Areva - Reference Document 2016

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BUSINESS OVERVIEW

6.4 Operations

The mission of the Resources and Reserves Committee, which reports to Management, is to validate the schedule for updating resources and reserves; to validate the resources and reserves reported by AREVA each year; and to ensure that the means, organization, and internal and external estimating methods enable a comprehensive and objective estimate of resources and reserves, in accordance with international practices. In Canada, the group’s reserves are the subject of independent estimates or audit reports by the shareholders of the companies operating the mines. In 2010, AREVA decided to conform to international standards for the classification of its resources and reserves. At December 31, 2016, 100% of its resources and 99% of its reserves were in conformance. Definition of resources Mineral Resources: Concentrations whose form, quantity and grade or quality are such that they present reasonable prospects for economic recovery. The location, quantity, grade, geological characteristics and continuity of the mineral resources are known, estimated, or interpreted based on specific geological evidence and data. Mineral resources are subdivided into resources that are measured, indicated and inferred. Measured Resources: Share of mineral resources for which the characteristics (1) are known such that they can be estimated with a high level of confidence to enable appropriate application of technical and economic parameters to support production planning and assessment of the economic viability of the deposit. The estimate is based on detailed, reliable information and a sufficient volume of information to confirm both the continuity of the geology and the grades. Indicated Resources: Share of mineral resources for which the characteristics (1) are known such that they can be estimated with a sufficient level of confidence to enable appropriate application of technical and economic parameters to support mining operation planning and assessment of the economic viability of the deposit. The estimate is based on detailed, reliable information and a sufficient volume of information to issue a reasonable assumption on the continuity of the geology and the grades. Inferred Resources: Share of mineral resources for which the quantity and grade can be estimated based on geological evidence and limited sampling, and which can be reasonably used for assumptions of geological continuity and grades, without however verifying them. Definition of reserves Mineral Reserves: Economically and technically recoverable share of measured or indicated mineral resources, as demonstrated by at least one preliminary feasibility study or mining project. The study includes adequate information about mining and processing operations, metallurgy, economic aspects and other relevant factors demonstrating that mining is profitable at the time the report was written. Mineral reserves include dilution factors and the allowance for mining losses which may be incurred during mining operations. Proven Mineral Reserves: Economically and technically recoverable share of measured mineral resources. Probable Mineral Reserves: Economically and technically recoverable share of indicated mineral resources and, in some cases, of measured mineral resources.

URANIUM PRICE INDICATORS 2010-2016 (IN CURRENT US DOLLARS)

75 USD/lb

60

45

30

15

0

Jan.13

Dec.16

Jan. 10

Jan. 11

Jan. 12

Jan. 14

Jan. 15

Jan. 16

Spot Long term

Sources: UxC, Uranium market outlook Q4 2016. The spot market, which covers approximately 15% of uranium supply, varied between $18 and $34 per pound, ending the year at $20 per pound (-40%). These historically low levels are explained by an imbalance between supply and demand which was accentuated in 2016 by the drop in Chinese imports. The long-term indicator, which reflects the signature of multi-year contracts for deliveries starting a few years from now, fell in 2016, ending the year at $30 per pound versus $44 per pound at the end of 2015. With market indicators in decline since Fukushima, producers have announced numerous project postponements, closures and/or the mothballing of producing mines, and reduced production, particularly Cameco and Paladin in 2016. This restructuring is expected to continue in the coming years. Longer term, the market is still expected to grow, with demand 25% higher in 2025 than in 2015 according to the World Nuclear Association (WNA), led in particular by the restart of the Japanese reactors and growing reactor requirements from the Chinese nuclear program. Rising demand is expected to raise market prices and enable new projects to be launched. Uranium The mineral reserves of AREVA’s deposits totaled 181,875 metric tons of uranium at December 31, 2016 (AREVA’s equity share), versus 181,189 metric tons of uranium at December 31, 2015 (AREVA’s equity share). The volume of the best-known resources (measured and indicated resources) was 124,756 metric tons of uranium at December 31, 2016 (AREVA’s equity share), versus 98,641metric tons of uraniumat December 31, 2015 (AREVA’s equity share). The volume of inferred resources available to AREVA totaled 151,123 metric tons of uranium at December 31, 2016 (AREVA’s equity share), versus 178,205 metric tons of uranium at December 31, 2015 (AREVA’s equity share). ESTIMATING METHODS AREVA’s resources and reserves are estimated based on data gathered by the group’s teams or taken from audited reports. An internal group department is in charge of these estimates. Resources, reserves and production sites

(1) Tonnage, grade, density, form and physical characteristics.

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2016 AREVA REFERENCE DOCUMENT