Uranium One Announces Kazakh Litigation Proceedings

 TORONTO, March 27, 2014 /CNW/ - Uranium One Inc. ("Uranium One" or the  "Company") announced that the Special Inter-District Economic Court for the  City of Astana (Republic of Kazakhstan) on March 26, 2014 issued an order  having the effect of invalidating the original transfers in 2004 and 2005 from  Kazatomprom to the Company's Betpak Dala and Kyzylkum joint ventures of the  subsoil use contracts for the Akdala, South Inkai and Kharasan fields.  While the proceedings before the Court were held behind closed doors and only  limited information has been made available, Uranium One understands that the  ruling was made orally in proceedings brought by the State Prosecutor of the  Saryark District of the City of Astana against Betpak Dala, Kyzylkum and  Kazatomprom, among other parties, and relates to events which occurred two to  three years before Uranium One acquired its interest in the two joint ventures.  Under Kazakh law, the order is automatically stayed and may not be enforced  for a period of 15 days and such additional time as it may take to hear an  appeal therefrom, and is also subject to further appeals.  Both joint ventures  intend to vigorously defend themselves in the Kazakhstan courts and plan to  file notices appealing the order. The Company considers the lawsuit to be  without merit.  Neither Uranium One nor its shareholders are parties to the proceedings.  Kazatomprom, the Company's Kazakh state-owned joint venture partner in  Kazakhstan, has, however, assured the Company and its shareholders that their  legal rights and economic interests will be fully preserved.  The Company and  its shareholders are now in discussions with Kazatomprom with a view to  obtaining new subsoil use rights to the Akdala, South Inkai and Kharasan  fields in the event that the order becomes effective. While those discussions  are underway, and in order to mitigate the impact on the Company's interests,  Kazatomprom, Betpak Dala and Kyzylkum are putting in place temporary  arrangements designed to ensure that, notwithstanding the court order, Betpak  Dala and Kyzylkum carry on normal business operations and the rate of return  to the Company from existing operations is unaffected during this period.  The  Company's shareholder, Uranium One Holding N.V., and Kazatomprom have signed  protocols to this effect and are taking the steps necessary to ensure that  scheduled production and deliveries to customers are not affected.  The Company and its shareholders have reserved their rights to take all such  steps, and exercise all such remedies available to them, including proceedings  under international investment treaties, as they may consider necessary or  advisable to protect their legal rights and economic interests in this matter.  About Uranium One  Uranium One is one of the world's largest uranium producers with a globally  diversified portfolio of assets located in Kazakhstan, the United States,  Australia and Tanzania. ROSATOM State Atomic Energy Corporation, through its  affiliates, owns 100% of the outstanding common shares of Uranium One.  Cautionary Statements  No stock exchange, securities commission or other regulatory authority has  approved or disapproved the information contained herein.  Forward-looking statements and risk factors: This news release contains  certain forward-looking statements. Forward-looking statements include but are  not limited to those with respect to the outcome of the appeals of the court  order, the probability of a successful appeal of that order, the possibility  of concluding and the terms of any new subsoil use contracts which may be  entered into with Kazatomprom if the order is not reversed, the price of  uranium, the estimation of mineral resources and mineral reserves, the  realization of mineral reserve estimates, the timing and amount of estimated  future production, costs of production, capital expenditures, costs and timing  of the development of new deposits, success of exploration activities,  permitting time lines, currency fluctuations, requirements for additional  capital, government regulation of mining operations, environmental risks,  unanticipated reclamation expenses, the timing and potential effects of  proposed transactions, title disputes or claims, 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 reversal of the court order on  appeal, the obtaining of new subsoil use rights if the order is not reversed,  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, 2012,  which is available under Uranium One's profile on SEDAR at www.sedar.com, and  which should be reviewed in conjunction with this document. There can be no  assurance as to whether or on what terms new subsoil use rights might be  obtained, and, given the nature of the proceedings, Uranium One cannot assess  the probability of a reversal of the order on appeal.  If the order is not  reversed in full or new subsoil use rights are not granted or alternative  arrangements implemented (or are granted or implemented on less favourable  terms), or binding agreements with Kazatomprom are not concluded, the effect  on Uranium One may be material.  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.    SOURCE  Uranium One Inc.  Chris Sattler Chief Executive Officer Tel: +1 647 788 8500  Anton Jivov Vice President, Corporate Affairs Tel: +1 647 788 8461  To view this news release in HTML formatting, please use the following URL:  http://www.newswire.ca/en/releases/archive/March2014/27/c7305.html  CO: Uranium One Inc. ST: Ontario NI: MNG LAW VERDICTS LAWVIEWS  
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