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Annual Report 2011

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					Annual Report 2011
Corporate Directory


Uranex NL
ABN 26 115 111 763
Directors
J C Jooste-Jacobs (Non-Executive Chairman)
M G Gauci (Managing Director)
S B Hunt (Non-Executive Director)
M S Chalmers (Non-Executive Director)
F Poullas (Non-Executive Director)

Company Secretary
J M Nethersole

Registered Office                  Tanzania Office
Level 3, 15 Queen Street           No 1, Pecanwood Apartment
Melbourne Vic 3000                 Plot No. MS/MAS/51 1
Australia                          Masaki, Dar es Salaam, Tanzania
Tel +61 3 9621 1533                Tel +255 22 260 1179
Fax +61 3 9621 1544                Fax +255 22 260 1179

Internet Address                   Email Address
www.uranex.com.au                  info@uranex.com.au

Share Register                     Auditors
Link Market Services               Ernst & Young
Level 1, 333 Collins Street        8 Exhibition Street
Melbourne Vic 3000                 Melbourne VIC 3000
Australia                          Australia
Tel 1300 554 474
Fax +61 3 9287 0303

Bankers                            Lawyers
National Australia Bank Ltd        Herbert Greer
330 Collins Street                 Level 20, 385 Bourke Street
Melbourne Vic 3000                 Melbourne Vic 3000
Australia                          Australia

ASX
Uranex shares (code UNX) are listed on the Australian Securities Exchange (ASX)
Content


Chairman’s Letter to Shareholders           3

Directors’ Report                           4
Uranex Project Locations                    9
Tanzania                                    10
Australia                                   16
Health, Safety, Environment and Community   16
Review of Financial Condition               18
Auditor’s Independence Declaration          22
Remuneration Report (Audited)               23

Corporate Governance Statement              29

Statement of Comprehensive Income           35

Statement of Financial Position             36

Statement of Changes in Equity              37

Statement of Cash Flows                     38

Notes to the Financial Statements           39

Directors’ Declaration                      75

Independent Auditor’s Report                76

Additional Shareholder Information          78
                                                                                                     URANEX ANNUAL REPORT 2011




Chairman’s Letter to Shareholders


                                                                 North where some interesting and encouraging results have
                                                                 been achieved in the exploration programme to date. Early
                                                                 indications are that the mineralisation is similar to the
                                                                 Kayelekera uranium deposit (46Mlb U3O8 at 802ppm),
                                                                 owned and operated by Paladin Energy Limited located in
                                                                 nearby Malawi, and the Nyota uranium deposit (101.4Mlb
                                                                 @ 422ppm U3O8), owned by ARMZ and operated by
Chairman Johann Jacobs                                           Uranium One Inc located 30km to the north.
                                                                 The Company’s secondary focus is the 100% owned
Dear Shareholder,                                                Songea Coal project in Southern Tanzania. The project covers
                                                                 a total area of 2,500km2 in the Ruhuhu Basin, where eleven
The company has undergone significant changes over
                                                                 (11) recognised coalfields have been identified. The two
the past financial year with the new management team
                                                                 most significant coalfields Ketewaka-Mchuchuma (804Mt)
achieving a number of milestones, including:
                                                                 and Ngaka (251Mt), occur in a similar geological setting
(1) Recapitalisation of the Company in November 2010,            within 50km of the Songea Coal Project. Following
    through a Rights Issue;                                      encouraging results from desktop and field studies, the
(2) Confirmation of more than 69km of uranium anomalies          company has identified the Lumecha Coalfield, interpreted
    within the the Mkuju Uranium Project;                        to cover approximately 250-300km2, where a 3,000m drilling
(3) Completion of approx 6,000m drilling and mineralogical       program is set to commence.
    studies indicating a major new uranium discovery at          Of significance in Southern Tanzania is the recent signing by
    Mkuju;                                                       the Tanzanian Government of a contract of US $3 billion for a
(4) Appointment of key personnel to the Mkuju team; and          mining and infrastructure corridor between the Ruhuhu
(5) Divestment of non-core assets worth $20 million to           Basin and the Port of Mtwara.
    be settled by or on 22 November 2011, subject to due         IMX Resources Ltd recently announced its intentions to
    diligence and various approvals.                             distribute the 24,269,623 shares it holds in Uranex to its
The most significant event to affect the uranium and nuclear     shareholders. Uranex will manage the distribution to
energy industry, in many years, was the Fukushima-Daiichi        ensure an ongoing orderly market by providing facilities
Nuclear Power Plant incident in Japan. Shareholders should       to shareholders who do not wish to hold Uranex shares
note that this incident occurred;                                and those who will be left with unmarketable parcels
                                                                 of Uranex shares.
•	 after	an	earthquake	measuring	8.9	on	the	Richter	scale;
•	 resulting	in	one	of	the	worst	tsunamis	in	living	memory;      I take this opportunity of thanking Matt Gauci and his
                                                                 management team for the efforts they have put in to
•	 at	a	plant	which	was	built	40	years	ago.
                                                                 achieve the results over the last year. Also, I express
Although	some	countries	have,	as	a	consequence,	reviewed	        my appreciation to my fellow Directors for the guidance
their policy regarding use of nuclear power, the majority have   and support they have given me since being appointed
committed themselves to the use of uranium as a major            Chairman of your Company. Finally, I express my sincere
source of nuclear fuel for power generation, albeit including    thanks to our Shareholders who have supported the
more stringent safety factors. Ultimately we believe that this   Company during the last year.
incident will not negatively impact in the demand for
uranium in the medium and long term.
During the year the Company’s main focus was changed
to its 100% owned Mkuju Uranium Project located in
the Southern Tanzania. The project covers a total area
of more than 4,000km2 and incorporates Karoo basin
sediments which are the main host for sandstone uranium          Mr. J C Jooste-Jacobs
mineralisation. The key exploration targets have been Likuyu     Chairman



                                                                                                                              3
DIRECTORS’ REPORT




Directors’ Report


The Board of Directors of Uranex NL present their annual         Matthew G Gauci
report of the Company for the year ended 30 June 2011.           (Managing Director – Age 38)
                                                                 B.Sc., MBA. (University of WA)
Directors                                                        Appointed 27 August 2010
The	names	and	particulars	of	the	qualifications,	experience	     Matthew Gauci has broad resources experience particularly
and special responsibilities of the Directors in office during   in the uranium sector. He was a founding member of the
and since the end of the financial year, unless otherwise        Australian Uranium Association. Also, Matthew was a
stated, are as follows:                                          founding Director of Scimitar Resources Limited and Epsilon
                                                                 Energy Limited. More recently, he acted as a consultant
Johann C Jooste-Jacobs                                           to uranium companies in Australia and Africa.
(Chairman – Age 57)
B.Acc, MBL, FCA, FAICD                                           Former directorships of listed companies in last
Alternate Director for Bianca Manzi – resigned                   three years:
24 August 2010                                                   •	 Quest	Minerals	Ltd.
Chairman – appointed 27 August 2010                              •	 Epsilon	Energy	Ltd.	
Johann has more than 30 years experience in the resource         Special responsibilities:
sector where he has managed established companies,
                                                                 •	 Managing	Director	and	Chief	Executive	Officer.
acquisitions,	expansions	and	start-up	mining	operations	
                                                                    H
                                                                 •	 	 e	was	appointed,	on	17	September	2010,	to	the	
in Australia, South Africa and Indonesia. His more recent
                                                                    Sustainability Committee.
roles have included his role as Chairman of IMX Resources
Limited, and a number of executive roles in ASX listed
                                                                 Stephen B Hunt
companies. In addition, he holds various directorships
                                                                 (Non-Executive Director – Age 49)
in private resource focused companies active in Australia.
                                                                 B.Bus (Marketing)
Former directorships of listed companies in last                 Appointed 27 August 2010
three years:                                                     Stephen Hunt has significant minerals marketing experience
•	 Australian	Zircon	NL                                                                                    .
                                                                 gained from more than 16 years with BHP In addition,
•	 Sphere	Resources	Inc.                                         Stephen has been a Director of Australian Zircon NL and
                                                                 more recently he is a Director of his own minerals trading
Special responsibilities:                                        business, Standout Enterprises Ltd, as well as iron ore
   H
•	 	 e	was	appointed,	on	17	September	2010,	to	both	             producer, IMX Resources Ltd.
   the Audit and the Remuneration Committee.
                                                                 Former directorships of listed companies in last
                                                                 three years:
                                                                 •	 Australian	Zircon	NL

                                                                 Special responsibilities
                                                                    H
                                                                 •	 	 e	was	appointed,	on	17	September	2010,	Chairman	
                                                                    of the Remuneration Committee.




4
                                                                                                      URANEX ANNUAL REPORT 2011




Mark S Chalmers                                                   Andrew E Daley
(Non-Executive Director – Age 53)                                 (Non-Executive Chairman – Age 64)
BSc, PE, SME                                                      B.Sc. (Hons) Mining Engineering, Grad Dip Geoscience,
Appointed 10 September 2010                                       FAusIMM, C Eng (UK), MIOM3
                                                                  Resigned 27 August 2010
Mark Chalmers, a Mining Engineer, is currently Operations
Manager, Paladin Limited, with responsibility for mining          Andrew Daley joined the Board on 30 November 2007  .
in Africa. Prior to that appointment, he was principal of         He held senior management positions with international
Uranium Associates Pty Ltd, a uranium industry consulting/        mining and financial companies.
advisory company. Mark was Managing Director of Uranium
                                                                  Andrew is a Non-Executive Director of ASX listed
Equities	Limited	(ASX:	UEQ)	a	uranium	explorer	and	uranium	
                                                                  PanAust Limited, Kentor Gold Ltd and Chairman of
technology development company and Managing Director of
                                                                  Dragon Mining Limited.
Urtek LLC, a global leader in uranium recovery technology
from phosphoric acid. Currently he chairs the Australian          Former directorships of listed companies in last
Government’s Uranium Council, an initiative focused on            three years:
removing impediments to the advancement of the uranium
                                                                  •	 Minerva	Resources	plc
industry in Australia. Previously, Mark has held a number of
                                                                     G
                                                                  •	 	 ladstone	Pacific	Nickel	Ltd.,	an	AIM,	London	listed	
executive positions including; Senior Vice President and
                                                                     company
General Manager of Heathgate Resources Limited, the
operator of the Beverley ISL uranium mine in Australia,           Special responsibilities prior to resignation:
Vice President – Operations of Cameco Corporation’s USA              C
                                                                  •	 	 hairman	of	Remuneration	Committee	and	of	the	Board	
uranium operations. Over the course of his career, he has            (appointed 27 November 2009; resigned 27 August 2010).
been involved with over a dozen uranium producing projects.
                                                                  Dr. John W Cottle
Former directorships of listed companies in last
                                                                  (Managing Director – Age 63)
three years:
                                                                  B.Sc. (Hons) Applied Geology, PhD. Economic Geology and
•	 Uranium	Equities	Limited                                       Geostatistics, FAusIMM, Chartered Professional (Geology)
Special responsibilities                                          Retired 27 August 2010

•	 	 e	was	appointed,	on	17	September	2010,	Chairman	
   H                                                              John Cottle was appointed to the Board on 23 January 2008.
   of the Sustainability Committee and a member of the            He has over 30 years experience as a geologist and
   Audit and Remuneration Committees.                             in senior management roles with mining companies.

Frank Poullas                                                     Former directorships of listed companies in last
(Non-Executive Director – Age 33)                                 three years:
Appointed 10 September 2010                                       •	 None

Frank Poullas is employed by a major investment fund              Special responsibilities prior to retirement:
and in his personal capacity is a professional investor           •	 Managing	Director	and	Chief	Executive	Officer
specialising in the uranium sector. For the last eight years he
has been involved in various ventures increasing shareholder
value in the uranium sector.

Former directorships of listed companies in last
three years:
•	 None

Special responsibilities
   H
•	 	 e	was	appointed,	on	17	September	2010,	Chairman	
   of the Audit Committee and a member of Remuneration
   Committee.




                                                                                                                              5
DIRECTORS’ REPORT CONTINUED




Neil Cusworth                                                      Richard G Udovenya
(Non-Executive Director – Age 62)                                  (Non-Executive Director – Age 51)
Resigned 27 August 2010                                            B.Com, LL.B, F.Fin, AICD
                                                                   Resigned 28 August 2010
Neil Cusworth joined the Board on 9 March 2010.
He has 35 years experience as a mechanical engineer                Richard Udovenya joined the Board on 30 November 2007    .
and professional management within the mining and                  He is a corporate lawyer and is a Non-Executive Director
resource industries both in Australia and overseas.                of Dart Mining NL (ASX Code: DTM).
His speciality areas include commercial strategies,
capital investment processes and project management.               Former directorships of listed companies in last
                                                                   three years:
Special responsibilities prior to resignation:                        N
                                                                   •	 	 on-Executive	Director	of	Dart	Mining	NL	
•	 	 ember	of	the	Sustainability	and	Remuneration	
   M                                                                  (ASX Code: DTM).
   Committees (resigned 27 August 2010).
                                                                   Special responsibilities prior to resignation:
Bianca Manzi                                                          H
                                                                   •	 	 e	was	Chairman	of	the	Audit	Committee	(appointed	on	
(Non-Executive Director – Age 39)                                     27 November 2009) and a member of the Remuneration
B.Sc. (Hons) Geology, MAIG                                            Committee until his resignation on 28 August 2010.
Resigned 24 August 2010
Bianca Manzi joined the Board on 30 November 2007      .           Company Secretary
A geologist with over 15 years experience in the exploration
                                                                   John M Nethersole (Company Secretary
and mining industry, she is a member of the Australian
                                                                   and Chief Financial Officer – Age 56)
Institute of Geoscientists. Currently, Bianca is the Exploration
                                                                   B.Bus, CA.
Manager for IMX Resources Limited.
                                                                   John was appointed as Company Secretary on 28 May 2008.
Former directorships of listed companies in last                   He has in excess of 30 years experience in accounting and
three years:                                                       finance in a broad range of industries including 16 years in
•	 None                                                            resource related companies. He has previously held the
                                                                   position of secretary for several publicly listed companies.
Special responsibilities prior to resignation:
   B
•	 	 ianca	was	appointed,	on	28	June	2010,	the	inaugural	
   Chairperson of the Sustainability Committee and was a
   member of the Audit Committee and Remuneration
   Committee until her resignation on 24 August 2010.


Share options granted to directors and senior management
During and since the end of the financial year, an aggregate of 11,900,000 share options have been granted to Directors and
Employees. The Company’s Directors and five highest remunerated officers have been granted options as part of their
remuneration as follows:

 Directors and                                   Number of                                              Number of Ordinary
                                                                              Issuing Entity
 Senior Management                             Options Granted                                          Shares under option
 J C Jooste-Jacobs                                 2,000,000                    Uranex NL                    2,000,000
 M G Gauci                                         3,500,000                    Uranex NL                    3,500,000
 M S Chalmers                                      1,500,000                    Uranex NL                    1,500,000
 S B Hunt                                          1,500,000                    Uranex NL                    1,500,000
 F Poullas                                         1,500,000                    Uranex NL                    1,500,000
 J M Nethersole                                      300,000                    Uranex NL                      300,000
 B J Borg                                            250,000                    Uranex NL                      250,000
 A	Querzoli	(resigned)                               250,000                    Uranex NL                      250,000
 S I Lawley                                          200,000                    Uranex NL                      200,000




6
                                                                                                        URANEX ANNUAL REPORT 2011




Interests in Shares and Options of the Company
As at the date of this report, the interests of the Directors in the shares and options of Uranex NL were:

 Directors                                                       Fully Paid Ordinary Shares                  Options
 M G Gauci                                                               843,033                           3,500,000
 J C Jooste-Jacobs                                                       170,000                           2,000,000
 S B Hunt                                                                100,000                           1,500,000
 M S Chalmers                                                             20,000                           1,500,000
 F Poullas                                                             1,570,550                           1,500,000




Remuneration of Directors and Senior                                Uranium & Nuclear Energy
Management                                                          During the year, the uranium spot price reached a high of
Information about the remuneration of directors and senior          US$73.50 on January 27 2011 whilst its lowest point was
management is set out in the Remuneration Report of this            US$52.50 on June 30 2011.
Directors’ Report on pages 23 to 30.                                The most significant event to affect the uranium and nuclear
                                                                    energy industry was the Fukushima-Daiichi Nuclear Power
Corporate Information
                                                                    Plant incident in Japan. Shareholders should note that this
Uranex NL is a Company limited by shares that is                    incident	occurred	after	an	earthquake	measuring	8.9	on	the	
incorporated and domiciled in Australia. The shares are listed      Richter scale, resulting in one of the worst tsunamis in living
on the Australian Securities Exchange (“ASX”)                       memory; at a plant which was built 40 years ago. Although
under the ASX code UNX.                                             some	countries	have,	as	a	consequence,	reviewed	their	
                                                                    policy regarding use of nuclear power, the majority have
Nature of Operations and Principal Activities                       committed themselves to the use of uranium as a major
                                                                    source of nuclear fuel for power generation, albeit including
The principal activity of the Group during the year was
                                                                    more stringent safety factors. Ultimately we believe that this
prospecting and exploration for minerals. There was no
                                                                    incident will not negatively impact in the demand of uranium
significant change in the nature of that activity during
                                                                    in the medium and long term. The managers of the
the year.
                                                                    Fukushima plant have taken every step necessary to ensure
Employees                                                           public safety in managing the reactors at the site. Importantly
                                                                    a recent report from MIT on “Learning the lessons of
Uranex NL had seven employees as at 30 June 2011                    Fukishima” highlighted a number of areas for improvement
(2010: nine employees).                                             while also addressing the links to energy policy and
                                                                    comparative-risk aspects in addition to pure technical
Review of Operations                                                considerations.
During the year, Uranex has continued to advance projects in
Tanzania and Australia with a view to economic development
                                                                     Managing Director Matthew Gauci and China Consultant
of these projects in the near term.                                  Philip Kirchlechner with State Nuclear Power Technology
                                                                     Corporation Chief Engineer Dr Wan Jun in Beijing




                                                                                                                                 7
DIRECTORS’ REPORT CONTINUED




Uranium Demand                                                                                                                              Uranium Supply
Leading industry experts foresee uranium demand growing                                                                                     Leading industry experts generally foresee many
by an average of 3.1% per year through to 2014. Despite the                                                                                 impediments to future supply growth, including the lower
Fukushima incident, China, India, United States and South                                                                                   current uranium price which hinders the development and
Korea are continuing their aggressive nuclear build plans                                                                                   financing of new projects, the challenging permitting
while Saudi Arabia, United Arab Emirates, Turkey and                                                                                        environment presented by certain political jurisdictions, the
Vietnam have announced new nuclear build plans.                                                                                             poor execution of current and new producers delaying supply
                                                                                                                                            of new product.
According to the World Nuclear Association, there are
441 reactors operating globally and 60 under construction.                                                                                  The majority of the growth in supply will be coming from
Additionally, there are 155 reactors planned and another                                                                                    companies that are new producers such as Paladin Energy
338 proposed. Should all planned and proposed reactors                                                                                      Limited and Uranium One Inc. The majority of reduction in
be built, world total would be more than 994, or a 125%                                                                                     supply will be from the secondary market, which currently
increase over the current level. Officially China has said it                                                                               makes up 24% of total supply in 2010 and will reduce to only
is targeting 80GW of nuclear generation by 2020 since the                                                                                   8% by 2020.
Fukishima incident. As a result, China’s uranium demand is
                                                                                                                                            Global supply in 2010 was 188Mlb U3O8 and is expected to
forecast to grow from 9.5Mlb U3O8 in 2010 to 63Mlb U3O8 in
                                                                                                                                            reach 239Mlb U3O8 by 2020.
2020 i.e. 5% of global demand in 2010 to 20% in 2020*.
Global uranium demand in 2010 was 190Mlb U3O8 and is                                                                                        Uranium Price Implications
expected to increase to 310Mlb U3O8 by 2020 based on                                                                                        Given the forecast supply and demand scenarios presented
current forecast nuclear build.                                                                                                             by leading industry experts, even after the Fukushima
                                                                                                                                            incident,	it	can	be	seen	there	is	an	anticipated	disequilibrium	
                                                                                                                                            in	the	supply-demand	equation	commencing	in	2012	and	
                                                                                                                                            continuing through 2020.
                                                                                                                                            Given	this	significant	forecast	disequilibrium	in	the	
                                                                                                                                            supply-demand	equation	commencing	in	2012,	a	uranium	
                                                                                                                                            spot price level of between $70 and $80/lb U3O8 is
                                                                                                                                            anticipated through 2020*.


Global U3O8 Supply/Demand Balance and U3O8 Price*



                        115,000
                                                                                                                                                                                                                                                   $100.00
                         90,000

                         65,000                                                                                                                                                                                                                    $80.00
                                                                                                                                                                                                                                                             Uranium Price (US$/lb)
    thousand lbs U3O8




                         40,000

                         15,000                                                                                                                                                                                                                    $60.00

                         -10,000
                                                                                                                                                                                                                                                   $40.00
                         -35,000

                         -60,000
                                                                                                                                                                                                                                                   $20.00
                         -85,000

                        -110,000                                                                                                                                                                                                                   $0.00
                                                                                                                                                                                                           2012E
                                                                                                                                                                                                                   2014E
                                                                                                                                                                                                                           2016E
                                                                                                                                                                                                                                   2018E
                                                                                                                                                                                                                                           2020E
                                   1970A
                                           1972A
                                                   1974A
                                                           1976A
                                                                   1978A
                                                                           1980A
                                                                                   1982A
                                                                                           1984A
                                                                                                   1986A
                                                                                                           1988A
                                                                                                                   1990A
                                                                                                                           1992A
                                                                                                                                   1994A
                                                                                                                                           1996A
                                                                                                                                                   1998A
                                                                                                                                                           2000A
                                                                                                                                                                   2002A
                                                                                                                                                                           2004A
                                                                                                                                                                                   2006A
                                                                                                                                                                                           2008A
                                                                                                                                                                                                   2010A




                                                   Net Balance (000 lbs, LS)                                                                                        U3O8 Price (US$/lb)




*RBC Capital Markets


8
                                                                                 URANEX ANNUAL REPORT 2011




Uranex Project Locations




Tanzania                                     Australia

     Itigi -– calcrete uranium                    Alligator Rivers – unconformity uranium
 2   Manyoni – calcrete uranium               2   Mount Danvers – unconformity uranium
 3   Bahi – calcrete uranium                  3   Thatcher Soak – calcrete uranium
 4   Songea – coal                            4   Bremer Basin – sandstone uranium
 5   Mkuju – sandstone uranium




                                 2                       2

                                     3                           3


                                                             4

                          14




                                 4
                                         5




                                                                                                        9
DIRECTORS’ REPORT CONTINUED




Tanzania


Mkuju Uranium Project (Uranex 100%)                            30km to the north of Mkuju. Nyota was recently the subject
                                                               of	an	A$1.16	billion	all	cash	takeover	offer	which	equates	to	
The Company’s main focus is the 100% owned Mkuju
                                                               $10.26/lb	of	resource,	representing	the	high	quality	of	the	
Uranium Project located in the south-west of Tanzania,
                                                               uranium system in Southern Tanzania.
close	to	the	borders	of	Mozambique	and	Malawi.	The	
project area comprises 12 granted licences plus applications   The key exploration targets are surficial sandstone hosted
covering a total area of over 4,000km2. The project area       stacked, tabular and roll front deposits similar to Nyota
incorporates Karoo basin sediments which are the main          and Kayelekera.
host for sandstone uranium mineralisation throughout
                                                               A recently completed radiometric study review at Mkuju
sub-Saharan Africa.
                                                               has confirmed sixty-nine (69)km of uranium anomalies within
The Kayelekera uranium deposit (46Mlb U3O8 @ 802ppm),          the 4,000km2 of tenements. The anomalies are present
owned and operated by Paladin Energy Limited, is located       within five (5) separate prospect areas, namely Likuyu North
in Malawi and occurs in similar rocks 300 km to the west       (5km), Mteramwahi South (19km), Likuyu South (18km),
of Mkuju. The Nyota uranium deposit (101.4Mlb @ 422ppm         Mteramwahi North (17km) and Matemanga (10km). All
U3O8), owned by ARMZ and operated by Uranium One Inc,          anomalies are interpreted to occur within the Karoo
is located in Southern Tanzania and occurs in similar rocks    sandstone.




Mkuju Uranium Project Regional Radiometric Anomalies




10
                                                                                                           URANEX ANNUAL REPORT 2011




Southern Tanzanian Uranium and Coal Projects




                                                                                                        DAR ES
                                                                                                       SALAAM




               TAN ZAN I A




                                      SONGEA
                                    COAL PROJECT




                                2

                                      3                                                                               MTWARA
                    4


                                     SONGEA
MA LAWI
                                                       MKUJU
                                                   URANIUM PROJECT




                                                              MOZ AMBIQU E



    Karoo Basin Sediments                                                Liganga (NDC) ~1,200Mt Iron Ore
    Ruhuhu Basin                                                     2   RTX JV
    Proterozoic & Archaean Basement                                  3   Lumecha
    Uranex Mkuju and Songea Projects                                 4   Mchuchuma (NDC) ~804Mt Coal
    Uranium Project/Prospect                                             Nyota (Uranium One) ~101.4Mlb U3O8 @ 422ppm
    Coal Project/Prospect                                                Likuyu North
    Iron Ore Project/Prospect                                            Likuyu South
    Proposed railway line                                                Mteramwahi North
    (location approximate)                                               Mteramwahi South
                                                                         Matemanga
                                                                         Kayelekera (Paladin) 46.4Mlb U3O8 @ 802ppm


                                                                                                                                  11
DIRECTORS’ REPORT CONTINUED




During the period, approximately 7  ,800m of aircore, reverse    While all holes intersected tabular style mineralisation,
circulation and diamond drilling was completed at the Likuyu     significant intersections occur in an interpreted coarse
North prospect on targets previously defined by RC drilling,     sandstone	at	depth	between	reduced	mudstone	sequences	
downhole geological logs and the results of local geological     in at least five holes at Likuyu North. These holes host the
(lithology and structure) mapping. This geological and           thickest and highest grade intercepts at the project (10.5m @
mineralisation model has provided a 3 dimensional                1,124ppm U3O8 in hole MKDD0009 and 13m @ 614ppm
interpretation of the potential location of large sandstone      U3O8, in hole MKDD0014), confirming the potential of the
hosted tabular and roll-front mineralisation accumulations.      sandstone hosted roll-front model.
The drilling program focused on two previously identified
                                                                 Aircore drilling and down hole gamma logging from the 2011
anomalous zones out of a total strike extent of 5km.
                                                                 program confirmed the Likuyu North Prospect as a new
Formal laboratory assays from the 2010, 2,400m diamond           uranium discovery. Substantial high grade intersections
drilling program were received from SGS South Africa Ltd         were reported including:
(SGS) mineral laboratories confirming and, in some cases,
                                                                    8
                                                                 •	 	 5m	@	474ppm	eU3O8 (including 25m @ 957ppm eU3O8
exceeding the preliminary results obtained on-site during
                                                                    and 13m @ 1,151ppm eU3O8)
the program from the Niton Portable XRF analyser. Uranium
mineralisation was intersected in every hole drilled with the       6
                                                                 •	 	 8m	@	1,094ppm	eU3O8 (including 2m @ 3,612ppm
most significant intersections being:                               eU3O8)

•	 10.5m	@	1,124ppm	U3O8 including 2m @ 2,135ppm U3O8               6
                                                                 •	 	 4m	@	748ppm	eU3O8 (including 2m @ 3,881ppm eU3O8)

•	 13m	@	614ppm	U3O8, including 4.5m @ 1,153ppm U3O8             •	 50m	@	327ppm	eU3O8 (including 5m @ 833ppm eU3O8)

•	 4.0m	@	337ppm	U3O8 including 0.5m @ 1,463ppm U3O8                4
                                                                 •	 	 2m	@	605ppm	eU3O8 (including 19m @ 1,068ppm
                                                                    eU3O8)
•	 2m	@	1,244ppm	U3O8
•	 7.5m	@	352ppm	U3O8




Mkuju Uranium Project (Likuyu North Prospect) Drilling Results, North East Zone




12
                        URANEX ANNUAL REPORT 2011




2010 Diamond Drilling




2011 Aircore Drilling




                                              13
DIRECTORS’ REPORT CONTINUED




By the end of the financial year, the uranium mineralisation   The potential implication for this favourable mineral
extended over 0.75km by 0.25km area within the                 assemblage and habit (grain size and association with other
prospective uranium anomaly of 5km by 1km with two             minerals) of uranium includes ease of leaching under acidic
aircore rigs in operation.                                     conditions and expected high yield recoveries. Further, the
                                                               composition of the gangue (non-uranium) minerals and,
Metallurgical analysis of four mineralised samples from the
                                                               most importantly, the absence of acid-consuming carbonates
2010 drilling program were analysed by Scanning Electron
                                                               indicate	the	potential	of	a	very	low	cost	for	reagents	required	
Microscope (SEM) at SGS in Johannesburg. Three of the
                                                               in the uranium extraction process.
samples were selected from the high grade zones
interpreted to contain primary mineralisation, while one       While the drilling results confirmed the prospectivity for the
sample was selected from the zone containing secondary         discovery and development of surficial sandstone hosted
uranium mineralisation.                                        stacked and tabular deposits as well as deep sandstone
                                                               hosted roll-front deposits, the initial metallurgical testing
The SEM testing confirmed that the dominant primary
                                                               of four (4) samples has indicated the potential for low cost
uranium mineral is uraninite (uranium oxide – UO2), while
                                                               processing and high yield recoveries at the Likuyu North
the dominant secondary uranium mineral to be autunite
                                                               prospect.
or meta-autunite (hydrated calcium uranyl phosphate).
The uraninite occurs as fine masses or coatings on other       The Company plans an aggressive exploration and
grains and are typically either liberated or exposed, while    development program at Likuyu North to extend the known
the autunite and meta-autunite occurs as individual grains     uranium mineralisation and to define an initial resource, as
tending to be either liberated or exposed.                     well as drill test all other anomalies within the project area.




Diamond Core Tray from Mkuju Uranium Project (Likuyu North Prospect) 2010 Program




14
                                                                                                   URANEX ANNUAL REPORT 2011




Mkuju Uranium Project (Likuyu North Prospect) 2011 Planned Holes




Songea Coal Prospect (Uranex 100%)                               Manyoni Uranium Project (Uranex 100%)
The Songea Coal Project covers a total area of approximately     The Manyoni Uranium Project is located in central Tanzania
2,500km2 in the Ruhuhu Basin, where eight (8) Karoo Basins       and is host to 29Mlb U3O8 at 100ppm cut-off and is
containing eleven (11) recognised coalfields have been           currently the subject of a Pre-Feasibility Study (PFS) due
identified. The two most significant coalfields Ketewaka-        for	completion	in	Q4	2011.	Work	to	date	has	been	referred	
Mchuchuma (804Mt) and Ngaka (251Mt), occur in a similar          to the Australian Nuclear Science and Technology
geological setting which is within 50km of the Songea Coal       Organisation (ANSTO). An initial review by ANSTO
Project.                                                         confirmed poor recoveries were the result of different
                                                                 mineralogy and lower grades than first thought. ANSTO are
In the basin, coal tends to occur at the base of the Karoo
                                                                 subsequently	conducting	a	new	metallurgical	test	work	
sandstones and close to the contacts with gneissic rocks
                                                                 program to identify leach conditions that may improve
(basement). The Mchuchuma Formation has been sub-
                                                                 recoveries and to investigate variability in uranium leach
divided into two distinct facies with the lower (and most
                                                                 conditions at Manyoni.
significant) or sandstone-coal facies having thick coal seams
with relatively low sulphur and ash contents. It consists of
succession thick high-energy sandstone and arkoses
separated by coal seam ranging in thickness from less than
1m to 7 .5m with good continuity.
Following encouraging results from desktop and field
studies the company has identified the Lumecha Coalfield,
interpreted to extend over 250-300km2. The upcoming
drilling program will comprise 3,000m aircore and diamond
drilling with the objective of confirming the presence, extent
and	quality	of	coal	within	the	Lumecha	Coalfield	and	is	due	
to	be	completed	by	the	end	of	Q4	2011.


                                                                                                                          15
DIRECTORS’ REPORT CONTINUED




Australia


Thatcher Soak Project (Uranex 100%)                              identified from previous drilling. 1,630m of drilling was
                                                                 completed, and the program returned encouraging indications
The Thatcher Soak Project is located within the main Yilgarn
                                                                 of	uranium	and	other	mineralisation	occurrences.	Subsequent	
calcrete province in Western Australia. Other deposits in
                                                                 to the report date, the company announced the signing of a
this province include Yeelirrie, Lake Way, Centipede and
                                                                 Heads of Agreement to divest the project. (Refer to
Lake Maitland. The Thatcher Soak Uranium Project is host to
                                                                 significant events after the reporting date for more details).
14Mlb U3O8 at 100ppm cut-off and is currently the subject of
an internal scoping study. Work to date has included desktop     Alligator Rivers (Uranex 100%)
financial modelling and project development. The Company
announced its intention to divest its interest in the Thatcher   The Alligator Rivers project is located in the Northern
Soak	project	and	subsequent	to	the	report	date	confirmed	        Territory Pine Creek geosyncline which hosts world class
the signing of a Heads of Agreement to divest the project.       uranium deposits such as Ranger, Nabarlek and Jabiluka.
(Refer to significant events after the reporting date for more   The Company’s tenements incorporate a number of key
details).                                                        geological elements considered favourable for the formation
                                                                 of unconformity-style mineralisation that typify the above
Bremer Basin (Uranex 100%)                                       major uranium deposits. The Company is planning a
                                                                 3,000m	RC	Drilling	program	in	Q4	2011	to	test	key	drill	
The Bremer Basin project covers over 1,000km2 and is
                                                                 targets	subsequent	to	the	report	date,	the	company	
located in southern Western Australia. During the period
                                                                 announced the signing of a Heads of Agreement to divest
a planned 6,000m aircore drilling program commenced,
                                                                 the project. (Refer to significant events after the reporting
targeting sedimentary, redox related deposits in
                                                                 date for more details).
palaeochannels of the Bremer Basin. Uranium mineralisation
of 2m at 185ppm U3O8, including 1m at 248ppm U3O8 was




Health, Safety, Environment and Community


Sustainability                                                   Health and Safety
At Uranex, we believe that the commitment to the principles      Uranex has continued to strengthen and build on employee
and practices of good corporate and environmental                knowledge and awareness of OH&S principles and
citizenship	goes	beyond	the	requirements	of	relevant	            practices. To lay the foundations for a solid understanding
authorities. Uranex has a Sustainability Committee that          in this area, this year all permanent field staff in Tanzania
focuses on Health, Safety, Environment and Community             completed a two week OH&S training course in addition
which reports to the Board of Directors.                         to senior first aid training. The results of this training have
                                                                 been increased levels of staff contribution to safety
We aim to deliver best practice in all areas of sustainable
                                                                 meetings, increased involvement in continuous
development throughout the life of our projects and
                                                                 improvement initiatives and reduced risks of accidents
activities. This means working closely with local
                                                                 and incidents in the field. This year the Uranex Emergency
communities, protecting the environment, monitoring the
                                                                 Response system was also reviewed and updated with
social and environmental effects of exploration and future
                                                                 an emphasis on developing and maintaining emergency
operations, striving to increase awareness on health issues,
                                                                 preparedness for staff working in remote locations.
and the development and maintenance of an effective safety
culture.


16
                                                                                                   URANEX ANNUAL REPORT 2011




Environment                                                      Community awareness meeting at Likuyu Seka Village
                                                                 held in 2011
During the year, Uranex implemented a large scale
environmental audit program to inspect and assess the
condition of former drill sites and exploration areas, to
determine the outcomes following rehabilitation and closure.
Over 150 former drill sites were inspected with positive
overall outcomes including rapid revegetation rates,
consistent with high rainfall conditions in former exploration
areas. Uranex is committed to the principles of biodiversity,
conservation and sound environmental management.

Radiation Management
All Uranex exploration activities are conducted in accordance
with site specific radiation management plans. In accordance
with Uranex radiation management plans employees are
inducted and trained in radiation safety and occupational
and environmental monitoring is conducted to ensure that
radiation exposures are kept “As Low As Reasonably
                                                                 The Mwamko Garden Project is proudly sponsored
           ”
Achievable. This year radiation monitoring results have
                                                                 by Uranex
continued to verify that exposures are very low (similar to
normal background radiation) and our exploration practices
continue to be highly protective of people and environments.

Community
This year Uranex initiated a community consultation program
in the Mkuju project area in Tanzania. Public meetings were
held in Likuyu Seka, Likuyu Mandela and Mtonya Villages
with the aim of seeking community feedback and providing
information about uranium, exploration and mining. These
meetings were attended by more than 400 local people in
total. Community engagement is a central part of Uranex
operations and the consultation process has been effective
in maintaining ongoing participation and communication with
local stakeholders.
Uranex continues to contribute to local communities in
the areas of cultural awareness, education, health and           The first harvest of vegetables from the Mwamko Garden
environment through the Uranex Community Partnership             Project in Likuyu Village
Program. This year Uranex assisted with various projects
including the Mwamko Garden Project at the Likuyu Village.
The Mwamko Group have started a sustainable local
business selling vegetables. The initial set up, seeds and
equipment	were	provided	by	Uranex	in	order	to	get	the	
project started. The Mwamko Garden Project has been
inspirational in the community, highlighting further
opportunities for sustainable business in the region.




                                                                                                                          17
DIRECTORS’ REPORT CONTINUED




Review of Financial Condition


Operating Results for the Year                                      $1,960,000 (2010:$2,893,000) before costs by way of a share
The Group incurred an operating loss after tax of                   placement, a rights issue of $5,780,311, $1,346,500 from
$11,103,431 (2010:$10,230,585) (restated for the change in          option exercise and $63,000 from partly paid shares
accounting policy and prior period adjustments set out in           in	2011	to	add	further	liquidity	to	the	Group.	The	Group	has	
Note 1 of the financial statements). Refer to Note 1 of the         liquid	funds	of	$3,399,791	(2010:$1,972,894)	at	the	reporting	
financial statements for further details regarding the              date that will be available for future operational use.
accounting policies, changes thereto, and prior period              The group has no borrowings (2010: $Nil).
adjustment.
                                                                    Share Issues
Summarised segment operating results are as follows:
                                                                    During	the	year	the	Company	raised	funds	from	equity	as	
                                           2011                     follows:
                                 Revenue              Results          $
                                                                    •	 	 1,960,000	(2010:$2,893,000)	from	a	share	placement	of	
                                       $                    $          14,000,000 (2010:14,563,062) ordinary fully paid shares.
Australia                        888,806           (9,695,864)         $
                                                                    •	 	 5,780,311	from	a	rights	issue	of	41,278,809	ordinary	fully	
East Africa                       95,238            (7,926,397)        paid shares.
Intersegment                      (96,000)          6,518,830          $
                                                                    •	 	 1,346,500	from	the	exercise	of	options	and	subsequent	
elimination                                                            issue of 4,400,000 ordinary fully paid shares.
Revenue and losses               888,044           (11,103,431)     •	 $63,000	from	a	call	paid	on	100,000	partly	paid	shares.
before tax
                                                                    Capital Expenditure
Liquidity and Capital Resources
The statement of cash flows shows an increase in cash               Capital	expenditure	on	property,	plant	and	equipment	during	
and	cash	equivalents	for	the	year	ended	30	June	2011	of	            the year was $56,471(2010: $170,134).
$1,442,758 (2010:$6,550,457). However, the group raised


Group Performance

Annual Net Income

Annual Net Income                                       2011            2010             2009             2008             2007
Consolidated loss after tax                       11,103,431      10,230,585       2,302,097         1,834,410        2,979,783


Shareholder Returns

                                         2011            2010
Basic loss per share (cents)               7.41          9.97
Diluted loss per share (cents)             7.41          9.97

Dividends
No dividends have been paid during the year (2010:$nil).
The Directors do not recommended the payment of a
dividend for this financial year.




18
                                                                                                      URANEX ANNUAL REPORT 2011




Risk Management                                                   Also, at the meeting 6 million options were granted by
                                                                  members to the Directors of the Company at no cost.
The Board is responsible for ensuring that risks are identified
                                                                  The terms comprise; expiry date of 26 August 2014, exercise
on a timely basis and that the Group’s activities manage the
                                                                  price of 63 cents for 3 million of the options and
risks identified by the Board.
                                                                  84 cents for the remainder, this represents a 50% and
The Group believes that it is crucial for all Board members       100% respectively increase on the underlying share price.
to be a part of this process. The Board has not established
                                                                  On 29 September 2011, the Company completed a share
a separate risk management committee but reviewed the
                                                                  placement of 4,793,715 fully paid ordinary shares raising
major risks to the business with management and has the
                                                                  $1,677,800 from institutional investors and Patersons
following processes in place to monitor it:
                                                                  Securities Limited’s clients.
   T
•	 	 he	Board	has	undertaken	strategic	reviews	of	its	
   activities and conveyed to management and shareholders         The Company announced on 29 September 2011 a capital
   its objectives.                                                raising by way of a Share Purchase Plan. The key terms
                                                                  of a share offering to Australian registered members include
   T
•	 	 he	Board	approved	operating	budgets	and	at	its	meetings	
                                                                  the issue price of $0.35 per share, a ceiling of $15,000
   monitors actual expenditure to budget.
                                                                  per holding (subject to scale back), minimum subscription
   T
•	 	 he	Board	reviews	sovereign,	operating	and	                   of $500 and closing on 21 October 2011.
   environmental risks with management and from time to
   time external consultants provide reports on its practices.    On 31 August 2011, IMX Resources Ltd (IMX), the
                                                                  Company’s largest shareholder, announced that it was
   T
•	 	 he	Board	assesses	political	and	sovereign	risks	relating	
                                                                  distributing in specie its shareholding in Uranex to its
   to its international assets by monitoring local media and
                                                                  shareholders at the rate of 1 Uranex share for every
   politics. Company representatives liaise with all levels of
                                                                  5.67 shares held in IMX.
   Government to maintain awareness as to matters that
   may affect the Company.                                        No other matter or circumstance has arisen since 30 June
                                                                  2011 which has significantly affected, or may significantly
Significant Changes in the State of Affairs                       affect the operations of the Group, the result of those
                                                                  operations, or the state of affairs of the Group in
There were no significant changes in the state of affairs of
                                                                  subsequent	years.
the Company or the Group during the financial year.
                                                                  Likely Developments and Expected Results
Significant Events After the Reporting Date
                                                                  In the opinion of the Directors, there are no other matters
On 19 July 2011 the Company raised $1.526 million from the
                                                                  or developments in the interest of the Group to provide
sale of 4,240,000 fully paid ordinary shares (previously
                                                                  additional information, except as reported in the Directors’
forfeited).
                                                                  report, which relates to likely developments in the operations
The Company announced on 23 August 2011 the signing               of the Group and the expected results of those operations in
of a Heads of Agreement to sell its Australian assets             financial	periods	subsequent	to	30	June	2011.
comprising Thatcher Soak, Bremer Basin and Alligator Rivers
projects to a Chinese investor for $20 million. A non-            Environmental Regulation and Performance
refundable deposit of $500,000 has been received with
                                                                  The Group’s exploration activities, both in Australia and
settlement due within 90 days of the signing date subject to
                                                                  overseas, are subject to environmental regulations and
the purchaser completing due diligence to its satisfaction, all
                                                                  guidelines operating in the licence areas. Failure to meet
parties gaining necessary regulatory approval including that
                                                                  environmental conditions attaching to the group’s mineral
of the Foreign Investment Review Board and all necessary
                                                                  tenements could lead to forfeiture of the tenements.
consents to transfer the assets.
                                                                  No environmental breaches have occurred or have been
At a General Meeting of members held on 26 August 2011,           notified by any government agencies during the year ended
it was resolved that Uranex NL change its legal status from       30 June 2011.
a Company of No Liability to a Company Limited by shares,
change the Company’s name to Uranex Limited and adopt a
new Constitution. The change of name becomes effective
when gazetted by the Australian Securities and Investment
Commission, which is expected to occur in October 2011.




                                                                                                                                19
DIRECTORS’ REPORT CONTINUED




Shares Under Option or issued on Exercise of Options
Details of unissued shares or interests under option as at 30 September 2011 are:

                            Number of Ordinary                               Exercise Price of Option
Issuing Entity              Shares under Option           Class of Shares                $                Expiry date of Option
Uranex NL                         2,650,000                    Ordinary                 0.20              19 November 2015
Uranex NL                           650,000                    Ordinary                 0.25              19 November 2015
Uranex NL                           700,000                    Ordinary                 0.31              19 November 2015
Uranex NL                           525,000                    Ordinary                 0.501             28 March 2014
Uranex NL                           625,000                    Ordinary                 0.601             28 March 2014
Uranex NL                         3,000,000                    Ordinary                 0.63              26 August 2014
Uranex NL                         3,000,000                    Ordinary                 0.84              26 August 2014
Uranex NL                           100,000                    Ordinary                 0.45              10 May 2014
Uranex NL                           150,000                    Ordinary                 0.54              10 May 2014
Uranex NL                           250,000                    Ordinary                 0.57              11 July 2014
Uranex NL                           250,000                    Ordinary                 0.61              11 July 2014

The holders of these options do not have the right, by virtue of the option, to participate in any share issue or interest issue of
the Company or of any other body corporate or registered scheme.
Details of shares or interests issued during or since the end of the financial year as a result of exercise of an option are:

                              Number of Shares                 Class of      Amount Paid for Shares          Amount unpaid
Issuing Entity                    issued                       Shares                 $                        on Shares
Uranex NL                          1,950,000                   Ordinary               0.28375                        NIL
Uranex NL                          2,450,000                   Ordinary               0.32375                        NIL




Directors’ Benefits                                                 except the usual professional fees for their services paid by
                                                                    the Company to:
During or since the financial year, no Director of the
Company has received or become entitled to receive a                (a) ResourcesLaw International, a law firm in which
benefit, other than a benefit included in the aggregate                 R G Udovenya is a partner,
amount of emoluments received or due and receivable                 (b) Dalenier Enterprises Pty Ltd, being a company in which
by the Directors shown in the consolidated accounts, by                 A E Daley is beneficially interested,
reason of a contract entered into by the Company or an              (c) Frank Poullas for consulting services, and
entity that the Company controlled or a body corporate that
                                                                    (d) Uranium Associates Pty Ltd, being a company in which
was related to the Company when the contract was made or
                                                                        M S Chalmers is beneficially interested.
when the Director received, or became entitled to receive,
the benefit with:                                                   Full details are provided in Note 17 – Key Management
•	 a	Director,	or                                                   Personnel.

•	 a	firm	of	which	a	Director	is	a	member,	or
   a
•	 	 n	entity	in	which	a	Director	has	substantial	financial	
   interest




20
                                                                                                      URANEX ANNUAL REPORT 2011




Indemnification and Insurance of Directors and Officers
During or since the financial year, the Company has paid premiums insuring all the Directors of Uranex NL against costs
incurred in defending proceedings for conduct involving:
   a
•	 	 ll	loss	for	which	the	Director	or	Officer	is	not	indemnified	by	the	Company;	or
   a
•	 	 	contravention	of	sections	182	or	183	of	the	Corporations	Act	2001,
   a
•	 	 s	permitted	by	section	199B	of	the	Corporations	Act	2001.
The total amount of insurance contract premiums paid is confidential under the terms of the insurance policy.

Directors Meetings
The number of Directors meetings held (including meetings of committees of Directors) and the number of meetings
attended by each of the Directors of the Company during the financial year are:

                                                        Directors’             Audit     Remuneration        Sustainability
                                                         Meeting             Committee    Committee           Committee
Number of meetings attended:                           A         B           A       B    A        B          A         B
J W Cottle                                              6             6      –      *     –       *           –           *
A E Daley                                               5             6      –      *     –       –           –           *
B Manzi                                                 3             5      –       –    –       –           –           –
R G Udovenya                                            5             6      –       –    –       –           –           *
N Cusworth                                              6             6      –      *     –       –           –           –
J C Jooste-Jacobs                                     16            16       2       2    –       –           –           *
M G Gauci                                             16            16       –      *     –       *           2           2
M S Chalmers                                          14            15       2       2    –       –           2           2
S B Hunt                                              15            16       –      *     2       2           –           *
F Poullas                                             15            15       2       2    2       2           –           *
A Number of meetings attended.
B Number of meetings held during the year whilst the director held office.
* Not a member of the relevant committee.

The Audit Committee comprised of F Poullas (Chairman appointed 17 September 2010), J C Jooste-Jacobs, M S Chalmers
(both appointed 17 September 2010), R G Udovenya (Chairman resigned 28 August 2010), B Manzi (resigned 24 August
2010).
The Remuneration Committee comprised of S B Hunt (Chairman) and F Poullas (both appointed 17 September 2010),
A E Daley (Chairman resigned 27 August 2010), N Cusworth (resigned 27 August 2010), B Manzi (resigned 24 August 2010)
and R G Udovenya (resigned 28 August 2010).
The Sustainability Committee comprised of M S Chalmers (Chairman), M G Gauci (both appointed 17 September 2010),
S I Lawley (Sustainability Manager appointed 23 February 2011), B Manzi (resigned 24 August 2010) and N Cusworth
(resigned 27 August 2010).




                                                                                                                              21
DIRECTORS’ REPORT CONTINUED




Auditor Independence
The	Directors	received	the	following	auditor’s	independence	declaration	as	required	under	section	307C	
of the Corporations Act 2001.




Non-audit Services
Ernst & Young received or are due to receive the following amounts for the provision of non-audit services:
•	 Taxation	compliance	services	$24,717.
In the opinion of the Directors of the Company, the provision of non-audit services is compatible with the general standard of
independence for auditors imposed by the Corporations Act 2011.
The nature and scope of each type of non-audit service provided means auditor independence was not compromised.


22
                                                                                                      URANEX ANNUAL REPORT 2011




Remuneration Report (Audited)


This report outlines the remuneration arrangements in place      Director and Senior Management details
for Directors and executives.
                                                                 The persons who acted as a director of the Company during
Remuneration policy                                              or since the end of the financial year are listed on pages 4 to
                                                                 6 of this report.
The Board recognises that the performance of the Group
depends	upon	the	quality	of	its	Directors	and	executives.	       For the purposes of this report, Key Management Personnel
To achieve its operating and financial activities the Group      of the Group are defined as those persons having authority
must attract, motivate and retain highly skilled Directors       and responsibility for planning directing and controlling the
and executives.                                                  major activities of the Company and the Group, directly or
                                                                 indirectly, including any director (whether executive or
The Group’s policy for determining the nature and amount         otherwise) of the Company, and senior or key management.
of emoluments of Board members and executives of the
Company is assessed annually at the end of each calendar         The term ‘senior or key management’ is used in this
year and are set by reference to the mineral exploration         remuneration report to refer to the undermentioned persons.
industry market place and are directly linked to the Group’s     Except as noted, these named persons held their current
performance. The Remuneration Committee submits its              position for the whole of the financial year and since the end
recommendation to the Board for its consideration.               of the financial year.
                                                                    B
                                                                 •	 	 	J	Borg	(Manager	Exploration)
All Directors receive a superannuation contribution which is
currently 9% and do not receive any other retirement                S
                                                                 •	 	 	I	Lawley	(Manager	Sustainability)
benefits.                                                           A
                                                                 •	 	 	Querzoli	(Manager	Development,	resigned	15	April	2011)

All remuneration paid to Directors and executives is valued at      J
                                                                 •	 	 	M	Nethersole	(Chief	Financial	Officer	and	Company	
the cost to the Group and expensed.                                 Secretary)

The Board policy is to remunerate Non-Executive Directors at     Performance based remuneration
market rates for comparable companies for time,
                                                                 The Group currently has a performance based remuneration
commitment and responsibilities based on recommendations
                                                                 component built into the Managing Director’s remuneration
from the Remuneration Committee. The Board determines
                                                                 package. Bonuses may be payable at the Board’s discretion
payments to the Non-Executive Directors and reviews their
                                                                 following the annual performance review.
remuneration annually, based on market practice, duties and
accountability. McDonald & Partners (Australia) Pty Ltd,         The Company does not have policies regarding risk
human resource consultant, was appointed in June 2011 to         management of flexible components of remuneration
provide independent external advice in respect to                packages.
remuneration of directors and management. Any increase in
the maximum aggregate amount of fees that can be paid to         Company performance, shareholder wealth and
Non-Executive Directors is subject to approval by                Directors’ and executives’ remuneration
shareholders at the annual general meeting. Fees for
                                                                 In accordance with the remuneration policy noted above, the
Non-Executive Directors are not linked to the performance of
                                                                 Group includes the following principles in its remuneration
the group. To align Directors’ interests with shareholder
                                                                 framework:
interests, the Directors are encouraged to hold shares in the
Company.                                                            C
                                                                 •	 	 ompetitive	rewards	are	set	to	attract	high	calibre	
                                                                    executives;
The current maximum aggregate amount payable to
                                                                 •	 Executive	rewards	are	linked	to	shareholder	value;
directors is $400,000 which was approved by members on
14 November 2008. Presently, Non-Executive Directors                A
                                                                 •	 	 	significant	portion	of	executive	remuneration	is	
receive annual fees of $50,000 and the Non-Executive                dependent upon meeting pre-determined performance
Chairman $100,000. An additional $5,000 per annum is paid           benchmarks; and
to Directors who act as Chairman of Committees.                     A
                                                                 •	 	 ppropriate	performance	hurdles	are	established	in	
                                                                    relation to variable executive remuneration.



                                                                                                                              23
DIRECTORS’ REPORT CONTINUED




For executives the Group’s policy is to position total            The management’s exploration focus was changed from
employment costs within a peer group determined by the            central to southern Tanzania following a strategic review of
remuneration consultants. The mix of fixed and variable           our mineral assets. A drilling program at Mkuju has produced
components of employment costs is derived from data               highly encouraging results. Key managers have directed
assessing market rate labour costs by position.                   effectively the current exploration program.
There are no financial measures that are included in the          The options issued to Directors and Employees were not
assessment but the Remuneration Committee considers the           tailored to performance targets because exploration
growth in market capitalisation an important parameter. For       company’s inherent assets are highly variable in value and
non-financial measures a range of factors are considered;         are, in effect, unknown until exploration has been completed.
market position, relationship with a range of stakeholders,       As asset values are the key in corporate growth, it is not
risk management, leadership and team contribution.                feasible in these circumstances to set up a fair performance
                                                                  measure.
Employee Share Option Plan
                                                                  No performance based bonuses have been paid to either the
Uranex NL operates an ownership-based scheme for                  Managing Director or executives during the financial year.
Directors and Employees of the consolidated entity. In
accordance with the provisions of the plan the trustee of the     Service agreements
Uranex	Option	Share	Trust	(UOST)	acquire	options	for	             The agreements relating to remuneration are set out below:
employees from the Company. The UOST then allots its
                                                                  Matthew Gauci – Managing Director (appointed
certificate, on the same terms as the option, to the
                                                                  27 August 2010)
employee.
                                                                     T
                                                                  •	 	 erm	of	agreement	expires	on	3	October,	2012;
During	the	financial	year	the	UOST	acquired	and	was	issued	
                                                                     R
                                                                  •	 	 emuneration	is	$260,000	per	annum	including	statutory	
with 5,150,000 options on varying terms and conditions for
                                                                     superannuation guarantee of 9% plus 2,000,000 options at
allotment to Directors and Employees (refer to Remuneration
                                                                     nil cost;
Report for details). With respect to the Directors, 4,000,000
options were issued on 29 June 2011 on the same terms                T
                                                                  •	 	 he	agreement	and	the	employment	created	by	it	may	be	
and conditions approved by members at the General                    terminated by either Uranex NL or Mr Gauci by that party
Meeting held on 19 November 2010, following the                      giving the other 3 months notice;
cancellation of the original options. The Directors had              T
                                                                  •	 	 he	agreement	is	subject	to	annual	review.
expected the UOST to be operational at the time of the
                                                                  John Nethersole – Company Secretary (appointed
original issue and believe that it is the proper structure from
                                                                  28 May 2008)
which to hold performance-based options granted by the
Company.                                                             T
                                                                  •	 	 erm	of	agreement	2	years	from	date	of	employment,	
                                                                     extended by mutual agreement;
The Company share price on the date of issue was $0.37
                                                                     R
                                                                  •	 	 emuneration	is	$160,000	per	annum	plus	statutory	
and the fair value of the options did not change for reporting
                                                                     superannuation guarantee of 9%;
purposes.
                                                                     T
                                                                  •	 	 he	agreement	and	the	employment	created	by	it	may	be	
Performance Income as a proportion of total                          terminated by either Uranex NL or Mr Nethersole by that
compensation                                                         party giving the other 3 months notice.

The Company performance as measured by the share price            Brendan Borg – Manager Exploration (appointed
from the date the Board was reconstituted and the                 14 September 2009)
succession of Matthew Gauci as Managing Director (both               R
                                                                  •	 	 emuneration	is	$170,000	per	annum	plus	statutory	
effective on 27 August 2010) to the end of the financial year        superannuation guarantee of 9%;
was $0.16 and $0.38 respectively (137   .5% increase). In            T
                                                                  •	 	 he	agreement	and	the	employment	created	by	it	may	be	
addition, the new Board recapitalised the Company,                   terminated by either Uranex NL or Mr Borg by that party
amounting to $10.4 million, changed strategic focus                  giving the other 1 month notice.
culminating in the sale of Australian assets for $20 million
                                                                  Sarah Lawley – Manager Sustainability (appointed
(the purchase and sale agreement, subject to warranties, is
                                                                  8 February 2010)
expected to be settled by 22 November 2011).
                                                                     R
                                                                  •	 	 emuneration	is	$170,000	per	annum	plus	statutory	
                                                                     superannuation guarantee of 9%;
                                                                     T
                                                                  •	 	 he	agreement	and	the	employment	created	by	it	may	be	
                                                                     terminated by either Uranex NL or Ms Lawley by that party
                                                                     giving the other 1 month notice.



24
                                                                                                                              URANEX ANNUAL REPORT 2011




Table 1: Remuneration for the year ended 30 June 2011

                                                                                                Post                 Share Based
                                                      Short Term                             Employment               Payments
                                         Salary &      Termination              Non
                                            Fees          Benefits          Monetary        Superannuation                  Options              Total
                                                $                $                 #                     $                        $                 $
 Directors
 A E Daley*                              17,180                     –             222                          –                  –            17,402
 B Manzi                                  7,949                     –              112                    715                     –            8,776
 N Cusworth                               7,812                     –              110                    703                     –            8,625
 R G Udovenya*                            9,347                     –              121                         –                  –            9,468
 J C Jooste-Jacobs*                     92,202                      –           1,193                          –           62,000            155,395
 S B Hunt*                              49,536                      –             641                          –           62,000            112,177
 M S Chalmers*                          43,460                      –             562                          –           62,000            106,022
 F Poullas                              44,583                      –             629                   4,013              62,000            111,225
 Executive Directors
 J W Cottle                              67,163             115,850             1,081                 16,357                      –          200,451
 M G Gauci                            200,584                       –           2,829                 18,052               240,450           461,915
 Other key management personnel
 J M Nethersole                       160,000                       –           2,256                 14,400                48,165           224,821
 Other senior managers
 A	Querzoli                           166,944                       –           2,354                 15,000                39,895           224,193
 B J Borg                             170,000                       –           2,397                 15,300                39,895           227,592
 S I Lawley                           170,000                       –           2,397                 15,300                32,110           219,807
                                    1,206,760               115,850           16,904                  99,840               648,515         2,087,869

# Non monetary benefits consist of Directors and Officers liability insurance premium cost paid by the company.
*Part of fees were paid to related entities. Refer to Note 17 – Key Management Personnel disclosure for further details.
**Includes superannuation paid in lieu of fees.




                                                                                                                                                    25
DIRECTORS’ REPORT CONTINUED




Table 2: Remuneration for the year ended 30 June 2010

                                                                                                Post                 Share Based
                                                                Short Term                   Employment               Payments
                                                          Salary &             Non
                                                             Fees          Monetary         Superannuation                   Options       Total
                                                                 $                #                      $                         $          $
 Directors
 A E Daley*                                                  77,009             1,365                          –                   –      78,374
 B Manzi                                                    48,150                 930                   4,333                     –      53,413
 N Cusworth                                                 15,694                 303                   1,413                     –      17,410
 R G Udovenya**                                             50,625                 930                   1,859                     –      53,414
 T A Ward*                                                  31,587                 575                     840                     –      33,002
 Executive Directors
 J W Cottle                                               252,294               4,875                  22,706                      –    279,875
 Other key management personnel
 J M Nethersole                                           160,000               3,092                  14,400                      –     177,492
 Other senior managers
 A	Querzoli                                                 46,932                 907                   4,224                     –      52,063
 B J Borg                                                  120,261              2,324                  10,823                      –     133,408
 S I Lawley                                                  67,292             1,300                    6,056                     –      74,648
                                                          869,844              16,601                  66,654                      –    953,099

# Non monetary benefits consist of Directors and Officers liability insurance premium cost paid by the company.
*Part of fees were paid to related entities. Refer to Note 17 – Key Management Personnel disclosure for further details.
**Includes superannuation paid in lieu of fees.

No director or senior management person appointed during the period received a payment as part of his or her consideration
for agreeing to hold the position.

Compensation options granted and vested
During the financial year, the following share-based payments were in existence:

                                                                                                 Grant Date
                              Grant Date and                                                      Fair Value                           Exercise
Option Series                 Vesting Date                    Expiry Date                                  $               Number         Price

(1) Issued November 14 November 2008                          21 June 2014                              0.077*             1,950,000       0.30
2008                                                          3 December 2013                                              2,450,000       0.34
                                                              23 March 2038
                                                              25 November 2026

(2) Issued November 19 November 2010                          19 November 2015                            0.124            2,650,000       0.20
2010                                                                                                      0.121              650,000       0.25
                                                                                                          0.116              700,000       0.31

(3) Issued June 2011          28 March 2011                   28 March 2014                             0.1654              525,000      0.5011
                                                                                                        0.1557              625,000      0.6013

* Weighted average of fair value

There are no further service or performance criteria that need to be met in relation to the options granted under series
(1) – (3) before the beneficial interest vests with the recipient.
All option series may be exercised anytime from the date of grant to the expiry date whilst the holder remains employed by
the Company.


26
                                                                                                      URANEX ANNUAL REPORT 2011




The following grants of share-based payment compensation to directors and senior management relate to the current
financial year. There were no service or performance criteria altering these grants:

                                                                         During the Financial Year                         % of
                                                                                                                 compensation
                                                                                            % of         % of      for the year
                                                                   No.           No.       Grant        Grant       consisting
 Name                  Option Series      Grant Date           Granted        Vested      vested     forfeited       of options
 M G Gauci       (2)   Issued             19 November        2,000,000 2,000,000            100          N/A              52.1
                       November 2010      2010
 J C Jooste-     (2)   Issued             19 November          500,000      500,000         100          N/A              39.9
 Jacobs                November 2010      2010
 M S Chalmers (2)      Issued             19 November          500,000      500,000         100          N/A              58.5
                       November 2010      2010
 S B Hunt        (2)   Issued             19 November          500,000      500,000         100          N/A              55.3
                       November 2010      2010
 F Poullas       (2)   Issued             19 November          500,000      500,000         100          N/A              55.7
                       November 2010      2010
 B J Borg        (3)   Issued             28 March 2011        250,000      250,000         100          N/A               17.5
                       June 2011
 S I Lawley      (3)   Issued             28 March 2011        200,000      200,000         100          N/A               14.6
                       June 2011
 A	Querzoli      (3)   Issued             28 March 2011        250,000      250,000         100          N/A               17.8
                       June 2011
 JM              (3)   Issued             28 March 2011        300,000      300,000         100          N/A               21.4
 Nethersole            June 2011

During the year, the following directors and senior management exercised options that were granted to them as part of their
compensation. Each option converts into one ordinary share of Uranex NL.

                               No. of options             No. of ordinary              Amount paid           Amount unpaid
Name                               exercised               shares issued                         $                       $
A E Daley                               800,000                  800,000                   245,000                          –
J W Cottle                             2,000,000               2,000,000                   612,500                          –
B Manzi                                 800,000                  800,000                   245,000                          –
R G Udovenya                            800,000                  800,000                   245,000                          –




                                                                                                                                27
DIRECTORS’ REPORT CONTINUED




The following table summarises the value of options granted, exercised or lapsed during the financial year to directors or
senior management.

                                                     Value of options              Value of options exercised                     Value of options lapsed
                                               granted at grant date (i)                  at the exercise date                      at the date of lapse (ii)
Name                                                                 $                                       $                                            $
J C Jooste-Jacobs                                                     62,000                                           –                                         –
M G Gauci                                                           240,450                                            –                                         –
M S Chalmers                                                          62,000                                           –                                         –
S B Hunt                                                              62,000                                           –                                         –
F Poullas                                                             62,000                                           –                                         –
B J Borg                                                              39,895                                           –                                         –
S I Lawley                                                            32,110                                           –                                         –
A	Querzoli                                                            39,895                                           –                                         –
J M Nethersole                                                        48,165                                           –                                         –
A E Daley                                                                      -                              600,000                                             -
J W Cottle                                                                     -                           1,080,000                                              -
B Manzi                                                                        -                              440,000                                             -
R G Udovenya                                                                   -                              519,500                                             -

(i) The value of options granted during the period is recognised in compensation over the vesting period of the grant, in accordance with Australian Accounting
     Standards.
(ii) The value of options lapsing during the period due to the failure to satisfy a vesting condition is determined assuming the vesting condition has been satisfied.


Competent Persons Statement
Information in this report relating to exploration results is based on data compiled by Mr. Brendan Borg who is a Member of
the Australasian Institute of Mining and Metallurgy, and who is a full-time employee of the Company. Mr. Borg has sufficient
relevant	experience	to	qualify	as	a	Competent	Person	as	defined	by	the	2004	Edition	of	the	Australasian	Code	for	reporting	of	
Exploration Results, Mineral Resources and Ore Reserves. Mr. Borg consents to the inclusion of the data in the form and
context in which it appears.
Down-hole uranium results reported from the 2011 programme are calculated from Spectral Gamma probing conducted by
Terratec Geophysical Services of Germany (“Terratec”). All probes were calibrated at the Pelindaba Calibration facility in
South Africa, with calibration certificates supplied by Terratec. Corrections to raw data, for bore diameter, PVC casing and
water in bores, have been applied by Terratec. All eU3O8 values reported may be affected by issues such as possible
disequilibrium,	radon	gas	and	uranium	mobility,	which	should	be	taken	into	account	when	interpreting	the	results.	The	
Company has provided Terratec with certified laboratory assay results from the 2010 diamond drilling program, which will be
used	to	assist	in	calculating	a	disequilibrium	factor	for	the	deposit	as	a	whole.	Initial	comparisons	indicate	that	the	radiometric	
eU3O8	grade	values	are	equivalent	to	the	certified	assay	results.
Signed in accordance with a resolution of the Directors.




M G Gauci
Managing Director
Melbourne, 30 September 2011




28
                                                                                                    URANEX ANNUAL REPORT 2011




Corporate Governance Statement


The Company’s Board of Directors (‘Board’) is responsible      Composition of the Board
for the overall corporate governance of the Company and it
                                                               Election of Board Members is substantially at the behest of
recognises the need for the highest standards of ethical
                                                               the shareholders in general meetings. However, subject
behaviour and accountability. The Board is committed to
                                                               thereto, the Company commits to the following principles:
administering its corporate governance structures to
promote integrity and responsible decision-making. To the      that the Board should comprise directors with a blend of
extent that they are relevant to the organisation, the         skills, experience and attributes appropriate for the Company
Company has, subject to the exceptions set out below,          and its business;
had regard to the eight ASX Corporate Governance Council
                                                               that the principal criterion for the appointment of new
’Corporate Governance Principles and Recommendations‘
                                                               directors should be their ability to add value to the Company
(2nd Edition) (‘ASX Principles’).
                                                               and its business.
The Board of Directors                                         The Company does not have a formal Nomination
                                                               Committee as recommended by ASX Principle 2.4.
The Board is responsible for the corporate governance of the
                                                               However, the whole Board will meet to consider additional
Company. The Board has developed strategies for the
                                                               appointments.
Company, review strategic objectives, and monitor the
performance against those objectives. The overall goals of     The Board now consists of one Executive Director and four
the corporate governance process are to:                       Non-Executive Directors. A majority of the Board is
•	 	 rive	shareholder	value;
   d                                                           comprised of non independent Directors thereby not
                                                               complying with Principle 2.1. The consents in writing of each
   a
•	 	 ssure	a	prudential	and	ethical	base	to	the	Company’s	
                                                               director are on file and all Directors have made all necessary
   conduct and activities; and
                                                               disclosures relating to potential conflicts of interest. Details
   e
•	 	 nsure	compliance	with	the	Company’s	legal	and	            of each Director are set out in the Directors’ Report.
   regulatory obligations.
                                                               The Non-Executive Chairman, J C Jacobs, is not
Consistent with these goals, the Board commits to the          independent thus not complying with principle 2.2. However,
following responsibilities:                                    the present Board, who elected the current chair, believe he
   t
•	 	 o	review	the	corporate,	commercial	and	financial	         has the necessary skills and competence for the role. Board
   performance of the Company on a regular basis;              procedures and the Chair’s respect for independence when
•	 	 o	act	on	behalf	of,	and	be	accountable	to,	the	
   t                                                           matters arise have mitigated such concerns.
   shareholders;                                               Subject to the Chairman’s prior approval (not to be
   t
•	 	 o	identify	business	risks	and	implement	actions	to	       unreasonably withheld) Directors, at the Company’s
   manage those risks; and                                     expense, may obtain professional advice on issues arising in
•	 	 evelop	and	implement	management	and	corporate	
   d                                                           the course of their duties.
   systems	to	assure	quality.
The Company is committed to the circulation of relevant
materials to Directors in a timely manner to facilitate
Directors’ participation in Board discussions on a fully
informed basis.
The role and functions of the Board as set out above is
consistent with ASX Principle 1.




                                                                                                                             29
CORPORATE GOVERNANCE STATEMENT CONTINUED




Remuneration Policies                                          Audit Committee
The Board appointed a separately constituted Remuneration      The Company has a separately constituted Audit Committee.
Committee comprising of three Non-Executive Directors,         The members of the Audit Committee during the year were:
consistent with ASX Principle 8. The members of the            R G Udovenya (Chairman, resigned 28 August 2010),
Remuneration Committee throughout the year were:               B Manzi (resigned 24 August 2010), F Poullas (Chairman,
A E Daley (Chairman resigned 27 August 2010),                  appointed 17 September 2010), J C Jacobs (appointed
R G Udovenya (resigned 28 August 2010), B Manzi                17 September 2010) and M S Chalmers (appointed
(resigned 24 August 2010), N Cusworth (resigned 27 August      17 September 2010).
2010), S B Hunt (Chairman appointed 17 September 2010),
                                                               The main responsibilities of the Audit Committee are to:
J C Jacobs (appointed 17 September 2010) and F Poullas
(appointed 17 September 2010).                                    r
                                                               •	 	 eview	and	report	to	the	Board	on	the	periodic	reports	and	
                                                                  financial statements;
The Remuneration Committee advises the Board on
                                                                  p
                                                               •	 	 rovide	assurance	to	the	Board	that	it	is	receiving	
remuneration and incentive policies and practices. It makes
                                                                  adequate,	timely	and	reliable	information;
specific recommendations on remuneration packages and
other terms of employment for Executive Directors, other          a
                                                               •	 	 ssist	the	Board	in	reviewing	effectiveness	of	the	group’s	
senior executives and Non-Executive directors.                    internal control environment covering:
                                                                  – compliance with applicable laws and regulations
Any increase in the maximum remuneration of Non-                  – reliability of financial reporting; and
Executive Directors is the subject of shareholder resolution      – liaise with the external auditors and ensure that the
in accordance with the Company’s constitution, the                   annual audit and half-year review are conducted in an
Corporations Act and the ASX Listing Rules, as applicable.           efficient manner.
The apportionment of Non-Executive Director remuneration
within that maximum will be made by the Board having           The Audit Committee reviews the performance of the
regard to the inputs and value to the Company of the           external auditors on an annual basis. A representative of the
respective contributions by each Non-Executive Director.       committee meets with them during the year to discuss the
                                                               external audit plan, any significant problems that may arise,
The Board may award additional remuneration to Non-            and to review the fees proposed for the audit work to be
Executive Directors called upon to perform extra services      performed.
or undertake special duties on behalf of the Company.
                                                               Any written matters raised by the auditors are discussed and
External Audit                                                 dealt	with	at	full	board	meetings.	The	auditors,	by	request,	
                                                               may attend audit committee meetings and board meetings
The Company in general meeting is responsible for the          to discuss any matter that they believe warrants attention by
appointment of the external auditors of the Company. The       the Board. The auditors also attend shareholder meetings of
Board from time to time will review the scope, performance     the group.
and fees of the external auditors. Consistent with ASX
Principle 6, the auditors are invited to attend and answer     The Audit Committee structure was consistent with ASX
questions	at	the	Company’s	Annual	General	Meeting.             Principle 4 during the financial year.

                                                               Sustainability Committee
                                                               The Sustainability Committee was constituted during the
                                                               year and its members comprised B Manzi (Chair, resigned
                                                               24 August 2010), N Cusworth (resigned 27 August 2010),
                                                               M S Chalmers (Chairman, appointed 17 September 2010),
                                                               M G Gauci (appointed 17 September 2010) and S I Lawley
                                                               (Sustainability Manager, appointed 22 February 2011).
                                                               The main responsibility of the Sustainability Committee is to
                                                               be satisfied that effective measures, systems and controls
                                                               are in place in relation to:
                                                                  E
                                                               •	 	 nvironmental,	community,	occupational	health	and	safety,	
                                                                  radiation protection and other sustainability issues that
                                                                  have material strategic and business implications.
                                                                  S
                                                               •	 	 ignificant	safety,	health	and	environmental	incidents;	and
                                                                  R
                                                               •	 	 eporting	by	Uranex	should	accord	with	the	Global	
                                                                  Reporting Initiative guidelines.


30
                                                                                                      URANEX ANNUAL REPORT 2011




Continuous Disclosure Policy                                     Ethical Standards and Code of Conduct
The Company has a continuous disclosure policy dealing           The Board is committed to the establishment of a code of
with the timely disclosure of price sensitive information        conduct and maintenance of appropriate ethical standards to
including announcements to the ASX, conduct of investor          underpin the Company’s operations and corporate practices.
and analyst briefings and media communications.
                                                                 The Board’s code of conduct is consistent with ASX
The Company’s continuous disclosure policy is consistent         Principles 3 and 7.
with ASX Principle 5.
                                                                 Shareholder Communication
Identification and Management of Risk                            The Board aims to ensure that the shareholders are
The Director’s collective experience will enable accurate        informed of all major developments affecting the group’s
identification of the principal risks which may affect the       state of affairs. Information is communicated to shareholders
Company’s business. Management of these risks will be            as follows:
discussed by the Board at periodic (at least annual) strategic      t
                                                                 •	 	 he	internet	web	site:	www.uranex.com.au
planning meetings. In addition, key operational risks and           t
                                                                 •	 	 he	Annual	Report	is	distributed	to	eligible	shareholders.	
their management, will be recurring items for deliberation          The Board ensures that the Annual Report includes
at board meetings.                                                  relevant information about the operations of the group
Determined areas of risk that are regularly considered at           during the year, changes in the state of affairs of the group
board meetings or reported on monthly include:                      and details of future developments, in addition to other
                                                                    disclosures	required	by	Corporations	Act	2001;
   p
•	 	 erformance	and	funding	of	exploration	activities;
                                                                    q
                                                                 •	 	 uarterly	reports	and	half-yearly	financial	statements	are	
   b
•	 	 udget	control	and	asset	protection;
                                                                    lodged with the ASX and copies are sent to any
   s
•	 	 tatus	of	mineral	tenements;                                    shareholder	upon	request;
   s
•	 	 overeign	risk	and	native	title	considerations;	and             a
                                                                 •	 	 ny	proposed	major	changes	in	the	group	which	may	
   c
•	 	 ontinuous	disclosure	obligations.                              impact on the share ownership rights would be submitted
                                                                    to a vote of shareholders; and
The Company’s practice is consistent with ASX Principle 7.
                                                                    t
                                                                 •	 	 he	Board	ensures	that	the	continuous	disclosure	
Chief Executive Officer and Chief Financial Officer                 requirements	of	the	ASX	are	fully	complied	with,	ensuring	
Certification                                                       that shareholders are kept informed on significant events
                                                                    affecting the group.
In accordance with section 295A of the Corporations Act,
the Chief Executive Officer and Chief Financial Officer have     The Board’s respect of the rights of shareholders is
provided a written statement to the Board that:                  consistent with ASX Principle 6.
   t
•	 	 heir	view	provided	on	the	Company’s	financial	report	is	
   founded on a sound system of risk management and
   internal control which implements the financial policies
   adopted by the Board
   T
•	 	 he	Company’s	risk	management	and	internal	compliance	
   and control system is operating effectively in all material
   respects
The Board agrees with the views of the ASX on this matter
and notes that due to its nature, internal compliance and
control assurance from the Chief Executive Officer and Chief
Financial Officer can only be reasonable rather than absolute.
This is due to such factors as the need for judgement, the
use of testing on a sample basis, the inherent limitations in
internal control and because much of the evidence available
is persuasive rather than conclusive and therefore is not and
cannot be designed to detect all weaknesses in control
procedures.




                                                                                                                                   31
CORPORATE GOVERNANCE STATEMENT CONTINUED




Continuous Review of Corporate Governance
Directors consider, on an ongoing basis, how management information is presented to them and whether such information
is sufficient to enable them to discharge their duties as directors of the Company. Such information must be sufficient from
time to time in light of changing circumstances and economic conditions. The Directors recognise that mineral exploration is
an inherently risky business and that operational strategies adopted should, notwithstanding, be directed towards improving
or maintaining the net worth of the Company.
The table below summarises the Company’s compliance with ASX Corporate Governance Council published guidelines and
recommendations.

 ASX Principle                                                          Status         Reference/comment
 Principle 1:   Lay solid foundations for management and oversight
 1.1            Companies should establish the functions reserved to    Complies       Corporate governance disclosed
                the Board and those delegated to senior executives                     on page 29.
                and disclose those functions
 1.2            Companies should disclose the process for evaluating    Complies       Disclosed in notes to Annual Report
                the performance of senior executives                                   and page 23.
 1.3            Companies should provide the information indicated in   Complies       Disclosed in notes to Annual Report.
                the Guide to reporting on Principle 1                                  No performance evaluation for senior
                                                                                       executives has taken place in the
                                                                                       reporting period.
 Principle 2:   Structure the Board to add value
 2.1            A majority of the Board should be independent           Does not       Following the resignations of four
                directors                                               comply         directors, J C Jacobs and S B Hunt
                                                                                       were appointed Directors in their
                                                                                       stead. Both Directors are Non-
                                                                                       executive Directors of IMX
                                                                                       Resources Ltd, the Company’s
                                                                                       largest shareholder. Also, on the
                                                                                       same date, M G Gauci took up his
                                                                                       appointment of Managing Director.
                                                                                       Subsequent	to	these	appointments,	
                                                                                       two independent directors,
                                                                                       M S Chalmers and F Poullas
                                                                                       were appointed to the Board.
 2.2            The Chairman should be an independent director          Does not       The Chairman is not independent.
                                                                        comply
 2.3            The roles of Chairman and Chief Executive Officer       Complies       Annual report page 4.
                should not be exercised by the same individual
 2.4            The Board should establish a Nomination Committee       Does not       The Company does not have a formal
                                                                        comply         Nomination Committee. The Board
                                                                                       meets to consider any appointments.
 2.5            Companies should disclose the process for evaluating    Complies       Disclosed in notes to Annual Report.
                the performance of the Board, its committee and
                individual Directors
 2.6            Companies should provide the information indicated in   Complies       Disclosed in notes to Annual Report.
                the Guide to reporting on Principle 2




32
                                                                                                 URANEX ANNUAL REPORT 2011




ASX Principle                                                              Status     Reference/comment
Principle 3:   Promote ethical and responsible decision-making
3.1            Companies should establish a code of conduct and            Complies   Corporate governance page 31 and
               disclose the code or a summary of the code as to:                      as disclosed on the Company’s
               •	 	 he	practices	necessary	to	maintain	confidence	
                  t                                                                   website.
                  in the Company’s integrity
                  t
               •	 	 he	practices	necessary	to	take	into	account	their	
                  legal obligations and the reasonable expectations
                  of their stakeholders
                  t
               •	 	 he	responsibility	and	accountability	of	individuals	
                  for reporting and investigating reports of unethical
                  practices
3.2            Companies should establish a policy concerning trading Complies        Disclosed on the Company’s
               in Company securities by Directors, senior executives                  website.
               and employees, and disclose the policy or a summary
               of that policy
3.3            Companies should provide the information indicated in       Complies   Disclosed on the Company’s
               the Guide to reporting on Principle 3                                  website.
Principle 4:   Safeguard integrity in financial reporting
4.1            The Board should establish an Audit Committee               Complies   Corporate governance section
                                                                                      page 30.
4.2            The Audit Committee should be structured so that it:        Complies   The Audit Committee comprises
               consists only of Non-Executive Directors                               two Non-Executive Directors
               consist of a majority of independent Directors                         who are independent including
               is chaired by an independent chair, who is not chair of                the Chairman, and another
               the Board                                                              Non-Executive Director who
               has at least three members                                             is not independent.
4.3            The Audit Committee should have a formal charter            Complies   Disclosed on the Company’s
                                                                                      website.
4.4            Companies should provide the information indicated in       Complies   Disclosed on the Company’s
               the Guide to reporting on Principle 4                                  website.
Principle 5:   Make timely and balanced disclosure
5.1            Companies should establish written policies designed        Complies   Corporate governance section
               to ensure compliance with ASX Listing Rule disclosure                  page 31.
               requirements	and	to	ensure	accountability	at	a	senior	
               executive level for that compliance and disclose those
               policies or a summary of those policies
5.2            Companies should provide the information indicated in       Complies   Disclosed on the Company’s
               the Guide to reporting on Principle 5                                  website.
Principle 6:   Respect the rights of shareholders
6.1            Companies should design a communications policy for         Complies   Corporate governance section
               promoting effective communication with shareholders                    page 31.
               and encouraging their participation at general meetings
               and disclose their policy or a summary of that policy
6.2            Companies should provide the information indicated in       Complies   Corporate governance section
               the Guide to reporting on Principle 6                                  page 31.




                                                                                                                         33
CORPORATE GOVERNANCE STATEMENT CONTINUED




ASX Principle                                                             Status     Reference/comment
Principle 7:   Recognise and manage risk
7.1            Companies should establish policies for the oversight      Complies   Corporate governance section
               and management of material business risks and                         page 31.
               disclose a summary of those policies
7.2            The	Board	should	require	management	to	design	             Complies   Corporate governance page 31
               and implement the risk management and internal                        and as disclosed on the Company’s
               control system to manage the Company’s material                       website.
               business risks and report to it on whether those risks
               are being managed effectively. The Board should
               disclose that management has reported to it as to the
               effectiveness of the Company’s management of its
               material business risks
7.3            The Board should disclose whether it has received          Complies   Disclosed in Annual Report
               assurance from the Chief Executive Officer (or                        (Directors’ Declaration).
               equivalent)	and	the	Chief	Financial	Officer	(or	
               equivalent)	that	the	declaration	provided	in	accordance	
               with section 295A of the Corporations Act is founded
               on a sound system of risk management and internal
               control and that the system is operating effectively
               in all material respects in relation to financial
               reporting risks
7.4            Companies should provide the information indicated         Complies   Corporate governance section
               in the Guide to reporting on Principle 7                              page 31.
Principle 8:   Remunerate fairly and responsibly
8.1            The Board should establish a Remuneration                  Complies   Disclosed in notes to Annual Report
               Committee                                                             and corporate governance section
                                                                                     page 30.
8.2            Companies should clearly distinguish the structure         Complies   Disclosed in notes to Annual Report
               of Non-Executive Directors remuneration from that                     on pages 23–24.
               of Executive Directors and senior executives
8.3            Companies should provide the information indicated         Complies   Disclosed in notes to Annual Report
               in the Guide to reporting on Principle 8                              on page 22.




34
                                                                                                                    URANEX ANNUAL REPORT 2011




Statement of Comprehensive Income
Year ended 30 June 2011




                                                                                                                            Consolidated
                                                                                                         Consolidated          Restated
                                                                                                                 2011               2010
                                                                                          Notes                     $                  $
Revenue
Interest received                                                                                             211,171             192,667
Rent received                                                                                                 174,983              52,654
Total revenue                                                                                                 386,154             245,321
Net foreign exchange gains                                                                                     95,234              79,193
Grant received                                                                                                404,156                    –
Other income                                                                                                    2,500                  50
Total revenue and other income                                                                                888,044             324,564


Expenditure
Depreciation                                                                                                  247,709             238,866
Directors fees                                                                                                272,069             223,065
Employee share remuneration                                                                                   672,598                    –
Exploration expenditure                                                                                     7,954,729            7,362,377
Interest paid                                                                                                     219                 696
Legal expenses                                                                                                234,158              92,325
Promotion expenses                                                                                             19,052              80,688
Provision for restructure costs                                                                                      –             15,986
Rental expenses                                                                                               107,226              117,450
Salaries and wages                                                                                            466,448             529,204
Staff procurement                                                                                              25,900             108,203
Superannuation                                                                                                172,026             168,840
Taxes and duties                                                                                              389,553             447,718
Travel costs                                                                                                  311,167             138,910
Other expenses                                                                                              1,118,621           1,030,821
Total expenditure                                                                                          11,991,475          10,555,149
Loss before income tax expense                                                                             (11,103,431)       (10,230,585)
Income tax benefit/(expense)                                                                    2                    –                   –
Net loss for the year                                                                                      (11,103,431)       (10,230,585)


Other comprehensive income/(loss)
Foreign currency translation                                                                                2,943,907             709,400
Other comprehensive income/(loss) for the year net of tax                                                            –                   –
Total comprehensive income/(loss) for the year                                                             (8,159,524)         (9,521,185)


Basic loss per share (cents per share)                                                         16                 7.41               9.97
Diluted loss per share (cents per share)                                                       16                 7.41               9.97

The above Statement of Comprehensive Income should be read in conjunction with the accompanying notes.


                                                                                                                                             35
FINANCIAL STATEMENTS CONTINUED




Statement of Financial Position
As at 30 June 2011




                                                                                                       Consolidated    Consolidated
                                                                                  Consolidated             Restated        Restated
                                                                                   30 Jun 2011          30 Jun 2010      1 Jul 2009
                                                                Notes                        $                    $               $
Current assets
Cash	and	cash	equivalents                                         10(b)                3,399,791          1,972,894       8,525,909
Trade and other receivables                                         4(a)                 925,762            444,912         171,424
Total current assets                                                                   4,325,553          2,417,806       8,697,333


Non current assets
Other receivables                                                   4(b)                 244,609            227,247         201,451
Property,	plant	&	equipment                                            5                 501,466            795,850         951,727
Total non current assets                                                                 746,075          1,023,097       1,153,178
Total assets                                                                           5,071,628          3,440,903       9,850,511


Current liabilities
Trade and other payables                                            6(a)               2,031,489          1,396,003       1,319,546
Provisions                                                             7                   92,415           192,600         149,297
Total current liabilities                                                              2,123,904          1,588,603       1,468,843


Non current liabilities
Other payables                                                      6(b)                   55,936            39,463          29,104
Provisions                                                             7                   76,135           125,954          68,100
Total non current liabilities                                                            132,071            165,417          97,204
Total liabilities                                                                      2,255,975          1,754,020       1,566,047


Net assets                                                                             2,815,653          1,686,883       8,284,464


Equity
Contributed	equity                                                  8(a)             40,519,940          31,564,544      28,541,940
Reserves                                                               9               4,498,883          1,222,078         611,678
Accumulated profits/(losses)                                                         (42,203,170)       (31,099,739)    (20,869,154)
Total equity                                                                           2,815,653          1,686,883       8,284,464

The above Statement of Financial Position should be read in conjunction with the accompanying notes.




36
                                                                                                                  URANEX ANNUAL REPORT 2011




Statement of Changes in Equity
Year ended 30 June 2011




                                                                                               Foreign
                                                                    Share Based               Currency
                                                     Issued            Payment              Translation   Accumulated             Total
                                                     Capital           Reserves                Reserve        (Losses)           Equity
                                                          $                   $                       $              $                $

At 1 July 2010 restated                         31,564,544                339,700               882,378    (31,099,739)       1,686,883


Loss for the period                                          –                     –                  –     (11,103,431)     (11,103,431)
Other comprehensive                                          –                     –          2,943,907               –       2,943,907
income/(loss)
Total comprehensive
                                                             –                     –          2,943,907     (11,103,431)      (8,159,524)
income/(loss) for the year


Transactions with owners
in their capacity as owners
Share issues                                      9,149,811                        –                  –               –       9,149,811
Share-based payments                                         -            672,598                     -               -         672,598
Share-based costs reclassified                      339,700              (339,700)                    –               -                -
Share issue transaction costs                       (534,115)                      –                  –               –         (534,115)
At 30 June 2011                                 40,519,940                672,598             3,826,285    (42,203,170)       2,815,653



At 1 July 2009 restated                         28,541,940                438,700               172,978    (20,869,154)       8,284,464


Loss for the period                                          –                     –                  –    (10,230,585)     (10,230,585)
Other comprehensive                                          –                     –            709,400               –         709,400
income/(loss)
Total comprehensive
                                                             –                     –            709,400    (10,230,585)      (9,521,185)
income/(loss) for the year


Transactions with owners
in their capacity as owners
Share issues                                      3,201,000                        –                  –               –       3,201,000
Share-based costs reclassified                        99,000               (99,000)                   -               -                -
to accumulated losses
Share issue transaction costs                       (277,396)                      -                  –               –         (277,396)
At 30 June 2010 restated                        31,564,544                339,700               882,378    (31,099,739)       1,686,883

The	above	Statement	of	Changes	in	Equity	should	be	read	in	conjunction	with	the	accompanying	notes.




                                                                                                                                           37
FINANCIAL STATEMENTS CONTINUED




Statement of Cash Flows
Year ended 30 June 2011




                                                                                                   Consolidated     Consolidated
                                                                                                           2011             2010
                                                                                         Notes                $                $
Cash flows from operating activities
Payments to suppliers and employees                                                                  (2,651,547)      (1,939,058)
Payment of exploration expenditure                                                                   (4,833,607)       (7,048,425)
Rent received                                                                                           184,750           50,774
Interest received                                                                                       201,299          202,942
Net cash from/(used in) operating activities                                               10(a)      (7,099,105)     (8,733,767)


Cash flows from investing activities
Acquisition	of	property,	plant	&	equipment                                                              (56,471)        (170,134)
Payment of security deposit                                                                              (17,362)        (25,795)
Net cash flows (used in) investing activities                                                           (73,833)        (195,929)


Cash flows from financing activities
Proceeds from issues of ordinary shares                                                               9,149,811        2,893,000
Capital raising expenses                                                                               (534,115)        (513,761)
Net cash flows from /(used in) financing activities                                                   8,615,696        2,379,239


Net increase/(decrease) in cash and cash equivalents                                                  1,442,758       (6,550,457)
Net foreign exchange differences                                                                        (15,861)          (2,558)
Add	opening	cash	and	cash	equivalents                                                                 1,972,894        8,525,909
Closing cash and cash equivalents                                                                     3,399,791        1,972,894

The above Statement of Cash Flows should be read in conjunction with the accompanying notes.




38
                                                                                                        URANEX ANNUAL REPORT 2011




Notes to the Financial Statements
Year ended 30 June 2011




1. Summary of significant accounting policies
The principal accounting policies adopted in the preparation of the financial report are set out below. The financial report
covers the consolidated group of Uranex NL and controlled entities (“the Group”). Uranex NL is a company, limited by
shares, incorporated in Australia whose shares are publicly traded on Australian Securities Exchange (“ASX”).
The Company’s registered office is noted in the corporate directory.
The entity’s principal activity is mineral exploration.
The following is a summary of the material accounting policies adopted by the consolidated Group in the preparation of the
financial report. The accounting policies have been consistently applied to all years presented, unless otherwise stated.

Basis of preparation
The financial report is a general purpose financial report that has been prepared in accordance with Australian Accounting
Standards, other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001.
The financial report has been prepared on an accruals basis under the historical cost convention, as modified by the
revaluation of selected non current assets, financial assets and financial liabilities for which the fair value basis of accounting
has been applied.

Changes in accounting policy
Effective 1 July 2010 the Group has amended its accounting policy for the treatment of costs of exploration and evaluation of
mineral resources whereby such costs are now expensed as incurred in accordance with AASB 6 – Exploration for and
Evaluation of Mineral Resources. This amendment to the accounting policy has had a significant effect on the financial
performance of the Group because it previously capitalised exploration expenditure in the period it was incurred. The Group
has transferred at the beginning of the comparative period exploration expenditure costs carried forward to accumulated
losses as a result of the change in accounting policy.
The exploration expenditure is now expensed as incurred directly in the Statement of Comprehensive Income. The Directors
believe that this method of accounting for exploration expenditure provides more relevant information about the Company’s
operations. The cumulative impacts of this change are shown below.

                                                                                          Consolidated
                                                                                                               Periods prior to
                                                                      30 Jun 2011            30 Jun 2010            1 Jul 2009
                                                                                $                      $                      $
Statement of Financial Position
(Decrease) in exploration & development costs                          (30,756,911)           (18,218,645)          (12,613,264)
Decrease (Increase) in reserves                                          (2,927,051)           (1,656,486)                 7,591
 (Increase) in accumulated losses                                      (27,159,842)           (19,329,833)          (12,149,653)
Decrease	in	contributed	equity                                             670,018               545,298                456,020


Statement of Comprehensive Income
Increase in expenses                                                     7,954,729              7,269,458            12,605,673
(Decrease) in income tax expense                                          (124,720)               (89,278)             (456,020)


Change in EPS (cents)                                                          5.23                   7.00        Not applicable




                                                                                                                                   39
NOTES TO FINANCIAL STATEMENTS CONTINUED




1. Summary of significant accounting policies (continued)

Prior Period Adjustment
During the year ended 30 June 2011, the company became aware of the non-remittance of a number of indirect taxes and
non-submission of a number of corporate, value added tax and other indirect tax returns in Tanzania, as well as the probability
that recharges from Australia to Tanzania for exploration expenditure would attract Tanzanian withholding tax at a rate of 15%.
As a result, at 30 June 2011 the group has established an accrual for the underlying unremitted indirect taxes, penalties and
interest. The accrual for the underlying unremitted indirect taxes, penalties and interest was not material to prior period
financial reports, as under the previous accounting policy set out above, the majority of these indirect taxes (but not penalties
and interest) would have been capitalised in exploration expenditure. However, as this policy has been amended and
exploration expenditure is now expensed, the unremitted indirect tax liabilities, penalties and interest would also be
expensed. As a result, each of the effected financial statement line items for the year in which the liability arose has been
restated. The cumulative impacts of this change are shown below.

                                                                                                  Consolidated
                                                                                                          Periods prior to
                                                                                           30 Jun 2010         1 Jul 2009
                                                                                                     $                   $
Statement of Financial Position
Increase in trade and other payables                                                            850,743               545,047
(Decrease) Increase in reserves                                                                  55,891                   519
Decrease (Increase) in accumulated losses                                                      (906,634)             (545,566)


Statement of Comprehensive Income
Increase in non recoverable indirect taxes, penalties and interest                              447,718               583,919
(Increase) in unrealised foreign exchange gains                                                 (86,650)              (38,354)


Other Comprehensive Income
(Increase) in foreign currency translation                                                      (55,372)                  (519)


Change in EPS (cents)                                                                              0.35         Not applicable

Going concern
The	Group	is	involved	in	the	exploration	and	evaluation	of	mineral	tenements.	Further	expenditure	will	be	required	upon	
these tenements to ascertain whether they contain economically recoverable reserves.
For the year ended 30 June 2011 the Group reported a net loss of $11,103,431 (2010: $10,230,585) and gained a net cash
inflows of $1,442,758 (2010: $6,550,457 net outflows). As at 30 June 2011 the Group had net current assets of $2,201,649
(2010: $829,203) including cash reserves of $3,399,791 (2010: $1,972,894).
The balance of these cash reserves are not sufficient to meet the Group’s planned expenditure budget including exploration
activities for the 12 months to 30 June 2012. The Group has exploration commitments over the next 12 months totalling
$4,828,687   .	In	order	to	fully	implement	its	exploration	strategy	the	Group	will	require	additional	funds.
The Company announced on 29 September 2011 a share placement to immediately raise $1.678 million and a Share
Purchase	Plan	to	raise	a	further	$3	million	in	equity.	Furthermore,	by	22	November	2011	the	Company	expects	to	settle	the	
sale of its Australian uranium assets for the sum of $19.5 million pre-tax, having received a non–refundable deposit of $0.5m
upon signing of a Heads of Agreement as announced on 26 August 2011. At the date of this report the planned sale remains
subject to the completion of due diligence by the purchaser and relevant regulatory approvals.
Notwithstanding the above, the financial statements have been prepared on a going concern basis which contemplates the
continuity of normal business activities and the realisation of assets and settlement of liabilities in the ordinary course of
business.




40
                                                                                                        URANEX ANNUAL REPORT 2011




1. Summary of significant accounting policies (continued)
To	continue	as	a	going	concern	the	Group	requires	additional	funding	to	be	secured	from	sources	including	but	not	limited	to:
   T
•	 	 he	successful	completion	of	the	sale	of	the	Australian	uranium	assets	and	collection	of	the	$19.5m	pre-tax	proceeds	of	
   this sale,
•	 The	successful	completion	of	the	Share	Purchase	Plan	to	raise	$3m,
•	 A	further	equity	capital	raising,
•	 The	potential	farm	out	of	participating	interests	in	the	Group’s	tenements,	and/or
   T
•	 	 he	generation	of	sufficient	funds	from	operating	activities	including	the	successful	development	of	the	existing	
   tenements.
Having carefully assessed the uncertainties relating to the likelihood of securing additional funding, the Group’s ability to
effectively manage their expenditures and cash flows from operations and the opportunity to farm out participating interests
in existing permits, the Directors believe that the Group will continue to operate as a going concern for the foreseeable
future. Therefore, the Directors consider it appropriate to prepare the financial statements on a going concern basis.
In the event that the assumptions underpinning the basis of preparation do not occur as anticipated, there is significant
uncertainty whether the Group will continue to operate as a going concern. If the Group is unable to continue as a going
concern	it	may	be	required	to	realise	its	assets	and	extinguish	its	liabilities	other	than	in	the	normal	course	of	business	and	at	
amounts different to those stated in the financial statements.
No adjustments have been made to the financial report relating to the recoverability and classification of the asset carrying
amounts or the classification of liabilities that might be necessary should the Group not continue as a going concern.

Compliance with IFRS
The financial report of the Group complies with Australian Accounting Standards and International Financial Reporting
Standards (“IFRS”) as issued by the International Accounting Standards Board.
The financial statements were authorised for issue by the Directors on 30 September 2011.

New accounting standards and interpretations

(i) Changes in accounting policy and disclosures.
The accounting policies adopted are consistent with those of the previous financial year, with no exception of the changes
outlined under changes in accounting policies above.
There has been no impact on the financial statements or performance of the Group from adopting the following new and
amended Australian Accounting Standards and AASB interpretations as of 1 July 2010.
   A
•	 	 ASB	2009-5	Amendments to Australian Accounting Standard arising from the Annual Improvements Project effective
   1 July 2010
   A
•	 	 ASB	2009-8	Amendments to Australian Accounting Standard – Group Cash-settled Share-based Payment Transactions
   [AASB 2] effective 1 July 2010
   A
•	 	 ASB	2009-10	Amendments to Australian Accounting Standard – Classification of Rights Issues [AASB 132] effective
   1 July 2010
   A
•	 	 ASB	2010-3	Amendments to Australian Accounting Standard arising from the Annual Improvements Project [AASB 3,
          ,
   AASB 7 AASB 121, AASB128, AASB 131, AASB 132 & AASB 139] effective 1 July
• Interpretation 19 Extinguishing Financial Liabilities with Equity Instruments effective 1 July 2010

(ii) New Accounting Standards and Interpretations not yet adopted
The following standards, amendments to standards and interpretations have been identified as those which may impact the
Group in the period of initial application. They have been issued but are not yet effective and are available for early adoption at
30 June 2011, but have not been applied in preparing this financial report.




                                                                                                                                 41
NOTES TO FINANCIAL STATEMENTS CONTINUED




1. Summary of significant accounting policies (continued)

                                                                             Application Impact on the          Application
                                                                             date of     Group financial        date for the
Reference     Title             Summary                                      standard    report                 Group

AASB 9        Financial         AASB	9	includes	requirements	for	the	        1 January   This standard          1 July 2013
              Instruments       classification and measurement of            2013        may change
                                financial assets resulting from the first                the disclosures
                                part of Phase 1 of the IASB’s project to                 currently made
                                replace IAS 39 Financial Instruments:                    in the Group’s
                                Recognition and Measurement (AASB                        financial report but
                                139 Financial Instruments: Recognition                   will have no
                                and Measurement).                                        impact on the
                                                                                         amounts
                                These	requirements	improve	and	simplify	                 recognised in
                                the approach for classification and                      the financial
                                measurement of financial assets                          statements.
                                compared	with	the	requirements	of	
                                AASB 139. The main changes from
                                AASB 139 are described below.
                                Financial assets are classified based on
                                (1) the objective of the entity’s business
                                model for managing the financial assets;
                                (2) the characteristics of the contractual
                                cash flows. This replaces the numerous
                                categories of financial assets in AASB
                                139, each of which had its own
                                classification criteria.
                                AASB 9 allows an irrevocable election on
                                initial recognition to present gains and
                                losses	on	investments	in	equity	
                                instruments that are not held for trading
                                in other comprehensive income.
                                Dividends in respect of these
                                investments that are a return on
                                investment can be recognised in profit or
                                loss and there is no impairment or
                                recycling on disposal of the instrument.
                                Financial assets can be designated and
                                measured at fair value through profit or
                                loss at initial recognition if doing so
                                eliminates or significantly reduces a
                                measurement or recognition
                                inconsistency that would arise from
                                measuring assets or liabilities, or
                                recognising the gains and losses on
                                them, on different bases.

AASB          Amendments to     These amendments arise from the              1 January   This standard may      1 July 2013
2009-11       Australian        issuance of AASB 9 Financial                 2013        change the
              Accounting        Instruments	that	sets	out	requirements	                  disclosures
              Standards         for the classification and measurement                   currently made in
              arising from      of	financial	assets.	The	requirements	in	                the Group’s
              AASB 9            AASB 9 form part of the first phase of                   financial report but
              [AASB 1, 3, 4,    the International Accounting Standards                   will have no impact
                  ,
              5, 7 101, 102,    Board’s project to replace IAS 39                        on the amounts
              108, 112, 118,    Financial Instruments: Recognition and                   recognised in the
                       ,
              121, 127 128,     Measurement.                                             financial
              131, 132, 136,                                                             statements.
              139, 1023 &       This Standard shall be applied when
              1038 and          AASB 9 is applied.
              Interpretations
              10 & 12]



42
                                                                                                  URANEX ANNUAL REPORT 2011




1. Summary of significant accounting policies (continued)

                                                                            Application Impact on the           Application
                                                                            date of     Group financial         date for the
Reference   Title              Summary                                      standard    report                  Group

AASB 124    Related Party      The revised AASB 124 simplifies the           1 January   This standard may      1 July 2011
(Revised)   Disclosures        definition of a related party, clarifying its 2011        change the
            (December          intended meaning and eliminating                          disclosures
            2009)              inconsistencies from the definition,                      currently made in
                               including:                                                the Group’s
                               •	 	 he	definition	now	identifies	a	
                                  t                                                      financial report but
                                  subsidiary and an associate with the                   will have no impact
                                  same investor as related parties of                    on the amounts
                                  each other;                                            recognised in the
                               •	 	 ntities	significantly	influenced	by	one	
                                  e                                                      financial
                                  person and entities significantly                      statements.
                                  influenced by a close member of the
                                  family of that person are no longer
                                  related parties of each other; and
                                  t
                               •	 	 he	definition	now	identifies	that,	
                                  whenever a person or entity has both
                                  joint control over a second entity and
                                  joint control or significant influence
                                  over a third party, the second and third
                                  entities are related to each other.
                               A partial exemption is also provided from
                               the	disclosure	requirements	for	
                               government-related entities. Entities that
                               are related by virtue of being controlled
                               by the same government can provide
                               reduced related party disclosures.

AASB        Further            Emphasises the interaction between           1 January    This standard          1 July 2011
2010-4      Amendments         quantitative	and	qualitative	AASB	7	         2011         may change the
            to Australian      disclosures and the nature and extent                     disclosures
            Accounting         of risks associated with financial                        currently made
            Standards          instruments.                                              in the Group’s
            arising from the                                                             financial report but
            Annual             Clarifies that an entity will present an                  will have no impact
            Improvements       analysis of other comprehensive income                    on the amounts
            Project [AASB      for	each	component	of	equity,	either	in	                  recognised in
            1, AASB 7  ,       the	statement	of	changes	in	equity	or	                    the financial
            AASB 101,          in the notes to the financial statements.                 statements.
            AASB 134 and       Provides guidance to illustrate how to
            Interpretation     apply disclosure principles in AASB 134
            13]                for significant events and transactions.
                               Clarify that when the fair value of award
                               credits is measured based on the value
                               of the awards for which they could be
                               redeemed, the amount of discounts or
                               incentives otherwise granted to
                               customers not participating in the award
                               credit scheme, is to be taken into
                               account.




                                                                                                                              43
NOTES TO FINANCIAL STATEMENTS CONTINUED




1. Summary of significant accounting policies (continued)

                                                                               Application Impact on the            Application
                                                                               date of     Group financial          date for the
Reference     Title              Summary                                       standard    report                   Group

AASB          Amendments to      The	requirements	for	classifying	and	           1 January   This standard          1 July 2013
2010-7        Australian         measuring financial liabilities were added 2013             may change
              Accounting         to	AASB	9.	The	existing	requirements	for	                   the disclosures
              Standards          the classification of financial liabilities and             currently made
              arising from       the ability to use the fair value option                    in the Group’s
              AASB 9             have been retained. However, where the                      financial report but
              (December          fair value option is used for financial                     will have no impact
              2010) [AASB 1,     liabilities the change in fair value is                     on the amounts
              3, 4, 5, 7 101,
                        ,        accounted for as follows:                                   recognised in
              102, 108, 112,        T
                                 •	 	 he	change	attributable	to	changes	in	                  the financial
              118, 120, 121,        credit risk are presented in other                       statements.
              127 128, 131,
                  ,                 comprehensive income (OCI)
              132, 136, 137  ,      T
                                 •	 	 he	remaining	change	is	presented	in	
              139, 1023,            profit or loss
              & 1038 and
              interpretations    If this approach creates or enlarges an
              2, 5, 10, 12, 19   accounting mismatch in the profit or loss,
              & 127]             the effect of the changes in credit risk
                                 are also presented in profit or loss.

AASB 10       Consolidated       AASB 10 redefines and clarifies the           1 January     This new standard      1 July 2013
              Financial          notion of control that is the basis for       2013          may change the
              Statements         determining which entities should be                        entities that are
                                 incorporated on a line-by-line basis into                   consolidated
                                 the consolidated financial statements of                    into the Group’s
                                 a group.                                                    financial
                                                                                             statements.

AASB 11       Joint              AASB 11 responds to concerns that the   1 January           This standard          1 July 2013
              Arrangements       superseded	Standard	required	the	legal	 2013                may change
                                 form of an arrangement to determine the                     the disclosures
                                 accounting for that arrangement, and                        currently made
                                 allowed an accounting option, which                         in the Group’s
                                 undermined comparability between                            financial report but
                                 entities.                                                   will have no impact
                                                                                             on the amounts
                                 This new standard better reflects the                       recognised in
                                 underlying	economic	by	requiring	the	                       the financial
                                 financial statements of a party to a joint                  statements.
                                 arrangement to reflect its rights and
                                 obligations arising from that
                                 arrangement.

AASB 12       Disclosure of      AASB 12 focuses on disclosures that           1 January     This standard          1 July 2013
              Interests in       would help users better assess the            2013          may change
              Other Entities     nature and financial effects of an entity’s                 the disclosures
                                 involvement with other entities, and                        currently made
                                 particularly enhances disclosures about                     in the Group’s
                                 consolidated entities and unconsolidated                    financial report but
                                 (off balance sheet) structured entities.                    will have no impact
                                 For example, new disclosures will help                      on the amounts
                                 assessments to be made of the risks                         recognised in
                                 to which an entity is exposed from                          the financial
                                 involvement with structured entities.                       statements.




44
                                                                                                   URANEX ANNUAL REPORT 2011




1. Summary of significant accounting policies (continued)
Other amendments issued but not yet effective from the            A
                                                               •	 	 ASB	2011-5	Equity	Method	and	Proportionate	
Annual Improvements Projects to the following Standards           Amendments to Australian Accounting Standards –
will have no impact on the accounting policies, financial         Extending Relief from Consolidation, the Consolidation
position or performance of the Group:                                      ,
                                                                  [AASB 127 AASB 128 & AASB 131]
•	 	 ASB	2009-12	Amendments	to	Australian	Accounting	
   A                                                              A
                                                               •	 	 ASB	2011-3	Amendments	to	Australian	Accounting	
   Standards [AASB 5,8,108,110,112,119,133,137 ,139, 1023         Standards – Orderly Adoption of Changes to the ABS GFS
   & 1031 and interpretations 2,4,16,1039 & 1052]                 Manual and Related Amendments [AASB 1049]
•	 	 ASB	2009-14	Amendments	to	Australian	Interpretation	
   A                                                              A
                                                               •	 	 ASB	2011-4	Amendments	to	Australian	Accounting	
   –	Prepayments	of	a	Minimum	Funding	Requirement	AASB	           Standards to Remove Individual Key Management
   2010-1 Amendments to Australian Accounting Standards           Personnel	Disclosure	Requirements	[AASB	124]
   – Limited Exemption from Comparative AASB 7
   Disclosures for First-time Adopters                         Principles of consolidation
   A
•	 	 ASB	1053	Application	of	Tiers	of	Australian	Accounting	   The consolidated financial statements are those of the
   Standards                                                   consolidated entity, comprising Uranex NL (the parent
•	 	 ASB	1054	Australian	Additional	Disclosures
   A                                                           entity),
•	 	 ASB	2010-2	Amendments	to	Australian	Accounting	
   A                                                           special purpose entities and all entities which Uranex NL
   Standards	arising	from	reduced	disclosure	requirements      controlled from time to time during the year and at reporting
                                                               date.
   A
•	 	 ASB	2010-5	Amendments	to	Australian	Accounting	
                                                               A controlled entity is any entity Uranex NL has the power to
                                       ,
   Standards [AASB 1, 3, 4, 5, 101, 107 112, 118, 119, 121,
                                                               control the financial and operating policies of so as to obtain
                     ,
   132, 133, 134, 137 139, 140, 1023 & 1038 and
                                                               benefits from its activities. A list of controlled entities and
                                ,
   Interpretations 112, 115, 127 132 & 1042]
                                                               special purpose entities is contained in note 11.
   A
•	 	 ASB	2010-6	Amendments	to	Australian	Accounting	
   Standards – Disclosure on Transfers of Financial assets     Information from the financial statements of subsidiaries and
   [AASB 1 & AASB 7]                                           special purpose entities is included from the date the parent
                                                               company obtains control until such time as control ceases.
   A
•	 	 ASB	2010-9	Amendments	to	Australian	Accounting	
                                                               Where there is loss of control of a subsidiary, the
   Standards – Deferred Tax: Recovery of Underlying Assets
                                                               consolidated financial statements include the results for the
   [AASB 112]
                                                               part of the reporting period during which the parent
   A
•	 	 ASB	2011-1	Amendments	to	Australian	Accounting	           company has control.
   Standards arising from the Trans-Tasman Convergence
   project [AASB 1, AASB 5, AASB 101, AASB 107 AASB  ,         Special purpose entities are those entities over which the
   108, AASB 121, AASB128, AASB 132, AASB 134,                 Group has no ownership interest but in effect the substance
   Interpretation 2, Interpretation 112, Interpretation 113]   of the relationship is such that the Group controls the entity
                                                               so as to obtain the majority of benefits from its operation.
   A
•	 	 ASB	2011-2	Amendments	to	Australian	Accounting	
   Standards arising from the Trans-Tasman Convergence         The financial statements of subsidiaries are prepared for the
   project – Reduced disclosure regime [AASB 101, AASB         same reporting period as the parent entity, using consistent
   1054]                                                       accounting policies. Adjustments are made to bring into line
•	 	 ASB	127	Separate	Financial	Statements
   A                                                           any dissimilar accounting policies which may exist.

•	 	 ASB	128	Investments	in	Associates	and	Joint	Ventures
   A                                                           All intercompany balances and transactions, including
•	 	 ASB	2011-7	Amendments	to	Australian	Accounting	
   A                                                           unrealised profits arising from intra group transactions, have
   Standards arising from Consolidation and Joint              been eliminated on consolidation. Unrealised losses are
   Arrangements Standards                                      eliminated unless costs cannot be recovered.

•	 	 ASB	13	Fair	Value	Measurement
   A                                                           Investments in subsidiaries are accounted for at cost net of
•	 	 ASB	2011-8	Amendments	to	Australian	Accounting	
   A                                                           provision for impairment in the individual financial
   Standards arising from AASB 13                              statements of Uranex NL.
   AASB 119 Employee Benefits
   A
•	 	 ASB	2011-9	Amendments	to	Australian	Accounting	
   Standards – Presentation of Items of Other
   Comprehensive Income




                                                                                                                            45
NOTES TO FINANCIAL STATEMENTS CONTINUED




1. Summary of significant accounting policies (continued)
The	acquisition	of	subsidiaries	is	accounted	for	using	the	          Segment reporting
acquisition	method	of	accounting.	This	method	involves	
                                                                     An operating segment is a distinguishable component of the
recognising	at	acquisition	date,	separately	from	goodwill,	the	
                                                                     entity that is engaged in providing products or services that
identifiable	assets	acquired,	the	liabilities	assumed	and	any	
                                                                     are subject to risks and returns that are different to those of
non-controlling	interest	in	the	acquiree.	The	identifiable	
                                                                     other operating segments.
assets	acquired	and	the	liabilities	assumed	are	measured	at	
their	acquisition	date	fair	values.                                  Operating	segments	that	meet	the	quantitative	criteria	as	
                                                                     prescribed by AASB 8 are reported separately. However,
The difference between the above items and the fair value
                                                                     an	operating	segment	that	does	not	meet	the	quantitative	
of the consideration (including the fair value of any pre-
                                                                     criteria is still reported separately where information about
existing	investment	in	the	acquiree)	is	goodwill	or	a	discount	
                                                                     the segment would be useful to users of the financial
on	acquisition.
                                                                     statements.
Business combinations
                                                                     Property, plant and equipment
Business combinations are accounted for using the
                                                                     Each	class	of	property,	plant	and	equipment	is	carried	at	cost	
acquisition	method.	The	consideration	transferred	in	a	
                                                                     less, where applicable, any accumulated depreciation and
business combination shall be measured at fair value, which
                                                                     impairment losses.
shall	be	calculated	as	the	sum	of	the	acquisition-date	fair	
values	of	the	assets	transferred	by	the	acquirer,	the	liabilities	   The cost of fixed assets constructed within the Group
incurred	by	the	acquirer	to	former	owners	of	the	acquiree,	          includes the cost of materials, direct labour, borrowing costs
the	equity	issued	by	the	acquirer	and	the	amount	of	any	             and an appropriate proportion of fixed and variable
non-controlling	interest	in	the	acquiree.	For	each	business	         overheads.	Subsequent	costs	are	included	in	the	asset’s	
combination,	the	acquirer	measures	the	non-controlling	              carrying amount or recognised as a separate asset, as
interest	in	the	acquiree	either	at	fair	value	or	at	the	             appropriate, only when it is probable that future economic
proportionate	share	of	the	acquiree’s	identifiable	net	assets.	      benefits associated with the item will flow to the group and
Acquisition-related	costs	are	expensed	as	incurred.                  the cost of the item can be measured reliably. All other
                                                                     repairs and maintenance are charged to profit and loss
When	the	Group	acquires	a	business,	it	assesses	the	
                                                                     during the financial period in which they are incurred.
financial assets and liabilities assumed for appropriate
classification and designation in accordance with the
                                                                     Depreciation
contractual terms, economic conditions, the Group’s
operating or accounting policies and other pertinent                 Depreciation	is	provided	on	plant	and	equipment,	motor	
conditions	as	at	the	acquisition	date.                               vehicles,	office	equipment,	furniture	and	fittings,	and	is	
                                                                     calculated on a straight line basis, commencing from the
If the business combination is achieved in stages, the
                                                                     time the asset is first used, so as to write off the net costs
acquisition	date	fair	value	of	the	acquirer’s	previously	held	
                                                                     of each asset over the expected useful life. The following
equity	interest	in	the	acquiree	is	remeasured	at	fair	value	
                                                                     useful lives are used in the calculation of depreciation:
as	at	the	acquisition	date	through	profit	or	loss.
                                                                        P
                                                                     •	 	 lant	&	equipment	                          2	to	5	years
Any contingent consideration to be transferred by the
                                                                        V
                                                                     •	 	 ehicles	                                   2	to	5	years
acquirer	will	be	recognised	at	fair	value	at	the	acquisition	
date.	Subsequent	changes	to	the	fair	value	of	the	contingent	           O
                                                                     •	 	 ffice	equipment,	furniture	&	fittings	    2	to	20	years
consideration which is deemed to be an asset or liability will       Both asset residual value and useful life are reviewed, and
be recognised in accordance with AASB 139 either in profit           adjusted if appropriate, at each reporting date.
or loss or in other comprehensive income. If the contingent
                                                                     Gains and losses on disposals are determined by comparing
consideration	is	classified	as	equity,	it	shall	not	be	
                                                                     proceeds with carrying amount. These are included in profit
remeasured.
                                                                     or loss.




46
                                                                                                               URANEX ANNUAL REPORT 2011




1. Summary of significant accounting policies (continued)
Impairment of assets                                                    Deferred income tax assets are recognised for all deductible
                                                                        temporary differences, carry-forward of unused tax assets
At each reporting date, the Group reviews the carrying
                                                                        and unused tax losses, to the extent that it is probable that
values	of	its	property,	plant	&	equipment	assets	to	
                                                                        taxable profit will be available against which the deductible
determine whether there is any indication that those assets
                                                                        temporary differences, and the carry-forward of unused tax
have been impaired. If such an indication exists, the
                                                                        assets and unused tax losses can be used, except:
recoverable amount of the asset, being the higher of the
asset’s fair value less costs to sell and value in use, is                 w
                                                                        •	 	 here	the	deferred	income	tax	asset	relating	to	the	
compared to the asset’s carrying value. Any excess of the                  deductible temporary difference arises from the initial
asset’s carrying value over its recoverable amount is                      recognition of an asset or liability in a transaction that is
expensed to profit or loss.                                                not a business combination and, at the time of the
                                                                           transaction, affects neither the accounting profit nor
Where it is not possible to estimate the recoverable amount                taxable profit or loss; and
of an individual asset, the Group estimates the recoverable
                                                                           w
                                                                        •	 	 hen	the	deductible	temporary	differences	is	associated	
amount of the cash-generating unit to which the asset
                                                                           with investments in subsidiaries, associates or interests in
belongs.
                                                                           joint ventures, in which case a deferred tax asset is only
                                                                           recognised to the extent that it is probable that the
Exploration and evaluation costs
                                                                           temporary differences will reverse in the foreseeable
Exploration and evaluation expenditure is expensed directly                future and taxable profit will be available against which
to profit and loss when incurred.                                          the temporary differences can be applied.

Operating leases                                                        The carrying amount of deferred income tax assets is
                                                                        reviewed at each reporting date and reduced to the extent
The determination of whether an arrangement is or contains              that it is no longer probable that sufficient taxable profit will
a lease is based on the substance of the arrangement and                be available to allow all or part of the deferred income tax
requires	an	assessment	of	whether	the	fulfilment	of	the	                asset to be utilised.
arrangement is dependent on the use a specific asset or
assets and the arrangement conveys a right to use the                   Deferred income tax assets and liabilities are measured at
asset.                                                                  the tax rates that are expected to apply to the year when the
                                                                        asset is realised or the liability is settled, based on tax rates
Leases under which the lessor retains substantially all of the          (and tax laws) that have been enacted or substantively
risks and benefits of ownership of the asset are classified as          enacted at the reporting date.
operating leases. Operating lease payments are recognised
in profit or loss on a straight-line basis over the lease term.         Income	taxes	relating	to	items	recognised	directly	in	equity	
                                                                        are	recognised	in	equity	and	not	in	the	statement	of	financial	
Income tax                                                              position.

Deferred income tax is provided on all temporary differences            Deferred tax assets and deferred tax liabilities are offset only
at the reporting date between the tax bases of assets and               where a legally enforceable right of set off exists and the
liabilities and their carrying amounts for financial reporting          deferred tax assets and liabilities relate to the same taxable
purposes.                                                               entity.

Deferred income tax liabilities are recognised for all taxable          Deferred tax assets are not brought to account unless it is
temporary differences, except:                                          probable that future tax profits will be available against
                                                                        which deductible temporary differences can be utilised.
   w
•	 	 here	the	deferred	income	tax	liability	arises	from	the	
                                                                        The amount of benefits brought to account or which may
   initial recognition of an asset or liability in a transaction that
                                                                        be realised in the future is based on the assumption that
   is not a business combination and, at the time of the
                                                                        no adverse change will occur in income taxation legislation
   transaction, affects neither the accounting profit nor
                                                                        and the anticipation that the Group will derive sufficient
   taxable profit or loss; or
                                                                        future assessable income to enable the benefit to be
   w
•	 	 hen	the	taxable	temporary	difference	is	associated	with	           realised and comply with the conditions of deductibility
   investments in subsidiaries, associates or interests in joint        imposed by the law.
   ventures, and the timing of the reversal of the temporary
   differences can be controlled and it is probable that the
   temporary differences will not reverse in the foreseeable
   future.




                                                                                                                                           47
NOTES TO FINANCIAL STATEMENTS CONTINUED




1. Summary of significant accounting policies (continued)
Goods and services tax (GST)                                     Financial statements of foreign operations

Revenues, expenses and assets are recognised net of the          The financial results and position of foreign operations
amount of GST except:0                                           whose functional currency is not Australian dollars, the
                                                                 Group’s presentation currency, are translated as follows:
   w
•	 	 here	the	GST	incurred	on	a	purchase	of	goods	and	
   services is not recoverable from the taxation authority, in      a
                                                                 •	 	 ssets	and	liabilities	are	translated	at	year-end	exchange	
   which case the GST is recognised as part of the cost of          rates prevailing at that reporting date;
   acquisition	of	the	asset	or	as	part	of	the	expense	item	as	      i
                                                                 •	 	ncome	and	expenses	are	translated	at	average	exchange	
   applicable; and                                                  rates for each month during the period.
   r
•	 	 eceivables	and	payables	are	stated	with	the	amount	of	      Exchange differences arising on translation of foreign
   GST included.                                                 operations are transferred directly to the group’s foreign
The net amount of GST recoverable from, or payable to, the       currency translation reserve in other comprehensive income.
taxation authority is included as part of receivables or         These differences are recognised in the statement of
payables in the statement of financial position.                 comprehensive income in the period in which the operation
                                                                 is disposed.
Cash flows are included in the Statement of Cash Flows on
a gross basis and the GST component of cash flows arising        Trade and other receivables
from investing and financing activities, which is recoverable
                                                                 Trade receivables, which generally have 30-60 day terms, are
from, or payable to, the taxation authority, are classified as
                                                                 recognised	initially	at	fair	value	and	subsequently	measured	
operating cash flows.
                                                                 at amortised cost using the effective interest method, less
Commitments and contingencies are disclosed net of the           an allowance for impairment.
amount of GST recoverable from, or payable to, the taxation
                                                                 Collectability of trade receivables is reviewed on an ongoing
authority.
                                                                 basis. Debts that are uncollectible are written off when
Foreign currency translation                                     identified. An impairment provision is recognised where
                                                                 there is objective evidence that the Group will not be able
Functional and presentation currency                             to collect the receivable. Financial difficulties of the debtor,
The functional currency of each of the Group’s entities is       default payments or debts more than 60 days overdue are
measured using the currency of the primary economic              considered objective evidence of impairment. The amount
environment in which that entity operates. The consolidated      of the impairment loss is the receivable carrying amount
financial statements are presented in Australian dollars         compared to the present value of estimated cash flows,
which is the parent entity’s functional and presentation         discounted at the original effective interest rate.
currency.
                                                                 Accounts payable
Transactions and balances
                                                                 Trade and other payables are recognised when the Group
Foreign currency transactions are translated into functional
                                                                 becomes obliged to make further payments resulting from
currency using the exchange rates prevailing at the date
                                                                 the purchase of goods and services and are measured at
of the transaction. Foreign currency monetary items are
                                                                 amortised cost using the effective interest method, less any
re-translated at the year-end exchange rate. Non-monetary
                                                                 impairment losses.
items measured at historical cost continue to be carried
at the exchange rate at the date of the transaction.
Non-monetary items measured at fair value are reported
at the exchange rate at the date when fair values
were determined.
Exchange differences arising on the translation of monetary
items are recognised in profit or loss.




48
                                                                                                          URANEX ANNUAL REPORT 2011




1. Summary of significant accounting policies (continued)
Provisions                                                           The	cost	of	equity-settled	transactions	is	measured	by	
                                                                     reference to the fair value at the date at which they are
Provisions are recognised when the Group has a present
                                                                     granted. The fair value of options and performance rights
obligation (legal or constructive) as a result of a past event,
                                                                     with market based performance criteria is determined by
and it is probable that an outflow of resources embodying
                                                                     an external valuer using a binomial option pricing model.
economic	benefits	will	be	required	to	settle	the	obligation	
                                                                     The fair value of performance plan rights with non-market
and a reliable estimate can be made of the amount of the
                                                                     performance criteria is determined by reference to the
obligation.
                                                                     Company’s share price at date of grant.
Provisions are measured at the present value of
                                                                     The	cost	of	equity-settled	transactions	is	recognised,	
management’s	best	estimate	of	the	expenditure	required	to	
                                                                     together	with	a	corresponding	increase	in	equity,	over	the	
settle the present obligation at the reporting date. If the
                                                                     period in which the performance conditions are fulfilled,
effect of the time value of money is material, provisions are
                                                                     ending on the date on which the recipient becomes fully
determined by discounting the expected future cash flows at
                                                                     entitled to the award (‘vesting date’).
a pre-tax rate that reflects current market assessments of
the time value of money and, where appropriate, the risks            The	cumulative	expense	recognised	for	equity-settled	
specific to the liability. The increase in the provision resulting   transactions at each reporting date until vesting date reflects
from the passage of time is recognised in finance costs.             (i) the extent to which the vesting period has expired and
                                                                     (ii) the number of awards that, in the opinion of the directors,
Employee benefits                                                    based on the best available information at reporting date will
                                                                     ultimately vest. No adjustment is made for the likelihood of
Provision is made for employee benefits accumulated as a
                                                                     market conditions being met as the effect of these
result of employees rendering services up to the reporting
                                                                     conditions is included in determination of fair value at grant
date. These benefits include wages and salaries, annual
                                                                     date. The charge or credit for the period represents the
leave, and long service leave when it is probable that
                                                                     movement in cumulative expense recognised as at the
settlement	will	be	required.
                                                                     beginning and end of the period. Where awards vest
Liabilities arising in respect of wages and salaries, annual         immediately, the expense is also recognised in profit or loss.
leave and any other employee benefits expected to be
                                                                     The grant date fair value of partly paid shares granted to
settled within twelve months of the reporting date are
                                                                     employees is recognised as an employee expense, with a
measured at their nominal amounts based on remuneration
                                                                     corresponding	increase	in	equity,	over	the	period	in	which	
rates which are expected to be paid when the liability is
                                                                     employees become unconditionally entitled to them.
settled including related on-costs, such as workers
compensation and payroll tax. Non accumulating non                   No expense is recognised for awards that do not ultimately
monetary benefits, such as medical care, cars or subsidised          vest, except for awards where vesting is conditional upon a
goods and services, are expensed based on the net marginal           market condition.
cost to the Group as the benefits are taken by the
                                                                     Where	the	terms	of	an	equity-settled	award	are	modified,	as	
employees.
                                                                     a minimum an expense is recognised as if the terms had not
Defined contribution superannuation funds                            been modified. In addition, an expense is recognised for any
                                                                     increase in the value of the transaction as a result of the
Obligations for contributions to defined contribution                modification, as measured at the date of modification.
superannuation funds are recognised as an expense in profit
or loss when they are due.                                           Where	an	equity-settled	award	is	cancelled,	it	is	treated	as	
                                                                     if it had vested on the date of cancellation, and any expense
Share based payment transactions                                     not yet recognised for the award is recognised immediately.
                                                                     However, if a new award is substituted for the cancelled
The Group provides benefits to employees (including                  award, and designated as a replacement award on the date
directors) of, and consultants to, the Group in the form of          that it is granted, the cancelled and new award are treated
share-based payment transactions, whereby services are               as if they were a modification of the original award, as
rendered in exchange for shares or rights over shares                described in the previous paragraph.
(‘equity-settled	transactions’).
                                                                     The dilutive effect, if any, of outstanding options is reflected
                                                                     as additional share dilution in the computation of earnings
                                                                     per share.




                                                                                                                                    49
NOTES TO FINANCIAL STATEMENTS CONTINUED




1. Summary of significant accounting policies (continued)
Revenue recognition                                              Investments (held to maturity)
Interest revenue is recognised as interest accrues using the     Non-derivative financial assets with fixed or determinable
effective interest method.                                       payments and fixed maturity are classified as held-to-
                                                                 maturity when the Group has the positive intention and
Rental revenue is accounted for on a straight line basis over
                                                                 ability to hold to maturity. Investments intended to be held
the lease term. Contingent rental revenue is recognised as
                                                                 for an undefined period are not included in this classification.
income in the periods in which it is earned.
                                                                 Investments that are intended to be held-to-maturity, such
Revenue from the disposal of assets is recognised when the       as	term	deposits,	are	subsequently	measured	at	amortised	
Group has passed control of the asset to the buyer.              cost.

Contributed equity                                               Interests in joint controlled assets
Ordinary	shares	are	classified	as	equity.	Any	transaction	       A jointly controlled asset involves joint control and offers
costs arising on the issue of ordinary shares are recognised     joint ownership by the Group and other venturers of assets
directly	in	equity	as	a	reduction	of	the	share	proceeds	         contributed	to	or	acquired	for	the	purposes	of	the	joint	
received.                                                        venture, without the formation of a corporation, partnership
                                                                 or entity.
Earnings per share (EPS)
                                                                 The Group accounts for its share of the jointly controlled
Basic earnings per share                                         assets, and liabilities it has incurred, its share of any liabilities
Basic EPS is calculated as the profit (loss) attributable to     jointly incurred with other ventures, income from the sale
equity	holders	of	the	Company,	excluding	any	costs	of	           or use of its share of the joint venture’s output, together
servicing	equity	other	than	ordinary	shares,	divided	by	the	     with its share of the expenses incurred by the joint venture,
weighted average number of ordinary shares outstanding           and any expenses it incurs in relation to its interest in the
during the financial year, adjusted for any bonus elements       joint venture.
in ordinary shares issued during the year.
                                                                 Critical accounting estimates and judgements
Diluted earnings per share
                                                                 The carrying amounts of certain assets and liabilities are
Diluted EPS adjusts the figures used in the determination        often determined based on judgements, estimates and
of basic EPS to take into account the after income tax effect    assumptions of future events. The key estimates and
of interest and other financing costs associated with dilutive   assumptions that have a significant risk of causing a material
potential ordinary shares and the weighted average number        adjustment to the carrying amounts of certain assets and
of shares assumed to have been issued for no consideration       liabilities within the next annual reporting period are:
in relation to dilutive potential ordinary shares.
                                                                 Share-based payment transactions
Cash and cash equivalents                                        The	Group	measures	the	cost	of	equity-settled	transactions	
For statement of cash flows presentation purposes, cash          with employees and directors by reference to the fair value
and	cash	equivalents	includes	cash	on	hand,	deposits	held	       of	the	equity	instruments	at	the	date	at	which	they	are	
at call with financial institutions, other short-term highly     granted. The fair value of share options is determined by an
liquid	investments	that	are	readily	convertible	to	known	        external valuer using a binomial option pricing model, and
amounts of cash and which are subject to insignificant risk      using the assumptions detailed in note 20(e).
of changes in value, and bank overdrafts. Where applicable,
bank overdrafts are shown within borrowings in current
liabilities on the statement of financial position.




50
                                                                                         URANEX ANNUAL REPORT 2011




2. Income tax

                                                                                                 Consolidated
                                                                              Consolidated          Restated
                                                                                      2011               2010
                                                                                         $                  $
Current income tax
Current income tax credit/(expense)                                              3,447,780           3,141,159
Tax losses not recognised as not probable                                        (3,503,901)         (3,064,165)
                                                                                    (56,141)            76,994
Deferred income tax
Relating to origination and reversal of temporary differences                       56,141              (76,994)
Tax losses brought to account to offset net deferred tax liability                        –                   –
                                                                                          –             (76,994)
Income tax (expense) reported in the Statement of Comprehensive Income                    –                   –


(a) Statement of Changes in Equity
Deferred income tax related to items charged or credited directly to equity
Share issue costs                                                                  (75,983)             83,219
Not recognised as not probable                                                                          (83,219)
Deferred tax offset                                                                 75,983                    –
Income	tax	benefit	reported	in	Equity                                                     –                   –


(b) Tax Reconciliation
A reconciliation between tax expense and the product of accounting profit
before income tax multiplied by the Group’s applicable income tax rate
is as follows:
Accounting (loss) before tax                                                    (11,103,431)       (10,230,585)


At the Group’s statutory 30% tax rate (2010: 30%)                                3,331,029           3,069,176
Adjustment in respect of current income tax of previous years
Share based payment expense                                                       (201,779)                   –
Non-deductible expenses                                                            (29,349)              (5,011)
Deductible option issue costs                                                      404,000                    –
Tax losses not brought to account                                                (3,503,901)         (3,064,165)
Income tax (expense) reported in the Statement of Comprehensive Income                    –                   –




                                                                                                                  51
NOTES TO FINANCIAL STATEMENTS CONTINUED




2. Income tax (continued)

                                                  Balance Sheet Restated                     Income Statement Restated
                                                      2011               2010                     2011               2010
                                                         $                  $                         $
(c) Deferred Income Tax
Deferred income tax at 30 June
relates to the following:
Consolidated
Deferred tax liabilities
Prepayments                                          (39,719)              (53,479)                13,760                (25,719)
Interest receivable                                    (7,326)               (4,365)               (2,962)                3,083
Deferred income tax liabilities                      (47,045)               (57,844)


Deferred tax assets
Accruals                                            160,779                 73,215                 87,564                (70,864)
Provisions                                            37,786                55,226                 (17,440)              (37,837)
Other                                                29,560                 54,341                (24,782)               54,342
Share issue costs                                   143,610                623,593                       –                     –
Temporary differences not recognised
                                                   (324,690)              (748,531)                      –                     –
as not probable
Deferred income tax assets                            47,045                 57,844
Net deferred tax asset/(liability)                          –                     –
Deferred tax (expense)                                                                             56,140                (76,995)

The benefit of these losses and temporary differences will only be obtained if:
   t
•	 	 he	Group	derives	future	assessable	income	of	a	nature	and	an	amount	sufficient	to	enable	the	benefit	from	the	deductions	
   for the loss to be realised.
   t
•	 	 he	Group	continues	to	comply	with	the	condition	of	deductibility	imposed	by	law;	and
   n
•	 	 o	changes	in	tax	legislation	adversely	affect	the	Group	in	realising	the	benefit	from	the	deduction	for	the	loss.
At the reporting date, the Group has estimated unbooked gross tax losses of $35,758,509 (2010:$24,078,839) that are
available to offset against future taxable income subject to continuing to meet relevant statutory tests. To the extent that it
does not offset a deferred tax liability, a deferred tax asset has not been recognised for these losses because it is not
probable that future taxable income will be available to use against such losses.




52
                                                                                                   URANEX ANNUAL REPORT 2011




3. Dividends paid or provided for on ordinary shares
No dividends were paid or declared since the start of the financial year. No recommendation for payment of dividends has
been made.


4. Trade and other receivables

                                                                                                       Consolidated
                                                                                               2011                    2010
                                                                                                  $                       $
(a) Current
Accrued interest                                                                             24,421                   14,549
Trade debtors                                                                                      –                   9,767
Goods and services tax recoverable                                                          364,789              240,354
Prepayments                                                                                 132,396               178,263
Research and development grant                                                              404,156                        –
Other                                                                                              –                   1,979
                                                                                            925,762               444,912


(b) Non-current
Bond                                                                                         85,000               85,000
Security deposit                                                                            159,609               142,247
                                                                                            244,609               227,247

Balances within trade and other receivables do not contain impaired assets and are not past due.
It is expected that these other balances will be received when due.




                                                                                                                               53
NOTES TO FINANCIAL STATEMENTS CONTINUED




5. Property plant and equipment
Reconciliation of carrying amounts at the beginning and end of the year

                                                                                 Consolidated
                                                                           Plant and                Office
                                                                          equipment             equipment
                                                                                   $                     $
Year ended 30 June 2011
Balance at 1 July 2010 net of accumulated depreciation                    524,284               68,388
Additions                                                                   9,544                36,301
Currency translation differences                                           (75,328)              (2,587)
Depreciation charge for the year                                          (126,090)             (45,102)
Balance at 30 June 2011 net of accumulated depreciation                   332,410                57,000


At 30 June 2011
Cost                                                                      640,211               107,743
Accumulated depreciation and impairment                                   (307,801)             (50,743)
Net carrying amount                                                       332,410                57,000


Year ended 30 June 2010
Balance at 1 July 2009 net of accumulated depreciation                    609,599                80,156
Additions                                                                 102,232                23,177
Currency translation differences                                           (62,232)              (1,477)
Depreciation charge for the year                                          (125,315)             (33,468)
Balance at 30 June 2010 net of accumulated depreciation                   524,284               68,388


At 30 June 2010
Cost                                                                      788,901               152,252
Accumulated depreciation and impairment                                   (264,617)             (83,864)
Net carrying amount                                                       524,284               68,388




54
                                                                     URANEX ANNUAL REPORT 2011




                                     Consolidated
            Office furniture and              Office        Motor
 Software                 fittings    improvements        vehicles                    Total
        $                        $                 $             $                       $


10,287                 15,571             16,670       160,650                 795,850
 1,610                  9,016                   -             -                  56,471
      -                      -                  -       (25,231)               (103,146)
(10,119)               (8,968)            (4,607)       (52,823)               (247,709)
 1,778                 15,619             12,063        82,596                  501,466



26,767                 37,397             23,033       264,117                1,099,268
(24,989)              (21,778)           (10,970)      (181,521)               (597,802)
 1,778                 15,619             12,063        82,596                  501,466



19,929                 19,480             15,028       207,535                 951,727
      -                   750              5,436        38,539                  170,134
      -                      -                  -       (23,436)                 (87,145)
 (9,642)               (4,659)            (3,794)       (61,988)               (238,866)
10,287                 15,571             16,670       160,650                 795,850



28,953                 57,720             23,033       313,326                1,364,185
(18,666)              (42,149)            (6,363)      (152,676)               (568,335)
10,287                15,571              16,670       160,650                 795,850




                                                                                              55
NOTES TO FINANCIAL STATEMENTS CONTINUED




6. Trade and other payables

                                                         Consolidated
                                          Consolidated      Restated
                                                  2011           2010
                                                     $              $
(a) Current
Trade payables                                 438,173        215,651
Other payables and accruals                  1,506,814      1,165,364
                                             1,944,987      1,381,015
Related party payables
Trade payables                                  24,346         14,988
Other payables and accruals                     62,156              –
                                             2,031,489      1,396,003


(b) Non Current
Other payables                                  55,936         39,463
                                                55,936         39,463



7. Provisions

                                                         Consolidated
                                          Consolidated      Restated
                                                  2011           2010
                                                     $              $
Current
Provision for annual leave (a)                  34,282        118,210
Provision for redundancy     (b)
                                                     –         16,257
Provision for restructure   (d)
                                                58,133         58,133
                                                92,415        192,600


Non-current
Provision for long service leave (c)             8,314              –
Provision for restructure   (d)
                                                67,821        125,954
                                                76,135        125,954




56
                                                                                                     URANEX ANNUAL REPORT 2011




 .
7 Provisions (continued)

Movements in provisions
Movements in each class of provision during the financial year, other than provisions relating to employee benefits, are set
out as follows:

                                                                                          Restructure
                                                                                                costs                  Total
                                                                                                    $                     $
At 1 July 2010                                                                                184,087               184,087
Utilised                                                                                       (58,133)              (58,133)
At 30 June 2011                                                                               125,954               125,954

(a) Annual Leave
    An estimate of annual leave is provided after reviewing relevant workplace agreements and industrial awards for
    respective employees and determining entitlement at balance date. The cost includes an account of direct employment
    costs.
(b) Redundancy
    The Company made provision for costs associated with a redundancy programme undertaken in June and July 2010.
(c) Long Service Leave
    Refer to note 1 for the relevant policy and a discussion of the significant assumptions applied in the measurement of this
    provision.
(d) Restructure
    The Company closed its Perth branch office in March 2010. The long term office lease expense was provided for as a
    restructure	cost	in	that	financial	year.	The	provision	is	reduced	equally	over	the	period	to	expiry.


8. Contributed equity

                                                                                                         2011
                                                                                           Number of
                                                                                              shares                       $
(a) Issued and paid up capital
Ordinary shares fully paid                                                                169,615,236            37,875,648
Forfeited shares                                                                            4,240,000                 55,400
Ordinary shares – employees                                                                          –            2,588,892
                                                                                          173,855,236            40,519,940


(b) Movements in fully paid shares
At 1 July 2010 (restated)                                                                 109,836,427            29,258,952


Issued                                                                                     59,678,809             9,086,811
Partly paid transfer                                                                          100,000                 64,000
Transaction costs                                                                                    –              (534,115)
At 30 June 2011                                                                           169,615,236            37,875,648

During	the	year	the	Company	raised	funds	from	equity	as	follows:
   $
•	 	 1,960,000	(2010:$2,893,000)	from	a	share	placement	of	14,000,000	(2010:14,563,062)	ordinary	fully	paid	shares.
   $
•	 	 5,780,311	from	a	rights	issue	of	41,278,809	ordinary	fully	paid	shares.
   $
•	 	 1,346,500	from	the	exercise	of	options	and	subsequent	issue	of	4,400,000	ordinary	fully	paid	shares.	



                                                                                                                               57
NOTES TO FINANCIAL STATEMENTS CONTINUED




8.	Contributed	equity	(continued)

                                                                                                        2011
                                                                                            Number
                                                                                           of shares                      $
(c) Movements in partly paid shares on issue
At 1 July 2009                                                                             4,340,000               56,400


At 1 July 2010                                                                             4,340,000               56,400
Calls received                                                                                      –              63,000
Fully paid shares transfer                                                                  (100,000)              (64,000)
Forfeited                                                                                 (4,240,000)              (55,400)
At 30 June 2011                                                                                     –                     –


(d) Movements in forfeited shares
At 1 July 2010                                                                                      –                     –
Forfeited partly paid                                                                      4,240,000               55,400
At 30 June 2011                                                                           4,240,000                55,400


(e) Movements in ordinary shares – employee shares
At 1 July 2010                                                                                      –           2,249,192
Share based payments transfer                                                                       –             339,700
At 30 June 2011                                                                                     –           2,588,892


(f) Capital management
Management’s prime objective when managing the Group’s capital is to ensure the entity continues as a going concern as
well as ensuring that funds expended provide shareholders with optimal returns. Other stakeholders benefit from this careful
management of capital. The capital structure is intended to provide the lowest cost of capital available to the Group
considering its present phase of operations.
Management	is	continually	reviewing	the	Group’s	equity	needs.	During	the	financial	year	the	entity	raised	$9,149,811	
(2010:$3,201,000) through share placement, rights issue and option exercise before costs of $534,115 (2010:$ 277 ,396).
The	Group	is	undertaking	an	aggressive	exploration	program	that	requires	a	significant	outlay	of	funds.	Management	
monitors this expenditure against the budget approved by the Board. Further funds receivable on 29 September 2011 of
$1.678 million from a share placement and a Share Purchase Plan for an estimated $3 million by 31 October 2011, ensuring
that the entity has a safety margin of funds available to continue with its desired level of operations. Refer to note 1.




58
                                                                                                       URANEX ANNUAL REPORT 2011




9. Reserves

                                                                                                                Consolidated
                                                                                          Consolidated             Restated
                                                                                                  2011                  2010
                                                                                                     $                     $
 (a) Reserves
 Foreign currency translation                                                                 3,826,285                882,378
 Equity-settled	employee	benefits                                                               672,598               339,700
                                                                                              4,498,883              1,222,078


(b) Nature and purpose of reserves
i) Foreign currency translation reserve
Exchange differences arising on translation of the foreign controlled entity are taken to the foreign currency translation
reserve, as described in note 1. The reserve is recognised in profit or loss when the net investment is disposed of.

ii) Equity-settled employee benefits reserve
The	equity-settled	employee	benefits	reserve	is	used	to	recognise	the	fair	value	of	partly	paid	shares	and	options	issued	to	
Directors and employees.


10. Statement of cash flows

                                                                                                                Consolidated
                                                                                          Consolidated             Restated
                                                                                                  2011                  2010
                                                                                                     $                     $
 (a) Reconciliation of the net loss after income tax to the net cash flows from
 operating activities
 Operating activities
 Net loss                                                                                    (11,103,431)          (10,230,585)
 Non cash items
 Depreciation of non current assets                                                              247,709               238,866
 Employee share based remuneration                                                              672,598                      -
 Net foreign currency translation gain (loss)                                                 2,844,148                630,207
 Changes in assets and liabilities
 (Increase)/decrease in trade and other receivables                                             (510,856)               49,262
 (Increase)/decrease in prepayments                                                               45,867                22,048
 Increase/(decrease) in trade and other payables                                                854,864                471,536
 Increase/(decrease) in provisions                                                              (150,004)               84,899
 Net cash outflow from operating activities                                                   (7,099,105)           (8,733,767)


 (b) Reconciliation of cash and cash equivalents
 Cash at bank
 Cash at bank and in hand                                                                        137,991               172,894
 Short term deposits                                                                          3,261,800             1,800,000
                                                                                              3,399,791              1,972,894




                                                                                                                                 59
NOTES TO FINANCIAL STATEMENTS CONTINUED




11. Interests in controlled entities
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance
with the accounting policy described in note 1:

                                                                                                      Equity Holding*
                                                                Country of      Class of               2011           2010
Name                                                            incorporation   shares                   %              %
Uranex (Tanzania) Ltd                                           Tanzania        Ordinary                100               100
Uranex	Mozambique	Limitada                                      Mozambique      Ordinary                100               100
Uranex ESIP Pty Ltd                                             Australia       Ordinary                100               100
Faru Resources Ltd                                              Tanzania        Ordinary                100               100
Juhudi Minerals Ltd                                             Tanzania        Ordinary                100               100
Investor Resources Services Pty Ltd                             Australia       Ordinary                100               100
Uranex Option Share Trust#                                      Australia       Ordinary                  –                  –

* percentage of voting power is in proportion to ownership.
# special purpose entity consolidated under AASB interpretation 112.




60
                                                                                            URANEX ANNUAL REPORT 2011




12. Commitments

                                                                                                 Consolidated
                                                                                         2011                   2010
                                                                                            $                      $
 (a) Exploration commitments
 The Group has certain commitments to meet minimum expenditure
 requirements	on	the	mineral	exploration	assets	in	which	it	has	an	interest.	
 Note 1 outlines the Group’s future funding options to meet its commitments.
 Outstanding exploration commitments are as follows:
 Not later than one year                                                             4,828,687            3,452,778
 Exploration expenditure commitments beyond twelve months cannot be
 reliably determined because the annual commitment is set at the
 anniversary date for each tenement.


 (b) Remuneration commitments
 Amounts disclosed as remuneration commitments include commitments arising
 from the service contracts of key management personnel referred to in note 18
 that are not recognised as liabilities and are not included in the key management
 personnel compensation.
 Not later than one year                                                              260,000               198,104
 Later than one year and no later than five years                                      65,000                      –
                                                                                      325,000               198,104


 (c) Leasing commitments
 Operating lease commitments – the Group as lessee
 The	Group	has	commercial	leases	on	commercial	property	and	equipment.	
 These leases now have an average life of between one and three years with
 renewal options included in the property leases. There are no restrictions placed
 upon the lessee by entering into these leases.
 Future minimum rentals payable under non-cancellable operating leases
 as at 30 June 2011 are as follows
 Within one year                                                                       177,778              277,125
 After one year but not more than five years                                          268,518               409,478
 Total minimum lease payment                                                          446,296               686,603



13. Contingent liabilities and contingent assets
There are no contingent liabilities or assets at 30 June 2011.




                                                                                                                       61
NOTES TO FINANCIAL STATEMENTS CONTINUED




14. Subsequent events
Significant events after reporting date are outlined in the Directors’ report and summarised below:
On 19 July 2011 the Company raised $1.526 million from the sale of 4,240,000 fully paid ordinary shares (previously
forfeited).
The Company announced on 23 August 2011 the signing of a Heads of Agreement to sell its Australian assets comprising
Thatcher Soak, Bremer Basin and Alligator Rivers projects to a Chinese investor for $20 million. A non-refundable deposit of
$500,000 has been received with settlement due within 90 days of the signing date subject to the purchaser completing due
diligence to its satisfaction, all parties gaining necessary regulatory approval including that of the Foreign Investment Review
Board and all necessary consents to transfer the assets.
At a General Meeting of members held on 26 August 2011, it was resolved that Uranex NL change its legal status from a
Company of No Liability to a Company Limited by shares, change the Company’s name to Uranex Limited and adopt a new
Constitution. The change of name becomes effective when gazetted by the Australian Securities and Investment
Commission, which is expected to occur in November 2011.
Also, at the meeting 6 million options were granted by members to the Directors of the Company at no cost. The terms
comprise; expiry date of 26 August 2014, exercise price of 63 cents for 3 million of the options and 84 cents for the
remainder, this represents a 50% and 100% respectively increase on the underlying share price.
On 29 September 2011, the Company completed a share placement of 4,793,715 fully paid ordinary shares raising
$1,677,800 from institutional investors and Patersons Securities Limited’s clients.
The Company announced on 29 September 2011 a capital raising by way of a Share Purchase Plan. The key terms of a share
offering to Australian registered members include the issue price of $0.35 per share, a ceiling of $15,000 per holding (subject
to scale back), minimum subscription of $500 and closing on 21 October 2011.
On 31 August 2011, IMX Resources Ltd (IMX), the Company’s largest shareholder, announced that it was distributing in
specie its shareholding in Uranex to its shareholders at the rate of 1 Uranex share for every 5.67 shares held in IMX.
No other matter or circumstance has arisen since 30 June 2011 which has significantly affected, or may significantly affect
the	operations	of	the	Group,	the	result	of	those	operations,	or	the	state	of	affairs	of	the	Group	in	subsequent	years.


15. Auditors’ remuneration
The auditor of Uranex NL in the current year is Ernst & Young.

                                                                                                   Consolidated
                                                                                                   2011                  2010
                                                                                                      $                     $
 (a) Amounts received or due and receivable by Ernst & Young
 (Australia) for:
 An audit or review of the financial report of the entity and any other entity in the          102,000                 75,100
 consolidated group
 Other services in relation of the entity and any other entity in the consolidated               20,000                       –
 group
                                                                                               122,000                 75,100


 (b) Amounts received or due and receivable by related practices of
 Ernst & Young (Australia) for:
 An audit or review of the financial report of other entities in the consolidated                38,083                10,781
 group
 Other services in relation of other entities in the consolidated group
 – Taxation compliance services                                                                   4,717                       –
                                                                                               164,800                 85,881




62
                                                                                                  URANEX ANNUAL REPORT 2011




16. Loss per share

                                                                                                           Consolidated
                                                                                     Consolidated            Restated
                                                                                              2011                  2010
                                                                                                 $                     $
(a) Reconciliation of earnings to profit or loss
Net loss
Loss used in calculating basic loss per share                                            11,103,431           10,230,585


                                                                                             Number of shares
                                                                                              2011                    2010
                                                                                                 $                       $
 (b) Weighted average number of ordinary shares outstanding during the
 year used in calculating basic loss per share
 Weighted average number of ordinary shares used in calculating
                                                                                        149,811,872          102,603,185
 basic loss per share


(c) Effect of dilutive securities
For the year ended 30 June 2011 and for the comparative period there are no dilutive ordinary shares because conversion of
share options and performance rights would decrease the loss per share and hence be non-dilutive.


17. Key management personnel

(a) Compensation for key management personnel

                                                                                                      Consolidated
                                                                                               2011                   2010
                                                                                                  $                      $


 Short term employee benefits                                                             1,223,664              886,445
 Termination benefits                                                                       115,850                       –
 Post-employee benefits                                                                      99,840                  66,654
 Share based payments                                                                       648,515                       –
 Total compensation                                                                       2,087,869              953,099




                                                                                                                              63
NOTES TO FINANCIAL STATEMENTS CONTINUED




  .
17 Key management personnel (continued)

(b) Option holdings of key management personnel


                                                    Balance at     Granted as
30 June 2011                                       1 July 2010   remuneration
J W Cottle                                        2,000,000              –
A E Daley                                          800,000               –
B Manzi                                            800,000               –
R G Udovenya                                       800,000               –
J C Jooste-Jacobs                                         –        500,000
M G Gauci                                                 –      2,000,000
S B Hunt                                                  –        500,000
M S Chalmers                                              –        500,000
F Poullas                                                 –        500,000
B J Borg                                                  –        250,000
S I Lawley                                                –        200,000
J M Nethersole                                            –        300,000
A	Querzoli                                                –        250,000
                                                  4,400,000      5,000,000



                                                    Balance at     Granted as
30 June 2010                                       1 July 2009   remuneration
J W Cottle                                        2,000,000              –
A E Daley                                          800,000               –
B Manzi                                            800,000               –
R G Udovenya                                       800,000               –
                                                  4,400,000              –




64
                                                                    URANEX ANNUAL REPORT 2011




                                              Vested at 30 June 2011
                  Balance at
    Exercised   30 June 2011          Total           Exercisable         Not Exercisable
(2,000,000)             –              –                     –                       –
 (800,000)              –              –                     –                       –
 (800,000)              –              –                     –                       –
 (800,000)              –              –                     –                       –
         –       500,000        500,000               500,000                        –
         –      2,000,000      2,000,000             2,000,000                       –
         –       500,000        500,000               500,000                        –
         –       500,000        500,000               500,000                        –
         –       500,000        500,000               500,000                        –
         –       250,000        250,000                250,000                       –
         –       200,000        200,000               200,000                        –
         –       300,000        300,000               300,000                        –
         –       250,000        250,000                250,000                       –
(4,400,000)     5,000,000      5,000,000             5,000,000                       –


                                              Vested at 30 June 2010
                  Balance at
    Exercised   30 June 2010          Total           Exercisable         Not Exercisable
         –      2,000,000      2,000,000             2,000,000                       –
         –       800,000        800,000               800,000                        –
         –       800,000        800,000               800,000                        –
         –       800,000        800,000               800,000                        –
         –      4,400,000      4,400,000             4,400,000                       –




                                                                                            65
NOTES TO FINANCIAL STATEMENTS CONTINUED




  .
17 Key management personnel (continued)

(c) Shareholdings of key management personnel (Consolidated)
(i) Fully paid shares

                                                             Balance                                              Net other                    Balance
                                                          1 July 2010                  Purchased                   changes                30 June 2011
30 June 2011                                                 Number                      Number                   Number *                    Number
Specified Directors:
J W Cottle*                                                     20,870                             –                  (20,870)                               –
A E Daley*                                                     140,870                             –                 (140,870)                               –
B Manzi*                                                        55,870                             –                  (55,870)                               –
R G Udovenya*                                                   39,870                             –                  (39,870)                               –
J C Jooste-Jacobs                                                       –                 130,000                             –                  130,000
M G Gauci                                                               –                 404,033                     374,000                    778,033
S B Hunt                                                                –                 100,000                             –                  100,000
F Poullas*                                                              –                  407,450                 1,153,350                  1,560,800
Total                                                          257,480                  1,041,483                  1,269,870                  2,568,833


                                                             Balance                                               Net other                   Balance
                                                          1 July 2009                  Purchased                    changes               30 June 2010
30 June 2010                                                 Number                      Number                    Number*                    Number
Specified Directors:
 T A Ward*                                                       50,000                     10,870                    (60,870)*                              –
 J W Cottle                                                      10,000                     10,870                             –                   20,870
 A E Daley                                                       80,000                     60,870                             –                 140,870
 B Manzi                                                         45,000                     10,870                             –                   55,870
 R G Udovenya                                                    29,000                     10,870                             –                   39,870
 Total                                                         214,000                     104,350                    (60,870)                    257,480

* The Directors, having either resigned or been appointed during the year, show a net other change to reduce their number of shares held or to acknowledge
  shares held before appointment to calculate their holding as directors at reporting date.




66
                                                                                               URANEX ANNUAL REPORT 2011




  .
17 Key management personnel (continued)

(d) Other transactions and balances with key management personnel and their related parties
Transactions with Directors’ related entities

                                                                                             Aggregate Amount
                                                                      Terms &
Identity of            Nature of                    Type of           Conditions of                 2011          2010
Related Party          Relationship                 Transaction       Transaction                      $             $

ResourcesLaw           R G Udovenya is a partner    Legal advice      Normal commercial       9,056           69,835
International          of the firm and was a                          terms
                       director of the parent
                       entity

Ward International     TA Ward is director of the   Consulting fees   Normal commercial              –        48,000
Consultants            firm and was a director of                     terms
Pty Ltd                the parent entity

Dalenier               A E Daley is a director of  Consulting fees    Normal commercial              –         27,938
Enterprises            the firm and was a director                    terms
Pty Ltd                of the parent entity

Frank Poullas          Director of parent entity    Consulting fees   Normal commercial       1,680                 –
                                                                      terms

Uranium                M S Chalmers is a director Consulting fees     Normal commercial       5,000                 –
Associates             of the firm an director of                     terms
Pty Ltd                parent entity

John Cottle            Former director of the       Termination       Normal rates           115,850                –
                       parent entity                benefits


Amounts recognised at the reporting date in relation to other transactions with key management personnel

                                                                                            2011                2010
                                                                                               $                   $
Assets and liabilities
Current liabilities
Trade and other payables                                                                   86,502             14,988
Total liabilities                                                                          86,502             14,988


Revenue and expenses
Legal                                                                                       9,056             69,835
Consulting fees                                                                             6,680             75,938
Termination benefits                                                                      115,850                   -
Total expenses                                                                            131,586            145,773




                                                                                                                        67
NOTES TO FINANCIAL STATEMENTS CONTINUED




18. Related party disclosures

Parent entity
Uranex NL is the ultimate Australian parent entity of the consolidated entity. Its interests in controlled entities are set out in
note 11.

Wholly owned group transactions
Controlled entities made payments and received funds on behalf of Uranex NL and other controlled entities by way of
inter-company loan accounts with each controlled entity. These loans are unsecured, bear no interest and are repayable on
demand. However, demand for repayment is not expected in the next twelve months.
Transactions and balances between the Company and its controlled entities were eliminated in the preparation and
consolidation of the financial statements of the group.

Key management personnel
Details relating to key management personnel, including remuneration paid, are included in note 17.

Transactions with related parties
All amounts payable to related parties are unsecured and at no interest cost.
The amount outstanding will be settled in cash. No guarantees have been given or received. No expense has been
recognised in the period for bad or doubtful debts in respect of the amounts owed by related parties.
The following table provides the total amount of transactions that were entered into with related parties for the relevant
financial year (for information regarding outstanding balances on related party trade receivables and payables at year-end,
refer to notes 4 and 7 respectively).

                                                                                                            Other transactions
                                                                                              Year          with related parties
Related party
Entities with significant influence over the Group:
IMX Resources Ltd – Service agreement and cost reimbursement                                  2011                              –
                                                                                              2010                              –

Entity with significant influence over the Group
IMX Resources Ltd owns 26.67% of the ordinary shares (fully diluted) in Uranex NL (2010:26.67%)




68
                                                                                                    URANEX ANNUAL REPORT 2011




19. Share-based payment plans

(a) Recognised share-based payment expenses
The expense recognised for employee services received during the year is shown below:

                                                                                                        Consolidated
                                                                                                 2011                   2010
                                                                                                    $                      $
 Expense	arising	from	equity-settled	share-based	payment	transactions                         672,598                      -
 Total expense arising from share-based payment transactions                                  672,598                      -

The share-based payment plans are described below.

(b) Types of share-based payment plans
Employee share option plan (ESOP)
Share options are granted to senior executives and directors. The ESOP is designed to align participants’ interests with those
                                                                                   ,
of shareholders by increasing the value of the Company’s shares. Under the ESOP the exercise price of the options is set by
the Board on the date of grant. The issue of options in respect to Directors ($488,450) was approved by members at the
annual general meeting held on 19 November 2010 and the balance of options issued to employees. Options issued in prior
periods expired during the financial year.
The life of options granted range between 3 and 5 years but those must be exercised within 3 months (except one grant was
for 6 months) of the option holder ceasing employment with Uranex NL. The options vest upon issue. There are no cash
settlement alternatives.

(c) Summaries of options granted under ESOP
The following table illustrates the number (No.) and weighted average exercise prices (WAEP) of, and movements in, share
options issued during the year.

                                                                  2011              2011             2010               2010
                                                                   No.             WAEP               No.              WAEP
Outstanding at the beginning of the year                   4,400,000                0.32       5,800,000                0.32
Granted during the year                                     5,150,000               0.30                 –                 –
Exercised during the year                                  (4,400,000)              0.32                 –                 –
Expired during the year                                              –                 –       (1,400,000)              0.32
Outstanding at the end of the year                         5,150,000                0.30       4,400,000                0.32


Exercisable at the end of the year                          5,150,000               0.30       4,400,000                0.32

The outstanding balance as at 30 June 2011 is represented by:
   2
•	 	 ,650,000	options	over	ordinary	shares	with	an	exercise	price	of	$0.20	each.
   6
•	 	 50,000	options	over	ordinary	shares	with	an	exercise	price	of	$0.25	each.
   7
•	 	 00,000	options	over	ordinary	shares	with	an	exercise	price	of	$0.31	each.
   5
•	 	 25,000	options	over	ordinary	shares	with	an	exercise	price	of	$0.5011	each.
   6
•	 	 25,000	options	over	ordinary	shares	with	an	exercise	price	of	$0.6013	each.
The range of the 2010 option balance prices was $0.30 to $0.34.
The weighted average share price at the date of exercise is $0.60

Weighted average remaining estimated life
The weighted average remaining estimated life for the share options outstanding as at 30 June 2011 is 3.92 years
(2010:10.69 years).


                                                                                                                               69
NOTES TO FINANCIAL STATEMENTS CONTINUED




19. Share-based payment plans (continued)

(d) Weighted average fair value
The weighted average fair value of options granted during the year was $0.2621 (2010:nil).

(e) Option pricing model: ESOP
Equity-settled transactions
The	fair	value	of	the	equity-settled	share	options	granted	under	the	ESOP	is	estimated	as	at	the	date	of	grant	using	a	
Binomial Model taking into account the terms and conditions upon which the options were granted.
The following table lists the inputs to the models used for the year ended 30 June 2011.

                                                                                                                            ESOP
                                                                                                                             2011
Dividend yield (%)                                                                                                              Nil
Expected volatility (%)                                                                                                         89
Risk-free interest rate (%)                                                                                                    4.9
Expected life of option (years)                                                                                                     4
Option exercise price (cents)                                                                                               20–61
Weighted average share price at measurement dates (cents)                                                                     42.4
Exercise price multiple                                                                                                             2
Model used                                                                                                                Binomial

The effects of early exercise have been incorporated into calculations by using an expected life for the option that is shorter
than the estimated life based on historical exercise behaviour, which is not necessarily indicative of exercise patterns that
may occur in the future. The expected volatility was determined using a historical sample of 48 month-end Company
share-prices. The resulting expected volatility therefore reflects the assumption that the historical volatility is indicative of
future trends which may also not necessarily be the actual outcome. The option holders were assumed to exercise prior to
expiry date when the price is twice that of the exercise price. This reflects the restrictions to trading of directors and
employees outlined in the Company’s share trading policy.
During	the	financial	year	the	UOST	acquired	and	was	issued	with	5,150,000	options	on	varying	terms	and	conditions	for	
allotment to Directors and Employees (refer to Remuneration Report for details). With respect to the Directors, 4,000,000
options were issued on 29 June 2011 on the same terms and conditions approved by members at the General Meeting held
on 19 November 2010, following the cancellation of the original options. The Directors had expected the UOST to be
operational at the time of the original issue and believe that it is the proper structure from which to hold performance-based
options granted by the Company.
The Company share price on the date of issue was $0.37 and the fair value of the options did not change for reporting
purposes.
Directors were granted 4,000,000 options by members of the Company at a meeting held on 19 November 2010. The
options were cancelled on 15 June 2011 and reissued on the same terms and conditions to the Uranex Option Share Trust.
Subsequently,	the	Uranex	Option	Share	Trust	issued	units	to	the	Directors	on	the	same	terms	and	conditions	as	the	Uranex	
options.
The	incremental	fair	value	is	NIL	owing	to	no	change	in	the	underlying	terms	and	conditions	of	equity	instruments.
Employees were granted 1,150,000 3 year options on 28 March 2011 with an exercise price range of $0.5011 to $0.6013.




70
                                                                                                    URANEX ANNUAL REPORT 2011




20. Segment information

Identification of reportable segments
The Group has identified its operating segments based on the internal reports that are reviewed and used by the executive
management team (chief operating decision maker) in assessing performance and in determining the allocation of resources.
The operating segments are identified by management based on the manner in which the exploration expenditure is
allocated to the geographical region. Discrete financial information about each of these operating segments is reported to the
executive management team on at least a monthly basis.
The reportable segments are based on aggregated operating segments determined by the exploration expenditure, as these
are the source of the Group’s major risks.

Accounting policies and inter-segment transactions
The accounting policies used by the Group in reporting segments internally are the same as those contained in note 1 of the
accounts.
It is the Group’s policy that if items of revenue and expense are not allocated to operating segments then any associated
assets and liabilities are also not allocated to segments. This is to avoid asymmetrical allocation within segments which
management believe would be inconsistent.

                                              Profit/(loss)           Segment            Profit/(loss)           Segment
                                               before tax              revenue            before tax              revenue
                                                       2011                2011        Restated 2010         Restated 2010
                                                          $                   $                      $                   $
Segment results and revenues
Segments
Australia                                      (9,695,864)              888,806            (3,608,336)             313,171
East Africa                                     (7,926,397)              95,238            (6,968,978)              79,393
Inter-segment elimination                       6,518,830               (96,000)             346,729                (68,000)
Consolidated                                  (11,103,431)              888,044           (10,230,585)             324,564


                                                    2011                    2011       Restated 2010         Restated 2010
                                                Segment               Segment              Segment               Segment
                                                  assets              liabilities             assets             liabilities
                                                       $                        $                  $                       $
Segment assets and liabilities
Segments
Australia                                       4,337,389               879,428            2,484,882               759,169
East Africa                                       745,465           21,561,461               991,129            16,802,282
Inter-segment elimination                          (11,226)         (20,184,914)              (35,108)          (15,807,431)
Consolidated                                    5,071,628             2,255,975            3,440,903             1,754,020




                                                                                                                               71
NOTES TO FINANCIAL STATEMENTS CONTINUED




21. Financial instruments, risk management objectives and policies
The Group’s principal financial instruments consist of short term deposits, receivables and payables. The fair value of the
financial assets and liabilities is approximated by the carrying value.
The key financial risks identified by the Group include interest rate and currency movements. The overall objective of the
Group’s financial risk management policies is to meet its financial targets whilst protecting future financial security.
The Board reviews and agrees on policies for managing these risks. Management is charged with implementing the policies.

Interest rate risk
The Group is exposed to movements in market interest rates on short-term deposits. Management ensures a balance is
maintained	between	the	liquidity	of	cash	assets	and	the	interest	rate	return.	Presently,	the	Group	has	no	interest	bearing	
liabilities.
At reporting date, the Group had the following financial assets and liabilities exposed mostly to Australian variable interest
rates and are unhedged.

                                                                                                           Consolidated
                                                                                                    2011                   2010
                                                                                                       $                      $
 Cash	and	cash	equivalents                                                                     3,399,791             1,972,894

The weighted average interest rate for the Group at reporting date was 5.08% (2010:4.37%)
In accordance with the Group policy of reviewing this risk, the following sensitivity analysis based on interest rate exposures
at	reporting	date	where	the	interest	rate	movement	varies	and	other	variables	remain	constant,	post	tax	loss	and	equity	
would have been affected as shown. The analysis has been performed on the same basis for both 2011 and 2010.

                                                               Interest Rate Risk                    Interest Rate Risk
                                                                      –1%                                   +1%
                                           Carrying          Net Loss           Equity             Net Loss           Equity
                                           Amount                   $                $                    $                $
                                                  $
30 June 2011
Consolidated Entity
Financial asset
Cash	and	cash	equivalents                 3,399,791            (33,998)           (33,998)           33,998               33,998


30 June 2010
Consolidated Entity
Financial asset
Cash	and	cash	equivalents                 1,972,894            (19,729)           (19,729)           19,729               19,729

The movements in losses are due to higher/lower interest receivable from cash balances. The sensitivity is higher in 2011
than 2010 because funds have been raised during the year resulting in higher cash balances. The analysis assumes the
carrying amounts noted will be maintained over the next financial year.

Credit risk exposures
The Group has no significant concentrations of credit risk. The maximum exposure to credit risk at reporting date is the
carrying amount (net of provision of doubtful debts) of those assets as disclosed in the statement of financial position and
notes to the financial statements.
As the Group does not presently have any lending or any other credit risk and low level of debtors, a formal credit risk
management policy is not maintained nor a sensitivity analysis prepared.




72
                                                                                                         URANEX ANNUAL REPORT 2011




21. Financial instruments, risk management objectives and policies (continued)

Foreign currency risk
The Group is exposed to fluctuations in foreign currencies arising from transactions including exploration commitments in
currencies other than Australian dollars, the Group’s presentation currency.
The Group operates internationally and is exposed to foreign exchange risk arising from currency exposures to the United
States dollar and to the Tanzanian shilling.
The Group has not formalised a foreign currency risk management policy as it has not found a derivative or hedge instrument
that would cost effectively mitigate the risk.
The net financial assets and liabilities denominated in currencies other than the functional currency of each entity in the
Group at reporting date were immaterial at reporting date.

Liquidity risk
Liquidity	risk	arises	from	the	financial	liabilities	of	the	Group	and	the	Group’s	subsequent	ability	to	meet	their	obligations	to	
repay their financial liabilities as and when they fall due.
The Group’s objective is to maintain a balance between continuity of funding and flexibility as to its source.
The	Group’s	policy	is	that	its	liquidity	safety	margin	should	exceed	$2	million.	At	reporting	date	the	Group	had	a	surplus	of	
$1,399,791 over this margin
The table below reflects all contractually fixed pay-offs, repayments and interest from recognised financial liabilities. For
these obligations the undiscounted cash flows for the respective upcoming financial years are presented. Cash flows for
financial assets and liabilities without fixed timing or amount are based on the conditions existing at 30 June 2011.
The remaining contractual maturities of the Group entity’s financial liabilities consisting of trade and other payables are:

                                                                                                                  Consolidated
                                                                                            Consolidated             Restated
                                                                                                    2011                  2010
                                                                                                       $                     $
 6 months or less                                                                               2,031,489              1,396,003
 12 months or less                                                                                 55,936                 39,463
                                                                                                 2,087,425             1,435,466



22. Employee entitlements and superannuation commitments

Superannuation commitments
The Group contributes to superannuation for employees in accordance with the government superannuation guarantee
legislation. Neither the company nor the Group have any obligation to meet any shortfall in the superannuation funds
obligations to provide benefits to employees on retirement.




                                                                                                                                     73
NOTES TO FINANCIAL STATEMENTS CONTINUED




23. Parent entity information

                                                                                                Restated
                                                                                     2011           2010
                                                                                        $              $
(a) Statement of financial position
Assets
Current assets                                                                  3,973,822      2,073,660
Non-current assets                                                                352,343      6,788,602
Total assets                                                                    4,326,165      8,862,262


Liabilities
Current liabilities                                                               728,820        496,037
Non-current liabilities                                                           132,072        220,818
Total liabilities                                                                 860,892        716,855


Equity
Issued capital                                                                 41,770,838     32,010,842
Accumulated losses                                                             (38,978,163)   (24,205,135)
Reserves                                                                          672,598        339,700
Total	equity                                                                    3,465,273      8,145,407


(b) Statement of comprehensive income
Loss for the year                                                               (9,710,545)    (3,968,727)
Other comprehensive income                                                               –              –
Total comprehensive income                                                      (9,710,545)    (3,968,727)


The Parent has certain commitments to meet minimum expenditure
requirements	on	the	mineral	exploration	assets	in	which	it	has	an	interest.	
Note 1 outlines the future funding options to meet its commitments.
Outstanding exploration commitments are as follows:
Not later than one year                                                           912,348        275,754




74
                                                                                                      URANEX ANNUAL REPORT 2011




Directors’ Declaration


In accordance with a resolution of the Directors of Uranex NL, I state that:
in the opinion of the Directors:
(a) the financial statements, notes and the additional disclosures included in the Director’s report designated as audited,
    of the consolidated entity are in accordance with the Corporations Act 2001, including:
   (i) giving a true and fair view of the consolidated entity’s financial position as at 30 June 2011 and their performance
       for the financial year ended on that date; and
   (ii) complying with accounting standards and Corporations Regulations 2001; and
   (iii) complying with International Financial Reporting Standards; and
(b) there are reasonable grounds to believe that the Company, as noted by Directors in Note 1 – Going concern, will be able
    to pay its debts as and when they become due and payable; and
This	declaration	has	been	made	after	receiving	the	declarations	required	to	be	made	to	the	Directors	in	accordance	with	
section 295A of the Corporations Act 2001 for the financial year ended 30 June 2011.


On behalf of the board




M G Gauci
Managing Director
Melbourne, 30 September 2011




                                                                                                                              75
INDEPENDENT AUDITOR’S REPORT




Independent Auditor’s Report




76
URANEX ANNUAL REPORT 2011




                      77
ADDITIONAL SHAREHOLDER INFORMATION




Additional Shareholder Information


Additional	information	required	by	the	Australian	Securities	Exchange	Ltd	and	not	shown	elsewhere	in	this	report	is	as	
follows. The information is current as at 21 September 2011.

(a) Distribution of equity securities
The numbers of shareholders, by size of holding, in each class of share are:

                                                                                              Ordinary Shares
                                                                                          Number of         Number of
                                                                                            holders            shares
1 – 1,000                                                                                     143,015                     246
1,001 – 5,000                                                                              2,709,469                      903
5,001 – 10,000                                                                             4,976,259                      603
10,001 – 100,000                                                                          32.341.442                 1,057
100,001 and over                                                                         133,685,051                      156
                                                                                         173,855,236                 2,965
The number of shareholders holding less than a marketable parcel of shares are:              220,764                      313


(b) Twenty largest shareholders
The	names	of	the	twenty	largest	holders	of	quoted	shares	are:

Name                                                                                      Number of         % of Ordinary
                                                                                            Shares                Shares
IMX RESOURCES LTD                                                                         24,269,623                 13.96
CONTINENTAL NICKEL NL                                                                     22,007,827                 12.66
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED – A/C 3                                         11,080,503                      6.37
NATIONAL NOMINEES LIMITED                                                                 10,192,186                      5.86
J P MORGAN NOMINEES AUSTRALIA LIMITED                                                      8,461,489                      4.87
CITICORP NOMINEES PTY LIMITED                                                              3,515,382                      2.02
J P MORGAN NOMINEES AUSTRALIA LIMITED                                                      2,856,157                      1.64
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED                                                  2,661,130                      1.53
CITICORP NOMINEES PTY LIMITED                                                               2,327,752                     1.34
MR MATTHEW JOHN BOYSEN                                                                     1,459,000                      0.84
MR MARK ANTHONY O’SULLIVAN                                                                 1,428,987                      0.82
MR FRANK POULLAS                                                                            1,377,667                     0.79
MR KOJIRO HONDA                                                                            1,306,667                      0.75
S P ANDREWS & CO PTY LTD                                                                   1,306,484                      0.75
MR PETER SARANTZOUKLIS                                                                      1,170,146                     0.67
MR TRAVIS PELUSO                                                                           1,130,000                      0.65
MR JURGEN BEHRENS                                                                          1,100,000                      0.63
MRS ESTHER POULLAS                                                                           858,098                      0.49
MACROCON PTY LTD                                                                             842,833                      0.48
MS BIANCA MANZI                                                                              820,000                      0.47
                                                                                         100,171,931                  57.59


78
                                                                                               URANEX ANNUAL REPORT 2011




(c) Substantial shareholders
The names of substantial shareholders who have notified the Company in accordance with section 671B of the Corporations
Act 2001 are:

                                                                              Fully Paid Number           Percentage
                                                                                       of Shares                  %
Acorn Capital Limited                                                          16,141,663                        9.28
CQS	Asset	Management	Limited                                                   15,604,013                        8.97
IMX Resources Limited                                                          46,305,411                       26.63


(d) Voting rights
All ordinary shares carry one vote per share without restriction.

(e) Stock Exchange Listing
Uranex NL is listed on the Australian Stock Exchange. The Company’s ASX code is UNX

(f) Schedule of mining tenements

                                                                                                   Group Ownership
Tenement Number                         Tenement Name                   Locality                                %
E63/1021                                Bremer Basin                    Western Australia                         100
E63/1020                                Bremer Basin                    Western Australia                         100
E74/370                                 Bremer Basin                    Western Australia                         100
E74/371                                 Bremer Basin                    Western Australia                         100
E74/372                                 Bremer Basin                    Western Australia                         100
E74/373                                 Bremer Basin                    Western Australia                         100
E74/374                                 Bremer Basin                    Western Australia                         100
E74/375                                 Bremer Basin                    Western Australia                         100
E74/429                                 Bremer Basin                    Western Australia                         100
E74/453                                 Bremer Basin                    Western Australia                         100
E74/463                                 Bremer Basin                    Western Australia                         100
E38/1732                                Thatcher Soak                   Western Australia                         100
P38/3298                                Thatcher Soak                   Western Australia                         100
E38/1854                                Thatcher Soak                   Western Australia                         100
EL25164                                 Alligator Rivers                Northern Territory                        100
EL25165                                 Alligator Rivers                Northern Territory                        100
PL 5568/2008                            Bahi                            Tanzania                                  100
PL 6642/2010                            Bahi                            Tanzania                                  100
PL 6649/2010                            Bahi                            Tanzania                                  100
PL 6944/2011                            Bahi                            Tanzania                                  100
PL5830/09                               Manyoni                         Tanzania                                  100
PL5834/09                               Manyoni                         Tanzania                                  100
PL5833/09                               Manyoni                         Tanzania                                  100
PL5832/09                               Manyoni                         Tanzania                                  100
PLR 6576/2010                           Manyoni                         Tanzania                                  100
PLR 5997/09                             Manyoni                         Tanzania                                  100
PLR 5963/09                             Manyoni                         Tanzania                                  100
PL6425/10                               Mkuju                           Tanzania                                  100



                                                                                                                        79
ADDITIONAL SHAREHOLDER INFORMATION CONTINUED




                                                                Group Ownership
Tenement Number                     Tenement Name    Locality                %
PL5726/09                           Mkuju            Tanzania               100
PL5548/08                           Mkuju            Tanzania               100
PL5564/08                           Mkuju            Tanzania               100
PL5550/08                           Mkuju            Tanzania               100
PL5705/09                           Mkuju            Tanzania               100
PL5183/09                           Mkuju            Tanzania               100
PL6312/10                           Mkuju            Tanzania               100
PL5998/09                           Mkuju            Tanzania               100
PLR 5183/09                         Mkuju            Tanzania               100
PLR 6646/10                         Mkuju            Tanzania               100
PLR 6648/10                         Mkuju            Tanzania               100
PLR5339/08                          Makonde          Tanzania               100
PL6404/10                           Makonde          Tanzania               100
PL6302/09                           Makonde          Tanzania               100
PL5709/09                           Kwa Mtoro        Tanzania               100
PL6259/09                           Songea           Tanzania               100
PL6313/10                           Songea           Tanzania               100
PL6314/10                           Songea           Tanzania               100
PL5999/09                           Songea           Tanzania               100
PL 6518/2010                        Songea           Tanzania               100
PL 6572/2010                        Songea           Tanzania               100
PL 6943/2011                        Songea           Tanzania               100
PL 6945/2011                        Songea           Tanzania               100
PL 6946/2011                        Songea           Tanzania               100
PLR 6615/2010                       Songea           Tanzania               100
PLR 6640/2010                       Songea           Tanzania               100
PLR 6647/2010                       Songea           Tanzania               100
PL6311/10                           Mkalama          Tanzania               100
PL 6302/2010                        Newala           Tanzania               100
PL 6615/2010                        Mtama/Ruangwa    Tanzania               100
PL 6404/2010                        Rutamba          Tanzania               100
PL 6516/2010                        Kandanga         Tanzania               100
PLR 6645/2010                       Punda            Tanzania               100
PL 5709/2009                        Tembo            Tanzania               100
PL 6942/2011                        Mkalama          Tanzania               100
PLR 6641/2010                       Kitangiri West   Tanzania               100




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