Financial Highlights                                                          Three Months Ended                                                                March 31                                                         --------------------                                                            2009        2008 Revenue ($000s)                                        $ 21,998    $ 18,181 Net Income (Loss) ($000's)                               (1,327)    (10,462) Earnings (Loss) Per Share ($)                             (0.01)      (0.06) Cash Provided By (Used By) Operations ($000's)          (30,005)      7,622 Exploration Expensed(1) ($000's)                          2,077       6,509 (1) The Company expenses exploration expenditures on mineral properties     not sufficiently advanced to identify their development potential. 

Significant events in the first quarter include:

- Denison sold 225,000 pounds U3O8 during the quarter from U.S. production at an average price of $66.03 per pound and 98,000 pounds U3O8 from its Canadian production under an existing long-term contract at an average price of $49.91 per pound.

- Spot prices for U3O8 decreased from $53.00 per pound at December 31, 2008 to $42.00 per pound at March 31, 2009 as quoted by Ux Consulting. The long-term price for U3O8 remained at $70.00 per pound throughout the quarter.

- Denison issued 28,750,000 common shares at CDN$1.65 per share raising gross proceeds of $38,947,000 (CDN$47,437,500).

- Denison reported a major and significant discovery at its 60% owned Wheeler River property with its winter drill program identifying significant mineralization over a distance of 700 metres.

- Denison announced a NI 43-101 resource estimate on its Mutanga property in Zambia. Measured and indicated resources are estimated at 2.0 and 5.8 million pounds U3O8 and inferred resources exceed 13.0 million pounds U3O8.

- Denison announced it was placing the Rim and Sunday mines on temporary stand-by until uranium prices improve or new sales contracts are negotiated. It also announced that conventional ore processing at the White Mesa mill will cease once sufficient volumes have been produced to meet the current year's sales commitments of 500,000 pounds U3O8. Further mill production from conventional ore is dependant on the signing of new contracts.

- Denison announced that Peter Farmer was stepping down as CEO effective April 30, 2009.

- Denison announced an updated NI 43-101 resource estimate on its Tony M and Southwest deposits which are part of the Company's Henry Mountains Complex located in southeastern Utah. Indicated resources are estimated at 8.1 million pounds U3O8 and inferred resources at 2.8 million pounds U3O8.

- Subsequent to the quarter Denison announced that it had entered into a non-binding memorandum of understanding ("MOU") with Korea Electric Power Corporation ("Kepco"). The MOU provides that Kepco will execute a proposed offtake agreement to purchase 20% of Denison's U3O8 production and acquire by private placement approximately 58 million common shares of Denison for gross proceeds of CDN$75.4 million. The MOU also stipulates that entities nominated by or affiliated with Denison's chairman and interim CEO, Lukas Lundin, will acquire 15 million common shares for additional gross proceeds of CDN$19.5 million.

Revenue

Uranium sales revenue for the quarter was $20,338,000. Sales from U.S. production were 225,000 pounds U3O8 at an average price of $66.03 per pound. Sales of Canadian production were 98,000 pounds U3O8 at an average price of $49.91 per pound. Amortization of the fair value increment related to the DMI sales contracts totaled $528,000 for the quarter. Reported revenue is also impacted by the effect of foreign currency translation.

Uranium sales revenue in the 2008 period totaled $16,178,000 from the sale of 50,000 pounds U3O8 from U.S. production at an average price of $90.25 per pound and the sale of 147,000 pounds U3O8 from Canadian production at an average sales price of $71.54 per pound and from amortization of the fair value increment related to the long-term sales contracts of DMI in the amount of $906,000.

Denison marketed its uranium from the McClean Lake joint venture jointly with AREVA Resources Canada Inc. ("ARC") until the end of 2008. Commencing in 2009, Denison markets its share of McClean Lake production directly except for one joint contract under which it will deliver approximately 400,000 pounds in 2009 and 40,000 pounds in 2010, all of which is priced at 80% to 85% of the quoted spot price. This is the only remaining contract for Canadian production.

In addition to the contract noted above, the Company currently has three other long-term contracts in place. One is for the sale of 17% of the White Mesa mill production up to a total of 6.5 million pounds with a minimum of 500,000 pounds in 2009, 750,000 pounds in 2010 and 1,000,000 pounds in 2011. The sales price is 95% of the published long-term price for the month prior to delivery with a floor price of $45.00. The second contract is for 20% of production from the White Mesa mill during the years 2012 to 2017 inclusive, but not less than 200,000 pounds per year. The price per pound under this contract is 95% of the long-term price at the time of delivery with an escalated floor price of $50.00 per pound. The third contract is for delivery of 1,000,000 pounds U3O8 over a period of five years beginning in 2011. The price under the contract is a combination of an escalated base price and published market price indicators at the time of delivery subject to escalated floors and ceilings.

Revenue from the environmental services division was $1,344,000 for the three months ended March 31, 2009 compared to $1,141,000 in the comparable 2008 period. Revenue from the management contract with Uranium Participation Corporation was $295,000 for the three months ended March 31, 2009 compared to $839,000 in the same period in 2008.

Uranium Production

The McClean Lake joint venture produced 745,000 pounds U3O8 for the three months ended March 31, 2009 compared with 591,000 pounds U3O8 for the three months ended March 31, 2008. Denison's 22.5% share of production totaled 168,000 and 133,000 pounds respectively.

Unit production cash costs in Canada are driven primarily by production volumes as the majority of costs do not vary with volume. These fixed costs for the McClean operations total approximately CDN$58 million per year so as production volumes increase, the cost per pound decreases. Reagent costs are in addition to this cost as are amortization, depletion and depreciation costs. Canadian production costs for the quarter were $48.70 (CDN$60.61) per pound U3O8 including $24.58 (CDN$30.59) per pound U3O8 for amortization, depletion and depreciation costs.

Inventory from Canadian production was 92,000 pounds U3O8 at March 31, 2009.

The Company began processing conventional ore at the White Mesa mill on April 28, 2008. Production at the White Mesa mill from conventional ore was 308,000 pounds U3O8 for the three months ended March 31, 2009. The Company also produced 131,000 pounds V2O5 in the quarter. Production costs for processing conventional ore in the quarter totaled $77.24 per pound U3O8 and vanadium equivalent including $44.29 per pound amortization, depletion and depreciation.

Inventory from U.S. production was 245,000 pounds U3O8 and 1,353,000 pounds V2O5 at March 31, 2009.

Operating costs include a write-down of $1,224,000 relating to the net realizable value of the Company's vanadium inventory. Operating costs also include expenses relating to Denison's environmental services division amounting to $1,354,000 in the three month period ended March 31, 2009 and $1,007,000 in the comparable period in 2008.

Outlook for 2009

Mining and Production

Canada

No open pit mining activities are projected in 2009 at McClean Lake in northern Saskatchewan. Mining of the Caribou deposit, which was originally expected to commence in 2009, has been delayed at least a year after a review of the project's economics at current uranium prices. Test mining using the bore hole mining technique, that has been the subject of three years of development, will continue in 2009.

At March 31, 2009, the McClean Lake mill ore stockpile had approximately 330,000 tonnes of ore containing 5.7 million pounds U3O8 with the Company's share being 1.3 million pounds U3O8. Milling of the stockpiled ore from Sue E, Sue B and Sue A is ongoing and U3O8 production at McClean Lake in 2009 is expected to be 3,380,000 pounds U3O8, of which Denison's share is 761,000 pounds.

Development of the Midwest project has been postponed due to the current economic climate, delays and uncertainties associated with the regulatory approval process, the increasing capital and operating cost and the current market for uranium. The regulatory process for the project, which has been ongoing since December 2005, will be continued through 2009, as well as the engineering for Midwest. This will enable the project to be advanced to the stage that it is ready to be developed quickly when the economic conditions improve. The status of the project will be reviewed every six months.

United States

Three mines are operating on the Colorado Plateau with production from the Pandora, West Sunday and Beaver mines. Four mines remain on active care and maintenance including the Topaz, Rim and Sunday mines on the Colorado Plateau, and the Tony M mine in the Henry Mountains complex. The conditions of these mines are being maintained in a state to resume mining operations quickly when uranium prices improve or the Company is able to obtain new sales contracts at prices sufficient to justify re-opening the mines. Production from the mines in operation is being hauled to Denison's White Mesa mill. At March 31, 2009, a total of 81,000 tons remain on the stockpile at the mill, excluding alternate feed stockpiles.

At the Company's Arizona 1 mine on the Arizona Strip located in northeastern Arizona, the air quality permitting process is ongoing, but the Company is unable to determine the length of time required to receive the permit. Once the permit is received, mine production should be able to commence within six months.

The White Mesa mill processed conventional ore for the first three months in 2009. In April, the mill was shut down for planned maintenance. The mill will process conventional ore for at least the month of May to produce enough uranium to meet the committed contract share of 500,000 pounds for 2009. The construction of the new $5.0 million alternate feed circuit is on schedule with start-up anticipated in June 2009. Production from this circuit is anticipated to be up to 160,000 pounds in 2009. The Company expects to produce 0.5 to 0.8 million pounds of U3O8 and 0.5 million pounds of V2O5 at the White Mesa mill in 2009.

Sales

The Company expects to be in a position to sell 1.2 to 1.3 million pounds of U3O8 in 2009 including 0.5 to 0.6 million pounds from U.S. production. It also anticipates selling 1.5 million pounds of vanadium. Subsequent to the quarter end, Denison sold 396,000 pounds V2O5 at an average price of $3.55 per pound V2O5.

Exploration

Athabasca Basin

In the Athabasca Basin, Denison is participating in 33 exploration projects, primarily located in the southeast part of the Basin and within trucking distance of all the three operating mills in the area. On Denison's operated and non-operated projects, a total of approximately 25,000 metres of drilling was carried out this winter. Near the McClean mill, joint venture partner ARC is operator of the Midwest, Wolly, Waterfound and McClean projects, where 74 holes totaling approximately 18,640 metres in aggregate were drilled. Denison completed a drill program of 14 holes totaling approximately 6,620 metres on its 60% owned Wheeler River project.

A major and significant discovery has been made on Wheeler River with the winter drill program identifying significant mineralization over a distance of 700 metres. This mineralization is virtually identical in composition, mineralogy, and grade to that of the McArthur River orebodies, and occurs in the same geological environment. The mineralization is open along strike and also across strike. The Company believes that this is the most significant McArthur River style mineralization yet discovered in the basin since the discovery of McArthur River in 1988. A summer 2009 drill program is planned totaling 5,500 metres. One drill rig will be dedicated to the program this summer, and at least two rigs are planned for winter 2010 with one full time dedicated to development drilling of this exciting discovery.

Denison's exploration spending in 2009 in the Athabasca Basin is expected to total $7,700,000.

Southwest United States

Denison is carrying out two exploration programs near its West Sunday and Pandora mines.

Mongolia

The Mongolia program will be a combination of limited exploration drilling and engineering type studies in the area of the initial test ISR well fields. In April 2009, the GSJV exploration licences were extended for a three-year period.

Zambia

Based on the results of the alkaline leach pilot plant test work and heap leach test work, which was undertaken in parallel with the pilot plant work, a decision has been made to change the processing flow sheet from the alkaline leach to an acid heap leach flowsheet. The acid heap leach provides similar recoveries to the alkaline leach, but at much lower capital and operating cost. The acid leach is also more flexible given the distance between the Mutanga and Dibwe orebodies.

Denison will be completing the detailed feasibility study in the second quarter of 2009. This document, along with an Environmental Report, will form the basis for the mining application which will be submitted shortly thereafter. There is no exploration or other development activities planned for 2009.

Liquidity

The Company had cash and cash equivalents of $2,505,000 at March 31, 2009 and portfolio investments with a market value of $7,788,000. The Company has in place a $125,000,000 revolving credit facility with a term to June 30, 2011. Bank indebtedness under the facility at March 31, 2009 was $100,646,000. An additional $6,393,000 of the line is used as collateral for certain letters of credit. The Company is currently in compliance with all covenants under the facility.

Denison has initiated a process to consider and respond to various strategic opportunities which may be available to the Company over the next few months including, but not limited to, entering into offtake contracts with utility customers which may involve a strategic investment in Denison, asset sales, purchases and joint ventures, investment by private equity investors and potential corporate transactions with other uranium producers. Denison has retained Cormark Securities Inc. for the purpose of providing it with financial advice in evaluating these alternatives and executing any related transactions.

In April 2009, the Company entered into a non-binding memorandum of understanding ("MOU") with Korea Electric Power Corporation ("KEPCO") to issue 58,000,000 common shares at a price of CDN$1.30. The MOU with KEPCO also stipulates that entities nominated by or affiliated with Denison's chairman and interim CEO, Lukas Lundin, will acquire approximately 15,000,000 common shares at CDN$1.30. Total gross proceeds under this MOU is CDN$94,900,000.

Conference Call

Denison is hosting a conference call on May 14, 2009 starting at 9:30 A.M. (Toronto time) to discuss the first quarter 2009 results. The webcast will be available live through a link on Denison's website www.denisonmines.com and by telephone at 416-641-6127. A recorded version of the conference call will be available by calling 416-695-5800 (password: 4160610) approximately two hours after the conclusion of the call. The presentation will also be available at www.denisonmines.com.

Additional Information

Additional information on Denison is available on SEDAR at www.sedar.com and on the Company's website at www.denisonmines.com.

About Denison

Denison Mines Corp. is the 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. The Company also has a strong exploration portfolio with large land positions in the United States, Canada, Zambia and Mongolia. Correspondingly, the Company has one of the largest uranium exploration teams among intermediate uranium companies.

Cautionary Statements

Certain information contained in this press release constitutes forward-looking information. The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe" and similar expressions are intended to identify forward-looking information. This information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Denison believes that the expectations reflected in this forward-looking information is reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking information included in this press release should not be unduly relied upon. This information speaks only as of the date of this press release.

In particular, this press release contains forward-looking information pertaining to the following:

- the estimates of Denison's mineral reserves and mineral resources;

- uranium and vanadium production levels;

- capital expenditure programs, estimated production costs, exploration expenditures and reclamation costs;

- expectations of market prices and costs;

- supply and demand for uranium and vanadium;

- possible impacts of litigation on Denison;

- exploration, development and expansion plans and objectives;

- Denison's expectations regarding raising capital and adding to its mineral reserves through acquisitions and development; and

- receipt of regulatory approvals and permits and treatment under governmental regulatory regimes.

Denison's actual results could differ materially from those anticipated in this forward-looking information as a result of the following and as a result of the risk factors set forth in the Company's Management Discussion and Analysis ("MD&A") which is available on SEDAR at www.sedar.com.:

- volatility in market prices for uranium and vanadium;

- changes in foreign currency exchange rates and interest rates;

- liabilities inherent in mining operations;

- uncertainties associated with estimating mineral reserves and resources;

- failure to obtain industry partner and other third party consents and approvals, when required;

- delays in obtaining permits and licenses for development properties;

- competition for, among other things, capital, acquisitions of mineral reserves, undeveloped lands and skilled personnel;

- incorrect assessments of the value of acquisitions; and

- geological, technical and processing problems.

These factors are not, and should not be construed as being, exhaustive. Statements relating to "mineral reserves" or "mineral resources" are deemed to be forward-looking information, as they involve the implied assessment, based on certain estimates and assumptions, that the mineral reserves and mineral resources described can be profitably produced in the future. The forward-looking information contained in this press release is expressly qualified by this cautionary statement. Denison does not undertake any obligation to publicly update or revise any forward-looking information after the date of this press release to conform such information to actual results or to changes in Denison's expectations except as otherwise required by applicable legislation. Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and Inferred Resources: This news release uses the terms "Measured", "Indicated" and "Inferred" Resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize them. "Inferred Mineral Resources" have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or other economic studies.