Rio Tinto makes recommended all-cash offer of C$4.15 per share for Hathor Exploration

 Rio Tinto, through its indirect wholly owned Canadian subsidiary ("Rio Tinto"), and Hathor Exploration Limited, has agreed that Rio Tinto will make an offer to acquire all of the common shares of Hathor for C$4.15 in cash per common share.

The value of the Rio Tinto offer is approximately C$578 million on a fully diluted basis. Rio Tinto and Hathor have entered into a support agreement for the Rio Tinto offer.

The Rio Tinto offer represents a premium of approximately 11 per cent to Cameco's unsolicited offer for Hathor of C$3.75 per common share and a premium of 55.4 per cent to Hathor's closing share price of C$2.67 on the Toronto Stock Exchange on 25 August 2011.

Rio Tinto's strategy is to invest in the primary uranium producing regions of the world to develop long-life, low-cost operations. The acquisition of Hathor provides an opportunity to expand the Rio Tinto presence in the Athabasca Basin which currently provides approximately 20 per cent of global uranium production.

.Rio Tinto intends to accelerate the investigation and assessment of the exploration properties established by Hathor at Roughrider - an emerging significant high-grade deposit - to unlock their full potential, consistent with its global safety and community standards. Rio Tinto's investments in Saskatchewan will support the diversification and development of the regional economy, building on its presence in Canada.