Skyharbour Resources Ltd. - Exploring for Uranium in the Prolific Athabasca Basin

0:12 Hi, everyone. Thank you for joining Sky Harbor Resources live investment summit today hosted by 6. Director, president and CEO Jordan Trimble is gonna walk you through a corporate presentation and then we will be accepting questions. As a reminder, you can submit your questions in the Q&A panel in the right hand side of the screen. Today's presentation is going to also be available in the handouts tab for you to download if you'd like to follow along. Without further ado, I'm going to hand it over to Jordan to kick things off. Thank you, Jane,

0:43 and welcome everyone. Thank you for taking some time out of your afternoon today to listen to the Sky Harbor presentation, our first presentation with 6. Looking forward to it. I guess this is the new norm now, having to do these on video conferences, used to doing them in conferences or on roadshows, but nonetheless excited to be presenting our story. For those of you not familiar with Sky Harbour, Sky Harbour is a high-grade Uranium exploration and early-stage development company. We've been actively building a portfolio of Uranium assets in the Athabasca Basin of northern Saskatchewan over the last 7-years. 7-years ago, I came in to run the company as the President and CEO and really at the time it was just a shell.

1:33 We had a vision to build a new Uranium company and to go into the Athabasca Basin and become the next high-grade discovery story. The company's grown a lot since then. I'll go through what we've done, what we're doing, the strategy, I'll talk about the people running the company, I'll talk about the Uranium market and I'm happy to follow up on that topic. It's something we could spend hours discussing. A lot has happened in the last year, especially on the supply side. And then I'll finish off with some Q&A. And again, feel free to ask any questions that you have. This presentation will be available after. And I'll do my best to get through all of the questions at the end.

2:20 We'll go on here to forward-looking statements and the disclaimer. I'm sure you've seen this before. We'll get right into it here. Investment highlights. I like to start with focusing on the 3 core pillars of the company and the key ingredients to success with any junior mining company. First and foremost, the people, the management team, the strategic partners, of which we have 2 larger strategic partners, one of which is Denison Mines, New York listed Uranium development company, they're our largest strategic shareholder. And another strategic partner and industry leader, Arrano, previously known as Arriba, they're earning in on one of our projects right now, which I'll talk a little bit more about. Timing with the Uranium market, where are we at in this Uranium cycle?

3:10 We've seen a very volatile market over the last, in particular, 10-years since Fukushima in 2011, But it looks like we are now on the up. We've seen the bottom put in with the Uranium price back in 2016 when it traded below $18 a pound, one of the lowest it's ever traded at in inflation adjusted terms. And we've now seen a pretty steady tick higher, although we're still trading at relatively low prices. And I'll talk a bit more about that. And then I'll finish off with the projects, the asset base that we built, 6 prospective exploration projects scattered throughout the Athabasca Basin at various stages of exploration and early stage development.

3:55 We do have a dual-pronged strategy. First and foremost, we are a high-grade Uranium exploration and discovery story. We're focused on making new discoveries at our flagship Moore Lake project, I'll talk about that. But secondary to that, we do act as a prospect generator. And so what we do is we acquire projects, we do some exploration and some work on them, and we basically advance them to a point where we can bring in partner companies to fund exploration and develop the projects going forward. We've announced 3 deals thus far, most recently a new company out of Australia that's going to be earning in on one of our projects. Again, I'll talk a bit more about that as we get work our way through the presentation here.

4:42 So we'll start with the first letter of that acronym PTP and that's the people. So just to introduce everyone to the management team and the board, I run the company, president and CEO as I mentioned came in about 7-years ago. I come from an entrepreneurial and financial background. I was previously the corporate development manager for a gold company in Ontario called Bayfield Ventures. We had success with Bayfield and ultimately sold that company to New Gold in 2014. And that's around the time I started running Sky Harbor. I'm a CFA charter holder. I'm currently on the board of directors here with the Vancouver Society. I've worked with several public companies and issuers over the various years and Sky Harbor here really has been my baby since 2013-2014.

5:31 Teamed up with a gentleman out of Saskatoon, Rick Kosmersky, or as we like to call him, Radioactive Rick, 40-year veteran in the Athabasca Basin. He lives in Saskatoon. Our geological team is based there. Rick was previously the exploration manager at Cameco Corp, senior geologist there. He left there in the late 90s and started running his own company, Uranium company called JNR Resources, which he went on to make several discoveries in before selling the company to Denison Mines back in 2012. Jim Pettit, the chairman, I've worked with Jim for over the last decade here. He ran Bayfield back in the day. He's the chairman of the board. David Cates, who is a director of Sky Harbor. Some of you are probably familiar with Dave. Dave is the President and CEO of Denison and Uranium Participation Corp. A very close working relationship with Dave and the team at Denison. Again, they're one of our largest strategic shareholders and we had acquired our flagship project, Moor Lake, from Dennison back in 2016.

6:36 You'll see Paul Matizek, a strategic advisor to the company, very well known in the mining industry, he's built and sold many mining companies, his biggest win being a Uranium company which he took from a $10M valuation in 2004 and sold it in 2007 for $1.8M. That company was Energy Metals. Joseph Gallucci. Joe just more recently joined the board. Joe is the head of mining investment banking at Laurentian Bank Securities. He has over 15 years of experience in the capital market, Canadian capital markets focused on mining. He's been directly involved in raising over 1 billion dollars for mining companies with a focus on Canadian companies. So he really does bring an extra layer of capital markets expertise to the board.

7:22 You'll just see here a few others that round out the board and the advisory board. One of the things I like to emphasize is that we have a good mix of management, capital markets, and technical expertise. And It's important to have focused technical expertise, people that know how to go out and make specific discoveries in the jurisdictions that you're looking for mineral deposits in. That's what we have with Rick and our team in Saskatoon. Just to quickly go over the cap structure for everyone, pretty straightforward, 93 million shares out. It trades around a 15 to $16 million market cap Canadian. You'll see here at the bottom, In addition to the management and strategic partners, I'd like to emphasize and make note of some of the strategic shareholders, management and insiders.

8:08 We have a lot of stock. I've continued to purchase shares in the market in particular over the last year. I see the value proposition right now being stronger than ever for this company. Denison Mines, you'll see their America Tuesday, the KCR fund, OTP, which is the largest bank in Hungary. They have a resource fund. They're a fairly large shareholder. Sage and Cove Partners run by Mike Elkin and Tim Tullary in the US, become a very large shareholder in the last year. And several other institutional and family office investors. I will just note we did close the financing in the summer months with the generalist fund. So we're fully funded for our exploration plans coming up in 2021.

8:56 So now on to the next section of the presentation. And again, I'm happy to take more questions because this does usually require a little more than a few minutes, but just talking about the uranium market and obviously as a result of that, talking about nuclear and Nuclear energy is the only source of CO2 emissions-free baseload power, and that is a very important point to recognize. It's low-cost energy, it provides grid and price stability, and it anchors local communities with jobs in a tax base. If you look at other renewable sources of green energy, wind, solar, geothermal, for the most part, these are intermittent, they're not baseloads, they're not as reliable. Nuclear can operate at an over 90% capacity factor, where most renewables range between 10% to 50%. And so that's why nuclear, especially in the context of this macro trend we see going on here, climate change, curbing climate change, improving air quality. This is a major macro trend we're seeing play out globally right now.

10:07 Nuclear has to play an important role in that. And I think we will see that. I'll just draw your attention to this little image over here with this truck. And what this is, is an SMR reactor and this has become a more topical point here in the media over the last several years and in particular, just more recently with the US elections And just in the last week here, the UK announcing a 12 billion pound climate change budget. A big part of that includes SMRs. They have an agreement with Rolls Royce to design and commercialize these SMRs. I think this will be the way of the future for nuclear and uranium demand in the Western world. Both the Biden and Trump administrations are for small modular reactors.

10:59 We just a year ago in Canada here saw an MOU signed between several provinces to fund the development of these SMRs. So keep an eye out for that. And really what they are, as you can see in the image there, small modular reactors, the name implies. They're standardized reactors, smaller ones, up to 300 to 400 megawatts. A typical large reactor, you're looking at 500,000 to, in some cases, 1.5 gigawatts. And so these are smaller, more standardized reactors, lowers the cost, and I think that that'll be an important source of uranium demand going forward. So why nuclear? Getting back to the benefits of nuclear, I like to use this example as a real-world example of why nuclear is important and why it's here to stay and I think will continue to grow. If we look at the 2 countries, Germany and France, we have a partnership with Iran. As I mentioned earlier, they're based in Paris. That's France's largest uranium mining and nuclear fuel cycle company. France generates over 70% of its electricity from nuclear. It's really been kind of the poster boy, if you will, of nuclear energy and the benefits of nuclear energy for a number of decades.

12:18 Germany has decided to go in the other direction. They've sunk over 160 billion euros into this new green energy plan using solar and wind and other renewables. The problem is, is they've made very little progress in reducing carbon emissions And actually on a per kilowatt carbon emission basis, they're almost 10 times that of neighboring France. While you've had that happen, you've also had the electricity costs skyrocket in Germany. And now you have France, the electricity costs there, some of the lowest in continental Europe, and about half of that in neighboring Germany. So you've had to turn back on lignite coal plants, you've had carbon emissions going up, and you've had electricity emissions going up as well. So this is just a point in case to why nuclear is important, especially in the context of major electricity generation, reliable electricity generation for urban centers and populated areas.

13:15 And in the context of this macro trend we're seeing to going carbon neutral. So this is, I'd say, the key takeaway slide for the uranium market. Here are the numbers for you. So global demand for electricity expected to grow by 76% through 2030. Again with the advent of electric vehicles and just more and more electrification that we're seeing globally, I expect that number could increase. You'll see here the number of operable reactors, over 440 operating reactors globally, over 50 reactors under construction and hundreds more that are ordered, planned and proposed. And again, this does not include the advent of SMRs coming on.

14:02 As far as the supply demand goes, you have about 180, just over 180Mlbs of annual demand. It's growing at a relatively steady clip. What's interesting about this metal and really I think the highlight point for a higher price going forward is the supply side. We've seen a major supply side response play out over the last 3 or 4-years. It started because of the low prices of the commodity. We saw mines shut down, we saw project deferrals and we saw this decrease from 2016 of £163M of primary mine supply, all the way down to about what was expected to be pre-pandemic £142M. So a major shortfall. Now with the pandemic in April, in particular April, May, we saw at one point almost 50% of global primary mine supply shut down. So this supply curtailment and production response, supply side response that we've seen play out was exacerbated by the pandemic. And it's important to note that we're heavily reliant on a supply side that is concentrated both geographically and geologically.

15:16 You have certain countries like Kazakhstan, for example, that contribute a 40% of global primary mine supply and a number of larger mines that account for a good chunk of global production. So the risks to the supply side, especially when you get a black swan event like a pandemic or some other supply shock, the risks to the supply side far outseed the risks to the demand side. We've seen a relatively sticky demand side, relatively unaffected by the pandemic. So it's important to note that going forward, because when you do get something like what we've seen this year, it doesn't take a lot for a lot of the primary mine supply to get hit. I'll draw your attention to this chart just at the bottom right here. This is a very important chart to keep in mind.

16:04 Most Uranium is contracted, so there's 2 prices. There's the spot price, which is what a lot of investors look at currently trading around $30 a pound, but then there's also the contract or the long-term price and That's what most nuclear utilities actually buy their material through. What this chart shows is the covered and uncovered requirements. How much Uranium and fuel requirements are currently covered or will be covered by existing contracts. What's important here is you can see the amount of uncovered requirements increasing drastically over the next decade. By 2025-2026 we see about 50% of the existing contracts rolling off. So what that means is these utilities will have to come back to the market and they will have to contract, enter into new contracts.

16:55 This historically has been one of the main drivers for this commodity prices. When you see an influx of new utility contracting, they typically will buy at a higher price to lock in longer term secure supply. We've seen that be relatively dormant. And there's a number of reasons for that. Happy to discuss in the q&a or afterwards. But there's a number of reasons why we've seen a relatively dormant contract market over the last several years. We are now finally starting to see some new RFP, some new utility interest coming back into the market. And if you look at any of the last previous bull, Uranium bull markets, one of the key drivers going into that has been new utility contracting. And I expect that we will see that in the coming years, if not next year.

17:43 By UXC, it's one of the Uranium market consulting firms. UXC has estimates of 1.5Bnlb of Uranium that will not be covered by contracts through 2035. So a major, and again this is what this chart highlights, a major amount of material, a fuel requirements for existing and new reactors coming on the grid that do not know where they're ultimately going to get their uranium from. So we'll have to see this contracting pick back up here sooner than later. Just to go through the demand side globally, just shows you some of the major key players and countries here. Really, at the end of the day, China has led, has been at the forefront of new reactor constructions and development over the, in particular in the last 10 years, You'll see there are 47 reactors operating, 12 under construction and over 100 planned, ordered and proposed.

18:41 I will note these reactors in China, the ones under construction, the ones that have been built, are very large reactors, nuclear reactors. They consume a lot of Uranium on an annual basis and they have a long life. So they're in operation for many decades. So as we see more of these reactors come online, we will see that continued strength in the demand side. Now, just going over to the US, this is very topical right now. And again, I'm happy to talk a bit more about this. The US and the uranium mining industry, nuclear industry in the US has been at the forefront of a lot of media recently. It started back with what was called the Section 232 investigation, where they were looking into the security of supply of uranium into the US. The US, 20% of its electricity is from its 96 operating reactors. That's, by the way, 55% of its emissions-free electricity generation is from nuclear.

19:44 However, they have to now import almost 100% of their fuel requirements. So this was deemed or was investigated as a potential national security issue, especially given the fact that almost 40% of it comes from ex-Soviet States, Russia, Kazakhstan, and Uzbekistan. And out of all of this, we've seen Section 232 come to an end. That was followed by what was called the Nuclear Fuel Working Group. And we've just recently now seen kind of the tail end of that and some resolution, including $150M a year budget for a domestic reserve. And I think we're going to see more. It's one of the few topics in the US that has bipartisan support right now. I did a Q&A on privateplacements.com recently talking about what I saw happening

20:37 with the election and how it would affect the Uranium market. The bottom line is I think it didn't matter what candidate was going to get in. Trump has been pro-nuclear and would continue to be pro-nuclear as we saw with this, won the Reserve $150M a year in the Reserve budget and also the extension and amendment to the Russian suspension agreement. We just saw some resolution there where they're basically preventing a bunch of Uranium coming in from Russia. It's been the case over the last number of decades and they've now amended it slightly and expanded it another 20 years. Now this all bodes well for obviously US companies but it also bodes very well for Canadian Uranium companies as well.

21:27 We've always been, if you will, a breadbasket for the US for their nuclear and uranium requirements. And I think we will continue to see that now just looking at what is appears to be the likely outcome of this election with the Biden administration. I think it could even be more positive for uranium. We see Biden announcing a $1.7 trillion climate change plan. Within that, he focuses in on SMRs, on new advanced nuclear technologies. We will likely also see the US rejoin

22:03 the Paris Climate Agreement, which is positive for nuclear. So bottom line is I do see the US over the coming years, given that there's bipartisan support for nuclear, I do see the US there being somewhat of a nuclear renaissance, if you will, in the US, and that'll obviously be positive for North American Uranium companies. So just to wrap up the Uranium market, and again, this is, as I mentioned, I think one of the key takeaways on the supply demand side with this major supply side response playing out, you'll see here a chart, the aggregate impact of restricted primary supply. And again, this has just been exacerbated by the pandemic. We're now in the backdrop of 180 million pounds of demand, we're now expecting less than £120M of primary mine supply. So a major supply deficit that's forming and will continue for years to come. One of the key players here is Kazakhstan and KazAtomProm, which is the state-run Uranium mining company.

23:06 They were hit hard back in April and May. They had to curtail production. It'll be interesting to see most all their operations are ISR, so it'll be interesting to see how quickly they can ramp back up production over the next several years because they've been unable to carry out any wellhead development

23:25 for their ISR operations. I do expect to see a continued strain on the supply side. As a result of that, you have had producers like Cameco, and more recently like KazAtomProm, have to buy Uranium in the spot market to meet their contract requirements because they've had to curtail production. Keep an eye on that over the next several years. So moving on here to the Athabasca Basin and Sky Harbours project. So I'll just start with why the Athabasca Basin. For those of you not familiar with the Athabasca Basin, it's in northern Saskatchewan. Saskatchewan is consistently ranked in the top 5 mining jurisdictions to work in globally by the Fraser Institute.

24:12 It's one of the best places I've worked in having worked on a number of projects and companies across the country. The Athabasca Basin is the highest grade depository of Uranium in the world, by far, a factor of 10 to 20 times the average grade. To just simplify, you get 2 types of deposits. You'll see at this diagram at the bottom right here, you'll see the Athabasca sandstone, which represents a sedimentary rock overlaying the crystalline basement rock, or we just call it the basement rock, you'll see there's the deposit type of sandstone or unconformity sandstone hosted deposit. These deposits actually lie in the sediment or right between the basement rock and the sandstone. Our flagship project at Moore Lake, we have a small high-grade deposit which is right at the unconformity.

25:15 You'll see on the right side that the other type of deposit is a basement-hosted deposit. This is really what's interesting about the basin and the exploration and discoveries that have happened in the basin in the last 15-years is there's been a bit of a shift in the way we look for these deposits, looking now a little bit deeper into the underlying basement rocks, looking for the feeder zones that bring the mineralisation up to the unconformity in the sandstone. What's intriguing is a lot of the most recent discoveries like NextGen, Fission, Denison's Griffin deposit have been made in the underlying basement rock. For us at our flagship project, Moor Lake, this is what's really intriguing for us is that most of the exploration that's been carried out has been focused in the sandstone or for unconformity-hosted

26:09 deposits. Not a lot of drilling or exploration has taken place looking for high-grade deposits in the underlying basement rock. That's what we are now doing and I'll talk a little bit more about that as we get into the project section. But before I do, I just want to highlight this point here. If you look at the value of this rock, of this type of mineral deposit compared to other metals. It's really some of the most valuable mineral deposits you can find out there. 1% U308 is equivalent to 14g per tonne of Gold, almost 900g per tonne of Silver, 12% Copper, the list goes on. As I mentioned, at our flagship project, Moor Lake, we've intersected grades as high as 21% U308, that's almost 300g per tonne of Gold.

27:01 These are very rich mineral deposits, which makes it very exciting for an exploration company and its shareholders because you can go out there and if you manage to make a discovery and delineate a resource, you can prove up a very high-value resource relatively quickly and at a low cost. That brings me to my next point here on slide 16, talking about the Uranium exploration and discovery process in the Athabasca Basin. This is something that I like to highlight. There has been a shift in how we look for these mineral deposits, in particular in the last 20-years.

27:41 It used to be where you'd go out and you'd do some rudimentary geophysics and then you would go and drill diamond drill holes and hope that you hit the needle in the haystack. Not a very cost-effective and efficient way to make discoveries, but just in the last 15 or 20 years, We've seen some notable major discoveries made in the Athabasca Basin. You'll see a couple of charts at the bottom there with next-gen alpha fission, more recently ISO. There are more tools at our disposal now to go out and make these high-grade discoveries. New geophysics, for example, we've been utilizing drone-hosted geophysical surveys. That's what's given us our basement-hosted targets, refined our basement-hosted targets,

28:30 better understanding of the geochemistry and the indicator minerals, a better understanding of what we're looking for in particular in these basement rocks. This shows a map of the Athabasca Basin. This shows our portfolio of Uranium projects. As you'll see, we have about half a dozen projects scattered throughout the Athabasca Basin. I will note they're at various stages of exploration, some a little bit earlier stage than others, although we do have 2 projects in Moore, our flagship and Falcon Point that host significant amounts of Uranium mineralisation.

29:12 Falcon Point, South Falcon point, which you'll see at the bottom here, that has an NI43-101 resource. Our focus being at Moore Lake, our flagship project, we're just wrapping up a drill program there. We have some very high-grade mineralization working towards a made-in-resource estimate likely in 2021. I will note that this project portfolio it covers about 240,000 hectares of property in the Athabasca Basin. When we set out to build this company, one of our initial mandates was to take advantage of a depressed Uranium market. We did that by acquiring these at very attractive valuations. You'll see this portfolio we managed to acquire for less than CAD$6M, mostly stock and some cash.

30:06 Now what we're doing, and you'll see this with some of the other projects like Preston and East Preston, I'll just highlight, and North Falcon Point, we are now able to monetize some of these projects and act as a prospect generator, bringing in strategic partner companies like Orano, like Azencourt and more recently like Valor at our North Falcon project.

30:31 I'll start with the Moore Lake project. Again, this is our flagship and really the focus for the company. It's our most prospective project. It's where we've discovered high-grade Uranium mineralization and believe we have a lot more to find there. You'll see it's situated on the east side of the Athabasca Basin, proximal to about 15 kilometers east of Denison's Wheeler project. Again, a strategic partner of ours. You have the haulage road that goes up to MacArthur River that straddles the Western side of the project in between us and the Wheeler project. It's a big property, 36,000 hectares, 100% owned by Sky Harbor. Earlier I was talking about the different types of deposits in the Athabasca Basin. What's interesting, as I mentioned earlier about this project, is a lot of exploration and historical drilling.

31:26 As you'll see there, over 140,000m, mostly focused at what's called the Maverick corridor. It's a 4.5km long conductive corridor. Most of that drilling though was focused looking for sandstone or unconformity hosted deposits.

31:41 There's a couple of high-grade zones, you'll see some of the historical drill results here, 4% over 10m, relatively shallow for a basin deposit, but not a lot of drilling that was carried out into the underlying basement rocks. There really just weren't the targets or the ability to refine the targets deeper down in the underlying basement rocks. That's what we've done over the last several years and that's where the most recent drilling that we've carried out and will continue to carry out is focus. If I go over to slide 21, you'll see the 2020 drill programs that Moore carried out earlier this year had success. We feel like we've just scratched the surface to a much larger, higher grade zone in the underlying basement rocks. We're just completing a 2,500m program right now, results pending, and that's a key catalyst for us. I will say we're very happy with what we've seen. And again, this focus on the underlying basement feeder zones, they're relatively untested.

32:40 And again, based off of more recent discoveries that have been made in the base, and that is where you can find some of the best highest grade deposits in the Athabasca Basin. Now, outside of this main Maverick 0.25, you'll see here, let me just get this pencil working, this corridor that extends, this is a conductive corridor. This is about a 4km to 4.5km corridor. We've only systematically drill tested in previous operators, about half of that. You'll see here as we work our way up further up to the northeast, there's a lot of room for expansion along strike, but also at depth again in the basement rocks which again haven't been drill tested all that much over the last several decades. So very excited to continue exploring this project. We feel there's a lot more we can find there.

33:31 Look for news flow in the coming weeks and coming months on drill results and fully funded for a winter drill program in which we will want to follow up on some of the recent discoveries and high-grade mineralisation that we've been finding at that Maverick corridor. I'll just get into the last part of the presentation, talking a little bit about our prospect generation business and our other projects.

33:56 I think it's important to start here with our Preston Uranium project. This is a project that was actually the first project we had in the company back in 2013 and 2014. We did a fair bit of work on this project, reconnaissance exploration and some early-stage drilling back in 2014 and 2015. Then in 2016 and 2017, we were able to attract 2 partner companies, one of which Orano, again, industry leader based in Paris, and another company called As-in-Court energy. And what we managed to do was bring them in on an earn in option deal whereby in Arano's case, they can earn up to 70% by spending $8 million on the project over a 6 year period. They're about halfway through that you'll see the breakdown of the cash and the exploration expenditures.

34:49 And then shortly thereafter, in 2017, we brought in As in Court as a partner, again, similar structure to earn up to 70% of a third of the project area, I'll call it East Preston. And in order to do that, they have to spend $3.5 million in project consideration, $2.5 million in exploration and $1 million in cash, and they issued some shares as well. They're near complete that. They still have to make a $200,000 cash payment to Sky Harbor and complete a few hundred thousand dollars worth of exploration over the next several months. We expect to see some news flow out from our partner companies here and some guidance on exploration and plans going forward so keep an eye out for that. Just moving on here, South Falcon Point and the Falcon Point project. Now this is a topical for us is just a couple of weeks ago, we announced an LOI that we signed with an Australian company called Valor to earn, for them to earn in up to 80% at the North end of this project. You'll see the shaded area here.

35:57 So this is a project we own 100% of. As I mentioned earlier in the presentation, it does have a resource that on the south end of the project, we are keeping 100% of the southern part of the project, renaming itself Falcon Point. You'll see here a small resource near surface, lower grade but great resource expansion potential. We did do some drilling there a few years back, drilling a little bit deeper down to about 150m and were successful in delineating some higher-grade mineralisation at depth. That is a project though that we would like to find a partner company much like we did at North Falcon and over at Preston and East Preston. We are in negotiations with a few companies right now, so keep an eye out for news flow there. Going to the North Falcon Point project, And again, as I mentioned, this is topical given the recent news flow. So on October 22nd, we announced an LOI with a company Valor.

36:55 They're just completing an RTO listed on the ASX. As a part of the earn-in option, They can earn up to 80% of the project and in order to do that, they have to spend about $3.5M in exploration over a 3-year period, make just over $400,000 in cash payments to Sky Harbor and we get a big block of stock. It works out to a $1M worth of stock and at that point, they will have earned in 80%. I'm very excited to be working with this group. It's run by a very capable team out of Perth, a gentleman named George Bauck, who's built several multi-hundred million dollar mining companies over his tenure. He has a head geologist based in Saskatoon, Gary Billingsley, who I had the pleasure of meeting a few weeks back when I was out there visiting my team. He's a 40-year veteran in Saskatchewan. He knows the province very well.

37:51 So again, very excited to be working with this new partner company. And it will be adding to our news flow and our chances of exploration success over the coming years as they advance the North Falcon Point project. I won't get into too much detail on our other projects. Man Lake and Yurchasen are 100% owned projects that we own again much like Preston, East Preston and Falcon Point. We are looking to find option partners as a part of our prospect generator business. Just to wrap up here, going through the recent milestones and upcoming catalysts, we've come a long way in the last several years, back in 2016 having acquired our flagship project from our strategic partner, Denison Mines. We've done a fair bit of drilling on the project and more recently that's been focused in looking for basement-hosted mineralization and targets at Moore Lake. Look for continued news flow.

38:49 Again, like I said on a previous slide, the great thing about high-grade Uranium deposits in the Athabasca Basin is it doesn't take a lot of drilling to prove up a substantial resource, some of the richest and highest value mineral deposits out there. We are continuing to advance this project and we do have a number of other higher priority regional targets on the project that we can look to continue exploring as well. In addition to our news flow from our flagship project, the prospect generator part of the business has been a substantial part of what we've been doing and our news flow over the last several years. Having now brought in our third partner in Valor, look for continued news flow from partner companies. It's really a great way for us to also raise a little bit of cash and get some stock to help fund our exploration efforts at our flagship.

39:41 And it just generates a lot more news flow for the company going forward. We likely have several exploration and drill programs underway simultaneously come early in the new year. Look for additional partners and joint ventures and announcements over the coming months as well as I mentioned, we do have several other 100% drill ready Uranium projects in the Athabasca Basin that we are talking with other groups on. And last but not least, the Uranium market recovery, getting back to the macro picture for this commodity, I truly believe it is one of the most underappreciated metals out there. We have seen the price start to tick up. The supply-demand fundamentals are as strong as any metal that's out there. What's interesting about this commodity as well is there's very few active Uranium companies left.

40:34 It's not a crowded space. So when you see money come back into the sector, you will see all of the companies moving relatively quickly, including the junior companies. We've seen that in the past. Since 2003, we've seen the Uranium price spike 8 times on average over a 6.5-month period. And the increase in that 6.5-month period has been almost 60%. So it just shows you how quickly this commodity, this metal can move. And I think we're coming in to a market, this confluence of factors, both on the supply and the demand side that will drive that higher price and will drive higher share prices across the board for the Uranium company. So without getting into too much more, I think we'll just we'll end it there. Again, thank you very much. I hope you enjoyed this presentation.

41:23 I really appreciate everyone taking the time out of their busy days to to to watch. And again, happy to answer some Q&A. Any other questions that don't get answered, again, I'm always available to talk to the company or talk to the uranium market. Thank you very much for the presentation, Jordan. We did have some questions come in so let's get right to it. Jordan, you spoke at length about the uranium market and how demand is strong and fairly sticky. In fact, we have seen the uranium spot price steadily increase from the lows of around $19 per pound around 2017. Do you think we'll see prices go as high as $135 per pound like back in 2007?

42:12 Yeah, it's a good question. I'll just caveat that by saying I do not have a crystal ball, so I'd rather not speculate on exact dollar price. There were a number of reasons why that price, it did spike up to $135 a pound. It was trading kind of between 60 and 80, and then you had the flood at Cigar Lake, so you had a pretty major supply shock which just sent it much, much higher. I talked about this earlier in the presentation, there are a number of very significant risks to the supply side given that it is so geographically and geologically concentrated. You only have a few mines that account for a large portion of the primary mine supply globally. So anything that happens at 1 or 2 of those mines is going to have an impact on the market.

43:04 But as far as the price goes, we're trading at US$30 a pound in the spot market. That is still well below the average all-in cost of production of US$40 to US$50 all-in, and it's well below the price needed to incentivize any new meaningful production to come online. And that's a key point to stress. There really aren't, there isn't this massive pipeline of development projects out there that can come online in a short period of time to meet the growing demand for this commodity and to meet that supply shortfall that we've seen grow over the last several years. And so you hear this in this industry, this coiled spring analogy, and It's a rusty coiled spring right now, but it's a coiled spring nonetheless.

43:54 I do think we're starting to see the catalyst needed to see a breakout. Thank you. It's a good thing that you mentioned the supply side of things as well. Ken is asking specifically, can you provide your view on non-mine Uranium supply currently and over the next 5 to 10 years? What's the impact going to be on the Uranium price? Yeah, it's a great question. And, you know, this does get talked about a lot and, you know, I will, and Ken, obviously, if you've done some research on this, it is an opaque market When we talk about secondary supplies and inventory, there's a number of numbers floating out there. There are always inventories and stockpiles of Uranium.

44:41 It's mandated by a lot of governments and utilities. What I look at is the amount of, and this is a tough number to track down, but the amount of mobile inventory, the amount available for sale inventory, and we've seen that decrease quite significantly over the last several years. We're seeing that so that the material that can come into the spot market that's available for sale, as we see that number decrease, which it is, you will continue to have these mandated stockpiles and inventories, but they're not necessarily coming into the market. So I think over the next several years, you'll see the market in particular spot market tighten up, especially with producers buying and just a lack of supply. One other big point too is Kazakhstan has been a, over the last 10 years has been a big seller into the spot market. They haven't had the same contract book or profile that the larger company or companies like Cameco and Orano that have been around for a while, other larger producers that have been able to cultivate a contract book.

45:49 The Kazakhs are just starting to do that in earnest now. So they've had to sell a lot of their material onto the spot market. Well, you're going to see less and less of that happening as they enter into contracts. And So that is where I think you will see again a continued tightening of the market and you'll see a price rise. Great, thank you Jordan. Our next question is from David. First of all, he found the presentation to be tremendously informative, so we're glad to hear that David. He just wants some clarity around how shareholders can make money until Uranium rises substantially again. Yeah, absolutely. So I spent a lot of time talking about Uranium market and generally about our projects. The simple answer there is exploration, success and strategic new partnerships. Exploration success being we go out, we're doing this right now at our flagship project, Moor Lake. We go and we drill.

46:45 I'll just actually, if I can go back to this slide, and this is an important slide for this, showing some of the recent discoveries that have been made in the Athabasca Basin. Again, this slide here showing the charts. So this is how shareholders make money on these exploration stories, new discoveries, and I emphasise the fact that they're high-grade deposits. Your return on invested capital, return on drilling is significantly higher in the base and you can see, again, NextGen is a perfect example. It went from a $30M market cap to over $1B at one point on the back of a high-grade discovery. It's worth noting that they did that while the commodity price went from $50 a pound to $20. So even in a declining Uranium price environment you can still create shareholder value through the drill bit. And discovery more recently, Isoenergies made a pretty major discovery.

47:39 They've seen a significant increase in share price. We continue our efforts to be that next high-grade discovery story in the Athabasca Basin. We think we're on to something significant with the basement targets that we're drilling into. That's the biggest catalyst outside of the Uranium market. Second, though, and again, we emphasise this prospect generator business. This allows us to focus our time and efforts at our best project, which is more, and it brings in other companies that are then funding the exploration and the potential for there to be a major discovery at these other projects. So yes, we do have to give up a stake, a majority interest usually in those projects. But owning 20% or 30% of a major discovery is worth a lot of money, you will see a major impact, positive impact on the market. And we don't take on any risk with it.

48:32 We don't have to go and dilute. We don't have to raise money to go and see that exploration success and discovery come to fruition. We can let our partner companies do that. It also brings in the added benefit of an expanded geological and technical team. We get to work with the geologists at Orano, at Azencourt, at Valor. And that doesn't get talked about enough in the prospect generator business model. But when you have a lot of smart people working on it, you can usually solve the problem. So focusing still on the exploration and discovery process, Jordan, can you talk a little bit about how that process has evolved in the Athabasca Basin and what Sky Harbor is doing to utilize the latest technologies?

49:21 Yeah, so I have the slide up here which is good. I talked a little bit about this. I like to stress this point. You know, the exploration and discovery process has come a long way, in particular in the last 20-years where previously, Rick, for example, my head geologist was at Cameco for many years and it was a very rudimentary discovery process. You look at MacArthur River, They drilled 200 drill holes down to about 500m before they found the honeypot. It's a multi-billion-dollar deposit so it was well worth it, but small-cap companies don't have the luxury of drilling 200 holes down to 500m and hope that they find the big deposit. We've been using all of the tools at our disposal to go out there and refine these targets, and in particular in the basement rocks where again we've used some drone geophysical surveys.

50:20 We have a much better understanding when we're drilling holes, we see certain geochemistry and indicator minerals. If you look at, for example, the discovery process over on the west side of the basin with Fission and NextGen. They've utilised certain drilling techniques, directional drilling, they utilise Radon in the case of Fission to hone in on the discovery. There are a number of new techniques and methods that can be used to refine these targets so that when you go and you do spend the big bucks drilling you have the best shot at finding something. Our next question is from Philip. If you find the basement hosted deposits, how will you mine it? Through solution mining? That's a great question and I did not touch on this and I wanted to in the presentation. So thank you, Philip. So when I talk about new exploration techniques, it's worth noting there are some new mining methods being proposed in the Athabasca Basin and one of those is ISR, which if you follow Denison, our largest strategic shareholder, that's what they're proposing at their flagship project and just recently came out with a PA at Waterbury yesterday.

51:32 This could be game-changing for the Athabasca Basin. This would drastically reduce costs. This is in-situ recovery and it's something that hasn't been done before, but there's no reason why it can't work. It will be, again, like I said, a real game changer for us at our flagship Moor Lake project. It's interesting, we have small high-grade deposit and zones of mineralization at the unconformity in the sandstone. We haven't done the studies on this or the tests, obviously, but it is something to think about as we discover additional zones of mineralization in the sandstone or right at the unconformity that could potentially be conducive to ISR.

52:19 Or there's another mining method that's being developed by Arano and Dennison called Sabre Surface Access Borehole Resource Extraction. A bit of a mouthful there, but it's basically drilling a borehole from surface and jet boring the high grade Uranium deposit at depth and then pumping that up to surface and then going and processing the high grade Uranium water mixture. If it's in the basement rocks, you technically could look at Sabre. If it's high-grade Uranium surrounded by the basement rock, ISR would not work in the basement rock. It's best if it's straddling the unconformity. But again, for us, we're an explorer, I want to emphasize this, we're an exploration company. So really what we're looking to do is make these discoveries, delineate resources, and then ultimately look to sell the company or the projects to a mining company that would then develop it.

53:20 So here's a question from Terry. Any news on essays from summer drill program? Hi Terry, good to hear from you. As I mentioned, we should have in the next few weeks, I would expect to start getting first batch of results in and we'll likely have a couple of news releases between now and Christmas. You and I have spoken about this, we're needless to say, we're quite happy with what we've seen. And we really do believe that there is a lot more uranium to be found at the Maverick corridor at the project in the basement rocks and we're carrying out several drill programs. Your good news is we will start right back up in early 2021. But yeah, we're just waiting that the labs have been backed up across the country. So just waiting for results.

54:11 Great, thanks Jordan. So I know we talk a lot about Uranium, but I know that even in the South Falcon project, we also have Thorium. So Nona is asking if you could talk a little bit more about Thorium. We have a slide in the deck here, which I kind of glossed over. Thorium is an interesting metal. We happen to have one of the only Ni43-101 compliant Thorium deposits in Canada. It's tied in with our South Falcon Point Fraser Lakes deposit and it's a small inferred resource. We actually brought in a Thorium expert a few years back onto our advisory board, Andreas Norland, who knows a lot about Thorium and the Thorium space.

55:00 For those of you not familiar with Thorium, it's being talked about as a fissile material that can be used in a fission reaction for electricity generation. It is, however, not self-fissile. You need Uranium to start a Thorium reaction. Our view on it is we have a free call option on Thorium if we see it really come in vogue, if it's of interest to investors or other companies, we have a Thorium deposit. But it really is secondary and by a long stretch to the main focus, which is uranium. So here's the next question from Ron. He says that a lot of junior uranium companies are putting their uranium projects in the back burner and actually starting to look at Nickel, Copper and Gold. What are your thoughts on this, Jordan?

55:55 We've seen a number of our peers and comps do this. We're not doing that. I will note that at our Yurchasen project, which I didn't talk about but we own 100% of, and I can just go to this slide here, we do have base metal, precious metal potential. It's worth noting even at a number of Uranium deposits in the basin, you usually have a pretty significant Gold credit as well. We've found Nickel and Cobalt at our Moore Lake project. I'll just highlight it right there. But no, to answer your question, our focus is Uranium. That's what our team is built to do. We're out there looking for Uranium deposits.

56:48 We feel that the timing for this market is right for a major move higher. I don't want to be late to the party. I'd rather be there already. The reality of it is there's very few companies left. And what that's created is a consolidation of projects and good people and just to select few companies and those companies will be the major benefactors when we see a significant move higher in the uranium price, which I think is sooner than later. Our next question is from Russell. Russell asked, with suppliers having to purchase uranium in the spot market to meet contract requirements, when do you expect the Uranium spot price to move significantly from the current one?

57:35 Hi Russ, good to hear from you. It's a good question. It's one of several drivers and catalysts. Cameco, KazAtomProm, keep in mind too in Kazakhstan a lot of the operations are joint ventures with other producers, so any renewed guidance or curtailment on the mines there will have impacts on some other producers as well. But the bottom line is these larger producers that have had to cut back production, having to buy in the spot market, that's one of several drivers right now for the spot market. I think it's going to be that coupled with a tightening supply, less mobile supplies, I just spoke about, coupled with, to be honest, contracts, like new contracts being signed. If you see a contract signed at $50 a pound, yet the spot price is still at $30, I think there's going to be an ARB there. So it's a combination of factors. It's a great question, because that will be, I think, an important factor early on right now. It has been over the last couple of years. We've seen it, you know, basically provide a bid on the spot market over the last several years and I think it will continue to do that.

58:52 Great, I think we are coming to the end of our time here so I do want to ask one last question Jordan. Maybe this is the question that we can leave everyone with. So what are the most important catalysts that we should look out for in the next, say 6 to 12 months for Sky Harbor? Yeah, so drill results is up there, both at our flagship project, More Lake, drill results pending as Terry asked about, and upcoming winter program as well. Exploration and drill programs carried out by our partner companies, again I mentioned Valor coming in now, they want to hit the ground running in January with this new deal that we're finalizing with them. So look out for news flow from option partner companies. That's again, where you can get, you can see the significant increase in the price on the back of new discoveries and successful exploration, but also additional partner companies coming in, new option or joint venture deals being signed. We've got 3 under the belt right now. We are in talks for others at some of our other projects.

1:00:00 And then, you know, last but not least, again, getting back to the Uranium market, there are very few ways to play Uranium. There aren't a bunch of ETFs, there aren't a bunch of large companies, Uranium mining companies that are publicly traded. You can't buy physical Uranium. So again, I get back to this simple point that if you want exposure to the commodity, you're buying a basket of companies and you're working your way down to the juniors relatively quickly. And that applies for all investors, not just retail, but an institutional family office, larger investors as well. So as more generalist money comes into the space, you're gonna see, I think, a pretty quick move higher. Great, well, thank you very much, Jordan, for the presentation, as well as taking us through and answer all the questions. I also want to thank our audience for everyone that submitted questions. If you didn't get a chance to get your question answered or if you just thought you could have a new one now, please stick around after the webinar. We have a short survey where you can tell us how we did and also you have the opportunity to leave your details so that the Sky Harbor team can reach out and follow up with you directly.

1:01:10 For more information, please visit the Sky Harbor resources website at www.skyharborltd.com. And as always, the recording will be available on six.com. It's also going to be on the media page on the Sky Harbor website. Jordan, I'm going to pass it over back to you for the final word. Great. Well, thank you, Jane. And again, thank you, everyone for listening in. I'd be more than happy to take any additional questions. Again, all of our contact info is there. Happy to chat about the company, happy to chat a bit more about what we have coming up and the uranium market. So again, thank you