A flurry of activity in the South African uranium sector leads to majors and juniors talking of consolidation.

Increased operating costs by 4% mainly due to increased volumes of 9.5%; a 2.5% increase in power costs due to winter rates and increased labour costs;

Added 56 000 ounces of low-cost heap leachable NI 43-101 compliant resources at TGME through a successful drilling programme bringing  the total compliant resources to date to 88 740 ounces. This was achieved at a current cost of R196/oz ($26.50/oz);

Reported the first profitable gold production from First Uranium’s Buffelsfontein Tailings Recovery Project one year ahead of schedule due to First Uranium’s acquisition of Mine Waste Solutions, also completed in this quarter.

According to Simmers chief executive, Gordon Miller, the achievements during the quarter reflect the Company’s commitment to its growth strategy.

“Simmers’ has a very specific goal, which is to become a ‘tier one’, low-cost producer of gold and uranium with a target production of one million ounces of gold by 2012 and 2.3 million pounds of uranium by 2011. Our growth strategy to achieve these goals remains on track.

“Key to our ability to deliver on these goals is the organic conversion of our current resource base to reserves; the roll-out of an aggressive exploration programme and the active pursuit of new business and acquisitions that fit the Simmers’ profile,” said Miller.

In June 2007, Simmers raised R350-million through a share placement in order to fund two accretive gold projects aimed at converting resources to reserves:

• R170-million has been earmarked for the re-opening of the high-grade Number Five Shaft at Buffelsfontein which has added 700,000 reserve ounces at a capital cost of US$33 per reserve ounce.Production at Five Shaft will commence in the current financial year and is expected to deliver 12 000 ounces by March 2008 at a cash cost of US$378 per ounce.

• R130-million will be used to accelerate the Company’s exploration programme in Mpumalanga by funding a feasibility study to confirm the findings of the detailed conceptual study that has outlined the potential to define 1-million ounces of resources and 733 000 ounces of reserves by March 2009.  Should the feasibility prove successful, production could ramp up to a rate of 250 000 ounces per annum by F2011 at a total capital and operating cost of $240 per ounce, assuming an exchange rate of R7.40 to the US$.

"The CDN$150 million raised through the private placement of senior unsecured convertible debentures in May means that FIU has the funds to conduct a drilling programme and feasibility study in respect of the possible expansion of its Ezulwini underground uranium and gold mine.”

Additionally, with the acquisition of Mine Waste Solutions (MWS) in June 2007, FIU gained a fully-operational gold mine tailings and re-processing facility adjacent to its Buffelsfontein Project.

As a result of the fund-raising activity concluded in the period under review, Miller said that Simmers was now fully-funded in terms of being able to develop and grow its current operations and convert its concept study of the heap leach potential in Mpumalanga to a bankable feasibility study and that the Company did not anticipate any further funding calls with respect to the refurbishment of the high-grade Five Shaft at Buffelsfontein Gold Mine; the Mpumalanga exploration programme and the development of First Uranium’s two projects.

“Despite this, a significant value gap exists, in that the Simmers share price equates fully to its underlying investment in FIU, while the gold assets are ascribed a marginal value.  As at close of business on 16 August 2007, Simmers’ gold assets were valued at 33 cents per share which is significantly  below the independent NPV at 10% of R2,7bn and the R4bn valuation based on peer group reserve and resource trading multiples,” said Miller.

He added that a disorderly market generated by margins calls on single stock futures positions and the softening of the uranium spot price to its current US$105 level had caused a knock-on effect on the Simmers’ share price, despite First Uranium’s pricing models being based on US$50 per pound. 

Miller said he was confident that the key to making the Simmers’ share price less vulnerable to the vagaries of the market was to ensure that its projects came on stream as quickly as possible:  “The key ingredient to ensuring long-term value for our stakeholders is to deliver on our current accretive projects.” 

Going forward, Miller said that the implementation of a rehabilitation plan for Buffelsfontein 5 Shaft would greatly enhance the ability of Buffelsfontein to meet its long term production and cost forecasts.

“It is imperative that a safe operating environment be created. This is our first priority and while it might delay the opening up of large high grade blocks in the Five Shaft area, we believe that the interests of all stake holders will be best served by ensuring that best practise is implemented for this project. It is unthinkable that any short- cuts be taken in this regard,” said Miller.

At TGME the decision to focus on short term production gains through the commissioning of heap leach pads to treat surface material should result in significant improvements in revenue and costs reductions.

“Commissioning of the first heap leach pad at Elandsdrift is dependant on final approval of the Social and Labour plan by the DME, which is being fast tracked,” said Miller.

At Elandsdrift, the Environmental Management Plan (EMP) for the mining right application has been submitted to the DME and the affected authorities for their comments.

An extensive drill campaign to identify further surface and underground mining opportunities is well underway in the Pilgrim’s Rest/Sabie goldfields.

A detailed Management Discussion and Review (MD&A) for the quarter can be found on the Company’s website at www.simmers.co.za under the heading ‘Latest Results’ on the Simmers home page. A summary of the MD&A is available on SENS and on the Simmers website.

Simmers will conduct a conference call with investors to discuss the Company’s first quarter results for the 2008 financial year and related matters at 15h00 local Johannesburg time on Tuesday 21 August 2007. The conference call will be available simultaneously to all interested investors and the media at South Africa                      on 011 535 3600, or toll-free on 0800 200 648 (South Africa only).

This report for the quarter ended 30 June 2007 contains certain forward-looking statements concerning Simmers’ operations, economic performance and financial condition as well as plans and expectations.  These statements, including without limitation , those concerning the economic outlook for the gold and uranium industry and market, expectations of gold and uranium prices, production, the start and completion of certain exploration and production projects, may contain certain forward-looking views.  Such views involve both known and unknown risks, assumptions, uncertainties and other important factors that could materially influence the actual performance of the Company.  No assurance can be given that these will prove to be correct and no representation or warranty express or implied is given as to the accuracy or completeness of such views or as to any of the other information contained herein.  Simmers’ future results may differ materially from past or current results and actual results may differ materially from those projected in the forward-looking statements.

Simmer & Jack is a gold and uranium company with operations in South Africa’s Gauteng, North West and Mpumalanga provinces. The company has two wholly-owned gold operations: Buffelsfontein underground gold mine near Klerksdorp (BGM) and Transvaal Gold Mining Estates (TGME) in the Pilgrim’s Rest/Sabie area. It has a 65.49% stake in Toronto Stock Exchange (TSX) and JSE-listed First Uranium Corporation (FIU) which has two near-term projects: the Ezulwini gold and uranium mine near Westonaria, and the Buffelsfontein Tailings Recovery Project which produced its first gold this quarter one year ahead of schedule thanks to the acquisition of Mine Waste Solutions (MWS) which came with an operating gold plant;   uranium production is expected to begin at MWS in November 2008. At Ezulwini, the first module of the gold plant is scheduled for April 2008, while the first module of the uranium plant is scheduled for completion in June 2008.

 

Toronto and Johannesburg – First Uranium Corporation (TSX:FIU, JSE:FUM, CA33744R1029:ISIN) (“First Uranium” or “the Company”) today announced that the Company has defined initial underground and surface drilling targets related to the possible expansion of the Ezulwini underground uranium (“U3O8“) and gold (“Au”) mine (the “Expansion Program”), located approximately 40 kilometres south-west of Johannesburg in the Witwatersrand Basin of South Africa. The Expansion Program is on track and the drilling program to test the newly defined drill targets is an integral part of the Expansion Program to justify the capital required for the sinking of an additional shaft, which would be used to access and mine the uranium and gold resource over and above the existing mine plan from the existing main shaft.

“While we remain focussed on near-term uranium and gold production at our two South African projects, we recognize how important it is to our shareholders for us to have additional avenues of growth,” said Gordon Miller, President and Chief Executive Officer of First Uranium. “This Expansion Program has the potential to significantly increase production beyond levels currently planned and thereby extend the current 19-year mine plan, which only consumes 20% of the significant resource area at this site.”

According to First Uranium’s mine plan for Ezulwini, as disclosed in the technical report filed on May 9, 2007, the Company expects to commence hoisting in October 2007, with the first gold plant module scheduled for completion in April 2008 and the first uranium plant module scheduled for completion in June 2008. According to the existing mine plan, the average annual production at Ezulwini for the life of the project (2007-2024) is expected to be 290,000 ounces of gold and 888,000 pounds of uranium.

The Ezulwini mine began operation in the 1960s, producing gold until 2001, when the mine was placed on care and maintenance. Uranium was mined from the separate Middle Elsburg ore body, which was developed twenty years after development of the Upper Elsburg ore body, during the period from 1982 to 1997.

Detailed studies for the Expansion Program have been completed by Minxcon (Pty) Limited, independent South African mining and exploration consultants engaged by the Company to validate and capture historic mine sampling and mill data which has been recovered from archives that were somewhat in disarray. Recent in stope face sampling procedures have been conducted to verify some of this historic data. Minxcon has utilised this historical face sampling information to project higher grade pay-shoot trends for the purposes of defining drill target areas. The attached plan depicts the pay-shoot trends identified and illustrates these trends in relation to existing mine development. Due to the existing development, it will be possible to drill some of these target areas from existing underground excavations.

The outputs of this work have been compared to historical grades as delivered to the plant for a period of 14 years during the period 1982 to 1995: This recent and comprehensive analysis resulted in the derivation of a mine recovery factor2 of 74% for gold and 65% for uranium for the entire historic reporting period. These mine recovery factors have been used to define potential expected plant delivery grades from six respective drilling target areas. The table on the companies website summarizes the expected plant delivery grades from the conceptual mining areas of each identified target zone based upon a Bayesian approach.

Notes:
1) This table has been derived using population statistics on face sampling data; geo-statistics have been applied to pay shoot 1 only, resulting in a lower Au plant delivery grade of 5.9g/t (versus 6.61g/t) and a higher U3O8 plant delivery grade of 0.642kg/t (versus 0.630kg/t)
2) Mine Recovery Factor is the combination of dilution and loss factors applied to convert “in stope” sampling grade to a plant delivery grade
3) Grades depicted are based upon face sample averages within mining areas adjacent to drill target areas
4) Cut off grades per pay-shoot area were determined using grade tonnage curves derived from a historical mining extraction of 65%
5) Average stope mining width was 180 centimetres

The surface area for each of the respective drill target areas, as shown in the table also on the companies website, has been defined by assuming that historical geological pay-shoot continuity exists such that a metal content per available mining square metre can be ascribed to these areas.

1) Au and U3O8 equivalents have been calculated using only First Uranium’s stated long-term pricing assumptions of US$500 per ounce for Au and US$50 per pound for U3O8.
2) By example, a grade of 1Kg U3O8 per tonne equates to 6.88 grams per tonne of Au.

Based upon an internal concept evaluation, the combined Phase 1 drill target areas have the potential to delineate a substantial portion of the measured and indicated resources required to justify the construction of a new 250,000 tonne-per-month shaft and mill expansion, which could effectively triple production capacity form the uranium-bearing Middle Elsburg ore body. The conceptual evaluation excludes any potential contribution from lower-grade areas known to exist between pay shoots, and excludes any potential contribution from the UE1a Reef. The Company expects that it will need to drill approximately 16,000 metres to complete Phase 1 of the Expansion Program.

The Phase 2 target areas, which are significantly larger in area, have been less explored in the past since mining activity was concentrated in the northern section of the property. New drill target areas will be defined in Phase 2 once the face sampling information from historic mining in these areas has been validated for the UE1A Reef. Based on very limited information, gathered from three previous surface drill holes, it is apparent that a zone of thicker width gold and uranium mineralisation exists where the E9EC and UE1A Reefs sub outcrop against each other. This zone which varies in thickness, from 7 to 26 metres, has been intersected at three points along a three-kilometre section of strike stretching from the northern boundary of the property and is open ended to the southern boundary. This zone has been mined extensively on the property to the north of Ezulwini, where mechanised mining methods were used to successfully extract gold over mining widths of up to 25 metres. First Uranium will continue to define additional drill target areas to add to the findings of the existing Expansion Program and expects to disclose the complete drill results and resource estimation by the end of 2008.

The Expansion Program excludes any prospecting that will take place on contiguous properties to the north-east and south-east of the Ezulwini lease area covered by the prospecting application submitted to and accepted by, the South African Department of Minerals and Energy, as disclosed in First Uranium’s news release dated on April 16, 2007.

All technical disclosure in this news release relating to the Expansion Program is extracted from studies prepared in accordance with National instrument 43-101 (“NI 43-101) by Daan Van Heerden, Pr.Eng of South African mining and exploration consultants, Minxcon (Pty) Limited, who is a “qualified person” under NI 43-101 and is independent of First Uranium. The disclosure contained in this news release has been reviewed and approved by Mr. Van Heerden. The life of mine estimate, projected average annual production and inferred resource grades in this news release relating to the Ezulwini underground mine project is extracted from a technical report entitled “Technical Report - Preliminary Assessment of the Ezulwini Project, Gauteng Province, Republic of South Africa” (the “Technical Report”) originally submitted on November 8, 2006, revised on December 5, 2006 and January 31, 2007 and further revised on May 9, 2007 prepared in accordance with National instrument 43-101 (“NI 43-101) by R. Dennis Bergen, P.Eng and Wayne Valliant, P.Geo of Scott Wilson Roscoe Postle Associates Inc., each of whom is a “qualified person” under NI 43-101 and is independent of First Uranium. The disclosure in this news release related to the RPA technical report has been reviewed and approved by Mr. Bergen and Mr. Valliant. The economic analysis contained in this news release is contained in the Technical Report and is based, in part, on inferred resources, and is preliminary in nature. Inferred resources are considered too geologically speculative to have mining and economic considerations applied to them and to be categorized as Mineral Reserves. There is no certainty that the reserves development, production and economic forecasts on which the preliminary assessment contained in the Technical Report is based, will be realized.

Johannesburg – Simmer and Jack Mines Limited (“Simmers”) (JSE:SIM, ISIN:ZAE00006722) today announced that its Buffelsfontein Gold Mine, in conjunction with First Uranium Corporation (TSX:FIU, JSE:FUM, ISIN:CA33744R1029), has commissioned an initial technical assessment to investigate the deepening of Buffelsfontein Gold Mine’s Strathmore Shaft. The Strathmore Shaft is located on the down dip southern-most extent of Buffelsfontein Gold Mine approximately two kilometres southeast of the mine’s #10 shaft, near Klerksdorp in North West province.

The Strathmore Shaft Deepening Project is part of Simmer’s bid to continue converting its substantial resources to reserves. Buffelsfontein Gold Mine is a wholly-owned subsidiary of Simmer and Jack, which in turn has a 65.49% stake in First Uranium Corporation.

“While we continue on plan and on budget with the development of First Uranium’s Buffelsfontein uranium and gold tailings recovery project and are proceeding with the opening up programme at Simmers’ Buffelsfontein Gold Mine, we believe we have significant opportunities on this site to grow beyond those projects and are actively exploring the possibilities,” said Gordon Miller, Chief Executive Officer of both First Uranium and its parent, Simmers. “At current gold and uranium prices the rock value should be significant, which enhances the potential viability of the Strathmore project. In the event that it does prove viable, it has the potential to boost Simmers’ proven and probable resources by up to 50%.”

During May 1989, the mine’s previous owners, Genmin, completed a full stand-alone concept study and capital cost estimate of the Strathmore project. Simmers has commissioned an independent study to review the 1989 study using current cost and gold price assumptions.

As part of the 1989 study, eight diamond core holes were drilled, of which seven intersected the Vaal Reef. Deflection holes drilled from the seven holes resulted in a further 35 reef intersections. The mineable area is estimated to be 2.7 million square metres with reef at depths of between 3,500 and 4,100 metres having an average dip of 28 degrees. According to the 1989 study, the expected average gold grade was estimated to be 1,297 cm g/t with an expected yield of 7.3 grams per tonne. The area under consideration is approximately 1,000 metres deeper than the workings and infrastructure of Simmers’ Buffelsfontein mine. To unlock the value of this project, it would require the deepening of the Strathmore Shaft by an additional thousand metres to drop it down in excess of four kilometres.

See companies website for Strathmore Non-Compliant Conceptual Resource (May 1989)

“The Vaal Reef is the dominant reef mined in the Klerkdorp gold fields and contains attractive uranium values to the order of 0.60 kilograms per tonne,” said Jim Fisher, Executive Vice President and Chief Operating Officer of First Uranium. “The Vaal Reef was displaced by the Jersey fault, which cuts across the Klerksdorp gold field and impacts similarly on the down dip extension of Anglogold Ashanti’s Great Noligwa mine to the west of Buffelsfontein. Anglogold have developed their Moab Khotsong mine in the same displaced down dip extension of the Vaal Reef.”

The initial technical assessment (ITA) is currently underway. It is anticipated that Simmers will be able to report on the findings by the end of 2007. Subject to the results of the ITA, a further feasibility will be commissioned.

Cautionary Language Regarding Forward-Looking Information

This news release contains certain forward-looking statements. Forward-looking statements include but are not limited to those with respect to the price of uranium and gold, the estimation of mineral resources and reserves, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, costs and timing of development of new deposits, success of exploration activities, permitting time lines, currency fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage and the timing and possible outcome of pending litigation. In certain cases, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “does not anticipate”, or “believes” or variations of such words and phrases, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Simmer & Jack Mines, Limited to be materially different from any future results, performance or achievement expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, the actual results of current exploration activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, possible variations in grade and ore densities or recovery rates, failure of plant, equipment or processes to operate as anticipated, accidents, labour disputes or other risks of the mining industry, delays in obtaining government approvals or financing or in completion of development or construction activities, risks relating to the integration of acquisitions, to international operations, to prices of uranium and gold. Although Simmer & Jack has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. It is important to note, that: (i) unless otherwise indicated, forward-looking statements indicate the Company’s expectations as at June, 2007; (ii) actual results may differ materially from the Company’s expectations if known and unknown risks or uncertainties affect its business, or if estimates or assumptions prove inaccurate; (iii) the Company cannot guarantee that any forward-looking statement will materialize and, accordingly, readers are cautioned not to place undue reliance on these forward-looking statements; and (iv) the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statement even if new information becomes available, as a result of future events or for any other reason.

In making the forward-looking statements in this news release, Simmer & Jack has made several material assumptions, including but not limited to, the assumption that: (i) approvals to transfer or grant, as the case may be, mining rights will be obtained; (ii) metal prices, exchange rates and discount rates applied in the preliminary economic assessments are achieved; (iii) mineral resource estimates are accurate; (iv) the technology used to develop and operate its two projects has, for the most part, been proven and will work effectively; (v) labour and materials will be sufficiently plentiful as to not impede the projects or add significantly to the estimated cash costs of operations; (vi) outstanding approvals for the completion of an acquisition, the transfer of mining rights and the approval of mining rights will be granted; and (vii) black economic empowerment (“BEE”) investors will maintain their interest in the Company and their investment in the Company’s common shares to a sufficient level to continue to support the Company’s compliance with 2014 BEE requirements.

About Simmer and Jack Mines, Limited

Simmer & Jack Mines, Limited (“Simmers”) is a leveraged gold and uranium company with a diverse range of projects encompassing deep level pillar mining, shallow, low-cost mining and surface operations. A development company with the aim of becoming a tier one, low-cost gold and uranium producer, Simmers’ focus is on sustainable expansion through the organic growth of its large resource base, coupled with a targeted exploration programme.