Laramide Resources Ltd. and Energy Fuels Inc. announce that they have entered into a toll milling agreement, whereby Energy Fuels' White Mesa Mill will process all material produced from Laramide's 100% owned and operated La Sal II Uranium Mine Project in Utah. The agreement has a two-year term with an optional three-year extension and commences in January 2013. Under the terms of the agreement, Laramide will transport material produced at La Sal II to Energy Fuels' nearby White Mesa Mill for processing of up to 20,000 tons during the test phase.

Laramide will pay to Energy Fuels the costs to mill its ore, a capital charge plus a toll milling fee per ton of ore, which will be partly linked to the long-term uranium price. Laramide's agreement with Energy Fuels accommodates additional ore production once La Sal II is permitted for full production. Energy Fuels will use samples from Laramide's bulk sample program to confirm metallurgical and mill compatibility and then process the 20,000 tons.

The fully permitted bulk sample program allows Laramide to commence underground development activities, and with positive results, would allow for a commercial production decision at La Sal II. The total tonnage will be negotiated at the completion of each 12 months production period for the subsequent full production year, dependent on mill availability. Laramide has commenced a number of on-site programs at La Sal II and an operational update will be provided shortly.

The La Sal II Uranium Project is located in the Lisbon Valley Uranium District in San Juan County, Utah and was previously permitted and developed by Homestake. A ventilation raise at site and 1,200 metre access drive was completed by Homestake Mining Company in the early 1980s when Homestake delivered an estimated 46,000 tons of uranium ore to off-site mills. La Sal is located approximately 55 miles from Energy Fuels' White Mesa Mill in Blanding, Utah.