IsoEnergy Advances Tony M Mine Restart Plans with Bulk Sample Program

• IsoEnergy has launched a bulk sample program at the Tony M uranium mine in Utah, collecting approximately 500 tons of ore for pilot-scale testing to optimize processing and reduce operational costs.
• The company is evaluating ore sorting and high-pressure slurry ablation technologies that could significantly improve economics by reducing haulage costs and increasing processing efficiency.
• Tony M holds current mineral resources of 6.6 million pounds indicated and 2.2 million pounds inferred, with existing infrastructure including 18 miles of underground development and toll milling agreements with Energy Fuels.
• The mine benefits from full state and federal operating permits, saving 3-5 years in development time and over $1 million in permitting costs compared to greenfield projects.
• IsoEnergy's diversified portfolio includes the ultra-high-grade Hurricane deposit in Saskatchewan, the pending Toro Energy acquisition adding 78.1 million pounds of Australian resources, and multiple past-producing Utah mines positioning the company for near-term production potential.

IsoEnergy Targets Utah Mine Restart Through Advanced Testing Program

As uranium markets strengthen amid growing nuclear energy demand and concerns over fuel supply security, junior uranium companies with near-term production potential are attracting increased investor attention. IsoEnergy Ltd. has taken a significant step toward potentially restarting production at its Tony M uranium mine in Utah by initiating a comprehensive bulk sample program designed to optimize processing technology and economics.

The move comes at a pivotal time for domestic uranium production in the United States. The Department of Energy recently awarded $2.7 billion in contracts to boost enrichment capacity for both low-enriched uranium and high-assay low-enriched uranium, underscoring government commitment to rebuilding the domestic nuclear fuel cycle. IsoEnergy's Tony M mine, which produced approximately 1 million pounds of uranium before ceasing operations in 2008, represents one of the few permitted, previously-producing assets capable of returning to production relatively quickly.

The bulk sample program announced on January 15, 2026, involves collecting approximately 500 tons of ore from the mine's existing underground workings for pilot-scale testing of ore sorting and high-pressure slurry ablation technologies.

Building a Diversified Uranium Platform

IsoEnergy has positioned itself as a diversified uranium company operating across three Tier-1 mining jurisdictions: Canada, the United States, and Australia. The company's strategy focuses on acquiring and developing projects at various stages of development, providing exposure to near-term production potential, medium-term development assets, and longer-term exploration upside.

The company's flagship asset is the Hurricane deposit at the Larocque East project in Saskatchewan's Athabasca Basin. Hurricane hosts one of the world's highest-grade published indicated uranium resources at 48.6 million pounds grading 34.5 percent uranium oxide. Located just 40 kilometers from Orano's McClean Lake mill, Hurricane represents a potential future source of high-grade uranium in a region experiencing depletion of existing resources as Cameco's Cigar Lake mine approaches the end of its productive life.

IsoEnergy's acquisition strategy has built substantial resource scale while creating optionality across different jurisdictions and regulatory environments. The pending acquisition of Toro Energy, announced in October 2025, will add 78.1 million pounds of measured and indicated resources and 34.6 million pounds of inferred resources in Western Australia's Wiluna Uranium Project.

The Tony M Mine: Infrastructure & Permitting Advantages

The Tony M mine in Utah's Henry Mountains district offers several distinct advantages that reduce the typical risks and timelines associated with uranium development projects. Most significantly, the property holds all key state and federal operating permits, including approvals from the Bureau of Land Management, Utah Division of Oil, Gas and Mining, and various environmental and water use permits. This comprehensive permitting package saves an estimated three to five years in development time and over $1 million in permitting costs compared to developing a greenfield project.

Existing infrastructure at Tony M includes 18 miles of underground development consisting of two parallel declines extending 10,200 feet, a power generation station, fuel storage facility, ore bins, maintenance buildings, offices, and dry facilities. An evaporation pond is already in place for water management. This infrastructure, while requiring rehabilitation and updating, provides a substantial head start compared to building from scratch.

The mine's mineral resource estimate, updated in September 2022, comprises 1.185 million tons grading 0.28 percent uranium oxide in the indicated category containing 6.6 million pounds, plus 404,000 tons grading 0.27 percent in the inferred category containing 2.2 million pounds. Historical drilling included approximately 6,500 holes from surface and underground totaling over 1.5 million feet, providing extensive geological knowledge.

Bulk Sample Program: Testing Path to Improved Economics

The newly initiated bulk sample program represents a critical de-risking step before committing to full-scale mine restart. IsoEnergy is collecting approximately 500 tons of ore from the existing underground workings, representing a pilot-scale quantity sufficient to test processing technologies under realistic conditions. The program focuses on two primary objectives: evaluating ore sorting technology to reject waste before transport, and testing high-pressure slurry ablation as an alternative processing method.

"This bulk sample program represents a critical milestone in our evaluation of the Tony M Mine. By testing advanced ore sorting and processing technologies at pilot scale, we aim to significantly enhance project economics through reduced haulage costs and improved processing efficiency."

Ore sorting technology has advanced significantly since Tony M last operated, potentially allowing the rejection of barren or low-grade material at the mine site before incurring transportation costs to the mill. Given that Tony M ore would be trucked to Energy Fuels' White Mesa mill under existing toll milling agreements, reducing the volume of material requiring transport could substantially improve project economics.

High-pressure slurry ablation represents an innovative processing approach that may offer advantages for certain uranium ore types. This technology uses high-pressure water jets to disaggregate ore particles and liberate uranium minerals without conventional crushing and grinding, potentially reducing energy costs and improving uranium recovery.

Aiming for Domestic Supply in a Constrained Market

The Tony M bulk sample program occurs against a backdrop of tightening global uranium supply and increasing emphasis on domestic fuel sources. The United States currently imports the vast majority of its uranium requirements, with significant portions historically sourced from Russia and its allied states. Legislative actions including the Prohibiting Russian Uranium Imports Act and the establishment of a domestic uranium reserve have created both challenges and opportunities for U.S. uranium producers.

The Department of Energy's recent $2.7 billion commitment to domestic enrichment capacity expansion signals government recognition of supply chain vulnerabilities. The funding supports both conventional low-enriched uranium for the existing reactor fleet and high-assay low-enriched uranium for advanced reactor designs. Three recipients received $900 million awards each, with an additional $28 million to Global Laser Enrichment for next-generation technology.

IsoEnergy's portfolio of U.S. assets positions the company to potentially supply this expanding domestic market. Beyond Tony M, the company controls the Daneros and Rim mines, also in Utah with existing permits and infrastructure, plus historical resources at the Sage Plain project.

Toro Energy Acquisition: Expanding Scale & Jurisdiction Diversity

IsoEnergy's pending acquisition of Toro Energy, announced in October 2025 and expected to close in the first half of 2026, represents a transformational transaction that significantly expands the company's resource base and jurisdictional diversity. Under the scheme of arrangement, Toro shareholders will receive 0.036 IsoEnergy shares for each Toro share, implying consideration of approximately A$0.585 per share based on IsoEnergy's October 10, 2025 closing price.

The transaction adds Toro's flagship Wiluna Uranium Project in Western Australia, which hosts 78.1 million pounds of measured and indicated resources and 34.6 million pounds of inferred resources across three deposits: Centipede-Millipede, Lake Maitland, and Lake Way. A scoping study completed on Lake Maitland demonstrates potential standalone project viability, and Japan Australia Uranium and Itochu hold rights to acquire a 35 percent interest in Lake Maitland for $39.6 million.

Australia represents an attractive jurisdiction for uranium development, ranking number one globally for uranium resources and fourth for production. Western Australia's mining-friendly regulatory environment, established infrastructure, and skilled labor force provide advantages, though current state policy does not permit uranium mining.

Hurricane Deposit: Long-Term Value Driver

While near-term attention focuses on Tony M's restart potential, IsoEnergy's long-term value proposition centers substantially on the Hurricane deposit in Saskatchewan's Athabasca Basin. Hurricane hosts 48.6 million pounds of indicated resources grading 34.5% uranium oxide, making it one of the world's highest-grade published indicated uranium resources. The deposit also contains 2.7 million pounds of inferred resources grading 2.2%.

Hurricane's location approximately 40 kilometers from Orano's McClean Lake mill positions it as a potential replacement source for the mill as Cameco's Cigar Lake mine depletes. Cigar Lake currently produces approximately 18 million pounds annually but production is expected to drop significantly after 2034, declining to approximately 7 million pounds in 2035 and 1 million pounds in 2036.

The 2025 drilling program at Hurricane significantly expanded the mineralized footprint, with multiple uranium intersections along the Hurricane Main and South trends. A winter 2026 program comprising approximately 5,200 meters in 13 holes is planned to build on this momentum, targeting newly outlined trends and structurally favorable zones.

Financial Position & Market Context

IsoEnergy's financial position as of September 30, 2025 included approximately C$72 million in cash & equivalents plus C$51 million in equity holdings. The company maintains a conservative capital structure with C$5.5 million in convertible debentures convertible at $17.32 per share, maturing December 2027.

The uranium spot price has shown significant volatility but general strength over the past several years, reflecting tightening supply-demand fundamentals. The World Nuclear Association's 2025 Fuel Report projects uranium demand to rise approximately 30 percent by 2030 and more than double by 2040 as new reactor construction accelerates globally.

IsoEnergy's share price of C$15.06 as of 16th January 2026 reflects a basic market capitalization of approximately C$820 million. The company benefits from strong institutional and corporate backing including NexGen Energy holding approximately 30.1 percent, uranium-focused ETFs holding approximately 13.2 percent combined, and Energy Fuels holding 3.9 percent.

The Investment Thesis for Uranium Development Companies

• Accumulate diversified uranium developers with permitted production-stage assets if spot prices sustain above $80 per pound.
• Prioritize companies with 50+ million pounds of measured and indicated resources across multiple jurisdictions to mitigate regulatory risk.
• Favor developers with toll milling agreements in place, eliminating capital requirements for processing infrastructure.
• Monitor DOE uranium reserve purchases and enrichment capacity expansions as leading indicators for domestic production demand.
• Consider junior uranium producers trading below $15 per pound in-ground value as potential accumulation opportunities.
• Evaluate management track records of bringing mines into production or successfully selling projects to majors as key selection criteria.

IsoEnergy's initiation of the bulk sample program at Tony M represents a concrete step toward potential near-term uranium production from a fully permitted, past-producing asset with existing infrastructure. The program's focus on ore sorting and advanced processing technologies addresses key economic considerations while potentially improving overall project economics through enhanced efficiency. Results expected over the coming months will inform management's assessment of restart viability and timing.

The company's diversified portfolio provides exposure across multiple value drivers and time horizons. Near-term focus on Tony M restart potential addresses investor demand for production-stage assets in the uranium sector, while Hurricane's ultra-high-grade resource base positions the company as a potential future major producer in Saskatchewan's Athabasca Basin. The pending Toro acquisition adds significant scale, diversifies jurisdiction exposure, and provides access to scoping-level projects in Australia.

For investors seeking leveraged exposure to uranium prices through a diversified, multi-jurisdiction developer with near-term production potential, IsoEnergy presents a compelling investment case at current valuations relative to both peers and the company's resource base.

TL;DR

‍IsoEnergy launches pilot-scale ore sorting and processing tests at Utah's permitted Tony M uranium mine with 8.8 million pounds of resources, targeting potential restart decision while advancing ultra-high-grade Hurricane deposit in Saskatchewan and completing Toro Energy acquisition to add 78+ million pounds of Australian resources.

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