September 10, 2010 – Yesterday Purepoint Uranium Group Inc. (TSX-V:PTU) held its annual general and special meeting where shareholders approved all matters which were submitted with the proxy materials for approval at the meeting, including the election of the Board of Directors, the requisite annual approval of the Stock Option Plan for 2010 and the re-appointment of MSCM LLP as auditors of the Company.
At that meeting Chris Frostad, President and CEO presented his thoughts and plans for the coming year. Specific points noted were:
- Global uranium production numbers have increased significantly during recent times fueled primarily by the spike in uranium prices in the last decade. The steady decline in uranium prices now appears to have leveled off and prices are expected to slowly rise in the coming year;
- During the past 2 years there has been a 60% increase in new reactors approved, planned and proposed around the world – approximately 8 new reactors per month are added to the list;
- Despite increased production and increased demand, there has been no corresponding increase in uranium reserves and no new material uranium discoveries. The long term fuel gap will force near term investment in uranium exploration.
“China’s recent long term supply arrangements with Cameco and Paladin and Russia’s takeover of Uranium One are clear signs that the world’s nuclear utility providers are applying serious pressure to the uranium supply chain” said Frostad. “Either directly or indirectly, funds must/will be allocated to the discovery of new uranium inventory. We fully intend to be involved in that stage of this cycle”.
Within that context, Purepoint’s plans remain focused on three fronts:
- Maintain and broaden relationships with all relevant participants and potential partners in the uranium fuel chain;
- Maintain and enhance the company’s advanced portfolio of 100% owned uranium projects in Canada’s Athabasca Basin; and
- Continue to reduce costs where possible and preserve investor capital.
The company is also pleased to announce today that the Board has approved, at Mr. Frostad’s request, an amendment to his employment agreement reducing the cash component of his compensation by nearly 40%. Mr. Frostad continues to hold 4,171,200 shares or 5.3% of the outstanding shares of the company.
Purepoint Uranium Group Inc. is focused on the precision exploration of more than 55 defined target areas on its eight 100% owned projects in the Canadian Athabasca Basin, and its two Basin projects joint ventured with Cameco Corporation and AREVA Resources Canada Inc. Established in the Basin well before the resurgence in uranium, Purepoint is actively advancing this large portfolio of multiple drill targets in the world’s richest uranium region.
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For further information please contact:
Purepoint Uranium Group Inc.
Chris Frostad, President and CEO