Macusani Uranium Early Development Stage

Shallow, Volcanic Supergene/Surficial Uranium Deposits
Multiple Satellite Deposits, Centralized Processing Plan (PEA)
Ability to Fast Track Development Path
Resilient Project with Optimization Plans in Review
Scalable, Flexible Growth Plan
Strong Project Economics
US$50/lb U3O8
  • NPV: US$603M | IRR: 40.6% | 1.8 years capital payback (post-tax)
  • Large scale: proposed production averaging over ~6 Mlbs U3O8 per
    year over a 10 year mine life
  • PEA Mine Plan Resources: ~70 Mlbs U3O8 at 289 ppm
  • Low Cost: ~US$17/lb LoM cash production cost, ~US$300M initial capital
  • At ~US$35/lb (near current Term price)| NPV: ~US$220M
Uranium Resources
Control of All Defined Uranium Resources in Emerging Uranium District**
  • Measured & Indicated: 52.9 Mlbs U3O8 (248 ppm) (75ppm U cut-off)
  • Inferred: 72.1 Mlbs U3O8 (251 ppm) (75ppm U cut-off)
  • Growth Potential: 45+ targets around existing defined deposit
Near Surface + Leach Kinetics
  • 5 near surface deposits included in the PEA mine plan
  • Hosted in porous volcanic rock → rapid leach and low regent consumption
Excellent Infrastructure
  • Roads, inexpensive power, water, etc. proximal to project
Path to Permitting
  • Environmental Impact Assessment commencing
  • Government regulations on Uranium Transport + Export
Tank leach option work to be advanced
Potential for better recoveries & shorter leach cycle
  • Mid-90’s in early tests vs. 88% in PEA
Potential economic improvement with size/screen sorting
  • >85% uranium contained in 50% of mass in fine fraction
  • Potential for less material handling and reduced processing throughput
Phased expansion, smaller initial capex options to be reviewed
  • 2 to 6 Mlbs U3O8 annual production ranges considered previously
  • Review + engineering work in consideration
Near Mine Plan Resources
  • 2-3 existing deposits/zones outside of current PEA to be followed up on
  • >50 million lbs excluded from current PEA
Project Resilience
High grade only option to be revisited.
Optimization work on current PEA mine plan.
  • 85% of exploration land package undrilled – untested targets for early follow-up
  • Additional target generation
Tax Model
Currently modeled as 3% NSR in PEA.
Royalties are negotiated and usually range between 1 and 3% of profits.
Permitting Clarity
Peru team participating in ongoing discussions with Peruvian regulators around the legal framework for handling and exporting of radioactive material.
Ministry focused on permitting clarity in near-term.
Presidential level support to implement permitting framework for Peru’s first uranium mine (see Reuters news August 10th, 2018).
Local communities in support, Baseline Study accepted, commencing EIA.

* Refer to NI 43-101 technical report as filed on SEDAR, Feb 10, 2016

** Refer to NI 43-101 technical report as filed on SEDAR, Jun 22, 2015