Baker Lake

Thelon Basin region, Nunavut

100% owned

Operator : Majescor
Development Stage : Reconnaissance and targeted exploration (Year-1)
Target : Kiggavik-style uranium deposit associated with fault zones in off-basin position basement rocks.
Property : 132 mineral claims covering a total surface area of 1,032 km².
Significant Results : The Baker Lake property hosts 12 historical uranium occurrences with grab sample assays as high as 14.07% U₃O₈ and chip sample sections of up to 0.13% U₃O₈ over 6.71 m. A combined airborne magnetic, electromagnetic and radiometric survey of the property in 2006 (5,992 line-km) outlined close to 400 discrete point-source uranium anomalies and linear uranium highs, for follow-up investigation.
Status : First phase of targeted prospecting and mapping on the property in 2008.

In 2006, Majescor signed an agreement with Uranium World Energy Inc. (“UWE”), a privately held exploration company, whereby UWE could earn 100% of Majescor’s uranium rights on the Baker Lake property, located in the East Thelon basin area of Nunavut. Majescor had optioned the uranium rights previously from De Beers Exploration Canada Inc. (“De Beers”). The property was comprised originally of 19 prospecting permits covering 3,270 km², in two contiguous blocks situated approximately 50 km apart. The Baker Lake property is located 20-40 km south of the Kiggavik group of uranium deposits predominantly held by Areva Resources Canada Inc.

In the fall 2006, a uranium exploration campaign was launched on the Baker Lake property to follow-up on the conclusions of a NI 43-101 qualifying report. Based on a geological compilation and analysis, priority target areas were identified on the property and selected seven specific areas to be tested by deep-penetrating airborne geophysical surveying. The seven blocks were subsequently flown within the scope of a more extensive airborne geophysical survey totalling 5,992 line-km that covered both uranium and diamond permits. The helicopter-borne magnetic, electromagnetic (“EM”) and radiometric data was interpreted with the goal of identifying targets for possible uranium mineralization. Uranium anomalies discerned from the geophysical data are prospective for uranium mineralization and many were found to be coincident with lineaments, faults and/or alteration zones inferred from the magnetic and EM data. Over 100 positive and negative magnetic lineaments were detected that could be related to the controlling structures for uranium mineralization. The time-domain EM survey identified dozens of possible structures, inferred by resistivity lows, which may also control uranium mineralization. The radiometric survey yielded approximately 400 discrete point-source uranium anomalies and linear uranium highs. Out of the total 400 targets, at least 100 have been considered “priority targets” for field follow-up.

In April of 2007, Merc International Minerals Inc. (“MERC”) announced the signing of an agreement with UWE to acquire all 12 million shares of UWE in exchange for 49% of MERC shares. Under the terms of this transaction, Majescor, owner of 25% of UWE shares before the announcement would become a shareholder of 12% of the merged companies. On October 5, 2007, MERC announced that it would not proceed with its reverse takeover transaction with UWE. The August 2006 option agreement between Majescor and UWE expired on March 31, 2008. Majescor now holds 80% of the uranium rights on the Baker Lake property held by De Beers.

Majescor is committed to moving the Baker Lake uranium project forward. To this effect, the Company plans a focused ground exploration program for the summer 2008 field season. This program will aim to investigate the “high priority” airborne geophysical targets, together with a series of historical surface uranium occurrences in bedrock, boulders, soil and bedrock.