OTCPicks.com Stocks to Watch for Wednesday, April 15th

4/14/2009 6:29 PM

Penny Stocks by: OTC Picks

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OTCPicks.com Stocks to Watch for Wednesday, April 15th VSPC, CEGE, AXPW, PCAI, ARTC, DNN Our Stocks to Watch tomorrow include VIASPACE Inc. (OTCBB: VSPC), Cell Genesys Inc. (Nasdaq: CEGE), Axion Power International Inc. (OTCBB:

AXPW), Petroleum Consolidators of America Inc. (OTC: PCAI), ArthroCare Corp. (OTC: ARTC) and Denison Mines Corp. (AMEX: DNN).

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VIASPACE INCORPORATED (OTCBB: VSPC) "Up 108.70% on Tuesday" Detailed Quote: http://www.otcpicknews.com/otpmail/link.phpM191&N9&L2 VIASPACE, Inc. commercializes space and defense technologies from NASA and the department of defense into hardware and software products in the United States. The company provides disposable fuel cartridges and intellectual property protection for manufacturers of direct methanol and other liquid hydrocarbon fuel cells; and develops products and services based on inference and sensor data fusion technology. It also develops mass spectrometry technology that improves the application of mass spectrometry for industrial process control and environmental monitoring, and produces detection systems for homeland security, as well as holds patents and various patent applications in the areas of interactive radio technology. The company`s direct methanol fuel cell-based products are developed for laptop computers, cell phones, music players, and other applications. It offers its services in the areas of energy/fuel cells, microelectronics, sensors and software for defense, homeland security and public safety, and information and computational technology. VIASPACE was founded in 1998 and is based in Pasadena, California.

VSPC News:

April 14 - VIASPACE Fuel Cartridge Powers SAMSUNG High-Performance Direct Methanol Fuel Cell for Military Applications Samsung Reveals New Military-Grade Fuel Cell in U.S. Army Performance Test VIASPACE Inc. (OTCBB: VSPC), an alternative energy company providing products and technology for renewable and clean energy, announced that Samsung, one of the world`s leading electronics companies, revealed its new military-grade fuel cell, powered by a methanol fuel cartridge developed and delivered by VIASPACE Inc. in a press release and at the Korea Green Expo held last week in South Korea.

Samsung also revealed that it has completed fuel cell performance tests for 72 hour operation with the U.S. Army`s CERDEC (Communication Electronics Research and Development Engineering Center). Plans for mass production include fuel cells not only for military applications but expanding the platform to include mobile electronics, like notebook computers, and industrial equipment. Samsung reported that Frost and Sullivan expects sales of military fuel cells to reach more than 100 million units for a market value of more than $580 million by 2013.

VIASPACE Chief Executive Carl Kukkonen remarked: "We`re pleased with Samsung`s success and are continuing to work closely with their research and development staffs as they take further steps toward commercial production for both the military and consumer markets." The fuel cartridge was developed by VIASPACE`s fuel cell subsidiary, Direct Methanol Fuel Cell Corporation (DMFCC">DMFCC), under a contract with Samsung. Using VIASPACE`s fuel cartridge full of liquid methanol, the fuel cell efficiently converts the methanol into electrical energy without burning. Samsung`s high efficiency military direct methanol fuel cell (DMFC) system produces the same energy as batteries two to three times its weight at a cost-per-kilowatt-hour 50% to almost 98% lower than batteries. Samsung`s fuel cell may be operated in any orientation, a key requirement for military applications.

Kukkonen added: "Our clean energy business is focused on designing and manufacturing disposable fuel cartridges that supply methanol for fuel cells, which we feel will become a major source of power for electronic devices such as notebook computers and cell phones. Since a notebook computer powered by a fuel cell is projected to use approximately 100 fuel cartridges during its lifetime, we see our partnerships with Samsung and other companies as opportunities to develop a substantial base of recurring revenues.

CELL GENESYS INCORPORATED (NASDAQ: CEGE) "Up 25.71 on Tuesday" Detailed Quote: http://www.otcpicknews.com/otpmail/link.phpM191&N9&L2 Cell Genesys, Inc., a biotechnology company, engages in the development and commercialization of biological therapies for patients with cancer.

It develops cell-based cancer immunotherapies and oncolytic virus therapies. The company`s GVAX cancer Immunotherapies comprise Prostate Cancer, a phase III product for the treatment of prostate cancer; Pancreatic Cancer, a phase II product for pancreatic cancer; and Leukemia, a phase II product for the treatment of acute and chronic myelogenous leukemia, and myelodysplastic syndrome. Its Oncolytic Virus Therapy includes CG0070, a phase I product for the treatment of recurrent bladder cancer. Cell Genesys has alliance with Novartis AG for the development and commercialization of oncolytic virus therapies; research and development collaboration with Medarex, Inc.; and development and commercialization collaboration of GVAX immunotherapy with Takeda Pharmaceutical Company Limited for prostate cancer. The company was founded in 1988 and is headquartered in South San Francisco, California.

CEGE News:

March 9 - Cell Genesys Announces Fourth Quarter and Year-End 2008 Financial Results The Company Ended 2008 With $86.1 Million in Cash, Cash Equivalents and Short-Term Investments Cell Genesys, Inc. (Nasdaq: CEGE) reported financial results for the fourth quarter and full year ended December 31, 2008. The company reported a net loss of $13.3 million ($0.15 per fully diluted share), for the fourth quarter of 2008, compared to a net loss of $33.4 million ($0.43 per fully diluted share) for the corresponding period in 2007.

The net loss for the year ended December 31, 2008 was $47.0 million ($0.56 per fully diluted share), compared to a net loss of $99.3 million ($1.39 per fully diluted share) for the year ended December 31, 2007.

During the fourth quarter of 2008, the Company ended further development of GVAX immunotherapy for prostate cancer and implemented a substantial restructuring plan that resulted in the reduction of the Companys 290 person staff by approximately 80 percent as of December 31, 2008, and by approximately 90 percent total as of the date of this announcement. Twenty-one employees remain. The Company anticipates further reductions in the first half of 2009 as additional activities are phased out. In connection with this restructuring, the Company terminated its lease for its facility in South San Francisco, California, and temporarily relocated its corporate headquarters to Hayward, California. The Company paid the South San Francisco facility landlord a lease termination fee of $14.7 million in December 2008. The Company would have been obligated to make lease payments of approximately $86 million through the lease expiration in 2018 if it had not terminated this lease. As a result, the Company recorded a restructuring charge of $13.8 million in the fourth quarter of 2008 for expenses related to the restructuring, including $14.3 million for workforce reduction costs, $0.1 million of non-cash stock-based compensation expense, and $14.1 million for lease termination costs, expenses which were offset by a $14.7 million gain from the termination of a capital lease.

Due to the termination of the Companys collaborative agreement with Takeda Pharmaceutical Company Limited for GVAX immunotherapy for prostate cancer in December 2008, all deliverables under this agreement were cancelled. As a result, during the fourth quarter of 2008, the Company recognized as revenue the remaining balance of deferred revenue of $40.9 million of the $50 million upfront non-refundable payment received from Takeda in April 2008. For the full year 2008, the Company recognized as revenue the full $50 million of this upfront payment.

Additionally, the Company recognized $6.5 million and $30.4 million, during the fourth quarter and full year ended December 31, 2008, respectively, in revenue from Takeda related to the external development costs associated with the now terminated Phase 3 clinical development of GVAX immunotherapy for prostate cancer.

In October and December 2008, the Company repurchased an aggregate of approximately $74.1 million principal amount of its 3.125% Convertible Senior Notes due in 2011, or notes, at an overall discount of approximately 60 percent from face value for aggregate consideration of approximately $29.6 million in cash, plus accrued but unpaid interest.

This early retirement of debt resulted in a net gain of approximately $42.7 million after deducting transaction costs of approximately $0.8 million and $1.1 million of unamortized debt issuance costs related to the repurchased notes. In January 2009, the Company repurchased an additional aggregate of $2.6 million face value of its notes, at an overall discount of approximately 60 percent from face value in a series of privately negotiated transactions with institutional holders of the notes, for aggregate consideration of $1.0 million in cash, plus accrued but unpaid interest. As of the date of this press release, $68.3 million aggregate principal amount remained outstanding.

In May 2008, the Company issued warrants as part of a registered direct offering, which was classified as a derivative liability pursuant to Statement of Financial Accounting Standards No. 133 and No. 150 requiring the Company to record the fair value of the warrants as a derivative liability and adjusted to fair value at each financial reporting date thereafter. The fair value of the warrant liability at December 31, 2008 was $0.6 million which was $11.5 million lower than its fair value at the date of issuance. This difference resulted in a non-cash gain of $0.8 million and $11.5 million for the fourth quarter and full year ended December 31, 2008, respectively.

During the fourth quarter of 2008, as a result of ending further development of GVAX immunotherapy for prostate cancer, the Company recorded a $69.5 million impairment charge related to leasehold improvements, equipment and other assets in its South San Francisco, Hayward and Memphis facilities, and a $2.1 million impairment charge related to certain intangible assets and construction in process that were deemed not recoverable as the Company abandoned these projects.

For the full year 2008, the Company recorded $71.8 million of impairment charges. In late February 2009, the Company vacated its Hayward facility and relocated its corporate headquarters to 400 Oyster Point Boulevard, Suite 525, South San Francisco, CA.

As of December 31, 2008, the Company had $86.1 million in cash, cash equivalents and short-term investments. The Company currently expects to have approximately $73 million and $69 million in cash, cash equivalents and short-term investments at March 31, 2009 and June 30, 2009, respectively.

The Company continues to explore strategic alternatives, including merger with or acquisition by another company, further restructuring, allocation of its resources toward other biopharmaceutical product areas, and sale of the Companys assets and liquidation of the Company.

The Company has engaged Lazard in connection with the evaluation of strategic alternatives. The Company cannot predict whether it will be able to identify strategic transactions on a timely basis or at all and anticipates that any such transaction would be time-consuming.

Recent Highlights A) Announced in February 2009 final results from VITAL-1, the Companys recently terminated Phase 3 clinical trial which compared GVAX immunotherapy for prostate cancer to Taxotere (docetaxel) chemotherapy plus prednisone and enrolled 626 advanced prostate cancer patients with asymptomatic castrate-resistant metastatic disease. VITAL-1 was terminated in October 2008 based on the results of a futility analysis conducted at the Companys request by the study`s Independent Data Monitoring Committee (IDMC) which indicated that the trial had less than a 30 percent chance of meeting its predefined primary endpoint of an improvement in overall survival. However, the final Kaplan-Meier survival curves for the two treatment arms suggest a late favorable effect of GVAX immunotherapy on patient survival compared to chemotherapy, with the curve for GVAX patients crossing above the chemotherapy curve at approximately the same time median survival was reached in both treatment arms (21 months). Additionally, the data suggest that patients with Halabi predicted survival (HPS) greater than or equal to 18 months may have a more favorable response to the immunotherapy. Treatment with GVAX immunotherapy was generally well-tolerated and had a very favorable side-effect profile compared to Taxotere chemotherapy particularly with respect to a lower frequency of grade 3 or higher toxicity of nine percent versus 43 percent. These results were presented at the American Society of Clinical Oncology`s Genitourinary Cancer Symposium on February 27, 2009.

B) Announced in February 2009 final results from VITAL-2, the Companys second Phase 3 clinical trial of GVAX immunotherapy for prostate cancer used in combination with Taxotere. VITAL-2, which compared GVAX immunotherapy for prostate cancer in combination with Taxotere to Taxotere plus prednisone and enrolled 408 patients with symptomatic castrate-resistant metastatic prostate cancer, was prematurely terminated in August 2008 following the recommendation of the trials IDMC, which in a routine safety meeting, observed an imbalance in deaths between the two treatment arms of the study. Updated analyses show no significant toxicities in the GVAX plus Taxotere arm that could explain the imbalance in deaths. Eighty-five percent of deaths were reported as due to prostate cancer in both arms, and there was no trend in the causes of death in the remaining patients. These observations are consistent with the hypothesis that the decision to omit concomitant prednisone in the GVAX immunotherapy treatment arm to avoid the immunosuppressive effects of prednisone may have contributed to an unfavorable outcome compared to the combination of chemotherapy and prednisone. Additionally, further analyses of VITAL-2 have indicated that the imbalance in deaths between the two treatment arms has decreased from 20 deaths as reported at the time of the IDMCs initial analysis (August 2008) to 9 deaths at the time of the final analysis (December 2008). These results were presented at the ASCO Genitourinary Cancer Symposium on February 26, 2009.

C) On March 6, 2009, the Company entered into agreements to terminate its Hayward manufacturing facility leases. The termination agreements are subject to certain conditions. Subject to fulfillment or waiver of these conditions, the leases will terminate by March 31, 2009. In consideration of the early termination of the leases, the Company will pay the landlords an aggregate amount of $3.6 million and issue one million shares of the Companys common stock. The Company would be obligated to make lease payments of approximately $27 million through the expiration of the leases in 2017 if the leases are not terminated.

AXION POWER INTERNATIONAL INCORPORATED (OTCBB: AXPW) "Up 85.39% on Tuesday" Detailed Quote: http://www.otcpicknews.com/otpmail/link.phpM191&N9&L04 Axion has developed and patented a next generation energy storage device that won the prestigious Frost & Sullivan Technology Award for North America in the field of lead-acid batteries. According to Frost & Sullivan, Axion`s new PbC batteries have "the potential to revitalize the lead-acid battery industry by breathing new life into an established technology that is not well suited to the requirements of important new applications like hybrid electric vehicles and renewable power." Axion Power International Inc is the industry leader in the field of lead-acid-carbon energy storage technologies. Axion believes this new battery technology is the only class of advanced battery that can be assembled on existing lead-acid battery production lines throughout the world without significant changes to production equipment and fabrication processes. It also believes it will be able to manufacture carbon electrode assemblies in volume at low cost using standard automated production methods that are commonly used in other industries. If and when its electrode manufacturing methods are fully developed, Axion believes it will be able to sell carbon electrode assemblies as virtual plug-and-play replacements for lead-based negative electrodes used by all other lead-acid battery manufacturers.

Axion`s future goal, after filling their plant`s lead-carbon battery production, is to become the leading supplier of carbon electrode assemblies for the lead-acid battery industry.

AXPW News:

April 13 - Axion Power Enters Worldwide Supply Agreement With Exide Technologies for PbC Batteries Omnibus Deal Covers Vehicles, Defense, and Commercial Applications Axion Power International Inc (OTCBB: AXPW), announced that it has signed a definitive Memorandum of Understanding for a multi-year, global supply relationship with Alpharetta, GA-based Exide Technologies (Nasdaq: XIDE - News) for the purchase of Axion PbC batteries and other Axion Technologies(TM). Axion is a developer of advanced batteries and energy storage products that incorporate patented lead carbon battery PbC Technology(TM). Exide Technologies is a global leader in stored electrical energy solutions.

According to the terms of the agreement, three consecutive phased purchase- and test-periods will commence immediately, with Axion supplying an escalating number of batteries to Exide on a monthly basis. The first two phases will span 18 months and if successful the parties will move to the final 2 phases of the agreement. The quantity of the products supplied will need to achieve certain defined milestones, commensurate with what the market potentials could be, over the remaining 2.5 year period of the agreement if exclusivity is to be maintained. Shipments delineated under the agreement would begin in Phase I, which is scheduled to last 10 months and would ramp up at each phase point, assuming successful testing. No further details on anticipated shipments and schedules were released.

The agreement will make Exide Axion Power`s principal battery original equipment manufacturer (OEM) customer. Axion will still retain the limited ability to market its PbC battery to one other lead-acid battery manufacturer under an existing agreement and Axion will be able to sell all its products to current customers, and into certain large potential markets on which they have chosen to concentrate.

If sales increase to a point where Axion cannot provide the quantities required, Axion agrees to grant a license and to sell certain materials to Exide to make a co-branded product. Axion expects its capacity to be exceeded, but plans to produce its proprietary carbon electrode for use in the batteries, whether the batteries are manufactured by Axion or Exide. This is in keeping with Axion`s long-stated business plan of "providing carbon electrodes to lead-acid battery manufacturers to make their products better." The agreement envisions Fields of Use for the Axion Technologies to include batteries for automobiles and light trucks (OEM and aftermarket); hybrid electric vehicles (HEVs): plug-in hybrid electric vehicles (PHEVs); electric vehicles (EVs); fuel-cell vehicles; marine, military, and heavy-duty transport applications; off-road machines; power-sport vehicles; and lawn and agricultural vehicles. It also foresees major applications for battery back-up; power quality; load leveling and peak shaving; storage for wind and solar; and storage for network grid applications.

"Exide is one of the largest battery manufacturers and recyclers in the world, and the Company`s recognition of the `game changing` potential of Axion`s products - including the PbC Battery, PbC Technology, embossed grid technology, carbon additive technology and other technologies that we develop in partnership with Exide underscores their appreciation of our carbon expertise and research and development history. Together, we believe we can compete effectively with other battery chemistries that have dominated today`s headlines," commented Tom Granville, Axion Power International`s Chief Executive Officer. "Whether the market is electric vehicles, defense applications, utility and industrial energy storage needs or enablement of renewables including wind and solar, we believe that Axion`s lead-carbon products present one of the best potential solutions. Axion`s developing and maturing technology, combined with Exide`s highly respected research and development team and proven ability to market and distribute batteries globally for transportation and industrial energy applications, provides all the necessary ingredients for winning big in the very substantial markets we target." Axion Power has developed several technological improvements to traditional lead-acid batteries, and owns numerous patents covering them. Its best-known development is the PbC battery, which substitutes activated carbon for lead on the negative electrode of an otherwise traditionally manufactured absorbed glass mat (AGM) lead-acid battery.

"We believe 2009 is a year when real attention - and dollars - are turning to advanced chemistries and alternative energy sources.

Certainly, our new collaboration with Axion Power strengthens Exide`s ability to develop and provide additional products and technologies that can shape the world`s changing energy storage systems," said Dr.

Paul Cheeseman, Vice President, Global Engineering and Research for Exide Technologies. "As partners, Exide and Axion combine deep and broad understandings that can effectively infuse technological innovation into practical applications. Together, we believe we`re well positioned to offer dependable, affordable, and advanced energy solutions for the global marketplace." In concluding Granville added, "We believe our batteries can compete with the more expensive and exotic battery chemistries. In the end, our relatively low cost, when compared to the battery chemistries that appear to dominate today`s headlines, along with our ease of integration into existing manufacturing lines, will be telling advantages when novelty wears thin and cost-consciousness and practicality move center stage." ABOUT EXIDE TECHNOLOGIES Exide Technologies, with operations in more than 80 countries, is one of the world`s largest producers and recyclers of lead-acid batteries.

The Company`s four global business groups Transportation Americas, Transportation Europe and Rest of World, Industrial Energy Americas and Industrial Energy Europe and Rest of World provide a comprehensive range of stored electrical energy products and services for industrial and transportation applications.

Transportation markets include original-equipment and aftermarket automotive, heavy-duty truck, agricultural and marine applications, and new technologies for hybrid vehicles and automotive applications.

Industrial markets include network power applications such as telecommunications systems, electric utilities, railroads, photovoltaic (solar-power related) and uninterruptible power supply (UPS), and motive-power applications including lift trucks, mining and other commercial vehicles.

Further information about Exide, including its financial results, are available at www.exide.com.

PETROLEUM CONSOLIDATORS OF AMERICA (OTC: PCAI) "Up 22.50% on Tuesday" Detailed Quote: http://www.otcpicknews.com/otpmail/link.phpM191&N9&L43 Petroleum Consolidators of America, Inc. is a gasoline station/convenience store operator which is implementing a targeted acquisition strategy to create a portfolio of consolidated retail gasoline facilities, producing oil wells and a wholesale fuel distributorship that will benefit from substantial operating efficiencies.

PCAI News:

April 14 - Petroleum Consolidators Signs Letter of Intent to Acquire a Major Branded Gas Station Petroleum Consolidators of America, Inc. (OTC: PCAI), a gasoline station/convenience store operator announced that it has signed a letter of intent to acquire a gas station/convenience store located in Indian River County, Florida.

Petroleum Consolidators President & CEO David Cohen, stated: "As a result of efforts to meet the goals of our business plan, we are moving forward to acquire this station which will offer PCAI immediate cash flow and a short and long term return on our investment. Based on our market research and due diligence to-date, we are confident that this acquisition will generate approximately $3.5 million in annual revenue and approximately $235,000-$255,000 in gross income." Additionally, Cohen stated: "We are extremely excited to have been able to enter into this letter of intent, our second, in a series of proposed transactions for 2009 and look forward to finalizing this acquisition in the next 60 days." ARTHROCARE CORPORATION (OTC: ARTC) "Up 19.42% on Tuesday" Detailed Quote: http://www.otcpicknews.com/otpmail/link.phpM191&N9&L09 Founded in 1993, ArthroCare Corp. is a highly innovative, multi-business medical device company that develops, manufactures and markets minimally invasive surgical products. With these products, ArthroCare targets a multi-billion dollar market opportunity across several medical specialties, significantly improving existing surgical procedures and enabling new, minimally invasive procedures. Many of ArthroCares products are based on its patented Coblation technology, which uses low-temperature radiofrequency energy to gently and precisely dissolve rather than burn soft tissue minimizing damage to healthy tissue. Used in more than four million surgeries worldwide, Coblation-based devices have been developed and marketed for sports medicine; spine/neurologic; ear, nose and throat (ENT); cosmetic; urologic and gynecologic procedures. ArthroCare also has added a number of novel technologies to its portfolio, including Opus Medical sports medicine, Parallax spine and Applied Therapeutics ENT products, to complement Coblation within key indications.

ARTC News:

April 2 - ArthroCare Announces Appointment of Todd Newton as Senior Vice President and Chief Financial Officer ArthroCare Corp. (OTC: ARTC) announced that Todd Newton, 46, has been appointed to the position of Senior Vice President and Chief Financial Officer of ArthroCare, effective immediately. Mr. Newton will report directly to David Fitzgerald, ArthroCares Acting President and Chief Executive Officer.

On behalf of ArthroCares Board and Management, I would like to welcome Todd as our new CFO, said Mr. Fitzgerald. We are fortunate to have a seasoned veteran like Todd as part of our team while we continue to work through the review and restatement of our past financial results. Todds broad range of financial, operational, strategic and accounting experience makes him an excellent addition to the Company and I know that he will be an asset as we work through our ongoing process and beyond.

Mr. Newton most recently served in various executive officer roles at Synenco Energy, Inc. from 2004 to 2008, including as President and Chief Executive Officer; President and Chief Operating Officer; and Executive Vice President and Chief Financial Officer. As Chief Financial Officer, Mr. Newton led Synenco Energys IPO, which at the time was the largest IPO of any oil and gas company on the Toronto Stock Exchange during the preceding 10 years. As President, he led the post-IPO development of corporate systems and practices. Subsequent to this, Mr. Newton led Synenco Energy through an extensive restructuring program and strategic options review that eventually resulted in the sale of the company. Before joining Synenco Energy, Mr. Newton served in various roles at Deloitte & Touche LLP from 1984 to 2004, including as partner from 1994 to 2004. At Deloitte & Touche LLP Mr. Newton was responsible for delivery of the firm`s audit and advisory services to a number of its large, multi-national public company clients.

Mr. Newton earned a bachelors degree in business administration from the University of Texas at San Antonio, from which he graduated in 1984. Mr. Newton is a member of the Texas State Society of Certified Public Accountants and the American Institute of Certified Public Accountants. In the past, he has been a member of the Minnesota State Society of CPAs and the Pennsylvania Institute of CPAs.

DENISON MINES CORPORATION (AMEX: DNN) "Up 17.92% on Tuesday" Detailed Quote: www.otcpicks.com/quotes/DNN.php Denison Mines Corp. is a premier intermediate uranium producer in North America, with mining assets in the Athabasca Basin region of Saskatchewan, Canada and the southwest United States including Colorado, Utah, and Arizona. Further, the Company has ownership interests in two of the four conventional uranium mills operating in North America today. Denison also has a strong exploration and development portfolio with large land positions in the United States, Canada, Mongolia and Zambia.

DNN News:

April 14 - Denison Announces Proposed Strategic and Offtake Relationship With KEPCO and C$94.9 Million Equity Placement Denison Mines Corp. (AMEX: DNN) (Toronto: DML.TO) ("Denison" or the "Company") announced that it has entered into a non-binding memorandum of understanding with Korea Electric Power Corporation (`KEPCO"). The agreement provides that KEPCO will execute a proposed off-take agreement to purchase 20% of Denison`s U3O8 production and acquire by private placement approximately 58 million common shares of Denison representing 19.9% of the post-transaction shares outstanding for gross proceeds of C$75.4 million.

The terms of the proposed agreement also stipulate that entities nominated by or affiliated with Denison`s chairman, Lukas Lundin, will acquire approximately 15 million common shares for additional gross proceeds of C$19.5 million.

The share placement issue price of C$1.30 per share represents a 15% premium to the 30-day moving average price prior to the execution of the memorandum. The offering may be completed by way of a combination of a private placement or through a public offering of common shares qualified through a prospectus. Proceeds will be used to reduce bank debt and to advance development projects.

The off-take agreement will provide for deliveries commencing in 2010 with minimum deliveries of 510,000 to 690,000 pounds of U3O8 per year from 2010 to 2015. The purchase price per pound of the U3O8 will be on industry standard terms.

KEPCO has the right to appoint two directors to Denison`s board of directors and a right of first offer to acquire up to 20% of any assets Denison acquires with a partner or sells.

These transactions are subject to the completion of due diligence by KEPCO, execution and delivery of definitive agreements on or before June 15, 2009 and receipt of certain regulatory approvals including Toronto Stock Exchange and NYSE Amex approval.

KEPCO was advised by RD Capital of Kelowna with respect to the memorandum of understanding.

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The information contained herein contains forward-looking information within the meaning of Section 27A of the Securities Act of 1993 and Section 21E of the Securities Exchange Act of 1934 including statements regarding expected continual growth of the company and the value of its securities. In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 it is hereby noted that statements contained herein that look forward in time which include everything other than historical information, involve risk and uncertainties that may affect the company's actual results of operation. Factors that could cause actual results to differ include the size and growth of the market for the company's products, the company`s ability to fund its capital requirements in the near term and in the long term, pricing pressures, unforeseen and/or unexpected circumstances in happenings, pricing pressures, etc. Investing in securities is speculative and carries risk. Past performance does not guarantee future results.

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CONTACT: Brian Dean, Publisher, OTCPicks.com
Tel: +1 972 546 3740
EMail : publisher@otcpicks.com

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