Converse Uranium Property
and Sand Creek Joint Venture:

In January 2006, New Horizon signed an earn-in agreement with Canyon Resources Corporation forming the Converse Uranium Joint Venture.  The project focuses on the White River Formation in Converse County, Wyoming.  As shown in Figure 1-1.   New Horizon is the operator for exploration, development and management of the Joint Venture, and as such, will earn a 50 percent ownership in the venture subject to an initial expenditure of US$ 1 million within the first three years.  With investments totaling US$ 2 million over the first five years New Horizon will earn a 70 percent interest in the project.  An additional five-percent may be earned by New Horizon funding the completion of a feasibility study.

Acquired in 2005 by Canyon, the mineral rights are located in three separate areas along the southern end of the Powder River Basin near the town of Douglas, Wyoming. 

Within the project area, the majority of the mineral rights have been severed from the surface ownership.  Acquisition of mineral rights to date has been confined to lands that could be located by claim staking due to federal mineral ownership. The three separate areas are identified as Shawnee, Scott Ranch and South Douglas. Earth Sciences, Inc., Canyon and other parties originally identified these areas in the mid-to late 1970’s, as part of an extensive uranium exploration program. Prior work consisted of:

    1. Regional mapping of known uranium occurrences;
    2. Mapping of radioactive anomalies and iron-oxide anomalies;
    3. Analysis of ground water samples for uranium and dissolved radon;
    4. Exploration drilling; and
    5. Reserve drilling.
The Converse Uranium JV area hosts a known uranium deposit that has the potential for mining by in-situ methods. The project area also has potential for additional uranium deposits, as several other uranium roll fronts have been identified.1

In August 2006, the Converse JV partners formed a second joint venture with High Plains Uranium Inc., a wholly-owned subsidiary of Energy Metals Corporation.  This new venture covers four townships within the Converse Uranium JV area of interest and is known as the Sand Creek Joint Venture.  As shown in Figure 1-2.  High Plains earned a 30% interest by vending in certain properties with the Converse partners owning the remaining 70% interest.  New Horizon will be the operator of the Sand Creek Joint Venture.

To date, the Sand Creek Project controls 263 federal locate claims and various State and private leases totaling 12,228 surface acres and 10,972 acres of mineral rights covering roughly the same area.  A 30-hole drill program commenced in November 2006.  Of the 30 drill holes completed to date, 26 holes encountered intercepts of uranium mineralization indicative of a “roll front” style uranium deposit.  In addition, the drill holes have provided considerable additional information regarding the possible location of the uranium-bearing roll front, its apparent configuration and host rock.  Uranium mineralization has been previously identified in sediments of the White River Formation that trends through the Sand Creek JV area.  The second drilling phase of 16 additional rotary drill holes totaling approximately 11,700 feet has been completed as of July 2007. While no in situ recovery (“ISR”) amenability tests have been conducted, we are encouraged by the lithology in the holes and the ‘grade thicknesses’ encountered in the drilling. Grade thicknesses ranging from 0.052 to 1.190 GT were encountered in the more favorable “B” zone sands in 11 of the phase two set of 16 holes. Three of the drill holes are ‘twins’ of earlier Canyon Resources holes, with coring of selected intervals in zones which contain mineralization grades and host rock characteristics potentially amenable to ISR methods. The fourteen holes drilled late in 2006 of phase one contain GT’s ranging from 0.085 to 0.931, and six of these intercepts were in the “B’ sands. Of the total 30 holes drilled to date, 26 were found to contain significant anomalous uranium values.

The technical information presented has been reviewed by William R. Wilson (Aus.I.M.M.), New Horizon's President and Chief Operating Officer and a "qualified person" as defined in National Instrument 43-101.

1Such information has been derived from the Company's NI 43-101 Report as filed on SEDAR.

The “Technical Report on the Converse Uranium Project, Converse County, Wyoming” dated May 23, 2006, revised December 22, 2006 (the “Converse Report”) as prepared by Gustavson Associates LLC (“Gustavson”) has been filed on SEDAR and is available for viewing under the New Horizon Uranium Corporation Issuer Profile at www.sedar.com.

The “Technical Report on the Sand Creek Joint Venture, Converse County, Wyoming” dated July 10, 2006, revised December 22, 2006 (the “Sand Creek Report”) as prepared by Gustavson. The Sand Creek Report has similarly been filed on SEDAR and is available for viewing under the New Horizon Uranium Corporation Issuer Profile at www.sedar.com.