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A Green Energy Enabler

Through our Macusani uranium project, our goal is to advance one of the world’s largest and lowest cost undeveloped uranium projects to help meet the world’s need for green, clean and efficient energy.

Project Highlights

Strong Project Economics 1

  • NPV = US$603M
  • IRR(8%) = 40.6%
  • Payback = 1.8 yrs
  • Large, low cost

Control all U3O8 Resources in Peru2

  • M&I resources = 52.9 Mlbs U3O8
  • Inferred resources = 72.1 Mlbs U3O8

Growth Potential

  • Scalable, flexible mine plan
  • Porous volcanic rock -> strong recoveries, low re-agent consumption

Excellent Infrastructure

  • Easy transport
  • Low cost power
  • Labour
  • Water

Located in Peru

  • Geopolitically stable
  • Responsible mining practices

Strong Project Economics 1

  • 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 term price): NPV: ~US$235M

Uranium Resources 2

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: 47+ targets around existing defined deposit

Near Surface + Leach Kinetics

  • Five near surface deposits included in the PEA mine plan
  • Hosted in porous volcanic rock → strong recoveries 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
  • Uranium mining and processing regulations in place
    • Transport and export regulations in accordance with IAEA standards pending

Macusani Uranium Project Economics1

Uranium Price Sensitivities:(After-tax NPV 8%)

• At US$65/lb:

~$965M

• At US$35/lb:

~$235M

  • NVP break-even price: US$25.66/lb
  • Relatively less sensitive to operating and capital costs
  • Project highly leveraged to uranium price
  • Resilient to downside, scalable to upside

Large Resources2

All Resources stated at 75 ppm U cutoff

  • (1) Kihitian Complex includes the Chilcuno Chico, Quebrada Blanca, Tuturumani and Tantamaco deposits updated May 6, 2015.
  • (2) Isivilla Complex includes the Isivilla, Calvario Real, Puncopata and Calvario I deposits, updated May 6, 2015
  • (3) Corani Complex includes the Calvario II, the Calvario III and Nueva Corani deposits, updated May 6, 2015
  • (4) Colibri II-III and Tupuramani remain unchanged, last updated August 14, 2013
  • (5) Corachapi remains unchanged, last updated September 8, 2010

All Resources stated at 200 ppm U cutoff

  • (1) Kihitian Complex includes the Chilcuno Chico, Quebrada Blanca, Tuturumani and Tantamaco deposits updated May 6, 2015.
  • (2) Isivilla Complex includes the Isivilla, Calvario Real, Puncopata and Calvario I deposits, updated May 6, 2015
  • (3) Corani Complex includes the Calvario II, the Calvario III and Nueva Corani deposits, updated May 6, 2015
  • (4) Colibri II-III and Tupuramani remain unchanged, last updated August 14, 2013
  • (5) Corachapi remains unchanged, last updated September 8, 2010

Macusani Uranium Project Growth

Existing Deposits

  • Targeted drilling in and around existing defined deposits
  • Infill drilling in inferred deposits outside current PEA mine plan

Kihitian Complex

  • Tantamaco South East - targets in between Tantmaco and Quebrada Blanca deposits
  • Untested post-land consolidation of extensions to mineralized manto horizon

Regional Targeting

  • +47 additional targets property wide

Macusani Uranium Opportunities

Processing

Tank leach option work to be advanced

Potential for better recoveries & shorter leach cycle

  • Mid-90’s in early tests vs. 88% in PEA

Capex/opex vs. recoveries trade off

Pre-Concentration

Potential economic improvement with size/screen sorting

  • 85% uranium contained in 50% of mass in fine fraction

Potential for less material handling, higher processed grades, reduced processing throughput and smaller plant footprint

Scalability

Phased expansion, smaller initial capex options to be reviewed

  • 2 to 6 Mlbs U3O8 annual production ranges considered previously
  • Review + engineering work in consideration

Growth

Near Mine Plan Resources

  • Existing deposits/zones outside of current PEA to be followed up on
  • Potential for more than 50 million lbs of U3O8 to be included in the PEA

Project Resilience

High grade only option to be revisited in more detail

Optimization work on current PEA mine plan

Exploration

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 now sliding scale based on operating margin and applied to net income

Permitting clarity

Peru 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

Support

Presidential level support to implement permitting framework for Peru’s first uranium mine

Local communities in support, Baseline Study accepted, commencing EIA

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Footnotes

1 Using US$50/lb uranium price. The preliminary economic assessment is preliminary in nature, it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment will be realized. Mineral resources are not mineral reserves and do not have demonstrated economic value. Further details can be found in the independent technical report " Macusani Project, Macusani, Peru, NI 43-101 Report – Preliminary Economic Assessment ” prepared by Mr. Michael Short and Mr. Thomas Apelt, of GBM Minerals Engineering Consultants Limited; Mr. David Young, of The Mineral Corporation; and Mr. Mark Mounde, of Wardell Armstrong International Limited dated January 12, 2016.

2 For further details on the Macusani resource estimates please review the technical report filed on SEDAR on June 2015 entitled “Consolidated Mineral Resource estimates for the Kihitian, Isivilla and Corani Uranium Complexes controlled by Plateau Uranium Inc., in the Puno District of Peru”, prepared by Mr. David Young, of The Mineral Corporation, an Independent Qualified Person as defined by NI 43-101. Mineral resources that are not mineral reserves do not have demonstrated economic viability.