Revenue Driver

High Potential Uranium Projects

Bancroft controls an extensive regional play totaling over 9,000 acres of mineral claims in Ontario, Canada prospective for uranium.

Monmouth Uranium Deposit
The Monmouth Project is located in central Ontario, Canada, 2 hours north of Toronto and close to uranium production facilities operated by Cameco Corporation at Port Hope and Blind River. Previous operators estimated a uranium resource of 2 million tons containing 0.045% or 0.9 pounds per ton which would equal 1,800,000 pounds U3O8.

Summary
• 1,800,000 pounds uranium based on historical calculation in limited 1969 work program
• At current prices ($65 on April 23, 2008), the potential resource base is worth an estimated $117 million
• Limited drilling is required for 43-101 Compliance – expected in Q2 ‘08
• $500,000 2007 program, 19 additional surface trenches, detailed channel saw sampled, 125 miles of cut grid
• 1500 foot strike length of U308 bearing skarn now extended
• Uranium horizon between 15 to 35 feet thick

History
Uranium was discovered at Monmouth in the early 1950s when uranium was less than $10.00 per pound. The operators at that time conducted surface trenching across approximately 1,000 feet that showed grades 0.14% U3O8 (2.8 lbs per ton) over 35 trenches and had limited follow-up drilling.

The Monmouth project was initially drilled during a program completed in the late 1960s to a total of 44 drill holes. Drilling was concentrated in rocks that contain uranium crystals in a limestone skarn. In 1968, an engineering report by S.W. Evans was filed as a listing prospectus to the Toronto Stock Exchange for Northern Nuclear, the owner at that time. The report estimated from drill results the potential of 2 million tons containing 0.045% (0.9 pounds per ton) or 1,800,000 pounds of U3O8.

Geology
The geology at Monmouth is comprised of uranium crystals disseminated in an altered limestone (skarn) with a thickness of 15-60 feet. This skarn horizon has been mapped for a length of 6,000 feet. Only 1,500 feet of the strike length has been explored to some detail. All historical drill holes cut uranium mineralization ranging from 1/10 pound to over 6 pounds of uranium per ton.

The deposit is open along strike to the northeast and southwest and down dip to the southeast.

Current Drilling Programs
Bancroft Uranium commenced a surface diamond drilling program on February 25th, 2008 to drill in areas that returned historic drill results from the 1968 program. This drilling is the start of a process aimed at bringing the historical work into modern N.I. Policy 43-101 compliance, a recognized world mining standard. The company reports that once the drill program is complete, engineers will undertake a geological report which will ultimately lead to a uranium resource calculation of the in-situ tons and contained pounds of uranium.

Bancroft is currently receiving initial assay results from the start of the drill program and expects to report drill results shortly.

The company asserts that once final 43-101 reporting is received it will be in a position to implement recommendations and move forward with planning for future work towards pre-feasibility studies that will be required prior to determining whether Monmouth represents a viable commercial uranium deposit.

In conjunction with the drilling results, Bancroft expects to report on a metallurgical study currently underway with the processing of a test sample of the Monmouth rock with SGS Mineral Services Laboratory located in Lakefield, Ontario.

Project Advantages
• Proximity to infrastructure
• Location in a historic mining district
• Amenable to open pit mining
• 1970 metallurgical test shows 80 plus percent recovery by simple gravity separation
• Nearby CAMECO facilities in either Port Hope or Blind River, Ontario identified by the company as potential purchasers for uranium
• Produced yellow cake can be shipped to CAMECO facilities at Blind River in under 2 hours

Additional Projects
The company has staked two additional uranium projects in Ontario, at Long Lac and in the prolific Elliot Lake Uranium camp.

The Elliot Lake property is located approximately one half mile to the west of the past producing Pronto Mine. Between 1955-59 it produced 2.1 million tons averaging approximately 2.3 lbs/ton U308.

Canada’s Rich Uranium Resource

According to the World Nuclear Association Canada produces about one third of the world's uranium mine output, much of it from two new mines. (Canada's Uranium Production & Nuclear Power, March 2008)

Canada is the world's largest producer of uranium. In 2004 production at 13,676 tonnes of uranium oxide concentrate (11,597 tonnes U) was about 30% of total world production. Its value was about C$800 million.
Canada's known uranium resources (Reasonably Assured Resources plus Inferred Resources to US$ 130/kgU) are 524,000 tonnes of U3O8 (444,000 tU, 9% of world total).

History
In Canada uranium ores first came to public attention in the early 1930s when the Eldorado Gold Mining Company began operations at Port Radium, Northwest Territories, to recover radium. Deposits around the Bancroft, Ontario, area were discovered by the early 1950s, and the first discovery in Ontario's Elliot Lake region was in 1953. The northern Saskatchewan uranium province was also discovered in the 1950s and Eldorado Nuclear began mining at Beaverlodge in 1953.

This first phase of Canadian uranium production peaked in 1959 when more than 12,000 tonnes of uranium was produced. The uranium yielded C$330 million in export revenue, more than for any other mineral export from Canada that year. However, this period marked the end of cost-plus production for export, and over the next few years the number of mines declined to four. Uranium production in the Bancroft area and at Beaverlodge, Sk, ceased in 1982 and the last of the labour-intensive, lower-grade Elliot Lake mines closed in 1996.

Area Mines
McArthur River has enormous high-grade (23%) reserves at a depth of 600 metres. It opened at the end of 1999. Remote-control raise-boring methods are used for mining and the ore is trucked 80 km south to the modified Key Lake mill, where it is blended with "special waste rock" to produce 8500 t/yr of U3O8. Mining is constrained by licensed capacity, and a planned increase to 10,000 t/yr is under review by government agencies and expected to be implemented in 2009. Tailings are deposited in a mined-out pit. Cameco is the operator and majority owner, with Areva (30.2%) as partner.

The McClean Lake mine commenced operation in mid 1999. It was producing about 2500 t/yr U3O8 (2120 tU) from 2.4% ore but has been relicensed for 3640 t/yr. It has new plant and other infrastructure and uses the first mined-out pit for tailings disposal (the ore having been stockpiled). Production in 2006 was down due to lower grades. Expansion of the mill to prepare for Cigar Lake ore will be complete in 2007. McClean Lake involves three open pits and later will become an underground mine. It is owned by Areva Resources (70%, also operator), in joint venture with Denison Energy (22.5%) and OURD (7.5%).

Cigar Lake will be a 450 m deep underground mine in poor ground conditions, using ground freezing and high-pressure water jets for excavation of ore. High-grade ore slurry from remote mining will be trucked for toll treatment at Areva's expanded McClean Lake mill, 70 km northeast, for the first two years. The average feed grade will be 20.7% U3O8.