Strathmore investor presentation june 2012

Strathmore Minerals Corp
Corporate Update
Dahlman Rose Uranium Forum
New York

June 5, 2012

1
www.strathmoreminerals.com TSX: STM

The following information may contain forward-looking statements. Forward- looking statements
address future events and conditions and therefore involve inherent risks and uncertainties. Actual
results may differ materially from those currently anticipated in such statements. Forward-looking
information is subject to known and unknown risks, uncertainties and other factors that may cause
Strathmore's actual results, level of activity, performance or achievements to be materially different
from those expressed or implied by such forward-looking information. Such factors include, but are not
limited to: uncertainties related to the historical resource estimates, the work expenditure
commitments; the ability to raise sufficient capital to fund future exploration or development programs;
changes in economic conditions or financial markets; changes in input prices; litigation; legislative,
environmental and other judicial, regulatory, political and competitive developments; technological or
operational difficulties or an inability to obtain permits required in connection with maintaining, or
advancing, the Roca Honda and Gas Hills projects; and labour relations matters.

All historical resource estimates were completed prior to the implementation of NI 43-101
and a qualified person has not completed sufficient work to classify the historic mineral
resources as current mineral resources, and is not treating the historic resources as
current. Hence, they should not be relied upon. Technical information has been prepared in
accordance with the Canadian regulatory requirements set out in NI 43-101, and reviewed by
David Miller, Chief Executive Officer for Strathmore Minerals Corp., PG 363 Wyoming and
Society for Mining, Metallurgy & Exploration Registered Member 2205106RM, a Qualified
Person under National Instrument 43-101. It should be noted that mineral resources which
are not mineral reserves do not have demonstrated economic viability as defined by NI 43-
101 guidelines.

2

SHARE STRUCTURE

SHARE PROFILE
Stock Symbol: STM (TSX)
STHJF (OTCQX)
Working Capital Estimate: C $18.5 MM

123,274,621 shares outstanding

134,494,954 shares fully diluted

Korea Electric Power Corp (KEPCO) owns ~11.8%
3

Uranium Market

Current Spot
Price (May 28)

US $52.00/lb

Long-Term
Price (May)

US $61.50/lb

Source: The Ux Consulting Company LLC : www.uxc.com

“According to Ux Consulting, there is an increasing sense among utilities that the spot
uranium price has likely bottomed...” Greg Barnes, TD Securities (April, 2012)

Uranium price forecast: 2012 - US $58, 2013 - US $70 , 2014 - US $85
Mark Busuttil, JP Morgan (April 2012)

China, India, & South Korea constructing 37 nuclear power plants; 234 planned
China, India, & South Korea all net importers of uranium
4

Management Team & Directors
David Miller, PG (Wyoming) - CEO, Director
Steven Khan, MBA, CFA - Chairman, President, Director
John DeJoia, PG (New Mexico) - Sr. V.P. New Mexico Operations
Juan Velasquez, MBA - V.P. Gov’t, Regulatory & Environmental Affairs
James Crouch, BSc. - V.P. Wyoming Operations
Dieter Krewedl, Independent Director-Renaissance Gold, AuEx Ventures
Tim Janke, Independent Director-Renaissance Gold, AuEx Ventures
Ralph Goehring, Independent Director - Former CFO Berry Petroleum
5

Corporate Strategy
To become a leading uranium
producer in the United States
Active in the 2 largest uranium districts in the USA
Gas Hills Uranium District – Wyoming
> 100 million lbs. cumulative uranium production
Grants Mineral District – New Mexico
> 340 million lbs. cumulative uranium production

6

Why are we different?
• Timely Acquisitions
Properties acquired 2003-04 when uranium price US $7-$15 per lb
One of the largest holders of in-ground uranium resources in the USA
• Strong Management & Technical Expertise
200+ Man-years of uranium and gold experience
• Advanced Company Maker Projects
• Roca Honda, NM mine permit decision expected in 2013
• Gas Hills, WY mine permit application submittal in 2012
• Copper King, WY Au-Cu NI 43-101 under preparation
• Long-life mineral assets in politically stable region
7

Recent Developments: KEPCO Agreement

• Korea Electric Power (KEPCO) acquired ~11.8% interest in STM via
US $8 MM Private Placement at C$ .55 per share

• Proceeds for 2012 Phase I program: Drilling at prospective Beaver
Rim & ongoing permitting and drilling of Main Gas Hills deposits

• KEPCO has option for Phase II US $32 MM Gas Hills Joint Venture
over 3 years beginning in 2013

• Transaction provides for long-term off-take agreements based on
KEPCO’s equity ownership in STM and Gas Hills

8

Recent Developments:
Saratoga Gold Acquisition
• Acquired Saratoga Gold Copper King Au-Cu project located
in Wyoming near the Company’s base of operations

Copper King Historical Resource Estimate (Not NI 43-101 Compliant)

Copper King Tonnage Au Grade Au Grade Total Oz Cu Grade Total Cu lbs
Resource
Cutoff 0.010 oz/ton 46,291,000 0.019 oz/t 0.53 g/t 866,000 0.17% 153,008,000

• Preparation of NI 43-101 technical report & resource estimate
underway

9

Why the United States ?
60 United States Uranium Production and
Consumption 1980/2010

50

40

30

20

10
Production Consumption Production Consumption

Millions lbs U3O8 1980 2010

United States was the largest uranium producer in the world in the 20th century

104 nuclear power plants consume 50-55 MM lbs annually; USA produced 4.2 million lbs (2010)

Russian HEU contract expires in 2013; DOE sales contracted to 2013

Strathmore’s technical team has over 200 years uranium mining experience in the United States
10

Where Did it Come From?
US Production: Where was it Mined?
Tonnes U
Pounds U3O8

400,000,000 New Mexico 150,000

300,000,000
Wyoming 100,000

200,000,000
Utah Colorado 50,000
100,000,000 Texas
Arizona
0 Nebraska

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Largest Uranium Reserves In Wyoming & New Mexico

12

Copper
Mountain Kaycee

Gas Hills

Jeep

Sky -
(Cedar
Rim)
Shirley
Basin
Juniper
Ridge

Nose Rock

Church Rock

Dalton Pass

Roca Honda
Ambrosia Lake
Leases Marquez

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45.3 Million M&I NI 43-101 lbs U3O8
26.3 Million Inferred 43-101 lbs U308
Property Resource Grade lbs. U3O8 Method
Roca Honda, NM Measured 1.3 MM @ 0.23% 6.0 million Underground
Indicated 2.4 MM @ 0.23% 11.5 million
M&I 3.7 MM @ 0.23% 17.5 million
Inferred 4.5 MM @ 0.17% 15.8 million

Church Rock, NM Measured 1.7 MM @ 0.10% 3.2 million ISR / Underground
M&I 6.2 MM @ 0.10% 11.8 million

Marquez, NM Measured 1.0 MM @ 0.13% 2.5 million ISR or Underground
M&I 3.6 MM @ 0.13% 9.1 million

Nose Rock, NM Measured 0.31 MM @ 0.15% 0.9 million Underground
M&I 0.88 MM @ 0.15% 2.5 million

Dalton Pass, NM Measured 0.45 MM @ 0.09% 0.8 million ISR / Underground
M&I 1.6 MM @ 0.10% 3.0 million

Sky, WY Indicated 0.66 MM @ 0.07% 0.9 million ISR
Measured 0.22 MM @ 0.08% 0.4 million
Jeep, WY Indicated 0.08 MM @ 0.06% 0.1 million
M&I 0.31 MM @ 0.07% 0.5 million
Inferred 0.15 MM @ 0.05% 0.15 million 14

Permitting for Production
Roca Honda, New Mexico
Mine Permit Review Underway

15

GRANTS MINERAL BELT
New Mexico
Largest Uranium District in the U.S.
340 Million pounds produced

WY
UT
CO
NM

16

Grants Mineral District
• Largest historical uranium producing district in the
world > 340 million lbs - Only recently surpassed by the
Athabasca Basin

• Many uranium companies active in New Mexico

• Strong local government and community support

• State regulatory agencies cooperative

17

Roca Honda Resources LLC Joint Venture
(Strathmore 60% / Sumitomo 40%)

“Company Maker” Project - One of the Largest & Highest Grade proposed
uranium mines in US in over 30 years

Roca Honda Resource Summary

Previous Operator Resource Classification Tonnage Grade % U308 lbs U308
NI 43-101 Measured 1,305,000 0.23 6,035,000
Kerr McGee NI 43-101 Indicated 2,477,000 0.23 11,477,000
NI 43-101 M + I 3,782,000 0.23 17,512,000
NI 43-101 Inferred 4,546,000 0.17 15,832,000

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Roca Honda Mine Permit Submitted Oct 2009

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• Mine Development office opened in Santa Fe, 2005

• Mine Permit application submitted & deemed
“Administratively Complete” Q4 2009

• Preliminary Economic Assessment (PEA) prepared by
Roscoe Postle Associates Inc under internal review

• Environmental Impact Statement (EIS) to be completed by
Q4 2012; Mine Permit decision expected in 2013

• Sumitomo to contribute ~ US $50 million on final
investment decision to complete 40% earn-in
20


New Mineralized Zone found in monitor well.
Monitor Well Drilling and Installation Chemical Analysis 10’ grading 0.67% U308
6’ grading 0.73% U308

21

Permitting for Production
GAS HILLS, WYOMING
Mine Permit Application Submittal in 2012

22

GAS HILLS URANIUM DISTRICT
WYOMING

WY
GAS HILLS

NM
URANIUM DISTRICT
100 Million pounds produced
NO INFRASTRUCTURE ISSUES

• Paved Road (45 miles)
• Big Electric Power installed
• Natural Gas available
• Geothermal available
23

GAS HILLS URANIUM DISTRICT
• 2nd largest historical producing district in the USA

• CEO David Miller & Technical Team have extensive Gas Hills
experience

• Largest in-ground resources held by Strathmore & Cameco

• Highly prospective 16,000 acre Beaver Rim area to the south of
Main Gas Hills open pit deposits

• Existing infrastructure: roads, power & natural gas

• Sweetwater Mill located 70 miles from the property
24

Gas Hills Uranium Development Project
(Strathmore 100% / KEPCO 40% earn-in)
• US $8 MM budgeted for drilling at prospective Beaver Rim &
ongoing permitting & drilling of Main Gas Hills deposits in 2012

• KEPCO can earn 15% by spending US $12 million in 2013

• KEPCO can earn to 27.5% by spending US $10 million in 2014

• KEPCO can earn to 40% by spending US $10 million in 2015

• KEPCO entitled to production off-take based on project ownership

25

Gas Hills, Wyoming

STM Holdings - 35,000 acres

Unmined
Uranium Roll-Front
Deposit

Historical estimate 10.8 MM tons @ 0.08% U308
Total - 16.2 million lbs (Not NI 43-101 Compliant)
Near surface open pit production

26

Gas Hills Properties, Wyoming
Deposit Resource Tonnage Grade lbs. U3O8 Method

George-Ver Historical 1.0 million 0.07% 1.5 million Open Pit

Bull Rush Historical 1.7 million 0.07% 2.3 million Open Pit

Loco Lee Historical 3.4 million 0.07% 4.7 million Open Pit

Frazier Lamac Historical 0.7 million 0.11% 1.5 million Open Pit

Day Loma Historical 0.5 million 0.21% 2.0 million Open Pit

Rock Hill Historical 0.9 million 0.05 % .90 million Open Pit

Andria Historical 0.8 million 0.06% .95 million Open Pit
Sunset, Amazon, Historical 1.8 million 0.06% 2.4 million Open Pit
Badlands

Not NI 43-101
Compliant Total 10.8 0.08% 16.2 million Open Pit 27

CAMECO PROPERTY
STRATHMORE PROPERTY

Cameco Drill Rigs Operating Near
Strathmore’s Beaver Rim Property, Gas Hills,
September, 2011
29
www.strathmoreminerals.com TSX:STM

Production Plans
2011 2012 2013 2014 2015 2016 2017 2018
Roca Honda, NM

Underground Mine

Mine

Mill

Gas Hills, WY Permitting Construction Production

Mine Open Pit

Mill

SUBJECT TO PERMITTING AND URANIUM MARKET
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Non-Core Property Dispositions

• Closed Pine Tree-Reno Creek WY sale in 2010 to Bayswater Uranium for
US $30 million value; US $17.5 MM cash & US $2.5 MM shares

• Strathmore retains 5% gross revenue royalty valued at US $10 million

• Strathmore holds up to 4% gross revenue royalty on WY leases sold to
Peninsula Energy Q4 2009; “Lance” project – 2012 production targeted

• Juniper Ridge WY phased sale to Crosshair Energy Q4 2010; Crosshair
spent $1.9 MM in 2011; Initial NI 43-101 compliant resource estimate
completed Jan 2012; Strathmore holds 2% gross revenue royalty

• Eight additional projects available for sale or joint venture
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Strathmore Uranium Projects
Currently For Sale or Joint Venture
Significant exploration and development potential
Property Summary reports available from davidmiller@wyoming.com

• NM: Marquez: 43-101 (3.6 MM tons @ 0.126% = 9.1 million lbs M&I*) - 80 % unexplored
• NM: Church Rock: 43-101 (6.2 MM tons@ 0.10% = 11.8 million lbs M&I*) (ISR)
• NM: Nose Rock: 43-101 (.9 MM tons @ 0.14% = 2.6 million lbs M&I*) & Historical Resource
• NM: Dalton Pass: 43-101 (1.6 MM tons@ 0.10% = 3 million lbs M&I*)
SOLD
• WY: Juniper Ridge: (5.2 MM tons@ 0.067% = 7 million lbs Historical (Not 43-101 compliant)
SOLD
• WY: Pine Tree-Reno Creek Sold for US $30 million value cash/stock/royalties
• WY: Kaycee: Exploration potential
• WY: Copper Mountain: Historical Resource & Exploration Potential
• WY: Ketchum Buttes: Historical Resource & Exploration Potential
• WY: Sky: 43-101 (.6 MM tons @ 0.07% = 1 million lbs M&I*) & Exploration Potential (ISR)
• WY: Shirley Basin: Historical Resource & Exploration Potential
SOLD
• WY: Oshoto State Leases: Exploration Potential
*See www.strathmoreminerals.com/s/ResourceTable.asp for detailed property resource summaries, including total Measured, total Indicated, & total Measured + Indicated resources.
32

Plans for 2012
• Complete US $8 MM Gas Hills drilling and permitting program
• Submit Mine Permit Application for Gas Hills
• Complete Roca Honda Preliminary Economic Assessment (PEA)
• Complete Roca Honda Feasibility Study; Complete Environmental
Impact Statement (EIS); Mine Permit decision expected in 2013
• Submit Peña Ranch NRC Mill license application
• Continue to Monetize non-core Properties
• Prepare NI 43-101 technical report & resource estimate for Copper
King Au-Cu project & initiate project development plans

33

Why Invest in Strathmore?
1. Strathmore Knows Mining
Management team has extensive mining experience in both yellow metals
Advancing two core uranium projects; significant local gold project acquired

2. Partnered with Sumitomo & KEPCO
Roca Honda one of the largest and highest grade proposed uranium mines in the
USA in over 30 years. Strategic investment made by KEPCO with 11.8% stake

3. Large Uranium Asset Base-Non-Core Being Monetized
Leverage to higher uranium prices – Little or no valuation given to gold project

34

•David R. Miller, PG (Wyoming) - CEO, Director, •Steven Khan, MBA, CFA - Chairman, President,
Strathmore Minerals Corp. Director, Strathmore Minerals Corp.

David's primary professional focus has been on Steven Khan has spent close to twenty years in all
uranium exploration, development, and mining, and aspects of the investment industry, including retail,
his career has spanned over 20 years with a chain and later institutional sales, corporate finance,
of companies that started with Utah International capital markets, and investment banking. He has
and evolved into AREVA, the French Nuclear held several senior management roles including:
Power Conglomerate. In addition he has consulted Executive Vice-President, President, Chief
extensively for the IAEA (International Atomic Executive Officer, and Chairman of a number of
Energy Commission) in Austria and China. David is regional and national full service Canadian
a recognized expert in the nuclear and energy field investment brokerage houses that mostly focused
and has been seen, heard, and read in the New on venture capital financings. In 2003, he started his
York Times, BBC, CNBC, CNN, Business News own consulting firm that focused on business plan
Network, Wall Street Journal, Globe and Mail, and development and capital fund raising for a number
Barron's. He is also a co-author of "Investing in the of early stage private and public companies. In the
Great Uranium Bull Market." A fifth term member of past several years, Mr. Khan has successfully
the Wyoming Legislature, serving District 55 -- initiated, completed or partnered several major
Riverton, David has served on Minerals, Revenue, corporate development initiatives both domestically
Education, Corporations, and Health & Labor and internationally, including government partnered
Committees. He was an original appointee to the ventures in China and Korea. Mr. Khan was also an
Wyoming Energy Commission and currently serves instrumental part of the team that negotiated
on the NCSL High Level Radioactive Waste Strathmore's Roca Honda Joint Venture with
Committee. David graduated from the University of Sumitomo Corp of Japan in 2007. In January 2008,
Missouri with a degree in Geology and is a after serving as Executive Vice-President since
Registered Professional Geologist in Wyoming. Mr. 2003, Mr. Khan accepted the position of President
Miller is the architect responsible for assembling of Strathmore Minerals Corp. A graduate of the
Strathmore's uranium property acquisitions in 1997, University of British Columbia with a BSc. (1978)
renewing it in 2003, when the uranium price turned and MBA (1983), Mr. Khan also holds a Chartered
upward, and subsequently implementing the Financial Analyst designation (CFA), is a member of
Company's current development strategy. He was the CFA Institute, and for many years was a long-
appointed President in 2004 and CEO in 2008. time Fellow of the Canadian Securities Institute.

35

CONTACT INFO:

Phone: 1-800-647-3303
Email: info@strathmoreminerals.com
www.strathmoreminerals.com

#700- 1620 Dickson Ave.
Kelowna, BC V1Y 9Y2
Canada

36

Strathmore investor presentation june 2012

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