The scoping study was conducted by Scott Wilson Roscoe Postle Associates Inc. (“Scott Wilson RPA”) with the participation of Melis Engineering Ltd. for processing and SD Energy Associates Ltd. for marketing and price determination.

The revised Preliminary Assessment is based on the National Instrument 43-101 compliant indicated and inferred resource estimate done by Scott Wilson RPA in September, 2009.

Mineral Resource Estimate for Matoush, September 1, 2009
	Tonnes	Grade	Pounds U₃O₈
	(x 1,000)	(% U₃O₈)	(x 1,000)
Indicated
AM-15	262	0.70	4,039
MT-34	174	0.89	3,420
Total Indicated	436	0.78	7,458

Inferred
AM-15	33	0.34	249
MT-22	822	0.53	9,526
MT-34	302	0.45	3,003
Total Inferred	1,157	0.50	12,777

Notes:

1. CIM Definition Standards have been followed for classification of Mineral Resources.

2. The cut-off grade of 0.1% U₃O₈ was estimated using a U₃O₈price of US$75/lb and assumed operating costs.

3. High U₃O₈ grades were cut to 9%.

4. The Mineral Resource estimate uses drill hole data available as of September 1, 2009.

5. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.

6. Totals may not sum correctly due to rounding.

The Preliminary Assessment is based in part on inferred resources, and is preliminary in nature. Inferred resources are considered too geologically speculative to have mining and economic considerations applied to them and to be categorized as Mineral Reserves. There is no certainty that the reserves development, production and economic forecasts on which this preliminary assessment is based will be realized.

I PRODUCTION AND RECOVERED METAL

The mining plan was based on mineral resources with factors applied for dilution and extraction. Recovered metal is based on metallurgical tests done at SGS Lakefield Research Ltd. in Lakefield, ON; an average of 97.6% recovery is used. Potential grade implied mining dilution at 15% at zero value. Mill design was modified to increase annual mill capacity from 2.0 M to 2.7 M pounds U₃O₈.

Year	Mill Feed (x 1,000) Tonnes	Grade % U₃O₈	Recovered Metal 97.6% (x 1,000 pounds) U₃O₈
1	169.8	0.639	2,391.3
2	240.6	0.400	2,124.2
3	262.7	0.461	2,668.9
4	262.2	0.522	3,018.9
5	249.5	0.561	3,085.0
6	224.1	0.496	2,451.2
7	239.6	0.468	2,472.3
TOTAL	1,648.6	0.501	17,774.8

II REVENUE

The price scenario was established by SD Energy in September 2008, in the initial scoping study, with a long-term price of US$60.00 to US$90.00 per pound U₃O₈over the life of the project and an evaluation price of US$75.00 per pound U₃O₈.
The US$/CAN$ exchange rate is 0.85.
Transport to smelter in North America is $0.10 per pound.
Royalty 2%

	(x 1,000) CAN$
Gross revenue	1,568,363
Transport to smelter	1,777
Royalty	31,332
NSR Gross revenue after the royalty	1,535,253

III OPERATING COSTS (CAN$)

Mining	$91.64/T milled	Maintenance	$24.86/T milled
Process	$92.74/T milled	Site services	$32.68/T milled
Power (generators)	$35.77/T milled	G&A	$22.43/T milled
Average Operating Cost: $300.12/T milled
CAN$27.84/pound		US$23.66/pound

IV OPERATING PROFIT

Year	CAN$	Year	CAN$
1	131,819,000	5	189,170,000
2	107,096,000	6	136,345,000
3	153,437,000	7	139,824,000
4	182,793,000
Total Operating Profit: CAN$1,040,484,000

V CAPITAL COSTS

	(x 1,000) CAN$	(x 1,000) CAN$
Direct Capital Costs		191,009
Mine	32,466
Process	143,146
Infrastructure	15,398

Indirect Capital Costs		48,568

Contingency		52,273

Capital Spare		980
Before Start Up		292,830

Sustaining Capital (6 years)		19,126

Closure		30,000
Mine Life Capital Costs		341,955

VI FINANCIAL VII SENSITIVITY TO PRICE

Internal Rate of Return before Tax: 41.5%

NET PRESENT VALUE (NPV) before Tax
Discount Rate %	(x 1,000) CAN$
5	475,550
8	377,640
10	323,530
15	218,070

PRICE	US$/lb	NPV
	75.00	$ 323,530
0.67	50.00	$ 31,700
O.80	60.00	$ 148,260
1.00	75.00	$ 323,530
1.07	80.00	$ 381,890
1.14	85.50	$ 446,220

2008

Click here to read the complete report dated December 17, 2008, Part 1 and Part 2.

Strateco carried out the first economic assessment of its Matoush uranium exploration property as a basis for the underground uranium exploration program. The scoping study is based on the NI 43-101 compliant indicated and inferred resource estimate established by Scott Wilson RPA in its Technical Report on the Mineral Resource Update for the Matoush Uranium Project, dated September 16, 2008. The scoping study on Matoush indicates very strong economics.

The scoping study contains many sections that were given to different firms known for their expertise in the subject.

Scott Wilson RPA with the participation of Melis Engineering Ltd for capital and processing costs.

Golder Associates for radiation, environment and reclamation costs.

SD Energy Associates Ltd (SD Energy) for marketing and price determination.

Melis Engineering Ltd for metallurgical testwork.

Cautionary Notes

The preliminary assessment is preliminary in nature, it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary assessment will be realized.
Mineral resources that are not mineral reserves do not have demonstrated economic viability.

I ORE PRODUCTION AND RECOVERED METAL

The mining plan was developed on mineral resources configuration. Recovered metal is based on metallurgical tests done at SGS Lakefield Research Ltd in Lakefield, ON; an average of 97.6% recovery is used.

Year	Mill Feed (x 1,000) Tonnes	Grade % U₃O₈	Recovered Metal 97.6% (x 1,000 pounds) U₃O₈
1	175.0	0.633	2,382
2	236.3	0.454	2,306
3	262.5	0.362	2,046
4	262.5	0.553	3,124
5	262.5	0.439	2,479
6	262.5	0.372	2,100
7	188.4	0.267	1,082
TOTAL	1,649.7	0.437	15,519

II REVENUE

The price scenario was established by SD Energy with a long term price from US$60.00 to US$90.00 per pound U₃O₈over the life of the project with an evaluation price of US$75.00 per pound U₃O₈.

The US$/CAN$ exchange rate is 0.85.

Transport to smelter in North America is $0.10 per pound.

Royalty 2%.

	(x 1,000) CAN$
Gross revenue	1,369,515
Transport to smelter	(1,552)
Royalty	(27,359)
NSR Gross revenue after the royalty	1,340,604

III OPERATING COSTS

Mining	$82.80/T milled	Maintenance	$24.84/T milled
Process	$107.77/T milled	Site services	$28.96/T milled
Power (generators)	$35.75/T milled	G&A	$22.41/T milled
Average Operating Cost: $302.53/T milled
CAN$32.15/pound		US$27.33/pound

IV OPERATING PROFIT

Year	(x 1,000) CAN$	Year	(x 1,000) CAN$
1	133,894	5	142,051
2	128,177	6	109,992
3	105,145	7	23,809
4	198,453
Total Operating Profit: CAN$841,522,000

V CAPITAL COSTS

	(x 1,000) CAN$	(x 1,000) CAN$
Direct Capital Costs		193,443
Mine	28,159
Process	149,886
Infrastructure	15,398

Indirect Capital Costs		49,928

Contingency		53,305

Capital Spare		575

Before Start Up		297,251

Sustaining Capital (6 years)		15,564

Closure		30,000

Mine Life Capital Costs		342,815

VI FINANCIAL

Internal Rate of Return before Tax: 37.1%

NET PRESENT VALUE (NPV) before Tax
Discount Rate %	(x 1,000) CAN$
5	341,610
8	271,200
10	231,850
15	154,110

VII SENSITIVITY TO LBS PRODUCED

Total lbs (x 1,000)	NPV @ 10% (x 1,000 CAN$)	IRR (before taxes)
15,521	231,850	37.1%
20,000	326,970	40.4%
22,500	375,890	41.4%
25,000	419,870	42.0%
27,500	459,400	42.3%
30,000	494,920	42.6%

Due to the growth in mineral resources and grade and the reduction of various estimated operating costs, the scoping study done in the fall of 2008 will be updated in the coming months. We expect the estimated production cost of US$27.33 per pound of U₃O₈ to come down.