READ THE OUTLOOK:OutlookAs of the date of this report, Boss...

READ THE OUTLOOK:

Outlook
As of the date of this report, Boss remains on track to ramp up production in line with feasibility study estimates.
With liquid assets of $274.1 million$ and no debt obligations, Boss is well-positioned to support the ramp up.


Ongoing tightness in the uranium market augurs well for the term price over coming years. Consistent with
this, Boss continues to receive requests for proposals (RFPs) in respect to offtake and long-term contracts
generally


Uranium Market Analysis
The uranium term price has continued to rise steadily over the past financial year having increased, in the 12
months, from US$56/lb to US$79/lb.
2 The uranium spot price has been more volatile, having reached over
US$100/lb in February 2024 and reducing to US$78/lb at the time of writing. During the last financial year, the
majority of spot demand has been discretionary with intermediaries and funds, rather than utilities, accounting
for most spot market transactions. The volatility in the spot market reflects its illiquid nature, with a few hundred
thousand pounds enough to materially impact the spot price.

The steady increase in the uranium term price is reflective of increasing demand for uranium in the near,
medium and long term. This demand has been driven by lifetime extensions, plans to restart shutdown
reactors and the drive to meet net zero targets. We are also seeing exceptional near-term growth in electricity
demand from data centres which is accelerating the commercial development of small modular reactors.
The uranium market fundamentals are very strong. While demand is increasing, supply is struggling to keep
up with demand. Supply chain issues persist, costs of production are increasing, geopolitical tensions continue
and most of the new supply that has come online in the past year has been from expansions of existing mines
and restart projects, such as Honeymoon. New mines are needed during this decade. Planned projects will
need a strong and supportive investment environment, if they are to come on stream on time. For greenfield
projects the typical time from discovery to first production is in the order of 10 to 15 years with several technical,
economic and regulatory hurdles to be overcome during that period. Many of the deposits that are in the
development pipeline were discovered in the 1950s and 60s and it will take substantial investment in
exploration to discover the high-quality uranium deposits that are needed to meet future demand.
There is a strong interest from utilities in supply of uranium from politically stable countries. Boss, as a new
producer, located in South Australia, is ideally positioned to benefit from the high level of contracting that is
necessary to meet unfilled utility demand in the coming years.