IsoEnergy Positions for Production Revival with Strategic Tony M Uranium Mine Development

• IsoEnergy has initiated a bulk sample program at Tony M mine, representing a critical step toward potential production restart in Utah's proven uranium district
• The company's diversified portfolio spans three tier-one jurisdictions (U.S., Canada, Australia) with 133.0 Mlbs M&I and 39.4 Mlbs Inferred resources through the pending Toro Energy acquisition
• Tony M mine offers near-term production potential with existing permits, infrastructure, and toll milling agreements already in place
• The Hurricane deposit in Saskatchewan's Athabasca Basin contains 48.6 million pounds Indicated at 34.5% U3O8 grade
• Strategic positioning captures uranium market upside as nuclear energy demand accelerates globally

IsoEnergy Ltd. has emerged as a leading diversified uranium company strategically positioned across three premier mining jurisdictions. The company's portfolio spans from past-producing mines in Utah to ultra-high-grade deposits in Canada's Athabasca Basin and large-scale development projects in Western Australia through its pending acquisition of Toro Energy.

The company's current NI 43-101 resources total 55.2 million pounds M&I and 4.8 million pounds Inferred, according to company technical reports. The pending Toro Energy acquisition adds 78.1 million pounds M&I and 34.6 million pounds Inferred JORC resources, creating a combined pro forma resource base of 133.0 million pounds M&I and 39.4 million pounds Inferred. This substantial uranium endowment positions IsoEnergy among the sector's most well-resourced companies.

Founded by proven uranium sector leaders including veterans from NexGen Energy, IsoEnergy has built its strategy around operational excellence and strategic asset accumulation. The management team includes CEO Phil Williams, who co-founded Uranium Resources Corporation, and Chairman Richard Patricio, co-founder of NexGen and former CEO of Mega Uranium. This experienced leadership brings decades of uranium sector expertise spanning exploration, development, and operations.

Key Development: Tony M Mine Bulk Sample Program

IsoEnergy's recent initiation of a bulk sample program at the Tony M uranium mine represents a pivotal milestone in the company's near-term production strategy. The program supports ongoing technical and economic studies for potential mine restart, demonstrating the company's systematic approach to bringing production assets online in response to strengthening uranium market fundamentals.

The Tony M mine, located in Utah's Henry Mountains district, offers significant restart advantages built on proven operational history. The facility produced over 1 million pounds of uranium from 1979 to 2008, establishing a track record in this prolific uranium region. Current mineral resources, as reported in the September 9, 2022 technical report, total 6.6 million pounds Indicated at 0.28% U3O8 and 2.2 million pounds Inferred at 0.27% U3O8.

Critical infrastructure remains in place from previous operations, including 18 miles of underground development with parallel declines extending 10,200 feet. Surface facilities include power generation stations, fuel storage, ore bays, maintenance buildings, offices, and evaporation ponds. The presence of existing state and federal permits, combined with toll milling agreements with Energy Fuels' White Mesa Mill, eliminates significant development timelines typically associated with uranium mine startups.

Strategic Significance of Diversified Portfolio

The pending Toro Energy acquisition fundamentally transforms IsoEnergy's resource profile and geographic diversification. The transaction, structured as a scheme of arrangement, values Toro Energy at approximately C$68.1 million based on October 2025 exchange rates. Toro shareholders will receive 0.036 IsoEnergy shares for each Toro share, representing a 79.7% premium to Toro's October 10, 2025 closing price.

"The acquisition of Toro Energy includes the flagship Wiluna Uranium Project in Western Australia, a scoping-level uranium-vanadium project comprising the Centipede-Millipede, Lake Way, and Lake Maitland deposits. This complements IsoEnergy's diversified portfolio, including past-producing U.S. mines, the ultra-high-grade Hurricane deposit in Canada's Athabasca Basin, and multiple development and exploration assets across Canada, the U.S., and Australia."

The deposit contains 48.6 million pounds Indicated at 34.5% U3O8 and 2.7 million pounds Inferred at 2.2% U3O8, as reported in the July 8, 2022 technical report. Located 40 kilometers from Orano's McClean Lake mill, Hurricane benefits from proximity to established processing infrastructure in a world-class uranium district.

The Wiluna Uranium Project in Western Australia adds substantial scale with 78.1 million pounds M&I and 34.6 million pounds Inferred resources across multiple deposits. Australia ranks first globally for uranium resources and fourth for uranium production, according to World Nuclear Association data. Western Australia specifically offers established mining infrastructure and ranks 17th globally for investment attractiveness in the Fraser Institute's 2024 mining survey.

Current Market Context & Nuclear Energy Growth

Global nuclear energy expansion continues accelerating across multiple regions, driving structural uranium demand growth. The World Nuclear Association's 2025 Fuel Report projects uranium demand to rise approximately 30% by 2030 and more than double by 2040, reflecting both existing reactor operations and new nuclear capacity additions worldwide.

Nuclear power currently provides approximately 10% of global electricity generation through 440 operating reactors across 32 countries. An additional 60 reactors are under construction globally, with substantial new nuclear programs planned across Asia, Eastern Europe, and other regions. Small modular reactor technologies add further demand potential as these advanced designs progress toward commercial deployment.

Supply-side fundamentals reflect increasingly tight conditions as primary mine production struggles to meet growing demand. Kazakhstan dominates global uranium production at 39% of total output, followed by Canada at 24% and Namibia at 12%, according to World Nuclear Association statistics. However, several major producing regions face operational challenges, infrastructure constraints, and resource depletion issues that limit near-term supply growth potential.

Operational Activities & Development Pipeline

IsoEnergy maintains active development programs across its portfolio, with particular focus on advancing near-term production assets and expanding high-grade resources. At Tony M, ongoing work programs include ore sorting and high-pressure slurry ablation (HPSA) testing designed to evaluate high-efficiency material processing and reduce haulage and operating costs. Enhanced evaporation studies aim to reduce capital costs and accelerate dewatering by increasing evaporation rates at existing pond infrastructure.

The company's 2025 drilling program at Hurricane returned significant intersections demonstrating continued exploration upside. Hole LE25-207 intersected 1.61% U3O8 over 0.5 meters, while LE25-202 intersected 1.05% U3O8 over 0.5 meters in Area D, representing the strongest uranium intersection to date outside the Hurricane deposit proper. These results confirm structural continuity and expansion potential along established mineralized trends.

A planned 5,200-meter winter drilling program across 13 holes targets high-priority areas based on integrated summer exploration results. The program focuses on advancing newly outlined trends and structurally upgraded zones identified through detailed geological and geophysical analysis. This systematic exploration approach builds on Hurricane's exceptional grade characteristics while expanding the overall mineralized footprint.

Financial Position & Market Valuation

IsoEnergy maintains a strengthened financial position supporting its development strategy across multiple jurisdictions. As of September 30, 2025, the company reported C$72.2 million in cash and equivalents, providing operational flexibility for advancing key projects. The pending Toro Energy acquisition adds approximately C$4.2 million in additional cash to the combined entity.

The company's equity holdings portfolio, valued at approximately C$51.1 million as of December 15, 2025, includes strategic positions in NexGen Energy, Premier American Uranium, Atha Energy, Future Fuels, and Purepoint Uranium. These holdings provide additional exposure to uranium sector development while offering potential value realization opportunities as markets advance.

IsoEnergy's current market capitalization of approximately C$615 million reflects the company's diversified asset base and near-term production potential. The pro forma combined entity with Toro Energy will have approximately 59.2 million shares outstanding, with IsoEnergy shareholders owning 92.9% and Toro shareholders owning 7.1% of the combined company. This structure maintains IsoEnergy's dominant ownership while adding substantial resource scale.

Technical Advantages & Competitive Positioning

IsoEnergy's technical approach emphasizes systematic resource development and operational optimization across its portfolio. The company's technical team, led by VP Exploration Dan Brisbin with over 40 years of geological experience including extensive Cameco and Alamos background, provides deep expertise in uranium geology and deposit evaluation.

At Hurricane, the deposit's shallow depth of 325 meters with no water cover at surface offers significant development advantages compared to deeper Athabasca Basin deposits. Very high-grade mineralization extends up to 12 meters thick and 125 meters wide, providing substantial mining flexibility and ore grade control opportunities. The deposit's proximity to existing infrastructure and power sources further reduces development complexity and capital requirements.

The Utah operations benefit from existing toll milling arrangements with Energy Fuels' White Mesa Mill, North America's only conventional uranium processing facility. All IsoEnergy's Utah projects lie within trucking distance of this facility, eliminating the need for dedicated processing infrastructure and reducing capital intensity for production restart scenarios.

Investment Thesis for IsoEnergy

• Acquire exposure to near-term uranium production through Tony M restart potential, offering cash flow generation as markets tighten
• Diversify uranium exposure across three premier mining jurisdictions to reduce single-country regulatory and operational risks
• Leverage ultra-high-grade Hurricane deposit for maximum price sensitivity as uranium fundamentals strengthen
• Capitalize on large-scale Australian resources through Toro acquisition, providing long-term development optionality
• Position for M&A consolidation opportunities with strengthened balance sheet and diversified asset base
• Benefit from proven management team's track record in uranium sector value creation and operational excellence

IsoEnergy presents a compelling uranium sector investment through its combination of near-term production potential, world-class development assets, and strategic geographic diversification. The company's methodical approach to asset development, experienced management team, and substantial resource base position it to capitalize on strengthening uranium fundamentals driven by accelerating nuclear energy adoption globally.

The pending Toro Energy acquisition significantly expands resource scale while providing exposure to Australia's premier uranium jurisdiction and established mining infrastructure. With nuclear power demand projected to grow substantially through 2040 and uranium supply facing structural constraints, IsoEnergy's diversified platform offers multiple value creation pathways across different market scenarios and development timeframes. The company's near-term production optionality through Tony M restart, combined with ultra-high-grade Hurricane development potential, provides both cash flow generation capability and maximum leverage to uranium price appreciation.

TL;DR

‍IsoEnergy advances near-term uranium production through Tony M mine restart while building world-class development pipeline across three premier jurisdictions, positioning for uranium market recovery driven by nuclear energy growth.

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