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Saturday, July 23, 2005

Strathmore Minerals (STHJF) 2004 continued

Management Discussion and Analysis
Management believes that the development of uranium properties presents an opportunity due to recent uranium supply shortfalls and the potential increase in demand for uranium from developing countries. As those countries begin to establish new nuclear power plants, increased demand for uranium is expected during the next few years. Increased demand and higher prices should stimulate new exploration and development at both new and previously explored uranium properties....
During the first 2 quarters of 2003, the price of uranium remained low. However, by the third quarter of 2003, the price of uranium had increased to a point where management decided to aggressively pursue the acquisition of new uranium properties....
In order to finance these activities, the Company completed a number of private placement financings during the year....
These funds are for general working capital, the acquisition of additional uranium properties and the exploration and development of the Company s uranium properties....
Estimates of U3O8 on the various properties:
[I can't seem to get rid of this huge gap of empty space on most browsers]

historic classification
lbs U3O8
Duddridge Lake
Stewart (1975)
Geologic Tonnage
Estimate (1)

Thor Explorations
Minable Tons (1)

Thor Explorations
Reserves (2)
Dieter Lake
Uranerz Expl. &
Mining (1980)
Possible Resource

Uranerz Expl. &
Mining (1980)
Possible Resource
Macusani, Peru
Arroyo (1987)
Inferred Resource (2)
Roco Honda,
New Mexico
Smouse, D. (1993)
Resource (4)

Smouse, D. (1993)
Inferred Resource (4)

Smouse, D. (1993)
Potential (4)
New Mexico
Smouse, D. (1995)
Resource (4)

Potential Resource
Anaconda Uranium
Corp (1977)
Inferred and
Indicated Resource
(1) Historic resource estimate considered to be relevant and reliable.
(2) Historic resource estimate considered to be relevant but unreliable based on amount of data reviewed to date by the Company.
(3) Historic resource estimate considered to be relevant, but insufficient information is available to confirm the reliability of the resource estimate.
(4) Historic resource estimate considered to be relevant, and is presumed reliable based on the volumes of work completed. The company has not done sufficient work to verify the resource estimate.
...prepared on behalf of the company by Jody Dahrouge, P.Geol. of Dahrouge Geological Consulting Ltd., Edmonton, Alberta. Mr. Dahrouge, is the Qualified Person (QP) responsible for the review of the historical resource estimates. Also, the company wishes to reiterate that the foregoing resource estimates were quoted from third party publications, and not all the original reports are currently available for consultation, hence the historical resource estimates should not be relied upon.
During Sept 2003, the uranium price went over $12 and the company decided to get serious about buying properties quickly. During 2004, the pace continued. G&A started climbing and it will continue during 2005.

During 2005, the Company will probably spend C$2.2 million on exploration and development, mostly in Canada.

Q4 2003, there was a writeoff of mineral properties.

Financing is pretty obvious: stock. [The value per share is probably best measured by pounds of U3O8 per share, which is around 3 pounds. If the Company can issue stock for more than 3 pounds per share, it's a good deal for existing shareholders.]

More related party stuff: C$62K paid to Dev Randhawa (president). C$39K paid to director Khan. C$46K paid to Hemmerling. Directors also were part of private placement of shares.

UPDATE: 23M and 23M15 topographical maps [Dieter Lake] on order.

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