PLS: Athabasca's Shallow Depth, Highly Awarded Uranium Project - TSX:FCU OTCQX:FCUUF FissionUranium.com
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Exploration Project of the Year PLS: Athabasca’s Shallow Depth, Highly Awarded Uranium Project June 2019 TSX:FCU OTCQX:FCUUF FissionUranium.com
Disclaimer & Technical Information
Disclaimer
The following information may contain forward-looking statements. Forward-looking statements address future events and conditions and therefore involve inherent
risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.
The technical information in this corporate presentation has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-
101 and reviewed on behalf of the company by Ross McElroy, P.Geol. President and COO for Fission Uranium Corp., a qualified person.
The updated Mineral Resources as reported April 15, 2019 are as reported from data up to and including 2018 drill programs and are reported within an open pit design
at a cut-off grade of 0.15% U3O8 and 0.25% U3O8 for resources outside the pit that are potentially mined by underground methods. The R1620E, R840W and R1515W
zones are evaluated as underground at this time.
Technical Information
Certain of the technical information contained herein is derived from the April 15, 2019 news release entitled “Fission's PFS shows Low OPEX of US$6.77/lbs U3O8, High
IRR and Clear Growth,” describing results of a PFS completed on the project – a copy of which is filed on the Company’s profile on SEDAR at www.sedar.com. The PFS
considers the PLS project as a stand-alone mine and mill operation, which includes development and extraction of the R00E and R780E zones (Triple R deposit), based
on a number of inputs, estimates, and results including the following (all values in C$ unless otherwise noted):
Mineral Resources and Mineral Reserves are reported within the open pit design at a pit discard cut-off grade of 0.15% U3O8 and outside the design at an underground
cut-off grade of 0.25% U3O8 based on a long-term price of US$50 per lb U3O8 and PFS cost estimates. Mineral Resources that are not Mineral Reserves do not have
demonstrated economic viability.
Physicals: Revenue:
• Four years of pre-production and 8 years of mine life, processing • Long term uranium price of US$50 / lb U3O8
nominally 1,000 tonnes per day (350,000 tonnes per year) • Exchange rate of 0.75 US$ / C$1.00
• Total Tonnes Processed: 2.89 million tonnes at 1.42% U3O8 average grade; • Gross revenue of C$5.84 billion, less Saskatchewan gross revenue royalties
open pit mining of 2.30 million tonnes at 1.62% U3O8 of $423 million
• Underground mining of 0.59 million tonnes at 0.63% U3O8 • Net revenue of C$5.41 billion
• Process recovery of 96.7%, supported by metallurgical testwork
• Production of 90.5 million lbs U3O8; an average of almost 15 million lbs
U3O8 per year for 5 years, followed by a lower-production tail
Operating Costs: Capital Costs:
• Average OPEX of C$9.03/lb (US$6.77/lb) U3O8 over the life of mine • Pre-Production capital costs of $1.498 billion
• Unit Operating Costs of C$274 per tonne processed. • Dyke and Slurry Wall - C$371 million
• Combined Mining C$89 per tonne processed • Open pit mining - C$44 million
• Processing: C$115 per tonne processed • Process plant - C$241 million
• Surface and G&A: C$71 per tonne processed • Tailings Facility - C$101 million
• Operating cash flow of C$4.62 billion • Infrastructure - C$114 million
• Indirects & Owner’s Costs - C$376 million
• Contingency - C$250 million
• Sustaining capital costs of C$137 million (includes all underground mine
capital costs, and tailings dam lifts)
• Reclamation and closure cost of C$77 million
• Cash flow from operations of C$2.91 billion
TSX: FCU OTCQX: FCUUF 2
Reasons to Invest
Large, shallow Maiden reserve estimate of
Award winning
(~50 m from 90.5M lbs U3O8 at 1.42% U3O8
project and surface), high-
management grade Triple R 3.2 km mineralized trend –
team largest in the Athabasca Basin
deposit
Potential to
Production: 15M lbs/yr U3O8 become 31,039 ha property
over first 5 years amongst the
in a world class
top 3 largest
Cash costs: US$6.77/lb U3O8 and lowest uranium district
over LOM (Athabasca Basin)
cost uranium
mines
Near-term catalysts
• Future drill program to Flexible OP/UG case: after-tax NPV8% of
upgrade/expand resource Excellent potential mining C$693M and IRR of 21%
• PFS on UG scenario Summer 2019 to expand resource approach with
strong project UG case: after-tax NPV8% of
and extend mine life
• Feasibility study within ~2 yrs economics C$696M and IRR of 26%
TSX: FCU OTCQX: FCUUF 3
Corporate Information
Capital Structure Share Ownership
Tickers TSX: FCU
OTCQX: FCUUF Institutions
Management & Board
1.6%
Frankfurt: 2FU 12.1%
China General
Share Price (as of June 7, 2019) C$0.48 Nuc lear Power
19.9%
52 Week Low / High C$0.47 / C$0.78
Basic Shares Outstanding 486.0M
Options (weighted avg. strike price of C$0.89) 30.3M Retail & Other
66.3%
Fully Diluted Shares Outstanding 516.3M
Market Capitalization (Basic) C$233.3M
Cash & ST Investments (as of May 31, 2019) C$9.5M
Investment in Fission 3.0 Corp. C$1.1M
Enterprise Value (Basic) C$247.4M
Share Price Performance (Last 12 Months) Research Coverage
$0.80 4.0 Institution Analyst City
$0.70 3.5
BMO Capital Markets Alex Pierce London
$0.60 3.0
Share Price (C$)
Tyron
$0.50 2.5 Volume (M) Cormark Securities Toronto
Breytenbach
$0.40 2.0
Eight Capital David Talbot Toronto
$0.30 1.5
$0.20 1.0 Haywood Securities Colin Healey Vancouver
$0.10 0.5 H.C. Wainwright & Co. Heiko Ihle New York
$0.00 0.0
Derek
Jul-18
Dec-18
Jun-18
Sep-18
Nov-18
Apr-19
Red Cloud Klondike Strike Toronto
Feb-19
Mar-19
Jan-19
May-18
May-19
Aug-18
Oct-18
Macpherson
TSX: FCU OTCQX: FCUUF 4
Award Winning Project and Team
Management Management cont’
Devinder Randhawa, Chairman & CEO Ray Ashley, VP Exploration
• Fission Energy founding CEO and chairman from
2007 to 2013 leading company to Tier One status Paul Charlish, CFO & Corporate
• Finance Monthly ‘Dealmaker of the Year 2013’, Secretary
Northern Miner ‘Person of the Year 2013’
• Founder of Pacific Asia China Energy, sold for
$34M Directors
William Marsh, Lead Director
Ross McElroy, President & COO, Director
• Formerly with Cameco, Areva, BHP Billiton Frank Estergaard, Director
• PDAC 2014 ‘Bill Dennis Award for Exploration
Success’, Northern Miner ‘Person of the Year Robby Chang, Director
2013’
• Significant role in 4 major uranium discoveries in Darian Yip, Director
Athabasca Basin, incl. Fission’s Waterbury Lake &
PLS Deshao Chen, Director
• Professional geologist of 30+ years experience
Shiming Ma, Director
TSX: FCU OTCQX: FCUUF 5
Building Shareholder Value Since 1996
2013
Fission Uranium Corp.
• Takeover of Alpha Minerals
2007 • Triple R Deposit: discovered
Fission Energy Corp. (2012)
• JV KEPCO (Korea) (C$15M) • Completed maiden reserve
1996 • J-Zone discovery & sale to estimate and PFS in April 2019
Denison Mines • Chinese Utility (CGN Mining)
Strathmore Minerals Corp.
buys 19.9% for C$82M
• U3O8 spot price at US$7/lb
• C$2M market cap to peak
valuation of C$457M in 2007
• JV Sumitomo (Japan) (C$50M)
Fission 3.0 Corp. (2013)
• Project Generator with several
high-potential projects: drilling-
Energy Fuels Takeout (2013)
boulders-geochem-geophysics-
showings in Athabasca
• Rhyolite to spend C$22M to earn-in
80% of Macusani Assets, Peru
TSX: FCU OTCQX: FCUUF 6
Patterson Lake South (PLS) Project Overview
Ownership • 100% owned by Fission Uranium PLS Project
Location • 31,039 ha property located in the southwest
margin of the Athabasca Basin in northern
Saskatchewan
• Accessible by all-weather Highway 955
• Strong government support at all levels
• Straight-forward permitting process
Triple R • Structurally controlled, east-west trending, sub-
Deposit vertical high-grade uranium deposit
• 5 mineralized zones over a 3.2 km strike
• High grade mineralization starting at ~50 m
Reserve and Resource Estimate (April 2019)
depth
Category Ore Grade Contained Metal
• Zones are open in several directions 000 tonnes % U3O8 g/t Au 000 lbs U3O8 000 oz Au
April 2019 • 6-year open pit mine followed by 2 years of Probable Reserves
PFS (OP/UG) underground mining (both at 1,000 tpd) Open pit 2,296 1.62 82,262
• Based exclusively on R780E and R00E zones Underground 592 0.63 8,236
Total Probable 2,888 1.42 90,500
• 97.7% recovery rate
Indicated Resources
• LOM avg. production of 11M lbs/year U3O8
Open pit 1,609 2.33 0.58 82,753 30.1
‒ 14.4M lbs/year U3O8 over first 5 years
Underground 931 1.02 0.48 21,015 14.3
• Cash costs of US$6.77/lb U3O8 Total Indicated 2,540 1.85 0.49 103,768 44.4
• 4-year construction period with initial capex of Inferred Resources
C$1.5B Open pit 40 0.62 0.24 551 0.3
• NPV8% (pre-tax) of C$1.32B and IRR (pre-tax) of Underground 1,198 1.23 0.50 32,334 19.3
29% at US$50/lb U3O8 and US$1:C$0.75 Total Inferred 1,238 1.20 0.49 32,886 19.6
TSX: FCU OTCQX: FCUUF 7
Canada’s Athabasca Basin District
+2.5 billion pounds
of U3O8 discovered
TSX: FCU OTCQX: FCUUF 8
Athabasca: The Premier High-Grade Uranium District
Average Grade (% U3O8)
ENVIRONMENT
• Political stability
• Pro-mining
• Permitting
INFRASTRUCTURE
• Mills nearby
• Power grid
• Highways & airplane access
EXPERIENCE
• 60+ years of mining
• Supplies 22% of the world’s uranium
• Saskatchewan was ranked as #3
jurisdiction in the world for mining
investment in 2018 by the Fraser
Institute
TSX: FCU OTCQX: FCUUF 9
Triple R Deposit
3.18 km east-west strike length
• Structurally controlled, east-west
trending, sub-vertical, high-grade
uranium deposit
• ~50 m starting depth of high-grade
deposits
‒ Overlain by 50 m to 60 m of sandy
overburden, with high grade mineralization
located near the bedrock-overburden contact
• Five separate mineralized zones
(R1515W, R840W, R00E, R780E and
R1620E) over a 3.2 km strike (drill
defined) mineralized system
‒ Western Zones: R1515W, R840W and R00E
are on land with 55 m to 100 m of overburden
‒ Eastern Zones: R780E and R1620E zones are
beneath Patterson Lake at generallyLow Hanging Fruit Picked First
Depleted Fission
Triple R Cameco
Orano
Midwest Denison McArthur NexGen
Producing Orano Phoenix River Arrow
Orano Cameco
Cameco Orano
Cluff Key McClean Rio Tinto Cameco
Cigar Shea
Advanced Lake Lake Lake Roughrider Millennium
Lake Creek
Unconformity
Deposits
Basement 100
Deposits
200
300
400
500
Exploration
600 “Sweet-Spot”
700
800
900
* Based on company information
TSX: FCU OTCQX: FCUUF 11PLS Project
April 2019 PFS (OP/UG) and April 2019 PEA (UG Only)
OP/UG UG Only
• April 2019 PFS (OP/UG) cash costs of C$9.03/lb Units (PFS Case) (PEA Case)
is 45% lower than the 2015 PEA (C$16.50/lb) Mine Type 6 years OP 7.3 years UG
2 years UG
• Indicated resources grew 18% from previous
Mine Life Years 8.2 7.3
estimate (February 2018) Construction Period Years 4 years 3 years
• Initial reserve estimate of 90.5M lbs U3O8 at Ore Mined M tonnes 2.89 2.55
LOM Avg. Head Grade % U3O8 1.42 1.64
1.42% from R00E and R780E Zones LOM Production M lbs U3O8 90.5 81.4
• April 2019 PFS demonstrates the flexibility of Avg. LOM Annual Production M lbs U3O8 11.0 11.2
Operating Costs C$/tonne $274 $335
future development of the Triple R deposit
C$/lb U3O8 $9.03 $9.57
‒ Potential to develop mine as combination open pit/ Initial Capital Cost C$M $1,498 $1,194
underground or underground only LOM Sustaining Capital Cost C$M $137 $258
‒ OP includes construction of a sand dyke and Project Economics at US$50/lb U3O8 and C$1.00:US$0.75
plasticized cement slurry cut-off wall into Patterson Pre-Tax Cash Flow C$M $2,910 $2,587
After-Tax Cash Flow C$M $1,759 $1,533
Lake
After-Tax NPV8% C$M $693 $696
‒ UG involves sinking shafts on land and developing After-Tax IRR 21% 26%
underground workings below Patterson Lake
• April 2019 PFS based exclusively on indicated
resources from R00E and R780E zones
TSX: FCU OTCQX: FCUUF 12PLS Project
Trade-Off Between Hybrid (OP/UG) and UG Development Options
• Both scenarios results in bottom quartile cash costs. Base Case scenario 15M lbs U3O8 of annual
production over first 5 years, and a high IRR at a US$50/lb uranium price
April 2019 PFS – Hybrid (OP/UG) April 2019 PEA - UG Only
Capital Cost • Does not require construction of a sand dyke and
plasticized cement slurry cut-off wall
• ~C$400M (20%) lower initial capex
• Eliminates pre-stripping
• Shorter construction period
LOM Production • Access additional 9.1M lbs of reserves
• 11% increase in LOM U3O8 production
• Extends mine life by ~1 year
Operating Costs • Modestly lower cash costs over LOM (~6%)
Permitting • Reduces permitting time and costs
• Potentially lower environmental impact and
reclamation costs
Project Economics • 15% higher LOM free cash flow (after-tax) • Higher IRR (26% vs. 21%)
TSX: FCU OTCQX: FCUUF 13PLS Project
Project Enhancement Opportunities and Next Steps
Excellent opportunity to upgrade resource base Next Steps
and extend mine life • UG only scenario to PFS level (by Summer
• Addition of Zones to Mine Plan: three other 2019)
mineralized zones (R1515W, R840W and R1620E) • Advance towards Feasibility Study (toward end
along strike requiring drilling to upgrade inferred to of 2020)
indicated ‒ Conversion to indicated from R780E, R00E (20 holes)
• Zone Expansion: R780E Zone is open at depth and and zones outside of PFS resource (40 holes in-fill)
‒ Feasibility level mine design, scheduling and cost
along plunge to east with opportunity to extend UG
estimation
mine life ‒ Permitting
• Mineralization Upgrade: excludes [ ] of existing
inferred resources from R780E and R00E zones
R00E
R780E
TSX: FCU OTCQX: FCUUF 14PLS Project
Well Positioned Amongst the Largest Uranium Mines in the World
Largest Uranium Mines by 2016 Production
• Under the PFS Base Case, the Mining 2016 Production Percent of
Rank Mine/Project Location
Method (M lbs U3O8) Total
PLS Project is forecast to
1 McArthur River Canada UG 18.0 11%
produce 15 million lbs of 2 Cigar Lake Canada UG 17.3 11% PLS
3 Katco Kazakhstan ISR 10.4 7% Project
annual U3O8 production over the
4 Olympic Dam Australia UG 9.6 6%
first five years 5 Central Mining District Uzbekistan ISR 6.2 4%
• PLS Project is positioned to be 6 Inkai Kazakhstan ISR 5.7 4%
7 Somair Niger OP 5.6 4%
one of largest uranium mines as 8 Karatau Kazakhstan ISR 5.4 3%
well as the largest open pit mine 9 Ranger Australia OP 5.2 3%
10 South Inkai Kazakhstan ISR 5.1 3%
in the world - Remaining - - 69.2 44%
• Under the PFS Base Case, LOM Total 157.7 100%
Source: S&P Global Market Intelligence
avg. cash costs of US$6.77/lb, 2016 Uranium Industry Cash Cost Curve
which would be near the bottom $50 First Quartile Second Quartile Third Quartile Fourth Quartile
of the global industry cash cost
Total Cash Cost (US$/lb)
$40
curve and amongst the lowest of PLS Project
• 15M lbs/yr U308 (first 5
all major uranium mines $30 years)
• US$6.77/lb LOM cash
$20 costs
$10
$0
0 20 40 60 80 100 120
U308 Production (M lbs)
Source: S&P Global Market Intelligence
TSX: FCU OTCQX: FCUUF 15Exploration Potential
• 31,039 ha property in the Athabasca Basin district,
with only a small portion explored to date
• Triple R deposit is open in multiple directions,
particularly westwards, towards the high-grade
boulder field
• Triple R deposit (3.2 km strike) is part of a huge
mineralized trend, with over 100 EM conductors and
multiple exploration hotspots
• Most awarded uranium exploration company with
industry-leading, multi-discipline technical team
TSX: FCU OTCQX: FCUUF 16Comparable Company Analysis
• Fission Uranium trades at a P/NAV of 0.26x¹, which is ~19% below the average P/NAV multiple uranium
exploration and development companies
• Fission Uranium should warrant a premium valuation given the size, high-grade and expansion potential of
the PLS Project and land position in the prolific Athabasca Basin
• Substantial re-rating opportunity as the company continues to advance, de-risk and grow the PLS Project
P/NAV Multiples of Uranium Producers and Development Companies1
Uranium Producers Uranium Exploration and Development Companies
0.90x
0.73x
0.66x
Average: 0.63x
0.59x
0.49x 0.49x
0.47x
0.43x 0.42x
0.30x 0.30x Average: 0.32x
0.26x
0.21x 0.21x
0.14x
Cameco Energy Energy Paladin Peninsula Uranium Laramide Denison NexGen UEX Azarga Fission Vimy Berkeley Plateau
2
Resources Fuels Energy Energy Uranium
Note: as at May 1, 2019
1. NAVPS for all other companies are consensus research
2. Consensus NAVPS for Fission Uranium is based on estimates from Eight Capital and H.C. Wainwright
Source: Capital IQ and Thomson
TSX: FCU OTCQX: FCUUF 17Why Fission?
Award winning project World class Large, shallow, high
and management team uranium district grade Triple R Deposit
Discovered two world-class Triple R on a 3.2 km Maiden reserve estimate of
uranium deposits since 2010 mineralized trend - largest 90.5M lbs U3O8 at 1.42% U3O8
lateral footprint in the
Athabasca Basin
One of the world’s largest and Near-term resource Untapped exploration
lowest cost uranium projects growth potential
April 2019 PFS outlines OP/UG mine Future 2019 drill program Majority of 31,039 ha property
producing 15M lbs/yr U3O8 and LOM Triple R deposit is open in remains unexplored
avg. cash costs of US$6.77/lb multiple directions 100s of potential drill targets
TSX: FCU OTCQX: FCUUF 18Reactor
Builds at
25 year high
Appendix: Uranium MarketElectricity Demand +150% by 2035
Reactor
Builds at
447 Current Reactors
Operation 56 Under
Construction 111 Planned 328 Proposed
25 year high
RUSSIA: +52
CHINA: +226
EUROPE: +13
USA: +25
SAUDI ARABIA: +16
E. ASIA: +17
UAE: +4
INDIA: +49
(+ indicates reactors under
construction, planned &
proposed)
More reactors operating in 2018 More Japanese reactors coming online Middle East (home of Big Oil) aggressively
than in any other time in history due to strong regulator support securing nuclear energy supply
TSX: FCU OTCQX: FCUUF 20Moving Forward
Growing Electrical Demands and Nuclear Solutions
• Electricity demand growing at rapid pace and increasingly integrated
into daily life
• As demand for electricity increases, demand for clean energy is
paramount
• EV’s entering the marketplace by major automobile manufactures
• Bitcoin POW mechanism annual electric consumption same as
Switzerland
• Small Modular Reactors (SMR’s) – implementation is a game changer
Small Modular Reactors (SMR’s) - Game Changing Technology
• Assembly line construction will standardize build and reduce
construction risk and decrease cost (analogous to Ford’s Model T)
• Shorter construction time (3 years vs. 10 years)
• Transport modular components reduces major transport requirements
• Small footprint allows smaller safety zones around reactors
• Incremental power thus suitable for more countries, more locations
21
Source: World Nuclear News
TSX: FCU OTCQX: FCUUF 21Plans for New Reactors Worldwide
Source: https://pris.iaea.org/pris/
Reactors: Uranium Requirements & Future Nuclear Power
Source: WNA May 2019
447 Nuclear power reactors in 111 Nuclear power reactors
operation planned
56 Nuclear power reactors under 328 Nuclear power reactors
construction proposed
TSX: FCU OTCQX: FCUUF 22China’s Strong Nuclear Buildout
China’s Reactor Construction Boom
2030 Estimate
• 150 reactors in operation*
240
• 50 under construction*
33
CGN, Fission’s Strategic Partner
• 19 operating reactors*
• Important domestic and global builder of
reactors (23 new reactors under
construction world wide)*
• Owns 19.9% of Fission
• Offtake agreement - 20% of annual uranium
production from PLS; option to purchase
additional 15%
* CGN Personal communication
Beijing, China: Air Quality Red Alert
TSX: FCU OTCQX: FCUUF 23Japanese Recovery Continuing
2010 2016 2030
Nuclear 25% 2% 20-22%
“Our resource-poor country cannot do
without nuclear power to secure the
stability of energy supply while
considering what makes economic sense
and the issue of climate change.”
Shinzo Abe, re-elected Prime Minister of Japan Oct. 2107 • 9 reactors have currently • 2 reactors under
restarted construction
• 17 reactors currently in the • 8 new reactors planned and
process of restart approval proposed
Source: World Nuclear Association (February 2019)
TSX: FCU OTCQX: FCUUF 24Supply Side Vulnerable to Geopolitical Instabilities
• Nearly 60% of primary supply comes from politically unstable countries
• Saskatchewan, Canada:
‒ Ranked #3 mining investment jurisdiction in 2018 by Fraser Institute
‒ Increased share of global production from 17% to 22% in 2016
Other Countries
Australia 14.1%
Kazakhstan
10.2% (to reduce planned
39%
uranium production by
20%)
22%
Politically unstable
Canada 13.8%
Permitting issues
(indefinite 7.9% Stable & supportive
suspensions at
McArthur River)
Africa Russia & E. Europe
All figures from Uranium Investing News (based on World Nuclear Association country reports)
TSX: FCU OTCQX: FCUUF 251B lbs U3O8 Uncovered in Next 8 Years and Supply Still Being Cut
Low U3O8 price impacts low cost producers:
• Kazakhstan production cut by 20% over three years starting in 2018
• Production indefinitely suspended at McArthur River
• Canadian operations shut down at Rabbit Lake and Eagle Point
• Production cuts at Cigar Lake
U3O8 Mlbs
250
Utilities are increasingly uncovered
200
150
100
50
0
2019 2020 2021 2022 2023 2024 2025
Uncovered US Utilities Uncovered Non-Us Utilities Covered
Source: UxC
TSX: FCU OTCQX: FCUUF 26Pressure is Growing for Return to Contracting
• Utilities buy high and
sell low
• Lack of long-term
contracting leaves
utilities exposed
• For contracting to
return, prices will
have to rise
• The longer the wait,
the stronger the
upwards pressure on
pricing
TSX: FCU OTCQX: FCUUF 27Fission Uranium Corp. Phone: +1 250 868 8140 Toll Free: +1 877 868 8140 (North America) Website: www.fissionuranium.com Investor Relations: Email: ir@fissionuranium.com
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