American Uranium Ltd

American Uranium Ltd (ASX: AMU / OTC: AMUIF) is an Australian-based, US focused uranium exploration and development company focused on in-situ recovery (ISR) uranium projects in Wyoming, USA. The company's flagship asset is the sandstone hosted roll front Lo Herma project in the Powder River Basin, which contains a current JORC indicated and inferred mineral resource of 8.57 million pounds of U3O8 with a substantial additional Exploration Target and a positive scoping study.  AMU  has a total combined uranium inventory of 10.23 million pounds across its holding which include projects in the Great Divide Basin (inferred resources of 1.66Mlbs) and Green Mountain areas of Wyoming, as well as earlier-stage conventional uranium/vanadium assets in Utah.

AMU is positioning itself to take advantage of the worsening uranium supply deficit and rapidly growing demand for uranium, particularly from the United States, which is the world's largest consumer of uranium but currently imports over 95% of its supply. The company's strategy centres on developing low-cost ISR uranium projects in Wyoming, a historically significant uranium producing region with existing infrastructure and a supportive regulatory environment.

The uranium market is experiencing a serious supply deficit and a simultaneous significant demand resurgence driven by several factors:

• Supply constraints due to years of underinvestment in new uranium projects and an overreliance on foreign nuclear fuel supply, particularly from Russia & Kazakhstan.
• Rapidly growing global demand for electricity and clean energy with increasing recognition of nuclear power's role in achieving climate goals.
• Geopolitical tensions leading to an east/west bifurcated uranium market leading to a need for secure domestic uranium supplies, particularly in the US which has banned Russian nuclear fuel imports.
• Technological advancements and significant policy support for nuclear power plant re-starts, gigawatt scale new builds and next-generation nuclear reactors including SMR’s.

In the United States specifically, there is strong bipartisan support for revitalizing the domestic uranium industry. Recent initiatives include the creation of a Strategic Uranium Reserve, $6 billion in grants for existing nuclear plants, and tax credits for new nuclear facilities under the Inflation Reduction Act. The Department of Energy has also advocated for tripling U.S. nuclear capacity to 300 gigawatts by 2050, which would significantly increase uranium demand. Support for nuclear is now underpinned by COP28/29 DOE pledges, demand from data centre companies (the “Magnificent 7”) and 14 of the world’s largest banks.

AMU’s focus on Wyoming ISR projects positions it well to capitalize on these trends. ISR mining is generally faster to build, lower cost and more environmentally friendly than conventional mining methods. Wyoming has a long history of uranium production and hosts current producers and several more additional permitted processing facilities, potentially allowing for rapid development of new projects.

The Lo Herma project, located just 10 miles from Cameco's Smith Ranch-Highland facility (the largest ISR uranium plant in the U.S.), appears particularly promising. Drilling results in late 2024 and early 2025 have confirmed and expanded known mineralization by 50%, with the potential to significantly increase the resource base through further drilling which is about to commence. The company is targeting a resource upgrade and scoping study update in late 2025 or early 2026, which could be major catalysts for the stock.

AMU's management team brings relevant experience in uranium exploration, project development, and capital markets:

• Bruce Lane (Executive Director/CEO): 20 years of experience in mineral exploration and company management, including previous roles with uranium-focused companies.
• Matt Hartmann (Non-Executive Director): 20+ years in mineral exploration, including specific experience with major uranium ISR projects in the U.S. and Turkey.
• Simon Williamson (Non-Executive Director): Former GM of Cameco Australia, with significant experience in project approvals and community engagement.
• Jim Baughman (Non-Executive Director): 30+ years in the Wyoming uranium industry, including as President & CEO of High Plains Uranium (sold for US$55M in 2006).
• Peter Tomasevic (Non-Executive Director): Financial services specialist with experience across multiple ASX-listed companies.

The team's combination of technical expertise, regulatory knowledge, and capital markets experience should serve AMU well as it advances its projects.

AMU's growth strategy is centred on rapidly advancing its Wyoming ISR projects, with a particular focus on the promising Lo Herma asset in the highly productive Powder River basin. The company's primary objective is to expand its resource base through an accelerated program at Lo Herma. This ongoing initiative aims to grow the known mineralization both along trend and at depth. AMU is exploring in both the Wasatch formation and the deeper Fort Union formation, which both hold the potential to add significant additional mineralization to the project's resource inventory.

Concurrent with resource expansion, AMU is taking crucial steps to de-risk the Lo Herma project. The company is in the process of completing hydrogeologic and water monitoring wells, which are essential for understanding the project's hydrogeology and planning future production scenarios. Furthermore, GTI has collected core samples for metallurgical testing, a critical step in optimizing the ISR process and demonstrating the project's economic viability.

Looking ahead, AMU has set ambitious targets for advancing Lo Herma through key development milestones. The company is aiming to deliver a resource update in Q4 2024, which could potentially be followed by a scoping study in 2025. Positive results from these studies could serve as significant catalysts for the company, potentially leading to a material re-rating of the stock as the project's economic potential becomes clearer.

While Lo Herma remains the primary focus, AMU is not neglecting its broader project pipeline. The company continues to advance its other Wyoming projects, including those in the Great Divide Basin and Green Mountain areas. Exploration at Green Mountain can commence in 2025 now that the necessary permits are in place, providing potential for additional resource growth and diversification of the company's asset base. Permits are also in place for future drilling at the Company’s Great Divide Basin and Utah projects.

In the longer term, AMU recognizes the potential benefits of consolidation within the fragmented U.S. uranium sector. The company remains open to strategic partnerships, joint ventures, or even merger and acquisition opportunities that could create a more substantial production base. Such moves could potentially accelerate AMU's path to production, create operational synergies, or provide access to additional high-quality assets, enhancing the company's overall value proposition to investors.

As of October 2024, AMU had approximately A$2.5 million in cash on a proforma basis following a recent capital raise with an additional $440,000 rights issue shortfall yet to be placed. The company's market capitalisation is around A$24 million (as of 8th October 2025), which appears low relative to its 7.37 million pounds of inferred uranium resources and substantial exploration targets across its Wyoming projects.

AMU's valuation of approximately US$1 per pound of uranium resources compares favourably to more advanced U.S.-focused uranium developers, which often trade at US$2-6 per pound of resources. This suggests potential for significant re-rating in a supportive market as the company advances its projects and derisks its resource base.

The company's burn rate and future capital needs will depend on the pace of project advancement. While additional funding will likely be required to complete feasibility studies, permitting and potential construction, the relatively low capital intensity of ISR projects (often US$40-60 million for initial capex) makes financing more manageable than for most conventional uranium mines.

American Uranium Ltd presents an intriguing opportunity for investors seeking exposure to the uranium sector. The company's focus on U.S. ISR projects aligns well with macro trends in the nuclear industry and geopolitical shifts favouring domestic uranium production. The Lo Herma project shows promise, given its location and recent drilling results.

Key catalysts in the near to medium term include:

• Results from ongoing drilling at Lo Herma
• Resource update in Q4 2024
• Potential scoping study in 2025
• Advancement of permitting processes
• Potential strategic partnerships or M&A activity in the U.S. uranium sector

AMUs current valuation appears undemanding relative to its resource base and the strategic value of its assets. However, investors should be aware that the company is still at an early stage, with significant work required to prove the economic viability of its projects.

For risk-tolerant investors bullish on the uranium sector, AMU offers leveraged exposure to potential upside in both the uranium price and project advancement. The company's success will depend on continued positive exploration results, efficient project development, and supportive market conditions for uranium. Close attention should be paid to the upcoming resource update and potential scoping study outcome, as these will be critical in assessing the true potential of AMU's assets.