Denison Mines Corp. · TSX:DML

Denison Mines — Investor Presentation (November 2016)

24 slides from Denison Mines's investor presentation, November 2016

  1. Slide 1: Denison Mines Corp. Investor Update

    Denison Mines Corp. Uranium Development & Exploration in the Athabasca Basin Investor Update November 2016 TSX: DML | NYSE MKT: DNN

  2. Slide 2: Cautionary Statements & References

    Cautionary Statements & References Cautionary Statements: This presentation includes forward-looking information or forward-looking statements under Canadian and U.S. securities laws that involve risks, uncertainties and other factors that could cause actual results to differ materially from those e

  3. Slide 3: Uranium Development & Exploration, Northern Saskatchewan, Canada

    Uranium Development & Exploration Northern Saskatchewan, Canada Northern Saskatchewan, Canada TSX: DML | NYSE MKT: DNN | 3

  4. Slide 4: Wheeler River PEA: +20% IRR at US$44/lb U3O8

    Wheeler River PEA : +20% IRR at US$44/lb U3O8 (1) STRATEGY: Co-development of the high-grade Gryphon and Phoenix deposits as a single underground mining operation, leveraging existing regional infrastructure, including assumed processing at Denison’s 22.5% owned McClean Lake mill Price Protected: 20

  5. Slide 5: Wheeler River: CAD$1.4B NPV at US$62.60/lb U3O8

    Wheeler River: CAD$1.4B NPV at US$62.60/lb U3O8 2016 Wheeler River Project Preliminary Economic Assessment(1) (100%) Assumptions / Financial Results Base Case Production Case Uranium Price US$44.00 US$62.60 Exchange Rate (CAD:USD) 1.35 1.35 Discount Rate 8.00% 8.00% Initial Capital Costs (100%) CAD$

  6. Slide 6: One Project, Two High-Grade Deposits

    One Project, Two High-Grade Deposits 2015 Wheeler River Property Mineral Resource Estimate Summary(1) Million lbs Million lbs Grade U3O8 U3O8 Deposit Category Tonnes (%U3O8) (100%) (Denison) Gryphon Inferred 834,000 2.3 43.0 25.8 Phoenix Indicated 166,000 19.1 70.2 42.1 Phoenix Inferred 9,000 5.8 1.

  7. Slide 7: Wheeler River: Strategic Development Plan

    Wheeler River: Strategic Development Plan Phase 2: Phoenix Production Phase 1: Gryphon Production • Underground freezing + Jet Bore mining • Conventional underground mining • 9 years at 7.0M lbs U3O8 / year (73t/d) (1) • 7 years at 6.0M lbs U3O8 / year (399t/d) (1) • Drift to Phoenix while mining Gr

  8. Slide 8: Wheeler PEA Assumes Processing at 22.5% Owned McClean Lake Mill

    (1) See IMPORTANT CAUTION REGARDING PEA on slide 4. Licensed Capacity: 24M lbs/yr U3O8 18M lbs/yr reserved for Cigar Lake 6M lbs/yr expected excess capacity Positive Processing Metallurgical Test Gryphon (97% recovery) Phoenix (98.1% recovery) PEA Includes Minor Wheeler PEA1 Assumes processing at Mi

  9. Slide 9: Eastern Athabasca Basin: Reduced Risk Profile

    Eastern Athabasca Basin: Reduced Risk Profile Existing Infrastructure  Existing milling facility with excess capacity expected  Existing provincial highways and provincial power grid  Established mining jurisdiction and Gryphon social infrastructure  3 licensed uranium mills  Provincial power g

  10. Slide 10: DML's Initial CAPEX Estimated at CAD$336M

    DML’s Initial CAPEX Estimated at CAD$336M 2016 Wheeler River Project Preliminary Economic Assessment(1) Capital Costs (CAD$ millions) Initial Sustaining Total Surface Infrastructure $166 $7 $174 Mine $220 $334 $554 Mineral Processing $19 $60 $79 Owners Costs $25 $0 $25 Decommissioning $0 $40 $40 Sub

  11. Slide 11: Wheeler River: Avg. Operating Cost US$19.01

    Wheeler River: Avg. Operating Cost US$19.01 2016 Wheeler River Project Preliminary Economic Assessment(1) Operating Costs (CAD$/lb U3O8) Gryphon Phoenix Mining $3.45 $17.45 Surface Transportation $1.63 $0.85 Mineral Processing (including tolling) $10.03 $8.03 General & Administration $4.17 $3.57 Tot

  12. Slide 12: Looking Ahead at Wheeler River

    Looking Ahead at Wheeler River PFS Preliminary Feasibility Project Assessment 2016/17 Production Study Construction 2018 2021 2025 Looking Ahead at Wheeler River  PEA completed during 1H/2016  Initiated Pre-Feasibility Study (“PFS”) 2H/2016, including collection of geotechnical, hydrogeological, a

  13. Slide 13: Wheeler: Exploration on K-North and K-West

    Wheeler: Exploration on K-North and K-West 2016 Exploration  ~50,000 metres of drilling  CAD$10M Budget (Denison’s share CAD$6M)  Numerous targets in the vicinity of Gryphon - along the K-North trend  Recent discovery of mineralization at K-West  Other high priority targets on the property for

  14. Slide 14: Mineralization at Gryphon Continues to Grow

    Mineralization at Gryphon Continues to Grow Section 5350 GP 9.39% eU3O8/1.6m 2016 Discoveries and (outside the current NI 43-101 1.16% eU3O8/1.8m mineral resource estimate) Emergence of D Series Lenses  Extend ~330 metres along strike  Remain open to the NE and SW Expansion of A and B series lense

  15. Slide 15: Mineralization at Gryphon Continues to Grow

    Mineralization at Gryphon Continues to Grow (~500 m below surface) Notes: 1. eU3O8 is radiometric equivalent U3O8 from a calibrated total gamma down-hole probe. Chemical assay results are pending. 2. As the drill holes are oriented steeply toward the northwest and the basement mineralization is inte

  16. Slide 16: Mineralization at K-West Target

    Mineralization at K-West Target Drill Hole WR-663 Highlights4  0.039% eU3O8 over 1.1 metres 1,2,3  0.040% eU3O8 over 2.0 metres1,2,3  0.021% eU3O8 over 5.2 metres 1,2,3  Alteration zone approximately 50 metres true thickness  Follow-up holes confirm extensive alteration up- and down-dip  Addit

  17. Slide 17: DML's Uniquely Diversified Asset Base

    DML’s Uniquely Diversified Asset Base • Denison’s Flagship property in • Strategic high-grade AB uranium mill eastern Athabasca Basin (AB) • 6 M lbs/year excess • Gryphon + Phoenix milling capacity co-development • +C$6M/year in • PEA completed 1H16 Wheeler McClean tolling revenue with 20.4% IRR Riv

  18. Slide 18: Portfolio Expands to Western Athabasca Basin

    Portfolio Expands to Western Athabasca Basin Strategic Acquisition  Denison acquired 80% interest in the Hook-Carter property from ALX Uranium Corp.  Also acquired Coppin Lake project to consolidate Hook-Carter property  28 land claims = 16,805 hectares  Significantly underexplored  Only 8 hole

  19. Slide 19: 2016 Budget Highlights

    2016 Budget Highlights 2016 Current Outlook (USD, Millions) $4.0 2.73 $2.0 1.13 $0.0 -0.52 -$2.0 -$4.0 -3.12 -$6.0 2016 Financial Outlook – USD View: • Completed CAD$12.4M flow-through financing @CAD$0.82/share -$8.0 • ~CAD$15.5M in cash, cash equivalents + current investments @ Sep.30, 2016 -$10.0

  20. Slide 20: Denison & GoviEx Combine African Assets

    Denison & GoviEx Combine African Assets ~25% Stake In GoviEx (TSX-V: GXU) Denison’s African Assets  Transaction gives Denison exposure to GoviEx’s flagship Madaouela project in Niger, while finding a strategic home for Denison’s African assets  Madaoulea is one of the world’s most advanced uranium

  21. Slide 21: Flagship Wheeler River Project (60%) – Gryphon + Phoenix Deposits

    • Flagship Wheeler River Project (60%) – Gryphon + Phoenix Deposits have potential to generate +20% pre-tax IRR per PEA • Strategic ownership of the McClean Lake uranium mill (22.5%) • 350k+ Hectares of strategic ground in the Athabasca Basin • Significant internal sources of cash flow – Minimizing

  22. Slide 22: Notes

    Notes TSX: DML | NYSE MKT: DNN | 22

  23. Slide 23: Corporate Information

    Corporate Information Market Summary Management & Directors Exchanges TSX: DML, NYSE MKT: DNN Lukas Lundin (Executive Chairman) Shares Outstanding(1) 533.4 M David Cates (President & CEO) Warrants(1) nil Mac McDonald (VP Finance & CFO) Options(1) 7.4 M Peter Longo (VP Project Development) Fully Dilu

  24. Slide 24: Investor Update

    Investor Update TSX: DML NYSE MKT: DNN Phone: Email: Online: 416.979.1991 x366 info@denisonmines.com www.denisonmines.com or 1.888.689.7842 @DenisonMinesCo

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