COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jan. 31, 2012

COMMITMENTS AND CONTINGENCIES [Text Block]

NOTE 12:            COMMITMENTS AND CONTINGENCIES

The Company is currently renting or leasing office premises in Arizona, New Mexico, Texas and Vancouver, B.C., Canada with total monthly payments of $20,950. The office lease agreements in Arizona, New Mexico and Texas are leased and will expire in October 2012, October 2012 and August 2012, respectively. The office lease agreement in Vancouver is on a month-to-month basis. The Company also has consulting agreements which will expire in less than one year.

The aggregate minimum payments over the next five years are as follows:

July 31, 2012	$	331,938
July 31, 2013		71,661
July 31, 2014		10,121
	$	413,720

The Company is committed to pay its key executives a total of $766,191 per year for management services.

The Company entered into a multi-year uranium sales contract in June 2011, as amended in January 2012, requiring the delivery of a total 320,000 pounds of U ₃ O ₈ by the Company over a three-year period starting in August 2011. The sales price will be based on published market price indicators at the time of delivery. During the six months ended January 31, 2012, the Company fulfilled its first-year delivery obligation under this contract.

On February 23, 2011, the Company received notification of a lawsuit filed against the Company related to the acquisition of STMV for an unspecified amount. Pursuant to the acquisition terms, the claimant is entitled to the difference between the estimated $2.2 million in reclamation costs associated with Mt. Lucas and the actual reclamation costs associated with Mt. Lucas, provided the actual costs are less than the $2.2 million, subject to the receipt of a clearance certificate from the Texas Commission on Environmental Quality which has yet to be issued. The Company believes it has complied with all of the terms related to the acquisition of STMV as current reclamation costs associated with Mt. Lucas are greater than $2.2 million. The Company intends on disputing any and all claims under this lawsuit. Any potential judgment received against the Company and awarded to the claimant is expected to be immaterial. At January 31, 2012, the claimant has engaged a firm to perform an audit on the expenses associated with Mt. Lucas.