Goviex Uranium - Bankable Feasibility Study Demonstrates Strong Economics for Muntanga Uranium Project in Zambia

• Goviex Uranium recently completed a bankable feasibility study (BFS) for its Muntanga uranium project in Zambia, highlighting strong economics and potential production starting in 2028.
• The Muntanga project utilizes simple open-pit mining and an on-off heap leach process, with quick recoveries and high recovery rates. The project has access to key infrastructure like roads, water, and power.
• Remaining work includes finalizing funding sources, completing the environmental and social impact assessment (ESIA), and implementing a community relocation action plan. The company expects ESIA approval within 6 months.
• Goviex is seeing strong interest from potential lenders, particularly South African banks. The company believes the uranium market needs new projects and is well-positioned to meet future demand.
• While current uranium spot prices are low, the company remains focused on securing long-term contracts. Goviex believes delaying the project is not necessary at this stage and plans to continue advancing Muntanga towards production.

Goviex Uranium: Positioned for Success with Advanced Muntanga Project

The global uranium market appears poised for significant growth in the coming years, driven by increasing demand for clean, reliable baseload energy from nuclear power. As nations worldwide seek to decarbonize their energy systems and address climate change concerns, nuclear energy is emerging as a critical component of the low-carbon energy mix.

However, current uranium production is insufficient to meet projected demand, with many industry experts forecasting widening supply deficits in the near future. This supply-demand imbalance presents a compelling opportunity for uranium developers that can bring new production online in a timely manner.

Goviex Uranium CEO Daniel Major summed up the opportunity succinctly:

"Low prices are great for low prices. It will force it higher. So I'm very comfortable that over this year you will see the utilities come back and start looking at their U308 demands...and we saw this at beginning of the decade. Those two led U308 up."

As one of the few uranium companies with an advanced-stage development project nearing construction, Goviex appears well-positioned to capitalize on the projected growth in uranium demand and prices. With a robust feasibility study complete and key permits in place, the company's Muntanga project in Zambia offers investors leveraged exposure to the uranium market recovery.

Interview with Chief Executive Officer, Daniel Major

Robust Project Economics

The Muntanga BFS, released in January 2025, showcases the project's potential to become a low-cost, long-life uranium producer. The study outlines a simple open-pit mining operation utilizing an on-off heap leach process, with quick recoveries and high recovery rates exceeding 90%.

Muntanga boasts a low cash cost of production, nearly unchanged from the 2017 preliminary economic assessment despite industry-wide inflation of approximately 40% over that period. While initial capital costs have increased, the current figures include a mining fleet that was previously excluded.

CEO Daniel Major expressed confidence in the BFS results, stating:

"We have gone from a PEA in 2017 to a full bankable feasibility study in Muntanga. We have done the engineering on five different deposits, not one, five different deposits to build all of those together."

Simple Mining & Processing

Muntanga's straightforward mining and processing methods contribute to its competitive cost structure. Mineralization is hosted in soft, porous sandstones, allowing for coarse crushing to a P80 of 25 millimeters. P80 refers to the particle size at which 80% of the material processed is below that size. In mining, this measurement is used to analyze particle size distribution after crushing or grinding processes, which is essential in determining material quality and optimizing downstream processing.

The on-off heap leach circuit has been designed to handle Zambia's rainy season, with separate pads for loading, leaching, rinsing, and unloading. Rainwater is captured and recirculated back into the process, minimizing freshwater consumption.

With access to existing infrastructure, including roads, water, and power from a nearby hydroelectric dam, Muntanga benefits from a favorable location that simplifies project development.

Permitting & Social License

Goviex has secured mining permits for Muntanga and is currently working on final environmental approvals. The company expects to submit its environmental and social impact assessment (ESIA) to Zambian authorities by the end of Q1 2023, with approval anticipated within six months.

In parallel, Goviex is advancing a community relocation action plan, engaging with local stakeholders to ensure a transparent and equitable process. The company reports strong support from local communities, which stand to benefit from employment and economic development opportunities.

Major emphasized Goviex's commitment to responsible development, stating:

"We have to provide them a like for like, or better, a replacement. We're not taking them miles away either. People are literally moving closer to the project - far enough away that the project won't influence on them - but close enough that they can take the jobs that would be created by the mine."

Financing & Offtake Opportunities

With a strong BFS in hand, Goviex is now focusing on securing project financing and offtake agreements. The company is seeing significant interest from potential lenders, particularly South African banks that have recently re-entered the mining finance space.

Goviex plans to pursue a mix of debt and equity financing, with the debt process expected to provide a level of due diligence that will ultimately de-risk the project for equity investors. The company is also exploring alternative financing options, such as leasing mining equipment or engaging with Chinese construction firms for EPC contracts.

On the offtake front, Goviex is leveraging its relationships with global utilities to secure long-term contracts. The company believes the uranium market is in a structural deficit, with many utilities needing to replace supply lost due to geopolitical tensions and mine closures.

A Contrarian Bet on Uranium

While current spot uranium prices remain below incentive levels for new mine development, Goviex remains confident in the long-term fundamentals of the nuclear fuel market. The company sees strong demand growth driven by new reactor builds and life extensions, particularly in China and other emerging markets.

At the same time, supply is expected to tighten as existing mines deplete their reserves and secondary sources dwindle. This structural deficit should support higher uranium prices over time, benefiting developers like Goviex that can bring new production online quickly.

Major highlighted the importance of being ready to deliver into a rising price environment:

"There's no reason that I can see at the moment not to keep going forward. I'm very confident in where I look at the market that uranium prices will go higher and we have to plan to be there to deliver into that market."

The Investment Thesis for Goviex Uranium

• Advanced-stage project with robust economics demonstrated in BFS
• Simple mining and processing methods contributing to low costs
• Mining permits secured, with environmental approvals expected within 6 months
• Strong local community support and social license to operate
• Significant lender interest and financing opportunities emerging
• Exposure to rising uranium prices through future offtake agreements
• Experienced management team with track record of project delivery
• Muntanga first in a pipeline of projects providing growth potential

Goviex Uranium's Muntanga project in Zambia is poised to become a significant supplier of uranium as global demand for nuclear fuel rises. With robust project economics, a simple mining and processing plan, and key permits in place, Goviex offers investors leveraged exposure to a potential uranium price recovery. As one of the few developers with an advanced-stage project nearing construction, Goviex is well-positioned to benefit from the emerging supply deficit in the uranium market. While risks remain, particularly around financing and future uranium prices, the company presents a compelling opportunity for investors seeking contrarian exposure to the nuclear fuel cycle.