The Kaibab Joint Venture

On July 1, 2006, Takara signed a joint venture agreement with DIR Exploration, Inc. (“DIR”), whereby Takara acquired an option to acquire up to a 90% interest in the Kaibab Joint Venture. The Kaibab Joint Venture project is comprised of both advanced mineral properties and newly acquired grass roots mineral claims, prospective for uranium breccia pipes in the “Arizona Strip”.

Takara has been developing its interest in the Kaibab Joint Venture since the summer of 2006. The high-grade breccia pipe uranium district of northern Arizona is relatively under-explored and is believed to be the only North American region to host uranium-mineralized solution-collapse breccia pipes. The Kaibab Joint Venture holds an aggressive land position in the region, and the Company is currently focused on expediting the Phase II Exploration Program – which will lead into a 2008 drilling campaign.

The Kaibab Joint Venture initially had a land position of 48 lode mining claims prospective for uranium breccia pipe mineralization. As of the end of this past August, the Kaibab JV Project consists of 590 lode mining claims, which were acquired in 2006 and 2007 by direct staking, based on a selective filtering process, incorporating both geochemical and structural criteria.

There are currently 7 drill-ready targets on the project, and the Company anticipates that the Joint Venture will have prepared 30 additional targets for drilling by the end of 2008.

Breccia Pipes in the Arizona Strip
DIR Exploration, Inc.