Greenland Government Introduces Uranium Licensing Framework For the Kvanefjeld Multi-Element Project

Read Full ASX Announcement 5 December 2011

Greenland Minerals and Energy Ltd (‘GMEL’ or ‘the Company’) is pleased to announce that the government of Greenland has amended the terms of the Company’s exploration license that covers the Kvanefjeld multi-element project such that it is now inclusive of uranium.

Exploration license EL 2010/02 covers the northern Ilimaussaq complex and includes the world-class Kvanefjeld resource, along with the emerging satellite deposits Zones 2 and 3 (Table 1). Under the licensing framework in Greenland, the licensee maintains the right to apply for an exploitation (mining) license for all exploitable elements listed on the exploration license. Importantly EL 2010/02 now includes radioactive materials, providing the company with the clear right to apply for the exploitation of radioactive elements along with all other exploitable elements. The granting of an exploitation license will be dependent on establishing an environmentally and socially sustainable development scenario that is economically robust.

The amendment comes approximately one year after the Government of Greenland issued GMEL with an evaluation permit to allow for comprehensive feasibility studies to be conducted on a mineral deposit that includes uranium. Through the first half of 2011, the Company conducted extensive stakeholder engagement to establish the terms-of-reference for environmental and social impact assessments. These terms were approved by the government in July, and both the EIA and SIA are progressing on schedule. The Company is extremely pleased with this critical development and expects to lodge an application for the exploitation of Kvanefjeld at the end of 2012.

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