The Northern Arizona Uranium Project, LLC

Uranium Breccia Pipe Mining

Breccia Pipe AnatomyBreccia pipes are vertical or near vertical, circular to elliptical bodies of broken rock.

The roots of a breccia pipe lie within caverns created in the Mississippian Redwall Limestone and extend up to 3000 ft vertically.

Dissolving of the Redwall Limestone 330 million years ago formed numerous caves in the thick Redwall Limestone. When the cave roof collapsed, overlying formations subsided into or were deposited in the resulting sinkhole. After later formations were deposited, later periods of cave formation and limestone dissolution renewed the collapse features. This gravitational collapse produced steep-sided, pipe-like bodies that are filled with brecciated rock.

While the structural depression over a beccia pipe may range in diameter up to 0.5 mi. or more, the breccia pipe diameters range up to about 600 ft.; the normal range being 200 to 300 ft.

Mineralized Breccia PipesNot all breccia pipes are highly mineralized.

Ore forming fluids rich in metals flowed into the forming breccia pipes along different rock strata. There were several mineralization events that took place over geologic time. After the ore forming fluids entered the breccia pipes, hydrological variations in water pressure moved the ore forming fluids up and down the pipe. The primary direction for the ore forming fluids was upward however. The metal rich fluids encountered environments within the pipe that caused the metals to precipitate out of solution and form various minerals.

Mineralized breccia pipes are enriched in a large suite of elements. Mineralized breccia pipes have been mined for Uranium, Copper, Lead, Zinc, and Silver. Some pipes have also been enriched in Cobalt, Molybdenum, Nickel, and Vanadium.

The ore body of a mineralized breccia pipe is generally located between 900 and 2000 ft below the current ground surface.

Trace amounts of the metallic elements found in the pipe were carried further up the pipe to what is now the surface. The soils above a mineralized pipe are generally enriched with many of the metals present deeper in the pipe. The metallic halo of a mineralized breccia pipe can be found by comparing the concentration of the metallic elements in the soils above a target pipe to the concentrations of soils away from the pipe.

Geochemical Survey to Find Evidence of a Mineralized Breccia Pipe

The Makapuu breccia pipe target circledin red. The green pins are the backgroundsample locations.

A geochemical survey of a breccia pipe targetcompares the concentrations of elements insidethe target area to concentrations outside the target area. The samples assayed are from the soil, 4 to 8 inches below the surface.

To start the comparison the “mean” concentration value for all the samples - both target and background- is determined for eachelement of interest.

An enrichment correlation value is found by thefollowing formula as put forth by the USGS:

CV = (# of Target Val > Mean) - (# of Bckgrnd Val > Mean) # of Target Values # of Backgrnd Values

The USGS determined that a correlation valuegreater than or equal to 0.2 meant that anelement was enriched. Less than or equal -0.2 meant that the element was depleted.In between these two values and the correlationwas indeterminate.

Geochemical Survey for the Makapuu Breccia Pipe Target Results #2

Some of the background samples near the Makapuu breccia pipe target may be on the metallichalos of other nearby breccia pipes. Samples were taken east of the road as shown, in an areafree of breccia pipe morphology. These samples may be considered to be a truer background.

The correlation values increase dramatically. Eight of nine primary indicator elements areenriched and two of the secondary elements are enriched.

Mapping a Breccia Pipe Using Geomagnetic Methods Controlled Source Audio-Magnetotelluric

Controlled Source Audio-Magnetotelluric or CSAMT is a geo-magnetic method to determine the conductivity of the earth (rock)at a single point at various depths - from the surface to greater than 3000 ft.

Multiple sounding can be made and theresults modeled as 2-D slices of the earth. The different conductivities are shownas different colors.

Multiple 2-D slices can be put together anda 3-D model of the earth's conductivity in thestudy area can be shown.

The more stations at which data wasacquired, the more accurately the modelscan be rendered.

The data stations for the Makapuu brecciapipe target are shown on the left.

Geochemical Survey for the Makapuu Breccia Pipe Target Results #1

There are nine primary elements and four secondary elements that are the best indicators for evidence of a mineralized breccia pipe. The primary elements are Uranium, Molybdenum,Lead, Zinc, Copper,Silver, Nickel, Cobalt, and Arsenic. The secondary elements are Vanadium, Chromium, Iron, and Lithium.

The Makapuu target is enriched in 7 of the 9 primary elements.

Makapuu Breccia Pipe Target CSAMT 2-D Results

Makapuu Breccia Pipe Target CSAMT 2-D Results

Makapuu Breccia Pipe Target CSAMT 3-D Results

These are the 2-D Modelsof the data stations splicedtogether.

From this model, a 3-D cubemodel can me made.

The 3-D model uses the interactions of the various 2D slices and the Geophysicist uses their knowledge to create a modelthat best represents the acquired data. The more data points, the better the model.

The following 3 slides showthe 3-D cube model cut-aways for the Makapuubreccia pipe target.

Makapuu Breccia Pipe Target CSAMT 3-D Results

Makapuu Breccia Pipe Target CSAMT 3-D Results

Makapuu Breccia Pipe Target CSAMT 3-D Results

The AIEA Breccia Pipe Target

Drilling is the Only Way to Know if Valuable Minerals Exist

Four to five drill holes, up to 2000 feet deep need to be drilled on a Breccia pipe target to determine if Uranium or other valuable metals are present in economically recoverable amounts.

Drilling is the most expensive exploratory expense - costing up to $500,000 per pipe.

Radiological Logging of the Drill Holes

To determine whether there is Uranium in the breccia pipe, a down hole radiological logging probe is lowered into the drill hole and continuous radiation level data is taken while the probe is lowered then raised the depth of the drill hole.

The probe is calibrated to equate the radiation level detected to the percentage of U3O8 present.

In this way, it can be determines if there are large enough ore bodies at a good enough concentration of Uranium to have a economically viable mine.

The results from the first exploratory drill holes are used as a first cut to see if there are good values of uranium or other minerals to make a viable mine.

60 or more surface drill holes will be drilled and logged and possibly as many or more holes drilled from underground locations to prove and quantify ($$$) the resources of the mine.

The Denison “Canyon Mine”

The Denison Mines “Canyon Mine” shown as a 3D model. The pipe was surface drilled with45 holes with an average depth of 1364 ft. Four holes were drilled about 2000 ft. Radiometriclogging of the drill holes every 0.5 feet created 37,422 U3O8 equivalent values used toestimate the total tonnage of ore, where it is located, and what value this ore may be worth.

The Denison “Canyon Mine”

The Canyon mine is a relatively small breccia pipe. The diameter of the pipe in the major Uranium bearing area is about 80 feet. The ore extends into the ring fracture zone at this depthhowever and so the ore body is about 150 ft in diameter. This ore body accounts for about 70% of the Uranium so far delineated.

Canyon Mine > 70,500 tonnes of Ore

eU3O8 averages 1.08%

1,523,000 lbs of eU3O8

The Net Profit on The Canyon Mine should be in the range of 49 million to 100 million Dollarsbefore taxes.

Price$99 Million $65/lbs Exploration and Startup $20 Million

$129 Million $85/lbs Operating Costs @ $200/ton $14.1 Million

$152 Million $100/lbs Shutdown & Restoration $15 Million

Value of eU3O8

Past Uranium Breccia Pipe MinesProduction and Value

Mine Production (tons) Grade(%U3O8) Pounds U3O8(Mil) Value @ $90/lbs

Hack #1 133,800 0.53 1.42 $127,800,000

Hack #2 497,100 0.7 7.00 $630,000,000

Hack #3 111,300 0.5 1.12 $100,800,000

Pigeon 439,400 0.65 5.70 $513,000,000

Kanab N. 260,800 0.53 2.77 $249,300,000

Pinenut 137,800 0.53 1.45 $130,500,000

Hermit 36,339 0.76 0.55 $49,500,000

The Makapuu and Aiea Claims

The Northern Arizona Uranium Project, LLC

The NAU project has two properties:

The Makapuu Claims and the Aiea Claim

The Makapuu Claims have a confirm Breccia Pipe with a supporting Geochemical Survey that indicates that the pipe is likely to be mineralized.

The Aiea claim has a promising CSMAT survey that indicates the possibility of a Breccia Pipe.

Both properties need additional CSAMT work performed. The Makapuu Breccia pipe needs to be better defined and another possible pipe at the end of line 3 needs to be investigated.

The Aiea target needs additional CSAMT work to determine if a breccia pipe exists. If a pipe is found, a follow-up geochemical survey will need to be done to confirm the likely-hood that a mineralized pipe exists.

The required funding for the additional CSAMT work is $10,000.

The required funding for the Geochemical survey is $2,500.

The Northern Arizona Uranium Project, LLC Drilling Proposal Submitted

At this time The NAU project, LLC has submitted a proposal to the US Forest Service to conduct drilling operations on the Makapuu and Aiea breccia pipe targets.

There is a lengthy review process and it is highly likely that several studies may have to be funded (Archaeological and others) to facilitate the approval process.

The drilling operation is to determine if there is sufficient evidence of Uranium mineralization to pursue the development of a mine or mines.

A $500,000 budget is required for the drilling operation.

The Northern Arizona Uranium Project, LLC New Member Participation

The NAU Project, LLC is interested in having experienced investors with an interest in mineral exploration as new members. **

A New Member's investment purchases a “percentage interest” in the LLC.

The percent interest is calculated per section 2.2 of the Operating Agreement.

A “Highest Risk” Multiplier of 30X is applied to all investments of cash and services for all activities prior to those that directly support the Drilling Operation. These are activities that have the highest risk because very little is known about the targets.

A “Medium Risk” Multiplier of 10X is applied to all activities that support Drilling Operations. At this point, all drill targets will be confirmed Breccia Pipes with supporting Geochemical Surveys for a mineralized pipe.

The total capitalization to open a mine is set at $20 million. A new members ”percentage interest” is calculated by Multiplying their investment with the Risk Multiplier and dividing by $20 million.

For example: A person investing $500,000 to fund the drilling operation would receive

$500,000 X 10 = 0.25 x 100 = 25% Membership Interest $20,000,000

The minimum investment accepted is $1000.

**Mineral Exploration Investing is A HIGH RISK ENDEVOR.

The Northern Arizona Uranium Project, LLC Investment Returns

Investors can make money on their Membership Interest in two basic ways.

1. Upon the development and operation of a producing mine, there will be distribution of profits per the Operating Agreement.

2. The Members can sell their Membership Interest in The NAU Project, LLC in accordance with the Operating Agreement.

Note: Membership in the LLC is NOT a registered security. There exist no ready market for selling a Member's Interest.

It is likely that upon proving that a viable resource is established, that a Major Mining Company will be solicited to purchase a majority of Membership Interest in order to put a mine into production. It would be at this time that Members of the LLC would have their first opportunity tocash out their investment.