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Hathor Exploration Limited: Roughrider PA Estimates C$1.0 Billion Pre-tax NPV, Using US$70 Uranium Price and 7% Discount Rate

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 13, 2011) - Hathor Exploration Limited (TSX:HAT - News; "Hathor" or the "Company") is pleased to announce summary results of a preliminary economic assessment ("PA") conducted for the Roughrider Uranium Deposit, located in the Athabasca Basin of Northern Saskatchewan. The PA includes the West and East Zones; it does not include the Far East Zone.Economic Analysis SummaryEconomic analyses for a stand-alone mine and mill operation were run under three different uranium price scenarios (Table 1). Note, all dollar amounts referenced in this news release are in Canadian dollars unless otherwise specified. Based on the US$ 70/lb uranium scenario, the pre-tax Net Present Value ("NPV") for Roughrider, is approximately $1.0 billion, with an internal rate of return ("IRR") of 38% and payback of 1.2 years, using a discount rate of 7% and an exchange rate of $1.05 : US$1.00. The undiscounted pre-tax NPV is $2.0 billion over an estimated 11 year mine life, based on 5.0 million pounds U3O8 per year mill output, generating a total mine and mill production cost of $14.44/lb U3O8. The low cost of production is mainly a function of the low daily milling rate of about 200 tonnes per day, itself a function of the compact and high grade and minimal separation of the West and East zones, high metallurgical recovery (97.7%), and shallow depth.These results may be further enhanced by the addition of mineralization discovered at the Far East Zone adjacent to the East Zone, as described in News Releases dated July 26 and September 6, 2011. The Far East Zone has grown rapidly since its discovery in February 2011 and remains open.

Table 1. Economic Analysis Results, Roughrider Uranium Deposit, West and
East Zones Only
Parameter Unit Case A Case B Case C
U3O8 Price US$/lb U3O8 60 70 90
Royalty Payments M$ 366 463 669
Pre-tax NPV0% M$ 1,592 2,042 2,928
Pre-tax NPV7% M$ 769 1,025 1,527
Pre-tax IRR % 32 38 48
Pre-tax payback period Production years 1.6 1.2 0.8

1. Cash-flow model discounted to start of construction of potential mine at

Comparing the forecast average operating costs for Roughrider of $14.44/lb U3O8 to the forecasts for Cigar Lake(1) and McArthur River(2) of $23.14/lb U3O8 and $19.69/lb U3O8 respectively, Roughrider will potentially be one of the lowest cost uranium producers in the world.

(1)Cameco Corporation, National Instruments 43-101 Technical Report, Cigar
Lake Project, Northern Saskatchewan, Canada,
Effective Date December 31, 2009, Filed March 31, 2010, page 176
(2)Cameco Corporation, National Instruments 43-101 Technical Report,
McArthur River Project, Northern Saskatchewan, Canada,
Effective Date December 31, 2008, Filed February 16, 2009, page 165

Background to PAHathor commenced a comprehensive internal scoping study of the Roughrider Uranium Deposit in January, 2011. In June, Hathor executed a contract with SRK Consulting (Canada) Inc. ("SRK") for the completion of a National Instrument 43-101 ("NI 43-101") compliant preliminary economic assessment of Roughrider. The results of the PA are summarized in a Memorandum ("Memo") by SRK to the Company dated September 12th, 2011. The Memo is authored by Gordon Doerksen, P.Eng, of SRK, a Qualified Person under NI 43-101. Mr. Doerkson has reviewed and approved the technical disclosure in this news release. A NI 43-101 compliant technical report, the PA, will be filed on SEDAR in accordance with securities laws and not later than 45 days from the Memo.The Memo states that no fatal flaws were discovered during the Roughrider study, the project is economic and should be advanced based on current knowledge and assumptions. A sensitivity analysis demonstrates that the project is very robust, relatively insensitive to capital and operating costs, and moderately sensitive to metal prices and grade (Figure 1). Like most mining projects, Roughrider economics are most sensitive to commodity price and mill feed grade.To view "Figure 1: Sensitivity Analysis for Roughrider Uranium Deposit, East and West Zones only, based on US$70/lb uranium and a 7% discount rate", please visit the following link: http://media3.marketwire.com/docs/727546_fig_1.pdfThe PA is preliminary in nature in that it includes inferred mineral resources considered too speculative geologically to have economic considerations applied to them that would enable categorization as mineral reserves, and there is no certainty that the PA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.While there are many risks associated with most early-stage mining projects, many of those risks can be mitigated with appropriate information gathering and engineering work. The main risks associated with the Roughrider Uranium Deposit are typical of mining projects and include: Geological Interpretation; Mineral Resource Classification; U3O8 price and exchange rate; The ability to secure environmental permits; The ability to achieve operating and capital cost estimates; The ability to manage ground water in the mine, and; The ability to meet dilution and extraction expectations.ResourcesMineral resources for Roughrider shown below (Table 2) are based on compliant NI 43-101 technical reports. For the PA, the life-of-mine production at Roughrider is approximately 90% of mineral resources.

Table 2: Total mineral resources, Rougher Uranium Deposit, West and East
Zones Only
Mineral Zone Footnotes Category Quantity Grade Contained
(Tonnes) U3O8 (%) U3O8 (million lb)
East Zone 1,3,4 Total Inferred 118,000 11.58 30.130
West Zone 2,3,5 Total Indicated 394,200 1.98 17.207
West Zone 2,3,5 Total Inferred 43,600 11.03 10.602
(1) Cut-off of 0.4 percent U3O8 based on an underground mining scenario, (2)
Cut-off of 0.05 percent U3O8 based on an open pit, using all material above
200 m elevation, (3) Metallurgical recoveries of 98 percent and metal prices
of US$80.00 per pound of U3O8, (4) Disclosed in news release dated May 17,
2011, and in Technical Report dated June 28, 2011 (5) Disclosed in news
release dated November 29, 2010, and in Technical Report dated January 15,

Capital SummaryCapital expenditures for the mine and mill at Roughrider are estimated at $567 million (Table 3). Input costs can be accurately estimated for Roughrider because the project is located within the heart of an active uranium mining district. The capital cost estimate is rigorous, developed in a manner more typical of a pre-feasibility study. Estimates utilized mining cost inputs obtained directly from expert and long-standing service companies in Saskatchewan, most, if not all, active on current projects and operations of Cameco Corporation and AREVA Resources Canada Inc. In addition, the $567 million capital estimate for Roughrider used in this PA includes a 25% contingency, which is required for PAs.The low estimated capital expenditure for Roughrider is, in-part, a function of the favourable location of this deposit (Figure 2). The property is connected to Highway 905 by a 6 km winter road and the PA incorporates the development of a 7 km haul road connected to the highway. The property is 8.5 km north of Points North, the main service hub for Northern Saskatchewan, with commercial airport and bulk fuel, and access to the northern electrical transmission line.

Table 3: Capital Cost Estimate Summary, Roughrider Uranium Deposit, West and
East Zones Only
Item Unit (C$) Total Pre-production Sustaining
Underground Mine M$ 159 95 64
Processing Facility M$ 172 172 0
Site Infrastructure M$ 53 51 2
Owner's Costs M$ 8 8 0
Closure M$ 14 0 14
EPCM (15%) M$ 48 48 0
Contingency (25%) M$ 114 94 20
Total Capital Cost M$ 567 468 100

Mining & Milling MethodsFor reference, Figure 3 shows an aerial view of the Roughrider Uranium Deposit. Figure 4 shows a 3-D geological block model of the deposit. Figure 5 shows a mine development plan for the deposit.The economic model contemplates four years of mine construction, followed by more than 10 years of mining and milling to produce 52.3 million pounds U3O8. The analysis incorporates a fly-in/fly-out facility with a stand-alone mill and underground mine employing remote mining techniques, a purpose-built pervious-surround tailings management facility, a water treatment facility and all associated camp facilities and infrastructure. The shallow depth of the deposit allows for the use of a decline to access the underground workings as opposed to development of multiple shafts. The PA assumes the decline will be developed under grout cover to minimize the risk of water inflow. To also limit the risk of water inflows, the model incorporates freeze barriers for both the East Zone and the West Zone, and freezing of all ventilation/access raises prior to development. A final decision on the need to freeze the East Zone, which is located further below the unconformity, will be made as part of the feasibility assessment. Mine cut-off grade was established using US$60/lb uranium price and assuming 30% dilution. In situ mine cut-off grade in the PA is 1.06% U3O8.Due to the high-grade nature of significant portions of the mineral zones, mining will be by means of remote entry techniques and all mining is assumed to be by raise boring for the purpose of the PA. The PA contemplates development of the East Zone first, followed by the West Zone.OPEX is summarized in Table 4 below. Due to the high-grade nature of the mineral zones, ore will be down-blended to an average mill head grade feed of 3.3% U3O8 equivalent. Melis Engineering Inc ("Melis") studies of the metallurgical characteristics of the mineralization indicate that the estimated mill recoveries will be in the range of 97.7% using a low-temperature, low pressure acid leach and resin-in-pulp mill process. At this grade, the mill facilities will be compact and only need to process on average 70,000 tonnes of blended ore per year. The resin-in-pulp process has been used in the Former Soviet Union and China. Mintek, in partnership with Bateman Engineering N.V, developed the MetRIX(TM) RIP technology that allows continuous countercurrent transfer of resin and pulp.

Table 4: Unit OPEX Estimate Summary, Roughrider Uranium Deposit, West and
East Zones Only
Operating Costs Unit (C$) Unit OPEX Estimate
Mining $/t milled 421
Processing $/t milled 480
General and Administration $/t milled 126
Average Unit operating
Cost $/t milled 1,026
Average Unit operating
Cost $/lb U3O8 14.44

Investor Conference CallHathor invites investors and the media to join a conference call with the Company's President and CEO, Mike Gunning and Vice President Project Development, Jay Fredericks on Wednesday, September 14, 2011 at 10:00 a.m. Pacific Daylight Time.To join the call, please dial 1-877-353-9586 (Canada and US) or 00 800 9358 7111 (International). An operator will put your call through. A recorded version of the proceedings will be available on our website, shortly after the call.Continued No Action to Cameco's Hostile and Predatory OfferOn August 30, 2011 Cameco Corporation made an unsolicited all-cash takeover bid offer for Hathor of $3.75 per Hathor share. This effectively values Hathor and its Roughrider Uranium Deposit, as well as the Russell Lake and Henday projects, at approximately $468 million or $3.37 per Hathor share after adjusting for approximately $52 million, or $0.38 per fully diluted Hathor share, of existing Hathor cash as of the date of the Offer (calculated on a fully diluted basis, including proceeds from outstanding options and warrants). Hathor's closing share price on the TSX on Monday, September 12, 2011, the last day of trading before this news release, was $4.10.The Board of Directors of Hathor, together with its legal and financial advisors, is assessing Cameco's offer. The Company continues to urge its shareholders not to respond to the Cameco offer until the Company has formally responded to the offer. Hathor will formally respond to Cameco's unsolicited bid on September 14th, 2011.Midwest Northeast PropertyThe Midwest Northeast Property (the "Property"), which contains the Roughrider Uranium Deposit, is located within the main uranium-producing eastern corridor of the Athabasca Basin. The Property comprises 3 mineral leases covering 598 ha. The Property is within 25 km of operating uranium mine, mill and tailings facilities established at Rabbit Lake and McClean Lake during the past 35 years of production in the Athabasca.Subsequent to the successful acquisition of Terra Ventures Inc. (see news release dated August 5, 2011), Hathor owns 100 % of the Property and the Roughrider Uranium Deposit.Alistair McCready, Ph.D., P.Geo., Hathor's V.P. Exploration and Michael Gunning, Ph.D., P.Geo., Hathor's President & Chief Executive Officer, are Qualified Persons as defined by National Instrument 43-101 and have reviewed and approved the technical disclosures in this news release.For more information on Hathor, please visit the Company's website at www.hathor.ca.Dr. Michael H. Gunning, President & CEOHathor Exploration LimitedThis press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Such forward-looking information concerns Hathor's anticipated operations in future periods, planned exploration and development of its properties, and plans related to its business and other matters that may occur in the future. This information relates to analyses and other information that is based on expectations of future performance and planned work programs. Statements concerning mineral resource estimates may also be deemed to constitute forward-looking information to the extent that they involve estimates of the mineralization that will be encountered if a mineral property is developed. Forward-looking information is subject to a variety of known and unknown risks, uncertainties and other factors which could cause actual events or results to differ from those expressed or implied by the forward-looking information, including, without limitation: exploration hazards and risks; risks related to exploration and development of natural resource properties; uncertainty in Hathor's ability to obtain funding; precious and base metal price fluctuations; recent market events and conditions; risks related to the uncertainty of mineral resource calculations and the inclusion of inferred mineral resources in economic estimation; risks related to governmental regulations; risks related to obtaining necessary licenses and permits; risks related to Hathor's business being subject to environmental laws and regulations; risks related to Hathor's mineral properties being subject to prior unregistered agreements, transfers, or claims and other defects in title; risks relating to competition from larger companies with greater financial and technical resources; risks relating to Hathor's inability to meet its financial obligations under agreements to which it is a party; ability to recruit and retain qualified personnel; and risks related to Hathor's directors and officers becoming associated with other natural resource companies which may give rise to conflicts of interests.This list is not exhaustive of the factors that may affect Hathor's forward-looking information. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the forward-looking information. Hathor's forward-looking information is based on the reasonable beliefs, expectations and opinions of management on the date the statements are made and Hathor does not assume any obligation to update forward-looking information if circumstances or management's beliefs, expectations or opinions change, except as required by law. For the reasons set forth above, investors should not place undue reliance on forward-looking information. For a complete discussion, please refer to Hathor's Annual Information Form and unaudited financial statements and MD&A for its most recently completed financial year on SEDAR at www.sedar.com.To view "Figure 2. Location of Roughrider within the hub of the uranium mining district in the northeastern Athabasca Basin, Saskatchewan", please visit the following link: http://media3.marketwire.com/docs/727546_fig_2.pdfTo view "Figure 3. Aerial view of the Roughrider project. Outline of West zone is from Technical Report, January 15, 2011; outline of East Zone is from Technical Report, June 28, 2011; and outline of Far East Zone surrounds drill holes with anomalous radioactivity (news release dated September 6, 2011)", please visit the following link: http://media3.marketwire.com/docs/727546_fig_3.pdfTo view "Figure 4. Three dimensional block model of the Roughrider Uranium Deposit, positioned mostly below the unconformity, on top of and peripheral to the Midwest Archean dome. Outline of West Zone is from Technical Report, January 15, 2011; outline of East Zone is from Technical Report, June 28, 2011; and purple outline of Far East Zone surrounds drill holes with anomalous radioactivity (news release dated September 6, 2011)", please visit the following link: http://media3.marketwire.com/docs/727546_fig_4.pdfTo view "Figure 5: Mine development plan showing decline", please visit the following link: http://media3.marketwire.com/docs/727546_fig_5.pdfNeither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX Exchange) accepts responsibility for the adequacy or accuracy of this release.