ATHA Energy: Holding the Largest Uranium Exploration Package in Prominent High-Grade Basins

• ATHA Energy is a uranium exploration company with the largest land package across the Athabasca Basin, Thelon Basin, and Central Mineral Belt in Labrador, Canada.
• Aggressive growth strategy aligned with the strong uranium market fundamentals and upcoming contracting cycle.
• Flagship Angilak project has 43M lbs at 0.69% U3O8, one of the highest grade resources outside the Athabasca, with significant expansion potential.
• Experienced management team with track record at Cameco, NextGen, and others.
• Well-capitalized with $30M exploration budget for 2024, farm-out agreements, and 10% carried interest in portions of NextGen's exploration projects.

ATHA Energy: Canada's Growing Premier Uranium Explorer

ATHA Energy (TSXV:SASK) is emerging as a leading uranium exploration company in Canada, with a dominant land position across the country's premier uranium districts and an aggressive strategy to capitalize on the strengthening uranium market. The company's seasoned leadership, prospective project portfolio, and healthy treasury make it a compelling opportunity for resource investors.

Largest Exploration Portfolio in Top Jurisdictions

ATHA Energy controls an unparalleled exploration portfolio totaling over 8.5 million acres spanning the Athabasca Basin in Saskatchewan, the Thelon Basin straddling Nunavut and the Northwest Territories, and the Central Mineral Belt in Labrador. These districts host some of the highest grade uranium deposits globally. CEO Troy Boisjoli emphasized:

"We have amassed the largest exploration package in the industry and we have a very aggressive growth strategy going into this very favorable uranium market."

This dominant land position provides ATHA with a unique opportunity for new discoveries. The company is taking a systematic approach to exploration, leveraging modern techniques like airborne geophysical surveys to efficiently prioritize targets across this vast area. Around $30 million is being deployed into exploration in 2022 alone, one of the largest programs in the sector.

Flagship Angilak Project: High Grade, District-Scale Potential

The crown jewel of ATHA's portfolio is the Angilak project in Nunavut. Angilak hosts an impressive resource of 43.3 million pounds grading 0.69% U₃O₈, ranking as one of the highest grade deposits outside Saskatchewan's Athabasca Basin. Notably, this grade compares favorably to Cameco's world-class Cigar Lake mine.

A 10,000 meter drill campaign in 2024 focused on expansion around the main Lac 50 trend. Results successfully grew the mineralized footprint, while also discovering multiple new parallel zones. Boisjoli stated:

"We focused on expanding that envelope of mineralized rock in a material way which in our view technically de-risks that next resource growth phase, which is focused on a step change resource that gets us and kicks us over into that development stage."

Leadership with a Track Record of Uranium Success

ATHA is led by a team with deep experience in the uranium sector. Boisjoli previously served in senior roles at Cameco and as VP Exploration for NextGen Energy, where he advanced the Arrow deposit in the Athabasca. The technical team brings decades of experience from Cameco, Orano, and other major uranium companies.

This expertise is key as ATHA looks to not only make new discoveries, but advance projects efficiently through resource growth and development stages to create value. The team's knowledge of what's required to build uranium mines will help focus exploration and studies on deposits with real development potential.

Well-Funded to Execute on Growth Strategy

ATHA is well-capitalized to deliver on its aggressive growth plans, with around $30 million being invested into exploration in 2024.The company has a tight share structure with strong institutional backing and a favorable warrant profile.

The company is also pursuing innovative strategies to maximize discovery exposure while managing risk. Three earn-in agreements valued at $30 million enable partners to advance earlier stage projects. ATHA also holds a 10% carried interest in portions of NextGen Energy's exploration properties in the southwest Athabasca, providing additional discovery potential funded by one of the basin's top explorers.

The Bullish Uranium Macro Backdrop

The uranium market is in the early innings of a cyclical upturn, with strengthening fundamentals setting the stage for a period of sustained price appreciation. A structural supply deficit looms later this decade as growing demand outpaces available production, while a resurgent contracting cycle from utilities should provide a nearer-term catalyst.

On the demand side, the global nuclear reactor build continues to advance, with around 55 units under construction. China and India remain key growth markets, but a shift in sentiment is also driving new builds and reactor restarts in the West. The war in Ukraine has spotlighted the importance of energy security, with nuclear offering a reliable, carbon-free baseload source. As ATHA Energy CEO Troy Boisjoli noted:

"Four or five years ago, utilities were shutting down reactors in the US and had a decommissioning plan. That is reversed. A typical example in the last week has been reactors coming back online on Three Mile Island."

This demand growth comes as supply faces mounting challenges. Unplanned disruptions have become more frequent, including at industry leader Kazatomprom, which has revised production forecasts lower. The lack of investment in new mines over the past decade has created a yawning future supply gap.

"The biggest difference between now and then is the market sentiment has changed completely around the need for nuclear and the buildout that is happening right now in Southeast Asia, the demand increases that are coming. This is a very, very bullish uranium landscape, better than we've ever seen."

A key near-term driver will be the uranium contracting cycle, as utilities look to secure supply beyond their existing contract coverage. With uncovered reactor requirements growing later this decade, Boisjoli expects a substantial increase in contracting. This should support higher prices and encourage new production to be developed.

"The near-term catalyst is that contracting cycle that we're about to emerge into, and then you comp that back to the last cycle with the contracting cycle, and that's where in 2007 we saw the price run up to $135 a pound."

With a structural supply deficit emerging, a strong contracting cycle, and improving sentiment around nuclear energy, the uranium market appears poised for a period of strength in the coming years. This cyclical upturn should create opportunities for well-positioned uranium companies to create value.

ATHA's growth plans are underpinned by a robust uranium market. A structural supply deficit is forecast as demand rises, driven by new reactor builds and a shift back to nuclear in the Western world. Major producers are struggling to meet production targets and new mines will be required.

The Investment Thesis for ATHA Energy

• Massive land position in Canada's top uranium jurisdictions provides unparalleled discovery potential
• Flagship Angilak deposit is one of the world's highest grade resources with substantial growth potential
• Proven leadership team with experience at uranium industry leaders like Cameco and NextGen
• Well-funded with large exploration budget and additional upside from partner-funded projects
• Compelling value proposition as discovery-stage company with resource-stage asset
• Leveraged to rising uranium prices driven by structural supply deficit and improving sentiment

ATHA Energy offers investors a unique combination of exploration upside, high-grade resources, and proven leadership in the context of a strengthening uranium market. With an aggressive drilling and exploration campaign underway, the company appears well-positioned for growth as it aims to make new discoveries and advance projects up the value chain. For investors seeking exposure to the uranium sector, ATHA warrants a closer look.