• Premier American Uranium and Nuclear Fuels merge create America's leading uranium exploration and development company, with Nuclear Fuels shareholders receiving 41% of the combined entity and bringing $14 million in cash from their November 2024 financing round.
• The combined company will have the largest exploration drilling programs of any non-production uranium company in the US, with over 100,000 feet of drilling planned at Kaycee project in Wyoming and active programs at Cyclone project and Sevieta in New Mexico.
• Strategic positioning near existing infrastructure gives both Wyoming projects (Kaycee and Cyclone) access to licensed uranium processing facilities within 12-20 miles, potentially accelerating path to production through satellite operations or toll milling arrangements.
• Strong institutional backing includes Sachem Cove, IsoEnergy, and Mega Uranium, with enCore Energy holding a strategic buyback option on the Kaycee project that provides potential development partnership and funding at 2.5x exploration cost reimbursement.
• US market positioning and planned NYSE listing targets growing domestic uranium demand driven by AI-related nuclear investments and federal policy support, with expected inclusion in major uranium ETFs providing additional buying pressure.

The uranium sector stands at a critical inflection point as artificial intelligence demands drive unprecedented energy requirements and federal policy increasingly prioritizes domestic nuclear fuel security. Against this backdrop, the merger between Premier American Uranium and Nuclear Fuels represents a significant consolidation in the US uranium exploration space, creating what executives position as America's leading exploration and development platform with immediate access to capital, advanced-stage assets, and strategic infrastructure positioning.

Company Combination Creates Scale and Financial Strength

The merger structure provides Nuclear Fuels shareholders with 41% ownership of the combined entity, bringing together complementary asset portfolios and immediate financial resources. As Greg Huffman, CEO of Nuclear Fuels, explained:

"Nuclear Fields had a successful financing in November of 2024, where they raised $14 million, which was a great feat for any company really, but particularly for their size."

This cash injection addresses a critical need in uranium exploration, where access to capital has constrained many development programs. Colin Healey, CEO of Premier American Uranium, emphasized the strategic value:

"One of the most attractive things about Nuclear Fuels for us was the Kaycee project, but they also had successful financing. It was really comforting to see that market support for an asset that you're targeting."

The financial strength extends beyond immediate cash resources. Premier American Uranium's backing includes significant institutional investors, with Sachem Cove co-founded by Tim Rotollo, who serves as Premier's board chairman. Additional strategic shareholders include IsoEnergy and Mega Uranium, providing access to experienced uranium sector capital and expertise.

Dominant US Drilling Programs Target Resource Definition

The combined entity will operate what executives claim are the largest exploration drilling programs of any non-production uranium company in the United States. The Kaycee project in Wyoming alone has committed to at least 100,000 feet of drilling in 2025, building on what Huffman described,

"A very successful 2024 of both initially infill and extensional drilling on the historical resource, and then following up with a couple new discoveries as well."

The Sevieta project in New Mexico provides more advanced-stage exposure with existing 43-101 compliant resources. Huffman explained the strategic value:

"Having a PEA stage project that basically brought some 43-101 compliant pounds to our shareholder base - we really thought that was a good dovetail with our sort of exploration focus in Wyoming."

Accelerating Development Timeline

Both Wyoming projects benefit from proximity to existing licensed uranium processing facilities, a critical advantage that could significantly compress development timelines. The Kaycee project sits less than 20 miles from both Christensen Ranch and Nichols Ranch processing facilities, while Cyclone is positioned 12-14 miles from Lost Creek and the Sweetwater Mill.

The satellite operation model could provide faster cash flow generation compared to building standalone processing facilities. As uranium production ramps across the US, existing facilities will likely seek additional feed sources, potentially creating toll milling or satellite operation opportunities for projects of sufficient scale.

This drilling intensity reflects the companies' strategy to rapidly advance resource definition across multiple projects. The Kaycee project carries an exploration target ranging from 11.5 to 30 million pounds of uranium, while the Cyclone project targets 8-12 million pounds. These scale thresholds are significant. Healey noted,

"11.5 million pounds to me is beyond critical mass to be a satellite. I think that 2-3 years from now when those resources are probably being delineated, there it the existing processing facilities in the US looking for feed and expansion because there's going to be a push to grow uranium production in the US."

Interview with Greg Huffman, Nuclear Fuels & Colin Healey, Premier American Uranium

enCore Energy Strategic Partnership

Nuclear Fuels' strategic relationship with enCcore Energy, one of the largest US uranium producers, adds significant value through both equity ownership and a unique buyback option structure. Encore holds the right to repurchase the Kaycee project at 2.5 times exploration costs once measured and indicated resources reach 15 million pounds.

Rather than representing a threat to shareholders, executives frame this structure as providing development partnership optionality and risk mitigation. Huffman explained,

"It's a huge advantage with enCore, being one of the largest US uranium producers out of Texas and the two operations there, to have them not only on the register, but with that opportunity to potentially come in as a development partner at the asset level and even probably even more importantly as a funding partner."

The buyback structure provides operational control to management while offering potential liquidity at attractive multiples. Healey noted the favorable terms following due diligence,

"Two and a half times reimbursement of exploration costs when upon and this is an option that enCore has, so you have a lot of ability to affect whether or not they take up that option by how much work you do, the timing of when you put out a resource."

ETF Inclusion & US Listing Strategy Target

The enlarged company expects to qualify for inclusion in major uranium ETFs, including URJ, URMM, and potentially the Global X uranium ETF (URA). This inclusion could provide sustained buying pressure, particularly given the tightly held nature of many uranium exploration stocks. The company plans to pursue US listing following the merger close, targeting the larger US investor base and higher liquidity.

"It's a substantially larger market and investor pool than the Canadian market. So it could be a real catalyst and that it's the right vehicle for that," Healey explained.

This dual approach of ETF inclusion and US listing addresses a key challenge facing Canadian-listed uranium explorers: limited institutional access and trading liquidity.

Market Considerations

While the merger creates scale and strategic positioning, uranium exploration carries inherent geological and market risks. Resource targets remain unproven until confirmed through drilling, and uranium prices, while supportive, have historically exhibited volatility.

The exploration focus means cash flow generation remains years away, requiring continued capital access in potentially challenging market conditions. Additionally, the enCore buyback option, while structured favorably, could limit upside participation if the Kaycee project proves exceptionally valuable.

Regulatory and environmental permitting processes, particularly for new production facilities, can extend development timelines and increase costs. However, the companies' proximity to existing licensed facilities may provide alternative development pathways.

The Investment Thesis for Uranium

• Scale Advantage: Combined entity becomes the largest US uranium exploration drilling program, providing consistent news flow and multiple discovery opportunities across diversified project portfolio
• Infrastructure Access: Wyoming projects positioned within 12-20 miles of existing licensed processing facilities, enabling satellite operations or toll milling agreements that compress development timelines
• Financial Strength: $14 million cash position from Nuclear Fuels' recent financing plus institutional backing from Sachem Cove, IsoEnergy, and Mega Uranium provides multi-year drilling runway
• Strategic Partnership: Encore Energy relationship offers development optionality through 2.5x exploration cost buyback structure while maintaining operational control until 15 million pound resource threshold
• ETF Catalyst: Expected inclusion in URJ, URMM, and potentially URA ETFs combined with planned US listing targets institutional capital and improved liquidity
• Policy Tailwinds: Federal emphasis on domestic nuclear fuel security and Wyoming's agreement state status create supportive regulatory environment for permitting and development
• Resource Scale: Combined exploration targets of 19.5-42 million pounds across Wyoming projects plus existing 43-101 resources at Sevieta provide multiple value creation pathways
• Market Timing: Position to benefit from anticipated uranium price appreciation driven by AI electricity demands and limited global supply growth
• Experienced Management: Combined technical teams with proven Wyoming ISR experience and strong capital markets backgrounds
• Diversified Exposure: Portfolio spans exploration-stage Wyoming ISR projects through PEA-stage conventional project in New Mexico, providing risk-adjusted exposure across development spectrum

Federal Policy Tailwinds Support Domestic Uranium Development

US federal policy increasingly prioritizes domestic nuclear fuel supply chain development, creating a supportive regulatory environment for uranium exploration and production. Wyoming's status as an agreement state provides additional operational advantages, with proven ability to permit and develop ISR operations.

Huffman emphasized the policy momentum:

"As we advance through the year, and there's talk of additional executive orders specific to uranium, there's going to be a huge push for domestic to reignite that domestic uranium and nuclear fuel supply chain."

The companies position themselves to benefit from this policy support through their exclusive US asset focus. Healey noted the historical precedent:

"Remember back in the '60s, '70s, and into the early '80s, the US was self-sufficient from a uranium production perspective. The US has the ability to produce a lot of uranium, and I don't think that all the big uranium deposits have been found."

Current US uranium production meets minimal domestic demand, creating substantial opportunity for new development as nuclear power expands to meet AI-driven electricity requirements.

The Premier American Uranium-Nuclear Fuels merger creates a compelling investment opportunity in the US uranium exploration sector through strategic asset combination, financial strength, and favorable market positioning. The transaction addresses key challenges facing uranium explorers - access to capital, project scale, and infrastructure positioning - while providing multiple catalysts through drilling results, ETF inclusion, and potential US listing. With the increasing support of domestic uranium development and AI-driven electricity demand growth, the combined entity positions investors to benefit from anticipated uranium sector re-rating while maintaining exposure to significant exploration upside across a diversified project portfolio.