Power Resources Withdraws from Ad-Hoc Committee of US Uranium Producers

Denver, Colorado, USA, March 1, 1999

Power Resources, Inc. (PRI) announced today that it has withdrawn from the ad-hoc committee of US uranium producers. PRI's president and CEO, Crew Schmitt, will no longer be involved with the committee's ongoing activities. The ad-hoc committee has, since 1991, pursued anti-dumping actions in a number of US Department of Commerce/International Trade Commission cases against several republics of the former Soviet Union for the alleged dumping of uranium products into the United States market.

In a letter to the ad-hoc committee membership, Schmitt explained PRI's actions and his belief that the anti-dumping investigations and resulting suspension agreements involving the former Soviet republics were warranted in the context of the unprecedented event that was the break-up of the Soviet Union. That event was characterized by undisciplined sales of uranium from non-market economies which, if left unchecked, would have decimated the US industry to the detriment of utilities longer term supply alternatives.

Schmitt stated that "while the future may not be more secure for the US producer," he believes that "the success or failure of primary suppliers, whether they be in the United States, Russia, Kazakhstan, or Uzbekistan, will be measured more by technological innovation, production economics, and mutually beneficial long-term relationships with customers. We welcome this competitive challenge and are motivated by it."

PRI will continue to focus its time and resources on its operations with the objective of lowering units costs of production to remain a competitive and reliable source of uranium.

PRI and its affiliated companies, Geomex Minerals and UUS Inc. (formerly Uranerz USA), are the largest producers of uranium concentrates in the United States and accounted for 36% of domestic production in 1998 through operations in Wyoming and Nebraska.

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