The near-surface exploration target tonnage of the Tåsjö uranium - rare earth element ("REE") - phosphate ("P2O5") project is vast.

Tåsjö is part of the sedimentary uranium deposit spectrum. Uranium mineralisation associated with phosphate concentrations are known globally, although the Tåsjö deposit is perhaps the oldest known to date, being Cambro-Ordovician.

At Tåsjö, 83 drillholes have been drilled into Mawson's project over an area of approximately 10 kilometres by 20 kilometres. Uranium mineralization is associated with concretions of the apatite mineral carbonate-fluorapatite, which constitutes up to 20% of the rock. Mass balance calculations indicate that the uranium grade of the apatite is 0.16%, while the grade of the host Lycophoria Schist ranges between 0.03 - 0.07% U3O8 and 0.11 - 0.24% rare earth metals. The combination of rare earth metals has been confirmed by check sampling

The company has applied for 12 exploration permits for a total area of 5047.5 hectares. To date seven permits areas have been granted: Kronotorpet nr 1 (199.99 hectares), Bodkullarna nr 1 (154.05 hectares) and Tåsjö nr 1 to 5 (2956.9 hectares). Five permits, Tåsjö nr 6 to 10 (1736.1 hectares), remain under application and are expected to be granted soon.

Tåsjö is located in the Jämtland and Västerbotten counties, 200 kilometres north of the town of Östersund in Northern Sweden.

The area was discovered in 1957 by the Swedish Atomic Energy Company using a vehicle-borne scintillometer. Subsequently the area was explored in the early 1970's by the Swedish Geological Survey and the Stora Kopparberg and Boliden companies. A total of approximately 100 exploration drillholes have been drilled in the Tåsjö field over a 200 square kilometre area.

The mineralized horizon is a 3 to 10 metre thick phosphatic calcareous sandstone of Lower Ordovician age (the "host sandstone"). Uranium mineralization is associated with the phosphate mineral apatite, which constitutes 9-20% of the rock and calculations indicate that the uranium grade of the apatite is 0.16%.

The host sandstone unit in the Tåsjö field occurs in subcrop and outcrop along two northeast orientated trends, each approximately 15 kilometres in length. Mawson has claimed approximately 80% of outcrop and subcrop of the host sandstone in the Tåsjö field.

The Tåsjö field is geologically analogous to the Florida Phosphorite Uranium Province, which contains the largest uranium resources in North America. In Florida, uranium occurs in carbonate-fluor-apatite at a grade of 0.007-0.0125% U3O8 (average 0.009%) and has been recovered as a by-product in the manufacture of phosphoric acid fertilizer. In 1988, two phosphoric acid manufacturing plants recovered approximately two million pounds of U3O8 (21% of U.S. production for 1988) from the phosphate rock mined in Florida.

Distribution of uranium in North America after Finch, 1996 (U.S. GEOLOGICAL SURVEY BULLETIN 2141)
Note the the Florida Phosphorite Uranium Province contains the largest uranium resources in North America.

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Summary of Drill Results from the Tåsjö Area

Based on the report, "Geological Investigations in the Tåsjö area in 1963 and 1964" by G. Armands of the Swedish Atomic Energy Company it is estimated that 75 to 150 million tonnes exist within the Tåsjö field at a grade between 0.03% to 0.07% U3O8, 0.11% to 0.24% REE and 3.75% to 7.5% P2O5. Total contained metal within the field is estimated between 104 to 116 million pounds of U3O8, 165,000 to 180,000 tonnes of REE and 5.63 million tonnes of P2O5.

The exploration target estimates above are based on the aforementioned report. The potential quantity and grade indicated is conceptual in nature, there has been insufficient exploration to define the target at this time and it is uncertain that further exploration will result in the definition of a resource.

The magnitude of the exploration target has been confirmed in a recent independent NI43-101 technical report by Geosynthesis Pty Ltd following a review of the SGU documentation, a field visit and check analysis of core samples.

Within the Tåsjö field of the host sandstone in the Krontorpet and Bodkullarna areas held under granted permits by Mawson, have been investigated in the most detail. The uranium bearing unit subcrops from surface in these areas. At Krontorpet, 7 stratigraphic drillholes give an exploration target of 9,800,000 tonnes at a grade of 0.03%, 0.11% REE and 3.5% P2O5 for an estimated contained metal content of 6.3 million pounds of uranium oxide, 10,780 tonnes of rare earths and 367,500 tonnes of phosphate.

At Krontorpet a section of the mineralized sandstone host returned the following REE values: REE ppm Sc 7 Y 188 La 150 Ce 361 Pr 43 Nd 185 Sm 31 Eu 11.4 Gd 35 Tb 6.2 Dy 35 Ho 5.2 Er 16.8 Tm 5.6 Yb 26 Lu 0.6	click on image to view enlarged
	Typical Mineralized Section (darkened area) from Drillhole 13 at Krontorpet

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Typical Mineralized Section Cross Section at Bodkullarna

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Stratigraphic Column from Tåsjö

At Bodkullarna, 6 stratigraphic exploration drillholes give an exploration target of 4,200,000 tonnes at a grade of 0.03%, 0.11% REE and 3.5% P2O5 for an estimated contained metal content of 2.7 million pounds of uranium oxide, 4,620 tonnes of rare earths and 157,500 tonnes of phosphate. The exploration target estimates are based on a report, "Alum Shale - Geology" by I. Hessland and G. Armands dated 1978, report number SIND PM 1978:3. The potential quantity and grade indicated is conceptual in nature and there has been insufficient exploration to define the target at this time and it is uncertain that further exploration will result in the definition of a resource.

World Nuclear Association Brief on Sweden

Sweden has an estimated 15% of the world's uranium deposits. Ten nuclear power reactors provide approximately 50% of its electricity.

Swedish mining legislation allows exploration for uranium and places no special restriction on mining where the uranium grade is less than 200 ppm or the production is less than 5 kg. When higher uranium grades are present, permitting will follow a process concerning "nuclear technical activity". Such permitting must pass before the Swedish government for decision making.

Sweden has been an enthusiastic supporter of measures to improve world environmental quality. Among many others, Sweden in 1992 committed itself to stabilise carbon dioxide emissions at 1990 levels by 2000, and this was reaffirmed in Berlin in 1995. The fact that those levels in 1990 were only 60% of 1970's was due to nuclear energy replacing most oil for electricity generation.

Both the Energy Commission report and that of an independent economist, W.D.Nordhaus, project that a full nuclear phase-out would increase Sweden's carbon dioxide emissions by about 50% above the 1990 level. This is why European Union proposals for 1997 climate change negotiations allowed for a 5% increase in Sweden's emission levels due simply to the proposed Barsebäck reactor closure.

One problem with closing any reactor is that in the short run the replacement generation or imports would be fossil fuelled. Local back-up capacity is mostly oil-fired, as indicated in the 1996 figures when hydro production was much less than normal.

Sweden has its nuclear waste management well in hand. A dedicated ship moves the wastes from power plants to repositories. Some low-level waste is disposed of at reactor sites, some is incinerated at Studsvik. A final underground repository for intermediate-level waste (SFR) has been operating near Forsmark since 1988. The CLAB interim repository for spent fuel (treated as high level waste) has been operating since 1985 at Oskarshamn, and its 5000 tonne capacity is being expanded to 8000 tonnes to cater for all the fuel from all the present reactors. The spent fuel is stored under water in an underground rock cavern for some 40 years. It will then be encapsulated in copper and stainless steel canisters for final emplacement packed with bentonite clay in a 500 metre deep repository in granite.

The near-surface exploration target tonnage of the Tåsjö field is vast. This project underpins Mawson's developing uranium portfolio and holds the potential to host a world-class uranium deposit, with significant rare earths credits.