IsoEnergy & Purepoint Uranium Form Strategic Joint Venture

• IsoEnergy and Purepoint Uranium form joint venture covering 98,000 hectares in Saskatchewan's Eastern Athabasca Basin
• Initial ownership structure: IsoEnergy (60%) and Purepoint (40%), with options to adjust to 50/50
• Portfolio includes 10 projects along the uranium-rich Larocque Trend, home to the Hurricane deposit
• IsoEnergy to invest $1 million in Purepoint through concurrent equity financing
• Purepoint to operate during exploration phase, with IsoEnergy taking control during pre-development

Company Overviews

IsoEnergy Ltd. (TSX: ISO, OTCQX: ISENF) stands as a globally diversified uranium company with a strategic portfolio spanning Canada, the United States, and Australia. The company's crown jewel is the Hurricane deposit within the Larocque East project in Saskatchewan's Athabasca Basin, boasting the world's highest-grade indicated uranium mineral resource. Beyond Canada, IsoEnergy maintains a portfolio of permitted, past-producing uranium and vanadium mines in Utah, positioned for rapid restart through an existing toll milling arrangement with Energy Fuels. This dual-focus strategy provides investors exposure to both exploration upside and near-term production potential.

Purepoint Uranium Group Inc. (TSXV: PTU, OTCQB: PTUUF) is an established explorer in the Athabasca Basin with a proven track record of operating joint ventures with industry leaders. The company has built strategic partnerships with major players including Cameco Corporation, Orano Canada Inc., and most recently, IsoEnergy Ltd. Purepoint's project portfolio includes several highly prospective uranium properties, with their flagship Hook Lake project previously yielding impressive results of 10 meters at 10.3% U₃O₈. The company also holds a promising VHMS project strategically positioned adjacent to Foran Corporation's McIlvena Bay project, demonstrating their ability to identify and secure valuable mineral assets beyond uranium. Through their proactive exploration strategy and strong industry partnerships, Purepoint has established itself as a key player in one of the world's premier uranium districts.

These companies are joining forces to create a significant presence in the eastern Athabasca Basin through their newly announced joint venture. Watch our interview with Purepoint's President and CEO Chris Frostad, to learn more.

Strategic Joint Venture Analysis

The newly announced joint venture between IsoEnergy and Purepoint Uranium marks a significant consolidation in the Athabasca Basin's uranium exploration landscape. By combining 98,000 hectares of prospective ground, the partnership establishes one of the largest consolidated land packages along the highly prospective Larocque Trend, strategically positioning both companies to capitalize on growing uranium demand.

The partnership leverages complementary strengths: Purepoint's proven operational expertise in Basin operations combines with IsoEnergy's technical knowledge from the Hurricane discovery. This synergy creates a powerful platform for exploration success, enhanced by geographic advantages through the consolidation of contiguous land packages along the Larocque Trend.

From a market perspective, the joint venture significantly strengthens both companies' positions in the uranium sector. The partnership now controls key portions of the uranium-rich Larocque Trend, establishing a dominant land position in the eastern Athabasca Basin. This regional dominance, coupled with proximity to existing discoveries and infrastructure, creates a compelling exploration and development opportunity.

The execution framework includes clear near-term priorities such as integrating technical databases and developing unified exploration strategies, while medium-term objectives focus on advancing high-priority targets to drill-ready status. The venture's competitive advantages include improved capital efficiency, enhanced technical capabilities, and greater strategic flexibility in project advancement.

This consolidation could catalyze further strategic partnerships in the Athabasca Basin while establishing new benchmarks for property packages and exploration approaches. With multiple avenues for future value creation, including additional property acquisitions and development options, the joint venture represents a significant evolution in both companies' strategic positioning, creating a robust platform for sustained value creation in the uranium sector.

Portfolio Composition

The joint venture combines a substantial portfolio from both companies, with IsoEnergy contributing eight key projects: Geiger, Thorburn Lake, Full Moon, Edge, Collins Bay Extension, North Thorburn, 2Z Lake, and Madison Projects. Purepoint brings two strategic assets to the partnership: the Turnor Lake and Red Willow Projects. Together, these properties create a commanding presence in the eastern Athabasca Basin.

Strategic Rationale

The joint venture's strategic value centers on its commanding position along the Larocque Trend, a proven corridor for uranium mineralization that hosts the Hurricane deposit and several other significant high-grade occurrences. This consolidation creates a district-scale exploration opportunity that significantly enhances the discovery potential for both companies. The strategic placement of the combined properties, particularly near Cameco/Orano's Dawn Lake joint venture, positions the partnership to potentially uncover additional high-grade deposits along this productive trend.

The collaboration leverages each company's core strengths – IsoEnergy's robust financial position and proven discovery success at Hurricane, combined with Purepoint's extensive operational expertise in the Basin. This synergy is further enhanced by IsoEnergy's strategic $1 million equity investment in Purepoint, which not only demonstrates commitment to the partnership but also provides exposure to Purepoint's other prospective projects, including the promising Hook Lake property with its historic intersection of 10 meters at 10.3% U₃O₈.

By consolidating these assets under a single operational structure, the joint venture creates economies of scale, optimizes exploration efficiency, and establishes a stronger platform for future discoveries. The arrangement also provides flexibility in ownership structure through various options, ensuring both partners can optimize their participation as the projects advance.

Operational Structure

The operational framework establishes a clear governance structure while maintaining flexibility for both parties. IsoEnergy will initially hold a 60% stake, with Purepoint controlling the remaining 40%. A unique feature of the agreement allows for ownership adjustment to an equal 50/50 split within the first six months through mutual put/call options. Looking ahead, IsoEnergy has secured an additional option to purchase 1% from Purepoint for $2 million, potentially increasing its stake to 51%. Purepoint will leverage its regional expertise by operating during the exploration phase, with IsoEnergy taking the reins during pre-development stages.

Financial Aspects

The financial structure of the deal includes several key components:

• A $1 million strategic investment by IsoEnergy in Purepoint through concurrent equity financing
• Purepoint's 10:1 share consolidation, resulting in approximately 50.1 million outstanding shares
• A private placement offering of up to $2 million at $0.30 per unit
• Three-year warrants priced at $0.40 included in the unit offering

The agreement also includes protection mechanisms for both parties, such as standard dilution provisions and a 2% NSR option if either party's interest falls below 10%. Additionally, IsoEnergy gains the right to participate in future Purepoint financings to maintain its pro rata ownership position.

The Investment Thesis for IsoEnergy

IsoEnergy presents a compelling investment opportunity for uranium sector investors, supported by several key factors:

Asset Quality & Diversification

• World-class Hurricane deposit provides foundational value
• Strategic expansion through the Purepoint JV
• Near-term production potential from Utah assets
• Geographic diversification across stable mining jurisdictions

Strategic Positioning

• Dominant position along the Larocque Trend
• Multiple discovery opportunities through consolidated land package
• Operational flexibility through JV structure
• Balance of exploration upside and production potential

Market Timing

• Growing global demand for nuclear energy
• Supply constraints in uranium market
• Rising uranium prices supporting project economics
• Increasing institutional interest in uranium sector

Key Takeaways & Implications

The formation of this joint venture represents a significant consolidation of strategic uranium assets in the Athabasca Basin, positioning IsoEnergy as an increasingly important player in the global uranium sector. The transaction demonstrates the company's ability to execute on its growth strategy while maintaining focus on its core assets.

The combination of IsoEnergy's financial strength and Purepoint's operational expertise creates a powerful partnership with enhanced discovery potential.For investors, this joint venture offers increased exposure to discovery potential while maintaining the company's existing production optionality. The structure of the deal, including the equity investment and operational control mechanisms, suggests a well-thought-out approach to resource development and risk management.

As the global nuclear energy sector continues to grow, IsoEnergy's expanded portfolio and strategic positioning make it an increasingly attractive vehicle for uranium sector exposure.The success of this joint venture could serve as a template for further consolidation in the Athabasca Basin, potentially catalyzing additional strategic partnerships and asset optimization across the sector.

For both retail and institutional investors, IsoEnergy's enhanced profile and expanded asset base warrant serious consideration as a core uranium sector holding.