Slide 1: Denison Mines Corp. Investor Update
Denison Mines Corp. Investor Update May 2013
Slide 2: Cautionary Statements
Cautionary Statements Statements contained herein which are not historical facts are forward-looking statements that involve risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Factors that co
Slide 3: Uranium Market Overview
Uranium Market Overview • Post-Fukushima market has been negatively impacted by uncertainty and over supply • Governments re-evaluate nuclear power programs • Shutdowns announced • Construction suspended • Extensive safety reviews 3
Slide 4: World Nuclear Power Reactors
4 World Nuclear Power Reactors 500 450 400 350 300 250 2007 200 Feb-11 May-13 150 100 50 0 Operable Under Planned Proposed Construction Today there are 78% more reactors under construction and planned than there were during the uranium spot price peak in 2007. Source: World Nuclear Association, May
Slide 5: Demand Growth Fueled by New Builds
Demand Growth Fueled by New Builds • Top 3 represent over 57% of the 545 reactors under construction, planned or proposed China India Russia USA Japan Ukraine UAE South Korea 0 50 100 150 200 250 Under Construction Planned Proposed Source: World Nuclear Association, May 2013 5
Slide 6: U3O8 Daily and Long-term Prices
U3O8 Daily and Long-term Prices $75.00 $70.00 Daily Price $65.00 (US$/lb U3O8) Long-term $60.00 Price $55.00 $50.00 Published by UxCo $45.00 $40.00 January 2011 - April 2013 6
Slide 7: Near Term Uncovered Demand
Near Term Uncovered Demand 250.0 200.0 Lbs. U3O8 (million) 150.0 Non-U.S. Utilities 100.0 U.S. Utilities Published by 50.0 UxCo - 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 7
Slide 8: Denison's Strategic Strengths
Denison’s Strategic Strengths • One of the best exploration projects combined with strong, growing portfolio near Athabasca Basin infrastructure • Access to uranium milling in the Athabasca Basin • Access to novel mining technology ideal for Athabasca type deposits • Manager of Uranium Participation
Slide 9: Athabasca Basin Portfolio (as of December 31, 2012)
Athabasca Basin Portfolio (as of December 31, 2012) 9
Slide 10: Athabasca Basin Portfolio (as of April 30, 2013)
Athabasca Basin Portfolio (as of April 30, 2013) 10
Slide 11: Waterbury Lake
Waterbury Lake (60% Denison, 40% KEPCO) • Mineral Resource** at J Zone deposit (100% Basis) Rio Tinto’s Roughrider • Indicated: 10.2 Mlbs (307,000 tonnes at Fission J Zone 1.52% U3O8) Midwest A Deposit • Inferred: 2.8 Mlbs (138,000 tonnes at 0.90% U3O8) • Largely under explored Midwest Deposit prope
Slide 12: Wheeler River
Wheeler River • 60% owned by Denison • Cameco 30% • JCU 10% • Denison is the operator 12
Slide 13: Increase in Phoenix Resources
Increase in Phoenix Resources 152,400 tonnes @ 15.6% U3O8 Indicated Resources 2012 11,600 tonnes @ 29.8% U3O8 2010 Inferred Resources 0 10,000 20,000 30,000 40,000 50,000 60,000 Lbs. U3O8 (000’s) Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. Mineral Reso
Slide 14: Athabasca Basin Deposits - Contained M lbs U3O8
Athabasca Basin Deposits Contained M lbs U3O8 as of April 2013 McArthur River Cigar Lake Shea Creek Millennium Phoenix Roughrider Midwest Eagle Point Horseshoe/Raven McClean Tamarack J Zone Dawn Lake Midwest A West Bear 0 50 100 150 200 250 300 350 400 450 500 M lbs. U3from All data O8Public Sources
Slide 15: Athabasca Basin Deposits - Grade % U3O8
Athabasca Basin Deposits Grade % U3O8 as of April 2013 Phoenix Cigar Lake McArthur River Roughrider Midwest Millennium Tamarack Dawn Lake McClean J Zone Shea Creek Midwest A West Bear Eagle Point Horseshoe/Raven 0 2 4 6 8 10 12 14 16 18 % AllUdata 3Ofrom 8 Public Sources. All Resource Categories hav
Slide 16: Athabasca Basin Deposits Depth (m)
Athabasca Basin Deposits Depth (m) All data from Public Sources. 16
Slide 17: 2012 In-fill Drilling Results
2012 In-fill Drilling Results WR-496 3.5 m @ 36.3% eU3O8 WR-498 3.1 m @ 24.1% eU3O8 WR-499 2.6 m @ 14.8% eU3O8 WR-501 3.0 m @ 13.5% eU3O8 17
Slide 18: Wheeler River 2013 Program
Wheeler River 2013 Program • Diamond Drilling: • 48 holes, 25,000 m • Geophysics: • DC-Resistivity • VTEM Max • Environmental • $6.8M Total • $4.0M Denison Share 18
Slide 19: Wheeler River Potential
ornson'DA A Wheeler River Potential omison44 DENISON MINES CORP. WHEELER RIVER PROPERTY TARGET AREAS Denison 60% Cameco 30% JCU 10% Za vD PHOENIX DEPOSITS] \y pelite graphitic pelite uke Target Area garnetiferous pelite i semipelite ++ power line tai i" Gents main road ~7~-— access road A camp
Slide 20: McClean Lake Mill Location
McClean Lake Mill Location 20
Slide 21: McClean Lake Mill (Saskatchewan)
McCLEAN LAKE MILL (Saskatchewan) • Denison owns 22.5%, AREVA 70%, OURD 7.5% • Only mill designed for high-grade ore • Currently on stand-by – costs met by CLJV 21
Slide 22: McClean Lake Mill & Cigar Lake
McClean Lake Mill & Cigar Lake • Scheduled to begin processing of Cigar Lake uranium ore in 2013 • Mill expansion has begun • Capacity increase from 13 M to 24 M lbs/yr • Completed 2016 • Cdn$150 M • Added flexibility • Opportunity to upgrade capacity for McClean in the future 22
Slide 23: McClean Lake Milling Capacity
McClean Lake Milling Capacity Access to Mill Capacity Available Capacity 9 6 PRIORITY 1. McClean Lake / Midwest JV 2. Partners 3. Others Cigar Lake 18 18 Capacity - 24.0 M lbs. Capacity - 27.0 M lbs. 23
Slide 24: Surface Access Borehole Resource Extraction (SABRE)
Surface Access Borehole Resource Extraction (SABRE) • SABRE: combines surface drilling & hydraulic borehole mining • Advantages • Low capital costs • Production flexibility • Small environmental footprint 24
Slide 25: SABRE Process
SABRE Process Provided by AREVA Resources Canada Inc. 25
Slide 26: SABRE Process
SABRE Process 50m–300m 1m–15m • Depth ranges are estimates with current processes and equipment, modification could be made to extend ranges. 26
Slide 27: SABRE Today
SABRE Today • 2012: 2-hole SABRE test at McClean North • > 150,000 lbs. U3O8 recovered to date • 2013 – studies SABRE 1 SABRE 2 to evaluate SABRE for test mining of Caribou deposit 27
Slide 28: Mutanga Project – Zambia
Mutanga Project – Zambia • 100% owned by Denison • Existing infrastructure • power, roads, water • Project is licensed • 25-year mining licenses, EA & Radioactive Material License 180 km from Lusaka Mutanga 36 km from Kariba dam 28
Slide 29: Mutanga Project – Zambia
Mutanga Project – Zambia MUTANGA PROJECT NI 43-101 Resource Estimates Tonnes eU3O8 Lbs U3O8 Category (000’s) (ppm) (000’s) Measured 1,880 481 1,992 Indicated 8,400 314 5,817 Measured & 10,280 345 7,809 Indicated Inferred 65,270 288 41,400 •The resources have been prepared in accordance with NI 43-10
Slide 30: Mutanga Drilling Program
Mutanga Drilling Program High priority areas for soil geochemistry and radon surveying in 2013 Dibwe-Mutanga Corridor 30
Slide 31: Gurvan Saihan JV – Mongolia
Gurvan Saihan JV – Mongolia • Resources • Indicated - 19.8 million lbs. (12.3 million tonnes @ 0.07% U3O8) • Inferred - 5.8 million lbs. (5.5 million tonnes @ 0.05% U3O8 ) • Mining license applications filed • 2013 – focus on restructuring & obtaining mining licenses 31
Slide 32: 2013 Planned Exploration & Development Spending
2013 Planned Exploration & Development Spending • Canadian exploration $9.9 million • Total spend of approximately $14.6 million including partners’ share • Canadian development $3.5 million • Majority on SABRE • Zambia $3.5 million • Mongolia $1.7 million 32
Slide 33: Management Objectives
Management Objectives • To build one of the strongest portfolios of strategic uranium deposits and properties in the Athabasca Basin • To spend exploration dollars efficiently and aggressively to delineate new uranium resources • To ensure all environmental, health and safety laws and requirements a
Slide 34: Management Objectives (cont'd)
Management Objectives (cont’d) • To maintain and build a management and technical team to accomplish our objectives • To rationalize our asset base over time • To maximize shareholder value and to position Denison as a top-tier uranium investment 34
Slide 35: Corporate Information
Corporate Information Exchanges TSX, NYSE - MKT Ron Hochstein (Pres & CEO, Director) Shares Outstanding 449.8 M Steve Blower (V.P. Exploration) Warrants 1.8 M Lukas Lundin (Chairman) Options 10.4 M John Craig (Lead Director) Fully Diluted 462.0M Bob Dengler (Director) Market Cap. Brian Edgar (Direct
Slide 36: For further info, contact: Denison Mines Corp.
For further info, contact: Denison Mines Corp. Phone: 416.979.1991 ext 366 Toll Free: 1.888.689.7842 Email: info@denisonmines.com Web: www.denisonmines.com TSX:DML www.denisonmines.com NYSE MKT:DNN