Washington (Platts)--30May2007

While the spot price of uranium is likely to rise sharply after two
auction-like sales are completed Wednesday and Friday, the two leading
price-reporting firms late Tuesday were keeping their prices at last week's
levels.

     Ux Consulting maintained its price at $125 per pound of U3O8, while
TradeTech kept its price at $122/pound U3O8. 

     The first auction this week is by Texas-based Mestena Uranium, which is
accepting bids Wednesday for delivery of 100,000 pounds of U3O8 in June. The
second auction is set for Friday by Georgia-based trader American Fuel
Resources, which is said to be acting on behalf of an investment fund. In this
auction, AFR has told potential buyers that it has available for sale 200,000
pounds of U3O8 and 100 metric tons of uranium as UF6 (the equivalent of about
260,000 pounds of U3O8).

     Ux Consulting, in its weekly report, did raise its long-term price by $10
to $95/pound. But Ux Consulting said this base-escalated price was just one
component of pricing mechanisms being offered by sellers. Ux also noted that
its long-term price represented the "bottom end" of a range of base-escalated
offers.