Premier American Uranium Advances Cebolleta Project with Updated Resource Estimate

• Premier American Uranium and American Future Fuel announce updated Mineral Resource Estimate for Cebolleta Uranium Project
• New estimate includes 18.6 million pounds of U3O8 in Indicated category and 4.9 million pounds in Inferred category
• Technical Report recommends exploration to expand deposit footprint and conduct a Preliminary Economic Assessment
• Project shows strong exploration potential with opportunities to increase total mineral resources
• Cebolleta Project is strategically located on private lands in New Mexico with a history of past uranium production

About Premier American Uranium

Premier American Uranium Inc. (TSXV: PUR) (OTCQB: PAUIF) is a uranium exploration and development company focused on consolidating and advancing uranium projects in key U.S. producing regions. The company holds extensive land positions in Wyoming's Great Divide Basin and Colorado's Uravan Mineral Belt, two historically significant uranium-producing areas. Backed by Sachem Cove Partners, IsoEnergy, and other institutional investors, Premier American Uranium boasts a team with deep U.S. uranium experience. The company's entry into the market is well-timed, coinciding with the strongest uranium fundamentals seen in a decade. For investors looking at Premier American Uranium, the company represents an opportunity to gain exposure to the resurgent U.S. uranium sector through a well-positioned player with strategic assets and experienced leadership.

Updated Mineral Resource Estimate Highlights Project Potential

Premier American Uranium Inc. and American Future Fuel Corporation have announced a significant milestone for their Cebolleta Uranium Project with the release of an updated Mineral Resource Estimate (MRE) and the filing of a new Technical Report. This development marks a crucial step forward for the project, located in Cibola County, New Mexico, and sets the stage for planned expansion drilling.

The updated MRE, prepared by SLR International Corporation with an effective date of April 30, 2024, presents a compelling case for the project's potential:

• Indicated Mineral Resource: 18.6 million pounds of eU3O8 (6.6 million short tons at an average grade of 0.14% eU3O8)
• Inferred Mineral Resource: 4.9 million pounds eU3O8 (2.6 million short tons at an average grade of 0.10% eU3O8)

These figures are based on a commodity price of US$80.00 per pound of U3O8, using cut-off grades of 0.072% eU3O8 for underground mining and 0.024% eU3O8 for open pit mining.

Importantly, the new MRE surpasses the historical Inferred Mineral Resource prepared in 2014, with approximately 80% of the previous Inferred Resource now upgraded to the Indicated category. This upgrade demonstrates the project's progression and the increasing confidence in its resource base.

Strategic Location & Historical Significance

The Cebolleta Uranium Project's location adds to its strategic value. Situated approximately 40 miles west of Albuquerque and 10 miles north of Laguna, New Mexico, the project encompasses 6,717 acres of privately held mineral rights and about 5,700 acres of surface rights. This positioning in a region with a rich history of uranium exploration and mining dating back to the 1950s provides the project with access to necessary infrastructure and resources.

The project area has seen significant past production, including:

• Climax M6 Mine (1956 to 1960): 78,722 short tons averaging 0.20% U3O8, producing 320,942 pounds of U3O8
• St. Anthony Mine Complex (1975 to 1979): 1.6 million pounds of U3O8
• Sohio JJ#1 Mine (1976-1981): 898,600 short tons averaging 0.123% U3O8, yielding 2,218,800 pounds of U3O8

This historical production underscores the area's uranium potential and provides valuable data for current exploration and development efforts.

Exploration Potential & Future Plans

One of the most exciting aspects of the Cebolleta Project is its exploration potential. The Technical Report highlights several areas for potential resource expansion:

1. Open-ended mineralization: The mineralized horizons of the Jackpile sandstone extend beyond the current drill grid, offering opportunities to expand known deposits.
2. Untested areas: Portions of the project area where the mineralized zone is present have not been comprehensively drill-tested, presenting new exploration targets.
3. Willie P area: This previously mined underground area, not included in the current MRE, is believed to have resource potential that could be further defined by integrating additional historic data.

The Technical Report recommends a focused exploration program to capitalize on these opportunities, including:

• Expansion drilling to grow the deposit footprint
• Collection of additional bulk density and chemical assays to confirm historical data
• Infill drilling to upgrade Inferred Resources to the Indicated category
• Updating the MRE with new drill data
• Completing a Preliminary Economic Assessment (PEA)

These recommendations provide a clear roadmap for Premier American Uranium to advance the Cebolleta Project and potentially enhance its economic value.

Market Implications & Investor Considerations

The release of this updated MRE comes at a pivotal time for the uranium market. With global demand for nuclear energy on the rise and supply constraints becoming more apparent, projects like Cebolleta are attracting increased attention from investors and industry players alike.For investors considering Premier American Uranium, several factors make the company an intriguing proposition:

1. Strategic Asset Portfolio: The Cebolleta Project joins Premier American Uranium's existing portfolio of assets in Wyoming and Colorado, providing diversification across key U.S. uranium-producing regions.
2. Experienced Management: The company's leadership team brings extensive experience in U.S. uranium exploration, development, and production, a crucial factor in navigating the complex regulatory and operational landscape.
3. Market Timing: With uranium prices showing strength not seen in a decade, Premier American Uranium is well-positioned to capitalize on improving market fundamentals.
4. Growth Potential: The exploration upside at Cebolleta, combined with the company's other projects, offers multiple avenues for resource growth and value creation.
5. Domestic Focus: As the U.S. seeks to secure domestic uranium supply for its nuclear power plants, companies with U.S.-based projects may benefit from supportive policies and increased industry interest.

Technical Aspects & Resource Estimation Methodology

The robustness of the updated MRE is underpinned by a comprehensive technical approach. SLR International Corporation employed industry-standard methodologies to develop the resource estimate, including:

• Geological modeling using Seequent's Leapfrog Geo software to define the Jurassic Morrison Formation and the Jackpile Sandstone Member
• Resource estimation using Seequent's Leapfrog Edge software, employing inverse distance cubed (ID3) interpolation
• Validation through statistical comparisons, visual reviews, and peer review processes

The estimation process incorporated data from 2,713 drill holes totaling 1,380,041 feet of drilling, representing a substantial dataset that enhances the reliability of the resource estimate.

Comparison to Historical Estimates & Production

The new MRE represents a significant improvement over historical estimates. By incorporating previously unaccounted areas such as the St. Anthony North pit and factoring in depletion from past production, the current estimate provides a more comprehensive and accurate picture of the project's resource base.

The upgrade of approximately 80% of the previous Inferred Resource to the Indicated category is particularly noteworthy, as it demonstrates increased geological confidence and may facilitate more advanced economic studies in the future.

Environmental & Social Considerations

While the press release focuses primarily on the technical aspects of the resource estimate, investors should also consider the broader environmental and social context of uranium mining projects. The Cebolleta Project's location on private lands in New Mexico may offer certain advantages in terms of permitting and stakeholder engagement compared to projects on federal lands.

However, uranium mining remains a sensitive topic in many communities, particularly in areas with a history of past mining activities. As Premier American Uranium advances the project, maintaining strong community relations and adhering to best practices in environmental stewardship will be crucial for long-term success.

Next Steps & Catalysts for Growth

With the updated MRE now complete, Premier American Uranium has a clear path forward for the Cebolleta Project. Key next steps and potential catalysts for the company include:

1. Initiation of expansion drilling programs to test the limits of known mineralization
2. Commencement of infill drilling to upgrade additional Inferred Resources
3. Collection of additional data to support future technical studies
4. Completion of a Preliminary Economic Assessment to provide initial economic parameters for the project
5. Ongoing exploration of the company's other uranium assets in Wyoming and Colorado

Each of these steps has the potential to add value to the project and the company as a whole, providing multiple opportunities for share price catalysts in the coming months and years.

Conclusion: A Strengthened Position in the U.S. Uranium Sector

The release of the updated Mineral Resource Estimate for the Cebolleta Uranium Project marks a significant milestone for Premier American Uranium. By confirming and expanding upon historical resources, the company has strengthened its position in the U.S. uranium sector and laid the groundwork for future development.

For investors, Premier American Uranium offers exposure to a portfolio of strategic uranium assets in established mining jurisdictions, backed by an experienced management team and supportive market fundamentals. The Cebolleta Project, with its substantial indicated resources and exploration upside, serves as a cornerstone asset that could drive value creation in the years to come.

As the global nuclear energy sector continues to grow and the need for secure, domestic uranium supplies becomes more pressing, companies like Premier American Uranium are well-positioned to benefit. While risks inherent to mineral exploration and development remain, the company's focus on advancing high-potential projects in favorable jurisdictions presents an attractive opportunity for investors seeking exposure to the uranium market.

With a clear strategy for growth, a strong technical foundation, and multiple avenues for value creation, Premier American Uranium represents a compelling investment proposition in the resurgent uranium sector. As the company continues to advance its projects and capitalize on market opportunities, investors will be watching closely for signs of continued progress and the potential realization of the Cebolleta Project's full economic potential.