Stage: Permitting

The Pine Tree-Reno Creek Properties are located between AREVA's idled Christensen Ranch in-situ recovery (ISR) operation 25 miles to the northwest and Cameco's producing Smith Ranch ISR facility located 30 miles to the south. Adjacent to the Moore-McCullough optioned properties is Cameco's Ruby Ranch property with a published probable reserve totaling 5,500,000 lbs of uranium grading 0.09% U3O8 contained within 2,830,000 tonnes of ore. (Source: Cameco website). To date, Strathmore has completed NI 43-101 resource estimates for the Reno Creek and Southwest Reno Creek lands within the overall project. Additional properties that make up the Pine Tree-Reno Creek project, which contain significant historical resource estimates, include Pine Tree, the FMC Claim area and the SWD claims

Ongoing permitting activities at both the State and Federal levels include compiling environmental baseline studies, re-evaluation of the mineralized trends, preliminary design of well fields, and engineering of a central processing facility.

The Pine Tree-Reno Creek Properties were joint ventured with American Uranium Corporation in 2007. American Uranium Corp is a US uranium exploration and development company committed to spending $12.375 million to earn an initial 22.5% interest in the Pine Tree-Reno Creek project and a total of $33 million over 6 years to earn a 60% interest. The Joint Venture anticipates developing this project as an in-situ operation.

Proposed Sale

In August 2009, Strathmore received a proposal from Bayswater Uranium Corporation to purchase the Pine Tree-Reno Creek properties for US $30 million in cash. This Purchase Agreement was subsequently amended to an Option Agreement with revised terms over a two year period. In December 2009, a superior competing bid from a foreign based corporation emerged. In January 2010, Bayswater elected to meet the terms of this superior competing bid, which comprises US$ 17.5 million cash, US $2.5 million in common shares of Bayswater, to be paid on closing, and a 5% gross production royalty, which can be repurchased in whole or in part by Bayswater at any time for US $2 million (US $1 million cash and US $1 million in common shares) per 1% royalty reduction. Bayswater has until April 6, 2010 to complete the transaction.