Alligator Energy Advancing its Uranium Projects Amid Market Resurgence

• Alligator Energy is an Australian-listed uranium development company focused on the Samphire Uranium Project.
• The company is advancing its uranium project towards production, with a goal to start production around 2027 to align with the resurgence in the uranium market.
• They recently raised $25.5 million in a placement and offered a small SPP (Share Purchase Plan) to existing retail shareholders to fund their development projects.
• Alligator Energy attracted institutional shareholders in the recent fundraising and does not currently consider share consolidation.
• The company is exploring additional uranium opportunities in the Alligator Rivers region, including the Black North project, and is conducting exploration work in the Cooper Basin for uranium potential.

About Alligator Energy

Alligator Energy is a uranium-focused project development and exploration company advancing projects across Australia and Italy. The company is progressing its flagship Samphire Uranium Project, with 47Mlb inferred resources, towards production in South Australia. Alligator also holds extensive licenses in Australia's premier high-grade Alligator Rivers uranium district and is exploring the Big Lake project. The company has formed a strategic partnership with Traxys North America to assist with uranium marketing, financing and acquisitions. In Italy, Alligator holds the Piedmont Project with historic Ni-Co-Cu mines and is pursuing partnerships given Europe's increasing demand for domestic critical minerals.

Interview with Chief Executive Officer & Managing Director, Gregory Hall

Samphire Uranium Project On Track for 2027 Production Start

Alligator Energy's flagship project is the Samphire Uranium Project, located 20km southwest of Whyalla in South Australia. Samphire is an in-situ recovery (ISR) uranium project targeting the Blackbush deposit.

The company recently completed a scoping study for Samphire that outlined plans for a 1Mlb per year operation with an initial 14-year mine life. The study estimated pre-production capital costs of A$130M and all-in sustaining costs of US$30/lb U3O8.

Alligator is working to complete a full feasibility study for Samphire by early 2025, along with securing initial off-take agreements. The company is targeting all necessary approvals and financing to be in place for a 2027 production start.

A key upcoming milestone is the completion of a pilot field recovery trial in early 2024. Alligator has commenced constructing a pilot plant and drilling monitoring wells in preparation. The trial aims to validate and optimize technical and economic parameters for the feasibility study.

The company is also working to expand the Samphire resource, with an updated estimate expected in November 2023. Additional regional exploration is also planned to delineate secondary satellite deposits that can extend Samphire's mine life. Alligator's recruitment of key technical staff from the experienced Beverley/Four Mile ISR mining team will be crucial for advancing Samphire.

Funding Secured to Advance Development Timeline

In September 2023, Alligator completed an A$25.5M placement to institutional and sophisticated investors. The company noted this provides funding to accelerate work programs and maintains a minimum cash balance expected by institutional investors for near-term developers.

The placement attracted new institutional investors, predominantly from Australia and Southeast Asia. Their involvement provides third-party validation of Alligator's strategy and outlook for Samphire.

Alligator Energy also announced a small Share Purchase Plan (SPP) for existing shareholders, of up to A$3 million. This allows shareholders to purchase shares on the same terms as the Company’s recent share placement to professional, sophisticated and institutional investors.

Positive Industry Backdrop Supporting Development Plans

Samphire's targeted production start aligns with expectations of a growing uranium market undersupply from the late 2020s. Secondary supply sources are declining while demand is steadily rising as nuclear energy capacity expands.

The recent uranium price rally to 10-year highs highlights improving sentiment across the industry. Producers are indicating willingness to increase supply if long-term contracting provides adequate returns. Meanwhile, utilities are showing intentions to enter long-term contracts to ensure security of supply.

This changing dynamic appears likely to support higher long-term uranium prices that incentivize new mine development. The positive backdrop provides a favorable environment for Alligator to advance Samphire towards production.

Exploration Portfolio Provides Longer-Term Optionality

Beyond Samphire, Alligator's project portfolio includes exploration ground within the Alligator Rivers Uranium Province in the Northern Territory. While early-stage, this provides upside exposure to a proven high-grade uranium district.

At the Big Lake project in the Cooper Basin, Alligator is exploring a large sedimentary basin virtually unexplored for uranium. Big Lake offers potential for a new uranium province discovery analogous to the mines in the Frome Basin to the north.

While not a current focus, Alligator also holds the Piedmont project in northern Italy. The company continues to seek options for joint venturing this project to fund further exploration.

Conclusion

With Samphire, Alligator Energy offers investors exposure to a near-term uranium production opportunity. The project's simple and low-cost ISR mining method allows flexible scaling of production levels.

The company's experienced board and management team gives confidence in their capability to steer Samphire through development and into operations. Backing from new institutional investors provides third-party endorsement.

Market tailwinds from rising uranium prices and expected supply shortfalls provide an ideal backdrop. Alligator's strengthening cash position will support accelerating work programs to maintain the 2027 start-up schedule.

The progress at Samphire, combined with longer-term optionality from Alligator's exploration portfolio, gives investors interested in the uranium sector a compelling opportunity.