This project is part of our
All-Canadian royalty portfolio

Central Mineral Belt Royalty (NL, Canada)

Altius maintains an underlying 2% gross uranium sales royalty and a 2% net smelter return royalty on base and precious metals that may be produced from Paladin's Central Mineral Belt ("CMB") projects in Labrador, Canada.

The royalty was created in June 2005 following 2 years of successful exploration in the CMB when Altius and its partner, Fronteer Development Group, restructured their exploration alliance as part of a longer-term business strategy to create a new pure uranium company - Aurora Energy Resources Inc. (TSX:AXU). The agreement structure and launch of Aurora effectively converted Altius property ownership into an equity stake in the new uranium company and an underlying royalty covering Aurora's Labrador properties. By October 2007 Altius had sold its entire equity stake in Aurora for gross proceeds in excess of $200 million, while still retaining its royalty position over the properties.

The Central Mineral Belt project generation initiative in early 2003 and the subsequent Aurora co-founding in 2005 is a testament to the success of Altius' chosen business model.

Current Status

Aurora's uranium assets were wholly sold to Paladin Energy in December 2010 in a transaction valued at $260.87-million. Paladin is well positioned to advance the CMB project by virtue of their demonstrated development skills and strong track record of social and environmental stewardship in communities in which they operate.

The Central Mineral Belts property encompasses a significant uranium resource of approximately 130 million lbs of U308 in six deposits; Michelin, Jacques Lake, Rainbow, Inda, Nash and Gear. In December 2009, Aurora announced completion of a Preliminary Economic Assessment (PEA) report for the Michelin Project by AMEC Americas Limited, which indicated potentially favorable economics for the Project.

For further information regarding the recent transaction and results to date with the ongoing exploration and mine development planning please visit Paladin Energy.

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