Strathmore's 640 acre Church Rock Property was acquired from Rio Algom Corporation, successor to the Kerr McGee Nuclear Corporation, in 2004. By the mid-1980s, Kerr McGee had completed over 300,000 feet of drilling and had initiated plans to develop the project as a conventional underground mine. The project was later abandoned due to a prolonged weak uranium price.

In 2005, Strathmore completed a National Instrument 43-101 compliant resource estimate nearly double the previously reported historical resource. The technical report further highlighted the excellent potential for increasing the resource through additional exploratory drilling. The Company opened a Government, Regulatory and Environmental Affairs Office in Santa Fe, and began permitting this project. In addition, studies were initiated to determine if uranium extraction was amenable to ISR methods. Work was subsequently abandoned when litigation challenging Uranium Resources Inc.'s (URI) plans to advance a neighbouring project, also known as Church Rock ensued. (See press release dated July 6, 2010 for further details) In June 2010, US Tenth Circuit Court of Appeals ruled in favour of Uranium Resources' ("URI") Church Rock project, If no appeal to the Supreme Court is lodged, advancement of the project to the production stage can proceed.

Church Rock represents an extremely valuable uranium asset in the Company's long-term project pipeline. However, given this important recent development, Strathmore will revisit this project by conducting an internal review to determine how best to enhance shareholder value.

Church Rock, New Mexico: NI 43-101 Resource Estimate