Three Way: Nuclear Renaissance Converges with Uranium Crunch.

• Uranium demand is increasing with more nuclear reactors being built, especially in China
• Supply is constrained with major uranium mines cutting production
• Uranium spot prices have risen rapidly, but equities are lagging and set to catch up
• The proposed three-way merger between 92 Energy, Ather Energy, and Latitude offers scale and cash to explore highly prospective uranium projects
• Management sees strong potential for further discoveries at the Gemini uranium project trend owned by 92 Energy

An Era of Growing Demand and Constrained Supply

Uranium, the key fuel for nuclear energy, is poised for a bull run. Demand is increasing while supply declines, setting the stage for rising uranium prices after years in the doldrums. Wise investors have an opportunity to profit from the coming uranium renaissance.

Growing Nuclear Energy Demand Outpacing Stagnant Mine Supply

"You got to understand as well the way they quote those term prices in the market is the lowest contract price gets quoted...and doesn't give you the true picture of what's going on in the contract," explains Shan Lancaster, CEO of uranium explorer 92 Energy.

While publicly reported contract prices remain low, she reveals that behind the scenes, floor and ceiling prices are rising dramatically in private negotiations.

In particular, China is aggressively locking up long-term uranium contracts, suggesting Chinese nuclear entities foresee supply shortfalls relative to their rapidly expanding nuclear reactor fleet. As Lancaster explains, "They're very strategic... looking further out into the future."

Indeed, China plans to grow its nuclear capacity from 52 GWe presently to 140 GWe by 2030. Other Asian countries like India and South Korea also have ambitious nuclear growth plans over the next decade. This will necessitate uranium supply growth, especially as secondary supplies from decommissioned nuclear warheads decline.

However, existing uranium production cannot expand sufficiently due to years of low prices discouraging new mine investment. Major current uranium mines are also facing depletion without obvious replacement projects. For example, the giant Cigar Lake mine in Canada will require substantial capital to access lower grade zones soon.

Looming Supply Cuts While Inventories Decline

Recent events underline the supply risks. Lancaster highlights how Kazatomprom, the world's largest uranium miner, "recently announced...that [they're] taking 9 million pounds out of the market next year." This represents nearly 5% of the total uranium mine supply.

At the same time, reactor operators have run down uranium inventories. A supply crunch is thus brewing, likely from the late 2020s based on forecast demand growth versus highly probable lackluster supply growth. Utilities that delay securing more contracts risk losing out as a bidding war for uranium ensues.

Uranium Prices Poised to Run

The uranium spot price has already shot up 50% over the past year to $100 per pound. However, Lancaster believes "equities are a little bit behind" and will "catch up at some point." This creates a lucrative arbitrage opportunity, especially since exploration and development-stage uranium mining stocks typically amplify movements in the uranium price.

Advanced uranium projects stand to benefit most, as they can fast-track development plans to capitalize on higher prices. In particular, lower operating cost in-situ recovery (ISR) projects offer easier scalability versus conventional underground or open pit mines. ISR projects utilize solvents pumped through wells to recover uranium captured on ion exchange resins. Given relatively low capital intensity, ISR mines can often be built within 12-18 months once permitting is secured.

Three-Way Merger to Create a Premier Athabascan Uranium Explorer

92 Energy is one emerging uranium player seeking to ride the coming bull market via a three-way merger with fellow Canadian explorers, Atha Energy and Latitude Uranium. 92E and Latitude will merge into Atha Energy, holding over 300,000 hectares of uranium exploration ground focused in Canada's uranium-rich Athabasca Basin.

The merger brings together highly complementary technical and regional expertise to unlock the exploration potential across this extensive portfolio. It also provides the balance sheet strength to accelerate activity, with around US$50 million in cash forecast on completion of the deal.

Notably, a key asset is 92 Energy's Gemini project in the Athabasca Basin. Lancaster is particularly enthusiastic about the relatively under-explored 14 km Gemini trend, stating: "If you have some money to deploy...there's a good probability of additional discoveries along that Trend." Prior drilling has already outlined shallow high-grade uranium at Gemini, including an intercept of 8.5m @ 6.88% U3O8

Such promising early results further indicate that Gemini could host a major deposit cluster akin to the prolific Arrow-Triple R uranium district nearby. Comprehensive exploration along the trend from Gemini would test this potential. The Australian merger vote occurs in late March, meaning the united entity should have ample time to launch extensive summer field programs. Investors have a prime opportunity to get exposure before these catalysts potentially propel a significant rerating.

The Investment Thesis for Atha Energy

• Exposure to the uranium bull market through a well-funded exploration portfolio plus an historical deposit
• District-scale exploration programs testing high-potential trends like Gemini for further major discoveries
• Nearology to proven Tier-1 uranium mine districts including Arrow-Triple R and Rabbit Lake
• An experienced management team with expertise unlocking Athabasca Basin deposits
• Near-term share price catalysts from merger completion and summer exploration campaigns

"Equities have to catch up at some point...This is a real market problem," concludes Lancaster on the positive uranium macro outlook. Atha Energy stock will allow investors to position in advance to capitalize on the inevitable uranium price resurgence as this growing supply deficit becomes glaringly apparent over the next few years.

Those failing to realize today's uranium opportunity risk leaving substantial money on the table. The fuse is lit for Atha Energy stock when uranium launches into its next bull run.

Global nuclear energy capacity is forecast to grow substantially this decade, led by Asia as countries seek reliable baseload and low-carbon electricity to support rising living standards without surging emissions. However, years of low uranium prices have curtailed investment in new mines. Looming shortfalls from 2025 present a highly compelling bull case for uranium fundamentals. China recognizes these risks, aggressively building stockpiles. Meanwhile, investors still underestimate the supply/demand imbalance, meaning uranium equities remain at bargain levels from a historical perspective relative to likely future spot prices above $60-70 per pound. The uranium opportunity arguably offers among the most asymmetric returns imaginable over a 2-3 year view among commodities. With mines unable to ramp up rapidly, the market risks entering prolonged deficits within five years. Early movers stand to generate multi-bagger returns as fundamentals overwhelm complacency. "This is a real market problem," explains 92 Energy CEO Lancaster on the brewing supply shock as nuclear reactor construction gathers momentum.

"This is a real Market problem as well...The spot has run hard, but there's often a delay, it takes a while to negotiate a contract and really understand the impact." - Shan Lancaster, 92 Energy CEO