Standard Uranium - Powering the Future of Clean Energy in the Athabasca Basin

• Standard Uranium is a Canadian junior uranium exploration company with a project generator model in Saskatchewan, focusing on the Athabasca Basin.
• The company has 11 projects, with five drill programs planned for 2023, funded by JV partners, reducing dilution for shareholders.
• Standard Uranium's flagship project is the Davidson River project, located near NexGen Energy's Arrow Deposit, which the company will fund through capital raises.
• The company has a strong technical team led by Sean Hillacre, and has established partnerships with First Nations groups in the regions where they operate.
• Standard Uranium believes the uranium market is driven by long-term fundamentals, with increasing demand and limited supply, making it an attractive investment opportunity.

Unlocking the Potential of Standard Uranium's Project Generator Model in the Athabasca Basin

The uranium market has experienced significant growth over the past year, with spot prices reaching highs of $106 per pound before settling in the low to mid $90s. Despite this recent pullback, the long-term fundamentals of the uranium market remain strong, driven by increasing demand and limited supply. As a result, uranium exploration companies like Standard Uranium (TSX-V: STND) present an attractive investment opportunity for those seeking exposure to this growing sector.

Interview with Chairman & CEO, Jon Bey

The Uranium Market

The global demand for uranium is expected to increase significantly over the next decade, as countries around the world seek to reduce their reliance on fossil fuels and transition to cleaner energy sources. Nuclear power, which relies on uranium as its primary fuel source, is seen as a key component of this transition, with many countries planning to expand their nuclear power generation capacity in the coming years.

However, the supply of uranium is limited, with few new mines coming online in recent years. This has led to a growing supply deficit, which is expected to persist in the coming years. As Jon Bey, CEO and Chairman of Standard Uranium, explains, "There is so much demand coming over the next decade, two decades, and the supply is just not there to meet it. And it won't be there unless more discoveries are made."

Standard Uranium's Project Generator Model

Standard Uranium is well-positioned to capitalize on this growing demand for uranium, thanks to its unique project generator model. The company has 11 projects in the Athabasca Basin of Saskatchewan, one of the world's most prolific uranium mining regions. Rather than funding exploration on all of these projects itself, Standard Uranium has partnered with other companies to fund exploration on five of its projects.

Under this model, Standard Uranium's JV partners agree to spend a certain amount of money on exploration over a three-year term, while also paying Standard Uranium cash and shares, as well as a 10% fee to operate the project. In return, the JV partners can earn up to a 75% interest in the project.

As Bey explains, "All our G&A is covered. So it's a fantastic opportunity for Standard. And that's basically a similar program to what's happening with our other JV projects as well."

This project generator model allows Standard Uranium to advance multiple projects simultaneously, without diluting its shareholders. In total, the company has secured $31 million in funding commitments from its JV partners, which will allow it to fund exploration on its projects for the next three years.

The Davidson River Project

While Standard Uranium's JV projects provide a steady stream of funding and news flow, the company's flagship project is the 100%-owned Davidson River project. Located just 25 kilometers east of NexGen Energy's Arrow Deposit, which is expected to be one of the world's largest uranium mines, the Davidson River project has the potential to host a similar high-grade deposit.

Standard Uranium plans to fund exploration on the Davidson River project through traditional capital raises, with the goal of making a significant discovery. As Bey notes, "Every time you go to the market and try to raise capital to do a drill program, you're diluting your shareholders. So by taking four or five of our projects and using the project generator model, we're able to have all those projects paid for without diluting our shareholders. Now the only project that we're keeping for ourselves 100% is our Davidson or a flagship, and we will do capital raises on that yearly to fund exploration on that program alone."

A Strong Technical Team

One of Standard Uranium's key strengths is its strong technical team, led by Sean Hillacre. The company's geologists have extensive experience exploring for uranium in the Athabasca Basin, and are constantly learning and refining their techniques with each drill program.

As Bey explains, "Every time you get the drillers and you get your drill on site, they are learning a ton. So you want to continue to develop your young, hungry, smart geologists, give them more information, really figure out how to vector in on those projects."

This expertise is particularly valuable in the Athabasca Basin, where uranium exploration is notoriously challenging. As Bey notes, "You can't take a driller from Africa or down in somewhere in the U.S. and pop them into the Athabasca Basin and expect them to have success. It's extremely challenging work and having good vendors knowing what they're doing is pretty important."

Partnerships with First Nations

In addition to its strong technical team, Standard Uranium has also established strong partnerships with First Nations groups in the regions where it operates. The company has signed agreements with the Clearwater River Dene Nation (CRDN) and YNRL First Nations groups, which provide a framework for consultation and benefit-sharing as the company advances its projects.

As Bey explains, "For us, we look at it as a partnership and we want to work with our First Nations partners to help them have success as we have success. So from day one, we've been into the meeting with our First Nations partners before we step foot on any ground or any of the regions we work."

These partnerships are critical for operating in the Athabasca Basin, where social license is increasingly important. As Bey notes, "For us and for our partners in the First Nations world, it's been a very good relationship. And we continue to support each other as we move forward."

The Investment Thesis for Standard Uranium

• Standard Uranium offers exposure to the growing uranium market through its portfolio of 11 projects in the Athabasca Basin, one of the world's most prolific uranium mining regions.
• The company's project generator model allows it to advance multiple projects simultaneously, without diluting shareholders, thanks to $31 million in funding commitments from JV partners.
• Standard Uranium's flagship Davidson River project has the potential to host a high-grade uranium deposit similar to NexGen Energy's Arrow Deposit, and will be funded through traditional capital raises.
• The company has a strong technical team with extensive experience exploring for uranium in the Athabasca Basin, as well as established partnerships with First Nations groups in the region.
• With the uranium market expected to experience significant growth in the coming years, driven by increasing demand and limited supply, Standard Uranium presents an attractive investment opportunity for those seeking exposure to this sector.

Key Takeaways

Standard Uranium is well-positioned to capitalize on the growing demand for uranium in the coming years. With its portfolio of 11 projects in the Athabasca Basin, funded through a combination of JV partnerships and traditional capital raises, the company offers investors exposure to the potential for significant discoveries in one of the world's most prolific uranium mining regions.

The company's strong technical team and partnerships with First Nations groups provide a solid foundation for success, while its project generator model allows for multiple shots on goal without diluting shareholders. As the uranium market continues to grow, driven by the global transition to cleaner energy sources, Standard Uranium presents a compelling investment opportunity for those seeking exposure to this sector.

Macro Thematic Analysis

The uranium market is poised for significant growth in the coming years, driven by the increasing global demand for clean energy. As countries around the world seek to reduce their carbon emissions and combat climate change, nuclear power is emerging as a key component of the energy mix.

However, the supply of uranium is limited, with few new mines coming online in recent years. This has led to a growing supply deficit, which is expected to persist as demand continues to rise. As a result, uranium prices are expected to increase in the coming years, benefiting companies like Standard Uranium that are well-positioned to capitalize on this trend.

As Standard Uranium CEO Jon Bey explains, "Uranium is based on fundamentals. There is so much demand coming over the next decade, two decades, and the supply is just not there to meet it. And it won't be there unless more discoveries are made."