Slide 1: Investor Presentation & Introduction Q2 2018
Investor Presentation & Introduction Q2 2018
Slide 2: Forward Looking Statements & Qualified Person
Forward Looking Statements & Qualified Person 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
Slide 3: Strategically Positioned
Introduction Strategically Positioned 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 (indicated mineral
Slide 4: Athabasca Basin Portfolio
Introduction Athabasca Basin Portfolio • 10 Projects – All Active • Advanced stage of exploration – Dozens of drill targets well defined – Low priority property all exited – Assessment requirements current • Support and Continued Spending by the 2 Largest U Producers in the world Most Speculative Ph
Slide 5: Capitalization
Introduction Capitalization Fully Funded to continue aggressive programs in the Patterson Uranium District As at March 31, 2018 Market Capitalization $14,336,215 Share Price $0.07 $0.055 - 52 Week Range $0.185 Basic Shares Outstanding 204,803,072 Options (@ $0.08 weighted avg.) 18,180,000 Warrants (
Slide 6: Leadership
Introduction Leadership • Chris Frostad (President, CEO, Director) • Roger Watson (Chief Geophysicist) – Previous: 40 yrs Geophysical Consultant and founder of – Current: President & CEO of Minera Alamos Inc. the firm Patterson Grant & Watson – Previous: 30 yrs in various exec. roles in both public
Slide 7: Partnerships
Introduction Partnerships Hook Lake Project Smart Lake Project – Ownership – Ownership • 21% Purepoint Uranium (project operator) • 23% Purepoint Uranium (project operator) • 39.5% Cameco Corporation • 77% Cameco Corporation • 39.5% Orano Canada Inc. 2018 Hook Lake Drill Program Budget – Cameco Corp
Slide 8: Uranium Prices – Current Status
Industry Uranium Prices – Current Status U3O8 Spot Price, 15 Years Cigar Lake Flood Fukushima Disaster Marginal Cost of Production Two primary factors driving and holding Uranium prices down: 1. Excess inventory – created by 5 years of increasing production (16%) following the loss of >10% of the wo
Slide 9: Uranium Production
Industry Uranium Production Tonnes U per year Global Uranium Production Since the Fukushima shut-down in 2011 to 2016: Japanese • Kazakh annual production has increased Tsunami 34% (6,000 t / yr.) • The rest of the world showed a marginal reduction of 4% (1,424 t / yr) Kazakhstan Production 2017/18
Slide 10: Reactor Demand
Industry Reactor Demand Global Nuclear Power Generation GW.h (Does not include Japanese Re-Starts) • Nuclear power generation has now returned to pre-Fukushima levels • 70% of construction projects in China, Russia & India • Uranium demand must take into consideration a 30 month lead time on initial
Slide 11: Uranium Prices – The Tipping Point
Industry Uranium Prices – The Tipping Point The following factors are prompting a U3O8 price turn around: (In order of impact) 1. Reduction of Production – All major uranium miners are proactively reducing production during 2017-2018; 2. Increase in Reactor Demand – During 2017 (and in the absence o
Slide 12: Hook Lake Project Location
Hook Lake Project Location Current Priority Spitfire High-Grade Discovery Patterson Uranium District (12)
Slide 13: Hook Lake Project Location
Hook Lake Project Location (13)
Slide 14: Discoveries
Patterson Uranium District Discoveries Recent drilling along the Primary Shear has resulted in a continuation of high grade mineralization discoveries into the Hook Lake Project Triple R Deposit Arrow Deposit Hook Lake JV indicated mineral resource Indicated mineral resource •Spitfire/Harpoon Deposi
Slide 15: Patterson Uranium District Discoveries
Patterson Uranium District Discoveries The Patterson Uranium District is a corridor lying across the SW edge of Saskatchewan’s Athabasca Basin, interpreted to extend at least 50 km and hosts: • Fissions Triple R Deposit; • NexGen’s Arrow Deposit; and • Purepoint’s Spitfire Discovery (53.3% U3O8 over
Slide 16: 2017/18 Diamond Drilling Program
Patterson Uranium District 2017/18 Diamond Drilling Program Area of Focus: Fall 2017/Winter 2018 Focus 1.Follow up on the Spitfire/Harpoon deposit Dragon 2.Follow up on initial • 4 holes discoveries at Dragon Zone; • 2,087 m and 3.Initial drilling at historic Hornet Derkson Discovery • 10 holes • 3,
Slide 17: Spitfire Area High-grade Intersections
Patterson Uranium District Spitfire Area Adequate drilling has now been completed to interpret the Spitfire/Harpoon Deposit that bridges the claim line with NexGen High-grade Intersections Hole ID From (m) To (m) Width U3O8 (wt %) (m) HK15-27 389.0 391.8 2.8 2.23 includes 390.4 390.8 0.4 12.9 HK16-3
Slide 18: Spitfire/Harpoon Deposit Ongoing Drill Targets
Patterson Uranium District Spitfire/Harpoon Deposit Ongoing Drill Targets (18)
Slide 19: Spitfire/Harpoon Deposit Inclined Longitudinal Section
Patterson Uranium District Spitfire/Harpoon Deposit Inclined Longitudinal Section (19)
Slide 20: Dragon Zone
Patterson Uranium District Dragon Zone Follow up on Winter 2017 Drilling • New trails and drill pads established during the winter • Four initial holes completed during the winter 2017 program (2,087m) • HK17-75 lost at depth within a pressurized sand seam • All returned excellent indicators (clay a
Slide 21: Dragon Zone
Patterson Uranium District Dragon Zone (21)
Slide 22: Derkson Corridor
Patterson Uranium District Derkson Corridor Geophysical Survey Winter 2018 • 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) • D
Slide 23: Projects
Projects Purepoint Size Ownership Stage of Completion Investment to Next Steps Held Until • Precise and strategic Project (hectares) Partners Date approach, securing 21% Follow Up March highly prospective Hook Lake 28,598 Cameco & Orano Discovery $6,750,000 Drilling 2028 areas of defined potential 2
Slide 24: Contact
Investor Presentation & Introduction Contact Chris Frostad President & CEO cfrostad@purepoint.ca 416.603.8368 120 Adelaide St. West. Suite 2500 Toronto . Ontario . Canada . M5H 1T1