UraniumSA : 170131_quarterly activities report.pdf

ASX ACTIVITIES REPORT 3 months ended: 31 Dec 2016

31 January 2017

UraniumSA Limited ("UraniumSA")

ASX Code: USA

ABN 48 119 978 013

Ground Floor

28 Greenhill Road

Wayville SA 5034

Phone [phone]

Fax [phone]

www.uraniumsa.com.au [e-mail]

BOARD OF DIRECTORS

Alice McCleary Chairman Martin Janes Director David Paterson Director &

Acting CEO

Russel Bluck Geoscience Manager

PROJECTS

South Australia

Whymlet EL 5865

Lock ELA 2015/00114

Sheoak Hill ELA 2015/00113 Muckanippie EL 5858

ISSUED CAPITAL

31 Jan 2017

Shares on Issue: 272,670,536 Quoted shares: 272,670,536 Unlisted Options: nil

INVESTOR INQUIRIES

[e-mail]

Inquiries regarding this report and company business may be directed to:

David Paterson - Acting CEO

[phone]

[phone]

VISIT OUR WEBSITE

www.uraniumsa.com.au

EXPLORATION & TENEMENT UPDATE

EL 5865 Whymlet was granted by the regulator for a term of 1 year commencing on 1 November 2016.

Work during the quarter comprised continued review of past exploration results and modelling that might focus and assist ongoing exploration activities.

CORPORATE

New opportunities

Efforts by the company were ongoing during the quarter seeking other projects and opportunities that might add significant value for shareholders. Projects involving minerals and energy other than uranium were sought and evaluated as part of a diversification strategy. Opportunities outside the resources sector are also being targeted.

New ASX rules effective 19 Dec 2016

After many months of consultation with industry and market participants, on 2 November 2016, ASX released its new listing rules for entities seeking admission to the official list of ASX, including companies like UraniumSA seeking new assets that may require re-compliance with Chapters 1&2 of the Listing Rules. The new listing rules came into effect on 19 December 2016 and now provide detail and certainty to any back door listing considerations and process, which the company welcomes.

FINANCE

Cash at the end of the period was $165,000

The convertible debt facility outstanding remains at $135,000. Facility terms remain unchanged and include conversion to ordinary shares at the lenders discretion on or before the maturity date of 3 May 2018.

Shareholders approved the placement of 145 million new shares at the Company's Annual General Meeting held on 24 November 2016. This placement capacity is in addition to that under Listing Rule's 7.1 (15%) and 7.1A (10%) and requires completion within 3 months of the approval.

Exploration, staffing and administration expenditure for the period was

$108,000.

Estimated expenditure for the December 2016 quarter is $87,000 and reflects the reduced number of tenements and activities following the demerger of Samphire Uranium Limited in June 2016.

1

UraniumSA exploration assets

MUCKANIPPIE - EL 5858 is owned 100% by Fatjack Pty Ltd, a wholly owned subsidiary of UraniumSA and was granted for 2 years with an expiry of 23 February 2018. The tenure covers the Wigetty prospect which is an ilmenite-magnetite-apatite deposit, the historic Malbooma gold working and other un-named gold prospects, and various base metal and rare earth element prospects. UraniumSA has also progressed exploration on prospects referred to as Satisfaction Bore and White Nose Bore.

Activities

No field work was carried out during the period. Identification of potential JV partners continued. Approaches are planned in the current quarter now that the title has been renewed.

WHYMLET - EL 5865 is owned 100% by Boston Minerals Pty Ltd (Boston), a wholly owned subsidiary of UraniumSA and was issued for an initial term of 1 year commencing on 1 November 2016.

The area covers basement complex and cover sequence targets which are prospective for IOCGU, black-shale hosted and unconformity styles of uranium and base metal mineralisation. It sits on the western margin of the Cariwerloo Basin (refer page 5) underlain by a Hiltaba Granite intrusive and a review of past exploration data (SARIG database) has been completed. A total of 18 widely spaced holes have previously been drilled in two separate programmes within the project area. Three of these historic holes intersected elevated base metals within Tarcoola Sequence black shale and are regarded by USA as potentially anomalous (MER1, KIN2, KIN7, below). The raw data reported here is extracted from the SARIG data base, it is historical in nature, and USA has not carried out any physical checks or check assaying.

Anomalous zones within the Tarcoola Sequence black shales include:

MER1: 8m @ 1149ppm Pb and 1755ppm Zn from 78m and 12m @ 3360ppm Pb and 5434ppm Zn (max 1.3% Zn and 0.54% Pb) from 34m

KIN2: 2m @ 430ppm Zn and 390ppm Pb

KIN7: 5m @ 301ppm Pb and 2173ppm Zn

WHYMLET - EL 5865

Geological Interpretation overlain on State TMI image. Showing the interpreted extent of Hiltaba granite below cover sequence, basin margin structures and the location of metal anomalous drill holes.

Activities

Work was carried out during the period continuing interpretation of past exploration results with a view to outlining an initial exploration program.

SHEOAK HILL and LOCK - ELA's 2015/00113 and 2015/00114 were made by Boston. Negotiations with the regulator to reduce the application areas and amalgamate the applications continue. The area covers the Driver River airborne radiometric anomaly and the titles are prospective for unconformity style uranium mineralisation.

Driver River prospect

Composite N-S cross-section across the Gawler Craton South Australia highlighting the Proterozoic Unconformity and comparing it to a hypothetic cross-section of the Athabasca Basin and its uranium deposits and recent discoveries.

Activities

No field work was completed during the period. Interpretation of past exploration results with a view to outlining an initial exploration program, post title grant, continued.