Encore Energy Corp. · TSXV:EU
Encore Energy — Merger or Acquisition (November 2022)
34 slides from Encore Energy's merger presentation, Nov 14, 2022
Slide 1: Fueling the Future: Alta Mesa Acquisition, South Texas
Fueling the Future: Alta Mesa Acquisition, South Texas November 2022 TSX.V: EU | OTCQB: ENCUF | encoreuranium.com
Slide 2: Disclaimer
Disclaimer ©2022 enCore Energy Corp., All rights reserved. Unless otherwise noted, “enCore” and all other marks used in this presentation are trademarks of enCore Energy (the “Company”). Any reproduction or dissemination of any feature of this presentation, in whole or in part, or any use of this pr
Slide 3: enCore Energy: Fueling the Future
Uranium Spot Price enCore Energy: 150 FUELING THE FUTURE 100 URANIUM Fully funded uranium production strategy to provide clean, reliable 50 and carbon-free domestic energy 0 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 Energy Metals enCore Energy enCore Energy enCore Energy enCore Energy E
Slide 4: enCore Energy: reliable domestic uranium supply
enCore Energy: reliable domestic uranium supply South Texas Focus: Rosita, Advanced Assets: US In-Situ Recovery: Uranium Kingsville Dome, and Alta Production Pipeline Extraction process with proven Mesa facilities 93.4 Mlbs in the M&I category, 25.8 economic advantages and On schedule and on budget
Slide 5: enCore corporate summary
AS AT NOVEMBER 11, 2022 enCore corporate Market Capitalization (@$3.65) $349,724,586 CDN Shares Issued & Outstanding 107,607,565 summary Warrants 8,536,820 Options 7,326,670 Fully Diluted 123,471,055 Note: * Does not include an option to buy Cash* $11.5 mm USD 200,000 lb U3O8 in Q1/23 @ $43.75 USD/I
Slide 6: We have a strong board and management
We have a strong board and management TSX.V: EU | OTCQB: ENCUF 6
Slide 7: Board of directors
Board of directors William M. Sheriff, MSc Richard M. Cherry, MSc, P.E. Executive Chairman Independent Director Mr. Sheriff was a pioneer in the uranium renaissance as Mr. Cherry is a veteran executive with over 40-years of experience in the co-founder and Chairman of Energy Metals Corp., which nucl
Slide 8: Alta Mesa Transaction Terms
Alta Mesa Transaction Terms US$120M total consideration, payable as: ▪ US$60M in cash ▪ Cash consideration funded via existing treasury + concurrent ▪ US$60M in a secured vendor convertible promissory note with EFR financing ▪ Closing of the transaction expected in [late Q4 2022] Energy Fuels note t
Slide 9: Acquisition of Alta Mesa
Acquisition of Alta Mesa: enCore positioned to become the leading company focused on US domestic uranium production ▪ Fully licensed past-producing In-Situ Recovery (ISR) uranium plant & existing resource located 80 miles from the Rosita plant and 75 miles from the Kingsville Dome plant presently ow
Slide 10: The Opportunity: Alta Mesa Asset Acquisition
The Opportunity: Alta Mesa Asset Acquisition In addition to a fully licensed past-producing ISR uranium operation: ▪ US$150M+ historically spent by Mesteña Uranium LLC and Energy Fuels ▪ ~5 million pounds of past production ▪ Radioactive Materials License with the Texas Commission on Environmental Q
Slide 11: History: Alta Mesa Project
History: Alta Mesa Project Exploration & Production ▪ 2006 – construction and commercial start ▪ Expanded in 2008 – increased production capacity to 2 mm pounds per year: • Developed a commercial molybdenum recovery circuit. (patent pending) • Increased ion exchange to 1.5 mm pounds/yr and drying ca
Slide 12: Alta Mesa Production History
Alta Mesa Production History Among largest US ISR mines, operating until uranium prices depressed post-Fukushima 21st Century US ISR Production Historic Operating Performance 24 1,200 $60 22.0 22 1,067 Cash Flow from Operations (US$M) Uranium Production (klbs U3O8) 20 1,000 $50 Historic Production (
Slide 13: enCore: post transaction production pipeline
enCore: post transaction production pipeline TSX.V: EU | OTCQB: ENCUF 13
Slide 14: Executing the strategy
Relocating the filter press to Rosita Executing the strategy Below: Opening an elution column at Rosita Investor Tour at Rosita Rosita Plant Completion Left: William M. Sheriff, Executive Chairman TSX.V: EU | OTCQB: ENCUF 14
Slide 15: South Texas production highlights
South Texas production highlights 3 Fully licensed, constructed 3.6 million pounds U3O8 per and 100% owned production year combined capacity facilities: Rosita, Kingsville Dome, Alta Mesa Production targeted for 2023 with Production expansion potential satellite feed to the Rosita Central with minim
Slide 16: Phase 1: Texas uranium near-term production
Phase 1: Texas uranium near-term production Three project areas with central plant and satellite feed: ▪ Rosita Central Processing Plant: Modernization Complete with planned production 2023 ▪ Alta Mesa Processing facility ▪ Kingsville Dome Processing facility Texas has significant growth upside ▪ 47
Slide 17: Phase 2: Dewey-Burdock project
South Dakota Phase 2: Dewey-Burdock project Edgemont uranium district in southwest South Dakota, approximately 60 miles from Cameco’s Crow Butte mine in Nebraska Mineral rights and surface rights covering approximately 16,960 acres and 12,610 acres, respectively Well served by infrastructure: Sixtee
Slide 18: Robust project economics
Dewey-Burdock, South Dakota Robust project economics 16 years 2019 PRELIMINARY ECONOMICS ASSESSMENT Mine Life (incl. 2 year ramp-up) ▪ Initial capital costs of US$31.7m Annual Production 1.0 Mlbs/yr is ‘sector leading’ for a project of this size LOM Production 14.3 Mlbs ▪ Pre-tax IRR of 55% at US$55
Slide 19: Phase 3: Gas Hills project
Wyoming Phase 3: Gas Hills project NI 43-101 COMPLIANT ISR URANIUM DEVELOPMENT IN RESOURCE A HISTORIC DISTRICT Located in Fremont and Natrona Counties, WY Estimated Measured and ▪ Wyoming has long history of successful Indicated U3O8 mineral ISR operations and is an Agreement resource: 7,705,610 lbs
Slide 20: Gas Hills ISR project
Wyoming Gas Hills Mine Life 7 years ISR project Annual Production 1.0 Mlbs/yr LOM Production 6.5 Mlbs 2021 PRELIMINARY ECONOMIC ASSSSMENT RESULTS Initial Capital Costs US$26.0M (US$3.99/lb) Potential satellite project to Dewey Burdock ISR Project Cash Operating Costs US$11.52/lb - Plant and well fie
Slide 21: Phase 4: Dominant land position in New Mexico
New Mexico Phase 4: Dominant land position in New Mexico MOST PROPERTIES IDENTIFIED AS AMENABLE TO ISR, CONSISTENT WITH ENCORE’S ‘ISR FIRST’ STRATEGY New Mexico’s Grants Uranium District Over 400 Mlbs of unmined has produced ~350 Mlbs U3O8, or mineralization has been identified nearly 40% of all ura
Slide 22: Crownpoint and Hosta Butte project
A view of Laramide’s processing facility site on Section 24 New Mexico Crownpoint and Hosta Butte project A large ISR-amenable project that hosts an estimated 26.6 Mlbs Indicated mineral resource (12.68Mt at 0.105% eU3O8) and 6.1 Mlbs Inferred mineral resource (2.76Mt at Crownpoint and Hosta Butte C
Slide 23: enCore Energy: investment summary
enCore Energy: investment summary Path to Production Phased Expansion Clean, Reliable Energy Funded to planned 2023 3.6 mm pounds/yr production Favorable conditions for production; Rosita Plant with low potnetial with ability to domestic uranium market capex to increasing capacity increase capacity;
Slide 24: Advancing to become the next leading producer of American Uranium
Advancing to become the next leading producer of American Uranium. TSX.V: EU | OTCQB: ENCUF encoreuranium.com info@encoreuranium.com enCore Board and Management at Rosita Processing Plant 778.383.6746 TSX.V: EU | OTCQB: ENCUF 24
Slide 25: Other assets
Other assets ▪ Investing in new technology: Significant ownership (34%) in Group 11 Technologies, working to revolutionize environmentally-friendly mineral extraction of other metals by combining two proven technologies; in-situ recovery with environmentally-friendly solvents; ▪ Exclusive access to
Slide 26: Pathway to production assets
enCore Energy resources Pathway to production assets Rosita Central Processing Plant, Texas Currently under development and modernization Completion date Q3/2022 NI 43-101 Mineral Resources Resource Category Attributable U3O8 (M lbs.*) TOTAL Measured & Indicated Mineral Resource 93.4 TOTAL Inferred
Slide 27: NI 43-101 mineral resources: Other assets
NI 43-101 mineral resources Other assets Marquez-Juan Tafoya Project, New Mexico2 Project Million Tons Grade eU3O8% Attributable U3O8 (M lbs.*) Indicated mineral resource (Minimum GxT = 0.60) 7.10 0.127 18.10 Juniper Ridge Project, Wyoming13 Project Million Tons Grade eU3O8% Attributable U3O8 (M lbs
Slide 28: US uranium sector renaissance
US uranium sector renaissance Bi-Partisan Support Domestic Supply Needed Department of Energy Nuclear Fuel 60% of US uranium flows through Russia Strategic Uranium Reserve 2020 Energy Act: funding 3 • Bi-partisan Infrastructure Law 1: and is “no longer a trustworthy source of $6Bn Nuclear Credit Pro
Slide 29: In-Situ Recovery (ISR): environmentally superior & economically competitive
In-Situ Recovery (ISR): environmentally superior & economically competitive ISR uses injection wells which add oxygen and carbon dioxide 1 creating a lixiviant solution; uranium dissolves into the solution Recovery wells pump the solution back to the surface to a processing facility 2 Monitoring wel
Slide 30: In-Situ Recovery and central processing plant
In-Situ Recovery and central processing plant TSX.V: EU | OTCQB: ENCUF 30
Slide 31: enCore Energy in the nuclear fuel cycle
enCore Energy in the nuclear fuel cycle TSX.V: EU | OTCQB: ENCUF 31
Slide 32: Global uranium supply
Global uranium supply Uranium Production U.S. uranium supply to commercial nuclear reators (1950-2017) By Country (2019) Million pounds U3O8 Kazakhastan, 6.1% Canada, and 5.3% 7.3M 80 Australia produce 6.4M Nearly 70% of the 5.6% 70 world’s uranium. 6.7M 60 Kazakhstan 6.5% 42.1% 42.1% 7.7M 50 Canada
Slide 33: Global uranium & nuclear environment
Global uranium & nuclear environment Uranium supply in a ~200 nuclear reactors under construction or planned – net deficit position an increase of more than 40% of current operating nuclear fleet.1 “Global realignment away from Russia in the nuclear fuel supply chain…new emphasis on western, and in
Slide 34: References
enCore Energy References 1. NI-43-101 Technical Report, Crownpoint and Hosta Bute 9. Behre Dolbear & Company (USA) Inc., 2011, Technical Report P. (Terry) McNulty. P.E, D.Sc., T.P McNulty and Associates Uranium Project, McKinley County, New Mexico, USA on the West Largo Project of Uranium Resources
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