Premier American Uranium on Powering the U.S. Nuclear Revival

• Premier American Uranium is focused on consolidating and advancing uranium assets in the United States.
• Key project in New Mexico is on private land, with 23.5M lb current resource and PEA is planned by early summer 2025.
• Exploration project Cyclone in Wyoming also had a successful 2024 drilling identifying uranium mineralization trend, and is fully permitted for 2025 drill program with discovery potential.
• Company plans 25 additional drill holes in Wyoming in 2025 with potential to expand program.
• PUR's strategy is to acquire, explore and develop U.S. uranium projects, supported by major shareholders.

The global push towards clean energy is driving renewed interest and growth in the uranium sector. Nuclear power, fueled by uranium, offers a reliable, low-carbon baseload energy source that is crucial for the world's decarbonization efforts. As countries increasingly prioritize reducing greenhouse gas emissions to combat climate change, nuclear energy and the uranium that powers it are poised for significant growth in the coming years. For investors looking to capitalize on this mega-trend, the uranium sector presents a compelling opportunity.

Rising Demand for Uranium

Global energy demand continues to rise, driven by population growth, urbanization and economic development, especially in emerging markets. At the same time, the urgent need to reduce carbon emissions is prompting a shift away from fossil fuels towards clean energy sources. Nuclear energy is uniquely positioned to help meet this growing demand for reliable, affordable, clean baseload power.

Many countries are now prioritizing the expansion of their nuclear fleets in order to reduce reliance on fossil fuels and achieve carbon reduction targets. China, for example, has set ambitious goals to increase its nuclear capacity from around 50 GWe currently to 120-150 GWe by 2030. India plans to increase its nuclear power capacity over threefold by 2031. Additionally, many existing nuclear reactors are seeking extensions to their operating lives.

Interview with President & CEO, Colin Healey

Tightening Uranium Supply

While demand for uranium is clearly rising, supply is likely to struggle to keep pace in the near to medium term. Uranium prices have been depressed for much of the last decade following the Fukushima disaster in 2011, leading to years of underinvestment in new mine supply.

Many industry experts believe that even the restarts and production increases announced by major miners will be insufficient to meet rising demand. Additional mine supply will be required, however the long lead time involved in bringing new uranium projects online creates the conditions for a tight market.

According to Colin Healey, CEO of Premier American Uranium,

"We're in an extremely bullish scenario for uranium. We're looking at some of the best fundamentals in the uranium sector since post Fukushima."

Healy sees the current market as not giving "proper recognition" to the strong underlying fundamentals.

Geopolitical Drivers

In addition to the supply/demand fundamentals, there are increasing geopolitical drivers favoring the uranium sector, particularly in the U.S. With Russia's invasion of Ukraine and the subsequent global energy crisis, energy security has become a top priority. Countries are looking to reduce reliance on imported oil and gas. The U.S. is also taking steps to revitalize its domestic nuclear industry and reduce dependence on Russian and other foreign sources of uranium.

Both the Biden administration and Congress have taken action to support the U.S. uranium industry, including the establishment of a national strategic uranium reserve. The reserve is expected to directly support established U.S. uranium mines through long-term supply contracts. There are also bipartisan legislative efforts to implement a domestic purchasing quota for U.S. utilities. If passed, such policies would accelerate the development of U.S. uranium projects.

U.S. Uranium Development

For investors looking to gain exposure to a potential bull market in uranium, U.S. uranium developers represent an attractive opportunity. These are the companies at the forefront of reviving the domestic industry. Many are advancing low-cost, previously producing projects that can be brought online relatively quickly to meet rising demand.

Importantly, U.S. projects have the advantage of operating in a stable, mining-friendly jurisdiction. They are also poised to benefit from bipartisan political support and improving sentiment towards domestic supply. With the U.S. accounting for nearly a third of global nuclear power generation, having economic deposits on home soil is becoming increasingly important. According to Healey:

"New Mexico is historically the fourth largest uranium producing jurisdiction in the world. [Premier American Uranium] company is focused on private land in the Grants Mineral Belt with nearly 350 million pounds of historic production."

The Investment Thesis for Premier American Uranium

• Only U.S.-focused pure-play uranium developer, consolidating domestic projects
• Flagship New Mexico project has 23.5M lb current resource with PEA underway, located on private land with past producing open pit and underground mines
• Second project in Wyoming saw successful 2024 drilling and is fully permitted for 2025 drill program with discovery potential
• Tight share structure with major strategic shareholders and uranium-focused institutions owning 56%, aligning with investors
• Near-term catalysts include updated resource and PEA at New Mexico project by early summer, drilling in Wyoming in H2, and potential M&A
• Exposure to rising uranium price and improving U.S. uranium sentiment, potential to benefit from strategic reserve and possible domestic quotas
• Led by experienced management team with history of success in uranium sector

The uranium sector has entered a new bull market, driven by the fundamentals of rising demand, constrained supply, and growing geopolitical support. For investors, this mega-trend could create generational opportunities. By doing proper due diligence to identify companies with the right projects and people, uranium exposure offers significant potential portfolio upside and a way to benefit from the global clean energy transition.

Macro Thematic Analysis

The global macro backdrop is increasingly favoring nuclear power and the uranium sector. Countries around the world are grappling with the dual challenges of meeting rising energy demand while rapidly decarbonizing to combat climate change. Nuclear offers a compelling solution as a reliable, affordable, clean energy source, leading many governments to prioritize reactor builds and extend the lives of existing plants. At the same time, Russia's invasion of Ukraine has brought energy security to the forefront. The U.S. and its allies are looking to cut dependence on Russian energy while also shoring up domestic supply chains. The uranium sector sits at the nexus of these mega-trends - benefiting from the push to expand nuclear power and growing focus on securing domestic supply. As these trends accelerate, they create powerful long-term fundamentals for the sector.