |   | 66 |   |
| Other income (expense)                      |   | $           | (529   | ) |   | $ | (2,676 | ) |

|   | (1) | In March 2012, Denison acquired an additional 15% interest in the GSJV, from a prior participant, for cash consideration of $742,000 and the release of the prior participant’s share of unfunded GSJV obligations.  This payment has been expensed in the statement of operations as Denison expects to transfer this additional interest to Mon-Atom as part of a restructuring plan associated with its Mongolian interests (see note 11). |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                       |   | Year Ended  |   |
|--------------------------------------------|--------|-------------|--------|
|                                       |   | December 31 |   |   | December 31 |   |
| (in thousands)                             |   | 2013        |   |   | 2012 |   |
|                                       |   |        |   |   |   |   |
| Interest income                            |   | $           | 392    |   |   | $ | 483 |   |
| Interest expense                           |   |        | (3     | ) |   |   | (7 | ) |
| Accretion expense-reclamation obligations  |   |        | (796   | ) |   |   | (794 | ) |
| Accretion expense-post-employment benefits |   |        | (125   | ) |   |   | (132 | ) |
| Finance income (expense)                   |   | $           | (532   | ) |   | $ | (450 | ) |

|                              |   | Year Ended  |   |
|-----------------------------------|--------|-------------|--------|
|                              |   | December 31 |   |   | December 31 |   |
| (in thousands)                    |   | 2013        |   |   | 2012 |   |
|                              |   |        |   |   |   |   |
| Operating expenses:               |   |        |   |   |   |   |
| Mining, other development expense |   | $           | (283   | ) |   | $ | (316 | ) |
| Milling, conversion expense       |   |        | (11    | ) |   |   | (39 | ) |
| Cost of services                  |   |        | (259   | ) |   |   | (311 | ) |
| Mineral property exploration      |   |        | (174   | ) |   |   | (96 | ) |
| General and administrative        |   |        | (69    | ) |   |   | (86 | ) |
| Depreciation expense - gross      |   | $           | (796   | ) |   | $ | (848 | ) |

|                                      |   | Year Ended  |    |
|-------------------------------------------|--------|-------------|---------|
|                                      |   | December 31 |    |   | December 31 |   |
| (in thousands)                            |   | 2013        |    |   | 2012 |   |
|                                      |   |        |    |   |   |   |
| Salaries and short-term employee benefits |   | $           | (9,272  | ) |   | $ | (10,135 | ) |
| Share-based compensation                  |   |        | (903    | ) |   |   | (1,591 | ) |
| Termination benefits                      |   |        | (474    | ) |   |   | (1,054 | ) |
| Employee benefits expense                 |   | $           | (10,649 | ) |   | $ | (12,780 | ) |

|                                      |   | Year Ended  |   |
|-------------------------------------------|--------|-------------|--------|
|                                      |   | December 31 |   |   | December 31 |   |
| (in thousands)                            |   | 2013        |   |   | 2012 |   |
|                                      |   |        |   |   |   |   |
| Change in non-cash working capital items: |   |        |   |   |   |   |
| Trade and other receivables               |   | $           | (1,720 | ) |   | $ | 9,449 |   |
| Inventories                               |   |        | (187   | ) |   |   | (14,025 | ) |
| Prepaid expenses and other assets         |   |        | (78    | ) |   |   | 1,314 |   |
| Accounts payable and accrued liabilities  |   |        | 331    |   |   |   | 3,296 |   |
| Post-employment benefits                  |   |        | (235   | ) |   |   | (235 | ) |
| Reclamation obligations                   |   |        | (877   | ) |   |   | (797 | ) |
| Deferred revenue                          |   |        | -      |   |   |   | 257 |   |
| Change in non-cash working capital items  |   | $           | (2,766 | ) |   | $ | (741 | ) |

----

| 23.  | SEGMENTED INFORMATION |
|-----------|-----------------------|

|   | The Company operates in two primary segments – the Mining segment and the Services and Other segment.  The Mining segment, which has been further subdivided by major geographic regions, includes activities related to exploration, evaluation and development, mining, milling and the sale of mineral concentrates.  The Services and Other segment includes the results of the Company’s environmental services business, management fees and commission income earned from UPC and other customers and general corporate expenses not allocated to the other segments. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  (in thousands)                    |   | Canada Mining |    |   | AsiaMining |   |   | AfricaMining |   |   | Services and Other |   |   | Total  |    |
|-----------------------------------------|--------|--------------------|---------|--------|------------|--------|--------|--------------|--------|--------|--------------------|--------|--------|--------|---------|
|                                    |   |               |    |   |       |   |   |         |   |   |               |   |   |   |    |
| Statement of Operations:                |   |               |    |   |       |   |   |         |   |   |               |   |   |   |    |
| Revenues                                |   |               | -       |   |       |   | -      |         |   |   | -                  |   |   |   | 10,407  |   |   |   | 10,407 |   |
|                                    |   |               |    |   |       |   |   |         |   |   |               |   |   |   |    |   |   |   |   |   |
| Expenses:                               |   |               |    |   |       |   |   |         |   |   |               |   |   |   |    |   |   |   |   |   |
| Operating expenses                      |   |               | 649     |   |       |   | -      |         |   |   | (648               | )      |   |   | (8,812  | ) |   |   | (8,811 | ) |
| Mineral property exploration            |   |               | (12,019 | )      |       |   | (550   | )            |   |   | (1,113             | )      |   |   | -       |   |   |   | (13,682 | ) |
| General and administrative              |   |               | (5      | )      |       |   | (788   | )            |   |   | (1,022             | )      |   |   | (6,352  | ) |   |   | (8,167 | ) |
| Impairment-mineral properties (note 11) |   |               | (934    | )      |       |   | -      |         |   |   | (46,165            | )      |   |   | -       |   |   |   | (47,099 | ) |
|                                    |   |               | (12,309 | )      |       |   | (1,338 | )            |   |   | (48,948            | )      |   |   | (15,164 | ) |   |   | (77,759 | ) |
| Segment income (loss)                   |   |               | (12,309 | )      |       |   | (1,338 | )            |   |   | (48,948            | )      |   |   | (4,757  | ) |   |   | (67,352 | ) |
|                                    |   |               |    |   |       |   |   |         |   |   |               |   |   |   |    |   |   |   |   |   |
| Revenues – supplemental:          |   |               |    |   |       |   |   |         |   |   |               |   |   |   |    |   |   |   |   |   |
| Environmental services                  |   |               | -       |   |       |   | -      |         |   |   | -                  |   |   |   | 8,763   |   |   |   | 8,763 |   |
| Management fees and commissions         |   |               | -       |   |       |   | -      |         |   |   | -                  |   |   |   | 1,644   |   |   |   | 1,644 |   |
|                                    |   |               | -       |   |       |   | -      |         |   |   | -                  |   |   |   | 10,407  |   |   |   | 10,407 |   |
|                                    |   |               |    |   |       |   |   |         |   |   |               |   |   |   |    |   |   |   |   |   |
| Capital additions:                      |   |               |    |   |       |   |   |         |   |   |               |   |   |   |    |   |   |   |   |   |
| Property, plant and equipment           |   |               | 1,188   |   |       |   | 114    |         |   |   | 1,010              |   |   |   | 83      |   |   |   | 2,395 |   |
|                                    |   |               |    |   |       |   |   |         |   |   |               |   |   |   |    |   |   |   |   |   |
| Long-lived assets:                      |   |               |    |   |       |   |   |         |   |   |               |   |   |   |    |   |   |   |   |   |
| Plant and equipment                     |   |               |    |   |       |   |   |         |   |   |               |   |   |   |    |   |   |   |   |   |
| Cost                                    |   |               | 87,328  |   |       |   | 396    |         |   |   | 2,613              |   |   |   | 3,984   |   |   |   | 94,321 |   |
| Accumulated depreciation                |   |               | (8,792  | )      |       |   | (253   | )            |   |   | (1,726             | )      |   |   | (1,856  | ) |   |   | (12,627 | ) |
| Mineral properties                      |   |               | 144,649 |   |       |   | 7,229  |         |   |   | 47,438             |   |   |   | -       |   |   |   | 199,316 |   |
| Intangibles                             |   |               | -       |   |       |   | -      |         |   |   | -                  |   |   |   | 1,252   |   |   |   | 1,252 |   |
|                                    |   |               | 223,185 |   |       |   | 7,372  |         |   |   | 48,325             |   |   |   | 3,380   |   |   |   | 282,262 |   |

----

| (in thousands)                  |   | Canada Mining |    |   | AsiaMining |   |   | AfricaMining |   |   | Services and Other |   |   | Total  |    |
|---------------------------------|--------|--------------------|---------|--------|------------|--------|--------|--------------|--------|--------|--------------------|--------|--------|--------|---------|
|                            |   |               |    |   |       |   |   |         |   |   |               |   |   |   |    |
| Statement of Operations:        |   |               |    |   |       |   |   |         |   |   |               |   |   |   |    |
| Revenues                        |   |               | -       |   |       |   | -      |         |   |   | -                  |   |   |   | 11,127  |   |   |   | 11,127 |   |
|                            |   |               |    |   |       |   |   |         |   |   |               |   |   |   |    |   |   |   |   |   |
| Expenses:                       |   |               |    |   |       |   |   |         |   |   |               |   |   |   |    |   |   |   |   |   |
| Operating expenses              |   |               | (4,175  | )      |       |   | -      |         |   |   | (78                | )      |   |   | (10,131 | ) |   |   | (14,384 | ) |
| Mineral property exploration    |   |               | (5,725  | )      |       |   | (3,156 | )            |   |   | (3,627             | )      |   |   | -       |   |   |   | (12,508 | ) |
| General and administrative      |   |               | -       |   |       |   | (788   | )            |   |   | (1,115             | )      |   |   | (8,572  | ) |   |   | (10,475 | ) |
|                            |   |               | (9,900  | )      |       |   | (3,944 | )            |   |   | (4,820             | )      |   |   | (18,703 | ) |   |   | (37,367 | ) |
| Segment income (loss)           |   |               | (9,900  | )      |       |   | (3,944 | )            |   |   | (4,820             | )      |   |   | (7,576  | ) |   |   | (26,240 | ) |
|                            |   |               |    |   |       |   |   |         |   |   |               |   |   |   |    |   |   |   |   |   |
| Revenues – supplemental:  |   |               |    |   |       |   |   |         |   |   |               |   |   |   |    |   |   |   |   |   |
| Environmental services          |   |               | -       |   |       |   | -      |         |   |   | -                  |   |   |   | 9,456   |   |   |   | 9,456 |   |
| Management fees and commissions |   |               | -       |   |       |   | -      |         |   |   | -                  |   |   |   | 1,671   |   |   |   | 1,671 |   |
|                            |   |               | -       |   |       |   | -      |         |   |   | -                  |   |   |   | 11,127  |   |   |   | 11,127 |   |
|                            |   |               |    |   |       |   |   |         |   |   |               |   |   |   |    |   |   |   |   |   |
| Capital additions: (1)          |   |               |    |   |       |   |   |         |   |   |               |   |   |   |    |   |   |   |   |   |
| Property, plant and equipment   |   |               | 1,348   |   |       |   | 236    |         |   |   | 2,165              |   |   |   | 325     |   |   |   | 4,074 |   |
|                            |   |               |    |   |       |   |   |         |   |   |               |   |   |   |    |   |   |   |   |   |
| Long-lived assets:              |   |               |    |   |       |   |   |         |   |   |               |   |   |   |    |   |   |   |   |   |
| Plant and equipment             |   |               |    |   |       |   |   |         |   |   |               |   |   |   |    |   |   |   |   |   |
| Cost                            |   |               | 93,104  |   |       |   | 600    |         |   |   | 1,217              |   |   |   | 4,426   |   |   |   | 99,347 |   |
| Accumulated depreciation        |   |               | (9,119  | )      |       |   | (410   | )            |   |   | (713               | )      |   |   | (1,901  | ) |   |   | (12,143 | ) |
| Mineral properties              |   |               | 74,041  |   |       |   | 8,337  |         |   |   | 78,306             |   |   |   | -       |   |   |   | 160,684 |   |
| Intangibles                     |   |               | -       |   |       |   | -      |         |   |   | -                  |   |   |   | 2,008   |   |   |   | 2,008 |   |
|                            |   |               | 158,026 |   |       |   | 8,527  |         |   |   | 78,810             |   |   |   | 4,533   |   |   |   | 249,896 |   |

|   | (1) | In June 2012, the Company divested its U.S. Mining Division (see note 5).  The capital additions amount reported above excludes $10,450,000 of capital additions attributable to the former U.S. mining segment. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 24.  | RELATED PARTY TRANSACTIONS |
|-----------|----------------------------|

----

|   | The following transactions were incurred with UPC for the periods noted: |
|--------|--------------------------------------------------------------------------|

|            |   | Year Ended  |   |
|-----------------|--------|-------------|--------|
|            |   | December 31 |   |   | December 31 |   |
| (in thousands)  |   | 2013        |   |   | 2012 |   |
|            |   |        |   |   |   |   |
| Revenue:        |   |        |   |   |   |   |
| Management fees |   | $           | 1,644  |   |   | $ | 1,671 |   |
|            |   | $           | 1,644  |   |   | $ | 1,671 |   |

|                                      |   | Year Ended  |   |
|-------------------------------------------|--------|-------------|--------|
|                                      |   | December 31 |   |   | December 31 |   |
| (in thousands)                            |   | 2013        |   |   | 2012 |   |
|                                      |   |        |   |   |   |   |
| Salaries and short-term employee benefits |   | $           | 1,630  |   |   | $ | 1,614 |   |
| Share-based compensation                  |   |        | 577    |   |   |   | 1,127 |   |
| Termination benefits                      |   |        | -      |   |   |   | 867 |   |
| Key management personnel compensation     |   | $           | 2,207  |   |   | $ | 3,608 |   |

----

| 25.  | CAPITAL MANAGEMENT AND FINANCIAL RISK |
|-----------|---------------------------------------|

|                                               |   | At December 31 |   |   | At December 31 |   |
|----------------------------------------------------|--------|----------------|--------|--------|----------------|--------|
| (in thousands)                                     |   | 2013           |   |   | 2012           |   |
|                                               |   |           |   |   |           |   |
| Net cash:                                          |   |           |   |   |           |   |
| Cash and cash equivalents                          |   | $              | 21,786 |   |           | $      | 38,188 |   |
| Investments in debt instruments (see note 5 and 9) |   |           | 14,818 |   |           |   | - |   |
| Debt obligations - current                         |   |           | (55    | )      |           |   | (125 | ) |
| Debt obligations – long term                 |   |           | (42    | )      |           |   | (104 | ) |
| Net cash                                           |   |           | 36,507 |   |           |   | 37,959 |   |

|   | (a) | Credit Risk |
|--------|-----|-------------|

|                            |   | At December 31 |   |   | At December 31 |   |
|---------------------------------|--------|----------------|--------|--------|----------------|--------|
| (in thousands)                  |   | 2013           |   |   | 2012           |   |
|                            |   |           |   |   |           |   |
| Cash and cash equivalents       |   | $              | 21,786 |   |           | $      | 38,188 |   |
| Trade and other receivables     |   |           | 4,148  |   |           |   | 2,638 |   |
| Investments in debt instruments |   |           | 14,818 |   |           |   | - |   |
| Restricted cash and investments |   |           | 2,299  |   |           |   | 2,254 |   |
|                            |   | $              | 43,051 |   |           | $      | 43,080 |   |

----

|   | (b) | Liquidity Risk |
|--------|-----|----------------|

| (in thousands)                           |   | Within 1Year |   |   | 1 to 5Years |   |
|------------------------------------------|--------|--------------|--------|--------|-------------|--------|
|                                     |   |         |   |   |        |   |
| Accounts payable and accrued liabilities |   | $            | 7,992  |   |        | $      | - |   |
| Debt obligations (Note 15)               |   |         | 55     |   |        |   | 42 |   |
|                                     |   | $            | 8,047  |   |        | $      | 42 |   |

|   | (c) | Currency Risk |
|--------|-----|---------------|

|                                         |   | Dec.31’2013 |     |   | Sensitivity |   |     | Change in  |   |
|----------------------------------------------|--------|-------------------|----------|--------|-------------|--------|----------|------------|--------|
|                                         |   | Foreign Ex-       |     |   | Foreign Ex- |   |     | net income |   |
| (in thousands except foreign exchange rates) |   | Change Rate       |     |   | Change Rate |   |     | (loss)     |   |
| Currency risk                                |   |              |     |   |        |   |     |       |   |
| Canadian dollar (“CAD”)          |   |              | 0.9402   |   |        |   | 0.8462   |       |   | $ | 15,422 |   |
| Mongolian tugrog (“MNT”)         |   |              | 1,614.99 |   |        |   | 1,776.49 |       |   |   | (4,022 | ) |
| West Africa French Franc (“CFA”) |   |              | 476.64   |   |        |   | 524.31   |       |   |   | (5,873 | ) |
| Zambian kwacha (“ZMW”)           |   |              | 5.5685   |   |        |   | 6.1253   |       |   |   | (4,564 | ) |
|                                         |   |              |     |   |        |   |     |       |   | $ | 963 |   |

|   | (d) | Interest Rate Risk |
|--------|-----|--------------------|

----

|   | (e) | Price Risk |
|--------|-----|------------|

|                          |   | Change in  |   |   | Change in     |   |
|-------------------------------|--------|------------|--------|--------|---------------|--------|
|                          |   | net income |   |   | comprehensive |   |
| (in thousands)                |   | (loss)     |   |   | income (loss) |   |
|                          |   |       |   |   |          |   |
| Equity price risk             |   |       |   |   |          |   |
| 10% increase in equity prices |   | $          | 109    |   |          | $      | 111 |   |

|   | — | Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities; |
|--------|---------|-------------------------------------------------------------------------------------------------|

|   | — | Level 2 – Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly; and |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------|

|   | — | Level 3 – Inputs that are not based on observable market data. |
|--------|---------|----------------------------------------------------------------------|

|                                    |        |   |      |   | December 31 |   |   | December 31, |   |
|-----------------------------------------|-------------|--------|-----------|--------|-------------|--------|--------|--------------|--------|
|                                    | Financial   |   | Fair      |   | 2013        |   |   | 2012         |   |
|                                    | Instrument  |   | Value     |   | Fair        |   |   | Fair         |   |
| (in thousands)                          | Category(1) |   | Hierarchy |   | Value       |   |   | Value        |   |
|                                    |        |   |      |   |        |   |   |         |   |
| Financial Assets:                       |        |   |      |   |        |   |   |         |   |
| Cash and equivalents                    | Category D  |   |      |   | $           | 21,786 |   |         | $      | 38,188 |   |
| Trade and other receivables             | Category D  |   |      |   |        | 4,148  |   |         |   | 2,638 |   |
| Investments                             |        |   |      |   |        |   |   |         |   |   |   |
| Equity instruments                      | Category A  |   | Level 1   |   |        | 1,106  |   |         |   | 2,332 |   |
| Equity instruments                      | Category B  |   | Level 1   |   |        | 17     |   |         |   | 511 |   |
| Debt instruments                        | Category A  |   | Level 1   |   |        | 14,818 |   |         |   | - |   |
| Restricted cash and equivalents         |        |   |      |   |        |   |   |         |   |   |   |
| Elliot Lake reclamation trust fund      | Category C  |   |      |   |        | 2,299  |   |         |   | 2,254 |   |
|                                    |        |   |      |   | $           | 44,174 |   |         | $      | 45,923 |   |
|                                    |        |   |      |   |        |   |   |         |   |   |   |
| Financial Liabilities:                  |        |   |      |   |        |   |   |         |   |   |   |
| Account payable and accrued liabilities | Category E  |   |      |   |        | 7,992  |   |         |   | 4,878 |   |
| Debt obligations                        | Category E  |   |      |   |        | 97     |   |         |   | 229 |   |
|                                    |        |   |      |   | $           | 8,089  |   |         | $      | 5,107 |   |

|   | (1) | Financial instrument designations are as follows: Category A=Financial assets and liabilities at fair value through profit and loss; Category B=Available for sale investments; Category C=Held to maturity investments; Category D=Loans and receivables; and Category E=Financial liabilities at amortized cost. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 26.  | COMMITMENTS AND CONTINGENCIES |
|-----------|-------------------------------|

| (in thousands)      |   |   |   |
|---------------------|--------|--------|--------|
|                |   |   |   |
| 2014                |   | $      | 369    |   |
| 2015                |   |   | 203    |   |
| 2016                |   |   | 98     |   |
| 2017                |   |   | 17     |   |
| 2018                |   |   | -      |   |
| 2019 and thereafter |   |   | -      |   |
|                |   | $      | 687    |   |

----

| 27.  | INTEREST IN OTHER ENTITIES |
|-----------|----------------------------|

|                                    | Place          |   |     |   | Denison      |   |   | Denison       |   |   |                |
|-----------------------------------------|----------------|--------|----------|--------|--------------|--------|--------|---------------|--------|--------|---------------------|
|                                    | Of             |   | Entity   |   | Voting       |   |   | Participating |   |   | Accounting          |
|                                    | Business       |   | Type (1) |   | Interest (2) |   |   | Interest (3)  |   |   | Method (4)          |
|                                    |           |   |     |   |         |   |   |          |   |   |                |
| Non-100% Owned Entities                 |           |   |     |   |         |   |   |          |   |   |                |
|                                    |           |   |     |   |         |   |   |          |   |   |                |
| Waterbury Lake Uranium Corp             | Canada         |   | JO-1     |   | 60.00        | %      |   | 60.00         | %      |   | Proportionate Share |
| Waterbury Lake Uranium LP               | Canada         |   | JO-1     |   | 60.00        | %      |   | 60.00         | %      |   | Proportionate Share |
| Pitchstone Namibia (Pty) Ltd            | Namibia        |   | SUB      |   | 73.60        | %      |   | 100.00        | %      |   | Consolidation       |
| Gurvan Saihan Joint Venture             | Mongolia       |   | SUB      |   | 85.00        | %      |   | 100.00        | %      |   | Consolidation       |
| Rockgate Capital Corp                   | Canada / Niger |   | SUB      |   | 89.72        | %      |   | 89.72         | %      |   | Consolidation       |
| Rockgate Mali SARL                      | Mali           |   | SUB      |   | 89.72        | %      |   | 89.72         | %      |   | Consolidation       |
| Delta Exploration Mali SARL             | Mali           |   | SUB      |   | 89.72        | %      |   | 89.72         | %      |   | Consolidation       |
|                                    |           |   |     |   |         |   |   |          |   |   |                |
| Non-100% Owned Contractual Arrangements |           |   |     |   |         |   |   |          |   |   |                |
|                                    |           |   |     |   |         |   |   |          |   |   |                |
| McClean Joint Venture Agreement         | Canada         |   | JO-2     |   | 22.50        | %      |   | 22.50         | %      |   | Proportionate Share |
| Midwest Joint Venture Agreement         | Canada         |   | JO-2     |   | 25.17        | %      |   | 25.17         | %      |   | Proportionate Share |
| Wheeler River                           | Canada         |   | JO-2     |   | 60.00        | %      |   | 60.00         | %      |   | Proportionate Share |
| Wolly                                   | Canada         |   | JO-2     |   | 22.50        | %      |   | 22.50         | %      |   | Proportionate Share |

|   | (1) | The Entity Type classifications are as follows: SUB=Subsidiary; JO-1=Joint Operations having joint control as defined by IFRS 11; and JO-2=Joint Operations not having joint control and beyond the scope of IFRS 11; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Voting Interest represents Denison’s percentage voting interest in the entity or contractual arrangement; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------|

|   | (3) | Participating interest represents Denison’s percentage funding contribution to the particular arrangement.  This percentage can differ from equity interest in instances where other parties to the arrangement have carried interests in the arrangement; and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | Proportionate share is where Denison accounts for its share of assets, liabilities, revenues and expenses of the arrangement in relation to its participating interest. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 28.  | SUBSEQUENT EVENTS |
|-----------|-------------------|

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