IsoEnergy Strengthens Portfolio & Balance Sheet with Mountain Lake Acquisition & C$26.25 Million in Financings

• IsoEnergy acquired 100% interest in the Mountain Lake uranium project in Nunavut from Future Fuels in exchange for shares and royalties.
• The acquisition adds to IsoEnergy's portfolio of uranium assets in Canada, the U.S. and Australia across various stages of development.
• IsoEnergy closed a C$20 million bought deal flow-through share offering to fund exploration across its Canadian uranium projects.
• The company also completed a C$6.25 million concurrent private placement with major shareholder NexGen Energy to maintain its 31.8% stake.
• With a strengthened asset base and financial position, IsoEnergy is well positioned to create value from the rising uranium market.

IsoEnergy Ltd. (TSX:ISO) is a leading uranium company with a portfolio of high-quality assets located in Canada, the United States and Australia. The company's primary focus is on advancing its flagship Larocque East project in Saskatchewan's Athabasca Basin, home to the high-grade Hurricane uranium deposit. IsoEnergy also holds past-producing conventional uranium and vanadium mines in Utah. With a strong track record of exploration success and a pipeline of projects spanning early to advanced stages, IsoEnergy provides exposure and leverage to a rising uranium price environment.

Acquisition of Mountain Lake Project

IsoEnergy completed the acquisition of a 100% interest in the Mountain Lake uranium project in Nunavut, Canada from Future Fuels Inc. The Mountain Lake property covers 5,625 hectares in the prospective Hornby Bay Basin.

The consideration paid by IsoEnergy consists of:

• 12.5 million IsoEnergy common shares issued to Future Fuels on closing
• 2.5 million deferred shares to be issued once IsoEnergy's ownership of Future Fuels remains below 19.9% on a partially diluted basis
• A 2% net smelter return (NSR) royalty on the Mountain Lake property, with a 1% buyback right for C$1 million
• A 1% NSR on Future Fuels' other properties in Nunavut

The shares issued are subject to contractual resale restrictions over 18 months. IsoEnergy has also secured certain investor rights including board nomination and participation rights for as long as it owns over 10% of Future Fuels.

Commenting on the acquisition, Future Fuels CEO Rob Leckie stated:

"We are thrilled to complete this transformational acquisition of the Mountain Lake Property, marking an exciting new chapter for Future Fuels. The Mountain Lake Property is located in a highly prospective region, and we look forward to unlocking its full potential with our planned exploration programs."

The acquisition enhances IsoEnergy's pipeline and provides additional exploration upside in an underexplored uranium district. Management can now evaluate future exploration programs to expand and upgrade the historic uranium resources at Mountain Lake.

Flow-Through Financing & Concurrent Private Placement

IsoEnergy announced the closing of a bought deal private placement proceeds of C$20.0 million, including the full exercise of an over-allotment option. The financing was led by Stifel Canada.

The company intends to use the proceeds to incur eligible Canadian exploration expenses that qualify as flow-through critical mineral mining expenditures to fund exploration programs at its projects in Saskatchewan and Quebec. The qualifying expenditures will be renounced to subscribers of the flow-through shares with an effective date of December 31, 2025.

Concurrently, IsoEnergy also closed a non-brokered private placement with major shareholder NexGen Energy Ltd. NexGen acquired 2.5 million IsoEnergy common shares at C$2.50 per share for gross proceeds of C$6.25 million. The private placement allows NexGen to maintain its pro rata 31.8% ownership interest in IsoEnergy following the flow-through share offering. Proceeds from this financing will be used for general working capital purposes.

The financing transactions strengthen IsoEnergy's balance sheet and provide significant funding to aggressively advance exploration at the company's Canadian uranium projects. In particular, the flow-through structure provides a favorable tax incentive to efficiently raise capital for exploration activities.

Exploration & Growth Plans

With the Mountain Lake acquisition and financing now complete, IsoEnergy is well funded to ramp up exploration across its portfolio of uranium projects in Canada. The company's immediate priority is to complete additional drilling and advance the high-grade Hurricane zone at Larocque East.

Discovered in 2018, Hurricane ranks as one of the most significant uranium discoveries in the Athabasca Basin in recent years. Based on drilling completed to date, Hurricane hosts an Indicated Mineral Resource of 48.61 million pounds U3O8 at an average grade of 34.5% U₃O₈, making it the highest-grade undeveloped uranium deposit globally.

The winter 2025 exploration program at Larocque East will involve a substantial amount of infill and expansion drilling to grow the Hurricane zone and advance it towards prefeasibility stage. Regional exploration drilling will also be carried out to follow up on other promising targets on the large property. With road access in place and situated close to existing uranium mills, Larocque East has potential to become a strategic, high-grade feed source amid growing demand from nuclear utilities.

Aside from Larocque East, IsoEnergy also plans to conduct exploration programs at its other Saskatchewan projects, as well as the newly acquired Mountain Lake property in Nunavut. Although still at an earlier stage, Mountain Lake represents an attractive secondary asset that provides IsoEnergy with additional long-term optionality and exploration upside in a prospective but underexplored region.

Uranium Market Outlook

IsoEnergy's progress comes against a favorable backdrop for the uranium industry, with the market showing continued signs of recovery after an extended period of low prices. Several new nuclear reactors are under construction globally while existing reactors are seeking to extend their operating lives, driving demand growth. At the same time, supply has been constrained by production cuts, lack of investment in new mines and end of reserve life for some deposits.

As a result, the spot uranium price has risen to around US$50 per pound recently, well above the sub-$30 levels seen for much of the last decade. With the market now in a structural deficit and utilities starting to return to long-term contracting, many analysts expect prices to head higher in the coming years as demand continues to outstrip supply.

Against this positive macro environment, IsoEnergy is well positioned to benefit from rising uranium prices and growing investor interest in the uranium sector. Through a combination of organic exploration and strategic M&A, the company has assembled a diversified portfolio of high-quality assets in proven mining jurisdictions. With the potential for multiple discoveries and resource growth, IsoEnergy provides robust exposure to a strengthening uranium market.

For Investors

In conclusion, IsoEnergy has started 2025 on a positive note with the successful completion of the Mountain Lake acquisition and financing transactions. These deals enhance the company's asset base and financial strength, leaving it well placed to deliver on its growth plans.

With a rising uranium price, IsoEnergy appears to be in the right place at the right time. Backed by a proven management team, the company is moving rapidly to explore and develop its uranium projects in Canada. The high-grade Hurricane zone provides a strong foundation and clear path to value creation, while earlier-stage assets like Mountain Lake provide longer-term optionality and exploration upside.

As IsoEnergy continues to advance its projects and build resources, the company is well positioned to re-rate higher and emerge as a key player in the uranium industry. Investors should watch IsoEnergy closely as it aims to become the next low-cost uranium producer in a market facing growing demand and constrained supply.