Company Introduction: Initial Report January 20th, 2009 Initial Report January 20th, 2009

Analyst: Victor Sula, Ph.D.
Initial Report
January 20th, 2009
1/16/09
URXE daily
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10580 N. McCarran Blvd. volume © BigCharts.com
Building 115-208 400
Thousands
Reno, Nevada USA 89503 300
200
100
Phone: 775-721-8883
0
Email: info@urexenergy.com
Nov Dec 09
Website: www.urexenergy.com
MARKET DATA
Company Introduction
Urex Energy Corp. (URXE) is a natural resource exploration and
Symbol URXE development company that explores and develops properties con-
Exchanges OTCBB taining uranium minerals. To date, URXE has acquired 100% of the
Current Price $0.04 mineral rights to two mineral uranium properties: the Rio Chubut
Price Target $0.24
Property, located in the Chubut Province of Patagonia, southern Ar-
Rating Speculative Buy
gentina, and the La Jara Mesa Property, located in Cibola County,
Outstanding Shares 84.42 Million
Market Cap. $3.37 Million New Mexico. These assets are surrounded by prospective mineral
Average 3M Volume 29,211 deposits which have been explored by other mining companies and
shown to contain large, undeveloped uranium reserves.
Source: Yahoo Finance, Analyst Estimates
The Company owns a 100% interest in the Rio Chubut property,

which consists of 170,000 hectares of land adjacent to the Cerro Solo
uranium deposit located in Chubut Province of Patagonia, south-
ern Argentina. As of September 2008, URXE had completed 88 drill
holes (7,624 meters of drilling) on first pass drill testing on five
uranium targets on this property and encountered uranium min-
eralization in all target areas. The Cerro Solo deposit, which was
explored by Argentina’s atomic energy commission (CNEA) in the
1970s,
hosts estimated recoverable resource of 10 million pounds of ura-
nium oxide (U3O8) based upon the results from 410 drill holes.
URXE also owns a 100% interest in the La Jara Mesa Extension

uranium property consisting of 137 unpatented mining claims in
the Grants Mining District, Cibola County, New Mexico. URXE’s
property is within economic haul distances of the La Jara Mesa and
Melrich uranium deposit, which contains indicated uranium oxide
resources of 7,250,000 pounds and inferred resources of 3,172,000
pounds. Between 1950 and 1978, the Grants Mining District pro-
Urex Energy Corp. (OTCBB: URXE) 1
Initial Report
January 20th, 2009
duced 350 million pounds of uranium oxide, ranking this as the most prolific uranium district in the United
States.
Investment Highlights
Nuclear power needed to satisfy energy demand
Rising demand for electricity generation, growing concerns over global warming, and rapid depletion of fossil
fuel resources are increasing demand for alternative energy sources such as nuclear power generated by ura-
nium.
Demand for electrical power is projected to nearly double from 2004 to 2030, on average growing 2.6% annu-
ally from 17,408 TWh to 33,750 TWh. Electricity consumption will increase because of economic and population
growth in the world’s developing economies, where some two billion people currently have no access to electric-
ity.
There are approximately 443 nuclear reactors currently operating worldwide; another 33 are under construction,
and 94 additional new reactors are planned over the next five to 10 years. By 2015, Cameco anticipates approxi-
mately 506 nuclear reactors will be operating worldwide. As a result, demand for uranium is forecast to rise
from approximately 80 million tons in 2007 to 100 million tons in 2015.
Supply/demand imbalance creates uranium sales opportunities
Despite a 15% increase in uranium production to 56,200 tons in 2007

largely from new mines in Canada, South Africa, Kazakhstan and
Namibia, uranium supply is projected to fall short of demand over
the next decade.
Since the early 1990s, a large percentage of the world’s uranium de-
mand has been met by secondary supplies of highly enriched ura-
nium sourced from the disarmament of Russian nuclear weapons.
This secondary supply declined marginally in 2006 and 2007 and is
expected to fall substantially after 2013.
Cameco estimates that the supply/demand imbalance could exceed

500 million pounds by 2016. As a result, uranium producers are
likely to benefit from increased demand and rising prices for their
uranium output.
Cerro Solo area drill results suggest huge uranium potential on the
Rio Chubut property
The Company has completed 88 reverse circulation drill holes (7,624

meters of drilling) this year on first pass drill testing on five uranium
targets at its Cerro Solo area properties. Peak uranium values of 10
pounds of uranium oxide (U3O8) per ton intersected in the drill-
ing. Over a ten-year period Argentina’s Atomic Energy Commission

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January 20th, 2009
(Compania Nacional de Energia Atomica - CNEA) drilled 410 drill holes at Cerro Solo that resulted in the defini-
tion of 10 million pounds of U3O8 valued at more than $600 million at current uranium prices. Over the past six
months URXE has made significant progress advancing its program to define and develop economic uranium
resources in Argentina.
Some experts view the Rio Chubut area in southern Argentina as the next Grants Mineral Belt; this region pro-
duced 350 million pounds of U3O8 and is thought to contain another 350 million pounds of U3O8, according to
the United States Geologic Survey. In addition, uranium mineralization at Cerro Solo is hosted in the Cretaceous
Los Adobes Formation which is wide spread and underlies most of URXE’s 170,000 hectare property position.
La Jara Mesa uranium potential estimated at 20 million to 40 million pounds
URXE owns a 100% interest in the La Jara Mesa Extension uranium property, consisting of 137 unpatented min-
ing claims covering approximately 2,740 acres in New Mexico’s Grants Mining District. This property is within
economic haul distance of the La Jara Mesa and Melrich uranium deposit, which contains a National Instrument
43-101 compliant measured and indicated resource of 7,250,000 pounds of uranium oxide.
URXE is awaiting approval of an exploration permit which will allow it to commence phase 1 drilling of this
prospect.
Substantial uranium reserves in nearby properties
The Company’s Argentina property is located adjacent to the Cerro Solo Deposit, which is the largest uranium
deposit in the San Jorge Basin. This deposit has a reserve of nearly 10 million pounds of uranium oxide at a grade
of 0.3% U3O8 (6.7 lbs per ton U3O8) and 3.3 million pounds of molybdenum at a grade of 0.20% molybdenum.
URXE’s La Jara Mesa deposit is located in the largest historic uranium-producing district in the United States.
Between 1950 and 1978, the Grants Mining District produced 270 million pounds of uranium oxide. Laramide
Resources, which has claims adjacent to URXE’s La Mesa Jara claim, recently reported an unqualified resource of
1.4 million tons grading approximately 0.3% uranium oxide which would yield an estimated 7 million pounds of
uranium.
Seasoned management team
URXE’s management team includes professionals with finance and project development expertise and seasoned
mining industry veterans with uranium exploration and development expertise. Company President Richard
Bachman is a certified professional geologist with more than 28 years of mining industry in various capacities
ranging from exploration to mine operations. Mr. Bachman spent 22 years with Homestake Mining Company
managing projects in the United States, Brazil, Peru, Argentina and central Europe. As regional geologist for
Homestake Mining, he designed and successfully implemented reconnaissance programs in southern Argentina
that resulted in the evaluation of 63 properties with five advancing.
Urex
Urex Energy
Energy Corp.
Corp. (OTCBB:
(OTCBB: URXE)
URXE) 33
Initial Report
January 20th, 2009
Business Model
The Company’s business involves acquiring, exploring and developing mineral properties that have the po-
tential to host economically viable uranium deposits. URXE owns 100% interests in two uranium prospective
properties located in the United States and Argentina. By diversifying its portfolio geographically, URXE helps
mitigate risk related to each region’s political climate and policies concerning uranium exploration and mining.
The Company’s majority-owned subsidiary, United Energy Metals S.A., holds a 100% interest in the Rio Chubut
property, consisting of 170,000 hectares in the Chubut Province of Patagonia, southern Argentina. The Cerro
Solo exploration block is approximately 160 kilometers x 95 kilometers and borders the 10-million pound Cerro
Solo Uranium deposit to the north and south. The Company’s exploration strategy for this property entails a first
pass, broadly spaced drill program to identify uranium mineralization and follow-up drilling. The Company
estimates drilling program costs at around $1.9 million. To date, URXE has completed 88 drill holes in five target
areas.
URXE also owns 137 unpatented mining claims covering approximately 2,740 acres of land in New Mexico. The
La Mesa Extension uranium project is awaiting approval of an exploration permit that will allow phase 1 drilling
to commence.
URXE’s exploration program utilizes advanced drilling technologies and data acquired through the exploration
efforts of others to maximize success. The Company uses work product derived from various reports, maps,
radioactive rock samples, exploratory drill logs, state organization reports, consultants and geological studies.
All of the drill holes on the Company’s Argentina properties are logged with a down-the-hole Calibrated BGR-01
4-Channel Gamma Probe operated by in-house technicians.
The Company’s systemic approach to developing its properties includes drill testing and projects prioritized ac-
cording to resource potential and capital requirements. In addition to developing its existing uranium property
assets, URXE plans to acquire additional proprieties in strategically important areas that complement its existing
prospect portfolio. The Company expects to explore and develop its properties through the reserve/feasibility
stage and then partner with or sell its project to a larger mining company for subsequent commercial production.
Corporate strategy
URXE plans to acquire properties that are likely to contain economic quantities of uranium ore; its focus is prop-
erties that have undergone some degree of uranium exploration but have not yet been mined, and properties
that can be quickly developed into producing uranium mines. The Company will build its business by acquiring
late-stage uranium projects, and then engineering and building low-cost, environmentally responsible mines.
URXE will also seek strategic partnerships in its operating areas, and will pursue opportunities to expand its
resource base through exploration.
Near-term objectives include the following:
• Improve the geological model and complete the additional drilling required to delineate and develop eco-
nomic resources at the Rio Chubut and Cerro Solo area uranium discoveries;
• Complete a concept test and commence a substantial drilling campaign at the La Mesa Extension property;
• Continue exploration of acquired properties and advance discovery at other uranium projects;
• Continue to acquire new uranium projects;

Initial Report
January 20th, 2009
• Maintain a well-financed exploration program;

• Establish operational control over assets with the goals of controlling the costs and timing of the Company’s
exploration, development and production activities;
• Utilize modern geophysical, drilling and engineering technologies;
• Reduce exploration risk and increase economic viability; and
• Establish and leverage strong relationships with business partners.
Properties
Rio Chubut property
This property is located approximately 270 kilometers west of Raw-

son, a small port city at the mouth of the Rio Chubut property. The
property is easily accessible through National Road 25. Relief in the
project area is low, with elevation ranging between 200 meters and
650 meters above sea level. Vegetation consists of low shrubs and
related brush and grasses. Climate is semi-arid; average annual tem-
peratures vary from 6°C to 14°C. Minimum and maximum tempera-
tures may range from -20°C to 40°C.
The project location encompasses a rectangular area approximately

160 kilometers by 195 kilometers. On the west side lies a contigu-
ous block of 13 exploration permits (“Cateos”) covering an aggregate
area of approximately 120,000 hectares; on the east side lays a con-
tiguous block of five Cateos covering an aggregate area of approxi-
mately 50,000 hectares.
The San Jorge Gulf Basin dominates the central and northeast por-
tions of the provinces of Chubut and Santa Cruz, respectively. The
basin is predominantly comprised of rocks of the Chubut group.
These are Cretaceous Period fluvial and pyroclastic sediments over-
lying a Jurassic Period basement, composed of basalt and andesite
volcanic rocks with lesser volcaniclastic and sedimentary rocks. The
Cerro Solo deposit is a sandstone-type uranium-molybdenum deposit with mineralized layers distributed in flu-
vial conglomeratic sandstone of the Cretaceous Chubut group lying 50 meters to 130 meters below surface.
Fluvial channels within the Chubut group rocks have been recognized as particularly favorable hosts for uranium
mineralization. To date, the better uranium deposits have been discovered in sedimentary rocks deposited by
braided, high-energy fluvial processes. This includes the Los Adobes Formation in the Cerro Solo area, and the
Arroyo del Pajarito member in particular, which is up to 150 meters thick within the Cerro Solo deposit.
The Cerro Solo deposit is the largest uranium deposit in southern Argentina and occurs within an area 212 hect-
ares.

Initial Report
January 20th, 2009
Development Program
The Company has completed 88 drill holes on first pass drill testing on five uranium targets on its Cerro Solo
area properties. The targets drill tests to-date included:
(1) Contreras;
(2) Cerro Solo South (CSS);
(3) Carbon;
(4) Maple South; and
(5) Plateau.
Twenty-two drill holes were completed on the Plateau Target and drilling will continue as the newly discovered
uranium mineralization is outlined. A peak uranium value of 10 pounds of eU3O8 per ton (0.42 eU%) was in-
tersected in drill hole RC08-079 on the Plateau target area and occurs within an intercept of 2.24 meters grading
3.18 pounds eU3O8 per ton (0.13 eU%). The uranium mineralization in drill hole RC08-079 is hosted in flat-lying
sandstone and conglomerate of the Cretaceous Los Adobes Formation between 60.51 and 62.75 meters below the
surface.
Thirty-seven drill holes were completed on the Carbon Target (see Figure above) identifying thick zones of
anomalous uranium mineralization related to high concentrations of organic carbon in the Los Adobes Forma-
tion. Drill hole RC08037r from the Carbon Target returned a peak uranium value of 5.74 lbs/ton eU3O8.
Seventeen drill holes were completed on the CSS Target identifying a number of uranium zones for follow-up
drilling. Partial drill results for CSS are given in Table 1. The CSS property is located on the south boundary of
CNEA’s Cerro Solo uranium deposit (see Figure above).
Table 1. Partial Drill Results From CCS Target Area - Argentina
Hole ID From (m) To (m) Interval (meter) eU3O8 (Lbs/ Ton)* eU (%) Target
RC08007r 60.47 61.59 1.12 0.73 0.031 Cerro Solo South

* .5 lbs/ton eU3O8 cutoff used in all drill holes

Source: Company presentation
URXE completed a total of nine drill holes on the Contreras Target, which is located 11 kilometers northeast of
Comision Nacional de Energia Atomica’s (CNEA) Cerro Solo uranium deposit. Uranium mineralization at the
Contreras Target occurs near surface in the flat-ying Cerro Barcino Formation lake sediments and is projected
to be broadly distributed based on initial mapping. A peak uranium value of 2.32 lbs/ton eU3O8 was obtained
from drill hole CS08.

Initial Report
January 20th, 2009
La Jara Mesa Extension property
The La Jara Mesa deposit is located within the San Mateo Mountains
in the southern part of New Mexico, and has a nearly arid environ-
ment (10 inches annual rainfall). The mesa where the deposit occurs is
2440 meters to 2530 meters above sea level. Vegetation consists of pine
and other mixed coniferous forest with natural open meadows. Forest
underbrush is minimal. Average annual temperatures vary from -1°C
to 22°C, with seasonal extremes averaging –12°C and 32°C in winter
and summer, respectively.
The property consists of a contiguous group of 137 unpatented lode-

mining claims in the north central portion of Cibola County. Three
claims in the extreme northwest corner of the claim block spill over
partially into McKinley County. The ore body is approximately 2,600
feet in length, 500 feet in width, and has an average thickness of 11.8
feet. Uranium potential is estimated at between 20 million and 40 mil-
lion pounds of uranium oxide.
Geology and Mineralization
The uranium mineralization occurs as tabular units within Brushy Ba-

sin members of the Jurassic Morrison formation. The host sandstone
is equivalent to the production zone at the Jackpile Mine, operated by
Anaconda to the east of the project area. The formation is near hori-
zontal and is dry. The Jurassic Morrison formation’s Brushy Basin host rock extends under URXE’s claim, with
drilled uranium reserves on the boundaries.
La Jara Mesa is a sandstone-hosted, roll front-type deposit that has been extensively explored by Homestake Min-
ing, Pathfinder and Power Resources. Since the early 1980s, approximately 500 rotary holes and 18 diamond drill
holes have been drilled on this property; preliminary metallurgical test work and initial mine planning have also
been completed.
Homestake Mining completed a feasibility study in 1983. Homestake’s La Jara Mesa deposit lies on the southwest
boundary of the URXE claim block and contains five separate areas with a combined mineral inventory (drill
indicated and inferred) of 1,133,310 tons at 0.30% eU3O8.. Within the above total is the Dena Rich deposit, which
contains 804,199 tons at 0.36% eU3O8.
New Mexico uranium districts
The Grants Mineral Belt trends northwest from Laguna to the Gallup region of New Mexico, a distance of ap-
proximately 125 kilometers and about 25 kilometers wide. The belt includes the Laguna, Ambrosia Lake, Church
Rock and Crownpoint mining districts. New Mexico ranks second behind Wyoming among the U.S. states with
the largest uranium reserves. Production commenced in the Grants Mining District in the late 1940s. The boom
years in the Belt were 1953-1980, when approximately 350 million pounds of yellow cake (U3O8) were produced.

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January 20th, 2009
Adjacent Properties
The Company’s properties are near claims owned by other uranium mining companies. Some of its neighbors
and their properties are described below.
United States
Laramide Resources Ltd. owns uranium assets in Australia and the United States. Its U.S. assets include La
Jara Mesa in Grants, New Mexico and La Sal in the Lisbon Valley district of Utah. At its La Jara Mesa property,
Laramide reports an unqualified resource of 1.4 million tons grading approximately 0.3% eU3O8, which would
yield an estimated 7 million pounds of eU3O8. Mineralization is contained in several thick, tabular units at a
depth of 200 meters below the top of the mesa. An independent NI 43-101 compliant Resource calculation on
La Jara Mesa was completed in 2006 and amended in July 2007. The results indicate:
• Measured and indicated: 1,555,899 tons @ O.23 % U3O8 resulting in 7,257,817 pounds U3O8; and
• Inferred: 793,161 tons @ 0.20 % U3O8 resulting in 3,172,653 pounds U3O8.
The Melrich uranium deposit, which is also owned by Laramide, lies 4.8 kilometers to the northeast of the La
Jara Mesa deposit and borders URXE’s property. Mineralization is hosted in a north-south trending tabular
unit approximately 790 meters in length and 150 meters wide, with an average thickness of 3.6 meters.
Argentina
In Argentina, the Company’s properties border the Cerro Solo

deposit owned by Argentina’s Atomic Energy Commission (Com-
pania Nacional de Energia Atomica - CNEA). Cerro Solo is the
largest uranium deposit in the San Jorge Basin with an historical
resource of 10 million pounds of U3O8 at a grade of 0.30% and 3.3
million pounds of molybdenum at a grade of 0.20% molybdenum.
At Cerro Solo, uranium mineralization has been found in approxi-

mately 320 hectares, but only 90 hectares were selected for eco-
nomic feasibility evaluation. A total of 410 holes were drilled on a
combination of 50 meters x 50 meters, 50 meters x 25 meters, and
25 meters x 25 meters grids. An additional 200 holes were drilled
on a wider grid to test for outlier mineralization. A total of 72,300
meters has been drilled on the property, with 47,800 meters being
drilled to evaluate the Cerro Solo deposit.
Average mineral quality for all bodies is 0.3% to 0.5% uranium

and 0.2% molybdenum. A recoverable U3O8 resource of 4,600 tons
(2,600 indicated and 2,000 inferred) has been estimated. Limited
metallurgical testing has indicated greater than 95% and 55%
recovery for uranium and molybdenum, respectively, by conven-
tional treatment methods.

Initial Report
January 20th, 2009
Industry Outlook
Energy needs and nuclear power
According to the United Nations Population Division, the world’s population hit 6.5 billion in 2005 and, despite
lower expected fertility rates, is likely to reach 9.3 billion by 2050. World energy consumption is projected to in-
crease 50% from 2005 to 2030 or 1.7% per year, reflecting GDP growth over the next 25 years that will be higher
than the prior 25 years. Emerging economies, particularly China and India, will represent an increasing share of
world GDP. World energy demand is expected to rise to 17.7 billion tons of oil equivalent, compared with 11.4 bil-
lion tons in 2005. Electricity use will double and its share of final energy consumption will rise from 17% to 22%.
Nuclear power offers a clean, efficient alternative to energy produced from coal, oil or natural gas. Electricity is
produced at lower costs, and a nuclear generating plant does not produce carbon dioxide emissions. At present,
nuclear power provides about 16% of the world’s total annual electricity generation. France receives 78% of its
electricity from nuclear, Belgium almost 56%, Sweden close to 50%, South Korea 40%, Switzerland 40%, Japan 25%
and the United States 20%.
2007 world electricity generation
Source: http://www.world-nuclear.org/info/inf16.html
Demand for nuclear power is growing worldwide, and world nuclear generating capacity continues to expand
as more reactors are built and existing reactors are operated at higher capacity. Nuclear power provides 6.5% of
the world’s energy and 17% of the world’s electricity, with the U.S., France and Japan together accounting for 57%
of nuclear-generated electricity. Electricity generation from nuclear power is projected to increase from about 2.6
trillion kilowatt hours (kWh) in 2005 to 3.8 trillion kWhs in 2030, as concerns about rising fossil fuel prices, energy
security and greenhouse gas emissions support the development of new nuclear generation1.
1. www.eia.doe.gov/oiaf/ieo/pdf/highlights.pdf

Initial Report
January 20th, 2009
World Electricity Generation by Fuel, 2005-2030 (trillion kilowatt hours)
Source: www.eia.doe.gov/oiaf/ieo/pdf/highlights.pdf l
Uranium demand
The only significant commercial use for uranium is to fuel nuclear power plants for the generation of electric-
ity. By the time it is completely fissioned, one kilogram of uranium-235 can theoretically produce about 20 tril-
lion joules of energy, or as much energy as 1,500 tons of coal2. An important factor impacting the prospects for
nuclear power is the liberalization of electricity markets in many countries. Historically, electric power utilities
in the western world have operated in regulated electricity markets.
In 2007, the International Atomic Energy Agency reported 443 nuclear power reactors were operating in 31
countries with a total capacity of about 365 GW. As of February 2008, a total of 96 new reactors were under con-
struction or planned for completion within the next 10 years3. All together, the reactors will require 78,500 tons of
uranium oxide concentrate annually, including 66,500 tons of mined uranium or the equivalent from stockpiles
or secondary sources. Each GW of increased capacity will require about 195 tons of annual uranium mine pro-
duction, and three times this for the first fuel load4. In 2006, worldwide annual fuel consumption was estimated
at approximately 176 million pounds of U3O8.
2. http://en.wikipedia.org/wiki/Uranium#cite_note-BuildingBlocks479-3
3. www.cameco.com/uranium_101/markets/
4. www.world-nuclear.org/info/inf22.html

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January 20th, 2009
Uranium Demand Forecasts
Source: Worn Nuclear Association (www.gnr2.org/html/2007/2-10.pdf)
Owners and operators of U.S. civilian nuclear power reactors purchased a total of 51 million pounds of uranium
from the U.S. government, other U.S. suppliers and foreign suppliers during 2007. For 2008, the maximum an-
ticipated requirements for U.S. civilian reactors are 43 million pounds. At year-end 2007, maximum uranium
deliveries for 2008 through 2017 under existing purchase contracts totaled 230 million pounds. Unfilled uranium
requirements for 2008 through 2017 (not under contract) totaled 264 million pounds5.
Uranium reserves
It is estimated that 5.5 million tons of uranium ore reserves are already economically viable, while 35 million tons
are classed as mineral resources. The world’s existing measured uranium resources (5.5 million tons) are enough
to last for 80 years. This represents a higher level of assured resources than is normal for most minerals. Rising
prices will likely lead to the development of additional resources as present supplies are used up. Australia has
a substantial share (about 23%) of the world’s known recoverable uranium resources, followed by Kazakhstan
(15%) and Canada (8%).
Uranium supply sources include primary mine production and secondary sources. Production from world ura-
nium mines supplies approximately 62% of utilities fuel requirements. The balance comes from secondary sources
such as inventories held by utilities and other fuel cycle companies, inventories held by governments, recycled
5. www.eia.doe.gov/cneaf/nuclear/umar/umar.html

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January 20th, 2009
materials from military nuclear programs, used reactor fuel that has been reprocessed, and depleted uranium
stockpiles.
Canada produces the largest share of mined uranium (23% of world supply), followed by Australia (21%) and
Kazakhstan (16%). In 2007, seven producers accounted for approximately 85% of world uranium production
estimated at 109 million pounds. Primary uranium producers include Cameco (approximately 19% of global
mine production) and AREVA (15%), both of which produce principally from deposits in the Athabasca Basin of
northern Saskatchewan.
Uranium Production from Mines (thousands of tons)
Source: www.world-nuclear.org/info/inf23.html
Total U.S. uranium production in 2007 was 4.5 million pounds and 10% above 2006 levels. Production was de-
rived from one U.S. mill and five in-situ-leach plants (Crow Butte, Alta Mesa Project, Smith Ranch-Highland
Uranium Project, Kingsville Dome and Vasquez). Overall, there were 11 mines in the United States that pro-
duced uranium during 2007.
Uranium prices
In 2000, uranium spot prices fell to a 26-year low of $7.10 per pound due to increased availability of secondary
supplies and higher inventories. Uranium spot prices have appreciated more than 1,300% since 2001, reaching
an all-time high of $138 in June 2007, bolstered by tight market conditions and speculative buying. In August
2007, the price fell dramatically after the U.S. Department of Energy sold 200 tons of uranium hexafluoride, a
processed form of the yellowcake.
Like many commodity markets, the global recession is also affecting the international market for uranium. Spot
uranium prices were around $46 per pound in November 2008.

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January 20th, 2009
Uranium spot prices, $/pound
Source: www.uranium.info/index.cfm?go=c.page&id=29
According to price publisher Ux Consulting Spot, uranium snapped a long, steep price decline in November 2008
as buying interest from utilities increased and India placed new uranium orders. Despite increased buying inter-
est, fears of a global recession continue to weigh heavily on the uranium market. In the near-term, Ux Consulting
predicts uranium spot prices will likely range around $45 per pound6.
Financial Analysis
Income statement
URXE is an early development-stage company in the process of acquiring and evaluating mineral properties and
is not currently generating revenues from operations.
Over the next 12 months, the Company expects to incur significant expenses for its Rio Chubut property drilling
program and mineral properties evaluation.
6.www.platts.com/Nuclear/News/6001569.xml

Initial Report
January 20th, 2009
Income Statement, $
FY 2007 FY 2008 %Chg H1FY2008 H1FY2009 %Chg
Revenue - - n/m - - n/m

Expenses 6,550,096 1,190,668 -82% 356,726 689,239 93%
Depreciation - - n/m - 464 n/m
Management fees 131,952 133,208 1% 65,970 72,152 9%
Professional fees 119,083 64,263 -46% 28,198 44,107 56%
Consulting fees 269,996 23,985 -91% - - n/m
Exploration costs 91,909 575,074 526% 150,465 501,458 233%
Interest on loans 22,478 15,319 -32% 9,407 8,285 -12%
Investor relation fees 75,774 286,798 278% 85,001 - n/m
Travel 36,266 28,615 -21% - - n/m
General and administrative 66,885 63,406 -5% 17,685 62,773 255%
Impairment of intangible asset 5,735,753 - n/m - n/m
Operating income (6,550,096) (1,190,668) n/m (356,726) (689,239) n/m
Interest income 3,542 6,360 80% 3,341 224 -93%
Net income (6,546,554) (1,184,308) n/m (353,385) (689,015) n/m
Diluted EPS, $ -0.08 -0.01 n/m (0.01) (0.01) n/m
Source: SEC Filings, Fiscal year ending March 31.
Liquidity and capital resources
As at September 30, 2008, URXE had a working capital deficit of $403,902. The Company’s total liabilities con-
sisted of $522,236 in current liabilities and $100,000 in long-term debt. Total assets declined to $120,657 due to
expenditures related to exploration and drilling in Argentina.
Balance Sheet, $ Thousands
31-Mar-08 30-Sep-08
Current assets 854,446 26,530

Total Current Assets 887,988 118,334
Total Assets 887,988 120,657
Liabilities, including 696,869 622,236

Debt 328,050 475,050
Equity, including 191,119 (501,579)

Accumulated deficit (7,950,369) (8,639,384)
Source: SEC Filings
To date, the Company has financed its operations mainly though the issuance of common stock, notes payable,
and a bank line of credit. URXE will require significant additional financing to fund its ongoing drilling program.

Initial Report
January 20th, 2009
Valuation
Due to the early stage of its exploration and development program, it is difficult to accurately assess URXE’s min-
eral resources. We expect more information to become available after the completion of ongoing drilling at the
Rio Chubut project. Despite this uncertainty, reserve estimates for adjacent properties and independent geological
reports suggest URXE may own significant potential uranium reserves.
The Company’s Rio Chubut project is adjacent to the Cerro Solo deposit owned by Argentina’s Atomic Energy
Commission. Cerro Solo is the largest uranium deposit in the San Jorge Basin with an historical resource of nearly
10 million pounds. URXE’s La Jara Mesa deposit is located in Grants Uranium District of New Mexico, which is
the largest historic uranium-producing district in the United States. The Company’s neighbor, Laramide Resourc-
es, has reported an unqualified resource estimated at 7 million pounds at its La Jara Mesa property. According to
URXE management, uranium resources associated with its La Jara Mesa property are likely to range between 20
million and 40 million pounds.
Based on this information, we believe URXE has a good chance of discovering meaningful uranium deposits. As-
suming a modest 20% chance of uranium discovery and cumulative reserve potential of 30 million pounds, we
derive a reserve forecast for the Company of 6.0 million pounds of uranium. At $45 per pound uranium prices,
potential reserves would be worth more than $240 million.
The Company’s current market capitalization of $3.4 million represents a tiny fraction of this value and suggests
URXE may warrant a higher valuation.
Comparative analysis
Ticker Market Cap., P/E P/s

Company name Current price
Symbol Mn ttm ttm
Denison Mines Corp. DNN $1.18 $224 N/m 2.33

Laramide Resources Ltd LMRXF $0.87 $69 n/m 55.99
Uranium Energy Corp. UEC $0.32 $15 n/m n/m
U.S. Energy Corp. USEG $1.95 $22 n/m 34.28
Cameco Corp. CCO.TO C$17.49 C$5,610 14.02 2.84
Uranium One Inc. UUU.TO C$1.10 C$529 n/m 3.05
Areva SA ARVCF $495 $13,528 11.18 1.06
Urex Energy Corp URXE 0.04 $2.62 n/m n/m
Source: Reuters
Laramide Resources owns adjacent uranium properties and is currently valued at $69 million. We take into ac-
count Laramide’s valuation and URXE’s earlier development stage in deriving our $2 million market capitaliza-
tion target and $0.24 share price target for URXE. As a result, we are initiating coverage of URXE with a Specula-
tive Buy rating and a $0.24 price target.
We strongly recommend that prospective investors monitor URXE’s press releases for updates regarding the esti-
mated quantity and quality of its mineral resources and also consider the risk factors discussed in the next section
if they are contemplating the purchase of these shares.

Initial Report
January 20th, 2009
Risks
Uncertainty of mineral reserves
The Company’s success depends on its ability to discover commercially recoverable quantities of uranium on its
properties and develop commercially viable mining operations. There is no assurance that any of URXE’s min-
ing claims contain commercially viable reserves. Moreover, significant expenditures of time and money will be
required to develop its reserves.
Need for external financing
URXE has a limited operating history and has incurred aggregate losses of approximately $8 million since its
inception. The Company will need to raise substantial additional capital to support its drilling programs. There
is no assurance that URXE will be able to obtain the necessary financing.
Competition in the mining sector
The uranium industry, including the supply of uranium concentrates, is highly competitive. The Company com-
petes for acquisitions and resources with a number of companies that have greater financial resources, longer
operating histories, and a record of successful exploration. According to the World Nuclear Association, the top
seven firms in uranium production account for 85% of overall world production. Because of competition, URXE
may find it difficult to acquire attractive mining properties on terms that the Company considers acceptable.
Volatility of uranium prices
The Company’s revenues will depend on the sale of uranium and uranium products. Earnings and operating
cash flow will be sensitive to fluctuations in uranium prices. These prices are determined by demand for nuclear
power; political and economic conditions in uranium producing and consuming countries; production interrup-
tions or delays; sales of excess civilian and military inventories; and other factors beyond the Company’s control.
Governmental regulations
URXE’s mining operations are subject to extensive regulation by state, provincial and federal governments.
These regulations impact exploration, production, development, exports, imports, taxes and royalties, mine
safety, waste disposal, protection of the environment, labor standards and other factors. The Company owns
mining interests in North and South America. Policies of the U.S. and Argentine governments, as well as eco-
nomic and political conditions, may affect URXE’s mining operations and overall ability to generate revenues.

Initial Report
January 20th, 2009
Management Team
Richard Bachman Mr. Bachman has been the president and a director of the Company since September 2005. From 2002
until now, Mr. Bachman has acted as president and as a consulting professional geologist for Minera Teles
President and Director Pires Inc., a Nevada mining company. Prior to Minera, Mr. Bachman spent 22 years with Homestake Min-
ing in various capacities ranging from exploration to mine operations. From 2001 to 2002, Mr. Bachman
was Homestake’s regional geologist for international special projects, where he designed and successfully
implemented reconnaissance programs in southern Argentina that resulted in the evaluation of 63 proper-
ties and the coordination and field review of 22 properties. From 1999 to 2000, Mr. Bachman served as the
regional geologist for Peru operations where he led a 10-member team and refocused Homestake’s explora-
tion program, resulting in the evaluation of 83 properties in 24 months and a major new discovery. From
1995 to 1998, he served as the regional geologist for Brazil operations where he directed a team of 46 and
controlled a $2.5 million annual exploration budget. Mr. Bachman holds a Bachelor of Science in geological
engineering from the South Dakota School of Mines and Technology and is a certified professional geolo-
gist with the American Institute of Professional Geologists.
Oscar Yoshitaka Yokoi Mr. Yokoi joined the Company as a director in November 2006. Mr. Yokoi brings to URXE more than 29
years of mining and mineral exploration experience. During his career, Mr. Yokoi has worked for BP Miner-
Director als, Brascan, Homestake Mining Company, Votorantim and JOGMEC, and has consulted for CVRD, Placer
Dome and Meridian Gold. Mr. Yokoi received a Bachelor of Science in geology (1977) from the University
of Sao Paulo and a Master of Arts in business administration (2003) from UNA Belo Horizonte.
Brian Cole Mr. Cole became a URXE director in January 2007. He is a Canadian certified professional geologist with
more than 29 years of mineral exploration experience in gold, uranium, base metals, and diamonds in
Director many parts of the world. Prior to joining the Company, Mr. Cole was a partner in a consulting firm offering
project management services, supervising its Ghana, West Africa, office for three years. Prior to that, Mr.
Cole was a staff geologist for Placer Dome Inc. for 11 years in Canada and East Africa. Mr. Cole routinely
consults with clients in North and South America, advising them on mineral exploration strategy, project
management, quality control and resource estimation, and regularly prepares qualifying reports for securi-
ties exchanges on behalf of his clients.

Initial Report
January 20th, 2009
Disclaimer
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Individuals should assume that all information contained in the report about profiled companies is not trustworthy unless verified by their own independent
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may lose some or all of the money that is invested. Always research your own investments and consult with a registered investment advisor or licensed stock
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The report is a service of BlueWave Advisors, LLC, a financial public relations firm that has been compensated by the companies profiled. All direct and third
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Victor Sula, Ph.D. - Senior Analyst
Victor Sula, Ph.D. has held the position of Senior Analyst with several independent investment research firms since 2004. Prior to 2004, Mr. Sula held Senior Financial Consultant posi-
tions within the World Bank sponsored Agency for Restructuring and Enterprise Assistance and TACIS sponsored Center for Productivity and Competitiveness of Moldova, where
he was involved in corporate reorganization and liquidation. He is also employed as Associate Professor at the Academy of Economic Studies of Moldova. Mr. Sula earned his Ph.D.
degree in 2001 and bachelor’s degree in Finance in 1997 from the Academy of Economic Studies of Moldova. Mr. Sula is currently a level III candidate in the CFA program.

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Urex Energy Corp. 0.02

The Company owns a 100% interest in the Rio Chubut property,

URXE also owns a 100% interest in the La Jara Mesa Extension

Supply/demand imbalance creates uranium sales opportunities

Despite a 15% increase in uranium production to 56,200 tons in 2007

Cameco estimates that the supply/demand imbalance could exceed

The Company has completed 88 reverse circulation drill holes (7,624

Urex Energy Corp. (OTCBB: URXE) 2

La Jara Mesa uranium potential estimated at 20 million to 40 million pounds

Substantial uranium reserves in nearby properties

Seasoned management team

Near-term objectives include the following:

Urex Energy Corp. (OTCBB: URXE) 4

• Maintain a well-financed exploration program;

Rio Chubut property

This property is located approximately 270 kilometers west of Raw-

The project location encompasses a rectangular area approximately

Urex Energy Corp. (OTCBB: URXE) 5

Table 1. Partial Drill Results From CCS Target Area - Argentina

RC08007r 60.47 61.59 1.12 0.73 0.031 Cerro Solo South

* .5 lbs/ton eU3O8 cutoff used in all drill holes

Urex Energy Corp. (OTCBB: URXE) 6

La Jara Mesa Extension property

The property consists of a contiguous group of 137 unpatented lode-

Geology and Mineralization

The uranium mineralization occurs as tabular units within Brushy Ba-

New Mexico uranium districts

Urex Energy Corp. (OTCBB: URXE) 7

In Argentina, the Company’s properties border the Cerro Solo

At Cerro Solo, uranium mineralization has been found in approxi-

Average mineral quality for all bodies is 0.3% to 0.5% uranium

Urex Energy Corp. (OTCBB: URXE) 8

Energy needs and nuclear power

2007 world electricity generation

Urex Energy Corp. (OTCBB: URXE) 9

World Electricity Generation by Fuel, 2005-2030 (trillion kilowatt hours)

Urex Energy Corp. (OTCBB: URXE) 10

Uranium Demand Forecasts

Source: Worn Nuclear Association (www.gnr2.org/html/2007/2-10.pdf)

Urex Energy Corp. (OTCBB: URXE) 11

Uranium Production from Mines (thousands of tons)

Urex Energy Corp. (OTCBB: URXE) 12

Uranium spot prices, $/pound

Urex Energy Corp. (OTCBB: URXE) 13

FY 2007 FY 2008 %Chg H1FY2008 H1FY2009 %Chg

Revenue - - n/m - - n/m

Source: SEC Filings, Fiscal year ending March 31.

Liquidity and capital resources

Balance Sheet, $ Thousands

Current assets 854,446 26,530

Liabilities, including 696,869 622,236

Equity, including 191,119 (501,579)

Source: SEC Filings

Urex Energy Corp. (OTCBB: URXE) 14

Ticker Market Cap., P/E P/s

Denison Mines Corp. DNN $1.18 $224 N/m 2.33

Urex Energy Corp URXE 0.04 $2.62 n/m n/m

Urex Energy Corp. (OTCBB: URXE) 15

Need for external financing

Competition in the mining sector

Volatility of uranium prices