Preliminary Economic Assessment

The Preliminary Economic Assessment (PEA) is the first of many steps which have to be taken prior to making a decision to undertake the Michelin Project. Next, a Pre-feasibility study would be completed, followed by a Detailed Feasibility Study. At the same time, an Environmental Assessment would be carried out.

More information on the PEA can be found in the September 8, 2009 news release, “Fronteer Reports Positive Preliminary Economic Assessment for Michelin Uranium Project”

Highlights

• Processing: 10,000 tonnes of mineralization per day
• Production: 5.7 million pounds U3O8 per year (average)
• Just over 17 year mine life, with potential for growth
• Average cash costs US $28.57/lb U3O8

The PEA also demonstrated the Michelin Project's economics across a range of reasonable uranium price scenarios: