The Company was previously issued three Permis Recherches covering 32 Carres or an aggregate of 200 sq. km. in the Antisarable Zone. One Permit is situated in the lacustrine basin of Antsirabe approximately 180 km. south of Antananarivo. The other two are in relatively close proximity within the pegmatite fields of Vavavato and in the historic uranium area of Vatovory. The Company’s claims were among the first to be obtained in the recent surge of interest in uranium exploration in Madagascar, using criteria including known radioactive anomalies, earlier prospecting successes, old drill results from French studies, and past mining of uranium and thorium. In addition to the Permis Recherches, Environmental Permits on Forms PEE-RIM and PEE-RIS were granted to the Company in order to cover all anticipated drilling, trenching, pitting, road-building, camp establishment and other exploration activities presently contemplated in the initial phases of exploration in the Zone.

The Company has assembled a team of approximately 10 geologists and senior technicians on the ground in the Antsirabe zone, headed up by J. Thomas Nash (Ph.D. in Geology 1967, Columbia University), who has some 40 years experience in the geology and genesis of uranium deposits of the U.S., Australia and Canada. The team is endeavoring to identify prospective target areas with potential to host commercial uranium deposits. The Company has recently opened a satellite exploration office in Antsirabe to facilitate operations in the region.

The immediate study area coincides with zones of historic prospecting and small-scale mining of radium and uranium in pegmatites and in lacustrine sediments. These known prospects are being examined by the Company’s field team, and adjacent areas will be studied for possible uranium deposits not previously considered by former exploration programs.

The Vavavato area north and west of Antsirabe contains many kinds of granitic rocks and pegmatites. The granitic rocks will be examined for structures and alteration zones favorable for the occurrence of intra-granitic vein deposits of the French type, or for disseminated uranium occurrences with similarities to the large bulk-mined deposit at Rossing, Namibia.

Tertiary to Quaternary volcanic rocks of several types occur in a major continent-scale rift zone on the eastern side of the study area. Recent academic studies of the tectonic setting of the volcanic rocks clarify their evolution and suggest zones of rhyolite and lacustrine volcaniclastic rocks favorable for several types of uranium deposits. One area within the Company’s license, Vinaninkarena, is well known as the site of a radium and uranium deposit in lacustrine rocks, but other volcanic rocks and lacustrine basins have received little exploration attention.

On January 25, 2005, the Company entered into a preliminary agreement with OMNIS for the establishment of a joint venture with respect to four prospective uranium properties in Madagascar. Accordingly, the Company organised a new operating subsidiary named PAM Atomique Sarl, of which 20% is to be owned by the Malagasy State through OMNIS and 80% by the Company. The Company's formal Exploration Program and Budget was approved by OMNIS in July. Execution by the Company of agreements concerning environmental controls and adherence to international standards for peaceful use of nuclear substances were further conditions precedent, now met, to moving forward with the joint venture's uranium exploration and development activities. Work in the various perimeters will commence on a staggered basis following Malagasy State approval of the joint venture and granting of all requisite permits.