Slide 1: Uranium Development & Exploration
Uranium Development & Exploration The Athabasca Basin, Northern Saskatchewan October 2018 | Investor Update
Slide 2: Cautionary Statements & References
Cautionary Statements & References This presentation and the information contained herein is designed to help you understand management’s current views, and may not be appropriate for other purposes. This presentation contains information relating to other companies and provincial infrastructure, an
Slide 3: ~320,000 Hectares of Prospective Exploration & Development Ground
~320,000 Hectares of Prospective Exploration & Development Ground Focused in the Infrastructure Rich Eastern Athabasca Basin Denison Land Position as of June 30, 2018 Waterbury (Denison 64.2%) McClean Lake Mill (Denison 22.5%) Hook-Carter (Denison 80%) Cigar Lake Mine Rabbit Lake Mill McArthur River
Slide 4: Wheeler River Project Pre-Feasibility Study
Wheeler River Project Pre-Feasibility Study(1) Highlights: • Selection of In-Situ Recovery (“ISR”) mining method for Phoenix with onsite processing at Wheeler River • Phoenix estimated to have exceptionally low operating costs for an undeveloped uranium deposit globally – US$3.33/lb U3O8 • Conventio
Slide 5: Wheeler River PFS: Ownership, uranium price assumptions, and sensitivities
Wheeler River PFS: Ownership, uranium price assumptions, and sensitivities PFS Pre-Tax NPV8% (100% Basis) Base Case Price Assumptions: 3000 • Phoenix Operation: 2500 ~US$29/lb U3O8 to US$45/lb U3O8 2000 UxC Spot price forecast $ millions 1500 $2.59B “Composite Midpoint” scenario $1.41B 1000 PFS
Slide 6: Phoenix Geology: Unique uranium deposit with exceptionally high grades
Phoenix Geology: Unique uranium deposit with exceptionally high grades Highlights(1): • Mineralization is situated at or immediately above the unconformity(“UC”) • Two distinct zones – Phoenix A + B Zone A High-Grade Core • Approximately 400m below surface • 70.2 million pounds U3O8 @ 19.14% U3O8 In
Slide 7: Phoenix Operation: Selection of ISR mining method
Phoenix Operation: Selection of ISR mining method ISR Mining Process(1): 1. Mining solution (also known as “lixiviant”) is pumped through a permeable orebody via injection well; 2. Lixiviant dissolves the uranium as it travels through the orebody; 3. Uranium bearing mining solution (“UBS”) is pumped
Slide 8: Phoenix Freeze Cap: Novel concept to contain lixiviant
Phoenix Freeze Cap: Novel concept to contain lixiviant, using established technology Artificial freeze cap replicates confining layer typically required for ISR mining operations(1) • Parallel cased holes drilled from surface and anchored into impermeable basement rock surrounding the Phoenix deposi
Slide 9: Phoenix Test Work: Confirms suitability of ISR mining method
Phoenix Test Work(1): Confirms suitability of ISR mining method Field and laboratory work included drill hole injection, permeability, metallurgical leach, agitated leach and column testing • Excellent Recoveries: High rates of recovery in extraction (+90%) and processing (98.5%) • High Grade: Agita
Slide 10: Phoenix ISR Processing Plant: Closed loop system and simplified plant design
Phoenix ISR Processing Plant: Closed loop system and simplified plant design eliminates the need for discharge On-Site Processing Plant(1) • Designed for UBS concentrations of 10 g/L • Throughput of 500 litres per min • Annual production of up to 6 million lbs U3O8 • Closed loop system recycles mini
Slide 11: Phoenix Operation: Proposed site layout highlighting ISR wellfield
Phoenix Operation: Proposed site layout highlighting ISR wellfield 133,300 drill metres 94 Recovery wells 199 Injection wells 17 Monitoring wells N
Slide 12: Phoenix Operation: ISR mining method delivers industry leading cost per pound
Phoenix Operation: ISR mining method delivers industry leading cost per pound U3O8 Phoenix Operation PFS Result(1) Mine life 10 years (6.0 million lbs U3O8 per year on average) Average cash operating costs $4.33 (US$3.33) per lb U3O8 Initial capital costs (100% basis) $322.5 million Operating margin
Slide 13: Gryphon Operation: Additional low-cost production with conventional UG mining
Gryphon Operation: Additional low-cost production with conventional UG mining Moderate grades and style of mineralization allows for conventional UG mining(1) • 61.9 million pounds U3O8 @ 1.7% U3O8 Indicated mineral resources (1,643,000 tonnes)(2) 1.9M lbs U3O8 in Inferred resources (73,000 tonnes
Slide 14: Gryphon Operation: Minimal site infrastructure owing to toll milling & Phoenix site
Gryphon Operation: Minimal site infrastructure owing to toll milling & Phoenix site NN 14
Slide 15: Gryphon Operation: Assumes processing at 22.5% Denison owned McClean Lake mill
Gryphon Operation: Assumes processing at 22.5% Denison owned McClean Lake mill(1) Processes +12% of global uranium production: • Operating under 10-year license granted by Canadian Nuclear Safety Comm. in 2017 Licensed for 24M lbs U3O8 / year • PFS assumes Cigar Lake production will decline to 15M
Slide 16: Gryphon Operation: PFS Result
Gryphon Operation: Additional low-cost production with conventional UG mining Gryphon Operation PFS Result(1) Mine life 6.5 years (7.6 million lbs U3O8 per year on average) Average cash operating costs $15.21 (US$11.70) per lb U3O8 Initial capital costs (100% basis) $623.1 million Operating margin(3
Slide 17: Wheeler River PFS: 14 year mine life producing +7.5M lbs U3O8 per year
Wheeler River PFS: 14 year mine life producing +7.5M lbs U3O8 per year on average(1) 16 Phoenix Gryphon 14 Million Pounds U3O8 Per Annum 12 10 8 6 4 2 0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 17 NOTES: (1) See Denison news release dated September 24, 201
Slide 18: Wheeler River PFS: Statement of Reserves and Denison indicative post-tax results
Wheeler River PFS (1) : Statement of Reserves and Denison indicative post-tax results Denison is increasing its ownership in the WRJV from 63.3% to up to 90% under two recently announced agreements with partners to the Wheeler River Joint Venture. See Denison press releases dated January 10, 2017 an
Slide 19: The Infrastructure Rich Eastern Athabasca Basin
The Infrastructure Rich Eastern Athabasca Basin Existing infrastructure supports mining operations in proximity of Wheeler River: • 4 licensed uranium mines (Cigar Lake, McArthur River, Eagle Point, McClean) + 3 licensed uranium mills (McClean, Key, Rabbit) • Provincial power grid – reliable, cost e
Slide 20: Diversified Athabasca Basin Asset Base with Superior Development Leverage
Diversified Athabasca Basin Asset Base with Superior Development Leverage Strategic Project Portfolio: • Up to 90% interest in Flagship Wheeler River project (1) – largest undeveloped uranium project in infrastructure rich eastern Athabasca Basin • 22.5% interest in operating McClean Lake Uranium Mi
Slide 21: Appendix: Diversified Project Portfolio – Project Profiles
Appendix: Diversified Project Portfolio – Project Profiles 21
Slide 22: McClean Lake Uranium Project Processing Plant
McClean Lake Uranium Project Processing Plant Licensed for Annual Production of 24M lbs U3O8 “(the APG) financing allows Denison to benefit immediately from the cash flow expected to be produced from the McClean Lake mill over the next several years, without the overhang of a bullet payment or conve
Slide 23: Midwest Uranium Project: Significant Increase in Mineral Resources
Midwest Uranium Project Significant Increase in Mineral Resources with Updated Estimate “With the application of more rigorous and robust estimation procedures, in accordance with NI 43-101, we are pleased to see a significant increase in overall project resources, without additional recent drilling
Slide 24: Waterbury Lake Uranium Project
Waterbury Lake Uranium Project Mineral Resources in Close Proximity to Roughrider & McClean Lake “The high-grade mineralization at Huskie appears to be controlled by the intersection of east-west striking faults, associated with the graphitic gneiss unit, and cross-cutting northeast striking faults,
Slide 25: Hook-Carter Uranium Project
Hook-Carter Uranium Project Exploration on the Patterson Lake Corridor in the Western Athabasca Basin "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 • 15 k
Slide 26: SABRE Mining Method
SABRE Mining Method Experimental Mining Method with Potential to Access Orebodies from Surface Surface Access Borehole Resource Extraction – or “SABRE” for short – is a proprietary mining method designed to excavate underground material from surface using a water jetting process • +CAD$50M invested
Slide 27: Capital Structure & Corporate Information
Capital Structure & Corporate Information Market Summary (1) Management & Directors Exchanges TSX: DML, NYSE MKT: DNN Shares Outstanding 559.2 M • David Cates (President & CEO, Director) • Mac McDonald (VP Finance & CFO) Warrants 1.7 M • Peter Longo (VP Project Development) Options 17.5 M • Dale Ver