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JV Partners to Proceed with Midwest Uranium Project

Tuesday, December 4th, 2007

Denison Mines Corp. is pleased to announce the formal decision of the joint venture partners in the Midwest uranium mine project to proceed with the development of the project. The partners in the joint venture comprise AREVA Resources Canada Inc. (69.16%), Denison (25.17%) and OURD Canada Co. Ltd. (5.67%).
“This is a great project that will benefit the partners and provide positive economic and employment opportunities in northern Saskatchewan,” said Peter Farmer, Chief Executive Officer of Denison. “The infrastructure for the Midwest project – roads, power, water treatment and mill expansion – will also be beneficial for the development of the adjacent MAE Zone, which has significant expansion potential as was confirmed this summer by drilling that revealed a new high-grade structure.”
The Midwest Project, which is located 15 km west of the McClean Lake operation, involves draining part of the Mink Arm of the South McMahon Lake in Northern Saskatchewan to construct an open pit mine about 45 hectares in size (approximately 900 by 350 metres) and 215 metres deep. The ore will be trucked along a dedicated haul road to the McClean Lake mill for processing. The pit, as currently designed, will produce an estimated 36 million pounds of U3O8 (about 14,000 tonnes of uranium). Other deposits and extensions located to the north, south and in the basement could be developed once the pit is nearing completion. The total capital cost including mine development and the related McClean Lake mill expansion of about $100 million will be approximately $400 million.
Subject to regulatory approvals, site construction, including the haul road, water treatment and other facilities, could begin in mid-2009. Stripping of the rock over the ore would then commence in early 2010 with ore removal starting in mid-2011 and continuing through to 2013. It is anticipated that the project will employ approximately 150 people. The McClean Lake operation presently employs approximately 330 staff and 110 long term contractors.

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