VANCOUVER, British Columbia, May 24, 2006 (PRIMEZONE) -- As part of its commitment to keep investors informed of its status, activities and properties, Falcon Energy, Inc. (Pink Sheets:FCYI) is providing this investor update on the Uranium sector and its potential effect related to the Falcon Energy, Inc. Huld License Area mineral exploration property (license No. 9997X).
Despite uranium spot prices in 2000, that touched lows of less than $7.00 U. S. per pound for U3O8, the spot price has since increased to over $37.00 U.S. per pound (January 30, 2006), and the long term uranium market outlook remains positive with increased consumption, and future downtrend of secondary uranium sources.
With the lead time necessary to find and develop new mines, the projected gaps in both supply and future depletion of existing high grade uranium deposits means that exploration needs to take place in the shorter term. The recent concern over petroleum energy security and supply, and the corresponding interest in nuclear power as a reliable and clean source of energy has heightened the awareness that new uranium supplies will be needed in the long term. Most deposits generally have much lower grades than the high grade deposits exploited previously, and consequently it is anticipated that the new supply will come at higher cost, which is expected to put further upward pressure on the uranium price over the next ten years and increase both the need to find and exploit additional high grade deposits. Given the historical presence of uranium in Mongolia and the Falcon Energy Inc. Mongolian properties, especially the Huld License Area, Falcon Energy Inc. is well positioned to capitalize on these potential ongoing trends.
Uranium Sector Background
Sources
Uranium supply sources include primary mine production and secondary sources. Since 1985, western world uranium mine production has been less than utility uranium consumption, and is currently less than half of consumption. The resulting shortfall has been covered by several secondary sources including excess inventories held by utilities, producers, other fuel cycle participants, reprocessed uranium and plutonium derived from used reactor fuel, and uranium derived from the dismantling of Russian nuclear weapons. These sources will decline in importance as excess inventories and recycled uranium from nuclear weapons are progressively consumed over the next decade, resulting in the need for further primary mine supply.
Nuclear Industry
The principal use for uranium is to fuel nuclear power plants for the generation of electricity, which currently produce approximately 17% of the world's power from more than 400 nuclear reactors. In France, for example, 78% of its electrical output is generated by nuclear reactors (2003).
This media release may contain forward-looking statements regarding, but not limited to, management, market potential, distributor success, market size, international sales, marketing, future events and performance of the Company which involve risks and uncertainties that could materially affect actual results. Investors should refer to documents that the Company intends to file with the SEC for a description of certain factors that could cause actual results to vary from current expectations and the forward-looking statements contained in this media release.