Kyushu Electric Power Company Incorporated has decided to participate in a new uranium mine development and production project promoted by Kazatomprom, a state-owned nuclear fuel enterprise in the Republic of Kazakhstan. Kyushu Electric Power Company has acquired 2.5% indirect ownership interest in the project companies of Kyzylkum LLP(*1) and Baiken-U LLP through an investment in a Kazatomprom's related company which has ownership and control over Kyzylkum LLP and Baiken-U LLP from Marubeni Corporation.

By participating in this uranium mine project, Kyushu Electric Power acquires the right to obtain uranium concentrate for the first time. Five Japanese enterprises, Marubeni Corporation, The Tokyo Electric Power Company Incorporated, Chubu Electric Power Company Incorporated and Tohoku Electric Power Company Incorporated, have already participated in the project.

This project entails the development of the Kharassan uranium mine in southern Kazakhstan (Kyzylkum LLP is developing the Kharassan-1 uranium deposit and Baiken-U LLP is developing the Kharassan-2 uranium deposit). The project is targeting the start of test production from 2007 with a projected ramp to a full annual production of approximately 5,000MTU (combined by around 2014 and continued production until around 2050. The combined potential uranium production could be over 160,000MTU (*2). The six Japanese enterprises including Kyushu Electric Power Company have the right to obtain up to an aggregate annual quantity of 2,000MTU of the uranium concentrate produced from the two deposits. As Kyushu Electric Power's investment ratio is 2.5%, we have a prior right to obtain 50MTU of the uranium concentrate annually.

Kazakhstan has the world's second largest uranium reserve. In April 2007,the government-private joint mission led by Minister Amari of the Ministry of Economy, Trade and Industry visited Kazakhstan (the President Manabe who was then- Director joined the mission) and confirmed the strengthening of the Kazakhstan-Japan relationship on securing the uranium resources and technical cooperation.

From the perspective of the stability and economy of nuclear power generation, Kyushu Electric Power considers it an important task to secure a stable and long-term supply of uranium. We therefore view this participation in the project in the Republic of Kazakhstan as a way to further diversify the supply sources and stabilize our long-term uranium supply.

*1 LLP: Limited Liability Partnership
*2 The potential uranium production is an estimate, and does not represent a proven recoverable reserve.