Strathmore Minerals September Corporate Presentation

Strathmore Minerals Corp
Corporate Update
Corporate Update

September, 2012

1
www.strathmoreminerals.com TSX: STM

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 estimates were completed prior to the implementation of NI 43-101. A qualified person
has not completed sufficient work to classify the historic estimates current mineral resources, and is
not treating the historic estimates as current mineral resources. Hence, they should not be relied
upon. Strathmore cautions that reference to Preliminary Economic Assessment (PEA) is preliminary
in nature and includes inferred resources that are considered to be too speculative geologically for
economic consideration that would enable them to be classified as mineral reserves. There is no
certainty that the PEA will be realized. 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 .

2

SHARE STRUCTURE

SHARE PROFILE
Stock Symbol: STM (TSX)
STHJF (OTCQX)
Working Capital Estimate: C $14.3 MM

123,274,620 shares outstanding

134,741,953 shares fully diluted

Korea Electric Power Corp (KEPCO) owns ~11.8%
3

Uranium Market
“BEAT THE ATOMIC CLOCK- URANIUM SUPPLY CRUNCH AND CRITICAL CATALYSTS ON
THE HORIZON...” David Sadowski, Raymond James (July 26 , 2012)

Current Spot
Price (Sept 10)

US $48.00 /lb

Long-Term
Price (Aug)

US $60.50 /lb

Source: The Ux Consulting Company LLC : www.uxc.com

Uranium price forecast: 2012 - US $58, 2013 - US $70 , 2014 - US $85
Mark Busuttil, JP Morgan (April 2012)

China, India, & South Korea constructing 37 nuclear power plants; 234 planned
China, India, & South Korea all net importers of uranium
4

Management Team & Directors
David Miller, PG (Wyoming) - CEO, Director
Steven Khan, MBA, CFA - 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
Dieter Krewedl, Independent Director-Renaissance Gold, AuEx Ventures
Tim Janke, Independent Director-Renaissance Gold, AuEx Ventures
Ralph Goehring, Independent Director - Former CFO Berry Petroleum
5

Corporate Strategy
To become a leading uranium
producer in the United States
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

6

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 and gold experience
• Advanced Company Maker Projects
• Roca Honda, NM - Mine permit decision expected in 2013
• Gas Hills, WY - Mine permit application submittal in 2012
• Copper King, WY - Positive Au-Cu PEA received
• Long-life mineral assets in politically stable region
7

Why the United States ?
60 United States Uranium Production and
Consumption 1980/2010

50

40

30

20

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Production Consumption Production Consumption

Millions lbs U3O8 1980 2011

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 3.9 million lbs (2011)

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
8

Where Did it Come From?
US Production: Where was it Mined?
Tonnes U
Pounds U3O8

400,000,000 New Mexico 150,000

300,000,000
Wyoming 100,000

200,000,000
Utah Colorado 50,000
100,000,000 Texas
Arizona
0 Nebraska

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Largest Uranium Reserves In Wyoming & New Mexico

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Copper
Mountain Kaycee

Gas Hills

Jeep

Sky -
(Cedar
Rim)
Shirley
Basin
Juniper
Ridge

Nose Rock

Church Rock

Dalton Pass

Roca Honda
Ambrosia Lake
Leases Marquez

11

33.0 Million M&I NI 43-101 lbs U3O8
22.7 Million Inferred 43-101 lbs U308
Property Resource Grade lbs. U3O8 Method

Roca Honda, NM Measured 1.30 MM @ 0.23% 6.00 million Underground
Indicated 2.40 MM @ 0.23% 11.50 million
M&I 3.70 MM @ 0.23% 17.50 million
Inferred 4.50 MM @ 0.17% 15.80 million

Marquez, NM Measured 1.00 MM @ 0.13% 2.50 million ISR or Underground
M&I 3.60 MM @ 0.13% 9.10 million
Nose Rock, NM Measured 0.31 MM @ 0.15% 0.90 million Underground
M&I 0.88 MM @ 0.15% 2.50 million
Dalton Pass, NM Measured 0.45 MM @ 0.09% 0.80 million ISR / Underground
M&I 1.60 MM @ 0.10% 3.00 million
Sky, WY Indicated 0.66 MM @ 0.07% 0.90 million ISR
12

Permitting for Production
Roca Honda, New Mexico
Mine Permit Review Underway

13

GRANTS MINERAL BELT
New Mexico
Largest Uranium District in the U.S.
340 Million pounds produced

WY
UT
CO
NM

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Grants Mineral District
• 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

15

Roca Honda Resources LLC Joint Venture
(Strathmore 60% / Sumitomo 40%)
“Company Maker” Project - One of the Largest & Highest Grade proposed
uranium mines in US in over 30 years

Roca Honda Resource Summary

Previous Operator Resource Classification Tonnage Grade % U308 lbs U308
NI 43-101 Measured 1,305,000 0.23 6,035,000
Kerr McGee NI 43-101 Indicated 2,477,000 0.23 11,477,000
NI 43-101 M + I 3,782,000 0.23 17,512,000
NI 43-101 Inferred 4,546,000 0.17 15,832,000

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Roca Honda Mine Permit Submitted Oct 2009

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• Mine Development office opened in Santa Fe, 2005

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

• Preliminary Economic Assessment (PEA) prepared by
Roscoe Postle Associates Inc under internal review

• 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
18


New Mineralized Zone found in monitor well.
Monitor Well Drilling and Installation Chemical Analysis 10’ grading 0.67% U308
6’ grading 0.73% U308

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Permitting for Production
GAS HILLS, WYOMING
Mine Permit Application Submittal in 2012

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GAS HILLS URANIUM DISTRICT
WYOMING

WY
GAS HILLS

NM
URANIUM DISTRICT
100 Million pounds produced
NO INFRASTRUCTURE ISSUES

• Paved Road (45 miles)
• Big Electric Power installed
• Natural Gas available
• Geothermal available
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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
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KEPCO Agreement
• Korea Electric Power (KEPCO) acquired ~11.8% 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

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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

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Gas Hills, Wyoming
STM Holdings - 35,000 acres

Unmined
Uranium Roll-Front
Deposit

Near surface open pit deposits NI 43-101 Inferred Resource 2.2 MM tons @ 0.12%
U308 Total – 5.6 million lbs
Historical Estimate (Not NI 43-101 Compliant)
9.7 MM tons @ 0.07% U3O8 - 13.8 MM lbs
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Gas Hills Properties, Wyoming
Deposit Resource Tonnage Grade lbs. U3O8 Method

Day Loma NI 43-101 1,600,000 0.15% 4,700,000 Open Pit
Inferred
Rock Hill NI 43-101 600,000 0.07% 900,000 Open Pit
Inferred
Loco Lee Historical 3,369,000 0.07% 4,644,000 Open Pit

Frazier Lamac Historical 697,000 0.11% 1,522,000 Open Pit

George-Ver Historical 1,031,000 0.07% 1,493,000 Open Pit

Bull Rush Historical 1,737,000 0.07% 2,307,000 Open Pit

Andria Historical 750,000 0.06% 950,000 Open Pit
Sunset, Amazon, Historical 1,843,000 0.06% 2,395,000 Open Pit
Badlands

Jeep Historical 297,000 0.08% 463,000 Open Pit
26

CAMECO PROPERTY
STRATHMORE PROPERTY

Cameco Drill Rigs Operating Near
Strathmore’s Beaver Rim Property, Gas Hills,
September, 2011
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www.strathmoreminerals.com TSX:STM

2011/2012 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


Production Plans
2011 2012 2013 2014 2015 2016 2017 2018
Roca Honda, NM

Underground Mine

Mine

Mill

Gas Hills, WY Permitting Construction Production

Mine Open Pit

Mill

SUBJECT TO PERMITTING AND URANIUM MARKET
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Au-Cu Exploration & Development
Copper King, WYOMING

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Saratoga Gold Acquisition
• Acquired Saratoga Gold Copper King Au-Cu project located
in Wyoming near the Company’s base of operations (May 2012)

Copper King NI 43-101 Measured, Indicated & Inferred Resource
Au-equivalent Cutoff: 0.015 oz/ton/0.51g/tonne

Classification Tons Au Grade Au Grade Total Oz Cu Grade Total Cu lbs

Measured 15,130,000 0.018 oz/t 0.62 g/t 272,000 0.199% 60,120,000
Indicated 44,620,000 0.015 oz/t 0.50 g/t 654,000 0.183% 162,880,000
Total M+I 59,750,000 0.015 oz/t 0.54 g/t 926,000 0.187% 223,000,000

Inferred 15,620,000 0.011 oz/t 0.38 g/t 174,000 0.200% 62,530,000

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Positive PEA Results Received
• Base Case NPV US $159.5 MM (5% Discount), including 5% State
Royalty using US $1,100 / oz gold and US $3.00/lb Copper

• 31.2% Pre-Tax Internal Rate of Return

• Base Capital Cost US $104 million - 2.4 year Payback

• 18 Year Mine Life by open-pit method & 10,000 ton/day average
processing rate; Average Recoveries 72% Gold and 79% Copper

• Ave. Annual Production 38,655 oz Au & 10.47 million lbs Cu

• Recoverable resource totals 695,800 oz Au & 188.6 million lbs Cu
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COPPER KING PROJECT
COPPER KING Au-Cu PROJECT

Mineralized trend

Orebody

photo

200
Feet
9/13/2012 N 34

COPPER KING PROJECT

Next Photo

Orebody

200
Gold and Copper Mineralization on outcrop.
Feet
9/13/2012
35

COPPER KING PROJECT

Orebody

200
Feet
9/13/2012
36

Copper King Project Recommendations

• Two Phase US $2.55 MM program over three years recommended

• Phase I includes permitting, environmental studies, and further
exploration & expansion drilling

• Upon successful completion, Phase II initiates formal permitting
& development process

• Budget and Program Plans under internal review.

37

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 – 2012 production targeted

• 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
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Strathmore Uranium Projects
Currently For Sale or Joint Venture
Significant exploration and development potential
Property Summary reports available from davidmiller@wyoming.com

• 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*)
SOLD
• WY: Juniper Ridge: (5.2 MM tons@ 0.067% = 7 million lbs Historical (Not 43-101 compliant)
SOLD
• 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
SOLD
• 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.
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Plans for 2012
• Complete US $8 MM Gas Hills drilling and permitting program
• Submit Mine Permit Application for Gas Hills
• Complete Roca Honda Preliminary Economic Assessment (PEA)
• Complete Roca Honda Feasibility Study; Complete Environmental
Impact Statement (EIS); Mine Permit decision expected in 2013
• Submit Peña Ranch NRC Mill license application
• Continue to Monetize non-core Properties
• Initiate project development plans at Copper King Au-Cu Property

40

Why Invest in Strathmore?
1. Strathmore Knows Mining
Management team has extensive mining experience in both yellow metals
Advancing two core uranium projects; significant local gold project acquired

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 11.8% stake

3. Large Uranium Asset Base-Non-Core Being Monetized
Leverage to higher uranium prices – Little or no valuation given to gold project

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•David R. Miller, PG (Wyoming) - CEO, Director, •Steven Khan, MBA, CFA - Chairman, President,
Strathmore Minerals Corp. Director, Strathmore Minerals Corp.

David's primary professional focus has been on Steven Khan has spent close to twenty years in all
uranium exploration, development, and mining, and aspects of the investment industry, including retail,
his career has spanned over 20 years with a chain and later institutional sales, corporate finance,
of companies that started with Utah International capital markets, and investment banking. He has
and evolved into AREVA, the French Nuclear held several senior management roles including:
Power Conglomerate. In addition he has consulted Executive Vice-President, President, Chief
extensively for the IAEA (International Atomic Executive Officer, and Chairman of a number of
Energy Commission) in Austria and China. David is regional and national full service Canadian
a recognized expert in the nuclear and energy field investment brokerage houses that mostly focused
and has been seen, heard, and read in the New on venture capital financings. In 2003, he started his
York Times, BBC, CNBC, CNN, Business News own consulting firm that focused on business plan
Network, Wall Street Journal, Globe and Mail, and development and capital fund raising for a number
Barron's. He is also a co-author of "Investing in the of early stage private and public companies. In the
Great Uranium Bull Market." A fifth term member of past several years, Mr. Khan has successfully
the Wyoming Legislature, serving District 55 -- initiated, completed or partnered several major
Riverton, David has served on Minerals, Revenue, corporate development initiatives both domestically
Education, Corporations, and Health & Labor and internationally, including government partnered
Committees. He was an original appointee to the ventures in China and Korea. Mr. Khan was also an
Wyoming Energy Commission and currently serves instrumental part of the team that negotiated
on the NCSL High Level Radioactive Waste Strathmore's Roca Honda Joint Venture with
Committee. David graduated from the University of Sumitomo Corp of Japan in 2007. In January 2008,
Missouri with a degree in Geology and is a after serving as Executive Vice-President since
Registered Professional Geologist in Wyoming. Mr. 2003, Mr. Khan accepted the position of President
Miller is the architect responsible for assembling of Strathmore Minerals Corp. A graduate of the
Strathmore's uranium property acquisitions in 1997, University of British Columbia with a BSc. (1978)
renewing it in 2003, when the uranium price turned and MBA (1983), Mr. Khan also holds a Chartered
upward, and subsequently implementing the Financial Analyst designation (CFA), is a member of
Company's current development strategy. He was the CFA Institute, and for many years was a long-
appointed President in 2004 and CEO in 2008. time Fellow of the Canadian Securities Institute.

42

Notes:
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www.strathmoreminerals.com TSX.: STM

CONTACT INFO:

Phone: 1-800-647-3303
Email: info@strathmoreminerals.com
www.strathmoreminerals.com

#312- 1708 Dolphin Ave.
Kelowna, BC V1Y 9S4
Canada

44

Strathmore Minerals September Corporate Presentation

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