enCore Energy

The investment case rests on infrastructure that management describes as built, with permitting the last step before new production. Together, the 3 new production areas are targeted to renew the company’s extraction growth profile into 2027. Each needs approval from the Texas Commission on Environmental Quality (TCEQ): a Production Area Authorization (PAA) for PAA-1 at the 100% owned Upper Spring Creek project and the PAA-8 application at Alta Mesa, plus an amendment for the PAA-3 Extension. At Upper Spring Creek, the TCEQ has completed its technical review and public notice process. The company is targeting final authorization on or before November 13, 2026, earlier than the timing in its second quarter 2026 guidance.

Upper Spring Creek is the largest satellite facility the company has built. Its Satellite Ion Exchange (IX) Plant and first wellfield are constructed, and uranium-loaded resin will be trucked to the fully licensed Rosita CPP, which commenced operations in November 2023, has a total operating capacity of 800,000 pounds, and is on warm standby. Current IX capacity is 1,600 gallons per minute, or 50% of the planned flow capacity, which is targeted to reach 100% by year-end 2026. The mineralized sands lie in the Oakville Formation at depths typically between 300 and 450 feet. Alta Mesa, a 70/30 joint venture with Boss Energy Limited in which enCore is the managing partner, has a total operating capacity of 1.5 million pounds per year plus 0.5 million pounds of drying capacity.

The market backdrop is supportive. The company describes the United States as the world’s largest consumer of uranium with minimal domestic production. Globally, approximately 80 nuclear reactors were under construction as of July 2026. The company also notes that uranium spot prices reached over US$100 per pound in January 2026, the highest since February 2024. It also cites the ban on Russian uranium imports, the reinstatement of uranium on the US Geological Survey’s List of Critical Minerals for 2025, and US$2.7 billion in Department of Energy enrichment contracts announced in January 2026.

Richard H. Little is Chief Executive Officer and a director, with more than 30 years of industry and public company experience focused on production, well performance, acquisitions and divestitures, and operational efficiency. He previously served as Chief Executive Officer of Fury Resources, Inc., Battalion Oil Corp. (formerly Halcon Resources Inc.) and Ajax Resources, LLC. William M. Sheriff, Executive Chairman, founded enCore and brought it from inception to a uranium producer. He has raised over US$600 million in the public markets, completed numerous mergers and acquisitions, and compiled one of the largest domestic uranium resource databases in the United States. Kevin Kremke is Chief Financial Officer, a finance executive with a record of driving growth and disciplined financial stewardship across diverse industries. Dain McCoig is Chief Operating Officer, a seasoned engineering and operations leader with over 18 years of experience in mining, mineral processing, and facility development, who leads all South Texas operations.

The board adds deep uranium and nuclear experience. Lead Director Mark Pelizza has spent over 40 years in the uranium industry, including several ISR operations in Texas and a senior role at Uranium Resources Inc. Susan Hoxie-Key has more than 40 years in engineering, including 31 years at Southern Nuclear Operating Company. William B. Harris is a former Chief Executive Officer of Hoechst Fibers Worldwide. Nathan Tewalt is an economic geologist with over 40 years of experience who founded Standard Uranium, and Wayne Heili is a metallurgical engineer with more than 35 years in uranium recovery across South Texas and Wyoming.

Near-term growth comes from the 3 production areas. Final permitting for the PAA-3 Extension at Alta Mesa is targeted by the end of the year and for PAA-8 early in the new year; legislative changes to public notice and hearing procedures implemented May 1, 2026 mean there will be no opportunity for a public hearing. Beyond the existing wellfields, the Alta Mesa East property covers over 5,900 acres of private land adjacent to the Alta Mesa wellfields and CPP, where productive roll fronts from Wellfields 1, 3, 4, 5B and 7 continue into the tract. Drilling to establish resources and support permitting is targeted to continue through 2026 and into 2027, and initial permitting activities have started.

Dewey Burdock is a 100% owned, advanced-stage project on 10,580 acres in South Dakota’s Edgemont Uranium District. The Nuclear Regulatory Commission issued a 20-year renewal of Source Materials License SUA-1600, effective until June 2046, and the Bureau of Land Management authorized initial infrastructure construction. The project is approved under the US Government Fast Track Permitting program, has received all necessary federal permits, entered South Dakota permitting on June 15, 2026, and targets completing state permitting by the end of 2027. The company reports initial capital costs of US$264.2 million, a pre-tax internal rate of return (IRR) of 39% at a long-term uranium price of US$86.34 per pound (33% post-tax), and a net present value at an 8% discount rate (NPV8%) of US$180.1 million pre-tax and US$133.6 million post-tax. The plan calls for 750,000 pounds per year over a 28-year mine life, including a 2-year ramp-up.

Gas Hills, also 100% owned and located in Fremont and Natrona Counties, Wyoming, has a proposed project pipeline commencing in 2028. The company reports initial capital costs of US$55.2 million, a pre-tax IRR of 54.8% at a long-term uranium price of US$87 per pound, and NPV8% of US$166.9 million pre-tax and US$141.8 million post-tax, with production of 880,000 pounds per year over an 11-year mine life. The company also invests in Prompt Fission Neutron technology, which provides direct downhole uranium content that conventional coring and assay methods cannot.

As of August 28, 2026, the capital structure includes a US$115 million 5.5% August 2030 convertible note, along with 7,709,499 stock options, 4,382,992 restricted stock units, and 882,132 performance stock units. Costs for the Upper Spring Creek Satellite IX Plant and first wellfield, and for the Alta Mesa Wellfield 3 Extension, are fully expensed.

The company’s sales strategy blends contracts with pricing collars and significant spot exposure. Contracts are structured with pricing that reflects market conditions at the time of execution, with inflation-adjusted floors and ceilings that provide base revenue levels, assuring an operating margin while retaining upside exposure to spot market pricing. The company is reviewing additional inbound contracting opportunities from 2030 and beyond.

On September 30, 2026, enCore completed the distribution of 35,000,000 common shares of Verdera Energy Corp. (TSXV: V | OTCQB: VUECF) as a special dividend to shareholders of record on September 25, 2026. Of these, 21,000,000 were unrestricted, 7,000,000 are restricted until November 20, 2026, and 7,000,000 until February 20, 2027. After the distribution, enCore holds 15,029,332 Verdera shares. Separately, the company engaged North Star Investor Relations Inc. under a consulting agreement effective September 18, 2026, at a monthly cash retainer of CAD $10,000 for an initial term of 1 year, subject to TSX Venture Exchange approval.

• Regulatory & Permitting Risks: Upper Spring Creek still needs the final TCEQ authorization signature, and its Waste Disposal Well, which handles the bleed stream from ISR operations, is in final testing and TCEQ review. The Alta Mesa PAA-8 and PAA-3 Extension remain in technical review, and Dewey Burdock state permitting runs to the end of 2027. Upper Spring Creek has already completed technical review and public notice.
• Commodity Price Volatility: Earnings depend on uranium prices, and the Dewey Burdock and Gas Hills economics rest on long-term prices of US$86.34 and US$87 per pound. Contracts with inflation-adjusted floors and ceilings provide base revenue levels that assure an operating margin, while spot exposure is retained.
• Technical & Operational Risks: Extraction at Upper Spring Creek is targeted to begin only after the final permit is received, leaving Rosita on warm standby, and installed IX capacity must still reach 100% of planned flow capacity by year-end 2026. The plant and first wellfield are already constructed, Rosita is fully licensed and ready to accept resin, and the Alta Mesa Central Processing Plant commenced operations in the second quarter of 2024.
• Environmental & Social Risks: The company describes ISR as a minimally invasive, eco-friendly extraction technology and says it is committed to working with local communities and indigenous governments to create positive impacts from its projects.
• Financing Risk: The convertible note and the initial capital needed for Dewey Burdock and Gas Hills add to funding needs, and outstanding options, restricted stock units and performance stock units could dilute shareholders. The company describes its uranium extraction strategy as fully funded and says the non-core assets under its ongoing divestment strategy can provide value and reduce shareholder dilution.
• Execution Risk: The plan depends on receiving the Upper Spring Creek authorization by November 13, 2026, and the Alta Mesa approvals by year-end and early in the new year. The company’s record of bringing the Rosita CPP and the Alta Mesa CPP into operation, and of building the Upper Spring Creek facilities, reduces but does not remove the risk of delays.

enCore Energy offers exposure to US uranium extraction through ISR assets in South Texas whose infrastructure is built and whose remaining step is permitting. Upper Spring Creek is described as built and ready, Rosita is on standby to receive its resin, and the Alta Mesa wellfields are following the same permitting path. Management describes these wellfields as supporting its improved extraction outlook for 2027, while Dewey Burdock and Gas Hills provide longer-dated development projects in South Dakota and Wyoming.

The main uncertainty is whether the permits that stand between built infrastructure and production arrive on the timelines the company is targeting. First extraction at Upper Spring Creek, the Alta Mesa approvals, and Dewey Burdock state permitting are the milestones for investors to track.