Encore Energy Corp. · TSXV:EU
Encore Energy — Investor Presentation (September 2023)
40 slides from Encore Energy's investor presentation, September 2023
Slide 1: Domestic Uranium in the USA
Domestic Uranium in the USA September 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: America's Clean Energy Company
enCore Energy: America’s Clean Energy Company™ 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 Central ISR Uranium 74.42 Mlbs - M&I catego
Slide 4: enCore Energy: America's Clean Energy Company
enCore Energy: Uranium Spot Price (USD$) 150 America’s Clean Energy Company™ 100 URANIUM Fully funded uranium production strategy to provide clean, reliable and carbon-free domestic 50 energy enCore’s Goal: 0 Establish an annual 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 production rate
Slide 5: enCore corporate summary
NYSE American:EU | TSX.V:EU enCore corporate Market Capitalization (@$2.53USD) $ 366,870,318 USD summary Shares Issued & Outstanding Warrants 145,008,031 37,234,548 Options 9,202,672 Fully Diluted 191,445,251 Debt1 $ 60.0 mm USD Note: 1. Promissory Note converts into enCore shares @ $2.91 USD at Ura
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, PE Executive Chairman 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 nuclear industry,
Slide 8: Management
Management Peter Luthiger Chief Operating Officer Mr. Luthiger brings over 35 years of in-situ recovery (ISR) and conventional uranium production, processing, exploration, radiation safety and environmental management experience within the uranium fuel cycle. He previously served as Energy Fuels’ Di
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 $6B Nuclear Credit Prog
Slide 10: enCore Energy: America's Clean Energy Company
enCore Energy: America’s Clean Energy Company™ Fully funded uranium production strategy to provide clean, reliable and carbon-free domestic energy enCore’s Goal: Establish an annual production rate of 3 million pounds U3O8 per year by the end of 2026 and 5 million pounds U3O8 per year by the end of
Slide 11: Uranium Supply & Demand Forecast
250 Million lbs U3O8 200 Uranium Supply Gap (Required New Production) Supply & 150 Demand $51 Forecast 100 Historical Ux Price1 $25 Established Production 50 1Source: Historical Ux Weekly Prices, UxC.com 2Source: 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 creating a lixiviant solution; uranium dissolves into the solution Recovery wells pump the solution back to the surface to a processing facility Monitoring wells su
Slide 14: enCore: production pipeline
enCore: production pipeline GOAL : 3 million pounds U3O8/year production rate by 2026 5 million pounds U3O8/year production rate by 2028 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 with ~60 million pounds of in-situ mineralization remaining ▪ The USGS estimates the po
Slide 16: South Texas operations
South Texas operations 3 Fully licensed, constructed 3.6 million pounds U3O8 per and 100% owned Central ISR year combined capacity; 3 year Uranium Processing Plants production goal of 3 million (CPPs): Rosita, Kingsville Dome, pounds/annually Alta Mesa Rosita CPP production targeted for 4 uranium sa
Slide 17: Rosita Central ISR Uranium Processing Plant (CPP)
Rosita Central ISR Uranium Processing Plant (CPP) South Texas ▪ One of enCore’s key assets – licensed and constructed - advancing to production in 2023. ▪ Located ~60 miles west of Corpus Christi, Texas; covers over 3,500 acres of mineral rights and plant facilities. ▪ A fully licensed CPP with a pr
Slide 18: Alta Mesa Central ISR Uranium Processing Plant (CPP)
Alta Mesa Central ISR Uranium Processing Plant (CPP) South Texas ▪ One of enCore’s key assets – planned for production start in 2024. ▪ Fully licensed CPP & existing resource located 80 miles from the Rosita CPP and 75 miles from the Kingsville Dome CPP. ▪ Total operating capacity of 1.5 million pou
Slide 19: Dewey-Burdock Project
Dewey-Burdock Project South Dakota 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 16 miles from Edgemont, serviced by two-lane,
Slide 20: Dewey-Burdock Project
Dewey-Burdock Project South Dakota 2019 PRELIMINARY ECONOMICS ASSESSMENT ▪ Initial capital costs of US$31.7m is ‘sector leading’ for a project of this size ▪ Pre-tax IRR of 55% at US$55/lb long-term uranium Mine Life 21 years price (post-tax IRR of 50%) (incl. 2 year ramp-up) Annual Production 1.0 M
Slide 21: Gas Hills Project
Gas Hills Project Wyoming ▪ Located in Fremont and Natrona Counties, Wyoming ▪ Wyoming has long history of successful ISR operations and is an Agreement state with positive permitting timelines ▪ 100% ownership; road, power, natural gas and water access available nearby ▪ Historic cumulative product
Slide 22: Gas Hills Project
Gas Hills Project Mine Life 7 years Wyoming Annual Production 1.0 Mlbs/yr LOM Production 6.5 Mlbs 2021 PRELIMINARY ECONOMIC ASSSSMENT RESULTS15 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 f
Slide 23: Crownpoint and Hosta Butte Project
Crownpoint and Hosta Butte Project New Mexico • A dominant land position in New Mexico – long term opportunity • New Mexico’s Grants Uranium District has produced ~350 million pounds U3O8, or nearly 40% of all uranium mined in the US and is one of the largest uranium districts in the world4 • A ‘che
Slide 24: Crownpoint and Hosta Butte Project
A view of Laramide’s processing facility site on Section 24 Crownpoint and Hosta Butte Project New Mexico ▪ Crownpoint is permitted under Laramide Resources Ltd.’s Nuclear Regulatory Commission License to recover up to 3 million pounds per year Crownpoint and Hosta Butte Current Mineral Resource Est
Slide 25: Other assets
Other assets ▪ Exclusive access to privately-held databases of world-wide uranium data. ▪ Non-core asset divestment strategy. ▪ Investing in new technology: Group 11 Technologies, working to revolutionize environmentally-friendly mineral extraction of other metals by combining two proven technologie
Slide 26: enCore Energy: investment summary
enCore Energy: investment summary Path to Production Phased Expansion Clean, Reliable Energy 2023 and 2024 production in 3.6 million pounds/yr Favorable conditions for South Texas; high grade ISR production potential with ability domestic uranium market resources to fuel the future to increase capac
Slide 27: America's Clean Energy Company
America’s Clean Energy Company™ www.encoreuranium.com info@encoreuranium.com 778.383.6746 enCore Board and Management at Rosita CPP 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 Mine
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. ▪ A multi-year cost-shared funding opportunity was issued to support innovative, domes
Slide 31: Global uranium supply
Global uranium supply Uranium Production U.S. uranium supply to commercial nuclear reactors (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 42.1% 6.5% 42.1% 7.7M 50 Canad
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: America's Clean Energy Company
enCore Energy: America’s Clean Energy Company™ Fully funded uranium production strategy to provide clean, reliable and carbon-free domestic energy enCore’s Goal: Establish an annual production rate of 3 million pounds U3O8 per year by the end of 2026 and 5 million pounds U3O8 per year by the end of
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: 1 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 Texas16 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 Juniper Ridge Project, Wyoming11 Project Million Tons Grade eU3O8% Attributable U3O8 (M lbs.*) Indicated mineral resource (non-ISR) 5.14 0.058 6.01 Inferred mineral resource (non-ISR) 0.11 0.085 0.18 Aladdin Project, Wyoming14 Project Million Tons Grade eU3O8
Slide 40: References
enCore Energy References 1. S. Hall, M. Mihalasky, K. Turek, J. Hammarstrom & M. 25, 2008, Uranium Resources Inc., “Ore Reserve 13. Technical Report on the Aladdin Uranium Project, Crook Hannon“Genetic and grade and tonnage models for sandstone- Calculation Sheet 3, T14N R10W Section 27”, in County,
enCore Energy — Investor Presentation (September 2023) on 6ix