Uranium Report 2021

Everything you need to know about uranium! Disclaimer

Dear reader, tions of Swiss Resource Capital AG involve risks All publications of Swiss Resource Capital AG Investments in securities with low liquidity and advice (e. g. from the principle bank or a trusted ad- other factors that could cause actual events to differ which could lead to total a loss of the invested capi- are exclusively for information purposes only. All small market cap are extremely speculative as well visor) before any investment decision. To reduce risk materially from those indicated in the forward-look- Please read the complete disclaimer in the fol- tal and – depending on the investment – to further information and data in all publications of Swiss Re- as a high risk. Due to the speculative nature of the investors should largely diversify their investments. ing statements. Such factors include but are not li- lowing pages carefully before you start reading obligations for example additional payment liabili- source Capital AG are obtained from sources which presented companies their securities or other finan- mited to the following: risks regarding the inac- this Swiss Resource Capital Publication. By ties. In general, purchase and sell orders should al- are deemed reliable and trustworthy by Swiss Re- cial products it is quite possible that investments In addition, Swiss Resource Capital AG welco- curacy of the mineral reserve and mineral resource using this Swiss Resource Capital Publication ways be limited for your own protection. source Capital AG and the respective authors at the can lead to a capital reduction or to a total loss and mes and supports the journalistic principles of con- estimates, fluctuations of the gold price, risks and you agree that you have completely understood time of preparation. Swiss Resource Capital AG – depending on the investment – to further obliga- duct and recommendations of the German press dangers in connection with mineral exploration, de- the following disclaimer and you agree comple- This applies especially to all second-line-stocks in and all Swiss Resource Capital AG employed or en- tions for example additional payment liabilities. Any council for the economic and financial market repor- velopment and mining, risks regarding the credit- tely with this disclaimer. If at least one of these the small and micro cap sector and especially to ex- gaged persons have worked for the preparation of investment in warrants, leveraged certificates or ting and within the scope of its responsibility will worthiness or the financial situation of the supplier, point does not agree with you than reading and ploration and resource companies which are discus- all of the published contents with the greatest pos- other financial products bears an extremely high look out that these principles and recommendations the refineries and other parties that are doing busi- use of this publication is not allowed. sed in the publications of Swiss Resource Capital AG sible diligence to guarantee that the used and un- risk. Due to political, economical or other changes are respected by employees, authors and editors. ness with the company; the insufficient insurance and are exclusively suitable for speculative and risk derlying data as well as facts are complete and ac- significant stock price losses can arise and in the coverage or the failure to receive insurance covera- We point out the following: aware investors. But it applies to all other securities curate and the used estimates and made forecasts worst case a total loss of the invested capital and – ge to cover these risks and dangers, the relationship as well. Every exchange participant trades at his are realistic. Therefore, liability is categorically depending on the investment – to further obligations Forward-looking Information with employees; relationships with and the demands Swiss Resource Capital AG and the authors of own risk. The information in the publications of Swiss precluded for pecuniary losses which could poten- for example additional payment liabilities. Any liabi- from the local communities and the indigenous po- the Swiss Resource Capital AG directly own and/ Resource Capital AG do not replace an on individual tially result from use of the information for one’s lity claim for foreign share recommendations, deri- Information and statements in all publications of pulation; political risks; the availability and rising or indirectly own shares of following Companies needs geared professional investment advice. In spi- own investment decision. vatives and fund recommendations are in principle Swiss Resource Capital AG especially in (translated) costs in connection with the mining contributions which are described in this publication: GoviEx te of careful research, neither the respective author ruled out by Swiss Resource Capital AG and the re- press releases that are not historical facts are for- and workforce; the speculative nature of mineral ex- Uranium, IsoEnergy, Skyharbour Resources, nor Swiss Resource Capital AG will neither guaran- All information published in publications of Swiss spective authors. Between the readers as well as the ward-looking information within the meaning of ap- ploration and development including risks of recei- Uranium Energy. tee nor assume liability for actuality, correctness, Resource Capital AG reflects the opinion of the res- subscribers and the authors as well as Swiss Re- plicable securities laws. They contain risks and un- ving and maintaining the necessary licences and mistakes, accuracy, completeness, adequacy or pective author or third parties at the time of repara- source Capital AG no consultancy agreement is clo- certainties but not limited to current expectations of permits, the decreasing quantities and grades of Swiss Resource Capital AG has closed IR quality of the presented information. For pecuniary tion of the publication. Neither Swiss Resource Ca- sed by subscription of a publication of Swiss Re- the company concerned, the stock concerned or mineral reserves during mining; the global financial consultant contracts with the following compa- losses resulting from investments in securities for pital AG nor the respective authors can be held res- source Capital AG because all information cont- the respective security as well as intentions, plans situation, current results of the current exploration nies which are mentioned in this publication: which information was available in all publications of ponsible for any resulting pecuniary losses. All ained in such a publication refer to the respective and opinions. Forward-looking information can of- activities, changes in the final results of the econo- IsoEnergy und Uranium Energy. Swiss Resource Capital AG liability will be assumed information is subject to change. Swiss Resource company but not to the investment decision. Publi- ten contain words like “expect”, “believe”, “assu- mic assessments and changes of the project para- neither by Swiss Capital Resource AG nor by the re- Capital AG as well as the respective authors assures cations of Swiss Resource Capital AG are neither, me”, “goal”, “plan”, “objective”, “intent”, “estimate”, meter to include unexpected economic factors and Swiss Resource Capital AG receives compen- spective author neither explicitly nor implicitly. that only sources which are deemed reliable and direct or indirect an offer to buy or for the sale of the “can”, “should”, “may” and “will” or the negative other factors, risks of increased capital and opera- sation expenses from the following companies trustworthy by Swiss Resource Capital AG and the discussed security (securities), nor an invitation for forms of these expressions or similar words sugge- ting costs, environmental, security and authority ris- mentioned in this publication: GoviEx Uranium, Any investment in securities involves risks. Politi- respective authors at the time of preparation are the purchase or sale of securities in general. An in- sting future events or expectations, ideas, plans, ks, expropriation, the tenure of the company to pro- IsoEnergy, Skyharbour Resources, Uranium cal, economical or other changes can lead to signi- used. Although the assessments and statements in vestment decision regarding any security should not objectives, intentions or statements of future events perties including their ownership, increase in com- Energy. ficant stock price losses and in the worst case to a all publications of Swiss Resource Capital AG were be based on any publication of Swiss Resource Ca- or performances. Examples for forward-looking in- petition in the mining industry for properties, total loss of the invested capital and – depending on prepared with due diligence, neither Swiss Resour- pital AG. formation in all publications of Swiss Resource Ca- equipment, qualified personal and its costs, risks Therefore, all mentioned companies are the investment – to further obligations for example ce Capital AG nor the respective authors take any pital AG include: production guidelines, estimates of regarding the uncertainty of the timing of events in- sponsors of this publication. additional payment liabilities. Especially invest- responsibility or liability for the actuality, correct- Publications of Swiss Resource Capital AG must future/targeted production rates as well as plans cluding the increase of the targeted production rates ments in (foreign) second-line-stocks, in the small ness, mistakes, accuracy, completeness, adequacy not, either in whole or in part be used as a base for and timing regarding further exploration, drill and and fluctuations in foreign exchange rates. The and micro cap sector, and especially in the explora- or quality of the presented facts or for omissions or a binding contract of all kinds or used as reliable in development activities. This forward-looking infor- shareholders are cautioned not to place undue reli- Risk Disclosure and Liability tion and resource companies are all, in general, as- incorrect information. The same shall apply for all such a context. Swiss Resource Capital AG is not mation is based in part on assumption and factors ance on forward-looking information. By its nature, sociated with an outstandingly high risk. This market presentations, numbers, designs and assessments responsible for consequences especially losses, that can change or turn out to be incorrect and the- forward-looking information involves numerous as- Swiss Resource Capital AG is not a securities segment is characterized by a high volatility and expressed in interviews and videos. which arise or could arise by the use or the failure of refore may cause actual results, performances or sumptions, inherent risks and uncertainties both service provider according to WpHG (Germany) and harbours danger of a total loss of the invested capi- the application of the views and conclusions in the successes to differ materially from those stated or general and specific that contribute to the possibility BörseG (Austria) as well as Art. 620 to 771 obliga- tal and – depending on the investment – to further Swiss Resource Capital AG and the respective publications. Swiss Resource Capital AG and the postulated in such forward-looking statements. that the predictions, forecasts, projections and vari- tions law (Switzerland) and is not a finance company obligations for example additional payment liabili- authors are not obliged to update information in pu- respective authors do not guarantee that the expec- Such factors and assumption include but are not li- ous future events will not occur. Neither Swiss Re- according to § 1 Abs. 3 Nr. 6 KWG. All publications ties. As well, small and micro caps are often very illi- blications. Swiss Resource Capital AG and the res- ted profits or mentioned share prices will be achie- mited to: failure of preparation of resource and re- source Capital AG nor the referred to company, re- of the Swiss Resource Capital AG are explicitly (in- quid and every order should be strictly limited and, pective authors explicitly point out that changes in ved. serve estimates, grade, ore recovery that differs ferred to stock or referred to security undertake no cluding all the publications published on the website due to an often better pricing at the respective do- the used and underlying data, facts, as well as in the from the estimates, the success of future explorati- obligation to update publicly otherwise revise any http://www.resource-capital.ch and all sub-websi- mestic exchange, should be traded there. An inves- estimates could have an impact on the forecasted The reader is strongly encouraged to examine all on and drill programs, the reliability of the drill, forward-looking information whether as a result of tes (like http://www.resource-capital.ch/de) and the tment in securities with low liquidity and small mar- share price development or the overall estimate of assertions him/herself. An investment, presented by sample and analytical data, the assumptions regar- new information, future events or other such factors website http://www.resource-capital.ch itself and its ket cap is extremely speculative as well as a high the discussed security. The statements and opi- Swiss Resource Capital AG and the respective au- ding the accuracy of the representativeness of the which affect this information, except as required by sub-websites) neither financial analysis nor are they risk and can lead to, in the worst case, a total loss of nions of Swiss Capital Resource AG as well as the thors in partly very speculative shares and financial mineralization, the success of the planned metallur- law. equal to a professional financial analysis. Instead, all the invested capital and – depending on the invest- respective author are not recommendations to buy products should not be made without reading the gical test work, the significant deviation of capital publications of Swiss Resource Capital AG are ment – to further obligations for example additional or sell a security. most current balance sheets as well as assets and and operating costs from the estimates, failure to exclusively for information purposes only and are payment liabilities. Engagements in the publications liabilities reports of the companies at the Securities receive necessary government approval and en- 48f Abs. 5 BörseG (Austria) and Art. 620 to 771 expressively not trading recommendations regar- of the shares and products presented in all publica- Neither by subscription nor by use of any publica- and Exchange Commission (SEC) under www.sec. vironmental permits or other project permits, chan- obligations law (Switzerland) ding the buying or selling of securities. All publica- tions of Swiss Resource Capital AG have in part for- tion of Swiss Resource Capital AG or by expressed gov or other regulatory authorities or carrying out ges of foreign exchange rates, fluctuations of com- tions of Swiss Resource Capital AG represent only eign exchange risks. The deposit portion of single recommendations or reproduced opinions in such a other company evaluations. Neither Swiss Resource modity prices, delays by project developments and Swiss Resource Capital AG as well as the respec- the opinion of the respective author. They are neither shares of small and micro cap companies and low publication will result in an investment advice cont- Capital AG nor the respective authors will guarantee other factors. tive authors of all publications of Swiss Resource explicitly nor implicitly to be understood as guaran- capitalized securities like derivatives and leveraged ract or investment brokerage contract between that the expected profits or mentioned share prices Capital AG could have been hired and compensated tee of a particular price development of the menti- products should only be as high that, in case of a Swiss Resource Capital AG or the respective author will be achieved. Neither Swiss Resource Capital AG Potential shareholders and prospective investors by the respective company or related third party for oned financial instruments or as a trading invitation. possible total loss, the deposit will only marginally and the subscriber of this publication. nor the respective authors are professional invest- should be aware that these statements are subject the preparation, the electronic distribution and pub- Every investment in securities mentioned in publica- lose in value. ment or financial advisors. The reader should take to known and unknown risks, uncertainties and lication of the respective publication and for other

2 3 services. Therefore the possibility exists for a con- 1986 is authorized or exempt. If these restrictions markets presented in all publications of Swiss Re- olations were evident. Swiss Resource capital AG and its sub-websites or in the http://www.resour- Reading and accepting our terms of use and privacy flict of interests. are not respected this can be perceived as a violati- source Capital AG. has no influence on the current and future design ce-capital.ch – newsletter as well as in all publica- statement are a prerequisite for permission to read, on against the respective state laws of the menti- and the contents of the linked websites. The place- tions of Swiss Resource Capital AG and also for the use and interact with our website(s). At any time Swiss Resource Capital AG as well as oned countries and possibly of non mentioned ment of external links does not mean that Swiss Re- content of the advertised website and the adverti- the respective authors of all publications of Swiss countries. Possible resulting legal and liability claims Copyright source Capital AG takes ownership of the contents sed products and services. The presentation of the Resource Capital AG could hold long and short posi- shall be incumbent upon that person, but not Swiss behind the reference or the link. A constant control advertisement does not constitute the acceptance tions in the described securities and options, futures Resource Capital, who has published the publica- The copyrights of the single articles are with the of these links is not reasonable for Swiss Resource by Swiss Resource Capital AG. and other derivatives based on theses securities. tions of Swiss Resource Capital AG in the menti- respective author. Reprint and/or commercial disse- Capital AG without concrete indication of statutory Furthermore Swiss Resource Capital AG as well as oned countries and regions or has made available mination and the entry in commercial databases is violations. In case of known statutory violations the respective authors of all publications of Swiss the publications of Swiss Resource Capital AG to only permitted with the explicit approval of the res- such links will be immediately deleted from the web- No contractual relationship Resource Capital AG reserve the right to buy or sell persons from these countries and regions. pective author or Swiss Resource Capital AG. sites of Swiss Resource Capital AG. If you encoun- at any time presented securities and options, futures ter a website of which the content violates applicab- Use of the website http://www.resource-capital. and other derivatives based on theses securities. Th- The use of any publication of Swiss Resource Ca- All contents published by Swiss Resource Capital le law (in any manner) or the content (topics) insults ch and its sub-websites and http://www.resour- erefore the possibility exists for a conflict of interests. pital AG is intended for private use only. Swiss Re- AG or under http://www.resource-capital.ch – or discriminates individuals or groups of individuals, ce-capital.ch – newsletter as well as in all publica- source Capital AG shall be notified in advance or website and relevant sub-websites or within www. please contact us immediately. tions of Swiss Resource Capital AG no contractual Single statements to financial instruments made asked for permission if the publications will be used resource-capital.ch – newsletters and by Swiss Re- relationship is entered between the user and Swiss by publications of Swiss Resource Capital AG and professionally which will be charged. source Capital AG in other media (e.g. Twitter, Face- In its judgement of May 12th, 1998 the Landge- Resource Capital AG. In this respect there are no the respective authors within the scope of the res- book, RSS-Feed) are subject to German, Austrian richt (district court) Hamburg has ruled that by pla- contractual or quasi-contractual claims against pective offered charts are not trading recommenda- All information from third parties especially the and Swiss copyright and ancillary copyright. Any cing a link one is responsible for the contents of the Swiss Resource Capital AG. tions and are not equivalent to a financial analysis. estimates provided by external user does not reflect use which is not approved by German, Austrian and linked websites. This can only be prevented by ex- the opinion of Swiss Resource Capital AG. Conse- Swiss copyright and ancillary copyright needs first plicit dissociation of this content. For all links on the A disclosure of the security holdings of Swiss Re- quently, Swiss Resource Capital AG does not gua- the written consent of the provider or the respective homepage http://www.resource-capital.ch and its Protection of personal data source Capital AG as well as the respective authors rantee the actuality, correctness, mistakes, ac- rights owner. This applies especially for reproducti- sub-websites and in all publications of Swiss Re- and/or compensations of Swiss Resource Capital curacy, completeness, adequacy or quality of the on, processing, translation, saving, processing and source Capital AG applies: Swiss Resource Capital The personalized data (e.g. mail address of cont- AG as well as the respective authors by the compa- information. reproduction of contents in databases or other elec- AG is dissociating itself explicitly from all contents of act) will only be used by Swiss Resource Capital AG ny or third parties related to the respective publica- tronic media or systems. Contents and rights of third all linked websites on http://www.resource-capital. or from the respective company for news and infor- tion will be properly declared in the publication or in parties are marked as such. The unauthorised repro- ch – website and its sub-websites and in the http:// mation transmission in general or used for the res- the appendix. Note to symmetrical information and opinion duction or dissemination of single contents and www.resource-capital.ch – newsletter as well as all pective company. generation complete pages is not permitted and punishable. publications of Swiss Resource Capital AG and will The share prices of the discussed financial instru- Only copies and downloads for personal, private not take ownership of these contents.” ments in the respective publications are, if not clari- Swiss Resource Capital AG can not rule out that and non commercial use is permitted. Data protection fied, the closing prices of the preceding trading day or other market letters, media or research companies more recent prices before the respective publication. are discussing concurrently the shares, companies Links to the website of the provider are always Liability limitation for contents of this website If within the internet there exists the possibility for and financial products which are presented in all pu- welcome and don’t need the approval from the web- entry of personal or business data (email addresses, It cannot be ruled out that the interviews and esti- blications of Swiss Resource Capital AG. This can site provider. The presentation of this website in ex- The contents of the website http://www.resour- names, addresses), this data will be disclosed only if mates published in all publications of Swiss Resour- lead to symmetrical information and opinion genera- ternal frames is permitted with authorization only. In ce-capital.ch and its sub-websites are compiled the user explicitly volunteers. The use and payment ce Capital AG were commissioned and paid for by tion during that time period. case of an infringement regarding copyrights Swiss with utmost diligence. Swiss Resource Capital AG for all offered services is permitted – if technical the respective company or related third parties. Resource Capital AG will initiate criminal procedure. however does not guarantee the accuracy, comple- possible and reasonable – without disclosure of the- Swiss Resource Capital AG as well as the respective teness and actuality of the provided contents. The se data or by entry of anonymized data or pseudo- authors are receiving from the discussed companies No guarantee for share price forecasts use of the contents of website http://www.resour- nyms. Swiss Resource Capital AG points out that and related third parties directly or indirectly expen- Information from the Federal Financial Super- ce-capital.ch and its sub-websites is at the user’s the data transmission in the internet (e.g. communi- se allowances for the preparation and the electronic In all critical diligence regarding the compilation visory Authority (BaFin) risk. Specially marked articles reflect the opinion of cation by email) can have security breaches. A com- distribution of the publication as well as for other and review of the sources used by Swiss Resource the respective author but not always the opinion of plete data protection from unauthorized third party services. Capital AG like SEC Filings, official company news You can find further information on how to protect Swiss Resource Capital AG. access is not possible. Accordingly no liability is or interview statements of the respective manage- yourself against dubious offers in BaFin brochures di- assumed for the unintentional transmission of data. ment neither Swiss Resource Capital AG nor the re- rectly on the website of the authority at www.bafin.de. The use of contact data like postal addresses, tele- Exploitation and distribution rights spective authors can guarantee the correctness, Liability limitation for availability of website phone and fax numbers as well as email addresses accuracy and completeness of the facts presented published in the imprint or similar information by Publications of Swiss Resource Capital AG may in the sources. Neither Swiss Resource Capital AG Swiss Resource Capital AG will endeavour to of- third parties for transmission of not explicitly re- neither directly or indirectly be transmitted to Great nor the respective authors will guarantee or be liable Liability limitation for links fer the service as uninterrupted as possible. Even quested information is not permitted. Legal action Britain, Japan, USA or Canada or to an US citizen or for that all assumed share price and profit develop- with due care downtimes can not be excluded. against the senders of spam mails are expressly re- a person with place of residence in the USA, Japan, ments of the respective companies and financial The www.resource-capital.ch – website and all Swiss Resource Capital AG reserves the right to ch- served by infringement of this prohibition. Canada or Great Britain nor brought or distributed in products respectively in all publications of Swiss sub-websites and the www.resource-capital.ch – ange or discontinue its service any time. their territory. The publications and their contained Resource Capital AG will be achieved. newsletter and all publications of Swiss Resource By registering in http://www.resource-capital.ch information can only be distributed or published in Capital AG contain links to websites of third parties – website and its sub-websites or in the http://www. such states where it is legal by applicable law. US (“external links”). These websites are subject to lia- Liability limitation for advertisements resource-capital.ch – newsletter you give us permis- citizens are subject to regulation S of the U.S. Secu- No guarantee for share price data bility of the respective operator. Swiss Resource sion to contact you by email. Swiss Resource Capi- rities Act of 1933 and cannot have access. In Great Capital AG has reviewed the foreign contents at the The respective author and the advertiser are tal AG receives and stores automatically via server Britain the publications can only be accessible to a No guarantee is given for the accuracy of charts initial linking with the external links if any statutory exclusively responsible for the content of advertise- logs information from your browser including cookie person who in terms of the Financial Services Act and data to the commodity, currency and stock violations were present. At that time no statutory vi- ments in http://www.resource-capital.ch – website information, IP address and the accessed websites.

44 5 Table of Contents Imprint

Disclaimer ...... 02 Editor Swiss Resource Capital AG Table of Contents | Imprint ...... 07 Poststr. 1 Invest with the commodity professionals 9100 Herisau, Schweiz Preface ...... 09 Tel : +41 71 354 8501 Fax : +41 71 560 4271 50-million-pound deficit should soon lead to a new uranium boom ...... 10 [email protected] www.resource-capital.ch Interview with Dr. Christian Schärer – Manager of the Uranium Resources Fund and Partner of Incrementum AG ....20 Editorial staff Jochen Staiger Interview with Scott Melbye – Executive Vice President of Uranium Energy, Tim Rödel Commercial V.P. of Uranium Participation Corp. and Ex-Advisor to the CEO of Kazatomprom ...... 26 Layout/Design Frauke Deutsch

Company Profiles All rights reserved. Reprinting You do not have to be a stock market professional SRC Mining & Special Situations Zertifkat material by copying in electronic GoviEx Uranium ...... 32 form is not permitted. to make wise investment decisions. ISIN: DE000LS9PQA9

Invest together with Swiss Resource Capital AG and WKN: LS9PQA IsoEnergy ...... 36 Editorial Deadline: 10/31/2020 Asset Management Switzerland AG in the mega­ Currency: CHF/ Euro* Skyharbour Resources...... 40 Cover: Vaclav Volrab / shutterstock.com trend commodities. Since 05.03.2020 the experts‘ Certifcate fee: 0.95 % p.a. Page 25: www.fredography.be / by specialist knowledge has been available as a Performance fee: 15 % p.a. Uranium Energy...... 46 unsplash.com) Wikifolio certifcate: *Trading in Euro is possible at the Euwax in Stuttgart. Back: photo 1, 2, 3: flickr.com/photos/nrcgov photo 4: TTstudio / shutterstock.com Currently the following titles are represented in the SRC Mining & Special Situations Certifcate (4/2020): FRANCO NEVADA | BHP BILLI­ All images and graphics are, unless TON | R.DUTCH SHELL B | MAG SILVER CORP. | ENDEAVOUR SILVER | AGNICO EAGLE | RIO TINTO | TOTAL FINA ELF SA B EO 10 | CALEDONIA otherwise stated, by the companies. MINING O.N. | FREE MCMORAN COP | ANGLO AMERICAN | URANIUM ENERGY CORP. | DYNACERT INC. | OSISKO GOLD ROYALTIES LTD | Charts from 11/05/2020 SIBANYE STILLWATER LTD | CHEVRON | FIORE GOLD LTD | URANIUM PARTICIPATION CORP. | MAPLE GOLD MINES LTD | ROYAL NICKEL CORP. | from JS Charts by amCharts NEWMONT CORP. DL 1,60 | BLUESTONE RESOURCES | AURYN RESOURCES INC. | BARRICK GOLD CORP. | GOLDMINING INC. | COPPER MOUNTAIN MINING CORP. | MILLENIAL LITHIUM CORP. |

ISOENERGY6 LTD. O.N. | SKEENA RES LTD NEW | AURANIA RES CAD R.S. | ENWAVE. 7 Commodity-TV Preface The whole world of commodities in one App!

Dear Readers,

This new edition of the 2021 Uranium Report The closure of many large uranium mines in marks the fifth year of this special report se- recent years could be the ignition point for ries. For uranium, we see major imbalances rising uranium prices in the future. Supply is in supply and demand coming to the mar- still falling, and demand is rising slightly. kets. Without the generation of energy from uranium, i.e. nuclear power plants, many Of course, we also present some interesting countries will not only have a huge problem companies of this industry with facts and fi- in the stable basic energy supply, but also a gures. This is to be understood as a suggesti- Jochen Staiger is founder and CEO real power supply problem in itself as a re- on and not as a buy recommendation since of Swiss Resource Capital AG, sult of the electromobility revolution. The de- there are only very few listed companies left. located in Herisau, Switzerland. As velopment of the charging infrastructure is chief-editor and founder of the first progressing much more rapidly in Europe Raw materials are the basis of our entire two resource IP-TV-channels and electricity consumption is also continu- economic coexistence. Without raw materi- Commodity-TV and its German ing to rise. Even I now drive a hybrid and di- als there are no products, no technical inno- counterpart Rohstoff-TV, he reports ligently charge electricity for short trips in the vations and no real economic life. We need a about companies, experts, fund city. The question is: Where does all the reliable and constant basic energy supply for managers and various themes electricity come from, and without pollutant our highly industrialized world. around the international mining emissions? Nuclear power is the only viable business and the correspondent solution for many years to come, since the Swiss Resource Capital AG has set itself the metals. sun and wind are not capable of providing a task of providing interested people with base load and can therefore only be sup- comprehensive information about metals, Download pliers. This question is all the more pressing raw materials and various listed mining com- our unique App in Germany, where nuclear power is being panies. On our website www.resource-capi- switched off and coal is being made to di- tal.ch you will find more than 20 companies for free! sappear. Here it is once again worthwhile to from various commodity sectors as well as a look at China, where a balanced mix of pho- lot of information and articles about commo- tovoltaics, hydroelectric and wind power dities. and above all nuclear power is being used. China has understood that you need a relia- With our special reports we want to give you ble, clean and cheap power supply, and nuc- insights and provide you with comprehensi- lear power is the perfect solution. ve information. In addition you have the chance to inform yourself through our two Closely connected to the battery metals raw material IPTV channels www.Commodi- Tim Rödel is Manager Newsletter, (main components of lithium-ion batteries, ty-TV.net & www.Rohstoff-TV.net free of Threads & Special Reports at SRC Watch Management & Expert Interviews, Site-Visit-Videos, News Shows the heart of every electric vehicle) is the ba- charge. For the mobile everyday life, you can AG. He has been active in the se-loadable power supply (charging) of the download our newly developed Commodi- commodities sector for more than and receive top and up to date Mining Information on your mobile device batteries, and thus either the burning of coal, ty-TV App for iPhone and Android on your 15 years and accompanied worldwide! gas or oil or the use of uranium as a fuel ele- Smartphone. Here you get real-time charts, several chief-editor positions, e.g. at ment in nuclear power plants. There are no stock prices, indices and the latest videos Rohstoff-Spiegel, Rohstoff-Woche, other base-load-capable energy production automatically on your cell phone. My team Rohstoffraketen, the publications Amazing features: methods as long as no adequately large sto- and I hope you enjoy reading the Special Re- Wahrer Wohlstand and First Mover. rage possibilities for electricity from renewa- port Uranium and we hope to provide you He owns an enormous commodity • Company Facts ble energy sources are created. This report with a lot of new information, impressions expertise and a wide-spread • Global Mining News is intended to provide the reader with an and ideas. network within the whole resource overview of the uranium industry and the real sector. • Push Notofications facts, as well as of the energy supply world- • Commodity-TV, Rohstoff-TV and Dukascopy-TV wide through nuclear power. Yours, Jochen Staiger • Live Charts 9

Swiss Resource Capital AG | Poststrasse 1 | 9100 Herisau | Schweiz | www.resource-capital.ch 50-million-pound deficit should soon lead to a new uranium boom

The world needs clean energy. Even in the Nuclear energy is currently the Uranium – The concentrated energy Corona crisis! While the consumption of only base-load capable energy electricity hardly decreased during the coro- source that can manage the na period, many mines had to close down balancing act between an enor- Uranium is one of only two (temporarily) due to corona. This led to a mously increasing power demand elements in which nuclear fission slump in the production of corresponding and clean energy generation! chain reactions are possible fuels such as coal and uranium. So while Uranium is irreplaceable for it! many large mines had to temporarily shut Let us come to the element uranium itself. According to the International Atomic Ener- down their operations or even stop them The worldwide energy demand has multip- Uranium is named after the planet Uranus gy Agency (IAEA), the largest uranium ore altogether due to possible infections of the lied since the end of the 1980s. About 11% and is a chemical element with the element reserves are in the USA, Niger, Australia, Ka- personnel, at the same time the system-rele- of the total energy demand worldwide is cur- symbol U and the atomic number 92. Urani- zakhstan, Namibia, South Africa, Canada, vant coal and nuclear power plants must rently covered by nuclear power. However, it um is a metal whose all isotopes are radi- Brazil, Russia, Ukraine and Uzbekistan. continue to operate in order not to let the so- is still mainly fossil fuels such as coal and oactive. Uranium, which occurs naturally in cial system completely fall apart. The USA in crude oil that are burned to generate energy. minerals, consists of the isotope 238U particular, but also other nations in which The increasing demand for a reduction of (99.3%) and 235U (0.7%). Uranium mining nuclear energy plays an important role (such CO emissions and the ever more noticeable ² phenomenon of „global warming“ are cau- Uranium mining is basically divided into two sing energy-guzzling industrial nations and different processes: Conventional producti- [RN] 5f36d17s 2 emerging markets in particular to increase 92 on and extraction by means of in-situ lea- their energy efficiency and improve their CO ching or in-situ recovery (ISR). The exact Base load capability, what is that? ² budgets. The second important point is the method of extraction depends on the cha- Base load capability is the ability of a power plant to provide ongoing electrical revolution, which in a few U racteristics of the ore body, such as depth, continuous, reliable electrical energy. This includes nuclear pow- years will not only make us almost 100% shape, ore content, tectonics, type of host er plants, coal-fired power plants, gas-fired power plants, oil-fi- electrically mobile but will also bring a huge Melting Point 1406 K rock and other factors. Boiling Point 4203 K red power plants and steam power plants fired with substitute additional surge in demand for clean energy. fuels. Combined heat and power plants, biomass and biogas Burning coal and oil cannot achieve both at URANIUM power plants can also be base load capable under certain condi- the same time. The alternative is renewable Conventional production tions, although fossil or renewable raw materials must also be energies, which require an enormous amount burned. The only base-load-capable electricity generation from of time and money and are not even close to Most of the uranium is extracted by underg- renewable energy sources is by means of hydroelectric power base load-capable without the lack of larger The uranium isotope 235U is fissionable by round mining. The deposits are developed plants, although this often requires a major intervention in nature. electricity storage facilities, or nuclear pow- thermal neutrons and is therefore, apart from via shafts, galleries, ramps or spirals. Prob- Photovoltaic and wind power plants are not suitable for base er, which can provide a great deal of energy the extremely rare plutonium isotope 239Pu, lems are often caused by the ingress of mine in a CO -neutral way. Some countries have the only known naturally occurring nuclide water and the so-called ventilation (technical load due to their often strongly fluctuating generation and thus ² feed-in. long recognized this possibility of fast and with which nuclear fission chain reactions measures to supply mines with fresh air). The almost clean energy generation and are now are possible. For this reason, it is used as a exact mining method is chosen according to pushing the construction of new nuclear po- primary energy source in nuclear power the characteristics of the deposit. Above all, wer plants. plants and nuclear weapons. the shape of the ore bodies and the distribu- tion of the uranium in them are decisive. In as France, Great Britain and China), urgently underground mining, an ore body can be need fuel supplies. No matter what it costs, Occurrence mined in a targeted manner, resulting in much one might almost think so, at least if one ta- less overburden than in open pit mining. kes a look at the uranium spot price. The Uranium does not occur in nature in solid Near-surface or very large ore bodies are price of uranium has risen sharply in the past form, but always in minerals containing oxy- preferably extracted by open pit mining. This two years but is still far from an economic gen. There are a total of about 230 uranium enables the use of cost-effective large-scale level. This has recently created a supply minerals that can be of local economic im- technology. Modern open-cast mines can be shortfall of more than 50 million pounds of portance. There is a wide range of uranium from a few meters to over 1,000 meters deep U O per year, which can still be made up by deposits from magmatic hydrothermal to se- and can reach a diameter of several kilome- 3 8 stockpiles. But this will soon be over, which dimentary types. The highest uranium grades ters. Open pit mining often produces large should give uranium investors a big boost are found in unconformity-type deposits with quantities of overburden. As in underground for their depot. average uranium grades ranging from 0.3% mining, large quantities of water may have to to 20%. The highest grades are over 70% be extracted for open pit mining, but ventila- U O ! tion is not a major problem. 3 8

10 11 The current status of the uranium market

The last 45 years at missing Investments into the procurement structure - thus into the inf- rastructure of mines and processing plants - will prove for uranium investors in the fu- ture with high probability as lucky chance! For despite the fact that, at the latest since the Chernobyl catastrophe and even more so after the events surrounding the nuclear facilities in Fukushima, Japan, the number of nuclear power plants worldwide is already at a record high. Just 30 countries currently (as Overview of the reactors currently of October 2020) operate 442 reactors with a under construction (blue) and the total net electrical output of around 391.7 gi- corresponding net electrical capacity gawatts. (light blue) per country The current leading nuclear power nation Source: www.iaea.org/PRIS with 95 reactors in operation is the USA. Ho- wever, emerging markets such as China and India in particular are requiring more and more energy and have been focusing on a predicted in the fall of 2015 that its country But where is the additionally needed urani- massive expansion of their nuclear power would rise among the world‘s largest users of um going to come from? Currently, only a Overview of the currently running capacities for some time now. It is therefore nuclear power after the Chinese government few of the 22 Indian nuclear reactors are run- reactors (blue) and the net electrical not surprising that 54 additional nuclear re- planned to build more than 80 new nuclear ning at full load. While Japan, China, Russia power (light blue). ISR production actors with a total net electrical capacity of reactors in the next 15 years and more than and South Korea in particular have been Source: www.iaea.org/PRIS around 57.3 gigawatts are currently under 230 new nuclear reactors by 2050. According able to secure uranium resources worldwide In the ISR method, water and small amounts construction. Plans for 112 additional reac- to information from China Power, the new in recent years, India has completely missed of CO and oxygen are injected into the tors have already been completed and 330 five-year plan for the energy industry, envisa- this opportunity. Only recently, several 2 sandstone layers with the help of so-called more are in the pipeline. ges a faster expansion of nuclear capacity purchase agreements have been concluded injection wells, the uranium is dissolved out than has been the case to date: previously, with companies from the USA, Canada, Na- and pumped back to the surface for further capacity was expected to rise to 58 giga- mibia, Kazakhstan, Russia, Great Britain and processing with the help of so-called reco- watts in the coming years, but now more South Korea. very wells. The whole process is therefore The demand situation than 90 gigawatts are under discussion. In At present, 7 nuclear reactors are under con- completely underground. The advantages of 2005, the plan was for only 40 gigawatts by struction in India, with another 42 to follow this process are therefore obvious: there is China sets the tone in the future 2020. By 2030, 110 reactors should be on by 2050. no need for major earth movements as in the grid. A total of 11 nuclear reactors are open-pit operation, no overburden or run-off While many self-proclaimed experts had al- currently under construction. In a further basins for heavy metals and cyanides are ready prophesied the end of the atomic age, step, China‘s nuclear power generation is to Russia with increasing nuclear created. Only the wells are visible on the sur- this is only just beginning to develop in the be expanded to 120 to 160 gigawatts by capacity face, the areas around the wells can conti- world‘s most populous country. 49 reactors 2030! nue to be farmed without restrictions. The with a total net electrical capacity of 46.5 gi- Russia has also announced a massive ex- ISR process makes even low grade deposits gawatts are operated in the Middle King- pansion of its nuclear power plants. Russia economically mineable, the capital costs for dom, which has so far mainly used coal to India massively expands its currently operates 38 nuclear reactors with mine development are greatly reduced. In generate electricity. Of these, 10 new reac- nuclear program about 28.5 gigawatts. 4 plants are in the con- addition, the whole process can be carried tors alone have been put into operation sin- struction phase. In addition, Russia plans to out with a minimum of manpower, which ce the beginning of 2018. So the expansion India itself has hardly any significant uranium build 46 more nuclear power plants, which also drastically reduces operating costs. Ac- of nuclear power in China is enormous and is deposits. A tenfold expansion of its own should increase the share of nuclear energy cording to a study by the World Nuclear As- happening at breathtaking speed! nuclear energy capacities would at the same in the Russian energy mix from currently sociation, 25% of the uranium mined outside The state-owned power plant manufacturer time mean a 10% increase in total global 15% to over 20%. In a further step, Russia Kazakhstan recently came from ISR mines. Power Construction Corporation of China nuclear power generation. wants to increase this quota again to 25%.

12 13 Rising global expansion of wing all the time. Many of the coal-fired po- same time, more than 75% of the expected nuclear energy wer plants still dating from the 1950s and reactor demand until 2025 is not contractu- 1960s operate inefficiently and uneconomi- ally secured. For a commodity such as urani- In addition to the 31 nations that already cally. Sooner rather than later they have to um, which is only marginally traded, this re- have nuclear reactors on the grid, another 17 be taken off the grid. Power consumption, turn to more „normal“ long-term contracts is countries are planning to install nuclear po- on the other hand, is rising continuously. So likely to put tremendous pressure on both wer plants. Among them are Egypt, Jordan, the USA has no choice but to increase the long-term prices and spot prices. Internatio- Turkey and Indonesia. At the beginning of number of its nuclear reactors in the coming nal plant operators are therefore now increa- March 2020, the 31st nation, the United Arab years. Of course, climate-friendly energy is singly showing signs of increased buying Emirates, entered into nuclear power pro- also provided by photovoltaic systems, wind activity. duction. There are another 3 reactors under farms, hydroelectric power plants or geo- construction. South Korea currently has 4 thermal energy, but these energy producers plants under construction. can only solve acute energy problems to a Summary limited extent, since they are very costly on the one hand and their output fluctuates ac- The fact is that 442 reactors are currently on- cording to the time of day and weather con- line and at least 330 more are to be added by ditions on the other. Therefore, nuclear pow- 2040. 54 plants are already under construc- er is the only remaining climate-friendly tion, another 110 are in the concrete plan- energy generation option. Given the amount ning phase. of additional electricity required over the Furthermore, about 90% of all long-term Overview of the age of the currently next two to three decades, renewable ener- supply contracts between uranium pro- needed to operate the reactors will come running reactors. Many will (have to) be gies can only serve as an admixture to the ducers and power generation companies are from. The uranium industry in the USA is replaced by more powerful ones in the overall energy mix. about to expire, which is likely to put estab- only a shadow of the past. In the last 45 ye- coming years. In recent years, an application has been filed lished nuclear power nations such as the ars, practically nothing has been invested in (Source: www.iaea.org/PRIS) for an extension of the operating life of more USA in particular in trouble. the development of new deposits and al- than 60 U.S. nuclear reactors to 60 years of most 95% of the uranium needed has been total operating time. In addition, there are obtained from disarmament programs. US about 40 applications for the construction of nuclear reactors already consume about new nuclear power plants. So far, however, The supply situation 21,300 tons of uranium annually. An increase only 2 plants are under construction, another in capacity would accordingly require an in- 20 are in the concrete planning phase. Established producers are crease in the amount of uranium needed. running out of air The World Nuclear Association (WNA) ex- pects that in 2035, the USA alone will need Long-term supply contracts The established uranium producing nations about 40,000 tons of uranium annually. Even expire shortly Australia, Canada, Russia and Niger already in the heyday of U.S. uranium production in had problems to expand their production the 1960s and 1970s, it would not have been The previous cycle of contracting, domina- before the Corona crisis. All four countries possible to extract such a quantity from the ted by the uranium price spikes of 2007 and together produced almost 19,445 tons of country‘s own plants. US uranium producti- 2010, has led plant operators to enter into uranium in 2019. In 2009, the figure was on reached its peak in 1980, when about higher priced contracts with very long terms 28,000 tons of uranium. Some mines were 29,000 tons of uranium were extracted from of approximately 8 to 10 years. On the one closed down due to the weak uranium spot the ground. After the end of the Cold War, Overview of currently running reactors hand, these old contracts are expiring, but price. disarmed nuclear weapons in particular (blue), currently shut down reactors The USA is threatened with ener- on the other hand, the plant operators have became the most important source for US (grey) and reactors under construction gy collapse not yet made any efforts to replace these uranium demand. This led to a decline in (light blue). supply volumes. Forward transactions by US-American uranium production American uranium production to less than Source: www.iaea.org/PRIS With 95 reactors, the USA has by far the lar- plant operators are therefore declining shar- is no longer in existence 500 tons of uranium per year. As a direct gest active nuclear power plant fleet world- ply, which means that the quantities required consequence, much of the infrastructure wide. Nevertheless, the USA is threatened for which there is no contractual obligation The situation in the USA is even more threa- and approved production facilities were sim- with a collapse in energy supply. The United yet, but which must be contractually secured tening. Although the Obama administration ply closed or completely dismantled. States is still the country with the highest per in future, are also increasing. Uncovered de- has decided on a US$ 54 billion program to capita consumption of electricity worldwide. mand is expected to exceed one billion promote the nuclear power industry in 2010, And the Americans‘ hunger for energy is gro- pounds of U O in the next 10 years. At the it is still far from clear where the uranium 3 8

14 15 Kazakhstan – the new uranium nada by about 45%. In addition, Cameco superpower closed its Cigar Lake mine in March 2020 for four weeks due to corona, which was subse- While almost all established uranium pro- quently extended. In addition, Orano‘s McC- ducers are having difficulties in rebuilding or lean Lake processing plant also had to clo- expanding their uranium production, one re- se. Other closures include Moab Khotseng gion has now moved past all other countries in South Africa and the Chinese-owned Hu- to the forefront of uranium mining: Central sab and Rössing mines in Namibia, to name Asia. In the last ten years, Kazakhstan in par- the most important. The spot market, whose ticular has multiplied its uranium production supply is mainly composed of uranium there. Uranium production in the former Sovi- mined as a by-product at other mines, has et republic rose from 1,870 to over 24,586 also seen a recent decline in supply due to tons between 2000 and 2016. In 2009, Ka- several mine closures. zakhstan thus also overtook the previous lea- der Canada and is now responsible for about 41% of total global uranium production. Huge supply gap was already present before Corona (Source: own representation) Massive production cuts to stabi- Even before the Corona Pandemic, the sup- lize prices ply shortfall was already about 40 million pounds of uranium per year. The current de- about US$30 per pound of U O . So where If the uranium price were at US$130 per 3 8 But although Kazakhstan is one of the na- mand is therefore largely covered by stocks, will the more needed uranium come from in pound, approximately 3.86 million tonnes of tions that can currently mine uranium at the which are thus rapidly running out. Thus, sin- the future? uranium could be economically mined. The lowest cost, the country has long since cea- ce 2017, about 44% of production has been Increased production can only be achieved known reserves would then last for about 56 sed to be prepared to squander its uranium taken off the market. So there is de facto al- through a higher uranium price and associa- years at current consumption levels. deposits at rock-bottom prices. In early ready a supply gap. At the current level of ted with large investments in the expansion 2017, the state-owned Kazatomprom an- 442 nuclear reactors worldwide, consumpti- of existing and new mines. nounced that it would cut its own uranium on is about 183 million pounds of U O , of However, the basic problem remains the re- 3 8 production by at least 20% in 2017. In May which only about 139 million pounds are co- latively low uranium spot price, which does Conclusio 2018 Kazatomprom announced further pro- vered by global uranium production (exclu- not allow producers to access deposits that duction cuts. In addition to this, the produc- ding the special effect Corona). The Interna- are more difficult to access and therefore Doubling the demand is matched tion had to be further reduced due to corona. tional Atomic Energy Agency (IAEA) estima- more costly to mine. by almost no increase in supply! However, Kazatomprom is not the only ura- tes that global uranium demand will increase nium producer that has been relying on pro- to up to 300 million pounds of U O in 2030 Experts estimate that at a market price of However, the uranium spot price is currently 3 8 duction cuts in the face of weak uranium due to the construction of new nuclear pow- US$40 per pound of uranium, there are just as far away from the US$130 per pound ura- prices. Uranium major Cameco announced er plants. under 713,000 tonnes of commercially reco- nium mark as current demand will soon be production cuts and closed its McArthur Ri- verable uranium. from future demand. According to a very ver mine and Key Lake facilities indefinitely conservative estimate by the International in January 2018. The Rabbit Lake mine was Summary With an annual consumption of about 68,000 Atomic Energy Agency (IAEA), this demand also closed, both of which are among the tons of uranium, these deposits would there- will double in the coming years. In 10 to 15 top ten uranium mines in the world. McArt- The supply side is currently in a state of flux fore be sufficient for just 10 years, provided years, the above-mentioned ranges could be hur River is the mine with the second highest in the uranium sector. The secondary supply that the market price for them remained halved without hesitation. uranium production worldwide. With the from Russia‘s disarmed nuclear stocks is constant at at least US$40 during this period All this shows that the still - apparently che- temporary closure, 10% of the total world becoming less and less important. While in and demand also remained constant. Howe- apest - way of generating electricity can only production was taken off the market at a 2006 37% of the demand was covered by ver, this demand will inevitably increase. be used if the market price for the starting stroke. In addition, Cameco has for some disarmed nuclear weapons, it is now only product uranium rises again. The market time been acting as a uranium buyer itself in about 4%. At the same time, however, the If the market price for uranium were to rise, price of uranium is also determined by sup- order to supply long-term, higher-priced number of nuclear reactors will increase dra- justifying extraction costs of US$80 per ply and demand. However, if the market supply contracts with corresponding urani- matically. The established uranium pro- pound of uranium, it would be possible to price no longer permits economic producti- um volumes at spot prices. ducers will not be able to completely cover economically mine approximately 1.28 milli- on, this price must and will inevitably rise. In Since 2017, Kazatomprom has reduced its this equally erratic increase in demand - at on tonnes of uranium. Range at current the case of uranium, demand will also rise uranium production by about 15% and Ca- least not at the current uranium spot price of consumption: 19 years. sharply due to the construction of several

16 17 hundred new nuclear reactors, so that the This led to the US government announcing ... and reduces uranium imports market price will benefit twice over. And thus in February 2020 that it would provide from Russia of course also those investors who have re- US$150 million annually over the next 10 ye- cognized this trend in time. ars to create a strategic uranium reserve. In addition to these measures, in September This reserve will be entirely derived from ura- 2020, U.S. President Trump signed an nium from US mines. amendment to the agreement to suspend High proportion of demand has the U.S. Department of Commerce‘s an- not yet been covered The most important decisions were as fol- ti-dumping investigation into uranium from lows: the Russian Federation, which reduces Ame- Uncovered demand is expected to exceed rica‘s dependence on Russian natural urani- one billion pounds of U O in the next ten ye- U.S. purchases of 17-19 million pounds um concentrations by up to 75% compared 3 8 ars. More than 80% of the expected reactor of U O , starting in 2020 from domestic to previous levels. The agreement was sche- 3 8 demand until 2025 will not be contractually producers on a competitive basis. Sub- duled to expire at the end of 2020 and allo- secured. For a commodity such as uranium, sequent support is considered necessary wed the import of approximately 20% of which is only marginally traded, this return to over a period of up to 10 years to restore U.S. low enriched uranium requirements more „normal“ long-term contracts is likely to market share. from Russia. The U.S. Department of Com- Uranium price development put enormous pressure on both long-term Streamline regulatory reform and access merce determined that natural uranium and over the last 5 years prices and spot prices. International plant to land for uranium mining. conversion components will account for The best uranium stocks promise (Source: own representation) operators are therefore already seeing increa- Supporting the efforts of the Department approximately 7% of U.S. enrichment needs multiplication potential! sing signs of increased buying activity. of Commerce to extend the Russian and will not exceed 5% from 2026. This me- suspension agreement to protect against ans a reduction of Russian natural uranium We have taken the current situation of a far future uranium dumping in the U.S. mar- imports by up to 75% compared to previous too low uranium spot price, which does not USA build up strategic reserves ... ket. limits. In connection with the fact that the reflect reality, plus the massive supply short- Enabling the Nuclear Supervisory Com- U.S. consumes about 47 million pounds of fall expected in the future, as an opportunity In January 2018, the only two remaining U.S. mission to refuse to import nuclear fuel U O annually, the initialed agreement re- to give you a compact summary of promi- 3 8 uranium producers, Ur-Energy and Energy manufactured in Russia or China for rea- duces the annual limit for natural uranium sing uranium shares. We are concentrating Fuels, filed a petition with the U.S. Depart- sons of national security. components from about 9.4 million pounds in particular on development companies ment of Commerce to highlight the relevan- Establishment of a nuclear industrial of Russian U O to less than 2.4 million with extremely promising projects, since 3 8 ce of U.S. uranium mining with respect to base structure analogous to the defense pounds. these offer a high chance of being taken over potential security concerns and the increa- industrial base. in addition to the actual appreciation through sing dependence of the energy industry on Financing of advanced water treatment a higher uranium spot price. At the end of uranium imports. technology for uranium mining and in-si- Uranium ETFs drive spot price up 2015, the merger (de facto takeover) of Fissi- The two companies argued that 40% of US tu recovery on Uranium with (by) Denison Mines failed, uranium demand is met by imports from Increase the efficiency of export proces- More recently, several other strong market among other things due to the vote of Fissi- countries of the former Soviet Union (namely ses and adopt 123 agreements to open players have joined, and are now securing on shareholders. The example shows that Russia, Kazakhstan and Uzbekistan), while up new markets for the export of U.S. ci- U O on the spot market at a low price, investors assume that there will be much 3 8 only 2% of demand is produced in the US. vil nuclear technology, materials and mostly from mines where uranium is a better takeover or merger opportunities in The dependence of both the U.S. energy in- nuclear fuel. by-product. In addition to Cameco, which is the future. This is precisely because the ura- dustry (after all, 20% of the electricity consu- now acting as a buyer, Uranium Participation nium sector is currently undervalued in this med in the U.S. comes from nuclear power The US government is thus accommodating Corp. and Yellow Cake Plc. have also been way, and this undervaluation needs to be eli- plants) and the military on these nations has the domestic mine operators to a certain ex- able to purchase larger quantities of urani- minated. increased alarmingly as a result. tent and is thus attempting to boost dome- um. Yellow Cake used its IPO proceeds of With their petition, the two producers sought stic production again. It is expected that US US$200 million to purchase 8.4 million to have both the Department of Commerce producers will need an average uranium pounds of U O from Kazatomprom with an 3 8 and President Trump develop a clear as- price of at least US$50 to US$60 per pound option to purchase uranium for an additional sessment of the U.S. import dependence on to be able to produce sustainably. Currently, US$100 million per year for 9 years. This ta- Russia, Kazakhstan and Uzbekistan, as well only Energy Fuels, Uranium Energy, Ur-Ener- kes immense pressure off the uranium spot as to promote the U.S. uranium industry. gy and Cameco are able to restart their mi- price and also puts pressure on utilities to In July 2018, the U.S. Department of Com- ning projects, although Cameco has already extend their expiring contracts. merce initiated an investigation into the im- announced that this is not in the best interest pact of uranium imports on U.S. national se- of the company. curity.

18 19 Interview with Dr. Christian Schärer – Manager of the Uranium Resources Fund and Partner of Incrementum AG

Dr. Schärer, the uranium sector experien- played out its relative cost advantages due guaranteed purchase quantities and prices More important for the further development ced a five-year dry spell after the Fukushi- to the „in-situ production method“ and the fixed at a high level had in the meantime of the uranium price, however, are the chan- ma reactor accident and could only reach production location Kazakhstan. With its been largely processed. To continue to pro- ges on the strategic level. Under the leaders- its temporary low point at the end of 2016. low-cost base behind it, the company has duce and sell uranium on the spot market at hip of the two heavyweights „Kazatomprom“ Since then, the uranium spot price in parti- become the market leader (40% market sha- prices that did not cover costs was not an and „Cameco“, the supply side has attemp- cular has been able to increase again so- re) in global uranium production. On the economically viable prospect in the long ted to bring the uranium market back into mewhat, albeit in small steps. However, the other hand, thanks to their full order books term. From an entrepreneurial point of view, balance over the past four years with signifi- sector does not yet seem to be really out of with long-term supply contracts at good it rather made sense to leave the uranium in cant production cuts. We see a previously the valley of tears. Why is that? conditions, the other producers were able to the ground unproduced and wait for better unknown supply side discipline in the mar- Dr. Christian Schärer is a partner at largely escape the price pressure of the mar- times. Accordingly, obligations under exis- ket. As a result, global mine production is Incrementum AG, responsible for It is indeed worthwhile to take a closer look ket in the first years. The market imbalances ting supply contracts were increasingly co- expected to have decreased by about a special mandates. During his at the market development since the Fukus- have therefore not diminished but even in- vered by purchases on the spot market. In quarter compared to 2016. studies he started to search for the hima reactor accident. This is the only way creased in the period from 2011 to 2016. addition, in Kazakhstan, too, it was recogni- strategic success factors of we can understand how the uranium market The need for adjustment was therefore all zed that the dominant market position was These production cuts reflect nothing more successful business models. A topic has moved into the currently attractive star- the greater. not sufficiently profitable due to the low than the recognition of economic realities by that still fascinates him today and ting position as part of a process of adjust- prices realized. This laid the foundation for uranium producers. From the point of view of inspires him in the selection of ment lasting several years. For the uranium In this context, it is also important to under- an adjustment of the supply side. The urani- the mine operators, the ratio of the producti- promising investment opportunities. sector, the Fukushima reactor accident was stand that uranium demand from power um price was able to move into a phase of on costs of their existing capacities (ASIC - He studied business administration a drastic event that threw the market off ba- plant operators is hardly price sensitive. This bottoming out due to initial production cut- All In Sustaining Costs) to the spot price is at the University of Zurich and lance. At that time, Japan had 54 reactors is because the total production costs of nuc- backs after years of price correction. relevant. If these costs are higher than the earned his doctorate while working on the grid, produced almost 30 percent of lear power depend only insignificantly on the selling price realized on the spot and futures at the Banking Institute Zurich with its electricity in nuclear power plants and level of fuel costs (uranium price). The most market, then uranium production makes no an analytical study on the thus generated about 1/8 of the global de- important cost block in the operation of a Since 2017, several major uranium pro- sense from a strategic point of view. investment strategy of Swiss mand for uranium. In addition, the power nuclear power plant is the cost of capital (ca- ducers have closed mines, reducing sup- pension funds in the real estate plant operators had significant uranium pitalized construction costs, which are writ- ply. The corona pandemic led to further In the current environment, the economic re- sector. He has acquired stocks to guarantee the security of supply. ten off over the entire operating period). mine closures or reduced production, ality for uranium producers is as follows: comprehensive financial market After the incident, the entire reactor fleet Thus, the cost structure of a nuclear power especially in mines where uranium is a Both spot and forward prices are hovering knowledge in various functions as was taken off the grid. Around ¼ of these plant differs significantly from that of fos- by-product and ends up on the spot mar- around USD 30 per pound. Global demand investment advisor, broker and reactors were finally shut down. The remai- sil-fired power plants (high proportion of fuel ket. To what extent will this supply shortage is around 180 million pounds. In total, about portfolio manager. Since the ning plants were subjected to a rigorous sa- costs in total production costs). This cost lead to an improvement in the current situ- 170 million pounds should be produced this summer of 2004, Schärer has been fety test and in some cases had to be retro- structure shapes the inventory cycle or the ation of the uranium sector? year. The market is accordingly in deficit and focusing on various investment fitted at great expense. Accordingly, the purchasing behavior of the nuclear power the resulting supply gap is covered by themes with a tangible asset restart of the Japanese reactor fleet took plant operators. It is not the absolute level of In this context, a distinction must be made non-strategic inventories and secondary character as an entrepreneur, considerably longer and brought fewer reac- the uranium price that primarily drives the between strategic and cyclical market de- sources. This development does not appear consultant and portfolio manager. tors back online than originally expected. As demand for uranium, but the considerations velopments. The corona-related production to be sustainable in view of the declining in- He also brings his practice-oriented a consequence, the demand for uranium of supply security. Who invests billions in the cutbacks have relieved the market in the ventories and is likely to become more pro- financial market knowledge to was significantly lower. construction of a nuclear power plant wants short term within the framework of a cyclical nounced in the coming years due to the eco- companies as a member of the to be able to operate it! Seen in this light, the fluctuation and have supported the spot nomic realities (ASIC) on the part of mine board of directors. He is married Against this background, it would be expec- behavior of power plant operators is not sur- price. This was because, due to production operators. This is because less than 100 mil- and father of a son. In his free time, ted that uranium production would be signi- prising: good availability and low price of interruptions, renowned producers could no lion pounds of the current production are he enjoys cooking for friends and ficantly reduced due to the collapse in de- uranium do not lead to the construction of longer cover their delivery obligations from mined at costs (ASIC) of maximum USD 30 family, hiking in the Ticino mand, thus bringing the market back into storage facilities, but to their mining. This their own uranium production, but only with per pound. Consequently, a good 40% of mountains or reading the biography balance. But this has not happened. On the puts an additional burden on the market. purchases on the spot market. This is a wel- the current production is not cost covering of a fascinating personality. contrary. Production was even expanded come contribution to the intended market from an economic point of view and thus not under the leadership of the two sector hea- In 2016, the turnaround in the uranium mar- stabilization. However, sooner or later these sustainable! Consequently, the accentuating vyweights „Kazatomprom“ and „Cameco“. ket was initiated by the realization that eco- capacities will find their way back into the supply gap can only be closed by signifi- From an economic point of view, 3 factors nomic realities can be faded out, but never market. This is particularly true for producers cantly higher uranium prices. In order for have supported this behavior. On the one permanently suspended. The full order where uranium is a by-product of the pro- production capacities that have already hand, „Kazatomprom“ has consistently books of the uranium producers with their duction process. been shut down (in Care & Maintenance sta-

20 21 tus) to come back on stream, prices of at for low-CO2 base load in the power grids of the same time, the demand side is growing electricity production. However, due to low least USD 50 per pound are needed. For the these rapidly growing economies. Nuclear at around 2% p.a. The supply gap (demand uranium prices, uranium production from realization of new mining projects, uranium power plants produce in a 7/24 rhythm and > mine production) will therefore widen. So domestic mines has collapsed in recent ye- prices are needed that are established abo- help to balance the large production fluctua- far, the deficit has been covered by the mi- ars and almost all the uranium needed for ve the USD 60 mark on a sustainable basis. tions of wind and solar plants and thus stabi- ning of non-strategic stockpiles and se- production has to be imported. However, a It must be taken into account that even the lize the power grids. In addition, nuclear po- condary sources. However, in view of the good 40% of these imports come from „only“ decommissioned capacities are not wer is a welcome trump card in the fight security of supply that power plant operators countries that are considered politically unt- available again at the push of a button. Re- against air pollution as well as the dependen- are striving for, the reduction of inventories is rustworthy from a US perspective or are out- commissioning takes time and costs money. ce on imports of fossil fuels. It also seems likely to soon reach its limits. By the end of side the US sphere of influence. This brings Not to mention the time it takes to imple- remarkable that this growth is characterized 2019, global inventories should have rea- the issue of supply security into focus. Ac- ment new mining projects... by high visibility. Nuclear power plants do not ched a level of around 820 million lbs. One cordingly, the U.S. Department of Commerce emerge or disappear overnight. Planning and third of this is likely to be accounted for by has drawn up various recommendations for So far, we have focused our discussion solely construction cost a lot and take a long time. China‘s strategic reserves, which are not action based on a study on supply security. on the pressurized supply side of the urani- However, once a reactor is in operation, the available for use. Net inventories of around Common to all of them is the intention to en- um market. But the supply side is also under operators aim to achieve high utilization of 550 million lbs. are therefore likely to be in courage and support uranium production pressure. Remarkable is the fact that despite production capacity over the entire life of the hands of producers. With an annual de- from domestic sources. the nuclear phase-out decided in the Ger- more than 40 years, if possible. This transpa- mand of around 180 million lbs., this corres- man-speaking countries (Germany, Switzer- rency of the development of demand clearly ponds to a demand coverage of around 3 The latest U.S. government draft budget in- land), global electricity production from nuc- distinguishes the uranium market from the years. This means that the inventory surplus cluded a proposal to build a strategic urani- lear power plants has again exceeded the old cyclically sensitive commodity markets in the has largely been eliminated and this source um reserve. Up to USD 1.5 billion is to be highs from the time before the events in Fu- base metal or energy sector. of supply will soon dry up. The conclusion made available for this purpose over the kushima. In particular, the expansion of reac- from my point of view is clear: the risk on the next 10 years. However, much is still unclear tor fleets in China, India, the Middle East and In summary, with a view to the current cons- uranium market is about to shift from the with regard to the implementation. In additi- Russia is leading to a net growth in demand tellation on the uranium market, we maintain supply to the demand side. The demand on, the deal is only a proposal within the on- of around +2% p.a. despite various reactor that on balance a further expanding supply side will become the catalyst for a significant going budget process and has yet to be pas- shutdowns in the western industrialized gap is becoming apparent. About 40% of price increase with the start of the new in- sed by parliament. It is also unclear whether countries. This expansion of nuclear power is the current uranium production is not sus- ventory cycle. This is the only way to close the next administration will continue to sup- driven by the constantly increasing demand tainable from an economic point of view. At the growing supply gap. port the project. It is also not regulated at what price the uranium will be purchased. At Against this background, the risk-loving in- a fixed price that covers the production vestor is offered an investment opportunity costs? Or at the current spot price? Depen- with an increasingly asymmetrical chan- ding on the definition of the purchase price, ce-risk profile (upside > downside). One different volumes could be acquired with the uranium resources fund should not be irritated by the duration of the aforementioned US$ 1.5 billion. It also re- soil formation process. The long-term mains unclear from whom the uranium decline in share prices has worn many inves- should be purchased. However, the lack of tors down and thinned out the investment domestic production capacity is precisely universe. The research coverage of the sec- the origin of the initiative. So, there is still a tor is correspondingly low. Moreover, the lot that has not yet been thought through. sector‘s market capitalization is so low that But the impulse has been set. it cannot be an investment theme for institu- tional investors at present. Der nicht fossileThe Bausteinnon-fossil für building ein alternatives block for Energieportfolio. an You are manager of the Uranium Resour- ces Fund (ISIN LI0224072749) of LLB Fund- alternative energy-portfolio The USA, in particular, is working to revive services AG in Liechtenstein. What is your antizyklisch. fokussiert. chancenreich. its uranium industry. How do you intend to strategy and what does the fund actually achieve this? represent? anticyclical. focused. promising The background for the various initiatives An investment in our fund is a focused bet on and proposals to support domestic uranium the widening supply gap in the uranium mar- producers is the fact that US nuclear power ket. An investor with a medium-term invest- plants provide about 20% of the national ment horizon is offered an attractive return

22 23 www.uraniumresourcesfund.li potential, which is however also correspon- We have supplemented this group with an from outside the sector may also want to po- rent phase of bottom formation continues for dingly risky. The Fund is therefore suitable as investment in „Uranium Royalty Corp. The sition themselves in the uranium business. a longer period of time, the air will quickly a complementary component in a diversified company adapts the „Streaming and Royal- This would make sense, not least due to the become thin for some uranium producers. portfolio and not as a basic investment. The ties“ business model, which is particularly low sensitivity to economic trends and the Their balance sheets are emaciated after the Uranium Resources Fund holds about 30 po- successful in the precious metals environ- comparatively high visibility of uranium de- continuing price collapse and the cost re- sitions in the portfolio. This diversification ment, to the uranium market. The company mand. For example, the companies „Deni- duction potential has already been largely makes sense against the background of the finances uranium mines and in return secu- son Mines“ or „Boss Resources“ are to be exhausted. The environment also remains current state of the uranium market. res a share of current or future production. assigned to this group. challenging for the developers of new urani- However, without taking the risks associated um projects, as their projects will only beco- with the operation of a mine. me economically viable and thus realizable What selection criteria do you apply when What is your advice to investors interested with rising uranium prices. It is correspon- selecting fund values and what are your The third pillar focuses on the shares of ura- in investing in the uranium sector? dingly difficult to find investors to finance the current driving forces? nium producers or standby producers next stages of the project. Anyone who bets (approved projects, but currently not in pro- The supply gap outlined above and the as- everything on one card in this constellation The correction on the uranium market, which duction). If uranium prices start to rise, the sociated potential for rising uranium prices is therefore playing high stakes - possibly has been ongoing since 2011, demands a producers who can place significant uranium are still only foreseeable and the expected even too high. The use of a fund with diver- great deal of staying power from all players. production on the market will benefit. Only turnaround in the uranium market is still to sified investments within the topic seems From an analytical perspective, the ongoing those who produce can also deliver. To be come, despite the good fundamental pros- reasonable to me. We also recommend a downward movement has also made us on the safe side, we rely on companies that pects. If, contrary to expectations, the cur- staggered build-up of positions over time. (Sorce: www.fredography.be/ more humble with regard to our own fo- have low production costs and a good order by unsplash.com) recasting ability. Nevertheless, given the fun- book of long-term supply contracts. The two damental starting position, we are convin- industry leaders „Cameco“ and „Kazatom- ced that the uranium market will turn the prom“ are significantly represented in the corner in view of the emerging supply gap. portfolio. Both companies have a broad The question is not if, but when it will hap- portfolio of first-class production facilities. pen. Accordingly, our ultimate goal is to still Despite the challenging environment, both be in play when this turnaround materializes. companies are cash flow positive and pay a The next bull market in uranium stocks will decent dividend. This group is complemen- open up great profit opportunities. We want ted by investments in companies to which to take advantage of these opportunities! we would grant the status of „standby pro- ducer“. These are companies that have a Against this background, our portfolio rests portfolio of approved production sites and on four pillars. The first pillar is a strategic processing capacities. Production could be liquidity ratio. This ensures our ability to act launched within a manageable timeframe at all times. In this way, we use attractive once the economic conditions (i.e. a higher entry points that regularly open up due to the uranium price) are met. This group includes volatile price development of many uranium for example „Uranium Energy“ or „Energy shares. Fuels“.

With the second pillar, we want to participate As part of the fourth pillar, we are focusing directly in an improvement in the uranium on explorers and developers who are driving spot price. Without higher uranium prices, a forward world-class development and mi- sustainable recovery of uranium producers ning projects. These are particularly interes- is difficult to imagine. Therefore, two invest- ting if they are able to start production within ment companies, which have invested their the time frame of the expected supply gap. funds predominantly in physical uranium, They will then be able to benefit from corres- form the core of the portfolio. If our view is pondingly attractive sales prices. In addition, correct, the supply gap in the uranium mar- these assets should have the necessary size ket will be closed by a rising uranium price. to also qualify as takeover targets. We are Accordingly, „Uranium Participation“ and assuming that after the price turnaround in „Yellow Cake Plc“ should be the first and im- the uranium market, a wave of consolidation mediate beneficiaries of this price recovery. will take place and that mining companies

24 25 Interview with Scott Melbye Executive Vice President of Uranium Energy, Commercial V.P. of Uranium Participation Corp. and Ex-Advisor to the CEO of Kazatomprom

Mr. Melbye, you have held and continue to nium fundamentals. As a result of Fukushima sumption of nuclear plant construction glo- nually, the forward contracting levels of uti- hold senior positions with a variety of ura- market impacts, the uranium price fell from a bally which remarkably returned global nuc- lities should be at or near those levels each nium companies and are considered one of ten-year high of US$70 per pound in early lear generation to pre-Fukushima levels in year to avoid falling behind on future needs. the world‘s most respected uranium ex- 2011 to a cycle low of US$17.75 per pound 2019. This growth has also been helped by To the contrary, UxC Consulting reported perts. Can you give our readers a brief in November 2016. It was not until this April changing attitudes towards nuclear power, long term contracting levels in the years overview of your career to date? that we finally saw uranium prices again particularly in the climate change community 2014 to 2019 averaged 75 million pounds exceed US$30 per pound. In the face of fal- where it is increasingly being seen as an im- per year (well below normal levels). Fortu- Thank you, it is a pleasure to share my ob- ling prices over the past decade, global ura- portant contributor towards a lower-carbon nately, a shift in buyer behavior began to be Scott Melbye is a 35-year veteran of servations and insights into the global urani- nium production counter-intuitively grew, energy future. observed in the 4th quarter of 2019 and has the nuclear energy industry having um market with your readers. I have been year-over-year, and finally peaked in 2016 at continued into 2020, where utilities are now held leadership positions in major fortunate to spend my entire 35-year career 162 million pounds. This speaks to the rela- So, this begs the question why the post- beginning to look to cover longer term uranium mining companies as well in the uranium and nuclear energy industries. tive inefficient nature of the uranium market 2016 recovery to-date has been so slow needs in a more strategic fashion. The Co- as industry-wide organizations. Starting out as a nuclear fuel broker with Nu- compared to other mineral commodities like and stubborn? The main reason rests in a ronavirus pandemic, and recent geopolitical Through to June 2014, Melbye was kem in New York on 1984, and later being copper, gold or silver. In those commodities, key catalyst which has only recently begun developments with the U.S., China, Iran Executive Vice President, Marketing, responsible for uranium fuel procurement at price signals usually manifest in adjustments to re-emerge. Namely, the procurement ac- and Russia, will only reinforce the shift to a for Uranium One, responsible for the three-unit Palo Verde Nuclear Generating to supply much more rapidly, in real time, as tivities of the world’s nuclear utilities. Just more strategic focus on securing future global uranium sales activities. Prior Station in Arizona, really prepared me for the selling prices are more reliant on spot price as long-term contractual coverage has needs. Threatened, and realized U.S. trade to this, Melbye spent 22 years with bulk of my career in uranium mining. In ad- indexing. In the case of uranium, the preva- been rolling off for uranium producers in actions, like the failed Section-232 petition the Cameco Group of companies, dition to 23 years with leading producer, Ca- lence of hedged, long-term contracts at hig- recent years, this has logically also been and recently extended limitations on Russi- both in the Saskatoon head office meco, most recently as President of their her-priced, base-escalated terms insulated the case for their counterparty customers, an nuclear fuel supplies, had the effect of and with their U.S. subsidiaries. He global uranium marketing subsidiary, I also many producers from the lower spot prices. the utilities. However, rather than rush back further delaying utility procurement activi- had last served as President of held leadership roles at Russian-owned, However, by the end of 2016 we began to into new long term contracts with pro- ties, however, these are now fully resolved Cameco Inc., the subsidiary Uranium One and Kazakhstan’s State urani- see the rapid drop off of that long-term con- ducers, the utilities have been content to (more later on this). This long-awaited in- responsible for marketing and um company, Kazatomprom. I have also had tractual coverage that was secured in the focus on spot and near term procurement teraction between buyers and primary pro- trading activities with annual sales the opportunity to manage the physical ura- previous cycle, hence (finally) exposing pro- with prices that reflect the near term ducers should support price formation in ducers to the depressed market conditions. exceeding 30 million pounds U3O8. nium activities of Uranium Participation over-supplied market (spot prices have both the spot and long-term markets which Melbye was formerly the Chair of Corp. Since 2014, I have served as Executi- The uranium market has, as a result, seen a fluctuated in the $20-$30 per pound range). tend to interplay off of each other (the spot the Board of Governors of the World ve Vice President of U.S. uranium developer steady drop in global uranium production This has been especially compelling consi- having already begun to move upward). Of Nuclear Fuel Market and President and producer, Uranium Energy Corp., and from 2017 to the present. This has been a dering the utilities had been paying $40-$60 course, as the pool of cheap spot material of the Uranium Producers of more recently assumed the CEO role at Ura- key supply development as it finally allows per pound, or higher, under older legacy has been depleted by spot purchasing and America. He also currently serves as nium Royalty Corp. which launched as a pu- the critical drawdown of excess inventories contracts signed in the previous bull-mar- carry trade activities, the spot price will rise Executive Vice President of Uranium blic company in December 2019. over-hanging the market. These supply cuts ket (the most famous example being the (hence putting upward pressure on long- Energy and VP-Commercial for have now created a gap between annual Cameco/Tokyo Electric Power contract at term prices). A current debate among mar- Uranium Participation Corporation production (likely around 120 million pounds $100 per pound). The most appealing opti- ket observers exists as to whether this pool and was Advisor to the CEO of The uranium spot price has been in a be- in 2020) and consumption (currently 183 mil- on for these short-term focused buyers had of spot supply is greater than expected, or Kazatomprom, the world’s largest arish phase for about 5 years and has not lion pounds) ranging from 40-60 million been the “carry-trade” facilitated by trading conversely, is not that extensive after years uranium producer in Kazakhstan. yet been able to recover significantly from pounds U O per year. This gap was only wi- companies that buy spot material, carry it at of drawdown, but has simply not been tes- 3 8 Melbye received a Bachelor of its low in 2016, until very recently. What dened by recent reductions in mine supply historic low cost-of-money levels, and deli- ted yet by meaningful procurement levels. Science in Business Administration are the main reasons for this develop- due to the Coronavirus pandemic which we ver two to three years out at fixed prices, To date in 2020, substantial (near record) with specialization in International ment? will discuss in more detail. which were at or below, $30 per pound. spot market volumes have cleared without Business from Arizona State While this myopic view of future uranium moving the spot price beyond the $30 level, University in 1984. While we are very encouraged by the recent With regards to the demand side during this supplies has had a very positive impact on so we can assume that these supplies have improvements in the uranium spot market period we also witnessed the closure of Ja- the fuel costs of nuclear power plants, it been quite extensive, however, are not infi- (20-30% gains so far in 2020), it has indeed panese reactors (both temporary and per- has not provided the level of long-term in- nite. The 2020 production gap to consump- been a frustratingly slow recovery with prices manent), and the gradual phase-out of Ger- centive pricing for uranium producers to tion of 60 million pounds, accelerates the moving sideways or slipping gradually since man reactors in response to Fukushima. Ho- sustain or start up new production. In a drawdown and moves us closer to a market June. With the benefit of hindsight, we can wever, after a period of safety re-assessments uranium market that consumes between which becomes driven more by the cost now see that 2016 was a pivotal year for ura- and plant upgrades, we experienced a re- 180 and 190 million pounds of uranium an- and availability of primary mine production.

26 27 Over the past three years, several of the more quickly. These moves have currently invest a total of US$ 1.5 billion over the mains dependant on the Congressional leading uranium producers - in particular capped their output at about 59 million next 10 years in a national domestic urani- appropriations process, the timing of which Cameco and Kazatomprom - have announ- pounds annually, which represents 40% of um reserve. What impact will this have on is understandably delayed in a Presidential ced production cutbacks, some of them global supply. Incidentally, this growing reli- the US uranium industry and the entire ura- election year (likely no sooner than early substantial. When will these have a signifi- ance on a single country, under Russian in- nium sector? 2021). The Trump policy also highlighted the cant impact on the uranium spot price? fluence and in a volatile part of the world, national security risks of America’s over-reli- has security of supply implications, and has In 2018, the U.S. Commerce Department in- ance on imported uranium, particularly from Although there were some earlier excep- begun to cause some utilities to rethink nuc- itiated a Section-232 investigation into State-owned suppliers such as Russia. It ur- tions, global production cuts really began to lear fuel diversification objectives. whether the extreme levels of foreign urani- ged the continued limits on Russian nuclear kick in during 2017 and are still a somewhat um imports (now effectively 100%) were po- fuel supplies through the U.S. Department of recent development. However, the magnitu- sing a national security threat to the United Commerce agreement suspending the Rus- de of these supply cuts has reached signifi- The Coronavirus Pandemic has had pro- States. The Trump Administration had sian anti-dumping investigation (so-called cant levels, taking some 40-60 million found impacts on the global economy, and recently invoked tariffs on steel and alu- Russian Suspension Agreement, or “RSA”). pounds from the market each year. With in- we have now begun to see this affect major minum imports under a similar 232 investi- The RSA had limited the import of Russian dications that these conditions are not aba- uranium operations around the world. Is gation. While the Trump Administration de- nuclear fuel supplies (uranium, conversion ting, the cumulative impact is an accelerated this behind the recent dramatic increase in cided against tariffs or duties on foreign ura- and enrichment) to no more than 20% of drawdown of excess inventories. While this uranium prices recently? nium imports in July of last year, the American uranium requirements, however, production discipline is quite widespread, President did conclude that a threat to nati- these limits were set to expire in December affecting mines in the United States, Africa Very substantial production cuts have occur- onal security existed. As a result, Trump for- 2020. Since the U.S. Department of Com- and Australia, the most profound impact has red as a result of Coronavirus precautions to med the U.S. Nuclear Fuel Working Group merce had indicated that the resumption of been seen in Canada. After shuttering their protect the health and safety of uranium mi- comprised of his Senior Cabinet Secretaries Russian dumping would likely occur in ab- Rabbit Lake Mine in 2016, Cameco took ners, support staff and impacted communi- and Administrative Agency Heads. Their ob- sence of restrictions, the conditions for a ne- their world-class McArthur River Mine offline ties. Since the first part of April, these an- jective was to recommend policies to the gotiated extension of the RSA were possib- in 2018. To put this into perspective, the nounced mine shutdowns have affected President to revitalize and expand the dome- le. This agreement has now been concluded McArthur River operation is the world’s ri- approximately 50% of worldwide monthly stic nuclear fuel cycle, including uranium. It between the U.S. and Russian Federation, chest uranium mine with ore grades 100 uranium output. Production cutbacks from should also be noted that in addition to the extending restrictions for an additional 20 times the world’s average. Production had Canada’s Cigar Lake, Kazakhstan’s opera- uranium requirements of the electric utility years. Furthermore, in line with Trump Admi- been approaching 21 million pounds annual- tions, Moab Khotseng in South Africa and companies (nuclear is 20% of US electricity nistration recommendations, the amount of ly. Cameco made the difficult, but logical de- the Chinese-owned Husab and Rossing mi- supply), the U.S. Defense Department requi- imports will decline over time (with the natu- cision, to suspend this production and ins- nes in Namibia, have removed as much as 7 res U.S. origin uranium for the 108 reactors ral uranium component of Russian low-enri- tead meet their very substantial long-term million pounds from the uranium market in in the Navy fleet of aircraft carriers and sub- ched uranium being significantly reduced contract book from spot market purchases. the months these measures were in place. marines. The report titled “Restoring Ameri- from 20% of U.S. requirements, down to 7% Not only does this move reduce fresh sup- Most of these mines have since announced ca’s Competitive Nuclear Energy Advantage over the period). plies to the market, it also accelerates the their resumption of development and mining – A strategy to assure U.S. national security” drawdown of excess inventories through activity, but the ramp up back to planned vo- was released by the U.S. Department of their purchasing activities. It also preserves lumes will be slow and gradual. The total ex- Energy on April 24th and provided the stron- Do you see large new mines starting pro- valuable geological resources in the ground pected reduction in global production from gest policy support for nuclear energy since duction in the next few years? What (spot) until they can be mined at financial returns COVID-19 related causes is expected to be the Eisenhower Administration in the 1950’s. price will most companies need to push the commensurate to their discovery, and de- at least 20 million pounds. In answer to your A significant element of the plan was previ- development of new mines and bring their velopment value. question, while this provided a tipping-point ously announced as part of the President’s projects into production? catalyst for uranium prices early in the year, proposed FY 2021 Budget. In the budget, The longer the prevailing market prices re- the real driver will be the rebalancing of glo- President Trump called for a 10-year pro- This is the key question facing the uranium main below incentive levels, additional pro- bal supply and demand fundamentals over gram to establish a domestic uranium reser- market in the coming years. While new pro- duction will be removed from the supply the past 3 years. Put another way, this Co- ve funded at a rate of US$150 million per duction is not needed today, we do not have equation. While all of these cuts add to the ronavirus “black swan” event has served to year. It is now formally supported by this po- to go very far into the future to see that needed economic “supply destruction”, the accelerate fundamentals that were already licy document, and, while many of the speci- restarts of idled capacity, and new mine keys still remain in the hands of world leader, significantly improved going into 2020. fic details have yet to be announced, this is start-ups, are required to meet robust and Kazakhstan. Their State-producer, Kazatom- viewed as a very welcome stimulus measure growing demand for uranium. However, in a prom, has also announced cuts from providing supplemental demand for U.S. “Catch-22” very similar to the previous bull “planned production” in recent years, but The Trump Administration recently relea- mined uranium, in addition to the broader market, the market price incentives have many market observers assert that more sed its comprehensive policy document on market requirements of the nuclear utility simply not been present in the recent mid- could be done to help rebalance the market nuclear energy, including an initiative to companies. The funding of this program re- $20’s spot market (and while the depressed

28 29 longer-term market has been impacted by Another more recent hurdle facing new mine electricity rates 50% higher than that of ces have occurred in both Canada and the lower-priced carry trades). With every year developments was the substantial drop in nuclear neighbor, France (who produce United States multiple projects and designs that these conditions persist, and significant global equity markets that was triggered by 1/10 the carbon emissions per capita). In have advanced in 2020. long-term utility uncommitted needs are loo- the coronavirus pandemic. While global the process, Germany has grown increa- ming, the likelihood of a supply crunch in- equity markets have largely recovered, this singly dependent on Russian natural gas, creases. The lead-times to permit, license volatility came at a time when uranium pro- and ironically, French nuclear-generated In summary, what do you expect for the ura- and construct new uranium mines can be ducers were already facing 10-year lows in electricity imports. None of this particularly nium sector in the next two to three years? 6-10 years in duration and no level of urani- their share prices. The substantial funding comforting for Europe’s leading economy um price can shorten those development needed to advance the next generation of which is based on energy-intensive manu- In summary, expect very good things from times. uranium mines has become more difficult to facturing exports. This point is not to single the uranium market going into 2021. This raise under these challenging, capital mar- out Germany’s energy policy, but to high- optimism is grounded in the most funda- This, of course, begs the question of what kets conditions. light the difficulty, if not impossibility to mental factors of supply and demand. Urani- price levels are needed to incentivize the ad- achieve meaningful carbon reductions wi- um has suffered a long, severe, bear market, ditional supply going forward. Speaking very thout a significant component of nuclear but appears to have turned the corner. Any generally, the incentive price to return idled What does the current demand situation power in the energy mix. In the United Sta- economist will tell you that no commodity capacity into production, or advance the look like? Who could be the driving force tes (California in particular), and in South will stay down, nor go up forever. Our urani- start-up of the most competitive new mine behind the revival of the uranium price in Australia, we have begun to see serious um market is no exception, and its unique developments, is likely somewhere in a sus- the future? electricity reliability issues as a result of an and inefficient nature has caused market tained $40-$50 per pound level. A point in over-reliance on intermittent renewables. forces to manifest more slowly into higher case being the McArthur River Mine where The current demand situation for uranium Note that these are all leading global eco- prices. In turn, this should be good news to restart thresholds have been indicated to fall can be described as robust and growing. nomies, and not emerging markets where investors with higher prices in an under sup- in this range. The most competitive new The previous bull market in uranium was, in electricity shortages and blackouts might plied market likely to drive substantial appre- mine developments that can advance in this part, fueled by future forecasted growth in be more expected. ciation in uranium equities. The continued range are likely in-situ recovery operations, nuclear power. Today, we are actually seeing growth in global nuclear energy, production and those who are fully permitted and licen- these reactors being constructed and ente- In that regard, many of those emerging mar- discipline by existing producers and unde- sed (with smaller capital requirements) have ring into commercial operation. The nuclear kets, with large and growing populations, rinvestment by new producers, will test the an important first-mover advantage. For energy industry has seen 50 new reactors struggle to energize their economic growth market fundamentals in the coming months. conventional mines requiring long permit- connected to the global grid in the last eight without adding to extreme levels of harmful As global utilities return to more normal pro- ting, licensing and development lead-times years, and 53 additional reactors are under air pollution in their major cities. The good curement levels, more upward pressure on and large capital investment, they will likely construction. Global requirements for urani- news is that nuclear energy can solve those uranium prices should develop. The Corona- require sustained prices in the $60+ per um are projected by the World Nuclear Asso- problems with production of highly reliable, virus crisis has shocked economic markets pound range. ciation to top 200 million pounds annually in 24/7, carbon free, clean air electricity. in ways few imagined and certainly grabbed ISR-Mining the coming years (2% annual growth in the the headlines during 2020. In the meantime, (Source: Uranium Energy) reference case forecast). Another growth market for uranium is emer- however, a very compelling supply and de- ging from Small Modular Reactors (“SMR’s”). mand narrative for uranium has emerged Most importantly for current and future These are not the 1,600 Mwe large reactors and should not be overlooked by resource growth, we have begun to see public attitu- with large capital costs and long constructi- investors seeking out-sized commodity des toward nuclear energy turn decidedly on times, but rather the small 25 or 50 Mwe gains in the coming months. Opportunities more positive in recent years. Former op- units that can be constructed in a factory exist with the well-run uranium companies ponents of nuclear energy have softened and shipped on site. These scalable units that are positioned with quality assets and their positions, or even spoken out in sup- can provide carbon-free benefits while com- management teams that can capitalize on port of this large baseload source of car- peting on cost with cheap natural gas and this story. The Coronavirus pandemic and bon-free electricity. At recent climate chan- can co-exist with grid-heavy renewables due resulting mine cutbacks may well have pro- ge meetings such as the COP 25 in Madrid, to their load-following characteristics. They ven to be the tipping point catalyst in acce- there has been an almost panicked realiza- are very similar to the compact reactors that lerating the already improving uranium mar- tion that despite billions of dollars and eu- have powered aircraft carriers and submari- ket fundamentals. ros spent on renewables in the past 25 ye- nes safely since the 1950’s, and can be ide- ars, very little progress has been achieved ally marketed to smaller grids, island na- in global carbon reductions. Nowhere is tions, or remote locations (including mining this more evident than in Germany where operations and military bases). Very signifi- the Energiewende commitment to renewa- cant advances in government support of bles (without nuclear) has only resulted in these innovative, carbon-free, energy sour-

30 31 Skyharbour Resources World-class uranium projects with high-grade discovery potential coupled with prospect generation and strategic partnerships

Skyharbour Resources is a preeminent ura- Moore Lake Uranium Project – Moore Lake Uranium Project – nium exploration company with projects Summary Recent Exploration and Drilling located in the prolific Athabasca Basin of Saskatchewan, Canada which consistently Skyharbour Resources‘ flagship project Skyharbour started with two drill programs ranks in the top five mining jurisdictions to Moore Lake is in the southeast region of the in 2017 including winter and summer pro- work in globally by the Fraser Institute. The Athabasca Basin, about 15 kilometers east grams. High-grade uranium mineralization Company has been acquiring top-tier explo- of Denison Mines‘ development project was encountered in several drill holes and ration projects at attractive valuations culmi- Wheeler River and midway between the Key notable new discoveries were made at the nating in six uranium properties totaling Lake Mill and the McArthur River Mine. The Main and East Maverick Zones. Highlights approx. 240,000 hectares throughout the high-grade Moore Lake Project consists of from the drill programs included 20.8% Basin. Skyharbour owns 100% of its flagship 12 contiguous claims totaling 35,705 hecta- U O over 1.5 metres within a 5.9 metre in- 3 8 property, the Moore Uranium Project which res and Skyharbour acquired it from its lar- terval of 6.0% U O at 262 metres downho- Airborne survey at Preston 3 8 hosts the high-grade Maverick Zone. In ad- gest strategic shareholder Denison. In order le, 5.6% U O over 1.8 metres within a 10.7 In the Fall of 2020, Skyharbour carried out a (Source: Skyharbour Resources) 3 8 dition to the Maverick Zone, the project to acquire 100% of Moore Lake, Skyhar- metre interval of 1.4% U O at 267 metres drill program to follow up on the results of 3 8 hosts other mineralized targets with strong bour Resources issued shares and paid downhole, 2.25% U O over 3.0 metres, previous programs. This drill program tested 3 8 discovery potential which the Company CA$500,000 in cash and completed CA$3.5 and 4.17% U O over 4.5 metres including unconformity and basement-hosted targets 3 8 plans to test in upcoming drill programs. million in exploration expenditures to com- 9.12% U O over 1.4 metres at a new disco- along the high-grade Maverick structural 3 8 While focused on its core strategy as a dis- plete the 100% earn in at Moore Lake back very area called the Maverick East Zone. corridor. Of particular interest are potential covery-driven exploration company, Skyhar- in August 2018, well ahead of schedule. All underlying basement feeder zones to the un- bour also employs the prospect generator in all, a bargain price considering that more Continued drilling in 2018 returned additio- conformity-hosted high-grade uranium pre- model to advance and fund exploration at its than CA$40 million has been invested in ex- nal high-grade intercepts including 3.11% sent along the Maverick corridor. The com- other projects in the Basin and has brought ploration at Moore Lake including more U O over 1.8 metres and 1.33% U O over pany is fully funded for drill programs upco- 3 8 3 8 in three strategic partners in Orano Canada, than 370 drill holes totalling over 140,000 7.8 metres. ming in 2021 and plans to start drilling again Azincourt Energy and Valor Resources. metres. early in the new year. In 2019, the Company started testing new targets identified using drone-flown geo- physics in the underlying basement rocks Preston Uranium Project – underneath the unconformity and Atha- Location and Exploration Skyharbour‘s Project Locations basca sandstone. This is the geological set- (Source: Skyharbour Resources) ting that hosts notable recent discoveries The Preston Uranium Project is in the like those made by NexGen Energy and Fis- southwest quadrant, just outside the Atha- sion Uranium, and very little drill testing had basca Basin in the Patterson Lake region. It been carried out historically to test the ba- is bordered to the north by Fission 3.0’s and sement rocks at the Moore Lake project. NexGen’s project areas, among others. The The Company successfully intersected Preston Project, which covers approximately high-grade mineralization in the potential 70,000 hectares and in which Skyharbour basement-hosted feeder zones including Resources holds a 50% interest (the remai- 2.5 metres of 2.31% U O . Additional fol- ning 50% is owned by partner Dixie Gold), is 3 8 low-up drilling and testing was warranted. located close to the high-profile NexGen (Ar- row) and Fission Uranium (Patterson Lake In February 2020, the Company commen- South) discovery. ced a drilling campaign which doubled the known strike extent of the Maverick East Historically, CA $5 million had been spent on Zone. This included intersecting 4.5 metres exploration and reconnaissance drilling, of 0.38% U O , with a basal high-grade pe- which helped identify 15 areas with similar 3 8 destal interval yielding 0.5 metres of 1.43% indicators to Patterson Lake South and Ar- U O . row. Several other additional drill targets 3 8 also provide robust exploration upside po- tential.

40 41

Preston Uranium Project – a second drilling program was completed The 16 contiguous mineral claims at North The Company also owns the Mann Lake Option Agreement with Orano which encountered radioactivity and traces Falcon Point host several prospective areas Project which is adjacent to the joint venture Canada of rare earths and other indicator elements. of uranium mineralisation including the Hook project of the same name between Cameco, A ground geophysical program was also Lake / Zone S target area (high-grade surfa- Denison and Orano. Mann Lake is strategi- In March 2017, Skyharbour entered into an conducted in the summer of 2020 to support ce outcrop with reported grades in grab cally located approximately 25 kilometers option agreement with industry-leader and future drilling programs based on the exis- samples up to 68% U O ; a bio-geochemi- southwest of Cameco‘s McArthur River Mine 3 8 France’s largest uranium mining and nuclear ting interpretation available throughout the cal survey carried out over the trenches in and 15 kilometers northeast of Cameco‘s fuel cycle company Orano (formerly AREVA). property and the results of the heli-assisted 2015 responded positively with along-strike Millennium Uranium Deposit. Under the terms of the agreement, Orano VTEM survey helped identify numerous un- anomalies 2 km to the northeast) as well as can earn up to a 70% interest in the western tested graphitic conductor corridors which the Nob Hill target area (fracture-controlled portion of the Preston Uranium Project, to- will be tested with future drilling. vein-type uranium mineralisation on surface talling 50,000 hectares, by investing CA$7.3 outcrop with up to 0.130% - 0.141% U O in 3 8 million in exploration over 6 years and ma- grab samples; diamond drilling intersected king an additional CA$700,000 in cash pay- North Falcon Point Project – anomalous uranium in several drill holes with ments. Orano is currently approximately Option Agreement with Valor values up to 422 ppm U over 0.5 m). Histori- halfway through the earn in having just com- Resources cal exploration has consisted of airborne pleted a large field and geophysical program and ground geophysics, multi-phased dia- earlier in the year. Skyharbour’s North Falcon Point Project is mond drill campaigns, detailed geochemical located 60 km east of the Key Lake Uranium sampling and surveys, and ground-based Mine and covers approximately 26,000 hec- prospecting culminating in an extensive East Preston Uranium Project – tares. Skyharbour recently announced an geological database for the project area. It is Option Agreement with Azincourt LOI with ASX-listed Valor Resources which anticipated that the initial phase of explorati- Energy provides Valor an earn-in option to acquire on work by Valor will include further bio-geo- an 80% interest in the North Falcon Point chemical surveys, detailed UAV magnetics, Also, in March 2017, Skyharbour entered Uranium Project. To complete the earn-in ground gravity and resistivity surveys as well Mann Lake is strategically located into a second option agreement with Azin- Valor will issue shares to Skyharbour and as detailed geological and structural map- Upcoming Catalysts approximately 25 kilometers court Energy for the East Preston Uranium contribute cash and exploration expenditure ping. southwest of Cameco‘s McArthur Project. This project comprises the eastern consideration totaling CA$3,925,000 over a Skyharbour and its partners have a very ac- River Mine and 15 kilometers portion of the Preston project and covers an three-year period ($425,000 will be in cash tive year coming up in 2021 including seve- northeast of Cameco‘s Millennium area of approximately 20,000 hectares. Azin- payments to Skyharbour and $3,500,000 will Other Uranium Projects in the ral exploration and drill programs planned Uranium Deposit. court Uranium may earn a 70% interest in be in exploration expenditures). Valor will is- Athabasca Basin for early in the new year. The Company has (Source: Skyharbour Resources) the East Preston Uranium Project by issuing sue a total of 250,000,000 shares to Skyhar- just finished a drill program at its flagship shares to Skyharbour, making cash pay- bour. In addition to Moore Lake, Preston, and Moore Uranium Project and continues to ex- ments totaling CA$1 million and investing a North Falcon Point, Skyharbour owns 100% pand the known high-grade zones at the further CA$2.5 million in exploration on the of several other highly prospective explorati- project while making additional discoveries project over a three year period. The term of on projects in the Basin. in the relatively undertested basement this agreement was extended by one year in rocks. The news flow from drill programs April 2020 in exchange for the transfer of a These includes the South Falcon Project and results is a key catalyst for Skyharbour total of 5 million Azincourt shares to Skyhar- which covers 79,000 hectares and is loca- and it is important to note that the Company bour and partner Dixie Gold. ted approximately 55 kilometers east of the is fully funded for an upcoming winter drill Key Lake Mine. In 2015, Skyharbour repor- program at the project which will commence In early 2018, geophysical gravity studies ted a shallow, NI 43-101 inferred mineral re- in early 2021. Skyharbour’s partner compa- enabled Azincourt to identify several signifi- source estimate totaling 7.0 million pounds nies Orano, Azincourt and Valor have plans cant targets for further exploration and in at an average grade of 0.03% U O and 5.3 for future exploration and drill programs at 3 8 2019, a VTEM survey was used to identify million pounds at an average grade of the Preston, East Preston, and North Falcon seven new targets. An initial drill campaign 0.023% ThO2 at the Fraser Lakes Zone B Point projects, respectively. Azincourt has also confirmed the prospectivity of the East deposit area which is open along strike and already identified several drill targets th- Preston Project as the underground litholo- at depth. The project has geological and rough geophysical programs and plans to gies and graphitic structures intersected at geochemical similarities to some of the best follow up on these in the next several East Preston have similarities to the Patter- projects in the Athabasca Basin such as months, while Valor is planning a field pro- son Lake South, Arrow and the Hook Lake/ Eagle Point, Millennium, P-Patch and Roug- gram at North Falcon Point set to commen- Spitfire uranium deposits. In February 2020, Falcon-Point-exploration-map (Source: Skyharbour Resources) hrider. ce early in 2021.

42 43 Skyharbour plans to continue to find part- high-grade Moore Lake Uranium Project ners on its projects as a part of its prospect while three partner companies fund explora- Exclusive interview with Jordan Trimble, generator model to both advance the assets, tion and development at its other projects. generate additional news flow, and bring in The Company is run by a strong manage- CEO of Skyharbour Resources funds through option payments. Lastly, Sky- ment and geological team who are major harbour will benefit with the continuing ura- shareholders with extensive capital markets nium market recovery as one of the few re- experience as well as focused uranium ex- What have you and your company achieved Skyharbour has also positioned itself as an At- maining active uranium exploration compa- ploration expertise in the Basin. Skyhar- in the past 12 months? habasca Basin prospect generator having nies in the Athabasca Basin. Uranium pricing bour‘s goal is to maximize shareholder value amassed over 237,000 hectares of uranium has been somewhat volatile over the last few through new mineral discoveries, committed In the last 12 months Skyharbour has advan- projects in the Basin. Skyharbour’s partners years but has been upwards more recently. long-term partnerships, and the advance- ced its high-grade uranium projects in the At- Orano and Azincourt are exploring at our Pres- The underlying fundamentals for the market ment of exploration projects in geopolitically habasca Basin, strengthened its Board of Di- ton and East Preston Projects which will add are very compelling. Nuclear utilities are fa- favourable jurisdictions. rectors, and raised capital with new institutio- to the news flow and increase the odds of ex- Jordan Trimble, CEO cing expiring contracts, producers like Ca- nal investors. The Company completed a drill ploration success with multiple projects being meco are having to purchase material on the program earlier in 2020 totalling 2,328m in 6 advanced simultaneously. These partner com- spot market, and the supply deficit between holes at its flagship Moore Uranium Project panies can earn up to 70% of the Preston and primary mine supply and reactor require- and intersected high-grade uranium in several East Preston projects through project conside- ments continues to grow at an unsustainable holes while doubling the known strike length at ration totalling $11.5 million in exploration and level. the Maverick East Zone. Skyharbour is cur- cash payments. The Company is in advanced rently conducting a follow-up drill program negotiations with other potential partners at its with results expected later in 2020. As a part of other 100% owned projects. Summary: the Company’s prospect generator strategy, This company is on fire! partners Orano (previously AREVA) and Azin- court both completed exploration and drill pro- How do you see the current situation on the Skyharbour is well positioned to take advan- grams at the Preston and East Preston pro- market for uranium? tage of a rising uranium price with its top-tier jects respectively with follow-up work planned portfolio of high-grade uranium projects in through 2020 and 2021. The uranium price has been moving higher this the Athabasca Basin. The Company will be- Corporately, Skyharbour recently added Jo- year due to strengthening supply/demand fun- nefit from ample news flow over the coming seph Gallucci to its Board of Directors. Mr. damentals and mine supply disruptions from year as it continues to advance its flagship Hooke-Lake-Mineral (Source: Skyharbour) Gallucci has over 15 years of investment ban- the pandemic including Kazatomprom’s recent king experience and is currently the Managing announcement of extended production cuts Director and head of mining investment ban- over the next several years. Nuclear utilities are king at Laurentian Bank Securities Inc. During facing expiring contracts, and large producers ISIN: CA8308166096 the last year, the Company raised over $4.5M such as Cameco and Kazatomprom are ha- WKN: A2AJ7J Skyharbour Resources Ltd. and is well funded to continue its exploration ving to purchase material in the spot market, FRA: SC1P efforts at its projects while receiving cash pay- as the supply deficit between primary mine TSX-V: SYH ments from option partners. supply and reactor requirements continues to OTCQB: SYHBF grow at an unsustainable rate. On the demand side, China is on a mission to be carbon neut- Shares outstanding: 92.6 million What are the most important catalysts for the ral by 2060 and their ambition to be the world’s Options/warrants: 45.6 million next 6 to 12 months? leader in nuclear energy is clear. Another inte- Fully diluted: 138.2 million resting development is the Small Modular Re- Skyharbour will be receiving drill results from actor (SMR) technology that is being advan- Contact: its 2500 metre drill program currently being ced by several companies and governments Skyharbour Resources Ltd. carried out at its Moore Uranium Project. The globally which would result in an increase in 777 Dunsmuir Street - Suite 1610 Company continues to test several targets uranium demand going forward. A unique set Vancouver, BC, V7Y 1K4, Canada along the Maverick Structural Corridor as it of underlying fundamentals and drivers, inclu- works toward a resource estimate while de- ding sticky demand and major supply curtail- Phone: +1-604-639-3850 lineating basement feeder zones and source ment, should lead to a continued revival of the Fax: +1-604-687-3119 mineralization for some of the higher grade zo- sector in 2021. [email protected] nes present at the project including mineraliz- www.skyharbourltd.com ation of up to 21% U O in previous drilling. 3 8

44 45 Overview of SRC‘s communication programs

Social Media Network Press- Media- IR- and Roadshow-Services

Access to over 70.000 followers and likers! • • Professional roadshows in Europe & Switzerland in citys like: Zurich, Zug, Geneva, Lugano, St. Gallen, Vaduz, Milan, Munich, Frankfurt, Hamburg, Oslo, Stockholm, Monaco, Paris, Luxemburg, Vienna • Write-ups through our editors & third party authors up to 200 different websites like Wallstreet-Online.de, Ariva.de, Finanzen.net • Translation and dissemination via IRW-Press and Pressebox articles, news releases and write-ups, advertorials

World wide Resource TV-Channels In German: +2,000 press & news outlets and + 1,800 journalists Commodity-TV & Rohstoff-TV – more than 1 Mio views p.a. • in Germany, Switzerland, Austria and Liechtenstein You Tube Channel – more than 1.1 Mio views p.a. • In English: +10,000 press & news outlets and +3,500 journalists

in 170 countries worldwide Partnership with Dukascopy-TV – worldwide 7 Mio views p.a. •

ommodity-TV Your partner in Europe! Swiss Resource Capital AG & Commodity-TV Fairs and Events • Deutsche Rohstoffnacht – INVEST Stuttgart THE EXCLUSIVE MEDIA & • Edelmetallmesse, Munich • Mines and Money, London COMMODITY CORPORATION + 1.700 user • Precious Metals Summit, Zurich ... and more

Commodity TV Mobile-App DeutscheRohstoffnacht