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Quantification of the Potential Impact on Commercial Markets of Introduction of the Enrichment Services Component of DOE Low Enriched Uranium Inventory During Calendar Year 2013

This report presents the results of a business analysis performed by Energy Resources International, Inc. (ERI) of the potential impact on the commercial enrichment market of the transfer of the enrichment services component (Separative Work Units or SWU) contained in DOE low enriched uranium (LEU) inventory during 2013. Under this transaction, 299,000 kg SWU would be introduced into the commercial market, but no transfer of natural uranium to the commercial market would take place.

ERI does not believe that either (i) the potential price effect associated with the transfer by DOE of an additional 0.3 million SWU to USEC during 2013; or (ii) the quantities of domestic enrichment services, if any, that might be displaced due to the proposed DOE transfers are of a magnitude that they would constitute a material adverse impact on the domestic enrichment industry, taking into account the sales of uranium under the U.S.-Russia Highly Enriched Uranium Agreement (HEU Agreement) and the Suspension Agreement.