Purepoint Uranium Group Inc. · TSXV:PTU

Purepoint Uranium — Investor Presentation (January 2019)

20 slides from Purepoint Uranium's investor presentation, January 2019

  1. Slide 1: Partnered with two of the world's largest uranium producers

    Partnered with two of the world’s largest uranium producers to explore the most prospective projects in the Athabasca Basin Corporate Presentation - Q1 2019 TSXV: PTU

  2. Slide 2: Disclaimer

    Disclaimer Forward Looking Statements This presentation contains certain “forward-looking statements”. All statements, other than statements of historical fact, that address activities, events or developments that Purepoint believes, expects or anticipates will or may occur in the future are forward

  3. Slide 3: Strategically Positioned in the Athabasca Basin

    Strategically Positioned in the Athabasca Basin High-grade discoveries in Saskatchewan’s Patterson Uranium District • Spitfire discovery (53.3% U3O8 over 1.3 metres within a 10.0 metre interval of 10.3% U3O8) by the Hook Lake JV • Patterson Uranium District hosts Fission’s Triple R Deposit (indicate

  4. Slide 4: Athabasca Basin Portfolio Projects

    Athabasca Basin Portfolio 10 Projects All Active • Advanced stage exploration ✓ Dozen of drill targets well defined ✓ Low priority property all exited ✓ Assessment requirements current • Support and continued spending by two of the largest Uranium Producers in the world • Most speculative phase of i

  5. Slide 5: Strategic Partnership

    Strategic Partnership Hook Lake Project Smart Lake Project Ownership: Ownership: • 21% Purepoint Uranium • 23% Purepoint Uranium • 39.5% Cameco Corporation • 77% Cameco Corporation • 39.5% Orano Canada 2019 Hook Lake Drill Program Budget Cameco Corporation (39.5%) $1,185,000 Orano Canada Inc. (39.5%

  6. Slide 6: Leadership

    Leadership • Chris Frostad (President, CEO, Director) • Roger Watson (Chief Geophysicist) • Current: Director, Enthusiast Gaming Holdings Inc. (EGLX) and Victory Capital Corp. (VIC.P) • Previous: 40 yrs Geophysical Consultant and founder of the firm Patterson Grant & Watson • Previous: President & C

  7. Slide 7: Capital Structure

    Capital Structure Fully funded to continue aggressive exploration programs in the Patterson Uranium District As of January 2, 2019 Market Capitalization 15,019,050 Share Price $0.07 52 Week Range: $0.10 - $0.055 Shares Outstanding 214,557,850 Options (@$0.08 weighted avg.) 18,180,000 Warrants (@$0.0

  8. Slide 8: Uranium Prices

    Uranium Prices Excess inventory and historic lows in U Prices spurred various tactics reducing global U inventories by 6.5% - 7.5% with ongoing annual reductions expected of 3% to 4% $29 Kazatomprom Kazatomprom Kazatomprom Announces Announces Cameco Announces 20% $27 10% reduction Suspends 20% reduc

  9. Slide 9: Pending Price Correction

    Pending Price Correction Unlike the Spot Price, the LT Price has maintained a steady level of $30-32.00 / lb U3O8 resulting from no significant contracts signed in over two years now $50 $45 Marginal $40 Production Cost $35 $30 $25 LT Price $20 Spot Price $15 2016 2017 2018 2019 As the Spot Price ap

  10. Slide 10: Canada's Prolific Athabasca Basin

    Canada’s Prolific Athabasca Basin Saskatchewan’s High-Grade deposits (ranging from 1% - 20%) result in the lowest cost, open pit and underground uranium mines in the world • 15.6 g/t Gold (U$1,200/oz) One uranium pellet • 1,215 g/t Silver (U$14/oz) Produces the Equivalent Power of: 1% U3O8 = • 10.78

  11. Slide 11: Hook Lake Project

    Hook Lake Project Location Q1-2019 TSXV: PTU 11

  12. Slide 12: Hook Lake Project

    Hook Lake Project Neighbours and Topography • The Patterson Uranium District is a structural corridor situated on the SW edge of the Athabasca Basin, interpreted to extend at least 50 km • The Patterson Uranium District host Fission Uranium’s Triple R Deposit, NexGen’s Arrow deposit and Purepoint’s

  13. Slide 13: Patterson Lake Uranium District

    Patterson Lake Uranium District 2019 Exploration Program • Two drills anticipate 6,600 metres of diamond drilling in approximately 17 holes • One drill has begun drilling at the Dragon zone and will move north along the primary shear with six holes • The second drill will test the Spitfire mineraliz

  14. Slide 14: Patterson Lake Uranium District

    Patterson Lake Uranium District Spitfire/Harpoon Deposit High-Grade Intersections Hole ID From (m) To (m) Width (m) U3O8 (wt %) HK15-27 389.0 391.8 2.8 2.23 includes 390.4 390.8 0.4 12.9 HK16-37 269.6 275.0 5.5 1.21 includes 269.6 270.2 0.6 9.87 HK16-43 244.05 247.6 3.1 4.07 includes 245.2 245.5 0.3

  15. Slide 15: Patterson Lake Uranium District

    Patterson Lake Uranium District Spitfire/Harpoon Deposit • Three holes drilled at Spitfire, stepping out towards the northeast, hit mineralization extending the strike length by approximately 85 metres • HK18-82 returning 1.04 %eU3O8 over 14.6 metres including 8.7% eU3O8 over 1.3 metres • An additio

  16. Slide 16: Patterson Lake Uranium District

    Patterson Lake Uranium District Spitfire/Harpoon Deposit – Inclined Longitudinal Section Q1-2019 TSXV: PTU 16

  17. Slide 17: Patterson Lake Uranium District

    Patterson Lake Uranium District Dragon Zone • The Dragon shear zone is known to be approximately 200 metres wide and is composed of 3 to 4 separate graphitic shears dipping SE, and tested overt a strike length of 750 metres • As with the Spitfire discovery, the strong hydrothermal alteration is asso

  18. Slide 18: Patterson Lake Uranium District

    Patterson Lake Uranium District Derkson Corridor • Derkson represents the third and most easterly band of graphitic conductors crossing through the Hook Lake Project • Diamond drill hole DER-04 was the earliest discovery of uranium mineralization in the area (SMDC 1978) • Despite the occurrence of m

  19. Slide 19: Project Pipeline

    Project Pipeline Size Ownership Stage of Purepoint Investment to Next Steps Held Until 10 Projects – All Active Project (hectares) Partners Completion Date 21% Follow Up March Hook Lake 28,598 Discovery $6,750,000 • Precise and strategic approach, securing Cameco & Orano Drilling 2028 highly prospec

  20. Slide 20: Contact Us

    TSX Venture: PTU Contact Us Chris Frostad President & CEO cfrostad@purepoint.ca 416.603.8368 Jeanny So Corporate Communications info@jeannyso.com 647.202.0994 Head Office 120 Adelaide St. West. Suite 2500 Toronto . Ontario . Canada . M5H 1T1 Exploration Office 111- 2nd Avenue South, Unit 530 Saskato

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