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Uranium One Announces 8% Increase in 2013 Production to 13.2 Million Pounds; Average Total Cash Cost of $16 per Pound Sold(2),(4

 Uranium One Announces 8% Increase in 2013 Production to 13.2 Million Pounds;  Average Total Cash Cost of $16 per Pound Sold(2),(4) and Attributable Sales of  13.6 Million Pounds  TORONTO, March 31, 2014 /CNW/ - Uranium One Inc. ("Uranium One") today  reported revenues of $386.4 million for full year 2013 at an average total  cash cost per pound sold of produced material((4)) of $16 based on  attributable sales of 13.6 million pounds at an average realized sales price  of $40 per pound.  Attributable production for full year 2013 was 13.2 million  pounds.  2013 Highlights  Operational        --  Total attributable production during 2013 was a record 13.2         million pounds, 8% higher than total attributable production of         12.2 million pounds during 2012.     --  The average total cash cost per pound sold of produced material         ((4)) was $16 per pound during 2013 compared to $16 per pound         during 2012.  Financial     --  Attributable sales volumes of produced material for 2013 were         13.6 million pounds sold from the Corporation's operations and         joint ventures compared to 11.7 million pounds sold during         2012.     --  Headline revenues were $386.4 million in 2013, compared to         $353.4 million in 2012.     --  Attributable revenues((4) )(which includes revenues from         interests in joint ventures and the Corporation's headline         revenues), amounted to $659.2 million in 2013, compared to         $623.7 million in 2012.     --  The average realized sales price of produced material((4))         during 2013 was $40 per pound, compared to $48 per pound in         2012. The average spot price in 2013 was $38 per pound compared         to $49 per pound in 2012.     --  Gross profit was $63.1 million during 2013, compared to gross         profit of $30.8 million in 2012.     --  Attributable gross profit((4)) (which includes the         Corporation's share of gross profit from joint ventures),         totaled $159.1 million in 2013, a 30.1% decrease compared to         $227.6 million in 2012, primarily due to a decrease of 20% in         the price of U(3)O(8).     --  The net loss for 2013 was $41.3 million or $0.04 per share,         compared to net losses of $96.7 million or $0.10 per share for         2012.     --  The adjusted net earnings((4)) for 2013 were $16.3 million or         $0.02 per share, compared to adjusted net earnings((4)) of         $65.1 million or $0.07 per share for 2012.     --  The Corporation announced the suspension of production at its         Honeymoon Project during the fourth quarter following the         impairment charge of $67.8 million previously announced in the         third quarter of 2013, and the Honeymoon operation was placed         on a care and maintenance (C&M) program.     --  During the fourth quarter of 2013 the Corporation distributed         $381.3 million to its shareholders and did a share buy-back of         $16.8 million for a total distribution of $398.1 million.  Corporate     --  The previously announced "Going Private Transaction", whereby         the Corporation would be taken private pursuant to a Plan of         Arrangement with JSC Atomredmetzoloto ("ARMZ") was completed on         October 18, 2013. All of the publicly held common shares of the         Corporation not already owned by subsidiaries of ARMZ (which         indirectly owned 51.4% of the Corporation's outstanding common         shares) were acquired by a subsidiary of ARMZ for a cash         consideration of C$2.86 per share. Following the completion of         the Going Private Transaction, and an internal reorganization         by ARMZ's parent corporation, Russia's State Atomic Energy         Company "Rosatom" ("Rosatom") in December 2013, Uranium One is         now a wholly-owned indirect subsidiary of Rosatom and is no         longer controlled by ARMZ.     --  On December 9, 2013, Uranium One gave notice to ARMZ of the         termination of the Mantra Resources option agreement in respect         of the Mkuju River Project, which termination will be effective         as of June 10, 2014.     --  As previously announced, during the fourth quarter of 2013, the         Corporation's wholly-owned subsidiary Uranium One Investments         Inc. ("U1 Investments") completed an offering, on a private         placement basis to qualified institutional buyers in the U.S.         and Europe, of $300.0 million aggregate principal amount of         non-convertible 6.25% Senior Secured Notes due December 13,         2018 ("Senior Secured Notes"). Net proceeds from this offering         were made available to the Corporation for the repurchase of         its 2010 Debentures, as discussed below, and for general         corporate purposes. In addition, U1 Investments entered into a         three year $120 million revolving credit facility agreement         (the "Revolving Credit Facility") with a syndicate of lenders.     --  On January 2, 2014, the Corporation completed the repurchase of         C$227,461,000 aggregate principal amount of its outstanding         5.0% convertible unsecured subordinated debentures due March         13, 2015 ("2010 Debentures"), representing 87.49% of the         outstanding aggregate principal amount of the 2010 Debentures,         pursuant to an offer to repurchase the 2010 Debentures         commenced on November 15, 2013, as required by the indenture         governing the 2010 Debentures as a result of the completion of         the Going Private Transaction. The repurchased 2010 Debentures         have been cancelled.     --  On January 6, 2014, the Corporation appointed Juliana L. Lam as         Executive Vice President and Chief Financial Officer. Julie         brings with her extensive senior-level international financial         management experience in diverse industries such as mining,         manufacturing, services and distribution.     --  On March 16, 2014, the Corporation appointed Feroz Ashraf as         Executive Vice President and Chief Operating Officer. Feroz         brings over 34 years of experience in the resource sector,         including mining and metallurgy, oil and gas, and related         downstream industries.     --  The United States, European Union and Canada have recently         issued orders or adopted regulations imposing sanctions in the         form of visa restrictions and asset freezes on the property of         certain designated persons considered to be responsible for the         events in Ukraine. To date, the US, EU and Canada have         designated a number of Russian and Ukrainian nationals, and the         US and Canada have designated one Russian financial         institution. The Corporation's operations have not been         impacted by the foregoing orders or regulations or any         designations or determinations made thereunder and the         Corporation continues to carry on business as usual.     --  On March 26, the Special Inter-District Economic Court for the         City of Astana (Republic of Kazakhstan) issued an order having         the effect of invalidating the original transfers in 2004 and         2005 to the Betpak Dala and Kyzylkum joint ventures of the         subsoil use contracts for the Akdala, South Inkai and Kharasan         fields. The order is being appealed by the joint ventures and         is subject to a stay while the appeal is being heard. The         Company and its shareholders are currently 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. 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.  Outlook     --  Total attributable production for 2014 is expected to be 12.4         million pounds.     --  During 2014, the average cash cost per pound sold of produced         material((3)) is expected to be approximately $18 per pound.     --  The Corporation expects attributable sales of produced material         to be approximately 12.4 million pounds in 2014.     --  The Corporation expects to incur attributable capital         expenditures in 2014 of $65 million for wellfield development         and $8 million for plant and equipment, totalling $73 million         for its assets in Kazakhstan and the United States.     --  In 2014, general and administrative expenses, excluding         non-cash items, are expected to be approximately $32 million         and exploration expenses are expected to be $1 million.  2013 Operations and Projects  During 2013, Uranium One achieved attributable production of 13.2 million  pounds, an increase of 8% over attributable production of 12.2 million pounds  in 2012.  Operational results for Uranium One's assets during 2013 were:                                2013 Attributable Production    2013 Total                                                                Cash Costs               Asset                                         (lbs U3O8)            (per lb sold                                                                   U3O8)     ---                                           ---------   ------------     Akdala                                        1,856,500            $14     ------                                        ---------            ---     South Inkai                                   3,694,300            $18     -----------                                   ---------            ---     Karatau                                       2,749,200            $11     -------                                       ---------            ---     Akbastau                                      1,948,500            $13     --------                                      ---------            ---     Zarechnoye                                    1,201,800            $25     ----------                                    ---------            ---     Kharasan                                        586,700            $21     --------                                        -------            ---     Willow Creek                                    940,000            $25     ------------                                    -------            ---     Honeymoon(1)                                    246,400            N/A     -----------                                     -------            ---     Total                                        13,223,400            $16     -----                                        ----------            ---  (1)       Honeymoon production represents concentrates in process that require  further processing in order to become uranium concentrates that can be  converted into a saleable product.  2013 Financial Review  Headline revenues were $386.4 million in 2013, compared to $353.4 million in  2012. Attributable revenues((4)) (which includes revenues from its interests  in joint ventures and the Corporation's headline revenues), amounted to $659.2  million in 2013, compared to $623.7 million in 2012. The average realized  sales price of produced material((4)) during 2013 was $40 per pound, compared  to $48 per pound in 2012. The average spot price in 2013 was $38 per pound  compared to $49 per pound in 2012.  Cash cost per pound sold of produced material((4)) was $16 for 2013 compared  to $16 in 2012.  Gross profit was $63.1 million during 2013, compared to gross profit of $30.8  million in 2012. Attributable gross profit((4)) (which includes the  Corporation's share of gross profit from joint ventures), totaled $159.1  million in 2013, a 30.1% decrease compared to $227.6 million in 2012.  The net loss for 2013 was $41.3 million or $0.04 per share, compared to a net  loss of $96.7 million or $0.10 per share for 2012.  The adjusted net earnings((4)) for 2013 were $16.3 million or $0.02 per share,  compared to adjusted net earnings((4)) of $65.1 million or $0.07 per share for  2012.  On December 31, 2013, the Corporation had cash and cash equivalents, including  restricted cash, of $440.6 million, compared to $442.0 million at December 31,  2012.  The following table provides a summary of key financial results:   FINANCIAL                                                                    Q4 2013            Q4 2012             FY 2013             FY 2012  ---------                                                                    -------            -------            - ------             -------        Attributable production (lbs) (2)                                                    3,244,000          3,223,500           12,997,000          11,676,100     Attributable sales (lbs) (2) - Produced material                                     3,347,900          5,136,000           13,565,200          11,694,800     Average realized sales price ($ per lb) (4) - Produced material                             40                 44                   40                  48     Average total cash cost per pound sold ($ per lb) (4) - Produced material                   16                 17                   16                  16     Revenues  ($ millions) - as reported on consolidated income statement (3)                106.2              100.9                386.4               353.4     Attributable revenues ($ millions) (4)                                                   190.7              227.6                659.2               623.7     Gross profit ($ millions) - as reported on consolidated income statement (3)              40.4               14.2                 63.1                30.8     Attributable gross profit ($ millions) (3), (4)                                           53.4               76.6                159.1               227.6     Net earnings (loss)  ($ millions)                                                         21.2              (68.8)               (41.3)              (96.7)     Net earnings (loss) per share - basic and diluted ($ per share)                           0.02              (0.07)               (0.04)              (0.10)     Adjusted net (loss) earnings ($ millions) (4)                                            (27.2)              33.3                 16.3                65.1     Adjusted net (loss) earnings per share - basic ($ per share) (4)                         (0.03)              0.03                 0.02                0.07     ---------------------------------------------------------------                          -----               ----                 ----                ----  (1)  Honeymoon production represents concentrates in process that require  further processing in order to become uranium concentrates that can be  converted into a saleable product. (2)  Attributable production and  attributable sales are from assets owned and joint ventures in commercial  production during the period.  (3)  Comparative information has been restated  with the   adoption of IFRS 11 - Joint arrangements on January 1, 2013. (4)   The Corporation has included the following non-GAAP performance measures:  average realized sales price per pound - produced material, average total cash  cost per pound sold - produced material, attributable revenues, attributable  gross profit, adjusted net earnings (loss) and adjusted net earnings (loss)  per share. See the section on "Non-GAAP Measures".  Non-GAAP Measures  I) Adjusted net earnings  The Corporation has included the following non-GAAP performance measures:  attributable revenues, attributable gross profit, average realized sales price  per pound - produced material, average total cash cost per pound sold -  produced material, adjusted net earnings (loss) and adjusted net earnings  (loss) 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 IFRS, 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 IFRS.  The following table provides a reconciliation of adjusted net earnings (loss)  to the consolidated financial statements:                                                                                                                                                                                                          (US DOLLARS IN MILLIONS EXCEPT PER SHARE AMOUNTS)                                                                                          3 MONTHS ENDED                  YEAR ENDED     ------------------------------------------------                                                                                           --------------                  ----------                                                                                                                                                                                          DEC 31, 2013                                                                                                                        DEC 31, 2012                  DEC 31, 2013  DEC 31, 2012                                                                                                                                                                                                                                                                                                              $ MILLIONS                    $ MILLIONS    $ MILLIONS    $ MILLIONS                                                                                                                        ----------                    ----------    ----------    ----------                                                                                                                                                                                                         Net earnings (loss)                                                                                                                         21.2         (68.8)        (41.3)        (96.7)                                                                                                                                                                                                      Reversal of provision for contingent payments                                                                                              (44.8)         (1.6)        (44.8)         (1.6)                                                                                                                                                                                                      Impairment charges (net of deferred taxes)                                                                                                     -         102.3          67.8         181.4                                                                                                                                                                                                      Gain on business combination                                                                                                                   -             -             -         (17.2)                                                                                                                                                                                                      2010 Debentures accelerated interest                                                                                                           -             -          15.6             -                                                                                                                                                                                                      Corporate development expenditure                                                                                                            4.9           0.1          17.5           2.7                                                                                                                                                                                                      Restructuring costs                                                                                                                          1.8           0.7           3.9           2.2                                                                                                                                                                                                      Non-hedge derivative (gains) losses, net of tax                                                                                            (10.3)          0.6          (2.4)          4.7                                                                                                                                                                                                      Non-recurring income tax adjustment                                                                                                            -             -             -         (10.4)     -----------------------------------                                                                                                          ---           ---           ---         -----                                                                                                                                                                                                      Adjusted net (loss) earnings                                                                                                               (27.2)         33.3          16.3          65.1     ----------------------------                                                                                                               -----          ----          ----          ----                                                                                                                                                                                                                                                                                                                                                                                                       Adjusted net (loss) earnings per share - basic ($) and diluted                                                                             (0.03)         0.03          0.02          0.07                                                                                                                                                                                                      Weighted average number of shares (millions) - basic and diluted                                                                           958.4         957.2         958.4         957.2                                                                                                                                                                                                   II) Attributable Revenues and Attributable Gross Profit  The Corporation monitors and evaluates performance of its business by using  these additional non-GAAP measures, which are consistent with the results that  would be reported under proportionate consolidation accounting.  The Corporation believes that, in addition to conventional measures prepared  in accordance with IFRS, the Corporation and certain investors use this  information to evaluate the Corporation's performance and ability to generate  cash flow. This is provided as additional information and should not be  considered in isolation, or as a substitute for measures of performance  prepared in accordance with IFRS.  Attributable Revenues:  Attributable revenues are determined as shown in note 28(a) of the audited  annual consolidated financial statements. This note discloses segmented  information which incorporates the revenues of the Corporation under  proportionate consolidation. The following table provides a reconciliation of  attributable revenues to the financial statements:                                                                                        (US DOLLARS IN MILLIONS)        3 MONTHS ENDED             YEAR ENDED     -----------------------         --------------             ----------                                                                                         DEC 31, 2013                 DEC 31, 2012          DEC 31, 2013  DEC 31, 2012                                                                                                          $ MILLIONS            $ MILLIONS    $ MILLIONS    $ MILLIONS                      ----------            ----------    ----------    ----------                                                                                       Revenues                        106.2     100.9         386.4         353.4                                                                                       Attributable revenues from      joint ventures                  91.7     205.0         440.0         513.4                                                                                       Intercompany purchases from      joint ventures                  (7.2)    (78.3)       (167.2)       (243.1)     ---------------------------      ----     -----        ------        ------                                                                                       Attributable revenues           190.7     227.6         659.2         623.7     ---------------------           -----     -----         -----         -----  Attributable Gross Profit:  Attributable gross profit is disclosed in the table of uranium sales,  inventory and operating costs on page 23 of the Management's Discussion and  Analysis. The following table provides a reconciliation of attributable gross  profit to the financial statements:                                                                                                                                                                              (US DOLLARS IN MILLIONS)                                                                                        3  MONTHS ENDED                  YEAR ENDED  -----------------------                                                                                         ---- ----------                  ----------                                                                                                                                                                 DEC 31, 2013                                                                                             DEC 31,  2012                  DEC 31, 2013  DEC 31, 2012                                                                                                                                                                                                                                                                $ MILLIONS                     $ MILLIONS    $ MILLIONS    $ MILLIONS                                                                                                  ----------                     ----------    ----------    ----------                                                                                                                                                                          Gross profit                                                                                                      40.4          14.2          63.1          30.8                                                                                                                                                                             Attributable revenues from joint ventures                                                                         91.7         205.0         440.0         513.4                                                                                                                                                                             Attributable operating expenses from joint ventures                                                              (40.9)        (79.8)       (190.5)       (173.8)                                                                                                                                                                             Attributable depreciation from joint ventures                                                                    (37.8)        (62.8)       (153.5)       (142.8)  ---------------------------------------------                                                                   ---- -         -----        ------        ------                                                                                                                                                                             Attributable gross profit                                                                                         53.4          76.6         159.1         277.6  -------------------------                                                                                        --- -          ----         -----         -----  III) Average realized sales price per pound and cash cost per pound sold  As in previous periods, average realized sales price per pound of produced  material and cash cost per pound sold of produced material are calculated as  follows:  a)  Average realized sales price per pound of produced material: Revenues -  produced materials divided by attributable sales pounds sold - produced  material.  b)  Cash cost per pound sold of produced material: Operating  expenses - produced material divided by attributable sales pounds sold -  produced material.  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).  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.  Scientific and technical information contained herein has been reviewed on  behalf of the Corporation by Mr. M.H.G. Heyns, Pr.Sci.Nat. (SACNASP), MSAIMM,  MGSSA, Senior Vice President New Business and Technical Services of the  Corporation, a qualified person for the purposes of NI 43-101.  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 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,  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, 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, 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/March2014/31/c1948.html  CO: Uranium One Inc. ST: Ontario NI: MNG ERN