IsoEnergy Acquires Anfield Energy to Boost U.S. Uranium Production & Secure Strategic Mill Assets

• IsoEnergy to acquire Anfield Energy in an all-stock transaction
• Deal secures Shootaring Canyon Mill, one of only three licensed uranium mills in the US
• Combined portfolio expected to expand near-term US uranium production capacity
• Transaction values Anfield at approximately $126.8 million
• Closing expected in Q4 2024, subject to shareholder and regulatory approvals

About IsoEnergy

IsoEnergy Ltd. (TSX: ISO; OTCQX: ISENF) is a leading, globally diversified uranium company with substantial current and historical mineral resources in top uranium mining jurisdictions of Canada, the United States, and Australia. The company's assets are at varying stages of development, providing near, medium, and long-term leverage to rising uranium prices. IsoEnergy's flagship project is the Larocque East Project in Canada's Athabasca Basin, home to the Hurricane deposit, which boasts the world's highest grade Indicated uranium Mineral Resource. Additionally, the company holds a portfolio of permitted, past-producing conventional uranium and vanadium mines in Utah with a toll milling arrangement in place with Energy Fuels Inc.

The Anfield Acquisition: A Strategic Move

On October 2, 2024, IsoEnergy announced a transformative acquisition of Anfield Energy Inc. (TSX.V: AEC; OTCQB: ANLDF; FRANKFURT: 0AD) in an all-stock transaction valued at approximately $126.8 million. This strategic move is set to significantly enhance IsoEnergy's position in the uranium sector, particularly in the United States.

The transaction will see IsoEnergy acquire all issued and outstanding common shares of Anfield, with Anfield shareholders receiving 0.031 of a common share of IsoEnergy for each Anfield share held. This exchange ratio implies a consideration of $0.103 per Anfield share, representing a 32.1% premium based on the 20-day volume-weighted average trading prices of both companies.

Key Assets & Resources

A key asset in this acquisition is the Shootaring Canyon Mill, located in southeastern Utah. This facility is one of only three licensed, permitted, and constructed conventional uranium mills in the United States. The mill, while currently on standby, has a history of production and comes with a radioactive source materials license. Anfield has already submitted a restart application to increase the mill's throughput from 750 stpd to 1,000 stpd and expand its licensed annual production capacity from 1 million lbs U₃O₈ to 3 million lbs U₃O₈.

The combined portfolio resulting from this merger is expected to provide substantial increased uranium production potential in the short, medium, and long term. This expansion of near-term U.S. uranium production capacity aligns well with the growing demand for nuclear power and the associated need for domestic uranium supply.

In addition to the Shootaring Canyon Mill, the acquisition brings a portfolio of conventional uranium and vanadium projects in Utah, Colorado, New Mexico, and Arizona. These assets complement IsoEnergy's existing U.S. operations, creating a more robust and diversified production pipeline.

The transaction is expected to result in meaningful growth in U.S. uranium mineral endowment. The combined current mineral resources will amount to 17.0 Mlbs Measured & Indicated (+157%) and 10.6 Mlbs Inferred (+382%). Historical mineral resources will total 152.0 Mlbs Measured & Indicated (+14%) and 40.4 Mlbs Inferred (+33%), positioning the pro forma company among the largest in the U.S.

Strategic Rationale & Synergies

IsoEnergy's CEO and Director, Philip Williams, emphasized the strategic importance of this acquisition:

"IsoEnergy is committed to becoming a globally significant, multi-asset uranium producer in the world's top uranium mining jurisdictions. The U.S. is a key jurisdiction for us, and we believe today's acquisition of Anfield strengthens both our resource base and near-term production potential."

The transaction is expected to create several operational synergies. The proximity of the combined portfolio in Utah and Colorado is anticipated to reduce transportation costs, increase operational flexibility for mining and processing, reduce G&A costs on a per lb basis, and diversify risk through multiple production sources.

Management Perspectives

From Anfield's perspective, CEO and Director Corey Dias sees this as an excellent opportunity for shareholders:

"This Transaction underscores our view that Anfield acquired the right assets in the right place at the right time."

He highlighted the economic synergies expected from combining Anfield's mill and mining assets with IsoEnergy's U.S. mining assets, particularly the advanced-stage Tony M mine located within 4 miles of the Shootaring Canyon mill.

Transaction Details & Conditions

The transaction has received unanimous approval from the boards of directors of both IsoEnergy and Anfield. It will be effected by way of a court-approved plan of arrangement under the Business Corporations Act (British Columbia). Completion of the deal is subject to several conditions, including approval by at least 66 2/3% of Anfield shareholders and a simple majority of IsoEnergy shareholders.

To facilitate the transaction, IsoEnergy has provided a bridge loan of approximately $6.0 million to Anfield, with an interest rate of 15% per annum and a maturity date of April 1, 2025. This loan is intended to satisfy Anfield's working capital and other obligations through to the closing of the transaction.

The Investment Thesis for IsoEnergy

The acquisition of Anfield Energy presents a compelling investment opportunity for those looking to gain exposure to the uranium sector. Here's why investors should consider IsoEnergy:

• Enhanced U.S. Production Potential: The addition of the Shootaring Canyon Mill and Anfield's portfolio of uranium and vanadium projects significantly boosts IsoEnergy's near-term production potential in the United States. This positions the company to capitalize on the growing demand for domestic uranium supply.
• Strategic Asset Diversification: The transaction diversifies IsoEnergy's asset base both geographically and across the production timeline. From the high-grade Hurricane deposit in Canada to near-term production assets in the U.S., IsoEnergy offers investors exposure to multiple stages of the uranium production cycle.
• Market Timing: With increasing global focus on clean energy and nuclear power's role in achieving climate goals, uranium demand is expected to rise. IsoEnergy is positioning itself to meet this demand, potentially benefiting from higher uranium prices.
• Operational Synergies: The combined portfolio, particularly in Utah and Colorado, is expected to yield significant operational synergies. These efficiencies could translate into improved profitability and shareholder value.
• Strong Management Team: IsoEnergy's management has demonstrated strategic vision with this acquisition. Their ability to identify and execute on value-accretive opportunities bodes well for future growth.
• Exposure to Multiple Uranium Jurisdictions: IsoEnergy offers investors exposure to top uranium mining jurisdictions globally, including Canada's Athabasca Basin, the United States, and Australia.

IsoEnergy's acquisition of Anfield Energy marks a significant step in the company's journey to become a leading global uranium producer. This strategic move enhances IsoEnergy's near-term production potential in the United States, diversifies its asset base, and positions the company to capitalize on the growing demand for nuclear energy. The transaction not only secures access to one of only three licensed uranium mills in the U.S. but also substantially increases IsoEnergy's resource base and production capacity.

The deal comes at a time when the nuclear industry is gaining momentum, driven by increasing global recognition of nuclear power's role in achieving clean energy goals. By combining IsoEnergy's high-grade Canadian assets with Anfield's U.S. portfolio, the resulting company offers investors exposure to multiple stages of uranium production across top mining jurisdictions.

While the transaction presents significant opportunities, it also comes with challenges, including the need for successful integration of assets, navigating regulatory landscapes, and managing the cyclical nature of the uranium market. However, with a strong management team, operational synergies, and a diverse asset base, IsoEnergy appears well-positioned to navigate these challenges and potentially deliver substantial value to shareholders in the coming years.

As the global focus on clean energy intensifies and nations seek to secure domestic supplies of critical minerals, IsoEnergy's expanded portfolio and production potential make it a company to watch in the evolving landscape of uranium production.