Slide 1: Uranium Development & Exploration: The Athabasca Basin
Uranium Development & Exploration The Athabasca Basin Investor Update – March 2018
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
Slide 3: Uranium Market: Shifting Fundamentals?
Uranium Market: Shifting Fundamentals? Utility Uranium Requirements (million pounds U3O8 - per UxC Q4‘17 • Sustained low spot and LT price 250 means very few new sources of 200 supply in the pipeline 150 • ~1.2B lbs U3O8 in uncovered demand by 2030 100 Covered Demand • Uncovered utility demand Uncov
Slide 4: Infrastructure Rich Eastern Athabasca Basin
Infrastructure Rich Eastern Athabasca Basin McClean Lake Mill (Denison 22.5%) Athabasca Waterbury (Denison 64.2%) Hook-Carter (Denison 80.0%) Basin Rabbit Lake Mill Cigar Lake Mine Proposed ~45km road connection McArthur River Mine Wheeler River (Denison 63.3%) Key Lake Mine & Mill All season highwa
Slide 5: Potential to be Top Producing Asset
Potential to be Top 5 Producing Asset Top Producing Uranium Mines 2017 est. Million Pounds U3O8 vs. Wheeler PEA Production Plan(1)(2) M lbs. M lbs. Source: UxC Uranium Market Outlook Q4’17 20 18.0 18.0 15 M lbs. 9.6 M lbs. 10 7.3 M lbs. M lbs. M lbs. M lbs. M lbs. M lbs. 6.6 6.3 5.8 5.5 5.5 5.0 5 -
Slide 6: Project Development Scorecard
Project Development Scorecard Wheeler River is poised to be the next uranium development project in the Athabasca Basin region Project Development Criteria Wheeler River Ranking(1) Denison owns 22.5% of Ownership of licenced mill with excess capacity McClean Lake Mill 1st Provincial power line and P
Slide 7: M&I Resources Available for Pre-Feasibility Studies
M&I Resources Available for Pre-Feasibility Studies 180 Wheeler River is the largest undeveloped M&I RESOURCES (M LBS U3O8) 160 uranium project in the infrastructure rich 140 eastern Athabasca Basin 120 100 80 60 40 20 0 Arrow (West) 2,3 Wheeler River Triple R (East) Millennium (West) (East) Shea Cr
Slide 8: Wheeler River Resource Growth Continues…
Wheeler River Resource Growth Continues… 160.0 140.0 2018 Resource Estimate: 97% of Total Resources classified as Indicated 120.0 3.0 44.1 44.1 44.1 100.0 80.0 M lbs U3O8 7.6 1.1 60.0 7.6 3.8 3.8 40.0 132.1 20.0 35.6 52.3 70.2 35.6 52.3 70.2 70.2 70.2 0.0 2010 2011 2012 2013 Inferred U3O8 Mlbs (1) 2
Slide 9: Gryphon Deposit
Gryphon Deposit High-grad basement-hosted > pS \ Phoemx Deposit High ataee un formity-hosted ¥ * ye . . f at
Slide 10: (1) See the Technical Report filed on SEDAR and EDGAR as “PRELIMINARY ECONOMIC ANALYSIS
(1) See the Technical Report filed on SEDAR and EDGAR as “PRELIMINARY ECONOMIC ANALYSIS FOR THE 9 WHEELER RIVER URANIUM PROJECT, SASKATCHEWAN, CANADA” March 31, 2016. Ken Reipas, P. Eng.
Slide 11: (1) See the Technical Report filed on SEDAR and EDGAR as “PRELIMINARY ECONOMIC ANALYSIS
(1) See the Technical Report filed on SEDAR and EDGAR as “PRELIMINARY ECONOMIC ANALYSIS FOR THE 10 WHEELER RIVER URANIUM PROJECT, SASKATCHEWAN, CANADA” March 31, 2016. Ken Reipas, P. Eng.
Slide 12: Indicated Mineral Resources
Indicated Mineral Resources 100 m (1) See Denison news release dated January 31st, 2018 for additional technical information and notes on quality control. 11
Slide 13: Project PEA: 2 Phase Development Plan
Project PEA: 2 Phase Development Plan 2016 PEA(1): • Does not include increase to Gryphon resource estimate announced 2018 PHASE 1: Gryphon • Conventional underground mining • USD$14.28/lb U3O8 est. OPEX • 6M lbs U3O8 / year (1) • 7 years PHASE 2: Phoenix • U/G freezing + Jet Bore mining • USD$22.15
Slide 14: Project PEA Assumes Processing at 22.5% Owned McClean Lake Mill
Project PEA Assumes Processing at 22.5% Owned McClean Lake Mill(1) McClean Lake Mill Licensed Capacity Processes ~11% of Global ` Uranium Production • 24M lbs/yr U3O8 • 18M lbs/yr reserved for Cigar Lake • 6M lbs/yr expected excess capacity Positive Processing Metallurgical Test • +97% recovery Gran
Slide 15: Infrastructure Rich Eastern Athabasca
Infrastructure Rich Eastern Athabasca • Existing infrastructure is tailored to mining operations surrounding the Wheeler property, allowing for low initial CAPEX & a lower risk profile throughout the development of the project • Wheeler is located within 50km & 100km of the two largest uranium mines
Slide 16: Summer 2017 Discovery Hole
Summer 2017 Discovery Hole: 1.2% U3O8 over 1.0 metre 9.1% U3O8 over 3.7 metres, including 16.8% U3O8 over 2.0 metres 1km See Press Releases dated August 1st, 2017, August 22nd, 2017, Sept. 19, 2017, and Oct. 11, 2017 for additional details. 15
Slide 17: Huskie Zone
“The basement plumbing system appears to be Huskie Zone improving as we move west - as indicated by the increased number of mineralized lenses, a broader and stronger alteration halo and a widening of the structured, graphitic package” Dale Verran, VP Exploration See Press Releases dated August 1st,
Slide 18: This is Elephant country
"This is Elephant country - a large property that has seen very little drilling on a geological trend with a precedent for large and high-grade uranium deposits. “ Dale Verran, VP Exploration 17
Slide 19: Company Specific Catalysts on The Horizon
Company Specific Catalysts on The Horizon Wheeler River New high-grade Inaugural drilling Wheeler River Pre-Feasibility “Huskie” discovery at program at Drilling Program Study Waterbury Hook-Carter Winter & Q1-2018 Mid-2018 Winter 2018 Summer 2018 Commencement of The PFS is expected to build High-gr
Slide 20: Denison's Uniquely Diversified Asset Base
Denison’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 • Currently tolling • PEA completed 1H16 Wheeler McClean Cigar Lake ore with 20.4%
Slide 21: The Advantage
The Advantage Wheeler River: Largest undeveloped uranium project in the infrastructure rich eastern Athabasca Basin Increasing our interest in Wheeler to up to ~66% by end of 2018 Potential to improve Wheeler River PEA economics through exploration and engineering activities Early days on new and ex
Slide 22: Appendix: Wheeler River
Appendix: Wheeler River
Slide 23: Appendix: Wheeler River Resources
Appendix: Wheeler River Resources 2018 Wheeler River Property Mineral Resource Estimate Summary(1) Deposit Category Tonnes Grade (%U3O8) Million lbs Million lbs U3O8 (100%) U3O8 (63.3% Denison) Gryphon Indicated 1,634,000 1.7 61.9 39.2 Phoenix Indicated 166,000 19.1 70.2 42.1 Total Indicated 1,809,0
Slide 24: Appendix: Wheeler River PEA Economics
Appendix: Wheeler River PEA Economics 2016 Wheeler River Project Preliminary Economic Assessment(1) (100%) Assumptions / Financial Results Base Case Production Case Uranium Price US$44.00 US$62.60 Exchange Rate (CAD:USD) 1.35 1.35 Discount Rate 8.00% 8.00% Pre-Tax IRR(2) 20.4% 34.1% Pre-Tax NPV(2) (
Slide 25: Appendix: Wheeler River Estimated CAPEX
Appendix: Wheeler River Estimated CAPEX 2016 Wheeler River Project Preliminary Economic Assessment(1) Capital Costs (CAD$ 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 $40 Subto
Slide 26: Appendix: Wheeler River Estimated OPEX
Appendix: Wheeler River Estimated OPEX 2016 Wheeler River Project Preliminary Economic Assessment(1) Operating Costs (CAD$/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 Total (C
Slide 27: Corporate Information
Corporate Information Market Summary Management & Directors Exchanges TSX: DML, NYSE MKT: DNN Lukas Lundin (Executive Chairman) Shares Outstanding(1) 559.1 M David Cates (President & CEO) Warrants(1) 1.7 M Mac McDonald (VP Finance & CFO) Options(1) 12.5 M Peter Longo (VP Project Development) Fully D
Slide 28: Uranium Development & Exploration: The Athabasca Basin
Uranium Development & Exploration The Athabasca Basin Email: @DenisonMinesCo info@denisonmines.com denisonmines.com