Updated 23 December 2009

Uran Limited has entered into an agreement with Canadian company Summit Point Uranium Corp. to earn up to an 85% equity in the Uravan Project, subject to Uran's due diligence which will be completed by 31 January 2010.

The Uravan project consists of registered mineral claims covering approximately 5,080 hectares (10,100 acres) straddling the Utah and Colorado border.  The project area lies on the Colorado Plateau at the junction of the Uravan Belt and the Lisbon Valley trend, two of the largest uranium production areas in the USA between 1945 and the early 1980's.

Utah is an "agreement state", meaning that permitting from drilling through exploration, mining and processsing is the sole responsibility of the state.  In non-"agreement" states permitting for processing is handled by the Nuclear Regulatory Commission, and this is thought to be generally slower and more difficult.  Utah is seen as "permitting'friendly" with generally favourable timeframes to obtain permits.

The minerals claims cover numerous historic small to medium-sized open pit and shallow underground uranium mines and lie within an active uranium exploration and mining area.

The project lies in the north-west of the San Juan sedimentary basin which textends eastwards into New Mexico, where it also hosts the Grants Ridge project.  It is about five hours drive from the Company's base in Grants, New Mexico, which will allow effective utilisation of staff and drilling equipment.

The Uravan Project conforms to Uran's strategy in the USA of acquiring projects within historic uranium mining areas in "mining-friendly" locations where mineralisation is close to surface, and where previous mining targeted only the high-grade core of uranium deposits leaving lowere grade mineralisation which may be amenable to bulk mining and heap leaching.

The area is similar in many ways to Gratns Ridge.  it covers numerous historic small to medium-sized open-pit or shallow underground uranium mines.  The uranium is present primarily as uraninite with some carnotite alteration.   The averaged mined grade for both areas was about 0.22% U₃O₈ both lie within the San Juan Basin sedimentary basin.

However, the surface mineralisation at the Uravan Project is generally in the Salt Wash Sandstone rather than the underlying limestone member.  The Salt Wash is a stratigraphic equivalent of the Westwater Canyon sandstone in New Mexico which hosts the large high-grade Ambrosia Lake and Mt Taylor uranium mines, as well as the current NI 43-10 resources at Church Rock, La Jara Mesa, and Roca Honda.

Within the project area there are 3 mineralised 4- to 5- metre thick sandstone members stacked at roughly 20-metre vertical intervals.  All have been exploited, often simultaneously from a single mine.  The mining was very similar to that at Grants in that it only exploited the shallow high-grade parts of a broad mineralised lithology, generally through shallow open pits and drifts into the sides of mesas.

Vanadium represents a potentially valuable co-project in the Uravan area.  The V₂O₅U₃O₈  ratio from historic uranium mining is typically between 5:1 and 10:1, as compared to 1:1 to 5:1 in the Grants area.  The whole Utah-Colorado uranium belt was worked initially for radium in the early 1900's, then for vanadium between the wars and after the atomic tests of 1945 for uranium until the early 1980s.