Strategic JV's Power Ambitious 2025 Uranium Exploration Program

• Purepoint Uranium Group is exploring for uranium in Saskatchewan through joint ventures with major players like Cameco, Orano, and IsoEnergy
• This JV model allows Purepoint to explore extensively while minimizing share dilution, as partners cover a majority of exploration costs
• Purepoint believes the uranium market is in a long-term uptrend driven by growing demand and years of undersupply, even if spot prices are volatile
• Projects like Hook Lake and the newly formed JV with IsoEnergy provide exposure to highly prospective properties adjacent to major discoveries
• Purepoint is positioning itself to make discoveries as the uranium market continues to strengthen over the coming years

The uranium market has experienced a resurgence in recent years as the world increasingly turns to nuclear power as a reliable, carbon-free energy source. This has put a spotlight on uranium exploration companies that are positioning themselves to capitalize on rising demand and prices in the coming years. One company that stands out in this regard is Purepoint Uranium Group (TSXV:PTU), a Canadian junior explorer with a unique strategy and portfolio of projects in the world-class Athabasca Basin of Saskatchewan.

Purepoint's Joint Venture Model

What sets Purepoint apart is its joint venture model, where it partners with major established uranium miners to advance its exploration projects. This includes household names in the uranium space like Cameco and Orano, as well as the rapidly growing Athabasca-focused company IsoEnergy.

As Purepoint President and CEO Chris Frostad explains, this model has several key benefits for a junior explorer:

"All of these projects that I'm talking about, all of our partners are contributing financially to the advancement of these projects. If we look at Hook Lake, which is the one that it's probably the one we've been talking the most about over the years...we've spent tens of millions of dollars at that project...For every million dollars we put in the ground we have to come up with our $210,000 but we get back $100,000 as a management fee in terms of running that project."

In essence, Purepoint is able to punch above its weight, exploring its properties as if it were a much larger company. Its partners cover the majority of the exploration costs, while Purepoint earns management fees for operating the projects. This minimizes shareholder dilution while still allowing the company to systematically advance its flagship projects towards discovery.

The Hook Lake Project

The most advanced of Purepoint's projects is Hook Lake, a joint venture with Cameco and Orano where Purepoint owns 21%. The property lies on trend with recent high-grade uranium discoveries like NexGen's Arrow deposit and Fission's Triple R.

Hook Lake has already seen over $15 million in exploration, funded largely by Purepoint's partners, and has an abundance of compelling exploration targets still to be tested. The 2025 program will focus on following up on high-grade mineralization discovered along the "Patterson Corridor" while also drill testing targets to the north along a conductor trend that hosts a new discovery at NexGen that may represent a second major deposit.

The IsoEnergy Joint Venture

In late 2024, Purepoint formed a new joint venture with IsoEnergy covering a massive 38,800+ hectare land package in the Athabasca Basin. The flagship project, Dorado, covers the extension of the same trend that hosts Iso's high-grade Hurricane deposit.

The JV has a $5 million exploration budget for 2025 and will take a systematic approach, testing multiple target areas to refine the most prospective areas for follow-up drilling. Purepoint's long history in the Basin allowed it to assemble this strategic land package, which would have been difficult for Iso to acquire and explore on its own.

Interview with President & CEO, Chris Frostad

The Uranium Market Outlook

Purepoint, like many uranium companies, has a bullish long-term outlook on the uranium market. Spot prices soared in 2023 in a somewhat speculative frenzy, but have since corrected to around $50/lb, closer to the long-term contract price. Frostad sees this as healthy, noting that:

"From a producer's standpoint...it's only now gotten to the $80 level where you can even consider opening up a new mine or building a new mine."

With global uranium demand continuing to outstrip primary mine supply, necessitating the drawing down of secondary supplies, Frostad believes:

"We're only halfway through this bull market...we haven't yet experienced the result of the price or the supply gap for the last six years."

While uranium prices will likely continue to be volatile, the long-term contract price that drives industry investment is on a gradual uptrend. As new mines take 10+ years to be permitted and constructed, the world will likely face an acute uranium deficit by the late 2020s that drives prices considerably higher than where they sit today.

The Near-Term Outlook for Purepoint

In the near-term, Purepoint will continue to focus on exploring its flagship projects with its various JV partners. With most of its exploration funded, Purepoint is able to wait for strategic opportunities to raise capital, often at a premium to its market price.

2025 will see several drill programs at its various projects, testing high-priority targets while also generating new ones through fieldwork. With the scope and scale of exploration that Purepoint is conducting with its partners, the company provides investors with multiple shots on goal for a major discovery as the uranium market heats up.

The Investment Thesis for Purepoint Uranium

• Through partnerships with majors like Cameco and Orano, Purepoint has been able to spend tens of millions advancing its flagship Hook Lake project while minimizing dilution
• The 2025 Hook Lake exploration will test extensions of recent high-grade discoveries made by NexGen along trend, providing discovery potential
• Purepoint's new joint venture with IsoEnergy opens up a massive land package covering extensions of the trend hosting Iso's Hurricane deposit
• As a pure-play Athabasca explorer with a unique JV model and prospective projects, Purepoint offers investors leveraged exposure to rising uranium prices

Macro Thematic Analysis

The long-term fundamentals for the uranium market remain compelling. For nearly a decade now, global uranium demand has outstripped primary mine supply, with the deficit being filled by secondary supplies and inventories. While exact numbers are opaque, it is estimated that mine supply currently covers only about 80% of reactor requirements.

This structural deficit will become more acute as secondary supplies dwindle and uncovered utility demand rises with the global growth of nuclear power. Many long-term contracts from the previous cycle are rolling off, leaving utilities in need of resupply. At the same time, major mines are depleting and new projects have been slow to advance given persistently low prices. This is set to change.

According to Chris Frostad:

"We've only just gotten up to this $80 level where you can even consider opening up a new mine or building a new mine...so once the utilities start contracting in earnest I think we're only halfway through this bull market with uranium because we've only just gotten up to this normal price and we haven't yet experienced the result of the price or the supply gap for the last six years."

As new supply takes time to come online, the market will need to incentivize existing mines to produce more and greenfield projects to be developed to meet rising demand. This should lead to a sustained rise in uranium prices from current levels, with the potential for short-term spikes if the deficit becomes more pronounced than anticipated. Companies like Purepoint offer investors a way to position for this macro opportunity.