Purepoint Uranium Group Inc. · TSXV:PTU
Purepoint Uranium — Investor Presentation (November 2022)
39 slides from Purepoint Uranium's investor presentation, November 2022
Slide 1: A Compelling Exploration Advantage
A COMPELLING EXPLORATION ADVANTAGE Fully funded drill programs currently underway TSXV: PTU / OTCQB: PTUUF Q4 - 2022
Slide 2: Forward Looking Statements
Forward Looking Statements Disclaimer The general information set out in this presentation regarding the uranium market, including but not limited to, the demand and supply of uranium, historical events that affected uranium pricing, the global state of the uranium market and other related informati
Slide 3: The Uranium Landscape: A Small and Opaque Market
THE URANIUM LANDSCAPE A Small and Opaque Market Global Production Uranium $ Despite powering approximately 10% of Approximate $ Value as a the world’s electrical needs, uranium is a Metric tonnes Percentage relatively small market Value Uranium (demand) 62,000 $7 billion - Coal 8,000,000,000 $600 bi
Slide 4: Uranium Price Cycle
THE URANIUM LANDSCAPE Uranium Price Cycle Fukushima U.S Production Shut Down Effectively halted Planned & Sustained Azelik Mine China Langer Heinrich Namibia Supply Reductions $80.00 Honeymoon Mine Rabbit Lake McArthur River $70.00 Australia Canada Canada Olympic Dam Australia Incentive Price Somair
Slide 5: Uranium Price Cycle: Production/Demand Gap
THE URANIUM LANDSCAPE Uranium Price Cycle $80.00 $70.00 30% Annual Production/Demand Gap $60.00 23% $50.00 19% 19% $40.00 14% 15% 14% $30.00 10% 9% $20.00 7% $10.00 0% $0.00 2011 2013 2015 2017 2019 2021 TSXV: PTU | OTCQB: PTUUF 5
Slide 6: Recent Accelerators: Russia's Potential Disruption
THE URANIUM LANDSCAPE Recent Accelerators Russia’s Potential Disruption of the Uranium Fuel Cycle Russia currently provides the U3O8 world with: • 14% of its uranium (U3O8) Nuclear Fuel Creation • 27% of its conversion; and Reactor Exploration • 39% of its enrichment Many countries are currently scr
Slide 7: Compelling Exploration Upside
COMPELLING EXPLORATION UPSIDE Exploration discovery delivers the most dramatic inflection point in resource value Carefully Assembled Athabasca Basin Portfolio Actively advancing a deep pipeline of strategically situated, drill ready projects in the world’s richest uranium district The uranium indus
Slide 8: Deep Portfolio of Advanced Drill Ready Projects
DEEP PORTFOLIO OF ADVANCED DRILL READY PROJECTS 12 highly prospective projects Since 2002, Purepoint has acquired and explored over 500,000 hectares of property across the Athabasca Basin, quickly and efficiently releasing those demonstrating the fewest prospects. What remains is a collection of wel
Slide 9: Deep Portfolio of Advanced Drill Ready Projects
DEEP PORTFOLIO OF ADVANCED DRILL READY PROJECTS 12 highly prospective projects TSXV: PTU | OTCQB: PTUUF 9
Slide 10: 100% Owned Red Willow Project
100% OWNED RED WILLOW PROJECT A host of ready targets Description Next Steps • 22 mineral claims for a total of • Fall 2022 drill program underway 40,116 hectares • 3,500m of drilling across 10 holes at • 100% owned the Osprey zone • 2022 winter drill program intersected uranium mineralization along
Slide 11: 100% Owned Red Willow
100% OWNED RED WILLOW ~10km SW of Orano’s JEB Mine & ~10km S of Cameco’s Eagle Point Mine Topping Island Golden Eye Zone CBA Zone Description: Osprey • 22 mineral claims having a total area Zone of 40,116 hectares • 100% Owned Geneva Lyon Lake Zone Zone • 2022 Drill Program: Dancing Lake Zones • Pri
Slide 12: Red Willow – Osprey Zone
RED WILLOW – OSPREY ZONE Expanding the discovery • 12 holes were completed this winter totaling 2,088 metres at the Osprey Zone • Nine of the twelve holes encountered anomalous radioactivity at a shallow depth from surface across a distance of 1.2 kilometres • The electromagnetic conductor that repr
Slide 13: Red Willow – Osprey Zone
RED WILLOW – OSPREY ZONE Expanding the discovery Priority follow up on last hole OSP22-15 which encountered numerous structures with hematite alteration and silicification Hole From Width Peak U3O8 1.5 km To (m) U (ppm) Number (m) (m) CPS (wt%) untested OSP22-04 70.4 71.2 0.8 8,830 95 0.01 conductor
Slide 14: Hook Lake JV
HOOK LAKE JV Cameco | Orano | Purepoint Joint Venture Breakdown Next Steps • Cameco: 39.5% • Orano: 39.5% • Drill program at the Carter Corridor • Purepoint: 21.0% • Joint Venture partners to set budget for upcoming winter drill program by Mid-November • As the operator, Purepoint earns a 10% 2022 m
Slide 15: Hook Lake JV
HOOK LAKE JV Cameco | Orano | Purepoint Purepoint’s Spitfire Discovery . • Resource not defined • Results include 10.3% U3O8 . over 10.0 metres . NexGen’s Arrow Deposit • 2018 PFS . • Indicated Resource • 256,600,000 lbs U3O8 • Avg Grade 4.03% U3O8 Fission’s Triple R Deposit • 2022 Resource Est. • I
Slide 16: Hook Lake JV: Spitfire Discovery
HOOK LAKE JV Spitfire Discovery TSXV: PTU | OTCQB: PTUUF 16
Slide 17: Hook Lake JV: Patterson Lake Model
HOOK LAKE JV Patterson Lake Model Generic Model TSXV: PTU | OTCQB: PTUUF 17
Slide 18: Hook Lake JV: Patterson Lake Model
HOOK LAKE JV Patterson Lake Model Generic Model Fission’s – Triple R Deposit Purepoint’s – Spitfire Deposit NexGen’s – Arrow Deposit TSXV: PTU | OTCQB: PTUUF 18
Slide 19: Significant Learnings Clearwater Domain
Significant Learnings Clearwater Domain Sabre • Geological Setting • Rock Type Dragon Geological Survey of Canada* Hornet • Heat from Clearwater Domain mobilized oxygenated uranium • Mobilized uranium found long lived, reactivated faults • Uranium precipitation occurred as oxygen left the fluids * -
Slide 20: Significant Learnings Clearwater Domain
Significant Learnings Clearwater Domain • Geological Setting • Rock Type Geological Survey of Canada* • Heat from Clearwater Domain mobilized oxygenated uranium • Mobilized uranium found long lived, reactivated faults • Uranium precipitation occurred as oxygen left the fluids * - Potter, E.G., Tschi
Slide 21: Clearwater Domain Carter Corridor
Carter Corridor Clearwater • 25km band of graphitic conductors Domain • Ideal Rock Type Carter Corridor • Extremely close to hydrothermal heat source (Clearwater Domain) • Complex, long-lived faulting pattern 2008 Purepoint Drilling • Predates any Patterson discoveries • Spikey radiation at 50 m ben
Slide 22: 100% Owned Turnor Lake Project
100% OWNED TURNOR LAKE PROJECT Drilling to date has identified a large region of elevated uranium Description Next Steps • 9,706 hectares situated in the easter plane of the • Fall 2022 Drill Program at the Serin Athabasca Basin Conductor • 100% owned • Assessment held until August 2031 TSXV: PTU |
Slide 23: 100% Owned Turnor Lake Project
100% OWNED TURNOR LAKE PROJECT Drilling to date has identified a large region of elevated uranium IsoEnergy’s Hurricane Deposit 48.61MM lbs U3O8 @ 34.5% Purepoint IsoEnergy Denison ddh OD-1 0.06% U3O8 over 3.4 m La Roque Showing 29.9% U3O8 over 7.0 m Cameco Description: • 9,706 hectares situated in
Slide 24: Turnor Lake: Serin Conductor to be drill tested
TURNOR LAKE Serin Conductor to be drill tested Serin Conductor SEISMIC LINE SMDC 1985 Seismic survey interpreted a 150m fault at the Serin Conductor (setting similar to MacArthur River Deposit) TSXV: PTU | OTCQB: PTUUF 24
Slide 25: Capital Structure
CAPITAL STRUCTURE Fully funded for upcoming exploration schedule Share Price Change Since Dec 1, 2020 (5 Day Rolling Average) TSX Venture: PTU/ OTCQB: PTUUF Market Capitalization ($Cdn as of Sept 30, 2022) $25.8 mm 52 Week Range $0.17 - $0.06 Shares Outstanding 368.89 mm Options (@$0.09 weighted avg
Slide 26: Compelling Exploration Upside
COMPELLING EXPLORATION UPSIDE Exploration discovery delivers the most dramatic inflection point in resource value Carefully Assembled Athabasca Basin Portfolio Actively advancing a deep pipeline of strategically situated, Fully Funded Drilling Programs Underway drill ready projects in the world’s ri
Slide 27: Chris Frostad, President & CEO contact details
Chris Frostad, President & CEO cfrostad@purepoint.ca T: +1.416.603.8368 Jeanny So, Corporate Communications info@jeannyso.com T: +1.647.202.0994 www.purepoint.ca Twitter @PurepointU3O8 LinkedIn @Purepoint-Uranium YouTube @Purepoint Uranium
Slide 28: Appendix
Appendix TSXV: PTU / OTCQB: PTUUF Q4 - 2022 28
Slide 29: Highly Qualified Leadership Team
HIGHLY QUALIFIED LEADERSHIP TEAM With decades of experience in the Athabasca Basin Chris Frostad, BBA, CA, CPA - President & CEO and Director Linda Tong, GIS Specialist • 35+ years of experience in the development and building a variety of high • 20+ years of experience in GIS application, GIS growt
Slide 30: The Uranium Landscape: A Small and Opaque Market
THE URANIUM LANDSCAPE A Small and Opaque Market Uranium fuel represents approximately 10% 40 Impact of Fuel Costs of nuclear electricity generation costs On Electricity Generation Costs Gas 35 A doubling of fuel prices equals a resulting rise in electricity costs of: 30 Coal ü Gas 66% ü Coal 31% 25
Slide 31: Typical Uranium Sales Channel
THE URANIUM LANDSCAPE A Small and Opaque Market Typical Uranium Sales Channel Spot prices are reported daily, while tendered long-term contract prices are generally reported once a month Spot Market 15% Off Market Long Term Contracts Contracts 60% 25% 60% of the market is negotiated directly between
Slide 32: Recent Accelerators: Nuclear as Clean Energy
THE URANIUM LANDSCAPE Recent Accelerators 1. Nuclear is now Considered a Zero-Emission Clean Energy Source! October 3, 2022 March 19, 2022 Nuclear power plants produce Belgium to Extend Life of Nuclear no greenhouse gas emissions Bill introduced to remove nuclear Reactors By Another Decade during op
Slide 33: Recent Accelerators: Energy Self Sufficiency
THE URANIUM LANDSCAPE Recent Accelerators 2. Growing Politics of Energy Self Sufficiency The migration to nuclear, and recent disruptions in energy supply have prompted developed countries to shore up uranium fuel availability through: • Newly heightened support for domestic uranium fuel exploration
Slide 34: The Value of Discovery
THE VALUE OF DISCOVERY The Objectives of an Exploration Investment 4+ years 1-2 years 2-3 years 2 years 1 year 10+ years Concept Pre-discovery Discovery Feasibility Development Startup Depletion TSXV: PTU | OTCQB: PTUUF 34
Slide 35: Athabasca Basin Returns: Hathor's Roughrider
THE VALUE OF DISCOVERY Athabasca Basin Returns Hathor’s Roughrider Deposit • 58MM lbs U3O8 (Ind+Inf) • 8.6% avg grade December 2011 Rio Tinto Acquires Hathor Purchase Price $4.70 November 2010 Roughrider Resource Estimate Stock moves to $3.60 March 2008 Roughrider Discovery Stock moves from $0.05 to
Slide 36: Athabasca Basin Returns: Triple R Deposit
THE VALUE OF DISCOVERY Athabasca Basin Returns Fission & Alpha’s Triple R Deposit • 114.9MM lbs U3O8 (Ind) • 1.94% avg grade Today Pre-Feasibility Stage Equivalent Fission Value $9.60 September 2013 Alpha acquired by Fission Pre-resource price $7.67 September 2012 Triple R Discovery Alpha moves from
Slide 37: Athabasca Basin Returns: Arrow Deposit
THE VALUE OF DISCOVERY Athabasca Basin Returns NexGen’s Arrow Deposit • 256.6MM lbs U3O8 (Ind) • 4.03% avg grade April 2017 Preliminary Economic Assessment Stock reaches $2.85 March 2016 Arrow Resource Estimate Stock moves to $1.70 January 2014 Arrow Discovery Stock moves from $0.29 to $0.49 Decembe
Slide 38: Athabasca Basin Returns: Hurricane Deposit
THE VALUE OF DISCOVERY Athabasca Basin Returns IsoEnergy’s Hurricane Deposit • 46.6MM lbs U3O8 (Ind) • 34.5% avg grade July 2022 Hurricane Resource Estimate Stock moves to $3.80 February 2020 Hurricane Discovery Stock moves from $0.40 to $1.20 May 2018 IsoEnergy acquires Larocque East project from C
Slide 39: Athabasca Basin Returns
THE VALUE OF DISCOVERY Athabasca Basin Returns • Hathor Exploration Return 94 x • Fission Uranium Return 480 x • NexGen Energy Return 10 x • IsoEnergy Return 10 x 4+ years 1-2 years 2-3 years 2 years 1 year 10+ years Concept Pre-discovery Discovery Feasibility Development Startup Depletion TSXV: PTU
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