Denison Mines Positioned to Capitalize on Improving Uranium Market Fundamentals

• Denison Mines, a uranium development company, is progressing with their Phoenix project in the Athabasca Basin region of Northern Saskatchewan.
• The Phoenix deposit is being developed as the first in-situ recovery uranium mine in Canada.
• Industry sentiment is positive, with projections showing uranium demand rising from 200 million pounds annually today to over 250 million in 2040.
• Many reports indicate that utilities are not adequately covered for future demand, leading to concerns about where additional supplies will come from.
• Denison's recent technical report highlights the potential of the Phoenix project, with a post-tax NPV of $1.6 billion. They anticipate production by 2027-2028 and are also exploring other assets in their portfolio.

About Denison Mines Corp.

Denison Mines Corp. is a Canadian uranium development company focused on the exploration and advancement of uranium deposits in the Athabasca Basin region of northern Saskatchewan. The company’s flagship Wheeler River project, which is a joint venture with affiliates of Denison, Korea Electric Power Corporation (KEPCO) and JCU (Canada) Exploration Company Limited, hosts the high-grade Phoenix and Gryphon uranium deposits.

Beyond Wheeler River, Denison holds interests in several other Athabasca Basin uranium projects including 22.5% of the McClean Lake mill, 25.17% of the Midwest Main and Midwest A deposits, and 67.41% of the Waterbury Lake property. The company also has exposure to joint venture projects through its 50% ownership of JCU (Canada) Exploration Company.

With a portfolio covering over 300,000 hectares in the Athabasca Basin, Denison is positioned as a leading uranium exploration and development company in this prolific Canadian mining district. The company also provides post-mining closure and remediation services through its Closed Mines group.

Interview with David Cates, President & CEO of Dension Mines

Low-Cost Phoenix Project De-risked and Positioned for Near-Term Production

Denison’s primary focus has been on de-risking the Phoenix in-situ recovery (ISR) uranium project, which the company believes has industry-leading capital intensity. According to CEO David Cates, Phoenix has an “enormously low-cost profile” that makes it economic even at today's low uranium prices. The company recently completed a feasibility study on Phoenix that was authored by third-party engineering firm Wood PLC. The results validate Phoenix as a potentially industry-leading uranium development project.

With the feasibility study in hand, Denison is moving forward with front-end engineering design and detailed engineering ahead of a planned two-year construction period once a final investment decision is made. The company expects Phoenix to reach commercial production by 2027-2028. The feasibility study shows Phoenix has industry-low initial capital costs, with an after-tax internal rate of return of 35% at an assumed uranium price of $50 per pound U3O8.

Cash Flows from Phoenix to Fund Development of Gryphon

Denison’s 100%-owned Gryphon underground uranium deposit, located nearby on the Wheeler River property, provides longer-term upside and exposure to higher uranium prices. The high-grade Gryphon deposit would require more typical underground mining methods and has higher capital costs compared to Phoenix. However, the plan is for cash flows from Phoenix to fund development of Gryphon. This pairs a low-cost ISR mine with initially low capex (Phoenix) with a longer-life, higher cost underground mine (Gryphon). Together, this gives Denison exposure to an early rebound in uranium prices from Phoenix as well as potential further price increases in the future from Gryphon.

Applying Proprietary ISR Mining Expertise to Additional Deposits

Beyond Phoenix and Gryphon, Denison is focused on leveraging its proprietary expertise in ISR mining in the Athabasca Basin to identify additional deposits amenable to low-cost ISR mining. The company is actively exploring its portfolio of projects in the region for such deposits. Denison also has a strategic partnership with Orano Canada Inc. to evaluate ISR mining at the Midwest project in the Athabasca Basin, which is owned 75% by Orano and 25% by Denison.

Uranium Market Fundamentals Continue to Improve

Denison is advancing its pipeline of uranium projects at a time when uranium demand is projected to rise significantly while supply sources remain uncertain. The recently released World Nuclear Association biannual nuclear fuel report projects uranium demand growing 38% by 2040. However, many supply sources are not assured, especially at prices below $60-70 per pound where many potential projects are uneconomic. With demand projections firmly positive and supplies tightening, the uranium market looks poised for a structural deficit in the coming years. Denison is positioned early with low-cost production potential from Phoenix.

Major Milestones Ahead for Denison

For investors, key milestones to watch for Denison over the next 6-12 months include:

• Progress on environmental assessment and permitting for the Phoenix and Gryphon deposits at Wheeler River
• Results from ongoing field work and metallurgical studies related to potential application of ISR mining at the Waterbury Lake property
• Initial results from field work and studies evaluating ISR mining potential at the Midwest project
• Drill results from ongoing regional exploration activities focused on new discoveries proximal to Phoenix and Gryphon at Wheeler River

With its de-risked Phoenix project permitted and ready for development at a time when uranium fundamentals are improving, Denison Mines represents a compelling investment opportunity in the uranium sector. The company offers investors low-cost near-term production potential from Phoenix, longer-term optionality from Gryphon, and significant exploration upside in the Athabasca Basin's high-grade uranium districts.

Conclusion

With a portfolio of high-quality uranium assets and industry-leading expertise in low-cost ISR mining techniques, Denison Mines is uniquely positioned to capitalize on the improving uranium market fundamentals. As demand grows and supplies tighten, the company offers investors production potential beginning in the late 2020s along with significant leverage to rising uranium prices in the years ahead.