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Red Rock Energy Inc. (TSX-V: RRK) March 2011. This presentation may contain forward-looking information including expectations of future production, operating.

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Presentation on theme: "Red Rock Energy Inc. (TSX-V: RRK) March 2011. This presentation may contain forward-looking information including expectations of future production, operating."— Presentation transcript:

1 Red Rock Energy Inc. (TSX-V: RRK) March 2011

2 This presentation may contain forward-looking information including expectations of future production, operating costs, commodity prices, administrative costs, commodity price risk management activity, acquisitions and dispositions, capital spending, access to credit facilities, income taxes, regulatory changes, and other components of cash flow and earnings. Attendees are cautioned that assumptions used in the preparation of such information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the company. These risks include, but are not limited to, the risks associated with the mining industry, commodity prices and exchange rate changes. Industry related risks could include, but are not limited to, operational risks in exploration, development and production, delays or changes in plans, risks associated to the uncertainty of reserve estimates, health and safety risks and the uncertainty of estimates and projections of production, costs and expenses. The reader is cautioned not to place undue reliance on this forward-looking information. Attendees are further cautioned that the preparation of financial statements in accordance with generally accepted accounting principles requires management to make certain judgements and estimates that affect the reported amounts of assets, liabilities, revenues and expenses. Estimating reserves is also critical to several accounting estimates and requires judgments and decisions based upon available geological, geophysical, engineering and economic data. These estimates may change, having either a negative or positive effect on net earnings as further information becomes available, and as the economic environment changes. 2

3 Sandy L. Loutitt, BA Econ (President / CEO): Active experience in minerals exploration working for Loutitt Exploration Ltd. Grew up in Uranium City Founder and President of Builders Capital Inc., private equity lender Reg Olson, Ph.D. (Economic Geology), P. Geol. (APEGGA), P. Geo. (APEGS) (VP Exploration) President, R.A. Olson Consulting Ltd. Extensive experience in uranium exploration and uranium deposit geology working in the Beaverlodge and Athabasca Basin, Saskatchewan uranium districts Co-author of National instrument 43-101 report on Red Rock’s Athabasca Lake North Project with Alex Knox Mike Matishack, CA (Chief Financial Officer) Extensive public company experience Primarily mid-tier insurance and resource based companies David Pinkman, BA, LLB (Director / VP): Former securities lawyer; extensive public company and business experience including resource and energy Served on the boards of a number of public and private companies David M. Lewis, B.Com (Director): 28+ years of experience in the energy industry Founded, owned and operated a number of public and private energy companies around the world Brent Walter, LLB (Director): Securities lawyer Pro-Venture Law LLP council Currently serves as a director and officer of a number of public and private companies 3

4 Junior uranium company trading on the TSX-V, trading under symbol RRK Initially staked 10,762 ha in 2005 Initial Public Offering on TSX-V was completed July 2007 Gross IPO proceeds of $6.3 million ($3.5 million flow-through) at an issue price of $0.70 /share Issued and outstanding shares are 43.4 million (28% Management ownership) 2007 – Present, RRK has amassed the largest land position in the Uranium City region through acquisitions and mergers totaling 60,581 ha 4

5 Resources Total resources of 3.89 million pounds U 3 0 8 100% owned by Red Rock Energy Inc. This includes: New discoveries = 1.34 million lbs U 3 0 8 (NI 43-101 compliant) Historic resource = 2.55 million lbs U 3 0 8 (non NI 43-101 compliant) Land Current Total = 60,581 ha RRK initially held 10,762 ha in four claim blocks (RB1 to RB4) 2009 Acquisition - 100% interest in 25,288 ha 2009 Option - 75% interest for U in another 25,539 ha 5

6 Over 60 reactors are currently being constructed in 15 countries. Megatons for Megawatts program (supplies 25% of the current US demand) expires in 2013. By 2015, the World Nuclear Association estimates that a new nuclear reactor will start up every 5 days. China and India plan to double their nuclear capacity in the next 5 – 10 years. Demand has outstripped supply every year since 1989. 6

7 Athabasca Basin 7

8 Uranium City produced approx 77 million lbs from 1954 to 1982; average grade = 0.250% (5 lbs per ton). The camp was closed due to poor economics not due to an exhaustion of ore. “Due to economic restraints throughout the history of operation, many of the best exploration targets were shelved.” (D.M. Ward, Senior Staff Geologist, Beaverlodge Mine Closure Report, Eldorado Nuclear Limited, October 1982) Operating costs in Uranium City are low due to existing infrastructure. 18 million pounds U 3 0 8 of un-mined resource sitting under Government of Saskatchewan Crown Reserve within meters of Red Rock ground. Red Rock is the first company to consolidate the once fragmented historical data sets into 2D and 3D models of existing and new ore bodies. 8

9 9 Charlot River Power Station Uranium City paved airstrip Bulk Fuel Tanks Barge (services Uranium City) RRK field office & accommodations Diamond drill rig at the Fusion Zone Diamond drill rig & cat RRK Core storage & logging facility

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11 Planned drill program for spring of 2011. Estimated drilling of approximately 12,000 meters at new ‘Redox - A’ zone. Continued compilation of extensive historic data into GIS format and 3D model work (Surpac) of new drill results Make application to Canadian Nuclear Safety Council (CNSC) for license to mine and possess uranium and to Government of Saskatchewan for mine permit (dependent upon drill results)  Historic work and environmental monitoring offers short track to CNSC, and Government of Saskatchewan permitting, estimated at 3 years 11

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13 13 Immediate Footwall Footwall Hangingwall Ore Zones (relation to St. Louis Fault) 18 million lbs U 3 0 8 of un-mined resource remaining of 56 million lbs past production Open at depth ‘Redox – A’ Target

14 Complete listing of resources (measured, indicated and inferred) reported in Ward's 1982 report by area adjacent to Red Rock properties under Government of Saskatchewan Crown reserve Measured & IndicatedInferredTotal AreaTonsGrade (% U3O8) TonsGrade (% U3O8) TonsGrade % U3O8 Pounds (U3O8) Fay Mine775,3000.23075,0000.140850,3000.2203,805,200 Verna Mine308,6000.1702,260,5000.1702,569,1000.1808,998,200 Central Zones299,3000.150868,4000.1701,167,7000.1703,912,700 West Fay--95,0000.14095,0000.140274,200 Misc. Blocks--256,4000.170256,4000.170848,500 HAB Mine--38,4000.19038,4000.190147,100 Dubyna Mine--71,1000.18071,1000.180256,000 Surface10,5000.170176,5000.160187,0000.110711,400 TOTALS1,393,7000.2103,841,3000.1705,235,0000.18018,953,300 14

15 15 Workplace environment Our employees make up the foundation of our company and as such we provide them with a healthy, safe and rewarding workplace that promotes teamwork Environmental Sustainability Committed to the environment and sustainable development, it is Red Rock’s mandate to employ strategies that promote developments that are environmentally responsible Corporate Citizenship As a dedicated corporate citizen, Red Rock is actively engaged and in support of community based events Accountability & Responsibility Red Rock is committed to taking responsibility for our actions and being fiscally responsible to shareholders, interest holders and the community

16 Total resources on Red Rock ground is 3.89 million pounds U 3 0 8 to date Solid geological potential for new additional discoveries of 15- 40 million pounds of U 3 0 8 Cost of new U 3 0 8 to date = $3.55/lbs Upside as RRK has the best potential to gain access to existing 18 million lbs of ore under government of Saskatchewan crown reserve Experienced management team Red Rock Energy - Poised for success 16


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