Toshiba signs agreement with GoviEx Uranium to secure supply of concentrate for use in fuels for nuclear power plants

Toshiba signs agreement with GoviEx Uranium
to secure supply of concentrate for use in fuels for nuclear power plants

20 Apr, 2012

TOKYO, JAPAN — Toshiba Corporation (TOKYO: 6502) announced today that it has advanced its strategy of securing rights to acquire uranium for use in nuclear fuels that it supplies to energy utilities around the world with the completion of a convertible debt-financing agreement with GoviEx Uranium Inc., a privately held, Canada-based uranium development and exploration company.

Toshiba's agreement with GoviEx includes:

• Utilizing uranium provided by Advance Uranium Asset Management Ltd^[1], a Toshiba Group company, to finance a US$30 million (approx. 2.4 billion yen) purchase of senior secured convertible bonds issued by GoviEx, and loaning 0.2 million pounds (equivalent of US$10million) of uranium to GoviEx to support the company's operations through to the start of uranium extraction and processing. This agreement will not impact on Toshiba's cash flow this year.
• A 14-year off-take agreement under which Toshiba has the right to acquire a significant portion of the projected annual production of uranium from GoviEx's planned Madaouela Project in Niger, West Africa.

Production at the Madaouela Project is expected to begin in 2017 and Toshiba's off-take rights to uranium concentrate will become effective in 2020, when output is expected to reach its peak capacity of more than 2.7 million pounds of uranium concentrate per year. The annual off-take of concentrate will be approximately 0.6 million pounds a year, equivalent to the annual fuel requirement of one 1,000-megawatt-class nuclear power plant. Sales of the uranium will be handled by Advance Uranium Asset Management Ltd, a UK-based Toshiba Group Company.

GoviEx holds the rights to 103 million pounds of uranium resources at the Madaouela project, located near Arlit in the Republic of Niger, one of the most significant sandstone-hosted uranium deposits in the world. Building a long-term strategic partnership with GoviEx and securing the additional supply of uranium will enable Toshiba to continue the diversification of its procurement of uranium resources for the nuclear fuels that Toshiba supplies to operators of nuclear plants.

Outline of GoviEx Uranium Inc.

Note:

[1]

Established in 2010 as a joint venture 60% owned by Toshiba and 40% by Westinghouse Electric Company, a Toshiba Group company, UK-based Advance Uranium Asset Management Ltd. is an industry leader in the field of nuclear material supply and transportation. The company integrates Uranium Asset Management, a Westinghouse subsidiary established in 1996.

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