Purepoint Uranium - On the Hunt for the Next High-Grade Uranium Discovery in the Athabasca Basin

• Purepoint Uranium is focused on uranium exploration in the Athabasca Basin of Northern Saskatchewan, Canada, where the highest-grade uranium deposits in the world are found
• The company holds a large portfolio of exploration projects, some held 100% and others in joint ventures with Cameco and Orano
• Purepoint has done extensive preparatory geophysical and geological work to identify high-priority drill targets on its projects
• Drilling is currently focused on the 100%-owned Turnor Lake project, which is on trend with IsoEnergy's high-grade Hurricane zone discovery
• The company is well-funded to continue drilling for the rest of 2024 and is prioritizing targets based on incoming drill results and data

Purepoint Uranium Group is a uranium exploration company focused on making the next major high-grade uranium discovery in the Athabasca Basin of northern Saskatchewan, Canada. With a large portfolio of prospective projects, an experienced technical team, and strong financial and strategic partners, Purepoint is well-positioned to capitalize on the increasingly bullish fundamentals in the uranium sector.

Athabasca Basin: The Saudi Arabia of Uranium

The Athabasca Basin is arguably the world's best uranium exploration and mining jurisdiction. Accounting for 15-20% of the global uranium supply, the region is home to the highest-grade uranium deposits on the planet, with grades that are orders of magnitude higher than the global average.

The basin has been the source of several major discoveries over the past two decades, including Cameco's McArthur River (400 million pounds at 16.5% U3O8), NexGen Energy's Arrow (427 million pounds at 2.7% U3O8), and IsoEnergy's Hurricane zone (48.6 million pounds at 34.5% U3O8). These deposits are not only high-grade, but also tend to be relatively close to the surface and hosted in competent basement rocks, allowing for conventional underground mining methods.

According to Chris Frostad, Purepoint's President & CEO:

"The real attraction up there (in the Athabasca Basin) is the grades. There are a lot of double-digit type grade deposits, which is why that's where we operate. We've been working up there for several years now."

Purepoint's Exploration Approach: Data-Driven & Strategic

Exploring "unconformity-type" uranium deposits requires significant preliminary geophysical and geological work before drill targets can be confidently defined. This is especially true given the poddy nature of mineralization and the fact that deposits can easily be missed by drilling if targeting is off by more than 50 meters.

Over the past decade, Purepoint has undertaken extensive airborne and ground geophysical surveys, geologic mapping, and data compilation across its project portfolio to identify the most prospective structural corridors and drill targets. This prep work has included analyzing data generated by other companies and submitted to the provincial government.

Frostad elaborated on this data-driven exploration approach:

"Having gone back to projects we picked up 10-15 years ago, there's now been all kinds of work done around it. When we're evaluating and starting to vector in on those prospects, we're not just looking at data we've created on our own project, but we've got a large map now. We can show exactly where those structures are coming from, where the uranium's heading, where it's going, and it allows us to really narrow in on what we're looking for."

Interview with President & CEO Chris Frostad

Purepoint's Project Portfolio: Potential for Discovery

Purepoint holds a diverse portfolio of projects in various stages of exploration, from grassroots to drill-ready. The company's most advanced projects are held in joint ventures with uranium giants Cameco and Orano, while earlier-stage projects are 100% owned.

Flagship Projects

Hook Lake (21% Purepoint / 39.5% Cameco / 39.5% Orano):

• On trend with and adjacent to Fission's Patterson Lake South (PLS) and Triple R deposits
• Over $20 million invested in exploration by JV partners since 2007
• 2024 geophysical program planned to refine drill targets

Smart Lake (27% Purepoint / 73% Cameco):

• Adjacent to Cameo's former McArthur River mine, the world's largest high-grade uranium deposit
• Last drilled in 2012, intersecting uranium mineralization at the unconformity
• 2024 geophysical program planned ahead of potential 2025 drilling

100%-Owned Projects

Turnor Lake:

• Adjacent to IsoEnergy's Hurricane zone, with recent drill results including 38.8% U3O8 over 7.5m
• Completed geophysical surveying has identified prospective structures and drill targets
• Currently drilling with 2 rigs, fully funded for the remainder of 2024

Red Willow:

• Over 40,000 hectares with over $17 million invested in past exploration
• Multiple uranium showings and zones of strong hydrothermal alteration
• Drill-ready targets slated for testing in the second half of 2024

Tabbernor:

• The project consists of 34 claims that total 79,463 hectares
• The system hosts over 80 historic mines, plus gold occurrences
• Tabbenor crosscuts the Athabasca Basin's mine trend, aligning itself with 8 of Basin's largest uranium discoveries

Purepoint Uranium offers speculative exposure to the potential discovery of high-grade uranium deposits in the Athabasca Basin of Saskatchewan, Canada. The company's disciplined, data-driven approach to exploration and strong financial and strategic partnerships differentiate it from other junior explorers in the region. With several active drill programs planned for 2024, Purepoint is well-funded and positioned to capitalize on the increasingly bullish uranium market fundamentals.

Investment Thesis for Purepoint Uranium

• Exposure to a top jurisdiction: The Athabasca Basin is home to the highest-grade uranium deposits globally and has a record of major discoveries.
• Strong JV partners: Cameco and Orano provide financial/technical support and validate the prospectivity of Purepoint's JV projects.
• Data-driven exploration: Extensive geophysical surveying, data analysis and fieldwork has generated a robust pipeline of drill-ready targets.
• Catalysts on the horizon: Active drilling at Hook Lake and Turnor Lake could deliver a re-rating discovery in the near term.
• Proven team: Management has decades of uranium exploration experience and discovery success in the Athabasca Basin.
• Well-funded: ~$8 million cash position sufficient to fund exploration through 2023 and beyond.

Macro Uranium Thesis

The fundamentals for the uranium market are the strongest they've been in over a decade. A structural supply deficit, accelerating demand growth from nuclear energy, and a geopolitical reshuffling of the supplier base have conspired to put upward pressure on the uranium price, which now sits around $50/lb U3O8.

On the demand side, nuclear energy is emerging as a critical source of carbon-free, baseload power to help achieve global decarbonization targets. The International Energy Agency projects nuclear energy supply to double by 2050 under a net-zero emissions scenario. Over 50 new reactors are under construction globally, with hundreds more planned. At the same time, secondary supplies in the form of utility inventories, underfeeding, and government stockpiles are rapidly being drawn down.

On the supply side, global uranium production of ~130 million pounds annually falls significantly short of the ~180 million pounds utilities require annually. This structural deficit is exacerbated by major supply disruptions out of Kazakhstan, which accounts for over 40% of global production. Recent unrest in the country curtailed some production in January 2024. Furthermore, sanctions on Russia in response to the invasion of Ukraine have effectively removed another 15-20 million pounds of supply from Western utilities.

According to Purepoint Uranium President & CEO Chris Frostad: "A lot of uranium is now going to the States because of all the political nonsense going on around the world...somebody's going to find something. A lot of money has been put into the Athabasca Basin over the last 10 years, and a fair amount of uranium found."

Overall, the stage is set for a sustained period of higher uranium prices over the coming years. This should provide a tailwind for uranium exploration and development companies like Purepoint as they look to make that next world-class discovery in the Athabasca Basin.