GTI Energy Powers Up a Promising US ISR Uranium Project

• GTI Energy is developing ISR uranium projects in Wyoming's Powder River Basin. The company's flagship asset. the Lo Herma project, is located in a prolific uranium mining district known for its amenable geology and established infrastructure.
• GTI is aiming to update the resource estimate at Lo Herma to 7-8 million pounds U₃O₈ at a grade of approximately 600 ppm by the end of the year. This resource update will incorporate results from the company's ongoing drilling program, which has expanded the mineralized strike length and identified additional uranium in the deeper Fort Union formation.
• Peer projects of similar size to Lo Herma, such as Ur-Energy's Shirley Basin and enCore Energy's Gas Hills, are economic at current uranium prices. Recent Pre-Feasibility Studies on these projects have demonstrated robust economics at $80/lb U₃O₈, with all-in sustaining costs estimated around $40/lb.
• GTI is fully funded to complete a scoping study on Lo Herma in the first half of 2025, which will provide an initial economic assessment of the project. The company is also actively exploring various financing options to further advance the project, including strategic partnerships, project sales, or other non-dilutive funding alternatives.
• In addition to Lo Herma, GTI Energy also holds a portfolio of earlier-stage uranium projects in Utah's Henry Mountains district and Wyoming's Great Divide Basin. While Lo Herma remains the priority focus, these additional projects provide GTI with a pipeline of future growth opportunities that the company may choose to advance or monetize in the future as market conditions warrant.

GTI Energy (GTI) is an emerging uranium development company focused on in-situ recovery (ISR) projects in the prolific Powder River Basin of Wyoming. With a resource update expected by year-end and a scoping study planned for H1 2025, GTI offers investors exposure to a well-located, economic uranium project with near-term catalysts.

Advancing Lo Herma Uranium Project

GTI's flagship asset is the Lo Herma ISR uranium project in Wyoming's Powder River Basin. Lo Herma boasts a NI 43-101 compliant Inferred Mineral Resource of 5.71 million pounds U₃O₈ grading over 600 ppm. Notably, this is production-grade for ISR mines in the Powder River and Great Divide Basins.

Ongoing drilling aims to increase the resource to 7-8 million pounds and upgrade the classification level. GTI CEO Bruce Lane commented,

"We've extended the strike to the north of the project area and we've also latched onto some deeper mineralization in the Fort Union formation which is what Cameco produces out of 10 miles to our east."

Project Economics

The 7-8 million pound resource target is significant, as it matches the size of Ur-Energy's economic Shirley Basin project and enCore's Gas Hills project, both located nearby. Recent Pre-Feasibility Studies (PFS) for these peer projects demonstrated robust economics at uranium prices around $80/lb, with all-in sustaining costs near $40/lb.

"Based on that, around that 7 or 8 million pounds mark with an exploration upside potential is a very attractive investment proposition," stated Lane. GTI is using a price assumption of $80-82/lb for its studies, in-line with current long-term contracting prices.

Catalysts: Resource Update and Scoping Study

GTI expects to deliver an updated resource estimate in early December. Following this key milestone, the company plans to swiftly complete a scoping study.

"We think we can get that done certainly in the first half of next year, maybe even in the first quarter," remarked Lane. "There's a point there of inflection, a catalyst if you like, around an understanding of what the value of the project is."

While GTI could develop Lo Herma independently, the company is open to strategic alternatives to maximize shareholder value.

"We're looking at other ways to fund and finance the project that aren't dilutive to shareholders," Lane explained. "Whether we can find a farm-in partner or we can find somebody to maybe we could even sell the project, those are all options we're looking at."

Interview with Executive Director Bruce Lane

Additional Exploration Upside

Beyond the current resource, Lo Herma offers substantial exploration upside. GTI has drilled 960 holes into the project thus far.

"If we were to drill another couple hundred holes next year, we think we'd get good yield from that because we're obviously not wildcat drilling," noted Lane. "They're not wild catting these, we've got a very good idea of where the trends are and we can delineate further resource fairly confidently with extra drilling."

Portfolio Depth

In addition to Lo Herma, GTI holds a portfolio of uranium properties in Utah's Henry Mountains district and Wyoming's Great Divide Basin. While Lo Herma remains the priority, these projects provide GTI with a pipeline of future growth opportunities. The Utah assets are particularly promising given their proximity to Energy Fuels' White Mesa Mill and IsoEnergy's Shootaring Canyon Mill.

Conclusion

GTI Energy offers investors a compelling opportunity to gain exposure to an economic, advanced-stage ISR uranium project in the Powder River Basin. With a resource update and scoping study expected in the near-term, GTI is well-positioned to unlock the value of its Lo Herma project. Strong uranium fundamentals, driven by growing demand and supply deficits, provide an attractive macro backdrop. As a proven uranium mining jurisdiction, Wyoming offers a clear permitting path for responsible ISR development. GTI's experienced management team, significant exploration upside, and portfolio of additional projects further enhance the investment thesis.

The Investment Thesis for GTI Energy

• GTI Energy's flagship Lo Herma project is an economic in-situ recovery (ISR) uranium project located in Wyoming, USA, which is considered a Tier-1 mining jurisdiction due to its stable political environment, established regulatory framework, and supportive local communities.
• GTI Energy has several near-term catalysts that could significantly enhance the project's value and investor interest, including an upcoming resource update expected by the end of the year and a scoping study planned for completion in the first half of 2025.
• Beyond the current 7-8 million pound resource target, Lo Herma offers significant exploration upside potential to further grow the resource base. GTI Energy has identified several high-priority exploration targets within the project area that could potentially host additional uranium mineralization.
• GTI Energy is actively exploring strategic options to maximize shareholder value, including the potential sale of the Lo Herma project or a farm-out agreement with a larger uranium producer.
• In addition to Lo Herma, GTI Energy maintains a portfolio of earlier-stage uranium projects in Wyoming's Great Divide Basin and Utah's Henry Mountains district. These projects provide the company with a pipeline of future growth opportunities and enhance its overall exploration potential.
• As a pure-play uranium developer, GTI Energy offers investors direct leverage to rising uranium prices, which are expected to increase due to growing demand for nuclear energy and ongoing supply deficits in the global uranium market.
• Higher uranium prices would significantly improve the economics of GTI's projects and could lead to a re-rating of the company's valuation.
• GTI Energy is led by an experienced management team with a proven track record in the uranium industry. The team has a deep understanding of the ISR mining method and has successfully advanced similar projects in the past.

Actionable advice for investor is to consider establishing a position ahead of the upcoming resource estimate and scoping study, two key near-term catalysts. Monitor GTI's progress in expanding the resource through exploration drilling. Look for announcements regarding strategic partnerships, financing agreements, or M&A activity.

Macro Thematic Analysis

The outlook for the uranium sector is robust, underpinned by strong demand growth and looming supply deficits. The increasing global push for decarbonization is driving demand for nuclear power as a reliable, emissions-free baseload energy source. Simultaneously, years of low uranium prices have curtailed exploration and development, leading to a structural supply deficit.

In the US, support for nuclear energy is on the rise, with the Biden administration targeting a tripling of nuclear capacity by 2050. The recent US infrastructure bill included significant funding for the nuclear industry, aiming to extend the life of existing reactors and support the development of next-generation technologies.

However, the US currently imports over 90% of its uranium needs, creating a strategic vulnerability. The Russian invasion of Ukraine has only heightened the focus on securing domestic uranium supply chains. This is leading to a strong policy push to revive the US uranium industry, including the establishment of a national uranium reserve.

Key Takeaway

GTI Energy's Lo Herma ISR uranium project is shaping up to be an economic development opportunity in the Powder River Basin of Wyoming. An upcoming resource estimate is expected to show 7-8 million pounds of production-grade uranium, on par with similar-sized peer projects. A scoping study will follow, providing a first look at project economics. With ample exploration upside, a portfolio of additional projects, and strategic optionality, GTI offers investors multiple avenues to benefit from rising uranium prices. The company's experienced team and location in a proven uranium mining jurisdiction further de-risk the investment thesis.