Extract Progressing Husab Financing Negotiations

Extract Resources Ltd. (EXT.AU) said Friday negotiations to secure funding for its US$1.66 billion Husab uranium project in Namibia, one of the world's largest unmined deposits of the fuel, are progressing well.

Andrew Penkethman, manager of projects at the Australian company, said Extract is confident a study of Husab's resource will further extend the expected life of a mine on the site from an estimated 20 years and operating costs will decline.

"Project financing discussions are going well and there is a real appetite out there to be involved in this giant, large-scale, low-risk, high-grade project," Penkethman said in a statement released following a presentation at an Africa-focused mining conference in Perth. "Once we get the mining license, we will be able to accelerate those financial negotiations."

Husab, which has a total resource inventory of 513 million pounds with a further resource upgrade scheduled for the first half of next year, is expected to produce 15 million pounds of uranium oxide a year, Extract said.

Extract is almost 43% owned by Kalahari Minerals PLC (KAH.LN) and 14% by Rio Tinto PLC (RIO).

-By Robb M. Stewart, Dow Jones Newswires; [phone]; [e-mail]