Strathmore corporate update march 2012

www.strathmoreminerals.com TSX: STM

Strathmore Minerals Corp Corporate Update

PDAC, Toronto

March, 2012


The following information may contain forward-looking statements. Forward- looking statements

address future events and conditions and therefore involve inherent risks and uncertainties. Actual

results may differ materially from those currently anticipated in such statements. Forward-looking

information is subject to known and unknown risks, uncertainties and other factors that may cause

Strathmore's actual results, level of activity, performance or achievements to be materially different

from those expressed or implied by such forward-looking information. Such factors include, but are not

limited to: uncertainties related to the historical resource estimates, the work expenditure

commitments; the ability to raise sufficient capital to fund future exploration or development programs;

changes in economic conditions or financial markets; changes in input prices; litigation; legislative,

environmental and other judicial, regulatory, political and competitive developments; technological or

operational difficulties or an inability to obtain permits required in connection with maintaining, or

advancing, the Roca Honda and Gas Hills projects; and labour relations matters.

All historical resource estimates were completed prior to the implementation of NI 43-101

and a qualified person has not completed sufficient work to classify the historic mineral

resources as current mineral resources, and is not treating the historic resources as

current. Hence, they should not be relied upon. Technical information has been prepared in

accordance with the Canadian regulatory requirements set out in NI 43-101, and reviewed by

David Miller, Chief Executive Officer for Strathmore Minerals Corp., PG 363 Wyoming and

Society for Mining, Metallurgy & Exploration Registered Member 2205106RM, a Qualified

Person under National Instrument 43-101. It should be noted that mineral resources which

are not mineral reserves do not have demonstrated economic viability as defined by NI 43-

101 guidelines.


SHARE STRUCTURE

SHARE PROFILE

Stock Symbol: STM (TSX)

STHJF (OTCQX)

Working Capital Estimate: C $20.5 MM

104,525,951 shares outstanding

114,884,951 shares fully diluted

Korea Electric Power Corp (KEPCO) owns ~14%

Uranium Market

“We do not think there is sufficient uranium to cover the needs of 2014-2020”

Adam Schatzker, RBC Capital (June, 2011)

• In 2010, China surpassed USA as the largest energy consumer in the world

• China, India, & S. Korea constructing 37 nuclear power plants; 234 planned /proposed

• China, India, & S. Korea all net importers of uranium

Current Spot

Price (Feb 27)

US $52.00/lb

Long-Term

Price (Feb)

US $60.00/lb



Management Team

David Miller, PG (Wyoming) - CEO, Director

Steven Khan, MBA - Chairman, President, Director

John DeJoia, PG (New Mexico) - Sr. V.P. New Mexico Operations

Juan Velasquez, MBA - V.P. Gov’t, Regulatory & Environmental Affairs

James Crouch, BSc. - V.P. Wyoming Operations

Patrick Groening, CA - CFO

Craig Christy, M.A. - Corporate Secretary & Investor Relations


Corporate Strategy

Active in the 2 largest uranium districts in the USA

Gas Hills Uranium District – Wyoming > 100 million lbs. cumulative uranium production

Grants Mineral District – New Mexico > 340 million lbs. cumulative uranium production

To become a leading uranium

producer in the United States


Why are we different?

• Timely Acquisitions

Properties acquired 2003-04 when uranium price US $7-$15 per lb

One of the largest holders of in-ground uranium resources in the USA

• Strong Management & Technical Expertise 200+ Man-years of uranium experience

• Advanced Company Maker Projects (Limits exploration risk)

• Roca Honda, NM permit application submitted October 2009

• Gas Hills, WY permit application submittal in 2012

• Long-life uranium assets in politically stable region


Recent Developments

• Korea Electric Power (KEPCO) acquired ~14% interest in STM via

US $8 MM Private Placement at C$ .55 per share

• Proceeds for 2012 Phase I program: Drilling at prospective Beaver

Rim & ongoing permitting and drilling of Main Gas Hills deposits

• KEPCO has option for Phase II US $32 MM Gas Hills Joint Venture

over 3 years beginning in 2013

• Transaction provides for long-term off-take agreements based on

KEPCO’s equity ownership in STM and Gas Hills

Why the United States ?

United States was the largest uranium producer in the world in the 20th century

104 nuclear power plants consume 50-55 MM lbs annually; USA produced 4.2 million lbs (2010)

Russian HEU contract expires in 2013; DOE sales contracted to 2013

Strathmore’s technical team has over 200 years uranium mining experience in the United States

United States Uranium Production and

Consumption 1980/2010

60

50

40

30

20

10

1980 2010

Production Consumption Production Consumption

Millions lbs U3O8


Where Did it Come From?

US Production: Where was it Mined?

0

100,000,000

200,000,000

300,000,000

400,000,000 New Mexico

Wyoming

Utah Colorado

Texas Arizona

Nebraska

Po

un

ds U

3O

8

Tonnes U

150,000

100,000

50,000



Largest Uranium Reserves In Wyoming & New Mexico

Copper

Mountain

Gas Hills

Nose Rock

Church Rock

Dalton Pass

Roca Honda

Jeep

Shirley

Basin

Sky -

(Cedar

Rim)

Juniper

Ridge

Ambrosia Lake

Leases

Kaycee

Marquez



Property Resource Grade lbs. U3O8 Method

Roca Honda, NM Measured

Indicated

M & I

Inferred

1.3 MM @ 0.23%

2.4 MM @ 0.23%

3.7 MM @ 0.23%

4.5 MM @ 0.17%

6.0 million

11.5 million

17.5 million

15.8 million

Underground

Church Rock, NM Measured

Indicated

M & I

Inferred

1.7 MM @ 0.10%

4.5 MM @ 0.10%

6.2 MM @ 0.10%

1.9 MM @ 0.09%

3.2 million

8.6 million

11.8 million

3.5 million

ISR / Underground

Marquez, NM Measured

Indicated

M & I

Inferred

1.0 MM @ 0.13%

2.6 MM @ 0.13%

3.6 MM @ 0.13%

2.1 MM @ 0.12%

2.5 million

6.6 million

9.1 million

4.9 million

ISR or Underground

Nose Rock, NM Measured

Indicated

M & I

Inferred

0.31 MM @ 0.15%

0.58 MM @ 0.15%

0.88 MM @ 0.15%

0.16 MM @ 0.14%

0.9 million

1.6 million

2.5 million

0.45 million

Underground

Dalton Pass, NM Measured

Indicated

M & I

Inferred

0.45 MM @ 0.09%

1.2 MM @ 0.10%

1.6 MM @ 0.10%

0.90 MM @ 0.08%

0.8 million

2.2 million

3.0 million

1.5 million

ISR / Underground

Sky, WY

Jeep, WY

Indicated

Inferred

Measured

Indicated

M&I

Inferred

0.66 MM @ 0.07%

0.05 MM @ 0.05%

0.22 MM @ 0.08%

0.08 MM @ 0.06%

0.31 MM @ 0.07%

0.15 MM @ 0.05%

0.9 million

0.05 million

0.4 million

0.1 million

0.5 million

0.15 million

ISR

45.3 Million M&I NI 43-101 lbs U3O8

26.3 Million Inferred 43-101 lbs U308


Permitting for Production

Roca Honda, New Mexico Mine Permit Review Underway

GRANTS MINERAL BELT

New Mexico

Largest Uranium District in the U.S.

340 Million pounds produced

CO UT

WY

NM



• Largest historical uranium producing district in the world > 340 million lbs - Only recently surpassed by the Athabasca Basin

• Many uranium companies active in New Mexico

• Strong local government and community support

• State regulatory agencies cooperative

Grants Mineral District


“Company Maker” Project - One of the Largest & Highest Grade proposed

uranium mines in US in over 30 years

Roca Honda Resource Summary

Roca Honda Resources LLC Joint Venture

(Strathmore 60% / Sumitomo 40%)

Previous Operator Resource Classification Tonnage Grade % U308 lbs U308

Kerr McGee

NI 43-101 Measured

NI 43-101 Indicated

NI 43-101 M + I

1,305,000

2,477,000

3,782,000

0.23

0.23

0.23

6,035,000

11,477,000

17,512,000

NI 43-101 Inferred 4,546,000 0.17 15,832,000


Roca Honda Mine Permit Submitted Oct 2009


• Mine Development office opened in Santa Fe, 2005

• Mine Permit application submitted & deemed “Administratively Complete” Q4 2009

• Feasibility Study under preparation by Roscoe Postle Associates Inc - completion targeted for Q3 2012

• Environmental Impact Statement (EIS) to be completed by Q4 2012; Mine Permit decision expected in 2013

• Sumitomo to contribute ~ US $50 million on final investment decision to complete 40% earn-in






Monitor Well Drilling and Installation

New Mineralized Zone found in monitor well.

Chemical Analysis 10’ grading 0.67% U308

6’ grading 0.73% U308


Permitting for Production

GAS HILLS, WYOMING Mine Permit Application Submittal in 2012

GAS HILLS

URANIUM DISTRICT

100 Million pounds produced

WY

NM

GAS HILLS URANIUM DISTRICT

WYOMING

NO INFRASTRUCTURE ISSUES

• Paved Road (45 miles)

• Big Electric Power installed

• Natural Gas available

• Geothermal available



GAS HILLS URANIUM DISTRICT

• 2nd largest historical producing district in the USA

• CEO David Miller & Technical Team have extensive Gas Hills

experience

• Largest in-ground resources held by Strathmore & Cameco

• Highly prospective 16,000 acre Beaver Rim area to the south of

Main Gas Hills open pit deposits

• Existing infrastructure: roads, power & natural gas

• Sweetwater Mill located 70 miles from the property


Gas Hills Uranium Development Project

(Strathmore 100% / KEPCO 40% earn-in)

• US $8 MM budgeted for drilling at prospective Beaver Rim &

ongoing permitting & drilling of Main Gas Hills deposits in 2012

• KEPCO can earn 15% by spending US $12 million in 2013

• KEPCO can earn to 27.5% by spending US $10 million in 2014

• KEPCO can earn to 40% by spending US $10 million in 2015

• KEPCO entitled to production off-take based on project ownership


Unmined

Uranium Roll-Front

Deposit

Gas Hills, Wyoming

STM Holdings - 35,000 acres

Historical estimate 10.8 MM tons @ 0.08% U308

Total - 16.2 million lbs (Not NI 43-101 Compliant)

Near surface open pit production


Deposit Resource Tonnage Grade lbs. U3O8 Method

George-Ver Historical 1.0 million 0.07% 1.5 million Open Pit

Bull Rush

Historical 1.7 million 0.07% 2.3 million Open Pit

Loco Lee Historical 3.4 million 0.07% 4.7 million Open Pit

Frazier Lamac Historical 0.7 million 0.11% 1.5 million Open Pit

Day Loma Historical 0.5 million 0.21% 2.0 million Open Pit

Rock Hill Historical 0.9 million 0.05 %

.90 million

Open Pit

Andria Historical 0.8 million 0.06% .95 million Open Pit

Sunset, Amazon,

Badlands Historical 1.8 million 0.06% 2.4 million Open Pit

Not NI 43-101

Compliant Total 10.8 0.08% 16.2 million Open Pit

Gas Hills Properties, Wyoming

Summer/Fall 2011 Drilling

New Mexico: Roca Honda,

installation of monitoring wells

at uranium mill site location

Wyoming: Gas Hills,

Targeting new uranium

mineralization along trend

at Day Loma


Cameco Drill Rigs Operating Near

Strathmore’s Beaver Rim Property, Gas Hills,

September, 2011

www.strathmoreminerals.com TSX:STM

www.strathmoreminerals.com TSX.: STM

Production Plans

Roca Honda, NM

Mine

Mill

Gas Hills, WY

Mine

Mill

Permitting Construction Production

RATE 1-3 Million

Pounds/year

Underground Mine

SUBJECT TO PERMITTING AND URANIUM MARKET

2011 2012 2013 2014 2015 2016 2017

RATE 0.5 - 2 Million Pounds/year


Non-Core Property Dispositions

• Closed Pine Tree-Reno Creek WY sale in 2010 to Bayswater Uranium for

US $30 million value; US $17.5 MM cash & US $2.5 MM shares

• Strathmore retains 5% gross revenue royalty valued at US $10 million

• Strathmore holds up to 4% gross revenue royalty on WY leases sold to

Peninsula Energy Q4 2009; “Lance” project targeted for 2012 production

• Juniper Ridge WY phased sale to Crosshair Energy Q4 2010; Crosshair

spent $1.9 MM in 2011; Initial NI 43-101 compliant resource estimate

completed Jan 2012; Strathmore holds 2% gross revenue royalty

• Eight additional projects available for sale or joint venture


Strathmore Uranium Projects

Currently For Sale or Joint Venture

Significant exploration and development potential

Property Summary reports available from [email protected]

• NM: Marquez: 43-101 (3.6 MM tons @ 0.126% = 9.1 million lbs M&I*) - 80 % unexplored

• NM: Church Rock: 43-101 (6.2 MM tons@ 0.10% = 11.8 million lbs M&I*) (ISR)

• NM: Nose Rock: 43-101 (.9 MM tons @ 0.14% = 2.6 million lbs M&I*) & Historical Resource

• NM: Dalton Pass: 43-101 (1.6 MM tons@ 0.10% = 3 million lbs M&I*)

• WY: Juniper Ridge: (5.2 MM tons@ 0.067% = 7 million lbs Historical (Not 43-101 compliant)

• WY: Pine Tree-Reno Creek Sold for US $30 million value cash/stock/royalties

• WY: Kaycee: Exploration potential

• WY: Copper Mountain: Historical Resource & Exploration Potential

• WY: Ketchum Buttes: Historical Resource & Exploration Potential

• WY: Sky: 43-101 (.6 MM tons @ 0.07% = 1 million lbs M&I*) & Exploration Potential (ISR)

• WY: Shirley Basin: Historical Resource & Exploration Potential

• WY: Oshoto State Leases: Exploration Potential

*See www.strathmoreminerals.com/s/ResourceTable.asp for detailed property resource summaries, including total Measured, total Indicated, & total Measured + Indicated resources.

SOLD

SOLD SOLD


• Complete US $8 MM Gas Hills drilling and permitting program

• Submit Mine Permit Application for Gas Hills

• Initiate Preparation of Gas Hills Feasibility Study Q1 2012

• Complete Roca Honda Feasibility Study Q3 2012

• Submit Peña Ranch NRC Mill license application Q3 2012

• Roca Honda EIS to be completed Q4 2012; Mine Permit

decision expected in 2013

• Continue to Monetize non-core Properties

• Review other Opportunities for Enhancing Shareholder Value

Plans for 2012


1. Strathmore Knows Uranium

Management team has extensive uranium mining experience

Advancing two core projects in the two largest Uranium Districts in USA

2. Partnered with Sumitomo & KEPCO

Roca Honda one of the largest and highest grade proposed uranium mines in the

USA in over 30 years. Strategic investment made by KEPCO with initial 14% stake

3. Large Uranium Asset Base-Non-Core Being Monetized

Leverage to higher uranium prices - Low valuation relative to peer group

Why Invest in Strathmore?


•David R. Miller, PG (Wyoming) - CEO, Director,

Strathmore Minerals Corp.

David's primary professional focus has been on

uranium exploration, development, and mining, and

his career has spanned over 20 years with a chain

of companies that started with Utah International

and evolved into AREVA, the French Nuclear

Power Conglomerate. In addition he has consulted

extensively for the IAEA (International Atomic

Energy Commission) in Austria and China. David is

a recognized expert in the nuclear and energy field

and has been seen, heard, and read in the New

York Times, BBC, CNBC, CNN, Business News

Network, Wall Street Journal, Globe and Mail, and

Barron's. He is also a co-author of "Investing in the

Great Uranium Bull Market." A fifth term member of

the Wyoming Legislature, serving District 55 --

Riverton, David has served on Minerals, Revenue,

Education, Corporations, and Health & Labor

Committees. He was an original appointee to the

Wyoming Energy Commission and currently serves

on the NCSL High Level Radioactive Waste

Committee. David graduated from the University of

Missouri with a degree in Geology and is a

Registered Professional Geologist in Wyoming. Mr.

Miller is the architect responsible for assembling

Strathmore's uranium property acquisitions in 1997,

renewing it in 2003, when the uranium price turned

upward, and subsequently implementing the

Company's current development strategy. He was

appointed President in 2004 and CEO in 2008.

•Steven Khan, MBA, CFA - Chairman, President,

Director, Strathmore Minerals Corp.

Steven Khan has spent close to twenty years in all

aspects of the investment industry, including retail,

and later institutional sales, corporate finance,

capital markets, and investment banking. He has

held several senior management roles including:

Executive Vice-President, President, Chief

Executive Officer, and Chairman of a number of

regional and national full service Canadian

investment brokerage houses that mostly focused

on venture capital financings. In 2003, he started his

own consulting firm that focused on business plan

development and capital fund raising for a number

of early stage private and public companies. In the

past several years, Mr. Khan has successfully

initiated, completed or partnered several major

corporate development initiatives both domestically

and internationally, including government partnered

ventures in China and Korea. Mr. Khan was also an

instrumental part of the team that negotiated

Strathmore's Roca Honda Joint Venture with

Sumitomo Corp of Japan in 2007. In January 2008,

after serving as Executive Vice-President since

2003, Mr. Khan accepted the position of President

of Strathmore Minerals Corp. A graduate of the

University of British Columbia with a BSc. (1978)

and MBA (1983), Mr. Khan also holds a Chartered

Financial Analyst designation (CFA), is a member of

the CFA Institute, and for many years was a long-

time Fellow of the Canadian Securities Institute.


CONTACT INFO:

Phone: 1-800-647-3303

Email: [email protected]

www.strathmoreminerals.com

#700- 1620 Dickson Ave.

Kelowna, BC V1Y 9Y2

Canada

Strathmore corporate update march 2012

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Transcript of Strathmore corporate update march 2012