Uranium One Announces 15% Increase in 2012 Production to 12.2 Million Pounds; Average Total Cash Costs of $16 per Pound Sold and

Uranium One Announces 15% Increase in 2012 Production to 12.2 Million Pounds; 
Average Total Cash Costs of $16 per Pound Sold and Attributable Sales of 11.7 
Million Pounds 
TORONTO, March 27, 2013 /CNW/ - Uranium One Inc. ("Uranium One") today 
reported record revenue of $562.9 million for 2012 at an average total cash 
cost per pound sold of $16 based on sales of 11.7 million pounds at an average 
realized sales price of $48 per pound. Attributable production for 2012 was 
12.2 million pounds. 
2012 Highlights 
Operational 


    --  Total attributable production during 2012 was a record 12.2
        million pounds, 15% higher than total attributable production
        of 10.7 million pounds during 2011.
    --  The average total cash cost per pound sold was $16 per pound
        during 2012 compared to $14 per pound during 2011.

Financial
    --  Attributable sales volumes for 2012 increased by 18% to a
        record 11.7 million pounds, compared to 9.9 million pounds sold
        during 2011.
    --  Revenue was a record $562.9 million in 2012, compared to $530.4
        million in 2011. The average realized sales price during 2012
        was $48 per pound compared to $54 per pound in 2011. The
        average spot price in 2012 was $49 per pound.
    --  Earnings from mine operations were $224.8 million during 2012,
        compared to earnings from mine operations of $262.6 million in
        2011.
    --  The net loss for 2012 was $96.7 million or $0.10 per share,
        compared to net earnings of $88.4 million or $0.09 per share
        for 2011.
    --  The adjusted net earnings for 2012 were $68.2 million or $0.07
        per share, compared to adjusted net earnings of $113.7 million
        or $0.12 per share for 2011.
    --  The carrying value of the equity investment in Mantra was
        written down by $102.3 million in Q4 2012, due to delays in the
        expected initial production, (mainly from permitting delays),
        increased capital expenditure experienced in the industry, and
        lower uranium prices.
    --  In Q3 2012, the carrying value of the Zarechnoye Mine was
        written down by $79.1 million, net of deferred taxes of $14.9
        million, due to the decrease in uranium prices and a decrease
        in the South Zarechnoye resource base.

Corporate
    --  The United Arab Emirates announced the award of $3 billion
        worth of fuel supply contracts to six global suppliers,
        including Uranium One. This long term contract will meet a
        portion of the uranium requirements of the Barakah Nuclear
        Power Station scheduled to start up by 2017.
    --  The Corporation also concluded its first Chinese contract
        during 2012, which calls for the supply of uranium to China
        Guangdong Nuclear Power Corporation in 2012 and 2013. 
    --  On October 15, 2012, the Tanzanian Ministry of the Environment
        issued an environmental impact assessment certificate to Mantra
        Tanzania in respect of the Mkuju River Project.  Issuance of
        the certificate completes Mantra's application for a Special
        Mining License for the Project and represents a significant
        permitting milestone.
    --  In January 2013, the Corporation entered into an agreement with
        ARMZ under which the Corporation would be taken private for
        cash consideration of CDN$2.86 per share. The transaction
        provides total consideration to minority shareholders of
        approximately CDN$1.3 billion and implies an equity value for
        Uranium One of approximately CDN$2.8 billion. The transaction
        was approved by shareholders on March 7, 2013 and is expected
        to close in Q2 2013 after receipt of all required regulatory
        approvals.
    --  On March 25, 2013, the Corporation arranged a three year, $1.45
        billion revolving unsecured credit facility with ARMZ; drawings
        under the facility bear interest at the rate of 3.3%.  On March
        26, 2013, the Corporation drew down the facility as it
        evaluates initiatives to expand its business.

Outlook
    --  Total attributable production for 2013 and 2014 is estimated to
        be 12.5 million and 13.0 million pounds, respectively.
    --  During 2013, the average cash cost per pound sold is expected
        to be approximately $19 per pound.
    --  The Corporation expects attributable sales to be approximately
        12.5 million and 13.0 million pounds in 2013 and 2014,
        respectively.
    --  The Corporation expects to incur attributable capital
        expenditures in 2013 of $107 million for wellfield development
        and $66 million for plant and equipment, totalling $173 million
        for its assets in Kazakhstan, the United States and Australia.
    --  In 2013, general and administrative expenses, excluding
        non-cash items, are expected to be approximately $40 million
        and exploration expenses are expected to be $8 million.

2012 Operations and Projects

During 2012, Uranium One achieved attributable production of 12.2 million 
pounds, an increase of 15% over attributable production of 10.7 million pounds 
in 2011.

Operational results for Uranium One's assets during 2012 were:

 _____________________________________________________________________
|         Asset   |2012 Attributable Production|2012 Total Cash Costs |
|                 |       (lbs U(3)O(8))       |(per lb sold U(3)O(8))|
|_________________|____________________________|______________________|
|Akdala           |              1,992,600     |              $13     |
|_________________|____________________________|______________________|
|South Inkai      |              3,403,200     |              $18     |
|_________________|____________________________|______________________|
|Karatau          |              2,775,500     |              $11     |
|_________________|____________________________|______________________|
|Akbastau         |              1,563,200     |              $11     |
|_________________|____________________________|______________________|
|Zarechnoye       |              1,216,200     |              $24     |
|_________________|____________________________|______________________|
|Kharasan((1))    |               454,100      |              $27     |
|_________________|____________________________|______________________|
|Willow Creek((2))|               620,900      |              $45     |
|_________________|____________________________|______________________|
|Honeymoon((3))   |               220,800      |              N/A     |
|_________________|____________________________|______________________|
|Total            |             12,246,500     |              $16     |
|_________________|____________________________|______________________|

(1)      Production before and after the completion of commissioning
         during
         2012 was 697,600 pounds (269 tonnes of U) and 816,000 pounds
         (314 tonnes of U) respectively, of which 454,100 pounds
         (174 tonnes U) was attributable to the corporation.

(2)      Production before and after the completion of commissioning
         during
         2012 was 140,300 pounds (54 tonnes U) and 480,600 pounds
         (185 tonnes U), respectively, for a total of 620,900 pounds
         (239 tonnes U) for the year.

(3)      Production in commissioning from Honeymoon was 340,200 pounds
         (131 tonnes U) during 2012, of which 220,800 pounds (85 tonnes
         U)
         was attributable to the Corporation.

2012 Financial Review

Revenue was a record $562.9 million in 2012, compared to $530.4 million in 
2011. The average realized sales price during 2012 was $48 per pound compared 
to $54 per pound in 2011. The average spot price in 2012 was $49 per pound.

Operating expenses per pound sold were $16 for 2012 compared to $14 in 2011.

Earnings from mine operations were $224.8 million during 2012, compared to 
earnings from mine operations of $262.6million in 2011.

Attributable inventory as at December 31, 2012 was 3.7 million pounds, which 
includes work in progress as well as finished product. Finished product at 
conversion facilities awaiting pre-scheduled deliveries into sales contracts 
was 0.9 million pounds at December 31, 2012.

The net loss for 2012 was $96.7 million or $0.10 per share, compared to net 
earnings of $88.4 million or $0.09 per share for 2011.

The adjusted net earnings for 2012 were $68.2 million or $0.07 per share, 
compared to adjusted net earnings of $113.7million or $0.12per share for 
2011.

Consolidated cash and cash equivalents were $454.8 million as at December 31, 
2012 compared to $619.0 million at December 31, 2011. Working capital was 
$656.1 million at December 31, 2012.

The following table provides a summary of key financial results:
                                                              

FINANCIAL                       Q4 2012   Q4 2011    FY 2012    FY 2011

Attributable production (lbs)
((1))                         3,223,500 3,156,200 11,676,100 10,057,200

Attributable sales (lbs) (
(1))                          5,136,000 3,161,200 11,694,800  9,881,400
                                                                       

Average realized sales price
($ per lb) ((2))                     44        50         48         54

Average total cash cost per
pound sold ($ per lb)((2))           17        15         16         14

Revenues ($'millions)             227.6     157.9      562.9      530.4

Earnings from mine operations
($'millions)                       76.6      76.0      224.8      262.6

Net (loss) / earnings 
($'millions)                     (68.8)     (1.1)     (96.7)       88.4

Net (loss) / earnings per
share - basic and diluted ($
per share)                       (0.07)    (0.00)     (0.10)       0.09
                                                                       

Adjusted net earnings
($'millions)((2))                  34.9      21.4       68.2      113.7

Adjusted net earnings per
share - basic ($ per share)(
(2))                               0.04      0.02       0.07       0.12

(1)      Attributable production and sales are from assets owned and in
         commercial production during the period.
         Willow Creek and Kharasan reached commercial production levels
         effective from May 1, 2012 and
         July 1, 2012, respectively and sales and production results
         for these mines are included in the operating
         results for the periods after these dates.

(2)      The Corporation has included non-GAAP performance measures:
         average realized sales price per pound,
         cash cost per pound sold, adjusted net earnings and adjusted
         net earnings per share. In the uranium
         mining industry, these are common performance measures but do
         not have any standardized meaning,
         and are non-GAAP measures. The Corporation believes that, in
         addition to conventional measures prepared
         in accordance with GAAP, the Corporation and certain investors
         use this information to evaluate the
         Corporation's performance and ability to generate cash flow.
         The additional information provided herein
         should not be considered in isolation or as a substitute for
         measures of performance prepared in
         accordance with GAAP.

The following table provides a reconciliation of adjusted net earnings / 
(loss) to the consolidated financial statements:
                                                            

(US DOLLARS IN              3 MONTHS ENDED               YEAR ENDED
MILLIONS EXCEPT
PER SHARE            DEC 31, 2012 DEC 31,2011 DEC 31, 2012 DEC 31, 2011
AMOUNTS)              $'MILLIONS  $'MILLIONS   $'MILLIONS   $'MILLIONS

Net (loss) /               (68.8)       (1.1)       (96.7)         88.4
earnings

Fair value                  (0.3)         3.9            -          2.6
adjustments

Impairment charges          102.3           -        181.4            -
(net of deferred
taxes of $14.9
million)

Gain on business                -           -       (17.2)            -
combination

Care and                      0.3         0.3          1.5          1.2
maintenance costs

Corporate                     0.1         0.2          2.7          1.2
development
expenditure

Restructuring                 0.7         1.4          2.2          3.6
costs

Ruble bond hedge              0.6           -          4.7            -
accounting
adjustments

Non-recurring                   -        16.7       (10.4)         16.7
income tax
adjustment

Adjusted net                 34.9        21.4         68.2        113.7
earnings
                                                                       

Adjusted net                 0.04        0.02         0.07         0.12
earnings per share
- basic ($) and
diluted

Weighted average            957.2       957.2        957.2        957.2
number of shares
(millions) - basic
and diluted

The financial statements, as well as the accompanying management's discussion 
and analysis, are available for review at www.uranium1.com and should be read 
in conjunction with this news release. All figures are in U.S. dollars 
unless otherwise indicated. All references to pounds sold or pounds produced 
are to pounds of U(3)O(8).

Going Private Transaction

On January 13, 2013, the Corporation entered into a definitive agreement (the 
"Arrangement Agreement") with ARMZ under which the Corporation would be taken 
private pursuant to a plan of arrangement (the "Plan of Arrangement"). ARMZ 
and its affiliates currently own 51.4% of the Corporation's outstanding common 
shares ("Common Shares").

Under the Plan of Arrangement, ARMZ will acquire all of the Common Shares that 
ARMZ and its affiliates do not already own for cash consideration of CDN$2.86 
per share. The transaction provides total consideration to minority 
shareholders of approximately CDN$1.3 billion and implies an equity value for 
Uranium One of approximately CDN$2.8 billion.

The implementation of the Plan of Arrangement was approved by the 
Corporation's shareholders and option holders at a special meeting held on 
March 7, 2013. In accordance with an interim order of the Ontario Superior 
Court of Justice dated February 6, 2013, the transaction was subject to the 
affirmative vote of two-thirds of the Corporation's shareholders and option 
holders, as well as a majority of the minority shareholders. At the meeting, 
approximately 95.7% of the votes cast by the holders of the Common Shares, and 
95.7% of the votes cast by the holders of the Common Shares and options voting 
together as one class, were voted in favour of the Plan of Arrangement. In 
addition, approximately 86% of the votes cast by minority shareholders, i.e. 
shareholders other than ARMZ, its affiliates and related parties, and those 
senior officers of Uranium One who hold options, were voted in favour of the 
Plan of Arrangement.

The transaction is subject to applicable regulatory approvals and certain 
closing conditions customary in transactions of this nature, the details of 
which are outlined in the Corporation's management information circular for 
the special meeting dated February 8, 2013. The Corporation has obtained US, 
Russian, Australian and South African regulatory approvals and continues to 
diligently pursue all required remaining approvals. The transaction is 
expected to close in the second quarter of 2013.

Within 30 days of completion of the transaction, the Corporation will make an 
offer to purchase the $259,985,000 aggregate principal amount of 7.5% (re-set 
to 5%) convertible unsecured subordinated debentures due March 13, 2015 in 
accordance with the terms of the trust indenture governing the debentures.

About Uranium One

Uranium One is one of the world's largest publicly traded uranium producers 
with a globally diversified portfolio of assets located in Kazakhstan, the 
United States, Australia and Tanzania.

Cautionary Statement

No stock exchange, securities commission or other regulatory authority has 
approved or disapproved the information contained herein.

Investors are advised to refer to independent technical reports containing 
detailed information with respect to the material properties of Uranium One. 
These technical reports are available under the profile of Uranium One Inc. at 
www.sedar.com. Those technical reports provide the date of each resource or 
reserve estimate, details of the key assumptions, methods and parameters used 
in the estimates, details of quantity and grade or quality of each resource or 
reserve and a general discussion of the extent to which the estimate may be 
materially affected by any known environmental, permitting, legal, taxation, 
socio-political, marketing, or other relevant issues. The technical reports 
also provide information with respect to data verification in the estimation.

Forward-looking statements: This press release contains certain 
forward-looking statements. Forward-looking statements include but are not 
limited to those with respect to the price of uranium, the estimation of 
mineral resources and reserves, the realization of mineral reserve estimates, 
the timing and amount of estimated future production, the timing of uranium 
processing facilities being fully operational, costs of production, capital 
expenditures, costs and timing of the development of new deposits, success of 
exploration activities, permitting time lines, currency fluctuations, market 
conditions, corporate plans, objectives and goals, requirements for additional 
capital, government regulation of mining operations, the estimation of mineral 
resources and reserves, the realization of resource and reserve estimates, 
environmental risks, unanticipated reclamation expenses, the timing and 
potential effects of proposed acquisitions, title disputes or claims and 
limitations on insurance coverage and the timing and possible outcome of 
pending litigation. In certain cases, forward-looking statements can be 
identified by the use of words such as "plans", "expects" or "does not 
expect", "is expected", "budget", "scheduled", "estimates", "forecasts", 
"intends", "anticipates" or "does not anticipate", or "believes" or variations 
of such words and phrases, or state that certain actions, events or results 
"may", "could", "would", "might" or "will" be taken, occur or be achieved. 
Forward-looking statements involve known and unknown risks, uncertainties and 
other factors which may cause the actual results, performance or achievements 
of Uranium One to be materially different from any future results, performance 
or achievements expressed or implied by the forward-looking statements. Such 
risks and uncertainties include, among others, the completion of the projects 
described in this press release, the future steady state production and cash 
costs of Uranium One, the actual results of current exploration activities, 
conclusions of economic evaluations, changes in project parameters as plans 
continue to be refined, possible variations in grade and ore densities or 
recovery rates, failure of plant, equipment or processes to operate as 
anticipated, possible shortages of sulphuric acid in Kazakhstan, possible 
changes to the tax code in Kazakhstan, accidents, labour disputes or other 
risks of the mining industry, delays in obtaining government approvals or 
financing or in completion of development or construction activities, risks 
relating to the integration of acquisitions and the realization of synergies 
relating thereto, to international operations, to prices of uranium, as well 
as those factors referred to in the section entitled "Risk Factors" in Uranium 
One's Annual Information Form for the year ended December 31, 2011, which is 
available on SEDAR at www.sedar.com, and which should be reviewed in 
conjunction with this document. Although Uranium One has attempted to identify 
important factors that could cause actual actions, events or results to differ 
materially from those described in forward-looking statements, there may be 
other factors that cause actions, events or results not to be as anticipated, 
estimated or intended. There can be no assurance that forward-looking 
statements will prove to be accurate, as actual results and future events 
could differ materially from those anticipated in such statements.

Accordingly, readers should not place undue reliance on forward-looking 
statements. Uranium One expressly disclaims any intention or obligation to 
update or revise any forward-looking statements, whether as a result of new 
information, future events or otherwise, except in accordance with applicable 
securities laws.

For further information about Uranium One, please visit www.uranium1.com.







Chris Sattler Chief Executive Officer Tel: +1 647 788 8500

Anton Jivov Vice President, Corporate Affairs Tel: +1 647 788 8461

SOURCE: Uranium One Inc.

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CO: Uranium One Inc.
ST: Ontario
NI: MNG ERN 

-0- Mar/27/2013 13:44 GMT


 
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