IN THE Companys News Release

Most investors read a company's news releases, but don't read between the lines to understand in which direction the business is heading. Too often, an organization tries to state everything in the headline and the first paragraph. Why? Since they know, as we do, that a lot of investors scan the headline, a few sentences and perhaps look at some drill intercepts or key technical data (which few really understand). Then, the investor looks at how the share price reacts to the news, rejoicing or complaining on a stock chat board. Often, key phrases or sentences are buried inside the release, sometimes close to the bottom. These can provide you a clue in regards to what is really happening with the company.

We pulled up some recent news releases of several uranium companies we've been following to help investors read between the lines. Only a keen, ruthless appraisal of each news release, or a series of their news releases, could give you a precise interpretation of how well the business is doing. Hopefully, the guidance which follows can help you better understand what is actually going with a company's plans.

Northwestern Mineral Ventures (TSX-V: NWT; OTCBB: NWTMF) announced on Thursday the completion of its airborne survey. In addition, it announced multiple potential uranium targets in the country of Niger (Africa). Reading an earlier interview we conducted with Dr. John North, a director of this company, he told us, "There look like no scarcity of drill targets on the concessions." So what was the big news? The CEO announced they had "identified several near-surface targets with significant uranium mineralization potential." That wasn't the news headlines. Not close. They already knew that!

The company covered 24,000 line kilometers, a lot more than 14,000 miles. Their first pass-through was cherry picking. The real news was buried in the 3rd paragraph, "...a second airborne survey to further delineate areas with strong uranium potential is expected to commence in the summertime." That should pick out the strongest targets for drilling at a later phase of the business's exploration. That line also told us that they had very encouraging news. If the second airborne confirms strong uranium potential, raising money to push the project through into drilling and advanced exploration should come more easily.

Forsys Metals Corp (TSX: FSY) announced on May 28th a new "detailed drilling" program on the business's Valencia uranium deposit in Namibia (Africa). Closely spaced reverse circulation drilling can help add more "measured" resource to the company's feasibility study. Increasing the measured resource can make it easier for the company to raise the money to develop a uranium mine or sell its deposit to a significant company. Sounds good, but a news article Forsys Metals posted on its website was of greater interest to us.

A major hurdle in further developing the low grade uranium deposits in Namibia is water. These projects come in a desert. You will need water, plenty of it, to mine. ON, MAY 26th, The Namibian newspaper ran a very encouraging article - very good news not only for the Rossing mine, but also for Forsys Metals and UraMin (which also hopes to start out mining uranium in Namibia). That which was the news? At a breakfast meeting on water conservation and management hosted by the Namibia Economic Society (NES) on Wednesday, NamWater CEO Vaino Shivute, announced, "The desalination plant is back up for grabs. We are looking at it again how to restart it, consider the problems of the past and learn from that." With the water issue coming to a possible resolution, we expect stronger fascination with Namibia.

Energy Metals Corporation (TSX: EMC.TO) announced it would commence trading on the Toronto STOCK MARKET on Thursday. EMC Chief Executive Paul Matysek's quote spelled it out,  that for that reason it would be easy for "... the Company to attain a broader base of individual investors, mutual funds and institutional investors." In other words, there will be less dependence upon the retail investor, and much more reliance on the big funds to pile into EMC shares. Of course, the tiny guy will join the party as well.

UR-Energy Inc (TSX: URE.TO) issued a series of news releases between June 5th and Thursday, announcing a variety of significant developments. First, they confirmed their uranium resources on the two primary properties, Lost Creek and Lost Soldier, in Wyoming, by filing National Instrument 43-101 documents. Both resources were higher than the historical resource estimates. Second, the company confirmed the leachability of uranium on its Lost Soldier property.

Why is that important? Without the ability to leach the uranium via an In Situ Recovery project, the company would have been forced to improve the money for a far more expensive open pit operation. In an earlier interview, Chief Executive Bill Boberg told us the permeability would be a "go, no-go" consideration on the project. It appears this can be a go. Thursday's news release confirmed that, but buried in the bottom of the news headlines release was a far more telling news item. The business is conducting environmental, hydrologic and engineering studies to "generate baseline data."

During our research in Wyoming, we discovered an organization must provide a minumum of one year of baseline data before it could submit its application for a permit to mine for the reason that state. The other piece of data in the news release showed UR-Energy has been focusing on this and likely to submit its application by mid 2007. Basically,  festival  is quickly moving forward to establish its In Situ Recovery operation.

Uranerz Energy (OTC BB: URNZ) issued a few telling news releases, which may explain the direction where they are heading. On June 5th, the company announced a new Chief Financial Officer. URNZ also announced it had closed a financing, bumping up their cash to just under $12 million. URNZ LEADER Glenn Catchpole told us he hoped to launch his first In Situ Recovery operation for about, or less than, $10 million. This can be a good sign. But, it was the next day's news release which confirmed the earlier news and reinforced where in fact the company is going. The company announced the appointment of three independent directors to its Board. All three were appointed to the audit committee. Two are accountants with impressive track records; the third comes with an MBA from the University of Western Ontario, among North America's top MBA schools. How do we interpret this news release? URNZ probably plans to go from the lowly over the counter bulletin board to a far more senior exchange: Amex or NASDAQ Small Cap would be our guess.

What do you do in regards to a company that hasn't been issuing a flurry of news releases? Take Strathmore Minerals (TSX: STM; Other OTC: STHJF) as an example. There are developments, however the news stream has been fairly quiet. Have they arrived at a standstill? No, quite contrary is true.

We did what any investor should do in the lack of major news. We found the telephone and called their investor relations department. During a brief chat with Craig Christy, the business's spokesman, we asked concerning the company's cash situation. He responded, "We have about C$0.55/share in cash." Predicated on Thursday's closing price, that comes to more than 30 percent of what the market is valuing STM. That's UP from C$0.37/share earlier this year. STM has plenty of cash and is in excellent financial shape.

We looked through our copy of the Hargreave Hale Report, entitled, "Too Hot to take care of or Just Warming up?" That is a leading British financial institution, located in London. They are a significant shareholder in STM, plus they have already been recommending STM shares. On page 32 of their document, we reviewed a great financial analysis of 33 Canadian and Australian uranium producers and development companies. The bar chart depicted the Uranium Enterprise Value (UREV) per Risk Adjusted pound of U3O8 Reserves and Resources of those thirty-three companies. A horizontal line crossed the chart, showing "fair value" around US$4 million for each company's UREV per pound adjusted.

It was interesting to study how STM stacked against many of the most popular uranium companies. Companies, such as Mega Uranium (TSX: MGA) rated at about US$28 million - about 700 percent ABOVE the Hargreave Hale "fair value" analysis. Crosshair Exploration and Mining traded about 500 percent of its fair value. UEX scored about twice above its fair value. Companies such as Uranium Resources, Western Prospector, Paladin Resources and UrAsia Energy scored at or very near their fair value. Strathmore Minerals had the cheapest fair value rating - a complete steal at about 30 percent of its fair value. About 16 companies traded above their fair value, some very much above the Hargreave Hale fair value analysis. It had been enlightening to find Strathmore was in the company of producers such as for example ERA of Australia, IUC, Uranium One and Denison being an undervalued uranium company. In cases like this, it was probably the most undervalued of all 33 companies analyzed by the town of London financial institution.

We also found out that, yesterday, Strathmore Minerals president David Miller presented at the invitation-only Raymond James In-Situ Leach Uranium Mini-Conference in Toronto and Montreal on June 7th and 8th. You can go to the Raymond James website for the webcast of David Miller's presentation, but it has restricted access. Others presenting were Uranium Resources and Energy Metals. We were fortunate to examine David Miller's PowerPoint presentation. One word describes Miller's presentation: Wow! It really did pack a punch. We heard Raymond James could be releasing these presentations to the general public in the near future.

Sometimes, when there is too little news, one can figure out how to dig around and find an organization can be doing quite well. In other instances, one can study the news releases and try piecing together where in fact the company is heading. We hope this guidance helps you become a more sophisticated investor. We neither recommend stocks nor give investing advice. As always, speculating on natural resource companies can be very risky and suitable limited to certain investors. One should always check with their registered financial advisor in what is suitable or not for one's investment decisions.