Latitude Uranium - Expanding a Top-Tier Uranium Asset as Prices Rise

• Latitude Uranium holds a 43 million-pound uranium resource at its Angilak project in Nunavut.
• Recent drilling added high-grade intercepts and expanded mineralization.
• The company is raising $5-6 million to fund more drilling in 2024 to grow the resource.
• The goal is to increase Angilak's resource above 100 million pounds to attract potential partners/acquirers.
• Additional exploration prospects in Labrador provides upside potential.

About Latitude Uranium

Canadian uranium exploration company Latitude Uranium holds an extensive land package at its flagship Angilak uranium project, located in Nunavut, Canada. The project contains the Lac 50 Trend deposit, which hosts a NI 43-101 inferred resource of 43 million pounds U3O8 with significant expansion potential. Latitude Uranium also holds a portfolio of uranium exploration projects and prospects in Labrador, Canada.

In a recent interview, Latitude Uranium's Chief Executive Officer John Jentz provided an update on developments at Angilak. They also outlined plans to raise additional capital to fund more drilling, with the goal of growing the project resource inventory to over 100 million pounds. For investors, Angilak offers a compelling combination of expansion potential and a clear path towards resource delineation and economic studies.

Interview with Chief Executive Officer, John Jentz

Drilling Hits High-Grade Mineralization, Expands Footprint

Latitude completed 18 drill holes at Angilak in 2023, with assay results received so far for the first 9 holes. Highlights include an intercept of 7.54% U3O8 over 1.9 meters in one hole. While not all holes intersected significant mineralization, the program successfully expanded the footprint of high-grade zones. As Jentz summarized:

"The best hole was hole number five, 7.5% over 1.9 meters. And there's a cross-section provided in the press release, which people can look at. They can look at the three historic holes. The fourth hole is hole number 5 at around 200 meters. You can visually line it up. You can see that we're adding pounds."

This demonstrates Latitude's ability to add resources and highlights the significant remaining expansion potential at Angilak through additional drilling.

Raising Capital to Increase Resources Above 100 Million Pounds

Buoyed by these positive results, Latitude Uranium plans to raise $5-6 million in additional capital by the end of 2023. These funds will support a 2024 drill program focused on expanding resources. As management explained:

"Our plan's intact for next year, drilling again and updating the resource at the end of next year. And that really delves into why we as a company and the board decided that we should raise money. It really de-risks next year's plan."

The goal is to ultimately grow Angilak resources above 100 million pounds. In management's view, this size resource would position Angilak as a top five global uranium deposit and make it more appealing for potential acquirers or partners.

Advancing Towards Economic Studies

Expanding Angilak's resources will also advance the project towards preliminary economic assessment (PEA). While hesitant to commit fully to a PEA yet, Jentz explained that even a preliminary study could outline a viable production scenario:

"Give it a serious haircut down to 20 million pounds. Cut it in half, cut it a little bit more than half. Put it to reserves, fine. What do you have there? You have about a million and a half to two million pounds a year."

They believe Angilak could support a profitable $100 million per year mining operation at that scale. Additional drilling and resources would only improve projected economics.

Strategies for Exploration Companies in a Rising Uranium Market

Latitude Uranium wants to maintain flexibility in how it advances Angilak. Producing a PEA pins the project into a certain development path that can be hard to change later. The company is monitoring how the uranium market is evolving. Additional drilling allows time to evaluate if definitive economic studies will be rewarded by investors soon or if more resource growth is first needed. Either way, Latitude sees Angilak on a 3-5 year timeframe to initial production depending on the pace of advancement. This positions the project to either attract a potential acquirer looking to bring new production online or allows Latitude to advance the project incrementally towards production while minimizing dilution.

The uranium market has seen substantial price increases over the past 2 years, with spot prices rising from around $25 in 2020 to over $74 recently. However, many uranium exploration companies do not yet have clear plans to capitalize on higher prices.

While higher prices do not immediately impact explorers without production, these companies need strategies to attract investor interest. Jentz notes, the market is evolving, and explorers cannot "stick our head in the sands and hope for the best."

Some options for Latitude Uranium include:

• Accelerating exploration and drilling to outline resources and a clear path to potential production. The goal is to show investors a tangible timeline.
• Considering smaller-scale development scenarios that can reach production faster. Investors are now more focused on explorers demonstrating near-term cash flow potential.
• Evaluating if the market will reward resource definition drilling or if completing economic studies like preliminary economic assessments (PEAs) can better highlight upside.
• Emphasizing optionality in development strategies instead of sticking to predefined paths. Companies need to be flexible in adapting to changing market sentiments.
• Communicating aggressive yet realistic timeframes for possible initial production, such as 3-5 years. Investors want to see explorers advancing projects ahead of rising uranium prices.

Overall, uranium explorers need proactive strategies to translate investor optimism around rising uranium prices into interest in their specific assets and companies. They cannot rely on rising prices alone to attract attention and need clear plans to systematically advance assets towards production within a compressed timeframe. By positioning themselves to take advantage of bullish uranium market dynamics, exploration companies can unlock substantial value even before reaching production.

The Investment Thesis for Latitude Uranium

• Angilak hosts a large, high-grade 43 million-pound uranium resource open for expansion through additional drilling.
• Assay results demonstrate continued exploration success in expanding mineralization.
• Raising $5-6M will support aggressive drilling to outline a +100 million pound world-class resource.
• Resource growth de-risks Angilak and provides a clear path to economic studies and development decisions within 3-5 years.
• Upside from potential discovery at additional exploration projects in Labrador.
• Latitude Uranium offers investors exposure to resource expansion and a near-term path to production amid rising uranium prices.

Latitude Uranium has a clear strategy to unlock value at its flagship Angilak uranium project through systematic resource expansion drilling. Assay results continue to demonstrate the significant growth potential remaining at Angilak. Raising additional capital will support an aggressive 2024 drill program targeting a world-class resource inventory. Growing Angilak to over 100 million pounds would position the project as one of the most attractive uranium development projects globally. It would also de-risk the path towards economic studies, production decisions, and potential corporate interest within a 3-5-year timeframe. With additional exploration upside, Latitude Uranium offers investors exposure to a top-tier uranium resource with expansion and near-term development potential.