Encore Energy Corp. · TSXV:EU
Encore Energy — Investor Presentation (April 2023)
40 slides from Encore Energy's investor presentation, Apr 11, 2023
Slide 1: Fueling the Future: Domestic Uranium in the USA
Fueling the Future: Domestic Uranium in the USA April 2023 NYSE American:EU | TSX.V:EU encoreuranium.com
Slide 2: Disclaimer
Disclaimer ©2023 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
enCore Energy: Fueling the Future Reliable, responsible domestic uranium production in 2023 South Texas Focus: Rosita, Advanced Assets: US In-Situ Recovery: Uranium Alta Mesa & Kingsville Dome Production Pipeline Extraction process with proven Uranium Processing Plants 93.4 Mlbs in the M&I category,
Slide 4: enCore Energy: Fueling the Future
Uranium Spot Price (USD$) enCore Energy: 150 FUELING THE FUTURE 100 URANIUM Fully funded uranium production strategy to provide clean, reliable 50 and carbon-free domestic energy 0 enCore’s Goal: 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 To become a 5 million pounds U3O8 producer in 5 y
Slide 5: enCore corporate summary
NYSE American:EU | TSX.V:EU enCore corporate Market Capitalization (@$2.04USD) $ 292,028,592 USD summary Shares Issued & Outstanding 143,151,271 Warrants 37,317,781 Options 7,095,071 Fully Diluted 187,536,957 Debt1 $ 60.0 mm USD Note: Uranium Purchase Contract (net value) $ 2.5 mm USD 1. Promissory
Slide 6: We have a strong board and management
We have a strong board and management NYSE American:EU | TSX.V:EU 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: Management
Management Peter Luthiger Gregory Zerzan Carrie Mierkey, CPA Gordon Peake Chief Operating Officer Chief Administrative Officer and Chief Financial Officer Director Lands General Counsel Mr. Luthiger brings over 35 years Ms. Mierkey is a Certified Public Mr. Peake previously served as of in-situ reco
Slide 9: 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 10: enCore Energy: Fueling the Future
enCore Energy: FUELING THE FUTURE Fully funded uranium production strategy to provide clean, reliable and carbon-free domestic energy enCore’s Goal: To become a 5 million pounds U3O8 producer in 5 years NYSE American:EU | TSX.V:EU 10
Slide 11: Uranium Supply & Demand Forecast
250 Million lbs U3O8 200 Uranium Supply Gap (Required New Production) Supply & 150 Demand $51 Forecast 2 100 Historical Ux Price1 $25 Established Production 50 1 Source: Historical Ux Weekly Prices, UxC.com 2 Source: Uranium Market Study 2022 Issue 4, TradeTech, LLC NYSE American:EU | TSX.V:EU 11
Slide 12: enCore Energy in the nuclear fuel cycle
enCore Energy in the nuclear fuel cycle NYSE American:EU | TSX.V:EU 12
Slide 13: 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 14: enCore: production pipeline
enCore: production pipeline GOALS : 3 million pounds U3O8/year production rate by Year 3; 5 million pounds U3O8/year production rate by Year 5 NYSE American:EU | TSX.V:EU 14
Slide 15: South Texas
South Texas ▪ A prolific US district for sandstone-hosted ISR production with historic production of ~80 million pounds ▪ Most progressive permitting and production jurisdiction in the US ▪ 47 identified deposits within ~60 million pounds of in-situ mineralization remaining ▪ The USGS estimates the
Slide 16: South Texas operations
South Texas operations 3 Fully licensed, constructed 3.6 million pounds U3O8 per and 100% owned production year combined capacity; 3 year facilities: Rosita, Kingsville production goal of 3 million Dome, Alta Mesa pounds/annually Roita production targeted for 2023 4 uranium sales contract in with sa
Slide 17: Rosita Uranium Processing Plant, South Texas
Rosita Uranium Processing Plant, South Texas ▪ One of enCore’s key assets in advancing production in 2023, the plant is located ~60 miles west of Corpus Christi, Texas and covers over 3,500 acres of mineral rights and plant facilities; ▪ A fully licensed ISR production facility with a production cap
Slide 18: Alta Mesa Uranium Processing Plant: Production planned for Q1 2024
Alta Mesa Uranium Processing Plant: Production planned for Q1 2024 ▪ Key enCore asset to advance production capacity in 2024; ▪ Fully licensed past-producing plant & existing resource located 80 miles from the Rosita Plant and 75 miles from the Kingsville Dome Plant ▪ Total operating capacity of 1.5
Slide 19: 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 20: Preliminary project economics
Dewey-Burdock, South Dakota Preliminary 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
Slide 21: 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 22: 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 23: 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 million pounds of has produced ~350 million pounds unmined mineralization has been U3O8, or nearly 40% o
Slide 24: 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 million pounds Indicated mineral resource (12.68Mt at 0.105% eU3O8) and 6.1 million pounds Inferred mineral Crownpoint and Hosta Butte C
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; ▪ Investment in Nuclea
Slide 26: enCore Energy: investment summary
enCore Energy: investment summary Phased Expansion Clean, Reliable Energy Path to Production 3.6 million pounds/yr Funded to planned 2023 Favorable conditions for production potential with production; high grade ISR domestic uranium market ability to increase capacity; resources to fuel the future w
Slide 27: Advancing to become the next leading producer of American Uranium
Advancing to become the next leading producer of American Uranium. enCore Board and Management at Rosita Processing Plant www.encoreuranium.com info@encoreuranium.com 778.383.6746 NYSE American:EU | TSX.V:EU 27
Slide 28: 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 29: Timelines for Supply Shortage
150 6 100 URANIUM Timelines for 7 10 Supply 5 50 Shortage 4 8 Events in the 2 3 9 1 Uranium March 2007-June 2009 Sector: Financial Crisis 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Uranium Spot Price (USD) History of Events 1. April 2003 McArthur River Mine Flood 6. February 2007 Ranger Min
Slide 30: The nuclear industry
The nuclear industry Strong public and private backing for development of Small Modular Reactors (SMRs) ▪ A key part of the Department of Energy’s goal to develop safe, clean, and affordable nuclear power options. 1 ▪ A multi-year cost-shared funding opportunity was issued to support innovative, dom
Slide 31: 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 32: United States Production History
United States Production History Among largest US ISR mines, operating until uranium prices depressed post-Fukushima 21st Century US ISR Production 24 22.0 22 Historic Production (Mlbs U3O8) 20 18 16 14 12 11.1 10 8 6 4.6 4 2.9 2.8 2 1.3 0.7 0.6 0.4 0 Smith Ranch Crow Butte Alta Mesa Lost Creek Will
Slide 33: enCore Energy: Fueling the Future
enCore Energy: FUELING THE FUTURE Fully funded uranium production strategy to provide clean, reliable and carbon-free domestic energy enCore’s Goal: To become a 5 million pounds U3O8 producer in 5 years NYSE American:EU | TSX.V:EU 33
Slide 34: Windmills vs nuclear energy
Windmills vs nuclear energy 300m 13-15MW 9MW 200m 7MW 1750 MW nuclear 4MW power plant 2MW 100m 1.2MW 1-12KW 0.5MW 19th C 1990 1995 2000 2005 2010 2015 2025 Sources: Various, Bloomberg New Energy Finance NYSE American:EU | TSX.V:EU 34
Slide 35: Nuclear energy plant vs wind power
1 nuclear energy plant vs wind power NYSE American:EU | TSX.V:EU 35
Slide 36: Safe nuclear power
Safe nuclear power Comparative death rates per unit of electricity production Brown coal 32.72 Coal 24.62 Oil 18.43 Biomass 4.63 Gas 2.82 Hydropower 1.3 Wind 0.04 Nuclear 0.03 Solar 0.02 0 5 10 15 20 25 30 Source: Markandya & Wilkinson (2007); Sovacool et al. (2016); UNSCEAR (2008; & 2018) OurWorldI
Slide 37: In-situ Recovery and Central Processing Plant
In-situ Recovery and Central Processing Plant NYSE American:EU | TSX.V:EU 37
Slide 38: Pathway to production assets
enCore Energy resources Pathway to production assets NI 43-101 Mineral Resources Alta Mesa Project, South Texas18 Resource Category Million Tons Grade eU3O8% Attributable U3O8 (M lbs.*) Indicated mineral resource (ISR) 1.57 0.109 3.41 Inferred mineral resource (ISR) 7.00 0.120 16.79 Dewey Burdock Pr
Slide 39: 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 GT = 0.60) (non-ISR) 7.10 0.127 18.10 Juniper Ridge Project, Wyoming13 Project Million Tons Grade eU3O8% Attributable U3
Slide 40: References
enCore Energy References 1. NI-43-101 Technical Report, Crownpoint and Hosta Bute 9. Behre Dolbear & Company (USA) Inc., 2011, Technical Report (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 Inc