LARAMIDE PEA CONFIRMS POTENTIAL FOR LONG-LIFE, LOW-COST IN SITU RECOVERY URANIUM OPERATION AT CHURCHROCK PROJECT, NEW MEXICO, USA

January 11, 2024

Highlights:(All dollars USD)

• Large, long-life project with 31.2 million pounds produced over 31 years
• Low initial capital costs of $47.5M
• Unit operating costs (including taxes and royalties) of $27.70/lb and ASIC (all in sustaining costs) of $34.83/lb
• Pre-income tax IRR of 62% and NPV (8%) of $278 million (at $75/lb U₃O₈)
• Post-income tax IRR 56% and NPV (8%) $239 million (at $75/lb U₃O₈)
• Life of Project post-income tax cash flow exceeds $1 billion
• Upside opportunities include:
  • Potential for accelerated development of the resource beyond one million pound per annum straight line case outlined in the PEA; existing license allows for a 3-million-pound capacity at planned CPP (Central Processing Plant);
  • Potential for enhanced recoveries (PEA assumes recovery of 68% of the resource in the production area) or expansion of the current resource through infill and exploration drilling;
  • Inclusion of Crownpoint resource in future production planning; and
  • Realized uranium prices more than $75/lb pricing assumptions used in the PEA; for example, at a spot price of $90/lb after-tax NPV (8%) is $294,497,000.

FULL ANNOUNCEMENT