Page Seven Certainly we must expect that future uranium discoveries will be deeper and are likely to be more costly to mine. It would be less than prudent to anticipate that future discoveries are going to be of better grade than our presently known reserves. Indeed, experience in other minerals would suggest the opposite to be the probable case. Again this would suggest an increase in the cost of mining as well as milling the ore. This is not to say that new exploration methods, improved mining equipment and improved milling technology will not come into play in finding means of holding down these rising costs. But the uranium industry of today is a diversified industry, having alternate choices of investment, and the incentive to these companies for finding new reserves and finding better methods of producing these reserves is not a matter of survival, but of profit. It's a lot easier today to sell a Board of Directors on looking for copper than it is to gamble on uranium where the price and the business patterns are as yet undetermined. The potential users may be convinced that technological advances will make uranium concentrates available under $5, but I seriously question whether any such prices will renew the interest of the miner in searching for new deposits. If he is to sin again, you've got to get the price up to where the temptation to try again is irresistible # # # #