WOLLY

The Wolly uranium exploration project is a large and well located property that essentially surrounds the McClean project and comprises 23,799 hectares (approximately double the size of Wheeler). In October 2004, Denison entered into an agreement to earn up to a 22.5% interest in this project by spending up to Cdn$5 million over a six-year period. To date, Denison has earned an initial 13% interest, and anticipates earning the remaining 9.5 % interest under the option during 2009.

The property was first explored in the mid 1970s, due to its proximity to the Rabbit Lake discoveries. Because of the relatively shallow depths to unconformity, which do not exceed 200 metres, drill testing is inexpensive, and deposits are well within the realm of open pit extraction methods. Wolly originally included the McClean area until the decision was made to place McClean into production, at which time McClean was separated out. ARC is the operator of the Wolly project. Denison believes that the Wolly property, despite containing a total of over 800 drill holes, is arguably the most geologically prospective in the Athabasca Basin, on the basis of favourable geology, lack of basement exploration, and shallowness of cover.

In 2007, work consisted of a variety of ground geophysical surveying of a number of strongly anomalous conductors and drill testing of targets relatively proximal to the JEB mill. In 2008, drill testing was carried out on a number of high quality geophysical targets, proximal to areas of previous mineralized intersections. Work is expected to continue in 2009 on geophysical preparation and drilling on previously prepared grids. The Wolly project hosts the geological strike extension of the JEB deposit. As a general rule, all Athabasca uranium deposits are podiform, and the JEB is strongly anomalous in its singularity. Denison’s management feels that further drill testing is warranted.

Last updated April, 2009.