Document:

Exhibit 10.1 Asset Purchase Agreement

    
      

    

     

     

    

      ASSET
        PURCHASE AGREEMENT

      

      

      

      

      Between

      

      sxr
        Uranium One Inc., Uranium
        One Utah Inc., Uranium One Ventures

      U.S.A.
        Inc. and Uranium One Exploration U.S.A. Inc.

      

      and

      

      U.S.
        Energy Corp., Crested Corp., USECB Joint Venture (a joint venture

      between
        U.S. Energy Corp. and Crested Corp.), Plateau Resources Limited,

      Plateau
        Resources Limited, Inc. and U.S. Uranium Ltd.

      

      made
        as
        of

      

      February
        22, 2007

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

        Table
          of Contents

        
          	
                  Recitals

                	 	 	
                  1

                
	
                  I.

                	
                  Definitions

                	
                  2

                
	
                  II.

                	
                  Purchase
                    of Acquired Assets and Closing

                	
                  9

                
	 	
                  2.1

                	
                  Purchase
                    and Sale of Acquired Assets

                	
                  9

                
	 	
                  2.2

                	
                  Excluded
                    Assets

                	
                  11

                
	 	
                  2.3

                	
                  Assumption
                    of Assumed Liabilities

                	
                  11

                
	 	
                  2.4

                	
                  Retained
                    Liabilities

                	
                  11

                
	 	
                  2.5

                	
                  Purchase
                    Price

                	
                  11

                
	 	
                  2.6

                	
                  Additional
                    Consideration

                	
                  12

                
	 	
                  2.7

                	
                  Operating
                    Expenses

                	
                  12

                
	 	
                  2.8

                	
                  The
                    Closing

                	
                  13

                
	 	
                  2.9

                	
                  Resale
                    Restrictions

                	
                  16

                
	 	
                  2.10

                	
                  Allocation
                    of Purchase Price Among Assets

                	
                  17

                
	 	
                  2.11

                	
                  Allocation
                    of Purchase Price Among Sellers

                	
                  18

                
	 	
                  2.12

                	
                  Data
                    Delivery

                	
                  18

                
	 	
                  2.13

                	
                  Further
                    Assurances

                	
                  18

                
	
                  III.

                	
                  Representations
                    and Warranties of the Sellers

                	
                  188

                
	 	
                  3.1

                	
                  Incorporation;
                    Power and Authority

                	
                  18

                
	 	
                  3.2

                	
                  Valid
                    and Binding Agreement

                	
                  18

                
	 	
                  3.3

                	
                  No
                    Breach; Consents

                	
                  19

                
	 	
                  3.4

                	
                  Capitalization

                	
                  20

                
	 	
                  3.5

                	
                  Absence
                    of Certain Developments

                	
                  20

                
	 	
                  3.6

                	
                  Property

                	
                  20

                
	 	
                  3.7

                	
                  Tax
                    Matters

                	
                  21

                
	 	
                  3.8

                	
                  Material
                    Contracts

                	
                  22

                
	 	
                  3.9

                	
                  Litigation

                	
                  22

                
	 	
                  3.10

                	
                  Insurance

                	
                  23

                
	 	
                  3.11

                	
                  Compliance
                    with Laws; Governmental Authorizations

                	
                  23

                
	 	
                  3.12

                	
                  Environmental
                    Matters

                	
                  23

                
	 	
                  3.13

                	
                  Employees;
                    Employee Benefits

                	
                  25

                
	 	
                  3.14

                	
                  Affiliate
                    Transactions

                	
                  25

                
	 	
                  3.15

                	
                  Brokerage

                	
                  26

                
	 	
                  3.16

                	
                  Availability
                    of Documents

                	
                  26

                
	 	
                  3.17

                	
                  Disclosure

                	
                  26

                
	 	
                  3.18

                	
                  Investment

                	
                  26

                
	
                  IV.

                	
                  Representations
                    and Warranties of Buyer Parties

                	
                  277

                
	 	
                  4.1

                	
                  Incorporation;
                    Power and Authority

                	
                  27

                
	 	
                  4.2

                	
                  Valid
                    and Binding Agreement

                	
                  27

                
	 	
                  4.3

                	
                  No
                    Breach; Consents

                	
                  27

                
	 	
                  4.4

                	
                  Brokerage

                	
                  27

                
	 	
                  4.5

                	
                  Sophistication

                	
                  28

                

        

        
          
            
            

          

          
            ii

            
              

            

          

          
            
            

          

        

        

        
          	 	
                  4.6

                	
                  Uranium
                    One Common Shares

                	
                  28

                
	 	
                  4.7

                	
                  SEDAR
                    Filings; Financial Statements

                	
                  28

                
	
                  V.

                	
                  Agreements
                    of the Sellers

                	
                  288

                
	 	
                  5.1

                	
                  Conduct
                    of the Business

                	
                  28

                
	 	
                  5.2

                	
                  Notice
                    of Developments

                	
                  29

                
	 	
                  5.3

                	
                  Access

                	
                  29

                
	 	
                  5.4

                	
                  Conditions

                	
                  29

                
	 	
                  5.5

                	
                  No
                    Sale

                	
                  29

                
	 	
                  5.6

                	
                  Post-Closing
                    Access

                	
                  30

                
	 	
                  5.7

                	
                  Litigation
                    Support

                	
                  30

                
	 	
                  5.8

                	
                  Confidentiality

                	
                  30

                
	 	
                  5.9

                	
                  Assignment
                    of Confidentiality Agreements

                	
                  31

                
	 	
                  5.10

                	
                  Covenant
                    Not to Compete

                	
                  31

                
	 	
                  5.11

                	
                  Payment
                    of All Taxes Resulting From Sale of Assets by the Sellers

                	
                  32

                
	 	
                  5.12

                	
                  Removing
                    Excluded Assets

                	
                  32

                
	 	
                  5.13

                	
                  Title
                    Covenants

                	
                  33

                
	 	
                  5.14

                	
                  Memorandum
                    of Restriction

                	
                  33

                
	 	
                  5.15

                	
                  Nu
                    Star

                	
                  34

                
	
                  VI.

                	
                  Agreements
                    of Buyer Parties

                	
                  344

                
	 	
                  6.1

                	
                  Conditions

                	
                  34

                
	 	
                  6.2

                	
                  Listing

                	
                  34

                
	 	
                  6.3

                	
                  Use
                    of Sellers’
                    Names

                	
                  34

                
	 	
                  6.4

                	
                  Post-Closing
                    Access

                	
                  34

                
	
                  VII.

                	
                  Consents
                    and Regulatory Filings

                	
                  355

                
	 	
                  7.1

                	
                  Consents,
                    Authorizations and Regulatory Filings

                	
                  35

                
	 	
                  7.2

                	
                  Further
                    Assurances

                	
                  36

                
	 	
                  7.3

                	
                  No
                    Reorganization

                	
                  36

                
	
                  VIII.

                	
                  Conditions
                    to Closing

                	
                  366

                
	 	
                  8.1

                	
                  Conditions
                    to Buyer Parties’
                    Obligations

                	
                  36

                
	 	
                  8.2

                	
                  Conditions
                    to the Sellers’
                    Obligations

                	
                  38

                
	
                  IX.

                	
                  Termination

                	
                  399

                
	 	
                  9.1

                	
                  Termination

                	
                  39

                
	 	
                  9.2

                	
                  Effect
                    of Termination

                	
                  41

                
	
                  X.

                	
                  Indemnification

                	
                  411

                
	 	
                  10.1

                	
                  Indemnification
                    by the Sellers

                	
                  41

                
	 	
                  10.2

                	
                  Indemnification
                    by Buyer Parties

                	
                  42

                
	 	
                  10.3

                	
                  Third-Party
                    Actions Against Buyer Parties

                	
                  44

                
	 	
                  10.4

                	
                  Third-Party
                    Actions Against Sellers

                	
                  45

                
	 	
                  10.5

                	
                  Sole
                    and Exclusive Remedy

                	
                  46

                
	 	
                  10.6

                	
                  Tax
                    Adjustment

                	
                  46

                
	 	
                  10.7

                	
                  Indemnification
                    in Case of Strict Liability or Indemnitee Negligence

                	
                  46

                

        

        
          
            
            

          

          
            iii

            
              

            

          

          
            
            

          

        

        

        
          	
                  XI.

                	
                  General

                	
                  477

                
	 	
                  11.1

                	
                  Press
                    Releases and Announcements

                	
                  47

                
	 	
                  11.2

                	
                  Expenses

                	
                  47

                
	 	
                  11.3

                	
                  Amendment
                    and Waiver

                	
                  47

                
	 	
                  11.4

                	
                  Notices

                	
                  47

                
	 	
                  11.5

                	
                  Assignment

                	
                  49

                
	 	
                  11.6

                	
                  No
                    Third-Party Beneficiaries

                	
                  50

                
	 	
                  11.7

                	
                  No
                    Partnership and No Corporate Opportunity

                	
                  50

                
	 	
                  11.8

                	
                  Severability

                	
                  50

                
	 	
                  11.9

                	
                  Complete
                    Agreement

                	
                  50

                
	 	
                  11.10

                	
                  Schedules

                	
                  50

                
	 	
                  11.11

                	
                  Signatures;
                    Counterparts

                	
                  51

                
	 	
                  11.12

                	
                  Governing
                    Law

                	
                  51

                
	 	
                  11.13

                	
                  Specific
                    Performance

                	
                  51

                
	 	
                  11.14

                	
                  Jurisdiction

                	
                  51

                
	 	
                  11.15

                	
                  Waiver
                    of Jury Trial

                	
                  51

                
	 	
                  11.16

                	
                  Construction

                	
                  52

                
	 	
                  11.17

                	
                  Currency

                	
                  52

                
	 	
                  11.18

                	
                  Time
                    of Essence

                	
                  52

                
	
                   

                  Signatures

                	 	
                   

                  533

                

        

        

        Exhibit
          A - Form of Royalty Agreement

        Exhibit
          B - Forms of Bill of Sale

        Exhibit
          C - Forms of Special Warranty Deed for Fee Property

        Exhibit
          D - Forms of Quitclaim Deed for Unpatented Mining Claims

        Exhibit
          E - Forms of Quitclaim Deed for Water Rights

        Exhibit
          F - Forms of Assignment and Assumption Agreement

        Exhibit
          G - Forms of FIRPTA Certificate

        Exhibit
          H - Form of Declaration for Removal of Legend

        Exhibit
          I - Non-Compete Zone

        Exhibit
          J - Forms of Lien Documents

        Exhibit
          K- Form of Canadian Accredited Investor Certificate

        Exhibit
          L - Form of Escrow Agreement

        
          
            
            

          

          
            iv

            
              

            

          

          
            
            

          

        

      ASSET
        PURCHASE AGREEMENT

      

      This
        ASSET
        PURCHASE AGREEMENT
        (this
“Agreement”)
        between Uranium One Utah Inc.,
        a
        Delaware corporation (“Uranium
        One Utah”),
        Uranium One Ventures U.S.A. Inc.,
        a
        Delaware corporation (“Uranium
        One Ventures”),
        and
        Uranium One Exploration U.S.A. Inc.,
        a
        Delaware corporation (“Uranium
        One Exploration”)
        (each
        of Uranium One Utah, Uranium One Ventures and Uranium One Exploration, a
        “Buyer”,
        and
        collectively, “Buyers”),
        sxr
        Uranium One Inc., a Canadian corporation (“Uranium
        One”)
        (Uranium One and each Buyer, a “Buyer
        Party”,
        and
        collectively, “Buyer
        Parties”),
        U.S.
        Energy Corp., a Wyoming corporation (“USE”),
        Crested Corp., a Colorado corporation (“Crested”),
        USECB
        joint venture, a joint venture between USE and Crested commonly referred
        to as
        USE/CC (“USE/CC”),
        Plateau Resources Limited, a dissolved Utah corporation (“Old
        Plateau”),
        Plateau Resources Limited, Inc., a Utah corporation (“New
        Plateau”)
        and
        U.S. Uranium Ltd., a Wyoming corporation (“USUL”)
        (each
        of USUL, USE, Crested, USE/CC, Old Plateau and New Plateau, a “Seller”,
        and
        collectively, “Sellers”)
        is
        made as of February 22, 2007.

      

      Recitals

      

      WHEREAS,
        the
        Sellers own certain uranium assets in the United States, including the
        Shootaring Canyon uranium mill and certain exploration properties described
        in
        Section 2.1 of this Agreement (“Acquired
        Assets”).

      

      WHEREAS,
        the
        Sellers desire to sell, and Buyers desire to buy the Acquired Assets on the
        terms and subject to the conditions set forth in this Agreement.

      

      WHEREAS,
        USE,
        Crested and Uranium One previously entered into an exclusivity agreement
        dated
        as of July 10, 2006 and extended on January 2, 2007, a term sheet dated June
        22,
        2006, and a confidentiality agreement dated July 10, 2006, each of which
        is
        superseded and terminated by this Agreement.

      

      WHEREAS,
        USE,
        Crested, USUL and each holder of USUL securities have entered into an agreement
        and release (the “USUL
        Agreement and Release”)
        in the
        form delivered to Uranium One.

      

      WHEREAS,
        Uranium
        Power Corp., a British Columbia corporation (“UPC”),
        has
        entered into an amendment to agreements effective January 31, 2007 with USE,
        Crested and USE/CC (the “UPC
        Amendment”)
        and a
        consent, waiver and agreement effective January 31, 2007 in favor of the
        Sellers
        and the Buyer Parties (the “UPC
        Waiver”),
        whereby UPC has approved the transactions contemplated by this Agreement
        and
        agreed to certain matters relating to the existing agreements among UPC,
        USE,
        Crested and USE/CC and the transactions contemplated by this
        Agreement.

      

      NOW,
        THEREFORE,
        in
        consideration of the mutual representations, warranties and agreements contained
        in this Agreement, and for other good and valuable consideration, the receipt
        and sufficiency of which are hereby acknowledged, the parties agree as
        follows:

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

      I.
        Definitions

      

      “Acquired
        Assets”
has
        the
        meaning set forth in Section 2.1.

      

      “Acquired
        Contracts”
has
        the
        meaning set forth in Section 2.1(d).

      

      “Additional
        Consideration”
has
        the
        meaning set forth in Section 2.6(a).

      

      “Agreement”
has
        the
        meaning set forth in the first paragraph of this Agreement.

      

      “Affiliate”
has
        the
        meaning set forth in Rule 12b-2 under the Exchange Act.

      

      “Ancillary
        Agreements”
means
        the USUL Agreement and Release, the UPC Amendment, the UPC Waiver, and the
        Royalty Agreement.

      

      “Applicable
        Percentage”
has
        the
        meaning set forth in Section 11.5(b).

      

      “Assignment
        and Assumption Agreement”
has
        the
        meaning set forth in Section 2.8(b)(i)(J).

      

      “Assumed
        Liabilities”
has
        the
        meaning set forth in Section 2.3.

      

      “Basket
        Amount”
has
        the
        meaning set forth in Section 10.1(b).

      

      “Business
        Day”
means
        any day other than a Saturday, a Sunday or a day on which the banks are
        generally closed for business in either Denver, Colorado, USA or Toronto,
        Canada.

      

      “Buyer”
and
        “Buyers”
have
        the meaning set forth in the first paragraph of this Agreement.

      

      “Buyer
        Claim”
has
        the
        meaning set forth in Section 10.1(d).

      

      “Buyer
        Indemnified Parties”
has
        the
        meaning set forth in Section 10.3(a).

      

      “Buyer
        Losses”
has
        the
        meaning set forth in Section 10.1(a).

      

      “Buyer
        Party”
and
        “Buyer
        Parties”
have
        the meaning set forth in the first paragraph of this Agreement.

      

      “Buyer
        Third-Party Action”
has
        the
        meaning set forth in Section 10.3(a).

      

      “Canadian
        GAAP”
means
        generally accepted accounting principles in Canada, as in effect from time to
        time.

      

      “CFIUS”
means
        the Committee on Foreign Investment in the United States.

      

      “Closing”
has
        the
        meaning set forth in Section 2.8.

      

      “Closing
        Date”
has
        the
        meaning set forth in Section 2.8.

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      “Closing
        Update”
has
        the
        meaning set forth in Section 2.8(b)(i)(B).

      

      “Code”
means
        the Internal Revenue Code of 1986, as amended.

      

      “Confidential
        Information”
has
        the
        meaning set forth in Section 5.8(a).

      

      “Confidentiality
        Agreement”
means
        the confidentiality agreement dated as of July 10, 2006 by and between USE,
        Crested and Uranium One.

      

      “Consent”
means
        any authorization, consent, approval, filing, waiver, exemption or other
        action
        by or notice to any Person.

      

      “Contract”
means
        a
        contract, agreement, lease, commitment or binding understanding,

      whether
        oral or written. “Crested”
has
        the
        meaning set forth in the first paragraph of this Agreement.

      

      “Data”
means
        all written materials, data and records of any kind, whether in paper,
        electronic or other form, including, but not limited to, (i) all records,
        reports, opinions, maps and summaries relating or representing title to the
        Real
        Property, (ii) geological and hydrological data, estimates of reserves and
        resources and Environmental Reports, (iii) drilling data, (iv) production
        reports and records, (v) equipment logs, (vi) service, warranty and claim
        records, (vii) records relating to the Inventories, (viii) maintenance records
        and other documents relating to the Real Property and the Tangible Personal
        Property, (ix) purchase orders and invoices, (x) material safety data sheets,
        (xi) operating guides and manuals, (xii) correspondence, (xiii) the Records,
        (xiv) plans and specifications, plats, surveys, drawings, maps, blueprints
        and
        photographs, (xv) Contracts and records related to Contracts, and (xvi)
        financial and transaction data within the 

      possession
        of any Seller.

      

      “Disclosure
        Schedule”
means
        the schedule delivered by the Sellers to the Buyers two

      Business
        Days prior to the date of this Agreement.

      

      “Encumbrance”
means
        any charge, claim, community property interest, easement, covenant, condition,
        equitable interest, lien, option, pledge, security interest, right of first
        refusal or restriction of any kind, including any restriction on use, voting,
        transfer, receipt of income or

      exercise
        of any other attribute of ownership.

      

      “Environmental
        Costs”
has
        the
        meaning set forth in Section 3.12(a)(i).

      

      “Environmental
        Law”
has
        the
        meaning set forth in Section 3.12(a)(ii).

      

      “Environmental
        Reports”
has
        the
        meaning set forth in Section 3.12(i).

      

      “ERISA”
has
        the
        meaning set forth in Section 3.13(b).

      

      “Escrow
        Funds”
has
        the
        meaning set forth in Section 5.13(b).

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      “Exchange
        Act”
means
        the Securities Exchange Act of 1934, as amended, and the rules

      and
        regulations thereunder.

      

      “Excluded
        Assets”
has
        the
        meaning set forth in Section 2.1(l).

      

      “Exclusivity
        Agreement”
means
        the exclusivity agreement dated as of July 10, 2006 and extended on January
        2,
        2007 by and between USE, Crested and Uranium One.

      

      “Exon-Florio
        Filing”
has
        the
        meaning set forth in Section 7.1(b).

      

      “Fee
        Property”
has
        the
        meaning set forth in Section 3.6(a).

      

      “Governmental
        Authorization”
means
        any approval, consent, license, permit, waiver, registration or other
        authorization issued, granted, given, made available or otherwise required
        by
        any Governmental Entity or pursuant to Law.

      

      “Governmental
        Entity”
means
        any federal, state, local, foreign, international or multinational entity
        or
        authority exercising executive, legislative, judicial, regulatory,
        administrative or taxing functions of or pertaining to government.

      

      “Governmental
        Order”
means
        any judgment, injunction, writ, order, ruling, award or decree by any
        Governmental Entity or arbitrator.

      

      “Green
        River Letter Agreement”
means
        the letter agreement among UPC, USE, Crested and USE/CC dated May 9, 2006
        relating to Green River North and Green River South.

      

      “Green
        River North”
means
        the 10 unpatented mining claims described in Exhibit B to the Green River
        Letter
        Agreement.

      

      “Green
        River South”
means
        the unpatented mining claims and state mineral leases described in Exhibit
        A to
        the Sahara Agreement.

      

      “Hazardous
        Materials”
has
        the
        meaning set forth in Section 3.12(a)(iii).

      

      “HSR
        Act”
means
        the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and
        the
        rules and regulations thereunder.

      

      “Indemnification
        Limit”
means
        Fifty Million Dollars ($50,000,000).

      

      “Insider”
means
        (i) a shareholder, officer, director or employee of any Seller, or (ii) any
        entity in which any of the Persons described in clause (i) owns any beneficial
        interest (other than less than five percent of the outstanding shares of
        capital
        stock of any corporation whose stock is listed on a national securities
        exchange).

      

      “Inventories”
has
        the
        meaning set forth in Section 2.1(c)

      

      “IRS”
means
        the United States Internal Revenue Service.

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      “Knowledge
        of the Sellers” means
        the
        actual knowledge of any of Keith G. Larsen, Mark J. Larsen, Harold F. Herron,
        R.
        Scott Lorimer, Steven R. Youngbauer, Fredrick R. Craft or James D. Rasmussen,
        and any fact or circumstance of which any one of them has received
        notice.

      

      “Law”
means
        any constitution, law, ordinance, principle of common law, regulation, statute
        or treaty of any Governmental Entity.

      

      “Liability”
means
        any liability or obligation whether accrued, absolute, contingent, unliquidated
        or otherwise, whether due or to become due, and regardless of when
        asserted.

      

      “List”
has
        the
        meaning set forth in Section 3.12(a)(iv).

      

      “Litigation”
means
        any claim, action, arbitration, mediation, hearing, governmental investigation,
        proceeding, litigation or suit (whether civil, criminal or administrative)
        commenced, brought, conducted or heard by or before, or otherwise involving,
        any
        Governmental Entity or any arbitrator or mediator.

      

      “Loss”
means
        any Litigation, Governmental Order, complaint, claim, demand, damage,
        deficiency, penalty, fine, cost, amount paid in settlement, liability,
        obligation, Tax, Encumbrance, loss, expense or fee, including court costs
        and
        attorneys’ fees and expenses.

      

      “Material
        Adverse Effect”
means
        any change, effect, event or condition, individually or in the aggregate,
        that
        has had, or, with the passage of time, could have, a material adverse effect
        on
        the assets, properties, condition (financial or otherwise), results of
        operations, supplier or employee relationships of the Sellers relating to
        the
        Acquired Assets.

      

      “Material
        Contracts”
has
        the
        meaning set forth in Section 3.8(a).

      

      “New
        Permits”
has
        the
        meaning set forth in Section 7.1(e).

      

      “New
        Plateau”
has
        the
        meaning set forth in the first paragraph of this Agreement.

      

      “Non-Compete
        Zone”
means
        (i) the Real Property, (ii) the Breccia Pipes “fly zone”, as further described
        on Exhibit
        I,
        and
        (iii) an area of approximately five miles surrounding the outside boundary
        of
        the Real Property and the Breccia Pipes “fly zone”, as further described on
Exhibit
        I.

      

      “Non-Conflicting
        Data”
has
        the
        meaning set forth in Section 5.8(d).

      

      “Nu
        Star Agreements”
has
        the
        meaning set forth in Section 5.15.

      

      “Nu
        Star Letter Agreement”
has
        the
        meaning set forth in Section 5.15.

      

      “Old
        Plateau”
has
        the
        meaning set forth in the first paragraph of this Agreement.

      

      “Ordinary
        Course of Business”
means
        the ordinary course of business of the Sellers relating to the Acquired Assets
        consistent with past custom and practice (including with respect to quantity
        and
        frequency).

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      “Payment
        Guarantee”
has
        the
        meaning set forth in Section 11.5(a).

      

      “Permitted
        Encumbrances”
means
        (i) Encumbrances for Taxes and other governmental charges and assessments
        (except assessments for public improvements levied, pending or deferred against
        the Fee Property or the Patented Claims) that are not yet due and payable
        or
        which are being contested in good faith by appropriate proceedings (provided
        required payments have been made in connection with any such contest), (ii)
        Encumbrances of carriers, warehousemen, mechanics’ and materialmen and other
        like Encumbrances arising in the Ordinary Course of Business (provided lien
        statements have not been filed as of the Closing Date), (iii) survey exceptions,
        easements, rights of way and restrictions, and zoning ordinances affecting
        the
        Real Property, (iv) statutory Encumbrances in favor of lessors arising in
        connection with any property leased to the Sellers, (v) reservations in federal
        patents, (vi) liens of pledges or deposits under workers’ compensation laws or
        similar legislation, unemployment insurance or other types of social security,
        (vii) rights reserved to or vested in any Governmental Entity to control
        or
        regulate any interest in the Real Property as imposed by applicable Law,
        (viii)
        Encumbrances of record as of August 5, 2006, excluding such Encumbrances
        created
        by, through or under the Sellers; (ix) Encumbrances listed on Schedule
        1.1(a)
        which
        are permitted to survive the Closing; and (x) royalties of record as of August
        5, 2006.

      

      “Person”
means
        any individual, corporation (including any non-profit corporation), general
        or
        limited partnership, limited liability company, joint venture, estate, trust,
        association, organization, labor union, Governmental Entity or other
        entity.

      

      “Pre-Closing
        Consent”
has
        the
        meaning set forth in Section 7.1(a).

      

      “Process
        Agent”
has
        the
        meaning set forth in Section 11.14.

      

      “Property
        Acquisition Expenses”
has
        the
        meaning set forth in Section 2.7(b).

      

      “Purchase
        Price”
has
        the
        meaning set forth in Section 2.5(a).

      

      “Purchase
        Price Shares”
has
        the
        meaning set forth in Section 2.5(a).

      

      “Real
        Property”
has
        the
        meaning set forth in Section 2.1(a).

      

      “Records”
means
        all of the Sellers’ records relating to the Shootaring Canyon Mill and Utah
        Department of Environmental Quality, Division of Radiation Control Radioactive
        Material License UT 0900480.

      

      “Regulatory
        Action”
has
        the
        meaning set forth in Section 3.12(a)(v).

      

      “Reimbursable
        Expenses”
has
        the
        meaning set forth in Section 2.7(a).

      

      “Release”
has
        the
        meaning set forth in Section 3.12(a)(vi).

      

      “Remedies
        Exception,”
when
        used with respect to the enforceability of any Contract or obligation or
        with
        respect to any Person, means except to the extent enforceability may be

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      limited
        by applicable bankruptcy, insolvency, reorganization, moratorium or other
        laws
        affecting the enforcement of creditors’ rights generally and by general
        equitable principles. 

      

      “Required
        Consents”
has
        the
        meaning set forth in Section 7.1.

      

      “Retained
        Liabilities”
has
        the
        meaning set forth in Section 2.4.

      

      “Return”
means
        any return, declaration, report, estimate, information return or statement
        pertaining to any Taxes.

      

      “Royalty
        Agreement”
means
        the royalty agreement to be entered into between Uranium One Utah and USE
        as of
        the Closing Date in the form of Exhibit
        A.

      

      “Sahara
        Agreement”
means
        the amended and restated option and joint venture agreement - Sahara mine
        property, Emery County, Utah, dated April 15, 2006 between UPC and Uranium
        Group
        LLC.

      

      “Scheduled
        Bonds”
has
        the
        meaning set forth in Section 7.1(c).

      

      “SEC”
means
        the United States Securities and Exchange Commission.

      

      “Securities
        Act”
means
        the Securities Act of 1933, as amended, and the rules or regulations
        thereunder.

      

      “Seller”
and
        “Sellers”
have
        the meaning set forth in the first paragraph of this Agreement.

      

      “Seller
        Basket Amount”
has
        the
        meaning set forth in Section 10.2(b).

      

      “Seller
        Indemnified Parties”
has
        the
        meaning set forth in Section 10.4(a).

      

      “Seller
        Losses”
has
        the
        meaning set forth in Section 10.2(a).

      

      “Seller
        Required Consents”
has
        the
        meaning set forth in Section 3.3(a).

      

      “Seller
        Third-Party Action”
has
        the
        meaning set forth in Section 10.4(a).

      

      “Shootaring
        Canyon Mill”
means
        the Shootaring Canyon uranium mill and associated facilities located in Garfield
        County, Utah, on State Highway 276 approximately 13 miles north of Bullfrog
        Basin Marina and 48 miles south of Hanksville, Utah.

      

      “Software”
means
        the existing computer programs or data in computerized form, whether in object
        code, source code or other form currently in use at the Shootaring Canyon
        Mill.

      

      “Subsidiary”
means
        any Person in which any ownership interest is owned, directly or indirectly,
        by
        another Person.

      

      “Tangible
        Personal Property”
has
        the
        meaning set forth in Section 2.1(b).

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

      “Tax
        Affiliate”
means
        the Sellers and any other Person that is or was a member of an affiliated,
        combined or unitary group of which any Seller is or was a member.

      

      “Taxes”
means
        all taxes, charges, fees, levies or other assessments, including all net
        income,
        gross income, gross receipts, sales, use, ad valorem, transfer, franchise,
        profits, license, withholding, payroll, employment, social security,
        unemployment, excise, estimated, severance, stamp, occupation, property or
        other
        taxes, customs duties, fees, assessments or charges of any kind whatsoever,
        including all interest and penalties thereon, and additions to tax or additional
        amounts imposed by any Governmental Entity upon the Sellers or any Tax
        Affiliate.

      

      “Term
        Sheet”
means
        the term sheet dated as of June 22, 2006 by and between USE, Crested and
        Uranium
        One.

      

      “Third-Party
        Environmental Claim”
has
        the
        meaning set forth in Section 3.12(a)(vii).

      

      “Title
        Curative”
has
        the
        meaning set forth in Section 5.13(a).

      

      “Title
        Curative Costs”
has
        the
        meaning set forth in Section 5.13(a).

      

      “Title
        Defects”
has
        the
        meaning set forth in Section 5.13(a).

      

      “Title
        Escrow”
has
        the
        meaning set forth in Section 5.13(b).

      

      “Title
        Review Summary”
has
        the
        meaning set forth in Section 5.13(a).

      

      “Transferee”
has
        the
        meaning set forth in Section 11.5(b).

      

      “Treasury
        Regulations”
means
        the rules and regulations under the Code.

      

      “Unpatented
        Mining Claims”
has
        the
        meaning set forth in Section 3.6(a).

      

      “UPC”
has
        the
        meaning set forth in the recitals.

      

      “UPC
        Amendment”
has
        the
        meaning set forth in the Recitals.

      

      “UPC
        Existing Agreement”
means
        any agreement entered into between UPC and any of the Sellers prior to the
        date
        of this Agreement and any agreement in which UPC has granted an interest
        to any
        Seller, or any Seller has granted an interest to UPC, including, without
        limitation, (i) the letter agreement dated October 29, 2004 among UPC (formerly
        known as Bell Coast Capital Corp.), USE and USE/CC; (ii) the revised letter
        agreement dated November 24, 2004 among UPC, USE and USE/CC; (iii) the amendment
        to the letter agreement dated December 3, 2004 among UPC, USE and USE/CC;
        (iv)
        the purchase and sales agreement dated December 8, 2004 among UPC, USE, Crested
        and USE/CC; (v) the mining venture agreement dated April 11, 2005 among UPC,
        USE, Crested and USE/CC; (vi) the amended letter agreement dated August 22,
        2005
        among UPC, USE, Crested and USE/CC; (vii) the Green River Letter Agreement;
        and
        (viii) the Sahara Agreement; and (ix) the UPC Amendment.

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      “UPC-Related
        Payment”
means
        a
        cash payment from the Buyers to the Sellers at the Closing relating to the
        assignment to Uranium One Ventures of the Sellers’ rights to receive certain
        cash and common share payments scheduled to be made by UPC to the Sellers
        after
        the Closing Date pursuant to certain of the UPC Existing Agreements. The
        amount
        of the UPC-Related Payment shall be (i) $4,100,000, plus (ii) the amount
        in U.S.
        dollars calculated by multiplying (A) 1,500,000, by (B) the volume weighted
        average closing price of the UPC common shares on the TSX Venture Exchange
        during the ten trading days ending five calendar days prior to the Closing
        Date,
        converted into U.S. dollars using the noon buying rate for Canadian dollars
        in
        New York certified by the Federal Reserve Bank of New York for customs purposes
        on the tenth of such ten trading days, less (iii) a discount to the amounts
        specified in subsections (i) and (ii) based on a 5.25% annual discount rate
        schedule that has been separately agreed between the Sellers and the Buyer
        Parties.

      

      “UPC
        Waiver”
has
        the
        meaning set forth in the Recitals.

      

      “Uranium
        One”
has
        the
        meaning set forth in the first paragraph of this Agreement.

      

      “Uranium
        One Common Shares”
means
        common shares in the capital of Uranium One.

      

      “Uranium
        One Exploration” has
        the
        meaning set forth in the first paragraph of this Agreement.

      

      “Uranium
        One SEDAR Reports”
has
        the
        meaning set forth in Section 4.7(a).

      

      “Uranium
        One Utah” has
        the
        meaning set forth in the first paragraph of this Agreement.

      

      “Uranium
        One Ventures” has
        the
        meaning set forth in the first paragraph of this Agreement.

      

      “USE”
has
        the
        meaning set forth in the first paragraph of this Agreement.

      

      “USE/CC”
has
        the
        meaning set forth in the first paragraph of this Agreement.

      

      “U.S.
        GAAP”
means
        United States generally accepted accounting principles, as in effect from
        time
        to time.

      

      “USUL”
has
        the
        meaning set forth in the first paragraph of this Agreement.

      

      “USUL
        Agreement and Release”
has
        the
        meaning set forth in the Recitals.

      

      “Water
        Rights”
has
        the
        meaning set forth in Section 3.6(a).

      

      II.
        Purchase
        of Acquired Assets and Closing

      

      2.1 Purchase
        and Sale of Acquired Assets.
        At the
        Closing and on the terms and subject to the conditions set forth in this
        Agreement, each Seller agrees to sell to each Buyer, and each Buyer agree
        to buy
        from such Seller, as set forth on Schedule
        2.1, free
        and
        clear of all

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

      Encumbrances
        other than Permitted Encumbrances, all right, title and interest in and related
        to the following assets (the “Acquired
        Assets”):

      

      (a) the
        Fee
        Property, Unpatented Mining Claims and Water Rights listed in Schedule
        2.1(a)(i),
        and all
        improvements and fixtures thereon and all rights and easements appurtenant
        thereto, including, without limitation, those improvements, fixtures, rights
        and
        easements set forth on Schedule
        2.1(a)(ii)
        (collectively, the “Real
        Property”);

      

      (b) the
        machinery and equipment listed in Schedule
        2.1(b), all
        items
        of tangible personal property located at the Shootaring Canyon Mill except
        for
        those excluded items listed in Schedule
        2.2,
        and any
        express or implied warranty by the manufacturers, sellers or lessors of any
        item
        or component part thereof, rights of return, rebate rights, over-payment
        recovery rights and any other rights of the Sellers relating to these items
        (the
“Tangible
        Personal Property”);

      

      (c) all
        inventories associated with the Acquired Assets, including all finished goods,
        work in process, raw materials, ingredients, spare parts, packaging and all
        other materials and supplies to be used, consumed, sold, resold or distributed
        by the Sellers, together with any express or implied warranty by the
        manufacturers or sellers of any item or component part thereof, rights of
        return, rebate rights, over-payment recovery rights and the Sellers’ rights
        related to any of the foregoing (the “Inventories”);

      

      (d) all
        Material Contracts listed in Schedule
        3.8
        except
        those Material Contracts or portions of Material Contracts that Schedule
        3.8
        identifies as “Excluded Contracts” (the “Acquired
        Contracts”);

      

      (e) subject
        to the procedures set forth in Article VII related to Required Consents,
        all
        Governmental Authorizations related to the Acquired Assets held by the Sellers,
        including the Governmental Authorizations listed on Schedule
        3.11(b),
        and all
        pending applications for or renewals of Governmental Authorizations related
        to
        the Acquired Assets;

      

      (f) all
        Software;

      

      (g) all
        insurance benefits related to the Acquired Assets or the Assumed Liabilities,
        including rights and proceeds, arising from or relating to the Acquired Assets
        or the Assumed Liabilities with respect to events and occurrences prior to
        the
        Closing Date;

      

      (h) all
        of
        the Sellers’ claims against third parties related to the Acquired Assets or the
        Assumed Liabilities, known or unknown, contingent or noncontingent;

      

      (i) all
        of
        the Sellers’ accounts receivable from UPC;

      

      (j) all
        Records;

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

      (k) all
        Data
        related to the Acquired Assets specified in Section 2.1(a) through Section
        2.1(i); and

      

      (l) all
        Data
        related to the Non-Compete Zone.

      

      2.2 Excluded
        Assets.
        Notwithstanding anything to the contrary contained in Section 2.1 or elsewhere
        in this Agreement, all assets that are not Acquired Assets shall not be
        conveyed, assigned, or transferred from any Seller to any Buyer (the
“Excluded
        Assets”).
        Certain Excluded Assets located on or near the Acquired Assets are set forth
        on
Schedule
        2.2.

      

      2.3 Assumption
        of Assumed Liabilities.
        At the
        Closing and on the terms and subject to the conditions set forth in this
        Agreement, each Buyer agrees to assume, severally and not jointly, as set
        forth
        on Schedule
        2.3,
        only
        the following Liabilities of the Sellers (the “Assumed
        Liabilities”):

      

      (a) All
        Liabilities arising or to be performed after the Closing under (i) all Acquired
        Contracts as in effect on the date of this Agreement, and (ii) all Acquired
        Contracts described in (i) to the extent the same are amended after the date
        of
        this Agreement in accordance with this Agreement, in each case other than
        any
        Liability arising out of or relating to a breach that occurred prior to the
        Closing;

      

      (b) All
        Liabilities arising or to be performed after the Closing related to any
        Permitted Encumbrance; and

      

      (c) All
        Liabilities related to the Acquired Assets that accrue or are incurred on
        or
        after the Closing.

      

      2.4 Retained
        Liabilities.
        The
        parties specifically acknowledge that Buyers are not agreeing to assume any
        Liability of the Sellers, whether related to the Acquired Assets or otherwise,
        other than the Assumed Liabilities and that nothing in this Agreement, including
        this Section 2.4, will be construed as an agreement otherwise. All Liabilities
        of the Sellers other than the Assumed Liabilities will be retained by the
        Sellers and remain the sole responsibility of the Sellers following the Closing
        (the “Retained
        Liabilities”).

      

      2.5 Purchase
        Price.

      

      (a) The
        aggregate consideration for the Acquired Assets (the “Purchase
        Price”)
        is (i)
        $750,000 in cash, which was paid in advance on July 13, 2006, plus (ii)
        6,607,605 Uranium One Common Shares (the “Purchase
        Price Shares”)
        to be
        delivered at Closing, plus (iii) the UPC-Related Payment, plus (iv) the
        Reimbursable Expenses, plus (v) the Property Acquisition Expenses, plus (vi)
        the
        Additional Consideration, plus (vii) the assumption by Buyers of the Assumed
        Liabilities pursuant to the Assignment and Assumption Agreement. The number
        of
        Purchase Price Shares is subject to equitable adjustment in the event that,
        prior to the Closing Date, there is any share split, subdivision, combination,
        share dividend, extraordinary dividend or reorganization involving the Uranium
        One Common Shares.

      

      (b) Except
        as
        provided in this Section 2.5(b), all property and ad valorem Taxes, leasehold
        rentals and other customarily proratable items relating to the Acquired Assets
        payable 

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

      prior
        to
        or subsequent to the Closing Date and relating to a period of time both prior
        to
        and subsequent to the Closing Date will be prorated as of the Closing between
        Buyers and the Sellers, and each party will pay their prorated portion at
        the
        Closing. If the actual amount of any such item is not known as of the Closing
        Date, such proration will be based on the previous year’s assessment of such
        item and the parties will adjust such proration and pay any underpayment
        or
        reimburse for any overpayment within 30 days after the actual amount becomes
        known. The Sellers shall pay, on or before the Closing Date, all assessments
        for
        public improvements levied, pending or deferred against the Real Property
        as of
        the Closing Date.

      

      2.6 Additional
        Consideration.
        

      

      (a) Upon
        the
        occurrence of the events described in this Section 2.6, Uranium One Utah
        will
        make the following additional payments (collectively, “Additional
        Consideration”):

      

      (i) $20
        million in cash upon Commercial Production from the Shootaring Canyon Mill;
        “Commercial
        Production”
shall
        occur when the Shootaring Canyon Mill has been operating at 60% or more of
        its
        design capacity of 750 short tons per day for sixty consecutive days;
        and

      

      (ii) $7.5
        million in cash on the first delivery after Commercial Production of mineralized
        material to the Shootaring Canyon Mill from any of the Real Property (excluding
        the existing ore stockpiles on the Real Property); and

      

      (iii) a
        royalty
        pursuant to the terms of the Royalty Agreement.

      

      (b) All
        payments of the Additional Consideration shall be made to USE, acting as
        the
        agent for the Sellers, in cash, by check or by wire transfer to the account
        most
        recently designated by USE for such purpose.

      

      (c) Sellers
        acknowledge that, as Buyers are under no obligation to use the Acquired Assets,
        there can be no assurance that any Additional Consideration will be
        received.

      

      2.7 Operating
        Expenses.
        

      

      (a) At
        the
        Closing, Uranium One Utah will
        pay
        the Sellers (i) $810,371.23, which represents Sellers’ expenditures relating to
        the Acquired Assets that were incurred by Sellers between July 10, 2006 and
        the
        date of this Agreement and that were approved by the Buyers, (ii) $441,049.49,
        which represents that portion of the Sellers’ expenditures relating to Green
        River South that were incurred by Sellers between July 10, 2006 and the date
        of
        this Agreement and that were approved by the Buyers, and (iii) the out-of-pocket
        third party expenditures of the Sellers with respect to the Acquired Assets
        between the date of this Agreement and the Closing Date, but only to the
        extent
        that such expenditures are approved by the Buyers in writing and actually
        incurred by the Sellers prior to the Closing Date (collectively, the
“Reimbursable
        Expenses”).
         The
        Sellers will keep the Buyers reasonably informed of all expenditures incurred
        by
        the Sellers with respect to the Acquired Assets prior to the Closing, and
        will
        provide the Buyers with a final accounting of all Reimbursable Expenses at
        least
        three Business Days prior to the Closing Date.

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

      (b) The
        Sellers certify that since July 10, 2006, they have acquired each of the
        properties set forth on Schedule
        2.7(b)
        at a
        cost to the Sellers equal to the amounts specified on Schedule
        2.7(b).
        At the
        Closing, pursuant to paragraph 1(c) of the Exclusivity Agreement, the Buyer
        identified on Schedule
        2.1 as
        the
        purchaser of such property will, jointly and not severally, pay the applicable
        Seller an amount equal to 105% of such third party payments (the “Property
        Acquisition Expenses”).
        The
        Sellers agree that the properties set forth on Schedule
        2.7(b)
        are the
        only properties that the Sellers identified to Buyer Parties as potential
        acquisition targets pursuant to paragraph 1(c) of the Exclusivity Agreement.
        

      

      (c) If
        Sellers propose to acquire any uranium-related properties between the date
        of
        this Agreement and the date of Closing, Sellers shall first provide Buyers
        with
        a written description of the property proposed to be acquired and the complete
        terms of the acquisition, including the cost of the acquisition to the Sellers.
        If Buyers approve such acquisition in writing, the Sellers shall complete
        such
        acquisition on the terms disclosed to the Buyers and promptly notify Buyers
        of
        the completion of such acquisition. All properties acquired by the Sellers
        with
        the Buyers’ consent pursuant to this Section 2.7(c) shall be deemed to be
        Acquired Assets, in the same category or categories of Acquired Assets as
        would
        have applied to such assets had they been owned by the Sellers on the date
        of
        this Agreement, and all representations, warranties, covenants and agreements
        in
        this Agreement shall apply to and in respect of such assets to the same extent
        as they would have applied to and in respect of such assets had they been
        owned
        by the Sellers on the date of this Agreement. At the Closing, the Buyer or
        Buyers purchasing such Acquired Assets (as determined in the Buyers’ sole
        discretion) shall pay Sellers, as part of the Property Acquisition Expenses,
        an
        amount equal to 105% of the acquisition cost approved by the Buyers and actually
        incurred by the Sellers. Sellers shall not acquire any uranium-related
        properties between the date of this Agreement and the date of Closing, except
        in
        compliance with the procedures described in this Section 2.7(c). In addition,
        notwithstanding the foregoing, the Sellers shall not acquire any uranium-related
        properties within the five business day period immediately prior to the Closing
        Date, unless Buyers have specifically waived this provision. The Closing
        Update
        shall include all assets purchased by the Sellers pursuant to this Section
        2.7(c).

      

      (d) Any
        payment of Reimbursable Expenses or Property Acquisition Expenses under this
        Section 2.7 will be, for Tax purposes, to the extent permitted by Law, an
        adjustment to the Purchase Price and part of the consideration paid for the
        Acquired Assets and subject to the allocation agreed upon under Section 2.10.
        All payments of the Reimbursable Expenses and Property Acquisition Expenses
        will
        be made to USE, acting as the agent for the Sellers, in cash, by check or
        by
        wire transfer to the account designated by USE for such purpose. If the Closing
        does not occur for any reason, the Buyer Parties shall have no liability
        to
        provide the Sellers with any reimbursement on account of the Reimbursable
        Expenses or the Property Acquisition Expenses, even if the Buyer Parties
        shall
        have approved, and the Sellers shall have incurred, the same. 

      

      2.8 The
        Closing.

      

      (a) The
        closing of the transactions contemplated by this Agreement (the “Closing”)
        will
        take place at the offices of Dorsey & Whitney LLP at Denver, Colorado at
        9:00 a.m. on the later of April 30, 2007 or as soon thereafter as reasonably
        possible following satisfaction of the 

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

      conditions
        set forth in Article VIII (the “Closing
        Date”)
        or at
        such other place and on such other date as may be mutually agreed by the
        Buyers
        and the Sellers, in which case Closing Date means the date so agreed. The
        Closing will be effective as of the close of business on the Closing
        Date.

      

      (b) Subject
        to the conditions set forth in this Agreement, on the Closing Date:

      

      (i) the
        Sellers will deliver to the Buyers:

      

      (A) a
        certificate of an appropriate officer of each Seller dated the Closing Date
        stating that the conditions set forth in Section 8.1 have been
        satisfied;

      

      (B) an
        updated version of the Disclosure Schedule (the “Closing
        Update”),
        prepared as though this Agreement has been dated as of the Closing Date,
        a good
        faith draft of which will have been submitted to Buyers no later than five
        Business Days prior to the Closing Date;

      

      (C) for
        each
        Seller, the text of the resolutions adopted by the board of directors of
        the
        Seller (or the management committee in the case of USE/CC) authorizing the
        execution, delivery and performance of this Agreement, certified by an
        appropriate officer of the Seller;

      

      (D) for
        each
        of Old Plateau and New Plateau, the text of the resolutions adopted by USE,
        as
        sole shareholder, approving the transactions contemplated by this Agreement,
        certified by an appropriate officer of such Seller;

      

      (E) the
        text
        of the resolution adopted by USE and Crested, as the joint venture partners
        and
        100% interest holders, approving the transactions contemplated by this
        Agreement, certified by an appropriate officer of USE/CC;

      

      (F) bills
        of
        sale for the Acquired Assets that are Tangible Personal Property in the form
        of
Exhibit
        B,
        duly
        executed by each Seller;

      

      (G) special
        warranty deeds for all of the Fee Property in the form of Exhibit
        C,
        duly
        executed by each Seller;

      

      (H) quitclaim
        deeds for all of the Unpatented Mining Claims in the form of Exhibit
        D
        duly
        executed by each Seller;

      

      (I) quitclaims
        for all of the Water Rights in the form of Exhibit
        E
        duly
        executed by each Seller; 

      

      (J) assignments
        of Acquired Assets that are intangible rights and property (including Acquired
        Contracts and, to the extent assignable, Governmental Authorizations) in
        the
        form of Exhibit
        F,
        duly
        executed by each Seller, which assignments shall also contain the Buyers’
assumption of their respective Assumed Liabilities pursuant to Schedule
        2.3
        (the
“Assignment
        and Assumption
        Agreement”);

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

      (K) assignments
        of agreements, instruments, certificates and other documents necessary or
        appropriate, in the reasonable opinion of Buyer Parties’ counsel, to assign all
        of the Sellers’ rights and interests in and to the Software;

      

      (L) a
        ratification of mining lease and a ratification of surface owner’s agreement,
        duly executed by Ellen Fox and Jennifer Jamerman McIntosh, in the forms approved
        to Buyers;

      

      (M) appropriate
        instruments of transfer for Acquired Assets subject to certificate of title,
        duly executed by each Seller; 

      

      (N) the
        Royalty Agreement, duly executed by USE;

      

      (O) any
        other
        instruments of transfer reasonably requested by Buyers, duly executed by
        the
        Sellers, including, without limitation, counterpart forms of transfer and
        assignment required by Governmental Entities;

      

      (P) duly
        executed copies of all agreements, instruments, certificates and other documents
        necessary or appropriate to release any and all Encumbrances against the
        Acquired Assets, other than Permitted Encumbrances; and

      

      (Q) a
        FIRPTA
        certificate in the form of Exhibit
        G,
        duly
        executed by each Seller, for purposes of satisfying Buyers’ obligations under
        Treasury Regulations Section 1.1445-2.

      

      All
        actions to be taken in connection with consummation of the transactions
        contemplated by this Agreement and all certificates, opinions, instruments
        and
        other documents required to effect the transactions contemplated by this
        Agreement will be in form and substance reasonably satisfactory to Buyers
        and
        Buyers’ counsel.

      

      (ii) the
        Buyers will deliver to the Sellers:

      

      (A) the
        Purchase Price Shares registered in the name of USE, acting as agent for
        the
        Sellers;

      

      (B) payment
        of the UPC-Related Payment, the Reimbursable Expenses and the Property
        Acquisition Expenses to USE, acting as agent for the Sellers, by check or
        wire
        transfer to the account designated by the USE for such purpose;

      

      (C) for
        each
        Buyer Party, the text of the resolutions adopted by the board of directors
        of
        Buyer Party authorizing the execution, delivery and performance of this
        Agreement, certified by an appropriate officer of Buyer Party;

      

      (D) the
        Royalty Agreement, duly executed by Uranium One Utah;

      

      (E) the
        Assignment and Assumption Agreement, duly executed by Buyers;
        and

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

      (F) if
        not
        contained in the Assignment and Assumption, assumptions of leases or other
        appropriate documents for the Acquired Assets under leases, duly executed
        by
        each Buyer.

      

      All
        actions to be taken in connection with consummation of the transactions
        contemplated by this Agreement and all certificates, opinions, instruments
        and
        other documents required to effect the transactions contemplated by this
        Agreement will be in form and substance reasonably satisfactory to Sellers
        and
        Sellers’ counsel.

      

      (c) All
        items
        delivered by the parties at the Closing will be deemed to have been delivered
        simultaneously, and no items will be deemed delivered or waived until all
        have
        been delivered.

      

      (d) Notwithstanding
        any investigation made by or on behalf of any of the parties to this Agreement
        or the results of any such investigation and notwithstanding the fact of,
        or the
        participation of such party in, the Closing, the representations, warranties
        and
        agreements in this Agreement will survive the Closing.

      

      (e) The
        Confidentiality Agreement will terminate effective as of the Closing
        Date.

      

      (f) Buyer
        and
        Seller shall each be responsible for their own sales, use, transfer, vehicle
        transfer, stamp, conveyance, value added or other similar Tax that may be
        imposed by any Governmental Entity in connection with the Closing, and Buyers
        shall be responsible for all recording or filing fees, notarial fees and
        other
        similar costs of Closing with respect to the purchase and sale of the Acquired
        Assets, or otherwise on account of this Agreement or the transactions
        contemplated by this Agreement.

      

      2.9 Resale
        Restrictions.

      

      (a) Each
        certificate representing Purchase Price Shares will be imprinted with legends
        substantially in the following forms:

      

      (i) THE
        SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES
        SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”) OR UNDER ANY STATE
        SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING SUCH SECURITIES, AGREES
        FOR
        THE BENEFIT OF THE COMPANY THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED
        OR
        OTHERWISE TRANSFERRED ONLY (A) TO THE COMPANY, (B) OUTSIDE THE UNITED STATES
        IN
        ACCORDANCE WITH RULE 904 OF REGULATION S UNDER THE 1933 ACT, (C) IN ACCORDANCE
        WITH RULE 144, IF AVAILABLE, AND IN EACH CASE IN ACCORDANCE WITH APPLICABLE
        STATE SECURITIES LAWS, OR (D) IN ACCORDANCE WITH ANOTHER AVAILABLE EXEMPTION
        FROM REGISTRATION UNDER THE 1933 ACT AND APPLICABLE STATE SECURITIES LAWS.
        DELIVERY OF THIS CERTIFICATE MAY NOT CONSTITUTE “GOOD DELIVERY” IN SETTLEMENT OF
        TRANSACTIONS ON STOCK EXCHANGES IN CANADA.

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

      provided,
        that,
        if the Shares are being sold under Rule 904 of Regulation S under the Securities
        Act at a time when Uranium One is a “foreign issuer” as defined in Rule 902 of
        Regulation S under the Securities Act, the legend may be removed by providing
        a
        declaration to Uranium One and the registrar and transfer agent for the Uranium
        One Common Shares, to the effect set forth in the Declaration for Removal
        of
        Legend attached as Exhibit H
        hereto
        (or such other evidence of exemption as such registrar and transfer agent
        or
        Uranium One may from time to time prescribe); and provided,
        further,
        that,
        if any Uranium One Common Shares are being sold under Rule 144 under the
        Securities Act and in compliance with applicable state securities laws, the
        legend may be removed by delivery to Uranium One and the registrar and transfer
        agent for the Uranium One Common Shares of an opinion of counsel reasonably
        satisfactory to Uranium One and such registrar and transfer agent to the
        effect
        that such legend is no longer required under applicable requirements of the
        Securities Act or state securities laws; and

      

      (ii) UNLESS
        PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST
        NOT
        TRADE THE SECURITY IN CANADA BEFORE <INSERT
        DATE THAT IS FOUR (4) MONTHS AND ONE (1) DAY AFTER CLOSING
        DATE>.

      

      (b) The
        Sellers have the right to immediately place or sell through BMO Capital Markets
        all of the Purchase Price Shares, provided that the offer and sale are made
        in
        compliance with Canadian and U.S. securities laws and regulations. The Sellers
        agree that until the first anniversary of the Closing Date, they will not
        offer,
        sell or otherwise transfer any of the Uranium One Common Shares that they
        hold,
        directly or indirectly, including through hedging transactions, except (i)
        pursuant to the preceding sentence, or (ii) in a transaction that is in
        compliance with Rule 904 of Regulation S under the Securities Act at a time
        when
        Uranium One is a “foreign issuer” as defined in Rule 902 of Regulation S under
        the Securities Act, and either (A) the sale is made through the facilities
        of
        the Toronto Stock Exchange in a “brokers’ transaction” as defined in Rule 144(g)
        under the Securities Act or (B) prior to the sale, Uranium One provides the
        Sellers with its written consent to the sale, which consent may not be
        unreasonably withheld.

      

      2.10 Allocation
        of Purchase Price Among Assets.
        The
        parties agree that $1,000,000 of the Purchase Price will be allocated as
        payment
        for the covenants under this Agreement set forth in Section 5.10. Buyers
        and
        Sellers will prepare a mutually agreed allocation of the Purchase Price (and
        all
        other capitalized costs), including any adjustment to the Purchase Price
        pursuant to Articles II and X among the Acquired Assets and the covenants
        under
        this Agreement in accordance with Section 1060 of the Code and the Treasury
        regulations thereunder (and any similar provision of state, local or foreign
        Law, as appropriate), which allocation shall be binding upon the Sellers.
        Buyers
        and Sellers shall finalize such allocation within 60 days after the Closing
        Date. Buyer Parties and the Sellers and their Affiliates shall report, act
        and
        file Returns (including Internal Revenue Service Form 8594 and any amendments
        thereto and any amendments thereto) in all respects and for all purposes
        consistent with such allocation prepared by Buyers. Neither the Buyer Parties
        nor the Sellers shall take any position (whether in audits, Returns or
        otherwise) that is inconsistent with such allocation unless required to do
        so by
        applicable Law.

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

      2.11 Allocation
        of Purchase Price Among Sellers.
        Sellers
        acknowledge and agree that (a) Sellers are solely responsible for determining
        the allocation of the Purchase Price between the Sellers, consistent with
        Section 2.10, and that Buyer Parties have and accept no responsibility for
        determining this allocation, (b) Sellers have appointed USE as their agent
        to
        accept all payments and deliveries of any portion of the Purchase Price under
        the terms of this Agreement, (c) Buyer Parties’ sole responsibility with respect
        to the Purchase Price shall be to deliver such Purchase Price to USE in the
        manner provided for in this Agreement, and (d) in the event of any dispute
        between the Sellers as to the appropriate allocation of the Purchase Price,
        or
        any failure of USE to deliver the appropriately allocated portion to each
        Seller, Buyer Parties shall have no liability.

      

      2.12 Data
        Delivery.
        Prior
        to the Closing, the Sellers will deliver to the Shootaring Canyon Mill and
        maintain at the Shootaring Canyon Mill all Records and Data that are legally
        required to be maintained at the Shootaring Canyon Mill. On or prior to the
        Closing, the Sellers will deliver to the Buyers as directed by the Buyers,
        all
        Acquired Contracts. Within 90 days after the Closing, the Sellers will deliver
        to the Buyers as directed by the Buyers, all other Records and Data included
        in
        the Acquired Assets.

      

      2.13 Further
        Assurances.
        On and
        after the Closing Date, Buyers and Sellers will take all appropriate action
        and
        execute any documents, instruments or conveyances of any kind that may be
        reasonably requested by either party to carry out any of the provisions of
        this
        Agreement.

      

      III.
        Representations
        and Warranties of the Sellers

      

      The
        Sellers represent and warrant to the Buyer Parties that, except as described
        in
        the Disclosure Schedule, as of the date of this Agreement and as of the Closing
        Date (as though made then and as though the Closing Date were substituted
        for
        the date of this Agreement):

      

      3.1 Incorporation;
        Power and Authority.
        

      

      (a) Each
        of
        USE, Crested, Old Plateau, New Plateau and USUL (i) is an entity duly organized,
        validly existing and in good standing under the laws of the jurisdiction
        of its
        organization, and (ii) has all necessary power and authority necessary to
        own,
        lease and operate the Acquired Assets and to execute, deliver and perform
        this
        Agreement and the Ancillary Agreements to which it is or will become a party;
        provided, however, that Old Plateau was administratively dissolved on July
        11,
        2001.

      

      (b) USE/CC
        is
        a joint venture of USE and Crested. USE/CC was established by, and the
        operations of USE/CC continue to be governed by, the joint venture agreement
        dated January 20, 1989 between USE and Crested. USE/CC is a contractual joint
        venture governed by a Management Committee, and is not incorporated or otherwise
        recognized under applicable state Laws as a legally separate
        entity.

      

      (c) Notwithstanding
        the administrative dissolution of Old Plateau, each Seller (including Old
        Plateau) has all necessary power and authority to execute, deliver and perform
        this Agreement and the Ancillary Agreements to which it is or will become
        a
        party.

      

      3.2 Valid
        and Binding Agreement.
        

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

      (a) The
        execution, delivery and performance by each Seller of this Agreement and
        the
        Ancillary Agreements to which such Seller is or will become a party have
        been
        duly and validly authorized by all necessary corporate and shareholder action
        of
        such Seller (or, in the case of USE/CC, all necessary equivalent internal
        action). This Agreement has been duly executed and delivered by each Seller
        and
        constitutes the valid and binding obligation of each Seller, enforceable
        in
        accordance with its terms, subject to the Remedies Exception. Each Ancillary
        Agreement entered into on or prior to the date of this Agreement has been
        duly
        executed and delivered by each Seller and each shareholder of any Seller
        that is
        a party to such Ancillary Agreement, and such Ancillary Agreements constitute
        the valid and binding obligations of such Sellers and such shareholders,
        enforceable in accordance with their terms, subject to the Remedies Exception.
        All other Ancillary Agreements to which any Seller will become a party, when
        executed and delivered by each Seller, will constitute the valid and binding
        obligations of such Sellers, enforceable against such Sellers in accordance
        with
        their terms, subject to the Remedies Exception.

      

      (b) The
        Board
        of Directors of each Seller (except USE/CC) and the Management Committee
        of
        USE/CC has approved this Agreement and the transactions contemplated by this
        Agreement, either at a meeting duly called and held at which a quorum was
        present throughout, by the requisite vote of directors, or by unanimous written
        consent, and in any case, in accordance with the requirements of all applicable
        corporate Laws and Contracts.

      

      (c) The
        USUL
        Agreement and Release has been signed by each person that owned any securities
        of USUL at the time that USUL transferred its assets to New Plateau, or at
        any
        time thereafter. USE has approved this Agreement and the transactions
        contemplated by this Agreement in its capacity as the sole shareholder of
        each
        of Old Plateau and New Plateau. Each of USE and Crested has approved this
        Agreement and the transactions contemplated by this Agreement in its capacity
        as
        the holder of a 50% interest in USE/CC.

      

      (d) None
        of
        the approvals, agreements or waivers described in Section 3.2(b) or Section
        3.2(c) has been amended, modified, revoked or withdrawn.

      

      (e) This
        Agreement and the transactions contemplated by this Agreement do not and
        will
        not require the approval of the shareholders of USE or Crested.

      

      3.3 No
        Breach; Consents.
        

      

      (a) Provided
        that each Consent and Governmental Authorization set forth on Schedule
        3.3(a)
        (the
“Seller
        Required Consents”)
        is
        obtained on or before the date set forth in Schedule
        3.3(a) as
        the
        legal or contractual deadline for obtaining such Seller Required Consent,
        the
        execution, delivery and performance by Sellers of this Agreement and the
        Ancillary Agreements to which such Sellers will become a party, including
        the
        sale, transfer and assignment of the Acquired Assets and the Assumed Liabilities
        to the Buyers, will not (i) violate or conflict with any Law, Governmental
        Order
        or Governmental Authorization; (ii) conflict with, result in any breach of
        any
        of the provisions of, constitute a default (or any event that would, with
        the
        passage of time or the giving of notice or both, constitute a default) under,
        result in a violation of, result in a material payment under, result in the
        termination, amendment, suspension, modification, abandonment or acceleration
        of
        payment (or any right to terminate) or 

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

      require
        a
        Consent under, any Contract that is either binding upon or enforceable against
        any Seller or any Governmental Authorization that is held by any Seller;
        (iii)
        result in the creation of any Encumbrance other than a Permitted Encumbrance
        upon any Seller or any of the assets of any Seller; (iv) require any
        Governmental Authorization; or (v) give any Governmental Entity or other
        Person
        the right to challenge any of the contemplated transactions or to exercise
        any
        remedy or obtain any relief under any Law, Governmental Order or Governmental
        Authorization.

      

      (b) Schedule
        3.3(a)
        describes, for each Seller Required Consent, (i) the Governmental Entity
        or
        other Person from which the Seller Required Consent must be obtained, (ii)
        the
        applicable Law, Governmental Order, Governmental Authorization or Contract
        requiring such Seller Required Consent, (iii) the Person that is legally
        or
        contractually obligated to obtain such consent, and (iv) the date by which
        such
        Seller Required Consent is legally or contractually required to be
        obtained.

      

      3.4 Capitalization.
        

      

      (a) USE
        is
        the record and beneficial holder of all of the issued and outstanding shares
        of
        common stock of Old Plateau.

      

      (b) USE
        is
        the record and beneficial holder of all of the issued and outstanding shares
        of
        common stock of New Plateau.

      

      (c) No
        securities of USUL are outstanding except for 5,000,000 shares of common
        stock
        held by USE, 5,000,000 shares of common stock held by Crested, and the shares
        of
        common stock and stock options set forth in the signature pages of the USUL
        Agreement and Release.

      

      (d) No
        Person
        except USE and Crested is entitled to vote on USE/CC’s approval of the
        transactions contemplated by this Agreement.

      

      3.5 Absence
        of Certain Developments.
        Since
        July 10, 2006, there has not been any Material Adverse Effect and as it pertains
        to the Acquired Assets:

      

      (a) the
        Sellers have not experienced any material damage, destruction or loss to
        the
        Acquired Assets; and

      

      (b) no
        Governmental Authorization with respect to the Acquired Assets has expired
        or
        been amended or suspended in a manner adverse to the Sellers, nor has any
        Seller
        taken any action that could result in, or failed to take any action necessary
        to
        avoid, the termination of, or any suspension or adverse modification to,
        any
        such Governmental Authorization.

      

      3.6 Property.
        

      

      (a) Except
        for Green River South and the Rio Tinto royalty held by Sellers on Rio Tinto’s
        Green Mountain properties, the Real Property listed on Schedule
        2.1(a)(i)
        constitutes, solely as related to Sellers’ uranium-related properties and
        assets, (i) all fee property owned, 

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

      held,
        leased, used, occupied or controlled by the Sellers, including, without
        limitation, all patented mining and millsite claims of the Sellers
        (“Fee
        Property”),
        (ii)
        all unpatented federal mining and millsite claims owned, held, or leased
        by the
        Sellers (“Unpatented
        Mining Claims”),
        (iii)
        all surface and underground water and water rights, together with all
        applications for water rights or applications or permits for the use, transfer
        or change of water rights, ditch and ditch rights, well and well rights,
        reservoir and reservoir rights, stock or interests in irrigation or ditch
        companies owned, held, or leased by the Sellers or appurtenant to the Real
        Property and all other rights to water for use at or in connection with the
        Real
        Property or the mining of minerals from the Real Property (“Water
        Rights”)
        owned,
        held or controlled by the Sellers, and (iv) all buildings, plants, offices,
        shops, warehouses, furnaces, smelters, mills and other facilities of the
        Sellers
        located on or related to the Real Property. With respect to the Unpatented
        Mining Claims, none of the Sellers makes any representation or warranty as
        to
        whether any of such claims contains a discovery of valuable minerals. Except
        for
        Green River South and the Rio Tinto royalty held by Sellers on Rio Tinto’s Green
        Mountain properties, none of the Sellers and none of their respective
        Subsidiaries or Affiliates owns, holds, controls, leases, uses or occupies
        any
        other uranium-related property or asset that is located in the States of
        Wyoming, Utah, Colorado, or Arizona. The “Rio Tinto royalty” referred to in this
        Section 3.6(a) means the royalty granted to the Sellers from Kennecott Uranium
        Company in September 2000, with respect to certain unpatented mining claims
        located on the Green Mountain properties in Fremont County,
        Wyoming.

      

      (b) The
        Sellers own good and defensible record title to the Unpatented Mining Claims
        listed as owned by it on Schedule
        2.1(a)(i).
        Except
        as provided on Schedule
        2.1(a)(i)
        and
        subject to the paramount title of the United States and the rights of third
        parties to use the surface of the Unpatented Mining Claims pursuant to
        applicable Law, the Sellers own the Unpatented Mining Claims listed on
Schedule
        2.1(a)(i)
        free and
        clear of any Encumbrances, other than Permitted Encumbrances.

      

      (c) The
        Sellers own the Water Rights, free and clear of any Encumbrances, other than
        Permitted Encumbrances.

      

      (d) The
        Sellers (i) own good and marketable title to all of (i) the Fee Property
        listed
        on Schedule
        2.1(a)(i)
        free and
        clear of all Encumbrances by, through and under the Sellers, and (ii) own
        the
        Tangible Personal Property free and clear of all Encumbrances, except for
        (A)
        Permitted Encumbrances, (B) the Encumbrances listed on Schedule
        3.6(d)(ii)(B), which
        Sellers shall cause to be released prior to the Closing, and (C) the leases
        listed on Schedule
        2.1(a)(i)
        and
Schedule
        3.8,
        as
        applicable, entered
        into between (i) one or more of the Sellers and (ii) Persons other than the
        Sellers and their respective Subsidiaries and Affiliates, in the Ordinary
        Course
        of Business.

      

      (e) The
        Shootaring Canyon Mill is located on the Fee Property located in Sections
        11 and
        34, T35S, R11E, and Sections 3 and 4, T36S, R11E, SLB&M.

      

      3.7 Tax
        Matters.

      

      (a) All
        of
        the Returns required to be filed by Sellers and/or any Tax Affiliate that
        relate
        in whole or in part to the Acquired Assets have been filed and all such Returns
        are true, 

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

      complete
        and correct in all respects, (ii) all Taxes required to be paid by any of
        the
        Sellers and their Tax Affiliates that relate in whole or in part to the Acquired
        Assets have been paid in full, and (iii) there are no claims that are being
        asserted with respect to any Taxes related to any of the Acquired Assets.
        There
        is no dispute or claim concerning any liability for Taxes of any of the Seller
        and/or their Tax Affiliates relating to the Acquired Assets claimed or raised
        by
        any Tax authority and, to the Knowledge of the Sellers, no facts exist that
        could give rise to any such claim by any Tax authority.

      

      (b) There
        are
        no Encumbrances for Taxes upon any assets of any Seller or any Tax Affiliate,
        except Encumbrances for Taxes not yet due.

      

      (c) The
        Sellers do not expect or anticipate the assessment of any additional Taxes
        on
        any Seller or any Tax Affiliate and are not aware of any unresolved questions,
        claims or disputes concerning the liability for Taxes of any Seller or any
        Tax
        Affiliate that relates in any manner to the Acquired Assets.

      

      3.8 Material
        Contracts.

      

      (a) Schedule
        3.8
        lists
        under separate subheadings, (i) all Contracts currently in effect to which
        any
        Seller is a party or subject or by which it is bound relating to the Real
        Property or by which any of the Real Estate is bound; and (ii) all other
        Contracts currently in effect to which any Seller is a party or subject or
        by
        which it is bound relating to the Acquired Assets or the Assumed Liabilities
        and
        material to the Acquired Assets or the Assumed Liabilities (collectively,
        the
“Material
        Contracts”).

      

      (b) Each
        Material Contract is valid and binding, currently in force and enforceable
        in
        accordance with its terms, subject to the Remedies Exception. The Sellers
        have
        performed all obligations required to be performed by them in connection
        with
        each Material Contract. The Sellers have not received any notice of any claim
        of
        default by it under, or termination of, any Material Contract. The Sellers
        have
        no present expectation or intention of not fully performing any obligation
        pursuant to any Material Contract, and there is no breach, anticipated breach
        or
        default by any Seller or any other party to any Material Contract. There
        is no
        renegotiation of, attempt to renegotiate or outstanding right to renegotiate
        any
        material terms of any Material Contract, and no Person has communicated demand
        for such renegotiation. Except as described on Schedule
        3.3(a),
        each
        Material Contract is assignable to Buyers without the consent of any
        Person.

      

      (c) The
        Sellers have not, within the last two years, disclosed to any Person other
        than
        the Buyer Parties and authorized representatives of Buyer Parties any
        proprietary confidential information, other than pursuant to a confidentiality
        agreement prohibiting the use or further disclosure of such
        information.

      

      3.9 Litigation.
        No
        Litigation is pending or, to the Knowledge of the Sellers, threatened against
        any Seller pertaining to the Acquired Assets or that could prevent the Sellers
        from fully performing their obligations under this Agreement or any Ancillary
        Agreement to which they are or will be parties. The Sellers are not subject
        to
        any outstanding Governmental 

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

      Order
        relating to the Acquired Assets or that could prevent the Sellers from fully
        performing their obligations under this Agreement or any Ancillary Agreement
        to
        which they are parties.

      

      3.10 Insurance.
        

      

      (a) The
        Sellers have at all times maintained general liability and workers’ compensation
        insurance relating to the Acquired Assets. Schedule
        3.10
        lists
        each policy of insurance currently in effect. Such insurance (i) is in full
        force and effect, (ii) is sufficient for compliance with all requirements
        of
        applicable Law and of any Contract to which any Seller is subject, and (iii)
        is
        valid and enforceable. 

      

      (b) During
        the last two years, there have been no insured or self-insured claims related
        to
        the Acquired Assets in excess of $100,000.

      

      3.11 Compliance
        with Laws; Governmental Authorizations.

      

      (a) The
        Sellers have complied in all material respects with all applicable Laws and
        Governmental Orders.

      

      (b) The
        Sellers hold the Governmental Authorizations listed in Schedule
        3.11(b).
        The
        Sellers have in full force and effect all material Governmental Authorizations
        necessary to own the Acquired Assets and to operate the Acquired Assets as
        they
        are currently being operated.

      

      (c) No
        filing
        is required to be made under the HSR Act in connection with the transactions
        contemplated by this Agreement, due to the availability of the unproductive
        real
        property exemption at 16 C.F.R. § 802.2(c) under the HSR Act.

      

      (d) None
        of
        the Sellers is, nor will the transactions contemplated by this Agreement
        cause
        any Seller to become, registered or required to be registered under the
        Investment Company Act of 1940, as amended.

      

      3.12 Environmental
        Matters.

      

      (a) As
        used
        in this Section 3.12, the following terms have the following
        meanings:

      

      (i) “Environmental
        Costs”
means
        any and all costs and expenditures, including any fees and expenses of attorneys
        and of environmental consultants or engineers incurred in connection with
        investigating, defending, remediating or otherwise responding to any Release
        of
        Hazardous Materials, any violation or alleged violation of Environmental
        Law,
        any fees, fines, penalties or charges associated with any Governmental
        Authorization, or any actions necessary to comply with any Environmental
        Law.

      

      (ii) “Environmental
        Law”
means
        any Law, Governmental Authorization or Governmental Order relating to pollution,
        contamination, Hazardous Materials or protection of the
        environment.

      
        
          
          

        

        
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      (iii) “Hazardous
        Materials”
means
        any dangerous, toxic or hazardous pollutant, contaminant, chemical, waste,
        material or substance as defined in or governed by any Environmental Law
        relating to such substance or otherwise relating to the environment or human
        health or safety, including any waste, material, substance, pollutant or
        contaminant that might cause any injury to human health or safety or to the
        environment or might subject the owner or operator of the Real Property to
        any
        Environmental Costs or liability under any Environmental Law.

      

      (iv) “List”
means
        the United States Environmental Protection Agency’s National Priorities List
        (NPL) of Hazardous Substance Sites or CERCLA Information System (CERCLIS)
        or any
        similar list maintained by a state regulatory authority for the states of
        Utah,
        Wyoming, Colorado and Arizona with
        respect to sites from which there has been a Release of Hazardous
        Materials.

      

      (v) “Regulatory
        Action”
means
        any Litigation with respect to any Seller brought or instigated by any
        Governmental Entity in connection with any Environmental Costs, Release of
        Hazardous Materials or any Environmental Law.

      

      (vi) “Release”
means
        the spilling, leaking, disposing, discharging, emitting, depositing, ejecting,
        leaching, escaping or any other release or threatened release, however defined,
        whether intentional or unintentional, of any Hazardous Material.

      

      (vii) “Third-Party
        Environmental Claim”
means
        any Litigation (other than a Regulatory Action) based on negligence, trespass,
        strict liability, nuisance, toxic tort or any other cause of action or theory
        relating to any Environmental Costs, Release of Hazardous Materials or any
        violation of Environmental Law.

      

      (b) No
        Third-Party Environmental Claim or Regulatory Action has been taken, is pending
        or is, to the Knowledge of the Sellers, threatened against any
        Seller.

      

      (c) To
        the
        Knowledge of the Sellers, no Real Property is listed on a List.

      

      (d) Except
        as
        set forth in Schedule
        3.12(d),
        no Real
        Property has ever been used as a landfill, dump or other disposal, storage,
        transfer, handling or treatment area for Hazardous Materials, or as a gasoline
        service station or a facility for selling, dispensing, storing, transferring,
        disposing or handling petroleum and/or petroleum products, other than as
        permitted in valid plans of operation, mine plans or other Governmental
        Authorizations pertaining to the Sellers’ activities and
        operations.

      

      (e) To
        the
        Knowledge of the Sellers, there has not been any Release of any Hazardous
        Material on, under, about, from or in connection with the Real Property,
        including the presence of any Hazardous Materials that have come to be located
        on or under the Real Property from another location, other than in compliance
        with applicable Environmental Laws.

      

      (f) To
        the
        Knowledge of the Sellers, the Real Property at all times has been used and
        operated in all material respects in compliance with all applicable
        Environmental Law.

      
        
          
          

        

        
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      (g) Since
        the
        date on which any Seller first owned or operated the Shootaring Canyon Mill,
        each Seller has filed all reports and notifications required to be filed
        under
        and pursuant to all applicable Environmental Law with respect to the Shootaring
        Canyon Mill.

      

      (h) To
        the
        Knowledge of the Sellers, since the date on which any Seller first owned,
        operated or leased the Real Property, no Hazardous Materials have been
        generated, treated, contained, handled, located, used, manufactured, processed,
        buried, incinerated, deposited or stored on, under or about any part of such
        Real Property, other than in compliance with applicable Environmental Law.
        To
        the Knowledge of the Sellers, no underground storage tanks are located on,
        under
        or about the Real Property or have been located on, under or about the Real
        Property and been subsequently removed or filled. To the Knowledge of the
        Sellers, if any aboveground storage tanks exist on, under or about the Real
        Property, such storage tanks have been duly registered with all appropriate
        Governmental Entities as required and are otherwise in compliance with all
        applicable Environmental Law.

      

      (i) To
        the
        Knowledge of the Sellers, the Sellers have made available to the Buyers all
        material environmental reports, plans and investigations that Sellers have
        prepared, obtained or ordered, or have in their possession or control, with
        respect to the Real Property (the “Environmental
        Reports”).
        The
        Sellers have not withheld from Buyers any such Environmental Reports or any
        other material information related thereto.

      

      (j) No
        Encumbrance has been attached or filed against any Seller in favor of any
        Person
        for (i) any liability under or violation of any applicable Environmental
        Law,
        (ii) any Release of Hazardous Materials or (iii) any imposition of Environmental
        Costs. 

      

      3.13 Employees;
        Employee Benefits.

      

      (a) Old
        Plateau, New Plateau, USUL or USE/CC do not currently have any employees,
        nor
        have they had any employees within the last five years. No employee of USE
        or
        Crested has his or her principal office located at the Shootaring Canyon
        Mill or
        on any of the other properties included in the Acquired Assets.

      

      (b) No
        Acquired Assets are subject to any lien under the Employee Retirement Income
        Security Act of 1974, as amended (“ERISA”)
        or the
        Code, including without limitation, ERISA Section 302(f) or Code Section
        412(n).

      

      (c) Sellers
        acknowledge and agree that (i) Buyer Parties are not obligated to employ
        any of
        the Sellers’ employees, and (ii) all Liabilities relating to employees and
        former employees and any plan, fund, Contract, program and arrangement (whether
        written or not) for the benefit of present or former employees will be solely
        for the account of the Sellers.

      

      3.14 Affiliate
        Transactions.
        No
        Insider has (a) any Contract with any Seller relating to the Acquired Assets
        (b)
        any Contract with any Seller relating to any of the Acquired Assets or Assumed
        Liabilities, or (c) any loan to or from any Seller or any interest in any
        of the
        Acquired Assets. No Insider has any direct or indirect interest in any
        competitor, supplier or vendor of any Seller relating to the Acquired Assets,
        or
        in any Person from whom or to whom any Seller leases any property relating
        to
        the Acquired Assets, or in any other Person with whom any Seller otherwise
        transacts business of any nature relating to the Acquired
        Assets.

      
        
          
          

        

        
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      3.15 Brokerage.
        No
        Person will be entitled to receive any brokerage commission, finder’s fee, fee
        for financial advisory services or similar compensation in connection with
        the
        transactions contemplated by this Agreement based on any Contract made by
        or on
        behalf of any Seller.

      

      3.16 Availability
        of Documents.
        The
        Sellers have delivered to Buyers correct and complete copies of the items
        referred to in the Disclosure Schedule or in this Agreement (and in the case
        of
        any items not in written form, a written description thereof).

      

      3.17 Disclosure.
        This
        Agreement, the exhibits and the Disclosure Schedule do not, and when delivered,
        the Closing Update will not, to the Knowledge of the Sellers, contain any
        untrue
        statement or omit any material fact necessary to make the statements contained
        therein, in light of the circumstances in which they were made, not
        misleading.

      

      3.18 Investment.
        Each
        Seller (a) understands that the Purchase Price Shares have not been, and
        will
        not be, registered under the Securities Act or under any state securities
        laws,
        are being offered and sold in reliance upon federal and state exemptions
        for
        transactions not involving any public offering and will contain legends
        restricting transfer substantially in the form set forth in Section 2.9;
        (b) is
        acquiring the Purchase Price Shares solely for its own account for investment
        purposes, and not with a view to the distribution thereof; (c) is a
        sophisticated investor with knowledge and experience in business and financial
        matters; (d) has received information concerning Buyers that it considers
        sufficient for purposes making its decision to invest in the Purchase Price
        Shares and has had the opportunity to obtain additional information as desired
        in order to evaluate the merits and the risks inherent in holding the Purchase
        Price Shares; (e) is able to bear the economic risk and lack of liquidity
        inherent in holding the Purchase Price Shares; (f) is an “accredited investor”
as that term is defined under Rule 501 of the Securities Act; (g) is an
“accredited investor” as such term is defined in National
        Instrument 45-106 - Prospectus and Registration Exemptions
        by
        virtue of being a person, company or other entity of the type indicated in
        the
        form of the certificate of accredited investor attached to this Agreement
        as
Exhibit
        K;
        (h)
        understands that the Purchase Price Shares may not be offered, sold or otherwise
        transferred by the Seller except in compliance with the restrictions described
        in Section 2.9; (i) understands that the Purchase Price Shares may not be
        sold
        in Canada or to Canadian residents unless, in addition to compliance with
        the
        restrictions described in Section 2.9, the sale is made pursuant to an available
        exemption from the prospectus and registration requirements under the securities
        legislation in the Canadian purchaser's province or territory of residence
        or
        the required “hold” period under Canadian securities legislation has expired
        since the issuance of the Purchase Price Shares; (j) understands that Uranium
        One may be required to disclose to applicable securities regulatory authorities
        the identity of the Sellers as purchasers of the Purchase Price Shares; (k)
        is
        resident in the jurisdiction set forth in Section 11.4; (l) understands that
        the
        Purchase Price Shares are being offered and sold pursuant to prospectus and
        registration exemptions available under applicable securities laws and as
        a
        result, (x) each Seller is restricted from using certain of the civil remedies
        available under the applicable securities laws; (y) each Seller may not receive
        information that might otherwise be required to be provided to each Seller
        under
        the applicable securities laws if the exemptions were not being used; and
        (z)
        Uranium One is relieved from certain obligations that would otherwise apply
        under the applicable securities laws if the exemptions were not being used.
        Concurrently with the 

      
        
          
          

        

        
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      signing
        of this Agreement, each Seller has duly completed, executed and delivered
        to the
        Buyers a certificate of accredited investor in the form set forth as
Exhibit
        K
        hereto.

      

      IV.
        Representations
        and Warranties of Buyer Parties

      

      Buyer
        Parties represent and warrant to Sellers that as of the date of this Agreement
        and as of the Closing Date (as though made then and as though the Closing
        Date
        were substituted for the date of this Agreement):

      

      4.1 Incorporation;
        Power and Authority.
        Each
        Buyer Party is a corporation duly organized, validly existing and in good
        standing under the Laws of its jurisdiction of organization, with all necessary
        power and authority to execute, deliver and perform this Agreement and the
        Ancillary Agreements to which it is or will become a party.

      

      4.2 Valid
        and Binding Agreement.
        The
        execution, delivery and performance of this Agreement and the Ancillary
        Agreements to which any Buyer Party is or will become a party by such Buyer
        Party has been duly and validly authorized by all necessary corporate and
        shareholder action. This Agreement has been duly executed and delivered by
        each
        Buyer Party and constitutes the valid and binding obligation of each Buyer
        Party, enforceable against it in accordance with its terms, subject to the
        Remedies Exception. Each Ancillary Agreement entered into on or prior to
        the
        date of this Agreement has been duly executed and delivered by each Buyer
        Party
        that is a party to such Ancillary Agreement, and such Ancillary Agreements
        constitute the valid and binding obligations of such Buyer Parties, enforceable
        against them in accordance with their terms, subject to the Remedies Exception.
        All other Ancillary Agreements to which any Buyer Party will become a party,
        when executed and delivered by each Buyer Party, will constitute the valid
        and
        binding obligations of such Buyer Parties, enforceable against such Buyer
        Parties in accordance with their terms, subject to the Remedies
        Exception.

      

      4.3 No
        Breach; Consents.
        Provided that each Seller Required Consent is obtained on or before the date
        set
        forth in Schedule
        3.3(a) as
        the
        legal or contractual deadline for obtaining such Seller Required Consent
        and
        subject to the approval of the Toronto Stock Exchange, the execution, delivery
        and performance of this Agreement and the Ancillary Agreements to which any
        Buyer Party is or will become a party by such Buyer Party, including the
        delivery of the Purchase Price Shares to the Sellers, will not (a) violate
        or
        conflict with any Law, Governmental Order or Governmental Authority; (b)
        conflict with, result in any breach of any of the provisions of, constitute
        a
        default (or any event that would, with the passage of time or the giving
        of
        notice or both, constitute a default) under, result in a violation of,
        substantially increase the burdens under, result in the termination, amendment,
        suspension, modification, abandonment or acceleration of payment (or any
        right
        to terminate) or require a Consent, including any Consent under any Contract
        or
        Governmental Authorization that is either binding upon or enforceable against
        Buyer Party; or (c) require any Governmental Authorization.

      

      4.4 Brokerage.
        No
        Person except BMO Nesbitt Burns Inc. will be entitled to receive any brokerage
        commission, finder’s fee, fee for financial advisory services or similar
        compensation in connection with the transactions contemplated by this Agreement
        based on any Contract made by or on behalf of any Buyer Party. Buyers shall
        be
        responsible for any payment 

      
        
          
          

        

        
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      due
        to
        BMO Nesbitt Burns Inc., and shall indemnify Sellers from any obligation related
        to that payment.

      

      4.5 Sophistication.
        Uranium
        One is a sophisticated business with expertise in the mining industry. The
        Buyer
        Parties have had access to the Sellers’ management team, the Real Property, an
        electronic data room created by the Sellers in connection with the transactions
        contemplated by this Agreement and other Data related to the Acquired Assets
        for
        the purposes of conducting a due diligence review of the Acquired Assets.
        Except
        as provided in this Agreement and the other agreements and instruments referred
        to herein, the Buyer Parties have relied on their independent investigations
        and
        judgments concerning the nature of the Acquired Assets and the Assumed
        Liabilities.

      

      4.6 Uranium
        One Common Shares.
        The
        Purchase Price Shares will, when issued and delivered in accordance with
        this
        Agreement, be duly authorized, validly issued, fully paid and
        nonassessable.

      

      4.7 SEDAR
        Filings; Financial Statements.

      

      (a) Uranium
        One has filed all forms, reports, schedules, statements and other documents
        required to be filed by it during the 12 months immediately preceding the
        date
        of this Agreement (collectively, as supplemented and amended since the time
        of
        filing, the “Uranium
        One SEDAR Reports”)
        with
        the securities regulators in Canada. The Uranium One SEDAR Reports were prepared
        in all material respects in accordance with all applicable Canadian securities
        law requirements.

      

      (b) The
        audited consolidated financial statements and unaudited consolidated interim
        financial statements of Uranium One and its consolidated Subsidiaries included
        or incorporated by reference in the Uranium One SEDAR Reports have been prepared
        in accordance with Canadian GAAP consistently applied during the periods
        indicated (except as may otherwise be indicated in the notes) and present
        fairly
        the financial position, results of operations and cash flows of Uranium One
        and
        its consolidated Subsidiaries on a consolidated basis at the respective dates
        and for the respective periods indicated (except interim financial statements
        may not contain all notes and are subject to year-end adjustments).

      

      V.
        Agreements
        of the Sellers

      

      5.1 Conduct
        of the Business.
        Except
        with the prior written consent of Uranium One, from the date of this Agreement
        through the Closing Date,

      

      (a) the
        Sellers will own and operate the Acquired Assets only in, and will not take
        any
        action except in, the Ordinary Course of Business and in accordance with
        applicable Law;

      

      (b) the
        Sellers will not amend or modify any Material Contract or enter into any
        Contract that would have been a Material Contract if such Contract had been
        in
        effect on the date of this Agreement;

      
        
          
          

        

        
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      (c) to
        the
        extent related to the Acquired Assets, each Seller will (i) use its reasonable
        efforts to keep available the services of its officers, employees and
        consultants and maintain satisfactory relationships with vendors, suppliers
        and
        others having business relationships with it, (ii), subject to applicable
        Laws,
        confer on a regular and frequent basis with representatives of Buyer Parties
        to
        report operational matters and the general status of ongoing operations as
        requested by Buyer Parties and (iii) not take any action that would render,
        or
        that reasonably may be expected to render, any representation or warranty
        made
        by any Seller in this Agreement untrue at the Closing as though then made
        and as
        though the Closing Date had been substituted for the date of this Agreement
        in
        such representation or warranty, including any actions referred to in Section
        3.5; and

      

      (d) none
        of
        the Sellers will cancel or terminate its current insurance policies applicable
        to the Acquired Assets or allow any of the coverage thereunder to lapse,
        unless
        simultaneously with such termination, cancellation or lapse replacement policies
        providing coverage equal to or greater than the coverage under the canceled,
        terminated or lapsed policies for substantially similar premiums are in full
        force and effect.

      

      5.2 Notice
        of Developments.
        The
        Sellers will promptly notify Buyer Parties of any emergency or other change
        in
        the Ordinary Course of Business of the Sellers or the commencement or threat
        of
        Litigation related to the Acquired Assets, the Assumed Liabilities, this
        Agreement, or any of the Ancillary Agreements or that could affect the ability
        of any party to this Agreement to fully perform such party’s obligations under
        this Agreement and the Ancillary Agreements to which it is or will become
        a
        party. The Sellers will promptly notify Buyer Parties in writing if it should
        discover that any representation or warranty made by it in this Agreement
        was
        when made, has subsequently become or will be on the Closing Date, untrue
        in any
        respect. No disclosure pursuant to this Section 5.2 will be deemed to amend
        or
        supplement the Disclosure Schedule or to prevent or cure any inaccuracy,
        misrepresentation, breach of warranty or breach of agreement.

      

      5.3 Access.
        Through
        the Closing Date, Sellers will afford to Buyer Parties and their authorized
        representatives full access at all reasonable times and upon reasonable notice
        to the facilities, offices, properties, officers, employees of each Seller,
        the
        Records and the Data included in the Acquired Assets and otherwise provide
        such
        assistance as may be reasonably requested by Buyer Parties in order that
        Buyer
        Parties have a full opportunity to make such investigation and evaluation
        as
        they reasonably desire to make of the Acquired Assets and the Sellers’ ability
        to comply with the terms of this Agreement and the Ancillary Agreements.
        In
        addition, Sellers will cooperate (including providing introductions where
        necessary) with Buyer Parties to enable Buyer Parties to contact third parties,
        including employees, suppliers and vendors of each Seller, and to communicate
        with employees of each Seller, in such respects.

      

      5.4 Conditions.
        Each
        Seller will use its reasonable efforts to cause the conditions set forth
        in
        Section 8.1 to be satisfied and to consummate the transactions contemplated
        by
        this Agreement as soon as reasonably possible and in any event prior to the
        Closing Date.

      

      5.5 No
        Sale.
        The
        Sellers will not sell, pledge, transfer or otherwise place any Encumbrance
        other
        than a Permitted Encumbrance on any Acquired Assets.

      
        
          
          

        

        
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      5.6 Post-Closing
        Access.
        After
        the Closing Date, Sellers will afford to Buyer Parties, their accountants
        and
        counsel, during normal business hours, upon reasonable request, full access
        to
        the books and records of Sellers related to the Acquired Assets.

      

      5.7 Litigation
        Support.
        In the
        event and for so long as any Buyer Party is actively contesting or defending
        against any Litigation in connection with any fact, situation, circumstance,
        status, condition, activity, practice, plan, occurrence, event, incident,
        action, failure to act or transaction existing or occurring on or prior to
        the
        Closing Date involving the Acquired Assets or the Acquired Liabilities, Sellers
        will provide reasonable assistance in the contest or defense, make reasonably
        available their personnel and provide such testimony and access to their
        books
        and records as may be reasonably necessary in connection with the contest
        or
        defense, at the cost and expense of Buyer Parties (unless and to the extent
        any
        Buyer Party is entitled to indemnification therefor under
        Article X).

      

      5.8 Confidentiality.

      

      (a) Sellers
        will keep confidential and protect, and will not divulge, allow access to
        or use
        in any way, either prior to or after the Closing, (i) all technical,
        engineering, economic, legal, commercial and business information related
        to the
        Acquired Assets, including, without limitation, the Records and Data included
        in
        the Acquired Assets (“Seller
        Confidential Information”),
        and
        (ii) all technical, engineering, economic, legal, commercial and business
        information of any Buyer Party (“Buyer
        Confidential Information”),
        in
        each case, unless required by Laws, Governmental Orders, policies, or rules
        of
        stock exchanges on which the shares of any Seller are listed, in which event,
        Sellers shall promptly provide written notice to Buyer Parties and, unless
        waived by Buyer Parties, the Sellers shall use their reasonable efforts to
        seek
        a protective order with respect to such information. Sellers acknowledge
        that
        the Buyer Confidential Information constitutes a unique and valuable asset
        of
        each Buyer and represents a substantial investment of time and expense by
        such
        Buyers, and that any disclosure or other use of such Buyer Confidential
        Information other than for the sole benefit of such Buyers would be wrongful
        and
        would cause irreparable harm to such Buyers. Sellers acknowledge that after
        the
        Closing, all Seller Confidential Information will constitute Buyer Confidential
        Information, and will therefore constitute a unique and valuable asset of
        each
        Buyer and will represent a substantial investment of time and expense by
        such
        Buyers, and that any disclosure or other use of such Buyer Confidential
        Information other than for the sole benefit of such Buyers would be wrongful
        and
        would cause irreparable harm to such Buyers. The foregoing obligations of
        confidentiality will not apply to any Buyer Confidential Information that
        is or
        subsequently becomes generally publicly known, other than as a direct or
        indirect result of the breach of this Agreement by any Seller.

      

      (b) The
        Sellers acknowledges that Buyer Parties have required that the Sellers make
        the
        agreements in this Section 5.8 as a condition to Buyer Parties’ consummation of
        the transactions contemplated by this Agreement. The Sellers agree that the
        agreements contained in this Section 5.8 are reasonable and necessary to
        protect
        the legitimate interests of Buyer Parties and that any violation or breach
        of
        this Section 5.8 will result in irreparable injury to Buyer Parties for which
        no
        adequate remedy would exist at law. Accordingly, in addition to any relief
        at
        law that may be available to Buyer Parties for such violation or breach and
        regardless of any other provision contained in this Agreement, Buyer Parties
        will be entitled to injunctive and 

      
        
          
          

        

        
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      other
        equitable relief restraining such violation or breach (without any requirement
        that Buyer Parties provide any bond or other security).

      

      (c) After
        the
        Closing, the Sellers shall be permitted to retain in their files, solely
        for
        archival purposes and to allow the assessment and analysis of Data unrelated
        to
        the Acquired Assets and the Non Compete Zone, and subject to the obligations
        of
        confidentiality set forth in this Section 5.8, one copy of the Records and
        the
        Data included in the Acquired Assets. Except as set forth in the previous
        sentence, at the request and option of Buyer Parties, Sellers will deliver
        promptly to Buyer Parties or destroy all tangible and intangible embodiments
        (and all copies) of the Buyer Confidential Information (including, after
        the
        Closing, information that previously constituted Seller Confidential
        Information) that is in the possession of Sellers.

      

      (d) Beginning
        two years after the Closing, the Sellers may use the Data included in the
        Acquired Assets that relates to the Non-Compete Zone and that does not relate
        to
        either (i) the Acquired Assets described in Section 2.1(a) or Section 2.1(b),
        or
        (ii) any other real property within the Non-Compete Zone in which any of
        the
        Buyer Parties or their affiliates have acquired any interest prior to the
        second
        anniversary of the Closing (the “Non-Conflicting
        Data”),
        to
        pursue uranium prospects and opportunities; provided,
        that
        the Sellers’ use of Non-Conflicting Data must be in compliance with the
        confidentiality obligations set forth in Section 5.8(a); and provided,
        further,
        that
        notwithstanding the foregoing, if the Sellers enter into a joint venture
        with
        another Person, and such Person agrees for the benefit of the Sellers and
        the
        Buyer Parties to comply with the terms of this Section 5.8 with respect to
        any
        Non-Conflicting Data disclosed to such Person, the Sellers may disclose the
        Non-Conflicting Data to such Person more than two years after the
        Closing.

      

      5.9 Assignment
        of Confidentiality Agreements.
        The
        Sellers have provided the Buyers with a list of all confidentiality agreements
        pursuant to which the Sellers have disclosed confidential information relating
        to the Acquired Assets. The Sellers will request the return or destruction
        of
        all information covered by such agreements and related to the Acquired Assets
        within two Business Days of the date of this Agreement to the broadest extent
        permitted by such agreements, and will use their reasonable efforts to secure
        the return or destruction of all such information as soon as reasonably
        practicable and in any event prior to the Closing Date. The Sellers will
        keep
        the Buyers reasonably apprised of the Sellers’ progress in this regard. If on
        the Closing Date any party to any such agreement has failed to certify to
        the
        Sellers in writing that it has returned or destroyed all confidential
        information relating to the Acquired Assets, the Sellers shall assign their
        rights (but not their obligations) under the applicable confidentiality
        agreement to the Buyers to the extent such rights are assignable and, if
        such
        rights are not assignable, the Sellers shall continue to use their reasonable
        efforts to cause such party to return or destroy the confidential information
        related to the Acquired Assets and, if requested by the Buyers, the Sellers
        will
        seek other reasonable remedies with respect thereto.

      

      5.10 Covenant
        Not to Compete.
        

      

      (a) As
        additional consideration for the consideration to be paid to the Sellers
        under
        this Agreement, for a period of two years from the Closing Date, neither
        any
        Seller nor any Affiliate of any Seller will, directly or indirectly, acquire,
        own or hold or engage in the business of acquiring, owning or holding a uranium
        mill, a uranium mine or a uranium mineral 

      
        
          
          

        

        
          31

          
            

          

        

        
          
          

        

      

      exploration
        property, lease or claim in the Non-Compete Zone, including as a proprietor,
        principal, operator, agent, partner, officer, director, shareholder, employee,
        member of any association, consultant or otherwise. Notwithstanding the
        foregoing, none of the following will constitute a breach of this Section
        5.10:
        (i) any interest in Green River South, and (ii) ownership by the Sellers
        and
        their Affiliates, as a passive investment, of an aggregate of less than five
        percent of the outstanding shares of capital stock of any corporation whose
        stock is listed on a national securities exchange.

      

      (b) The
        Sellers acknowledge that Buyer Parties have required that the Sellers make
        the
        agreements in this Section 5.10 as a condition to Buyer Parties’ consummation of
        the transactions contemplated by this Agreement. The Sellers acknowledge
        that
        the agreements contained in this Section 5.10 are reasonable (including with
        respect to duration, geographical area and scope) and necessary to protect
        the
        legitimate interests of Buyer Parties and that any violation or breach of
        this
        Section 5.10 will result in substantial and irreparable harm to Buyer Parties
        for which no adequate remedy would exist at law. Accordingly, in addition
        to any
        relief at law that may be available to Buyer Parties for such violation or
        breach and regardless of any other provision contained in this Agreement,
        Buyer
        Parties will be entitled to injunctive and other equitable relief restraining
        such violation or breach (without any requirement that Buyer Parties provide
        any
        bond or other security).

      

      (c) In
        the
        event of a violation or breach by any Seller of any agreement set forth in
        this
        Section 5.10, the term of such agreement will be extended by the period of
        the
        duration of such violation or breach.

      

      (d) If
        the
        final judgment of a court of competent jurisdiction declares that any term
        or
        provision of this Section 5.10 is invalid or unenforceable, the court making
        the
        determination of invalidity or unenforceability will have the power to reduce
        the scope, duration or area of the term or provision, to delete specific
        words
        or phrases or to replace any invalid or unenforceable term or provision with
        a
        term or provision that is valid and enforceable and that comes closest to
        expressing the intention of the invalid or unenforceable term or provision,
        and
        this Agreement will be enforceable as so modified after the expiration of
        the
        time within which the judgment may be appealed.

      

      5.11 Payment
        of All Taxes Resulting From Sale of Assets by the Sellers.
        The
        Sellers and Buyers will (i) each provide the other with such assistance as
        may
        reasonably be requested by any of them in connection with the preparation
        of any
        Return, audit or other examination by any taxing authority or judicial or
        administrative proceedings relating to liability for Taxes, (ii) each retain
        and
        provide the other with any records or other information that may be relevant
        to
        such Return, audit or examination, proceeding or determination, and (iii)
        each
        provide the other with any final determination of any such audit or examination,
        proceeding or determination that affects any amount required to be shown
        on any
        Return of the other for any period.

      

      5.12 Removing
        Excluded Assets.
        Within
        90 days following the Closing Date, weather permitting, the Sellers will
        remove
        all Excluded Assets, including those set forth on Schedule
        2.2,
        from
        the Real Property. Such removal will be done in such manner as to avoid any
        material damage to the Real Property and any disruption of the business
        operations to be conducted by Buyers after the Closing. If the Sellers fail
        to
        remove the Excluded Assets as required by this 

      
        
          
          

        

        
          32

          
            

          

        

        
          
          

        

      

      Section
        5.12, Buyers will have the right, but not the obligation, (a) to remove the
        Excluded Assets at the Sellers’ sole cost and expense; (b) to store the Excluded
        Assets and to charge the Sellers all storage costs associated therewith;
        (c) to
        treat the Excluded Assets as unclaimed and to proceed to dispose of the same
        under the laws governing unclaimed property; or (d) to exercise any other
        right
        or remedy conferred by this Agreement or otherwise available at law or in
        equity. The Sellers will promptly reimburse Buyers for all costs and expenses
        incurred by Buyers in connection with any Excluded Assets not removed by
        the
        Sellers on or before the Closing Date.

      

      5.13 Title
        Covenants.
        

      

      (a) The
        Sellers and the Buyers have agreed upon a summary identified as “Real Property
        Title Review Summary” and dated as of the date of this Agreement (“Title
        Review Summary”)
        that
        lists title defects, limitations, and exceptions (“Title
        Defects”)
        arising out of or relating to the Real Property and proposed curative steps
        to
        address the Title Defects. Each of the Sellers and the Buyers acknowledge
        receipt of a copy of the Title Review Summary. Prior to Closing, the Sellers
        shall use their respective reasonable efforts at Sellers’ sole cost and expense
        to remove or cure the Title Defects as set forth in the Title Review Summary
        and
        in cooperation with and in a manner that is acceptable to the Buyers
        (“Title
        Curative”).
        The
        Sellers shall pay for all reasonable costs and expenses (excluding Buyers’ legal
        costs) incurred before or after Closing to conduct Title Curative (“Title
        Curative Costs”).
        All
        Title Defects that have not met Title Curative shall survive Closing and
        shall
        be deemed to have not been waived. 

      

      (b) Any
        Title
        Defect for which Sellers have not achieved Title Curative on or before five
        (5)
        days prior to the Closing shall be subject to the post closing provisions
        of
        this Section 5.13(b). At Closing, the Sellers shall establish and fund an
        escrow
        account pursuant to an escrow agreement reasonably satisfactory to the Sellers
        and the Buyers substantially in the form of Exhibit
        L
        (“Title
        Escrow”)
        and in
        an amount equal to the sum of $500 per mining claim for which Sellers have
        not
        achieved Title Curative up to a maximum amount of $200,000 (“Escrow
        Funds”).
        The
        Sellers and the Buyers shall jointly conduct the remaining Title Curative.
        The
        Buyers shall have the right to reimbursement from the Title Escrow for all
        reasonable costs and expenses (excluding Buyers’ legal costs) incurred by the
        Buyers to conduct the Title Curative. The Escrow Funds shall remain subject
        to
        the Title Escrow to and until completion of all Title Curative for all of
        the
        Title Defects. The Title Escrow shall remain in effect and funded for a period
        of one (1) year following the Closing Date unless earlier terminated upon
        completion of Title Curative for all Title Defects and for which the Sellers
        and
        the Buyers will have provided a joint termination notice to the escrow agent
        to
        release all remaining Escrow Funds and terminate the Title Escrow. After
        one (1)
        year, if Title Curative for all Title Defects is not complete, Sellers shall
        release from the Escrow Funds to the Buyers the amount of funds remaining
        unused
        for each individual mining claim (the maximum sum of $500 per mining claim)
        for
        which Sellers have not achieved Title Curative for the Title Defects. Such
        release of the Escrow Funds to the Buyers shall be the Buyers’ exclusive remedy
        for the Title Defects listed in the Title Review Summary, but shall not
        otherwise limit the remedies available to the Buyers for any other breach
        by the
        Sellers of their representations and warranties relating to such Real
        Property.

      

      5.14 Memorandum
        of Restriction.
        On the
        Closing Date, Uranium One Utah and USE shall enter into a memorandum of
        restriction on sale or transfer substantially in the form attached

      
        
          
          

        

        
          33

          
            

          

        

        
          
          

        

      

      hereto
        in
Exhibit
        J.
        Promptly following the Closing, such memorandum shall be recorded in the
        Garfield County, Utah property records. USE agrees to cause such Encumbrance
        to
        be removed promptly following the earliest to occur of: (i) the Buyer Parties
        making the payments specified in Section 2.6(a)(i) and (ii); and (ii) the
        transfer of fifty percent (50%) or greater of Uranium One Utah’s interest in the
        Shootaring Canyon Mill in compliance with the procedures set forth in Section
        11.5.

      

      5.15 Nu
        Star.
        The
        Sellers shall use their respective reasonable efforts to enter into the amended
        and restated lease and option to lease agreements (“Nu
        Star Agreements”)
        pursuant to the provisions of that certain Letter Agreement (“Nu
        Star Letter Agreement”)
        by and
        between Nu Star Exploration LLC and New Plateau listed on Schedule
        3.8
        to this
        Agreement. The Buyer Parties shall cooperate with and direct the Sellers
        in
        negotiating and consummating the Nu Star Agreements, provided,
        however,
        that
        execution of the Nu Star Agreements and transfer of mining claims as provided
        in
        the Nu Star Letter Agreement to facilitate consummation of the Nu Star Agreement
        shall be subject to the Buyer Parties’ prior approval. Upon their execution, the
        Nu Star Agreements shall become subject to the terms and conditions of this
        Agreement and the Sellers and the Buyer Parties shall cause the appropriate
        Exhibits and Schedules to this Agreement to be modified to include the Nu
        Star
        Agreements as Acquired Assets and to delete such other agreements replaced
        by
        the Nu Star Agreements.

      

      VI.
        Agreements
        of Buyer Parties

      

      6.1 Conditions.
        

      

      (a) Subject
        to Section 7.3, Buyer Parties will use their reasonable efforts to cause
        the
        conditions set forth in Section 8.2 other than Section 8.2(a) to be satisfied
        and to consummate the transactions contemplated by this Agreement as soon
        as
        reasonably possible and in any event prior to the Closing Date.

      

      (b) Uranium
        One will cause the Buyers to comply with their obligations under this Agreement,
        and will guarantee such compliance.

      

      6.2 Listing.
        Uranium
        One will use its reasonable efforts to cause the shares of Purchase Price
        Shares
        to be approved for listing (subject to notice of issuance) on the Toronto
        Stock
        Exchange. If the Uranium One Common Shares become listed on a United States
        stock exchange, Uranium One will use reasonable efforts to secure the listing
        of
        the Purchase Price Shares on such exchange.

      

      6.3 Use
        of
        Sellers’ Names.
        As soon
        as practicable after the Closing Date but in no event later than 30 days
        after
        the Closing Date, Buyer Parties shall remove or cause to be removed the names,
        marks and identifications used by the Sellers and all variations and derivatives
        thereof and logos relating thereto from all of the Acquired Assets, to the
        extent they include the word “U.S. Energy”, “Crested”, “Plateau”, “USUL” or
“USE/CC”. At no time shall Buyer Parties utilize any of the foregoing names or
        any other tradename or trademark of the Sellers in connection with their
        ownership and operation of the Acquired Assets.

      

      6.4 Post-Closing
        Access.
        After
        the Closing Date, Buyer Parties will afford to Sellers, their accountants
        and
        counsel, during normal business hours, upon reasonable request,

      
        
          
          

        

        
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      reasonable
        access to the books and records of Buyer Parties pertaining to the Acquired
        Assets as to periods prior to the Closing Date.

      

      VII.
        Consents
        and Regulatory Filings

      

      7.1 Consents,
        Authorizations and Regulatory Filings.
        The
        parties agree that the following procedures will be used to obtain the Seller
        Required Consents, the approval of the Toronto Stock Exchange and all other
        Consents and Governmental authorizations necessary or reasonably desirable
        for
        the consummation of the transactions contemplated by this Agreement or that
        could, if not obtained, adversely affect the ownership and operation of the
        Acquired Assets (together with the Seller Required Consents and the approval
        of
        the Toronto Stock Exchange, the “Required
        Consents”):

      

      (a) Sellers
        and Buyer Parties will cooperate and will each use their reasonable efforts
        to
        obtain all Required Consents (i) as soon as reasonably practicable, and (ii)
        in
        the case of (A) the Toronto Stock Exchange acceptance of notice of the issuance
        and sale of the Purchase Price Shares to be delivered to the Sellers and
        conditional approval of the listing of the Purchase Price Shares, (B) the
        Seller
        Required Consents listed in the “Pre-Closing Consents” section of Schedule
        3.3(a),
        and (C)
        any consent which the parties have agreed is required to be listed in the
        “Pre-Closing Consents” section of Schedule
        3.3(a),
        but is
        not so listed (collectively, the “Pre-Closing
        Consents”),
        prior
        to the Closing Date.

      

      (b) Without
        limiting the foregoing, the parties agree to promptly provide joint voluntary
        notification of their intent to pursue the CFIUS in compliance with the
        requirements of Subpart D of 31 CFR 800 (the “Exon-Florio
        Filing”),
        and
        to cooperate in any review, presentation, request for information or
        investigation to be conducted by CFIUS in connection therewith. The termination
        of the review period (and any extension thereof) with respect to Exon-Florio
        Filing and the receipt of a favorable ruling in respect of the transactions
        contemplated by this Agreement shall be deemed a Pre-Closing
        Consent.

      

      (c) With
        respect to all reclamation bonds and guarantees given by Sellers in connection
        with the Acquired Assets, and as set forth on Schedule
        7.1(c)
        (the
“Scheduled
        Bonds”),
        each
        of the Buyer Parties shall use its reasonable efforts to cause the Buyer
        that is
        purchasing the property that is subject to the Scheduled Bond to be substituted
        in all respects for the applicable Sellers in respect of all obligations
        of such
        Sellers under such Scheduled Bond, and for such Sellers to be fully released
        and
        discharged with respect thereto. Buyer Parties shall, within 10 days following
        the Closing Date, cause such Buyers to submit to the appropriate Governmental
        Entity surety bonds in substitution for the Scheduled Bonds that will provide
        for coverage of the reclamation obligations of the Acquired Assets as required
        by applicable Law. From 30 days following the Closing Date until such time
        as
        Sellers are fully released from any and all Scheduled Bonds, such Buyers
        shall
        reimburse Sellers actual costs and expenses and indemnify, save, defend and
        hold
        harmless Sellers from all Losses in any way related to the Scheduled
        Bonds.

      

      (d) With
        respect to those Governmental Authorizations set forth on Schedule
        3.11(b)
        and not
        listed on Schedule
        7.1(a),
        Sellers
        and Buyer Parties shall use their respective reasonable efforts to obtain
        secure
        approval of transfer of all such Governmental Authorizations. Promptly

      
        
          
          

        

        
          35

          
            

          

        

        
          
          

        

      

      after
        the
        Closing Date, Sellers and Buyer Parties shall prepare, execute and submit
        requests for approval of transfer of such Governmental Authorizations to
        applicable Governmental Entities and shall take such further and reasonably
        necessary actions to cause such requests for approval to be affirmatively
        granted. In the event that any approval of transfer of a Governmental
        Authorization has not been obtained within 30 after the Closing Date, Sellers
        and Buyer Parties shall cooperate in commercially reasonable arrangements
        designed to provide Buyer Parties the benefits under such Governmental
        Authorizations until such time as such approval for transfer has been
        obtained.

      

      (e) Following
        the Closing, the Sellers shall, at the direction of the Buyers, use their
        respective reasonable efforts to secure the permits, grants and authorizations
        represented by the Post Closing Applications described on Schedule
        3.3(a)
        (“New
        Permits”).
        Promptly upon issuance of each New Permit, the Sellers shall cause such New
        Permit to be assigned and transferred to such Buyer Party as identified on
        Schedule
        3.3(a).
        The
        Buyers shall pay all costs incurred by the Sellers at the Buyers’ direction in
        complying with this paragraph, and shall cooperate with the Sellers to secure
        approval of the transfer of the New Permits to the Seller Parties, including
        posting of required sureties.

      

      7.2 Further
        Assurances.
        From
        time to time, each of the Buyer Parties and the Sellers will, at their own
        cost
        and expense, execute and deliver such further instruments and will take such
        other actions as the other parties may reasonably request in order to effectuate
        the purposes of this Agreement. Without limiting the generality of the
        foregoing, at any time and from time to time after the Closing Date at the
        request of the other parties, the parties will execute and deliver or cause
        to
        be executed and delivered such other instruments and take or cause to be
        taken
        such actions as any party may reasonably deem necessary in order to consummate
        the transactions contemplated by this Agreement, to evidence and effect the
        sale, delivery and transfer of the Acquired Assets to Buyers, to effectuate
        the
        assumption of the Assumed Liabilities, to secure the purposes and intent
        of this
        Agreement and to put Buyers in actual possession and control of the Acquired
        Assets.

      

      7.3 No
        Reorganization.
        No
        provision of this Agreement or any Ancillary Agreement shall be interpreted
        as
        requiring any Buyer Party or any of their Subsidiaries to dispose of, hold
        separately or make any material and adverse change in, any material portion
        of
        their respective businesses or assets (or the Acquired Assets) or incur any
        other substantial burden. If a Required Consent is made subject to or
        conditional upon any of the foregoing, the decision of whether to comply
        with
        such condition shall be made by the Buyer Parties, acting in their sole
        discretion.

      

      VIII.
        Conditions
        to Closing

      

      8.1 Conditions
        to Buyer Parties’ Obligations.
        The
        obligation of Buyer Parties to take the actions required to be taken by them
        at
        the Closing is subject to the satisfaction or waiver, in whole or in part,
        in
        Buyer Parties’ sole discretion (but no such waiver will waive any rights or
        remedy otherwise available to Buyer Parties), of each of the following
        conditions at or prior to the Closing:

      

      (a) The
        representations and warranties set forth in Article III that are not subject
        to
        materiality or Material Adverse Effect qualifications will be true and correct
        in 

      
        
          
          

        

        
          36

          
            

          

        

        
          
          

        

      

      all
        material respects at and as of the Closing Date as though then made and as
        though the Closing Date had been substituted for the date of this Agreement
        in
        such representations and warranties, and the representations and warranties
        set
        forth in Article III that are subject to materiality or Material Adverse
        Effect
        qualifications will be true and correct in all respects at and as of the
        Closing
        Date as though then made and as though the Closing Date had been substituted
        for
        the date of this Agreement in such representations and warranties (in each
        case,
        without taking into account the Closing Update and any other supplemental
        disclosures after the date of this Agreement by Sellers), except that any
        representation or warranty expressly made as of a specified date will only
        need
        to have been true on and as of such date;

      

      (b) Each
        Seller will have performed and complied with each of its agreements contained
        in
        this Agreement and the Ancillary Agreements to which such Seller is a party
        in
        all material respects;

      

      (c) UPC
        will
        have performed and complied with each of its agreements contained in the
        UPC
        Existing Agreements and the UPC Waiver in all material respects;

      

      (d) Each
        Pre-Closing Consent will have been obtained and be in full force and
        effect;

      

      (e) Sellers
        and Buyer Parties shall have entered into an agreement in a form reasonably
        satisfactory to the Buyer Parties, providing that (i) for a period of three
        years, the Sellers will make available to the Buyer Parties on request and
        without charge (other than a reasonable copying or shipping charge, for any
        materials that the Buyer Parties request be copied or shipped by the Sellers)
        a
        copy of all of the Sellers’ geologic information and data relating to properties
        located outside the Non-Compete Zone, and (ii) for a period of two years,
        the
        Sellers will not present to any third party the opportunity to fund or earn
        into
        any uranium property interest owned or acquired by the Sellers (but excluding
        Green River South) unless the Sellers have first given the Buyer Parties
        a
        period of 30 days to decide whether to take up the opportunity, provided
        that if
        the Buyer Parties do not accept the opportunity within 30 days, the Sellers
        will
        be free to offer it on similar or less advantageous terms to any other third
        party;

      

      (f) No
        Litigation is pending or threatened (i) challenging or seeking to prevent
        or
        delay consummation of any of the transactions contemplated by this Agreement,
        (ii) asserting the illegality of or seeking to render unenforceable any material
        provision of this Agreement or any of the Ancillary Agreements, (iii) seeking
        to
        prohibit direct or indirect ownership, combination or operation by any Buyer
        Party of any material portion of the Acquired Assets, or to compel any Buyer
        Party or any of their Subsidiaries to dispose of, or to hold separately,
        or to
        make any material and adverse change in any material portion of the business
        or
        assets of any Buyer Party or any of their Subsidiaries as a result of the
        transactions contemplated by this Agreement, or incur any other substantial
        burden, (iv) seeking to require direct or indirect transfer or sale by any
        Buyer
        Party of, or to impose material limitations on the ability of any Buyer Party
        to
        exercise full rights of ownership of, any material portion of the Acquired
        Assets or (v) imposing or seeking to impose material damages or sanctions
        directly arising out of the 

      
        
          
          

        

        
          37

          
            

          

        

        
          
          

        

      

      transactions
        contemplated by this Agreement on any Buyer Party or any of their officers
        or
        directors or with respect to any portion of the Acquired Assets;

      

      (g) No
        Law or
        Governmental Order would reasonably be expected to result, directly or
        indirectly, in any of the consequences referred to in Section
        8.1(e);

      

      (h) Buyer
        Parties will not have discovered any fact or circumstance existing as of
        the
        date of this Agreement not disclosed on the Disclosure Schedule that has
        had or
        would reasonably be expected to have a Material Adverse Effect;

      

      (i) After
        the
        date of this Agreement, no event has occurred that has had or would reasonably
        be expected to have a Material Adverse Effect;

      

      (j) The
        Sellers will have delivered each of the agreements, certificates, instruments
        and other documents that they are obligated to deliver pursuant to Section
        2.8(b)(i), and such agreements so delivered will be in full force and
        effect;

      

      (k) Neither
        the Sellers nor any of the Acquired Assets will have been materially adversely
        affected as a result of fire, explosion, disaster, accident, labor dispute,
        flood, act of war, terrorism, civil disturbance or act of nature;
        and

      

      (l) Buyer
        Parties will have received releases of all Encumbrances on the Acquired Assets
        other than Permitted Encumbrances; without limiting the foregoing, Buyer
        will
        have received releases of all Encumbrances listed on Schedule
        3.6(d)(ii)(B).

      

      8.2 Conditions
        to the Sellers’ Obligations.
        The
        obligation of the Sellers to take the actions required to be taken by them
        at
        the Closing is subject to the satisfaction or waiver, in whole or in part,
        in
        the Sellers’ sole discretion (but no such waiver will waive any right or remedy
        otherwise available under this Agreement), of each of the following conditions
        at or prior to the Closing:

      

      (a) The
        representations and warranties set forth in Article IV that are not subject
        to
        materiality qualifications will be true and correct in all material respects
        at
        and as of the Closing Date as though then made and as though the Closing
        Date
        had been substituted for the date of this Agreement in such representations
        and
        warranties, and the representations and warranties set forth in Article IV
        that
        are subject to materiality qualifications will be true and correct in all
        respects at and as of the Closing Date as though then made and as though
        the
        Closing Date had been substituted for the date of this Agreement in such
        representations and warranties (in each case, without taking into account
        any
        supplemental disclosures after the date of this Agreement by Buyer Parties),
        except that any representation or warranty expressly made as of a specified
        date
        will only need to have been true on and as of such date;

      

      (b) Each
        Buyer Party will have performed and complied with each of its agreements
        contained in this Agreement and the Ancillary Agreements to which such Buyer
        Party is a party in all material respects;

      
        
          
          

        

        
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      (c) The
        Toronto Stock Exchange will have accepted notice of the issuance and sale
        of the
        Purchase Price Shares to be delivered to the Sellers and the Purchase Price
        Shares will have been conditionally approved for listing, subject to the
        satisfaction of the conditions set out in the Toronto Stock Exchange conditional
        approval letter;

      

      (d) Each
        Pre-Closing Consent will have been obtained and be in full force and
        effect;

      

      (e) No
        Law or
        Governmental Order prohibits the Closing; and

      

      (f) Buyer
        Parties will have delivered each of the certificates, instruments and other
        documents that it is obligated to deliver pursuant to Section
        2.8(b)(ii).

      

      IX.
        Termination

      

      9.1 Termination.
        This
        Agreement may be terminated prior to the Closing:

      

      (a) by
        the
        mutual written consent of Buyer Parties and the Sellers;

      

      (b) by
        the
        Sellers, if

      

      (i) on
        the
        date of this Agreement or on any other date prior to the Closing, (i) any
        representation or warranty set forth in Article IV that is not subject to
        materiality or Material Adverse Effect qualifications is not, or has ceased
        to
        be, true and correct in all material respects as though then made and as
        though
        such date had been substituted for the date of this Agreement in such
        representation or warranty, or (ii) any representation or warranty set forth
        in
        Article IV that is subject to materiality or Material Adverse Effect
        qualifications will not be true and correct in all respects at and as of
        the
        Closing Date as though then made and as though the Closing Date had been
        substituted for the date of this Agreement in such representations and
        warranties (in each case, without taking into account any supplemental
        disclosures after the date of this Agreement by Buyers); provided,
        that
        any representation or warranty expressly made as of a specified date will
        only
        need to have been true on and as of such date;

      

      (ii) any
        Buyer
        Party has breached in any material respect any of its agreements contained
        in
        this Agreement or in any Ancillary Agreement to which any Buyer Party is
        a
        party;

      

      (iii) the
        transactions contemplated by this Agreement shall not have been consummated
        on
        or prior to (A) July 31, 2007, in the event that all of the Pre-Closing Consents
        shall have been obtained on or prior to the third Business Day prior to July
        31,
        2007; or (B) December 31, 2007, in the event that any of the Pre-Closing
        Consents shall not have been obtained on or prior to the third Business Day
        prior to July 31, 2007; provided,
        in each
        case, that the Sellers will not be entitled to terminate this Agreement pursuant
        to this Section 9.1(b)(i) if any Seller’s failure to comply fully with its
        obligations under this Agreement and the 

      
        
          
          

        

        
          39

          
            

          

        

        
          
          

        

      

      Ancillary
        Agreements to which it is a party has prevented the consummation of the
        transactions contemplated by this Agreement;

      

      (iv) a
        Law or
        Governmental Order prohibits the Closing;

      

      (v) any
        of
        the conditions set forth in Section 8.2 will have become impossible to satisfy,
        and has not been waived by the Sellers in writing; 

      

      (c) by
        Buyer
        Parties, if

      

      (i) on
        the
        date of this Agreement or on any other date prior to the Closing, (i) any
        representation or warranty set forth in Article III that is not subject to
        materiality or Material Adverse Effect qualifications is not, or has ceased
        to
        be, true and correct in all material respects as though then made and as
        though
        such date had been substituted for the date of this Agreement in such
        representation or warranty, or (ii) any representation or warranty set forth
        in
        Article III that is subject to materiality or Material Adverse Effect
        qualifications will not be true and correct in all respects at and as of
        the
        Closing Date as though then made and as though the Closing Date had been
        substituted for the date of this Agreement in such representations and
        warranties (in each case, without taking into account the Closing Update
        and any
        other supplemental disclosures after the date of this Agreement by Sellers);
        provided,
        that
        any representation or warranty expressly made as of a specified date will
        only
        need to have been true on and as of such date;

      

      (ii) any
        Seller has breached in any material respect any of its agreements contained
        in
        this Agreement or in any Ancillary Agreement to which any Seller is a
        party;

      

      (iii) the
        transactions contemplated by this Agreement shall not have been consummated
        on
        or prior to (A) July 31, 2007, in the event that all of the Pre-Closing Consents
        shall have been obtained on or prior to the third Business Day prior to July
        31,
        2007; or (B) December 31, 2007, in the event that any of the Pre-Closing
        Consents shall not have been obtained on or prior to the third Business Day
        prior to July 31, 2007; provided,
        in each
        case, that Buyer Parties will not be entitled to terminate this Agreement
        pursuant to this Section 9.1(c)(ii) if any Buyer Party’s failure to comply fully
        with its obligations under this Agreement or any Ancillary Agreement to which
        it
        is a party has prevented the consummation of the transactions contemplated
        by
        this Agreement;

      

      (iv) a
        Law or
        Governmental Order would reasonably be expected to result directly or
        indirectly, in any of the consequences referred to in Section
        8.1(e);

      

      (v) Buyer
        Parties have discovered any fact or circumstance existing as of the date
        of this
        Agreement that has not been previously disclosed on the Disclosure Schedule
        that
        has had or would reasonably be expected to have a Material Adverse
        Effect;

      
        
          
          

        

        
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      (vi) after
        the
        date of this Agreement, an event has occurred that has had or would reasonably
        be expected to have a Material Adverse Event;

      

      (vii) any
        Seller or any of the Acquired Assets will have been materially adversely
        affected as a result of fire, explosion, disaster, accident, labor dispute,
        flood, act of war, terrorism, civil disturbance or act of nature;

      

      (viii) UPC
        has
        breached any representation, warranty or agreement contained in the UPC Existing
        Agreements or the UPC Waiver in any material respect; or

      

      (ix) any
        of
        the conditions set forth in Section 8.1 will have become impossible to
        satisfy.

      

      9.2 Effect
        of Termination.
        The
        right of termination under Section 9.1 is in addition to any other rights
        the
        Buyer Parties or the Sellers may have under this Agreement or otherwise,
        and the
        exercise of a right of termination will not be an election of remedies and
        will
        not preclude an action for breach of this Agreement. If this Agreement is
        terminated, all continuing obligations of the parties under this Agreement
        will
        terminate except that Article X and the Confidentiality Agreement will survive
        indefinitely unless sooner terminated or modified by the parties in
        writing.

      

      X.
        Indemnification

      

      10.1 Indemnification
        by the Sellers.

      

      (a) The
        Sellers will jointly and severally indemnify in full the Buyer Parties and
        hold
        them harmless against any Loss, whether or not actually incurred prior to
        the
        applicable date referred to in Section 10.1(d), arising from, relating to
        or
        constituting: (i) any breach or inaccuracy in any of the representations
        and
        warranties of the Sellers contained in this Agreement or in the Disclosure
        Schedule, or in the Closing Update or any closing certificate delivered by
        or on
        behalf of the Sellers pursuant to this Agreement (any such breach or inaccuracy
        to be determined without regard to any qualification for “materiality,” “in all
        material respects” or similar qualification); (ii) any liability of the Sellers
        for Taxes incurred on or prior to the Closing Date; (iii) failure of the
        Sellers
        to pay and discharge the obligations of the Sellers not explicitly assumed
        by
        Buyers pursuant to this Agreement, including the Retained Liabilities; (iv)
        any
        breach of any of the agreements of the Sellers contained in this Agreement;
        (v)
        any claim made by a securityholder or creditor of USUL; and (iv) the application
        to any Seller of any bankruptcy, insolvency, reorganization, moratorium or
        other
        Law affecting the enforcement of creditors’ rights (collectively, “Buyer
        Losses”).

      

      (b) The
        Sellers will indemnify Buyer Parties for Buyer Losses (i) resulting from
        breaches or inaccuracies of Sections 3.5 through 3.17 and (ii) pursuant to
        Section 10.1(a)(ii) only if the aggregate amount of all Buyer Losses
        attributable to clauses (i) and (ii) exceeds $250,000 (the “Basket
        Amount”),
        in
        which case the Sellers will be liable for the aggregate amount of all Buyer
        Losses in excess of the Basket Amount.

      
        
          
          

        

        
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      (c) The
        Sellers’ liability will not exceed the Indemnification Limit for Buyer Losses
        (i) resulting from breaches or inaccuracies of Sections 3.5 through 3.17,
        and
        (ii) pursuant to Section 10.1(a)(ii).

      

      (d) If
        Buyer
        Parties have a claim for indemnification under this Section 10.1, Buyer Parties
        will deliver to USE, as agent for the Sellers, one or more written notices
        of
        Buyer Losses (each a “Buyer
        Claim”),
        within 18 months after the Closing Date, except for Buyer Losses arising
        from
        (i) a breach or inaccuracy in the representations and warranties made in
        Section
        3.7, (ii) any breach of any of the agreements by the Sellers made in Articles
        II, V, VI, VII, X or XI of this Agreement, (iii) failure of the Sellers to
        pay
        and discharge the obligations of the Sellers not explicitly assumed by Buyers
        pursuant to this Agreement, including the Retained Liabilities; (iv) any
        claim
        made by a securityholder or creditor of USUL; and (v) the application to
        any
        Seller of any bankruptcy, insolvency, reorganization, moratorium or other
        Law
        affecting the enforcement of creditors’ rights, for which Buyer Parties will
        deliver a Buyer Claim prior to six months after the expiration of the applicable
        statute of limitations. The Sellers will have no liability under this Section
        10.1 unless the written notices required by the preceding sentence are given
        by
        the date specified. Any Buyer Claim will state in reasonable detail the basis
        for such Buyer Losses to the extent then known by Buyer and the nature of
        the
        Buyer Loss for which indemnification is sought, and it may state the amount
        of
        the Buyer Loss claimed. If such Buyer Claim (or an amended Buyer Claim) states
        the amount of the Buyer Loss claimed and the Sellers notify Buyer Parties
        that
        the Sellers do not dispute the claim described in such notice or fail to
        notify
        Buyer Parties within 20 Business Days after delivery of such notice by Buyer
        Parties whether the Sellers dispute the claim described in such notice, the
        Buyer Loss in the amount specified in Buyer Parties’ notice will be admitted by
        the Sellers, and the Sellers will pay the amount of such Buyer Loss to Buyer
        Parties. If the Sellers have timely disputed the liability of the Sellers
        with
        respect to a Buyer Claim (or an amended Buyer Claim) stating the amount of
        a
        Buyer Loss claimed, the Sellers and Buyer Parties will proceed in good faith
        to
        negotiate a resolution of such dispute. If a claim for indemnification has
        not
        been resolved within 30 days after delivery of the Sellers’ notice, Buyer
        Parties may seek judicial recourse. If a Buyer Claim does not state the amount
        of the Buyer Loss claimed, such omission will not preclude Buyer Parties
        from
        recovering from the Sellers the amount of the Buyer Loss described in such
        Buyer
        Claim if any such amount is subsequently provided in an amended Buyer Claim.
        In
        order to assert its right to indemnification under this Article X, Buyer
        Parties
        will not be required to provide any notice except as provided in this Section
        10.1(d).

      

      (e) The
        Sellers will pay the amount of any Buyer Loss to Buyer Parties within 10
        days
        following the determination of the Sellers’ liability for and the amount of a
        Buyer Loss (whether such determination is made pursuant to the procedures
        set
        forth in this Section 10.1(e), by agreement between Buyer Parties and the
        Sellers, by arbitration award or by final adjudication).

      (f) If
        the
        Sellers breach their obligations in Section 10.1(e), Buyer Parties may elect
        to
        recoup all or any part of the unpaid amount of the Buyer Loss by offsetting
        the
        amount of any payment required to be made pursuant to Section 2.6 or the
        Royalty
        Agreement and by notifying USE, as agent for the Sellers, of such
        election.

      

      10.2 Indemnification
        by Buyer Parties.

      
        
          
          

        

        
          42

          
            

          

        

        
          
          

        

      

      (a) Buyer
        Parties will jointly and severally indemnify in full the Sellers and hold
        them
        harmless against any Loss, whether or not actually incurred prior to the
        date
        referred to in Section 10.2(d), arising from, relating to or constituting
        (i)
        any breach or inaccuracy in any of the representations and warranties of
        Buyer
        Parties contained in this Agreement or in any certificate delivered by or
        on
        behalf of Buyer Parties pursuant to this Agreement (any such breach or
        inaccuracy to be determined without regard to any qualification as to
“materiality,” “in all material respects” or similar qualification), (ii) any
        breach of any of the agreements of Buyer Parties contained in this Agreement,
        (iii) the failure of Buyer Parties to assume, pay and discharge the Assumed
        Liabilities and (iv) any Liability resulting exclusively from the ownership
        or
        use of the Acquired Assets after Closing (“Seller
        Losses”).

      

      (b) Buyer
        Parties will indemnify the Sellers for the Seller Losses pursuant to Section
        10.2(a)(i) only if the aggregate amount of all the Seller Losses attributable
        to
        Section 10.2(a)(i) exceeds $250,000 (the “Seller
        Basket Amount”),
        in
        which case Buyer Parties will be liable for the aggregate amount of the Seller
        Losses in excess of the Seller Basket Amount.

      

      (c) Buyer’s
        liability shall not exceed the Indemnification Limit for the Seller Losses
        resulting from breach of Section 10.2(a)(i).

      

      (d) If
        the
        Sellers have a claim for indemnification under this Section 10.2, the Sellers
        will deliver to Uranium One, as agent for the Buyer Parties, one or more
        written
        notices of the Seller Losses within 18 months after the Closing Date, except
        for
        Seller Losses arising from any breach of the agreements by the Buyer Parties
        made in Articles II, V, VI, VII, X or XI of this Agreement, for which Sellers
        will deliver the notice required by this sentence prior to six months after
        the
        expiration of the applicable statute of limitations. Buyer Parties will have
        no
        liability under this Section 10.2 unless the written notices required by
        the
        preceding sentence are given by the second anniversary of the Closing Date.
        Any
        written notice will state in reasonable detail the basis for the Seller Losses
        to the extent then known by the Sellers and the nature of the Seller Loss
        for
        which indemnification is sought, and it may state the amount of the Seller
        Loss
        claimed. If such written notice (or an amended notice) states the amount
        of the
        Seller Loss claimed and Buyer Parties notify the Sellers that Buyer Parties
        do
        not dispute the claim described in such notice or fail to notify the Sellers
        within 20 Business Days after delivery of such notice by the Sellers whether
        Buyer Parties dispute the claim described in such notice, the Seller Loss
        in the
        amount specified in the Sellers’ notice will be admitted by Buyer Parties, and
        Buyer Parties will pay the amount of the Seller Loss to the Sellers. If Buyer
        Parties have timely disputed their liability with respect to such claim,
        Buyer
        Parties and the Sellers will proceed in good faith to negotiate a resolution
        of
        such dispute. If a claim for indemnification has not been resolved within
        30
        days after delivery of Buyer Parties’ notice, the Sellers may seek judicial
        recourse. If a written notice does not state the amount of the Seller Loss
        claimed, such omission will not preclude the Sellers from recovering from
        Buyer
        Parties the amount of the Seller Loss with respect to the claim described
        in
        such notice if any such amount is promptly provided once determined. In order
        to
        assert its right to indemnification under this Article X, the Sellers will
        not
        be required to provide any notice except as provided in this Section
        10.2(d).

      

      (e) Buyer
        Parties will pay the amount of any Seller Loss to the Sellers within 10 days
        following the determination of Buyer Parties’ liability for and the amount of
        the Seller Loss 

      
        
          
          

        

        
          43

          
            

          

        

        
          
          

        

      

      (whether
        such determination is made pursuant to the procedures set forth in this Section
        10.2, by agreement between the Sellers and Buyer Parties, by arbitration
        award
        or by final adjudication).

      

      10.3 Third-Party
        Actions Against Buyer Parties.

      

      (a) Sellers
        will jointly and severally indemnify, defend and hold harmless the Buyer
        Parties
        and their Subsidiaries, and their respective officers, directors, employees,
        agents, shareholders and Affiliates (collectively, the “Buyer
        Indemnified Parties”)
        against any Loss (i) for which Sellers have agreed to indemnify Buyer Parties
        pursuant to Section 10.1(a) or (ii) arising out of the actions or inactions
        of
        Sellers after the Closing, in each case arising from any Litigation instituted
        by any third party (any such third party action or proceeding being referred
        to
        as a “Buyer
        Third-Party Action”).
        A
        Buyer Indemnified Party will give USE, as agent for the Sellers, prompt written
        notice of the commencement of a Buyer Third-Party Action. The complaint or
        other
        papers pursuant to which the third party commenced such Buyer Third-Party
        Action
        will be attached to such written notice. The failure to give prompt written
        notice will not affect any Buyer Indemnified Party’s right to indemnification
        unless such failure has materially and adversely affected Sellers’ ability to
        defend successfully such Buyer Third-Party Action.

      

      (b) Sellers
        will contest and defend such Buyer Third-Party Action on behalf of any Buyer
        Indemnified Party that requests that they do so. Notice of the intention
        to so
        contest and defend will be given by Sellers to the requesting Buyer Indemnified
        Party within 20 Business Days after the Buyer Indemnified Party’s notice of such
        Buyer Third-Party Action (but, in all events, at least five Business Days
        prior
        to the date that a response to such Buyer Third-Party Action is due to be
        filed). Such contest and defense will be conducted by reputable attorneys
        retained by Sellers. A Buyer Indemnified Party will be entitled at any time,
        at
        its own cost and expense, to participate in such contest and defense and
        to be
        represented by attorneys of its own choosing. If the Buyer Indemnified Party
        elects to participate in such defense, the Buyer Indemnified Party will
        cooperate with Sellers in the conduct of such defense. A Buyer Indemnified
        Party
        will cooperate with Sellers to the extent reasonably requested by Sellers
        in the
        contest and defense of such Buyer Third-Party Action, including providing
        reasonable access (upon reasonable notice) to the books, records and employees
        of the Buyer Indemnified Party if relevant to the defense of such Buyer
        Third-Party Action; provided,
        that
        such cooperation will not unduly disrupt the operations of the business of
        the
        Buyer Indemnified Party or cause the Buyer Indemnified Party to waive any
        statutory or common law privileges, breach any confidentiality obligations
        owed
        to third parties or otherwise cause any confidential information of such
        Buyer
        Indemnified Party to become public.

      

      (c) If
        any
        Buyer Indemnified Party does not request that Sellers contest and defend
        a Buyer
        Third-Party Action, or if after such request Sellers do not contest and defend
        a
        Buyer Third-Party Action or if any Buyer Indemnified Party reasonably determines
        that Sellers are not adequately representing or, because of a conflict of
        interest, may not adequately represent any interests of the Buyer Indemnified
        Party at any time after requesting Sellers to do so, such Buyer Indemnified
        Party will be entitled to conduct its own defense and to be represented by
        attorneys of its own choosing, all at Sellers’ cost and expense. Sellers will
        pay as incurred (no later than 25 days after presentation) the fees and expenses
        of the counsel retained by such Buyer Indemnified Party pursuant to this
        Section
        10.3(c).

      
        
          
          

        

        
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      (d) Neither
        a
        Buyer Indemnified Party nor Sellers may concede, settle or compromise any
        Buyer
        Third-Party Action without the consent of the other party, which consents
        will
        not be unreasonably withheld or delayed. Notwithstanding the foregoing, (i)
        if a
        Buyer Third-Party Action seeks the issuance of an injunction, the specific
        election of an obligation or similar remedy or (ii) if the subject matter
        of a
        Buyer Third-Party Action relates to the ongoing business of any Buyer
        Indemnified Party, which Buyer Third-Party Action, if decided against any
        Buyer
        Indemnified Party, would materially adversely affect the ongoing business
        or
        reputation of any Buyer Indemnified Party, the Buyer Indemnified Party alone
        will be entitled to settle such Buyer Third-Party Action in the first instance
        and, if the Buyer Indemnified Party does not settle such Buyer Third-Party
        Action, Sellers will then have the right to contest and defend (but not settle)
        such Buyer Third-Party Action.

      

      10.4 Third-Party
        Actions Against Sellers.

      

      (a) Buyer
        Parties will, jointly and severally, indemnify, defend and hold harmless
        the
        Sellers and their Subsidiaries, and their respective officers, directors,
        employees, agents, shareholders and Affiliates (collectively, the “Seller
        Indemnified Parties”)
        against any Loss (i) for which Buyer Parties have agreed to indemnify Sellers
        pursuant to Section 10.2(a) or (ii) arising out of the actions or inactions
        of
        the Buyer Parties after the Closing, in each case arising from any Litigation
        instituted by any third party (any such third party action or proceeding
        being
        referred to as a “Seller
        Third-Party Action”).
        A
        Seller Indemnified Party will give Uranium One, as agent for the Buyer Parties,
        prompt written notice of the commencement of a Seller Third-Party Action.
        The
        complaint or other papers pursuant to which the third party commenced such
        Seller Third-Party Action will be attached to such written notice. The failure
        to give prompt written notice will not affect any Seller Indemnified Party’s
        right to indemnification unless such failure has materially and adversely
        affected Buyer Parties’ ability to defend successfully such Seller Third-Party
        Action.

      

      (b) Buyer
        Parties will contest and defend such Seller Third-Party Action on behalf
        of any
        Seller Indemnified Party that requests that they do so. Notice of the intention
        to so contest and defend will be given by Buyer Parties to the requesting
        Seller
        Indemnified Party within 20 Business Days after the Seller Indemnified Party’s
        notice of such Seller Third-Party Action (but, in all events, at least five
        Business Days prior to the date that a response to such Seller Third-Party
        Action is due to be filed). Such contest and defense will be conducted by
        reputable attorneys retained by the Buyer Parties. A Seller Indemnified Party
        will be entitled at any time, at its own cost and expense, to participate
        in
        such contest and defense and to be represented by attorneys of its own choosing.
        If the Seller Indemnified Party elects to participate in such defense, the
        Seller Indemnified Party will cooperate with the Buyer Parties in the conduct
        of
        such defense. A Seller Indemnified Party will cooperate with the Buyer Parties
        to the extent reasonably requested by the Buyer Parties in the contest and
        defense of such Seller Third-Party Action, including providing reasonable
        access
        (upon reasonable notice) to the books, records and employees of the Seller
        Indemnified Party if relevant to the defense of such Seller Third-Party Action;
        provided,
        that
        such cooperation will not unduly disrupt the operations of the business of
        the
        Seller Indemnified Party or cause the Seller Indemnified Party to waive any
        statutory or common law privileges, breach any confidentiality obligations
        owed
        to third parties or otherwise cause any confidential information of such
        Seller
        Indemnified Party to become public.

      
        
          
          

        

        
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      (c) If
        any
        Seller Indemnified Party does not request that Buyer Parties contest and
        defend
        a Seller Third-Party Action, or if after such request Buyer Parties do not
        contest and defend a Seller Third-Party Action or if any Seller Indemnified
        Party reasonably determines that Buyer Parties are not adequately representing
        or, because of a conflict of interest, may not adequately represent any
        interests of the Seller Indemnified Party at any time after requesting Buyer
        Parties to do so, such Seller Indemnified Party will be entitled to conduct
        its
        own defense and to be represented by attorneys of its own choosing, all at
        Buyer
        Parties’ cost and expense. Buyer Parties will pay as incurred (no later than 25
        days after presentation) the fees and expenses of the counsel retained by
        such
        Seller Indemnified Party pursuant to this Section 10.4(c).

      

      (d) Neither
        a
        Seller Indemnified Party nor Buyer Parties may concede, settle or compromise
        any
        Seller Third-Party Action without the consent of the other party, which consents
        will not be unreasonably withheld or delayed. Notwithstanding the foregoing,
        (i)
        if a Seller Third-Party Action seeks the issuance of an injunction, the specific
        election of an obligation or similar remedy or (ii) if the subject matter
        of a
        Seller Third-Party Action relates to the ongoing business of any Seller
        Indemnified Party, which Seller Third-Party Action, if decided against any
        Seller Indemnified Party, would materially adversely affect the ongoing business
        or reputation of any Seller Indemnified Party, the Seller Indemnified Party
        alone will be entitled to settle such Seller Third-Party Action in the first
        instance and, if the Seller Indemnified Party does not settle such Seller
        Third-Party Action, Buyer Parties will then have the right to contest and
        defend
        (but not settle) such Seller Third-Party Action.

      

      10.5 Sole
        and Exclusive Remedy.
        Prior
        to or in connection with the Closing, the parties will have available to
        them
        all remedies available at law or in equity, including specific performance
        or
        other equitable remedies. After the Closing, the rights set forth in Sections
        10.1, 10.2 and, to the extent applicable, 10.3 and 10.4, will be the exclusive
        remedy for breach or inaccuracy of any of the representations and warranties
        contained in Article III and IV of this Agreement and will be in lieu of
        contract remedies, but the parties otherwise will have available to them
        all
        other remedies available at law or in equity. Notwithstanding the foregoing,
        nothing in this Agreement will prevent any party from bringing an action
        based
        upon fraud or willful misconduct by the other party in connection with this
        Agreement. In the event such action is brought, the prevailing party’s
        attorneys’ fees and costs will be paid by the nonprevailing party.

      

      10.6 Tax
        Adjustment.
        Any
        payment under this Article X will be, for Tax purposes, to the extent permitted
        by Law, an adjustment to the Purchase Price. In calculating any Loss, the
        amount
        will be increased to give effect to any Tax related to the receipt of any
        payment and the amount will be decreased to give effect to any benefit related
        to the increase of such Loss to the extent actually received by Buyer
        Parties.

      

      10.7 Indemnification
        in Case of Strict Liability or Indemnitee Negligence.
        THE
        INDEMNIFICATION PROVISIONS IN THIS ARTICLE X WILL BE ENFORCEABLE REGARDLESS
        OF
        WHETHER THE LIABILITY IS BASED UPON PAST, PRESENT OR FUTURE ACTS, CLAIMS
        OR
        LEGAL REQUIREMENTS (INCLUDING ANY PAST, PRESENT OR FUTURE BULK SALES LAW,
        ENVIRONMENTAL LAW, FRAUDULENT TRANSFER ACT, OCCUPATIONAL SAFETY AND HEALTH
        LAW
        OR PRODUCTS LIABILITY, SECURITIES OR OTHER LEGAL REQUIREMENT) AND REGARDLESS
        OF
        WHETHER ANY PERSON (INCLUDING THE PERSON 

      
        
          
          

        

        
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      FROM
        WHOM INDEMNIFICATION IS SOUGHT) ALLEGES OR PROVES THE SOLE, CONCURRENT,
        CONTRIBUTORY OR COMPARATIVE NEGLIGENCE OF THE PERSON SEEKING INDEMNIFICATION
        OR
        THE SOLE OR CONCURRENT STRICT LIABILITY IMPOSED UPON THE PERSON SEEKING
        INDEMNIFICATION.

      

      XI.
        General

      

      11.1 Press
        Releases and Announcements.
        Each
        party may upon execution of this Agreement issue a news release disclosing
        this
        Agreement and the subject matter hereof. Any party intending to issue such
        release shall first provide the other parties with a reasonable opportunity
        to
        review and comment thereon prior to the issuance thereof. Each party will
        provide the other parties with a reasonable opportunity to review and comment
        on
        all subsequent public announcements, news releases or other disclosure by
        such
        party relating to this Agreement or the subject matter hereof prior to the
        issuance thereof except where the disclosing party, in its reasonable opinion,
        believes that such public announcement, news release or other disclosure
        is
        required by law and such advance disclosure to the other party would not
        be
        practicable. 

      

      (b) Any
        other
        announcements to lessors, suppliers, contractors and others having dealings
        with
        the Sellers with respect to any of the Acquired Assets, or similar publicity,
        with respect to this Agreement or the transactions contemplated by this
        Agreement, will be issued, if at all, at such time and in such manner as
        Buyer
        Parties determine and approve.

      

      11.2 Expenses.
        Except
        as otherwise expressly provided for in this Agreement, each party will pay
        all
        expenses incurred by it in connection with the transactions contemplated
        by this
        Agreement, including legal, accounting, investment banking and consulting
        fees
        and expenses incurred in negotiating, executing and delivering this Agreement
        and the other agreements, exhibits, documents and instruments contemplated
        by
        this Agreement (whether the transactions contemplated by this Agreement are
        consummated or not).

      

      11.3 Amendment
        and Waiver.
        This
        Agreement may not be amended, a provision of this Agreement or any default,
        misrepresentation or breach of warranty or agreement under this Agreement
        may
        not be waived, and a consent may not be rendered, except in a writing executed
        by the party against which such action is sought to be enforced. Neither
        the
        failure nor any delay by any Person in exercising any right, power or privilege
        under this Agreement will operate as a waiver of such right, power or privilege,
        and no single or partial exercise of any such right, power or privilege will
        preclude any other or further exercise of such right, power or privilege
        or the
        exercise of any other right, power or privilege. In addition, no course of
        dealing between or among any Persons having any interest in this Agreement
        will
        be deemed effective to modify or amend any part of this Agreement or any
        rights
        or obligations of any Person under or by reason of this Agreement. The rights
        and remedies of the parties to this Agreement are cumulative and not
        alternative.

      

      11.4 Notices.
        All
        notices, demands and other communications to be given or delivered under
        or by
        reason of the provisions of this Agreement will be in writing and will be
        deemed
        to have been given (i) when delivered if personally delivered by hand (with
        written confirmation of receipt), (ii) when received if sent by a nationally
        recognized overnight courier service (receipt 

      
        
          
          

        

        
          47

          
            

          

        

        
          
          

        

      

      requested),
        (iii) five Business Days after being mailed, if sent by first class mail,
        return
        receipt requested, or (iv) when receipt is acknowledged by an affirmative
        act of
        the party receiving notice, if sent by facsimile, telecopy or other electronic
        transmission device (provided that such an acknowledgement does not include
        an
        acknowledgment generated automatically by a facsimile or telecopy machine
        or
        other electronic transmission device). Notices, demands and communications
        to
        any Buyer Party or to any Seller will, unless another address is specified
        in
        writing, be sent to the address indicated below:

      

      If
        to any
        Buyer Party:

      

      sxr
        Uranium One Inc. 

      Suite
        1610 - 390 Bay Street

      Toronto,
        Ontario M5H 2Y2

      Canada

      Attn:
        Jennifer Smith

      Facsimile
        No. (416) 363-6806

      

      With
        a
        copy to:

      

      Dorsey
        & Whitney LLP

      1420
        Fifth Avenue, Suite 3400

      Seattle,
        Washington

      USA
        98101

      Attn:
        Christopher Doerksen

      Facsimile
        No. (206) 903-8820

      

      And
        with
        a copy to:

      

      Davis
        & Company LLP

      Suite
        2800 Park Place

      666
        Burrard Street

      Vancouver,
        British Columbia

      Canada
        V6C 2Z7

      Attn:
        Lloyd H. Hong

      Facsimile
        No. (604) 605-3727

      

      If
        to any
        Seller:

      

      U.S.
        Energy Corp.

      877
        N.
        8th
        W.

      Riverton,
        Wyoming

      USA
        82501

      Attn:
        Mark J. Larsen

      Facsimile
        No. (307) 857-3050

      
        
          
          

        

        
          48

          
            

          

        

        
          
          

        

      

      With
        a
        copy to:

      

      U.S.
        Energy Corp.

      877
        N.
        8th
        W.

      Riverton,
        Wyoming

      USA
        82501

      Attn:
        Steven R. Youngbauer

      Facsimile
        No. (307) 857-3234

      

      And
        with
        a copy to:

      

      Davis
        Graham & Stubbs LLP

      1550
        Seventeenth Street, Suite 500

      Denver,
        Colorado

      USA
        80202

      Attn:
        Scot W. Anderson

      Facsimile
        No. (303) 893-1379

      

      11.5 Assignment.
        

      

      (a) Neither
        this Agreement nor any of the rights, interests or obligations under this
        Agreement may be assigned by any of the Buyer Parties, on the one hand, or
        any
        of the Sellers, on the other hand, without the prior written consent of the
        Sellers or the Buyer Parties, respectively, except that (i) any Buyer Party
        may
        assign any of its rights under this Agreement to one or more Subsidiaries
        of
        Uranium One, so long as the transferring Buyer Party remains responsible
        for the
        performance of all of its obligations under this Agreement; and (ii) after
        the
        Closing, any Buyer Party may assign any of its rights and any of its obligations
        under this Agreement, other than the guarantee of Uranium One with respect
        to
        Uranium One Utah’s obligations under Section 2.6 of this Agreement and the
        Royalty Agreement (the “Payment
        Guarantee”),
        to
        any other Person without the consent of the Sellers.

      

      (b) In
        addition, after the Closing, Uranium One may assign the Payment Guarantee
        upon
        transfer of fifty percent (50%) or greater of Uranium One Utah’s interest in the
        Shootaring Canyon Mill to any Person (a “Transferee”);
        provided, however, that if Uranium One intends to assign the Payment Guarantee
        prior to making the payments specified in Section 2.6(a)(i) and
        (ii),

      

      (i) the
        assignment of the Payment Guarantee shall be conditioned upon Uranium One
        Utah
        and the Transferee executing and delivering to USE an assignment and assumption
        agreement substantially in the form attached hereto in Exhibit
        J
        and the
        Transferee executing and delivering to USE a security agreement and lien
        and a
        deed of trust, in each case, substantially in the form attached hereto in
        Exhibit
        J,
        and
        until the foregoing procedures have been complied with, Uranium One’s assignment
        of the Payment Guarantee shall be ineffective although the transfer of the
        underlying assets and obligations shall be effective; and

      

      
        
          
          

        

        
          49

          
            

          

        

        
          
          

        

      

      (ii) if
        Uranium One Utah transfers fifty percent (50%) or greater, but less than
        one
        hundred percent (100%), of its interest in the Shootaring Canyon Mill to
        the
        Transferee (the percentage interest being transferred to the Transferee being
        referred to herein as the “Applicable
        Percentage”),
        Uranium One may not assign to the Transferee more than the Applicable Percentage
        of the Payment Guarantee.

      

      (c) USE
        agrees that it will cooperate fully with the Buyer Parties and the Transferee
        in
        completing the documentation set forth in Section 11.5(b) as soon as reasonably
        practicable. Subject to the foregoing, this Agreement and all of the provisions
        of this Agreement will be binding upon and inure to the benefit of the parties
        to this Agreement and their respective successors and permitted assigns.
        The
        Sellers acknowledge and agree that a change of control of a Buyer Party shall
        not be deemed a transfer or assignment for purposes of this Agreement and
        the
        Royalty Agreement as long as either (i) the change of control does not result
        in
        Uranium One having a new ultimate parent, or (ii) the Payment Guarantee is
        assigned to and ratified by the new ultimate parent of Uranium One. The Sellers
        agree that upon any assignment of all or any part of Uranium One’s guarantee
        made in compliance with this Section 11.5, Uranium One shall be released
        from
        its obligations under such guarantee to the same extent that such guarantee
        was
        assigned.

      

      11.6 No
        Third-Party Beneficiaries.
        Nothing
        expressed or referred to in this Agreement confers any rights or remedies
        upon
        any Person that is not a party or permitted assign of a party to this
        Agreement.

      

      11.7 No
        Partnership and No Corporate Opportunity.
        Nothing
        in this Agreement creates, or is intended to create, any partnership, joint
        venture relationship, fiduciary relationship or relationship of confidence
        and
        trust between or among the parties. The doctrines of corporate opportunity
        or
        business opportunity that sometimes apply to persons engaged in a joint venture
        or having a fiduciary relationship or a relationship of confidence and trust
        shall not apply in the case of any of the parties to this
        Agreement.

      

      11.8 Severability.
        Whenever possible, each provision of this Agreement will be interpreted in
        such
        manner as to be effective and valid under applicable Law, but if any provision
        of this Agreement is held to be prohibited by or invalid under applicable
        Law,
        such provision will be ineffective only to the extent of such prohibition
        or
        invalidity, without invalidating the remainder of such provision or the
        remaining provisions of this Agreement.

      

      11.9 Complete
        Agreement.
        This
        Agreement, the Confidentiality Agreement and, when executed and delivered,
        the
        Ancillary Agreements, contain the complete agreement between the parties
        and
        supersede any prior understandings, agreements or representations by or between
        the parties, written or oral. Without limiting the foregoing, the Exclusivity
        Agreement and the Term Sheet between the parties is hereby
        terminated.

      

      11.10 Schedules.
        In the
        event of any inconsistency between the statements in this Agreement and
        statements in the Disclosure Schedule, the statements in this Agreement will
        control and the statements in the Disclosure Schedule will be
        disregarded.

      

      
        
          
          

        

        
          50

          
            

          

        

        
          
          

        

      

      11.11 Signatures;
        Counterparts.
        This
        Agreement may be executed in one or more counterparts, any one of which need
        not
        contain the signatures of more than one party, but all such counterparts
        taken
        together will constitute one and the same instrument. A facsimile signature
        will
        be considered an original signature.

      

      11.12 Governing
        Law.
        THE
        DOMESTIC LAW, WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES, OF THE STATE
        OF
        COLORADO WILL GOVERN ALL QUESTIONS CONCERNING THE CONSTRUCTION, VALIDITY
        AND
        INTERPRETATION OF THIS AGREEMENT AND THE PERFORMANCE OF THE OBLIGATIONS IMPOSED
        BY THIS AGREEMENT.

      

      11.13 Specific
        Performance.
        Each of
        the parties acknowledges and agrees that the subject matter of this Agreement,
        including the business, assets and properties of each Seller, is unique,
        that
        the other parties would be damaged irreparably in the event any of the
        provisions of this Agreement are not performed in accordance with their specific
        terms or otherwise are breached, and that the remedies at law would not be
        adequate to compensate such other parties not in default or in breach.
        Accordingly, each of the parties agrees that the other parties will be entitled
        to an injunction or injunctions to prevent breaches of the provisions of
        this
        Agreement and to enforce specifically this Agreement and the terms and
        provisions of this Agreement in addition to any other remedy to which they
        may
        be entitled, at law or in equity (without any requirement that Buyer provide
        any
        bond or other security). The parties waive any defense that a remedy at law
        is
        adequate and any requirement to post bond or provide similar security in
        connection with actions instituted for injunctive relief or specific performance
        of this Agreement.

      

      11.14 Jurisdiction.
        Subject
        to the procedures specified in Article X, each of the parties submits to
        the
        exclusive jurisdiction of any state or federal court sitting in the City
        and
        County Denver, Colorado, in any action or proceeding arising out of or relating
        to this Agreement and agrees that all claims in respect of the action or
        proceeding may be heard and determined in any such court. Each party also
        agrees
        not to bring any action or proceeding arising out of or relating to this
        Agreement in any other court. Each of the parties waives any defense of
        inconvenient forum to the maintenance of any action or proceeding so brought
        and
        waives any bond, surety or other security that might be required of any other
        party with respect to any such action or proceeding. The parties agree that
        either or both of them may file a copy of this paragraph with any court as
        written evidence of the knowing, voluntary and bargained agreement between
        the
        parties irrevocably to waive any objections to venue or to convenience of
        forum.

      

      11.15 Waiver
        of Jury Trial.
        EACH
        PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY THAT MAY ARISE UNDER THIS
        AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE
        IT IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL
        BY
        JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR
        RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT.
        EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (I) NO REPRESENTATIVE, AGENT OR
        ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT
        SUCH
        OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE

      
        
          
          

        

        
          51

          
            

          

        

        
          
          

        

      

      FOREGOING
        WAIVER, (II) IT UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF SUCH WAIVER,
        (III) IT MAKES SUCH WAIVER VOLUNTARILY AND (IV) IT HAS BEEN INDUCED TO ENTER
        INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVER AND CERTIFICATIONS
        IN THIS SECTION 11.15.

      

      11.16 Construction.
        The
        parties and their respective counsel have participated jointly in the
        negotiation and drafting of this Agreement. In addition, each of the parties
        acknowledges that it is sophisticated and has been advised by experienced
        counsel and, to the extent it deemed necessary, other advisors in connection
        with the negotiation and drafting of this Agreement. In the event an ambiguity
        or question of intent or interpretation arises, this Agreement will be construed
        as if drafted jointly by the parties and no presumption or burden of proof
        will
        arise favoring or disfavoring any party by virtue of the authorship of any
        of
        the provisions of this Agreement. The parties intend that each representation,
        warranty and agreement contained in this Agreement will have independent
        significance. Any reference to any Law will be deemed to refer to all rules
        and
        regulations promulgated thereunder, unless the context requires otherwise.
        The
        headings preceding the text of articles and sections included in this Agreement
        and the headings to the schedules and exhibits are for convenience only and
        are
        not be deemed part of this Agreement or given effect in interpreting this
        Agreement. References to sections, articles, schedules or exhibits are to
        the
        sections, articles, schedules and exhibits contained in, referred to or attached
        to this Agreement, unless otherwise specified. The word “including” means
“including without limitation.” A statement that an action has not occurred in
        the past means that it is also not presently occurring. When any party may
        take
        any permissive action, including the granting of a consent, the waiver of
        any
        provision of this Agreement or otherwise, whether to take such action is
        in its
        sole and absolute discretion. The use of the masculine, feminine or neuter
        gender or the singular or plural form of words will not limit any provisions
        of
        this Agreement. A statement that an item is listed, disclosed or described
        means
        that it is correctly listed, disclosed or described, and a statement that
        a copy
        of an item has been delivered means a true and correct copy of the item has
        been
        delivered.

      

      11.17 Currency.
        Unless
        otherwise indicated, all references in this Agreement to currency are references
        to U.S. dollars.

      

      11.18 Time
        of Essence.
        With
        regard to all dates and time periods set forth or referred to in this Agreement,
        time is of the essence.

       

       

      
        
          
          

        

        
          52

          
            

          

        

        
          
          

        

      

    

     

     

    

      IN
        WITNESS WHEREOF,
        the
        Buyer Parties and the Sellers have executed this Asset Purchase Agreement
        as of
        the date first above written.

      

      
        	
                SXR
                  URANIUM ONE INC.

              	 	
                U.S.
                  ENERGY CORP.

              
	 	 	 
	 	 	 
	
                By:
                  /s/
                  Neal Froneman

              	 	
                By:
                  /s/ Mark Larsen

              
	
                Name:
                  Neal
                  Froneman

              	 	
                Name:
                  Mark Larsen

              
	
                Title:
                  President
                  and CEO

              	 	
                Title:
                  President

              
	 	 	 
	 	 	 
	
                URANIUM
                  ONE UTAH INC.

              	 	
                CRESTED
                  CORP.

              
	 	 	 
	 	 	 
	
                By:
                  /s/
                  John M. Sibley

              	 	
                By:
                  /s/ Keith G. Larsen

              
	
                Name:
                  John
                  M. Sibley

              	 	
                Name:
                  Keith G. Larsen

              
	
                Title:
                  President

              	 	
                Title:
                  Co-Chairman

              
	 	 	 
	 	 	 
	
                URANIUM
                  ONE VENTURES U.S.A. INC.

              	 	 
	 	 	
                PLATEAU
                  RESOURCES LIMITED

              
	 	 	 
	 	 	 
	
                By:
                  /s/ John M. Sibley

              	 	 
	
                Name:
                  John
                  M. Sibley

              	 	
                By:
                  /s/ Hal Herron

              
	
                Title:
                  President

              	 	
                Name:
                  Hal Herron

              
	 	 	
                Title:
                  President

              
	 	 	 
	
                URANIUM
                  ONE EXPLORATION U.S.A.

              	 	 
	
                INC.

              	 	
                PLATEAU
                  RESOURCES LIMITED, INC.

              
	 	 	 
	 	 	 
	
                By:
                  /s/ John M. Sibley

              	 	 
	
                Name:
                  John
                  M. Sibley

              	 	
                By:
                  /s/ Hal Herron

              
	
                Title:
                  President

              	 	
                Name:
                  Hal Herron

              
	 	 	
                Title:
                  President

              
	 	 	 
	 	 	 
	 	 	
                U.S.
                  URANIUM LTD.

              
	 	 	 
	 	 	 
	 	 	
                By:
                  /s/ Keith G. Larsen

              
	 	 	
                Name:
                  Keith G. Larsen

              
	 	 	
                Title:
                  Chairman

              

      

       

    

     

     

    
      
        
        

      

      
        53

        
          

        

      

      
        
        

      

    

     

     

    

      

      
        	 	 	
                U.S.
                  ENERGY CORP. AND CRESTED

              
	 	 	
                CORP.
                  dba USECB JOINT VENTURE

              
	 	 	 
	 	 	
                U.S.
                  Energy Corp. (50% owner)

              
	 	 	 
	 	 	 
	 	 	
                By:
                  /s/
                  Mark Larsen

              
	 	 	
                Name:
                  Mark
                  Larsen

              
	 	 	
                Title:
                  President

              
	 	 	 
	 	 	
                Crested
                  Corp. (50% owner)

              
	 	 	 
	 	 	 
	 	 	
                By:
                  /s/
                  Keith G. Larsen

              
	 	 	
                Name:
                  Keith
                  G. Larsen

              
	 	 	
                Title:
                  Co-Chairman

              
	 	 	 

      

      

      Guarantee:

      

      sxr
        Uranium One, Inc., a Canadian corporation (“Uranium One”), hereby absolutely,
        irrevocably and unconditionally guarantees, subject to Section 11.5 of this
        Agreement, the compliance with and performance by each Buyer of each of the
        provisions, covenants, agreements and conditions applicable to any Buyer
        contained in this Agreement or any Ancillary Agreement, and guarantees the
        full
        and prompt payment by Buyers of all amounts payable pursuant to this Agreement
        or any Ancillary Agreement. The obligations of Uranium One as guarantor are
        independent of the obligations of Buyers, and Sellers may proceed directly
        against Uranium One under this guaranty clause without being required to
        proceed
        against any other Buyer, another guarantor or any security given by Buyers
        or to
        exhaust any other rights or remedies Sellers may have against any Buyer.
        

      

      Made
        this
        22 day of February, 2007

      

      
        	
                SXR
                  URANIUM ONE INC.

              
	 
	 
	
                By:
                  /s/ Neal Froneman

              
	
                Name:
                  Neal Froneman

              
	
                Title:
                  President & CEO

              

      

      
 

    

     

    
      
        
        

      

      
        54Exhibit 10.2 Production Payment Royalty Agreement

    
      

    

     

     

    

      EXHIBIT
        A

      TO

      ASSET
        PURCHASE AGREEMENT

      

      PRODUCTION
        PAYMENT ROYALTY AGREEMENT

      

      SHOOTARING
        CANYON MILL

      

      

      THIS
        PRODUCTION PAYMENT ROYALTY AGREEMENT (“Royalty Agreement”)
        is made
        and entered into effective _________, by and between Uranium
        One Utah, Inc.,
        a
        Delaware corporation (“Uranium
        One Utah”),
        the
        address of which is 390 Bay Street, Suite 1610 Toronto, ON M5H-2Y, CANADA
        and
U.S.
        Energy Corp.,
        a
        Wyoming corporation (“USE”),
        the
        address of which is 877 North 8th
        West,
        Riverton, WY 82501.

      

      Recitals

      

      A. Uranium
        One Utah acquired the Shootaring Canyon uranium mill located on State Highway
        276, forty-eight miles south of Hanksville, Utah (“Shootaring
        Canyon Mill”)
        pursuant to an Asset Purchase Agreement dated effective as of [___] by and
        among
        sxr Uranium One Inc, Uranium One Utah, Uranium One Ventures U.S.A. Inc. and
        Uranium One Exploration U.S.A. Inc., as buyers, and USE, Crested Corp., USECB
        Joint Venture (a joint venture between U.S. Energy Corp. and Crested Corp.),
        Plateau Resources Limited, Plateau Resources Limited, Inc. and U.S. Uranium
        Ltd., as sellers (“Purchase
        Agreement”).

      

      B. This
        Royalty Agreement is granted and delivered in furtherance of Uranium One
        Utah’s
        contractual obligations to USE under the Purchase Agreement. 

      

      Agreement

      

      NOW,
        THEREFORE, for good and valuable consideration, the receipt and sufficiency
        of
        which are hereby acknowledged, and intending to be legally bound, Uranium
        One
        Utah and USE agree as follows:

      

      1.0  Definitions.
        Unless
        otherwise defined, all capitalized terms shall have the following meanings.
        

      

      1.1  “ACH”
shall
        have the meaning set forth in Section 5.2.

      

      1.2  “Commercial
        Production”
shall
        occur when the Shootaring Canyon Mill has been operating at 60% or more of
        its
        design capacity of 750 short tons per day for sixty consecutive
        days.

      

      1.3  “Effective
        Date”
shall
        have the meaning set forth in the introductory paragraph.

      

      1.4  “Gross
        Value”
shall
        have the meaning set forth in Section 3.0.

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

      

      1.5  “Initial
        Processing”
shall
        have the meaning set forth in Section 8.0.

      

      1.6  “Market
        Value of U308”
shall
        have the meaning set forth in Section 3.0.

      

      1.7  “Market
        Value of V205”
shall
        have the meaning set forth in Section 3.0.

      

      1.8  “Mill
        Fee”
shall
        have the meaning set forth in Section 4.0.

      

      1.9  “Notices”
shall
        have the meaning set forth in Section 13.5.

      

      1.10  “Other
        Mineral Products” shall
        mean all minerals mined or extracted primarily for values derived from their
        content of minerals other than for Products, in the form of ores, mine waters,
        leachates, pregnant liquors, pregnant slurries, concentrated slurries,
        precipitates, whether in dry or slurry state, concentrates, or products
        beneficiated, upgraded or refined further than concentrates, and whether
        occurring in intimate depositional relationship with uranium and recovered
        as
        secondary values during the mining, extraction, processing, or treatment
        of
        Products.

      

      1.11  “Products” shall
        mean (i) uranium concentrates in the form commonly known as “yellowcake” or
“U308
        concentrates”
        produced and processed either through an ion exchange or conventional processing
        and (ii) vanadium concentrates in the form commonly known as “black flake” or
V205
        produced
        and processed through vanadium extraction circuit, in any form, each produced
        and processed through the Shootaring Canyon Mill from metals, minerals, ores,
        mine waters, leachates, pregnant liquors and slurries, precipitates and
        concentrates in whatever form. 

      

      1.12  “Quarterly
        Statement”
shall
        have the meaning set forth in Section 5.1.

      

      1.13  “Royalty”
shall
        mean the Royalty as defined in Section 2.0.

      

      1.14  “Sale”
shall
        have the meaning set forth in Section 5.1.
        

      

      1.15  “Shootaring
        Canyon Mill”
shall
        have the meaning set forth in the Recitals.

      

      1.16  “Uranium
        One Utah”
shall
        mean Uranium One Utah Inc.

      

      1.17  “Uranium
        One Utah Parties”
shall
        mean Uranium One Utah, its direct and indirect parents and the direct and
        indirect subsidiaries of such parents.

      

      1.18  “USE”
shall
        mean U.S. Energy Corp.

      

      2.0  Grant
        of Production Payment Royalty.

      

      2.1  Production
        Payment Royalty.
        From
        and after Commercial Production, Uranium One Utah shall pay to USE a production
        payment royalty in the amount of five percent (5%) of (i) the Gross Value
        of the
        Products produced at and sold from the Shootaring Canyon Mill and (ii) any
        Mill
        Fee paid and received for Products produced from the Shootaring Canyon Mill,
        until such time as the total of all Uranium One Utah payments made pursuant
        to
        this 

      

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      Royalty
        Agreement to USE shall aggregate Twelve Million Five Hundred Thousand Dollars
        ($12,500,000) (“Royalty”).
        The
        Royalty shall automatically terminate at such time as Uranium One Utah has
        paid
        USE the sum of $12,500,000 in Royalty payments. The Royalty shall not apply
        to
        Other Mineral Products

      

      2.2  No
        Milling Obligation.
        Uranium
        One Utah may, but is not obligated to, beneficiate, mill, sort, concentrate,
        refine, smelt, or otherwise process and upgrade any ores, concentrates and
        other
        mineral products at the Shootaring Canyon Mill. Uranium One Utah shall have
        the
        sole and exclusive right to determine the timing and the manner of any
        production from or tolling and mill services provided by the Shootaring Canyon
        Mill.

      

      2.3  No
        Burden on Ores; No Royalty in Kind.
        The
        Royalty is a grant to a share of the proceeds of production from the Shootaring
        Canyon Mill. The Royalty is not intended, and nothing in this Royalty Agreement
        shall be interpreted, to grant to USE any legal or beneficial ownership rights
        to or a burden upon any ores, concentrates or products located or produced
        at
        the Shootaring Canyon Mill. USE shall have no right to take, or elect to
        take,
        the Royalty or value of the Royalty in kind by physical delivery of ores,
        concentrates or Products.

      

      3.0  Gross
        Value.

      

      3.1  Sale
        of Products.
        In the
        event Uranium One Utah sells Products, “Gross
        Value”
shall
        mean the actual proceeds of sale of such Products received by Uranium One
        Utah

      

      3.2  Disposal
        to Affiliate.
        In the
        event Uranium One Utah sells Products to a corporate affiliate, partner,
        or
        joint venturer; such Products shall be deemed to be disposed of without sale
        and
        Gross Value as hereinafter defined in this Section 3.2
        shall
        apply to such disposal without sale.

      

      (a)  In
        the
        event of disposal without sale of any Products, “Gross
        Value”
shall
        mean the Market Value of U308
        or the
        Market Value of V205
        (as
        hereinafter defined in this Section 3.2(a))
        multiplied by the amount stated in pounds of uranium oxide (U308
        ) or
        vanadium (V205)
        contained in the particular Products so disposed of without sale. For purposes
        of this Royalty Agreement, (A) “Market
        Value of U308”
shall
        mean the average “UxU308
        Price”
as
        quoted in U.S dollars in the Ux
        Weekly
        for the
        calendar month immediately preceding the month of such disposal without sale
        and
        (B) “Market
        Value of V205”
shall
        mean the average “V205
        Price”
as
        quoted in U.S dollars in the Ryan’s
        Notes
        for the
        calendar month immediately preceding the month of such disposal without sale.
        In
        the event that such prices or quotations, or their substantial equivalent,
        are
        not published therein or such publication ceases or is suspended, then
“Market
        Value of U308”
and
        the
“Market
        Value of V205”
shall
        mean the price or quotation for yellowcake or vanadium for immediate delivery
        as
        reported in such other publication or source as is generally recognized in
        the
        mining industry as reflecting the price or quotation at which yellowcake
        is
        being offered for sale and purchase.

      

      (b)  In
        the
        absence of any such publication referenced in Section 3.2(a)
        above,
“Market
        Value of U308”
or
        the
“Market
        Value of V205”
shall
        be the mean of the domestic prices or quotations at which yellowcake or
        vanadium, as the case may be, is or was being offered for sale and purchase
        for
        immediate and forward delivery from the uranium mill, 

      

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      vanadium
        mill or processing facility nearest the Shootaring Canyon Mill or, in the
        event
        such prices or quotations are unavailable from said uranium mill or processing
        facility, the “Market
        Value of U308”
and
        the
“Market
        Value of V205”
shall
        be determined by such other means as may establish such prices or quotations
        at
        the mean of the domestic prices or quotations at which yellowcake or vanadium
        is
        being offered for sale and purchase for immediate and forward
        delivery.

      

      3.3  Hedging
        Profits and Losses Not Included in Gross Value.
        

      Notwithstanding
        any other provision of this Royalty Agreement, Uranium One Utah and USE intend
        and agree that for purposes of determination of the Royalty due hereunder,
        Gross
        Value shall mean the proceeds received by Uranium One Utah from the sale
        and
        delivery of Product, including delivery made pursuant to a forward sales
        contract; but shall not include any profits, losses or transaction costs
        for any
        futures trading or commodity options trading or any other price hedging,
        price
        protection, derivative or speculative arrangements which may involve the
        possible delivery of Products produced from the Shootaring Canyon
        Mill.

      

      4.0  Mill
        Fee.
        In the
        event Uranium One Utah processes and produces any Product at the Shootaring
        Canyon Mill pursuant to a custom milling contract, tolling agreement or form
        of
        service contract whereby a fee is paid for mill services, “Mill
        Fee”
shall
        mean the actual cash mill fee or toll charge received by Uranium One Utah
        for
        the custom milling or tolling arrangement. Mill Fee shall exclude any sales,
        excise, personal property or value-added tax, or any other tax imposed, levied
        or assess by law on the milling or tolling services that are recoupable by
        or
        payable to a governmental entity. 

      

      5.0  Manner
        of Payment.

      

      5.1  Royalty
        Payments.
        Royalties shall accrue at the time of sale of Products from the Shootaring
        Canyon Mill or receipt by Uranium One Utah of a Mill Fee, and in the amount
        as
        provided in Section 3.0
        above.
        For purposes of this Section 5.1,
        “sale”
means
        the date on which Uranium One Utah receives payment for the sale of Products.
        Royalty payments shall become due and payable quarterly on the fifteenth
        day of
        the month following the last day of the calendar quarter in which the same
        accrue. Royalty payments shall be by Uranium One Utah's check, ACH or wire
        transfer, and shall be accompanied by a settlement sheet showing the quantities
        and grades of Products produced at the Shootaring Canyon Mill for sale or
        processing, proceeds of sale, costs, and other pertinent information in
        sufficient detail to explain the calculation of the Royalty payment
        (“Quarterly
        Statement”).

      

      5.2  Depository
        Bank.
        Upon
        written request of Uranium One Utah, USE shall designate a bank to act as
        USE's
        agent to receive from Uranium One Utah all payments payable under the terms
        hereof, and all such payments may be made by paying or tendering the same
        to
        USE, or to the bank for USE's credit, which bank shall continue as the
        depository for all Royalty payments hereunder regardless of changes of ownership
        of the Shootaring Canyon Mill, or rights to receive payments hereunder, subject
        only to the subsequent provisions in this Section 5.2.
        All
        charges of such depository bank shall be for USE's account. A single payment
        or
        tender to said depository bank shall be made by (i) mailing or by delivering
        a
        check, (ii) electronic exchange of funds between accounts held at U.S. financial
        institutions through the Automated Clearing House network (“ACH”),
        or
        (iii) wire transfer, and such a payment shall effectively and for all purposes
        

      

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

      whatsoever
        constitute full payment of the amount thereof to USE to the same extent as
        if
        made directly. In the event USE fails to name said bank upon the request
        of
        Uranium One Utah, or in the event such bank (or any successor bank) should
        fail,
        liquidate or be succeeded by another bank, or for any reason fail or refuse
        to
        accept royalties, or should USE desire to designate another depository bank,
        then Uranium One Utah shall not be held in default for failure to make payment
        or tender of payments until thirty (30) days after said persons shall deliver
        to
        Uranium One Utah a proper, recordable instrument naming a bank as agent to
        receive such payments or tenders.

      

      5.3  Objections
        to Payments.
        All
        Royalty payments shall be considered final and in full satisfaction of all
        obligations of Uranium One Utah with respect thereto unless USE gives Uranium
        One Utah written notice describing and setting forth a specific objection
        to the
        calculation thereof within ninety (90) days after receipt by USE of the
        Quarterly Statement herein provided for. If USE objects to a particular
        Quarterly Statement as herein provided, USE shall, for a period of thirty
        (30)
        days after USE's receipt of notice of such objection, have the right to have
        Uranium One Utah's accounts and records relating to calculation of the Quarterly
        Statement in question audited by a certified public accountant acceptable
        to USE
        and to Uranium One Utah and subject to mutually acceptable confidentiality
        protection. Uranium One Utah shall account for any deficits or excess in
        the
        payment made to USE pursuant to the Quarterly Statement in question which
        may be
        confirmed by such an audit by adjusting the next Quarterly Statement following
        completion of such audit to account for such deficits or excess. If the
        variation between the amount of a particular Royalty payment made to USE
        hereunder as calculated by the audit provided for herein exceeds five percent
        (5%), Uranium One Utah shall pay all costs of such audit. If such variation
        is
        five percent (5%) or less, USE shall pay all costs of such audit. For the
        purpose of determining the amount of royalties payable hereunder, all figures,
        accounts, and records used in connection with the calculation of royalties
        shall
        be determined in accordance with generally accepted accounting principles
        and
        from accounts maintained by Uranium One Utah in connection with its operations
        at the Shootaring Canyon Mill. Failure on the part of USE to make claim on
        Uranium One Utah for adjustment in such 90-day period shall establish the
        correctness of the particular Quarterly Statement and preclude the filing
        of
        exceptions to such Quarterly Statement or making of claims for adjustment
        to
        such Quarterly Statement, and in the absence of fraud, USE expressly waives
        any
        claim or cause of action with respect to such Quarterly Statement.

      

      6.0  Commingling
        of Ores.
        Uranium
        One Utah shall have the right of mixing or commingling, either underground,
        at
        the surface, or at the Shootaring Canyon Mill, any ores, mine waters, leachates,
        pregnant liquors, pregnant slurries, or other products or compounds containing
        minerals mined or extracted from any sources or mining properties with any
        similar substances derived from other sources, lands or properties; provided
        that Uranium One Utah shall weigh and sample such ores, products or compounds
        in
        accordance with sound mining and metallurgical practice for moisture and
        metal
        content before the same are so mixed or commingled. In computing the Royalty,
        ownership of the Product shall be allocated between Uranium One Party ore
        and
        other ore on the basis of the metal content and weight of the concentrate
        from
        each ore.

      

      7.0  Sampling,
        Assay, and Analysis.
        Any
        determination of weight, volume, moisture content, amenability, or pay metal
        content, and any sampling and analysis shall be made in 

      

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

      accordance
        with sound mining and metallurgical practices and standard sampling and analysis
        procedures prevailing in the uranium mining and milling industry. USE shall
        have
        the right to have a representative present at the time samples are taken.
        USE
        shall be furnished at USE's request with a portion of all samples taken for
        analysis of ore, leachates, pregnant liquors, or pregnant slurries or other
        compounds or products owned by Uranium One Parties processed at the Shootaring
        Canyon Mill. Split samples shall by retained by Uranium One Utah for later
        analysis by an independent referee selected by mutual agreement of the parties
        and, in the event of a dispute concerning Uranium One Utah's assay of samples,
        Royalty payments shall be based on the assay results determined by the
        independent referee. All statements or reports wherein Uranium One Utah's
        assay
        of samples are set forth shall be conclusively presumed to be true and correct,
        unless, within sixty (60) days
        after such statements or reports are delivered to USE, USE makes written
        objection thereto and demands an assay by the independent referee; and unless
        such objection and demand is made within such sixty-day period, Uranium One
        Utah
        shall have no duty to preserve the split samples after the end of such sixty-day
        period. The cost of the independent referee shall be paid by the party whose
        assay shows the greatest variance from that of the independent
        referee.

      

      8.0  Waste
        Rock, Spoil and Tailings.
        Except
        for the Royalty payable on products provided here, USE
        shall
        have no rights, title or interest in all residue or tailings remaining after
        Initial Processing (defined below) and minerals from the Shootaring Canyon
        Mill,
        or any subsequent processing of ores, such or other products or compounds
        of
        minerals. “Initial
        Processing”
shall
        mean all processing of ores, mine waters, leachates, pregnant liquors, pregnant
        slurries, or other products or compounds of mineral prior to the time any
        residue thereof shall be first deposited in a tailings containment facility.
        Uranium One Utah shall not be liable for mineral values lost in mining or
        processing pursuant to sound mining and metallurgical engineering practices.
        The
        Royalty shall be payable only on Products. All waste rock, spoil, tailings,
        or
        other mine wastes and residue shall be the sole property of the Uranium One
        Utah. Uranium One Utah shall have the sole right to dump, deposit, sell,
        dispose
        of, or reprocess such waste rock, spoil, tailings, or other mine wastes and
        residues.

      

      9.0  Lesser
        Interest; Third Party Claims.

      

      9.1  Lesser
        Interest.
        The
        Royalty
        is based upon ownership by Uranium One Utah Parties of the full, 100% undivided
        beneficial interest in the ores, mine waters, leachates, pregnant liquors,
        pregnant slurries, or other products or compounds of minerals for processing
        at
        the Shootaring Canyon Mill or in the Products. In the event the Uranium One
        Utah
        Parties own less than the full, 100% undivided beneficial interest in such
        ores,
        mine waters, leachates, pregnant liquors, pregnant slurries, or other products
        or compounds of minerals for processing at the Shootaring Canyon Mill or
        in the
        Products, the Royalty hereunder shall be applied to only that beneficial
        interest of the Uranium One Utah Parties. (As an example, and for illustrative
        purposes only, ore processed at the Shootaring Canyon Mill which is produced
        from properties owned by a joint venture between Uranium One Utah and a third
        party subject to a joint venture agreement that allocates 50% equitable
        ownership to each of the venture parties, shall be deemed to be beneficially
        owned 50% by Uranium One Utah and the Royalty applicable to all Products
        produced from the joint venture ore shall be applied only to the 50%
        beneficially-owned by the Uranium One Utah Parties, which equals a Royalty
        of 5%
        on 50% of the Value of the Products).

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

      

      9.2  Third
        Party Claims.
        If any
        person or entity not a party asserts a claim of ownership in Products or
        a claim
        to a share in any mine ores, minerals, waters, leachates, pregnant liquors,
        pregnant slurries, or other products or compounds of minerals, or a claim
        for
        money on account of production of minerals, Uranium One Utah at its sole
        discretion after written notice to USE, may suspend its obligation to pay
        the
        Royalty, and in lieu thereof may deposit in an interest-bearing account payments
        equivalent to the Royalty which may otherwise become due USE. Such deposit
        or
        deposits shall remain in such interest-bearing account until the claim or
        controversy is resolved or settled by final court decision, by arbitration,
        negotiation, or otherwise.

      

      10.0  Pooling
        or Unitization.
        Uranium
        One Utah shall have the right to pool and combine acreage from any mining
        properties with other property at any time and from time to time as a recurring
        right, either before or after production, for exploratory, developmental
        or
        operating purposes for the purpose of conducting in situ solution mining
        .
        Uranium One Utah, or a designated operator for Uranium One Utah, shall have
        the
        sole discretion to determine the location, size and shape of any drilling
        pattern. It shall be conclusively presumed that the minerals which are produced
        from any such pooled acreage are homogeneous and are produced uniformly within
        the boundaries of such drilling pattern, both as to quantity and
        quality.

      

      11.0  Access
        to Shootaring Canyon Mill.
        Subject
        to the confidentiality provisions of this Royalty Agreement and all health
        and
        safety requirement imposed by Uranium One Utah, which shall be enforced at
        Uranium One Utah’s sole discretion, USE and its representatives shall, at their
        sole risk and expense, upon reasonable advance notice to and prior approval
        from
        Uranium One Utah have access to operations conducted by or on behalf of Uranium
        One Utah at the Shootaring Canyon Mill for the purposes of viewing or inspecting
        the same, provided that USE and its representatives shall indemnify Uranium
        One
        Utah for any claims, losses or damages that arise out of or result from USE’s
        presence or activities at the Shootaring Canyon Mill.

      

      12.0  Confidentiality.
        All
        information developed or acquired by USE under or pursuant to this Royalty
        Agreement relating to without limitation mineral discoveries, ore reserves,
        mining methods, plans and production schedules, terms of agreements, ownership
        interests and all other information relating to the ownership and operation
        of
        the Shootaring Canyon Mill, as a result of USE’s exercise of its rights
        hereunder, including its right to visit the Shootaring Canyon Mill or audit
        Uranium One Utah records relating to preparation of Quarterly Statements,
        shall
        be treated and kept as confidential and shall not be released or made public
        without Uranium One Utah’s express prior written consent, which consent may be
        withheld at Uranium One Utah’s sole discretion, provided, however, that nothing
        herein shall be construed to interfere with any responsibility of USE to
        make
        reasonable disclosures required under applicable securities or other laws.
        USE
        acknowledges and agrees that in the event of a breach of this covenant of
        confidentiality the remedy at law may be inadequate and, without limiting
        any
        other remedy available at law or equity, Uranium One Utah shall may enforce
        this
        covenant through injunction, specific performance or other form of equitable
        relief or money damages or any combination thereof. Uranium One Utah shall
        be
        entitled to recover the cost of enforcing this provision, including, without
        limitation, reasonable attorneys’ fees and court costs.

      

      13.0  General.

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

      

      13.1  Applicable
        Law.
        This
        Royalty Agreement shall be governed by and interpreted in accordance with
        the
        laws of the State of Colorado without regard to the conflict of laws provisions
        thereof.

      

      13.2  Waiver.
        The
        failure of either Uranium One Utah or USE to insist on the strict performance
        of
        any provision of this Royalty Agreement or to exercise any right, power or
        remedy upon a breach hereof shall not constitute a waiver of any provision
        of
        this Royalty Agreement or limit Uranium One Utah’s or USE’s right thereafter to
        enforce any provision or exercise any right hereunder. A waiver of any provision
        of this Royalty Agreement shall not be effective unless in writing and signed
        by
        the party against whom it is to be enforced.

      

      13.3  Amendment.
        No
        modification or amendment of this Royalty Agreement shall be valid unless
        made
        in writing and duly executed by Uranium One Utah and USE.

      

      13.4  Severability.
        If any
        term or other provision of this Royalty Agreement is invalid, illegal or
        incapable of being enforced by any rule of law or public policy, all other
        conditions and provisions of this Royalty Agreement shall nevertheless remain
        in
        full force and effect so long as the economic and legal substance of the
        transactions contemplated hereby is not affected in any manner materially
        adverse to any party. Upon such determination that any term or other provision
        is invalid, illegal or incapable of being enforced, the parties hereto shall
        negotiate in good faith to modify this Royalty Agreement so as to effect
        the
        original intent of the parties as closely as possible in an acceptable manner
        to
        the end that transactions contemplated hereby are fulfilled to the extent
        possible.

      

      13.5  Notices.
        All
        notices and other required communications (“Notices”)
        to the
        parties to this Royalty Agreement shall be in writing, and shall be addressed
        respectively as follows:

      

      If
        to
        Uranium One Utah:

      

      Uranium
        One Utah Inc.

      Suite
        1610 - 390 Bay Street

      Toronto,
        Ontario M5H 2Y2

      Canada

      Attention:
        Jennifer Smith

      Facsimile:
        (416) 363-6806

      

      With
        a
        copy to:

      

      sxr
        Uranium One Inc.

      Block
        A,
        Empire Park

      55
        Empire
        Road

      Parktown

      South
        Africa

      Attention:
        Neal Froneman

      Facsimile:
        011 27 11 482-3604

      

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

      With
        an
        informational copy to:

      

      Dorsey
        & Whitney LLP

      1420
        Fifth Avenue, Suite 3400

      Seattle,
        Washington 98101

      Attention:
        Christopher Doerksen

      Facsimile:
        (206) 903-8856

      

      If
        to US
        Energy: 

      

      U.S.
        Energy Corp.

      877
        N.
        8th
        W.

      Riverton,
        Wyoming

      USA
        82501

      Attention:
        Mark J. Larsen

      Facsimile:
        (307) 857-3050

      

      With
        an
        informational copy to:

      

      U.S.
        Energy Corp. 

      877
        N.
        8th
        W.

      Riverton
        WY 82501

      Attn:
        Steven R. Youngbauer 

      Facsimile
        No. 307) 857-3234

      

      With
        a
        copy to:

      

      Davis
        Graham & Stubbs LLP

      1550
        Seventeenth Street, Suite 500 Denver, CO 80202

      Attn:
        Scot W. Anderson 

      Facsimile
        No. (303) 893-1379

      

      All
        Notices shall be given (a) by personal delivery to the another party, (b)
        by
        electronic communication, with a confirmation sent by registered or certified
        mail, return receipt requested, or (c) by registered or certified mail, return
        receipt requested. Notices shall be effective and shall be deemed delivered
        on
        receipt if delivered during normal business hours, and, if not delivered
        during
        normal business hours, on the next business day following delivery. A party
        may
        change its address by Notice to the other parties. 

      

      13.6  Entire
        Agreement.
        This
        Royalty Agreement contains the entire understanding of Uranium One Utah and
        USE
        and supersedes all prior agreements and understandings between Uranium One
        Utah
        and USE relating to the subject matter hereof. 

      

      13.7  Assignment
        and Binding Effect. 

      

      (a)  The
        Royalty shall be assignable by USE. No change or division in the ownership
        of
        the Royalty or payment of proceeds attributable to the Royalty shall enlarge
        the
        obligations or diminish the rights of Uranium One Utah. USE covenants that
        any
        change in 

      

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

      ownership
        shall be accomplished in such a manner that Uranium One Utah shall be required
        to make payments and to give notices to a single party or entity representing,
        and with the agency to act for, the owner or owners of the Royalty. Upon
        breach
        of this covenant, Uranium One Utah may retain all payments of Royalty otherwise
        due to USE, its successors and assigns, until the breach has been cured.
        No
        change or division in ownership shall be binding on Uranium One Utah until
        thirty (30) days after USE has given Uranium One Utah a certified copy of
        the
        recorded instrument evidencing the change or division together with an
        enforceable agreement among the royalty owners appointing a single party
        as
        agent with the authority to act for all owners.

      

      (b)  Uranium
        One Utah may assign all of its obligations and duties under this Royalty
        Agreement (i) upon transfer of fifty percent (50%) or greater of Uranium
        One
        Utah’s interest in the Shootaring Canyon Mill, or (ii) with the prior written
        consent of USE, which consent shall not be unreasonably withheld, and in
        each
        case upon a written assumption by the assignee of Uranium One Utah’s obligations
        and duties hereunder.

      

      (c)  This
        Royalty Agreement shall be binding upon and inure to the benefit of the
        respective successors and assigns of Uranium One Utah and USE.

      

      13.8  Further
        Assurances.
        Each
        party hereto shall take such actions and sign such documents reasonably
        requested by any other party hereto to enable such requesting party to enjoy
        the
        intended rights and benefits hereof.

      

      13.9  Third
        Parties.
        Nothing
        herein expressed or implied is intended or shall be construed to confer upon
        or
        give to any person or entity other than the parties and their successors
        or
        assigns, any rights or remedies under or by reason of this Royalty
        Agreement 

      

      13.10  Counterparts.
        This
        Royalty Agreement may be executed in two or more counterparts, each of which
        shall be considered one and the same agreement and shall become effective
        when
        counterparts have been signed by each of the parties and delivered to the
        other
        parties, it being understood that all parties need not sign the same
        counterpart.

      

      [REMAINDER
        OF PAGE INTENTIONALLY BLANK]

      

      
        
          
          

           

        

        
          10

          
            

          

        

        
           

          
          

        

      

      IN
        WITNESS WHEREOF, the parties hereto have executed this Royalty Agreement
        as of
        the Effective Date.

       

      URANIUM
        ONE UTAH INC.

      

      

      By:______________________________________________       

      Title:_____________________________________________       

      

      

      

      U.S.
        ENERGY CORP. 

      

      

      By:______________________________________________       

      Title:_____________________________________________       

      

       

      
 

      
        
           

        

        
          11

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