Proven Team, Proven Approach: The First and Only Pure Play Uranium Royalty Company - Uranium Royalty Corp.
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UROY : NASDAQ
URC : TSX-V
Proven Team, Proven Approach:
The First and Only Pure Play Uranium Royalty Company
Corporate Presentation
October 2021
2 FORWARD-LOOKING STATEMENT Forward-Looking Information The information contained herein contains “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of applicable Canadian securities legislation. “Forward-looking information” includes, but is not limited to, statements with respect to the activities, events or developments that Uranium Royalty Corp. (“URC” or the “Company”) the Company expects or anticipates will or may occur in the future, including the completion of tentative transactions. Forward-looking information and statements are based on the then current expectations, beliefs, assumptions, estimates and forecasts about URC’s business and the industry and markets in which it operates. Forward-looking information and statements are made based upon numerous assumptions and although the assumptions made by the Company in providing forward-looking information or making forward-looking statements are considered reasonable by management at the time, there can be no assurance that such assumptions will prove to be accurate. Forward-looking information and statements also involve known and unknown risks and uncertainties and other factors, which may cause actual results, performances and achievements of URC to differ materially from any projections of results, performances and achievements of URC, including, without limitation, URC's limited control and access to data to the projects underlying its interests, commodity, commodity and investment price risks, currency risks, counterparty risks, proposed acquisitions may not be completed as contemplated or at all, risks faced by the operators and owners of the projects underlying URC's interests and the other risk factors described in the Annual Information Form and other filings with Canadian securities regulators and the U.S. Securities and Exchange Commission. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information or implied by forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking statements or information. The Company undertakes no obligation to update or reissue forward-looking information as a result of new information or events except as required by applicable securities laws. Technical Information Certain scientific and technical information in this presentation is based on information prepared under the Joint Ore Reserves Committee (JORC) 2004 or 2012 code, the terms Inferred Mineral Resources, Indicated Mineral Resources, Measured Mineral Resources, Ore Reserves, Proved Ore Reserves and Probable Ore Reserves are substantially similar to the terms Inferred Mineral Resources, Indicated Mineral Resources, Measured Mineral Resources, Mineral Reserves, Proven Mineral Reserves and Probable Mineral Reserves, respectively, used in Canadian National Instrument 43-101 (“NI 43-101”). Darcy Hirsekorn, the Company's Chief Technical Officer, has supervised the preparation of and reviewed the technical information contained in this presentation. Darcy holds a B.Sc. in Geology from the University of Saskatchewan, is a qualified person as defined in National Instrument 43-101 and is registered as a professional geoscientist in Saskatchewan. External Information Where this presentation quotes any information or statistics from any external source, it should not be interpreted that the Company has adopted or endorsed such information or statistics as being accurate. The Company also advises investors that some of the information presented herein is based on or derived from statements by third parties, has not been independently verified by or on behalf of the Company, and that no representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of this information or any other information or opinions contained herein, for any purpose whatsoever. No Investment Advice This presentation is not, and is not intended to be, an advertisement, prospectus or offering memorandum, and is made available on the express understanding that it does not contain all information that may be required to evaluate, and will not be used by readers in connection with, the purchase of or investment in any securities of any entity. This presentation accordingly should not be treated as giving investment advice and is not intended to form the basis of any investment decision. It does not, and is not intended to, constitute or form part of, and should not be construed as, any recommendation or commitment by URC or any of its directors, officers, employees, direct or indirect shareholders, agents, affiliates, advisors or any other person, or as an offer or invitation for the sale or purchase of, or a solicitation of an offer to purchase, subscribe for or otherwise acquire, any securities, businesses and/or assets of any entity, nor shall it or any part of it be relied upon in connection with or act as any inducement to enter into any contract or commitment or investment decision whatsoever. Readers should not construe the contents of this presentation as legal, tax, regulatory, financial or accounting advice and are urged to consult with their own advisers in relation to such matters. U.S. Non-Solicitation This presentation is not an offer of securities for sale in the United States and is not an offer to sell or solicitation of an offer to buy any securities of URC nor shall it form the basis of, or be relied upon in connection with any contract for purchase or subscription. The securities of URC have not been and will not be registered under the Securities Act or the securities laws of any state and may not be offered or sold in the United States absent registration or pursuant to an applicable exemption therefrom.
3
INVESTMENT HIGHLIGHTS
▪ URC is the first company to apply the successful royalty and streaming business model
First Mover Advantage exclusively to the uranium sector
$85M Cash, Securities, ▪ Strong balance sheet, which positions it to capitalize on accretive uranium royalty and
and Physical Holdings streaming acquisition opportunities
Physical Uranium ▪ Through its approximately 4.6% stake in London-listed Yellow Cake plc,
Ownership URC holds interests in physical uranium, acquired at cyclical lows
▪ Portfolio includes interests on 16 development, advanced, permitted and past-producing
Large & Diversified
uranium projects in multiple jurisdictions, including royalties on the world class McArthur
Royalty Portfolio River and Cigar Lake mines
▪ Management and board possess decades of uranium industry experience, including senior
Expertise executive and advisory roles to prominent companies and governments in the sector
URC is well positioned to take advantage of current market conditions as a
provider of alternative capital to the uranium sector
4
MANAGEMENT & BOARD
Management Board of Directors
AMIR ADNANI (Chairman)
SCOTT MELBYE (President, CEO & Director)
• Entrepreneur and Founder, President & CEO of Uranium Energy Corp
• Uranium industry veteran with 36 years experience including Executive (UEC: NYSE American)
roles with Cameco, Uranium One & Uranium Participation Corp. • Chairman of GoldMining Inc. (GOLD: TSX, GLDG: NYSE American)
• Former Strategic Advisor to Kazatomprom • Based in Vancouver
• Executive VP of UEC
• Based in Denver DAVID NEUBURGER (Director)
• Over 30 years experience in operations leadership roles, corporate strategic planning,
projects and mine engineering
DARCY HIRSEKORN (Chief Technical officer) • Formerly: VP, International Mining; VP, Mining (Saskatchewan) for Cameco Corp.,
VP, GM of Kupol Operations for Kinross
• Professional geoscientist with 20 years experience at Cameco • Based in Saskatoon
• Part of exploration groups that outlined over 200Mlbs of uranium
• Based in Saskatoon VINA PATEL (Director)
• 18 years experience raising capital from U.K. and European institutional investors
in mining and exploration equities, including uranium companies
• Formerly: Head of London Institutional Sales for Haywood Securities
JOSEPHINE MAN (Chief Financial Officer) • Based in London, U.K.
• Former partner at Ernst & Young LLP
• Over 20 years experience working with public companies NEIL GREGSON (Director)
primary in the mining industry • Qualified mining engineer with over 30 years experience in asset management
• Based in Vancouver in the resources sector
• Formerly: Portfolio Manager J.P. Morgan Asset Management Global Equities Team
based in London; Senior Portfolio Manager, Natural Resources of CQS Asset
Management; Head of Emerging Markets of Credit Suisse Asset Management
Strategic Partner • Based in London, U.K.
JOHN GRIFFITH (Director)
URANIUM ENERGY CORP
• 30 years experience in financial services sector in 3 continents, including 26 years
(UEC: NYSE American) of global investment banking expertise
• Formerly: Managing Director and the Head of Americas
▪ Initial shareholder
Metals & Mining Investment Banking for Bank of America
▪ Strategic partner, ongoing technical and • Based in South Carolina
operational support
5
CAPITALIZATION & OWNERSHIP PROFILE
SHARE STRUCTURE RECENT ACTIVITY
Shares Outstanding 87.0 Million US$3.85
UROY: Nasdaq
Avg. Daily Vol.: 604,290
Warrants 20.0 Million(1) URC : TSX-V C$4.86
Avg. Daily Vol. (3-mo): 230,733
Options 0.8 Million URC.WT : TSX-V C$2.86
Market Cap C$414 Million
Fully Diluted(1) 107.8 Million As of Sep 29, 2021
KEY SHAREHOLDERS Cash, Securities, and Approx. C$85 Million
Physical Holdings(2)
Uranium Energy Corp. Extract Capital Listed Securities 7.0 Million shares (~4.6%) in
Yellow Cake plc
Altius Resources Inc. Rick Rule
ANALYST COVERAGE
Mega Uranium Ltd. Sprott Global
Marin Katusa Commodity Capital Katie Lachapelle
KCR Fund Heiko Ihle
Gordon Lawson
(1) All, except 0.2 million common share purchase warrants, are trading on the TSX-V Exchange; $40M cash to be received should all warrants are exercised
(2) Inventory holdings include 448,068 lbs of U3O8. The Company is entering into contracts for additional spot purchases totaling 300,000 lbs of U3O8 at an average cost of US$38.17 per pound, of which
100,000 lbs were delivered on September 30, 2021, see URC news release dated Sep 15, 2021.
OUR STRATEGY: 6 6
BUILDING A DIVERSIFIED PORTFOLIO
Geographical
Multiple countries
Counterparty
Range of market capitalization
Various Stages of Development
Near, Medium, and Long-term Assets
Invest Across the Cost Curve
Maximizes leverage to uranium recovery
Physical Ownership
Direct Exposure to Current Spot Price
URC’s Diversified Approach is Well Suited to Uranium
7 URC's Portfolio
8 STRONG COUNTERPARTIES/OPERATORS Counterparties and Operators include many of the sector’s leading growth-oriented uranium companies
9 GLOBAL DIVERSIFIED ASSET PORTFOLIO Note: Physical storage of Yellow Cake material is provided at Cameco’s Blind River facility
ROYALTY PORTFOLIO 10
World Class Athabasca Basin Royalties
McArthur River Cigar Lake/Waterbury Roughrider
Royalty 1% GOR on 9% share(1) 20% NPI on 3.75% share(2) 1.97% NSR
Location Saskatchewan, Canada Saskatchewan, Canada Saskatchewan, Canada
Owner / Operator Cameco Corporation Cameco Corporation Rio Tinto Canada
Orebody Type Unconformity Unconformity Unconformity
Mine Type Underground Underground Underground
Stage Production Idled In Production Development
▪ Along with the Key Lake Mill, licensed to produce 25 ▪ Licensed to produce 18 Mlbs per year ▪ Roughrider was discovered by Hathor Exploration in 2008
Mlbs per year ▪ Historical production of 95.6 Mlbs as at June 30, 2021 ▪ In 2011, Cameco made a hostile bid for Hathor
Overview
▪ Historical production of 325 Mlbs since it went into ▪ Production resumed in April of 2021 ▪ Rio ultimately outbid Cameco and acquired Hathor for
production in 1999 C$654M
Reserves U3O8 (Mlbs) (3) ▪ Production suspended due to market conditions
Proven 320.2 103.8 17.2
Probable 71.7 61.7 40.7
Resources U3O8 (Mlbs) (3,4)
Measured 5.5 5.5
Indicated 4.7 99.3 17.2(5)
Inferred 2.6 22.8 40.7(5)
(1) The royalty acquired by URC does not apply to the entirety of the project but covers 100% of the reserves and resources attributed to the McArthur River project.
(2) The NPI percentage will adjust to 10% in the future upon production of 200 million pounds from the combined royalty lands of the Dawn Lake and Waterbury Lake / Cigar Lake Projects. As a profit-based interest, this royalty will begin to generate revenue after cumulative expense accounts, including development costs, are
exhausted. The royalty acquired by URC does not apply to the entirety of the project but covers 100% of the reserves and resources attributed to the Cigar Lake/Waterbury project.
(3) Cameco Corporation – Annual Information Form for the year ended December 31, 2020, and MD&A for the three and six months ended June 30, 2021, copies of which are available under Cameco's profile at www.sedar.com
(4) Mineral resources do not have demonstrated economic viability and do not include mineral reserves
(5) The estimates for Roughrider based on the 2011 PEA Technical report are historical in nature and are not being treated as current resources or reserves by URC as a qualified person has not done sufficient work on behalf of URC to classify such historical estimates as current mineral resources or reserves. The disclosure of
these historical estimates have been included herein as URC believes that it provides an indication of the potential for the properties underlying its royaltiesROYALTY PORTFOLIO 11
Athabasca Basin Royalties
Dawn Lake Option Russell Lake Diabase Option
Royalty 20% NPI on 7.5% share(1) 1.97% NSR 3% GRR
Location Saskatchewan, Canada Saskatchewan, Canada Saskatchewan, Canada
Owner / Operator Cameco Corporation Rio Tinto Uranium Energy Corp.
Orebody Type Unconformity Unconformity Unconformity
Mine Type Open Pit/Underground N/A N/A
Stage Development Early Exploration Early Exploration
▪ Resources outlined in table below stated by Cameco for the ▪ Exploration Project Operated by Rio Tinto ▪ Early Exploration project operated by UEC
Tamarack deposit ▪ Comprised of the Russell Lake and Russell South projects ▪ Project overlies a highly prospective regional corridor, similar
▪ Large mature project with multiple historical deposits ▪ 15 - 60 km from Key Lake Mill to the Patterson Lake corridor that hosts the Arrow and RRR
including Dawn Lake, La Rocque Lake, Natona Bay, and ▪ Approx. 72,000 hectares of royalty coverage on highly deposits
Overview
Thorburn Lake prospective ground ▪ Approx. 22,000 hectares of royalty coverage on highly
▪ Approx. 47,000 hectares of royalty coverage on highly prospective ground
prospective ground
Resources U3O8 (Mlbs) (2,3)
Indicated 17.9
Inferred 1.0
(1) The NPI percentage will adjust to 10% in the future upon production of 200 million pounds from the combined royalty lands of the Dawn Lake and Waterbury Lake / Cigar Lake Projects. As a profit-based interest, this royalty will begin to generate revenue after cumulative
expense accounts, including development costs, are exhausted. The royalty option acquired by URC does not apply to the entirety of the project but covers 100% of the reserves and resources attributed to the Dawn Lake project.
(2) Cameco Corporation – Annual Information Form for the year ended December 31, 2020, copies of which are available under Cameco's profile at www.sedar.com
(3) Mineral resources do not have demonstrated economic viability and do not include mineral reserves12
STRATEGIC PARTNERSHIP –
YELLOW CAKE PLC INVESTMENT
Supply Agreement with Kazatomprom Blind River Uranium Storage Facility
▪ Yellow Cake has a long-term supply agreement with Kazatomprom, the world's largest
uranium producer
Overview
▪ The supply agreement enables Yellow Cake to purchase up to US$1.07bn (including
existing purchases) of uranium from Kazatomprom over a 10-year period
▪ Yellow Cake's U₃O₈ current holdings is 13.86Mlbs as per YCA’s September 2021
Investor Presentation
▪ On August 27, 2021, Yellow Cake disclosed that it has signed the agreement with JSC
Purchasing National Atomic Company to purchase a further 2.0 million pounds of U3O8 and its total
holdings of U3O8 will increase to 15.86 million pounds once this transaction has
completed.
URC Investment in Yellow Cake
Ownership: Approximately 4.6%
Rights ▪ URC has the option to acquire up to US$31.25M (US$2.5M – US$10M per year) of uranium between Jan 2019 – Jan 2028
▪ URC has an option to participate in any and all future uranium royalty and stream transactions Yellow Cake pursues on a 50:50 basis.
▪ URC and Yellow Cake also plan to collaborate on future opportunities involving physical uranium
▪ In the event URC exceeds 10% ownership, URC has the right to nominate one director to the Yellow Cake Board, currently have observer rights
▪ In April 2021, URC completed and has taken its initial tranche delivery of 348,068 pounds of U3O8 at US$28.73 per pound.
Purchasing ▪ In September 2021, URC is entering into contracts for additional spot purchases totaling 300,000 pounds of U3O8 at an average cost of US$38.17 per pound.
(below TradeTech spot price of US$43.75/lb on Sep 29, 2021)
Source: Bloomberg, Public company disclosure13 STRATEGIC PARTNERSHIP – YELLOW CAKE PLC INVESTMENT ▪ Recently announced purchase of 300,000 lbs from spot market ▪ Increases total physical uranium concentrate inventory to 648,068 lbs U3O8 at weighted average cost of US$33.10 per pound ▪ US$10.9 million increase in value to date at $50 per pound spot price ▪ Stored at Cameco’s Blind River facility in Ontario, Canada
ROYALTY PORTFOLIO 14
14
World Class Athabasca Basin Royalties
McArthur River (1% GOR on 9% share)(1) Project Location
▪ The mine is currently owned by a joint venture between Cameco (69.805%)
and Orano (30.195%)
▪ Along with the Key Lake Mill, licensed to produce 25 Mlbs per year
▪ Historical production of 325 Mlbs since it went into production in 1999
Overview(1)
▪ In 2018, Cameco disclosed that it was put on care and maintenance due to
weak uranium market conditions.
▪ Expected to be the first of Cameco’s operations to restart after Cigar Lake,
based on market conditions
Reserves(2)
Tonnage Grade U3O8
Category (kt) (% U3O8) (Mlbs)
Proven 2,041 7.12% 320.2
Probable 540.0 6.02% 71.7
Resources(2,3.4)
Tonnage Grade U3O8
Category (kt) (% U3O8) (Mlbs)
Measured 97.8 2.57% 5.5
Indicated 92.4 2.32% 4.7
Inferred 41.0 2.85% 2.6
(1) The royalty acquired by URC does not apply to the entirety of the project area but covers 100% of the reserves and resources attributed to the McArthur River project.
(2) Cameco Corporation – Annual Information Form for the year ended December 31, 2020, and MD&A for the three and six months ended June 30, 2021, copies of which are available under Cameco's profile at www.sedar.com
(3) Mineral resources do not have demonstrated economic viability
(4) Mineral resources do not include mineral reservesROYALTY PORTFOLIO 15
15
World Class Athabasca Basin Royalties
Cigar Lake/Waterbury (20% NPI on 3.75% share)(1) Project Location
▪ The Cigar Lake Joint Venture partners are currently Cameco
(50.025%), Orano Canada Inc. (37.1%), Idemitsu Canada Resources
Ltd. (7.875%), and TEPCO Resources Inc. (5%)
▪ Licensed to produce 18 Mlbs per year
Overview ▪ Historical production of 95.6 Mlbs as at June 30, 202
▪ Production resumed in April of 2021, with first shipments of ore to
McClean Lake at the end of April
Reserves(2)
Tonnage Grade U3O8
Category (kt) (% U3O8) (Mlbs)
Proven 268.7 17.53% 103.8
Probable 203.2 13.78% 61.7
Resources(2,3,4)
Tonnage Grade U3O8
Category (kt) (% U3O8) (Mlbs)
Measured 32.9 7.61% 5.5
Indicated 309.4 14.55% 99.3
Inferred 186.3 5.55 22.8
(1) The NPI percentage will adjust to 10% in the future upon production of 200 million pounds from the combined royalty lands of the Dawn Lake and Waterbury Lake / Cigar Lake Projects. As a profit-based interest, this royalty will begin to generate revenue after cumulative
expense accounts, including development costs, are exhausted. The royalty acquired by URC does not apply to the entirety of the project but covers 100% of the reserves and resources attributed to the Cigar Lake/Waterbury project.
(2) Cameco Corporation – Annual Information Form for the year ended December 31, 2020, and MD&A for the quarter ended March 31, 2021, copies of which are available under Cameco's profile at www.sedar.com
(3) Mineral resources do not have demonstrated economic viability
(4) Mineral resources do not include mineral reservesROYALTY PORTFOLIO 16
US ISR Royalties
Reno Creek(1,3) Church Rock Dewey-Burdock(1) Lance(1,7)
Royalty 0.5% NPI 4% NSR 30% NPI 4% GRR
Location Wyoming New Mexico South Dakota Wyoming
Geological District Powder River Basin Grants Mineral Belt Black Hills Uplift Powder River Basin
Owner / Operator Uranium Energy Corp. Laramide Resources Azarga Peninsula
Orebody Type Sandstone-Hosted Sandstone-Hosted Sandstone-Hosted Sandstone-Hosted
Stage Development Development Development Production Idled
Resources U3O8 (Mlbs) (2,4,5,6)
Measured 12.9 14.3 3.7
Indicated 13.1 2.8 12.1
Inferred 1.5 50.8 0.7 37.8
▪ Project is fully permitted and construction ready ▪ Laramide holds several regulatory ▪ Recent PEA report estimates a post-tax NPV ▪ Royalty covers a portion of the Kendrick
▪ In August of 2019, stated that an independent PFS clearances for the project at an 8% discount of US$147.5M at a constant and Barber permit areas
study was being considered to expedite a ▪ Project currently undergoing additional field US$55 price per pound ▪ Production currently suspended as project
Overview
construction decision work and studies to lead to an updated PEA ▪ Direct Operating Costs of $10.46 per pound undergoes transition to low-Ph mining
report produced, excluding royalties, severance and methodology
conservation taxes ▪ In April 2020, received approvals to
commence low-PH test mining in the Ross
permit area
(1) Reno Creek, Dewey-Burdock, and Lance royalties do not apply to the entire project area covered by this estimate
(2) Reno Creek resources sourced from technical report titled "Technical Report and Audit of Resources of the Reno Creek ISR Project, Campbell County, Wyoming, USA" dated December 31, 2018 and authored by Robert E. Cameron, Ph.D., MMSA, and Robert Maxwell, CPG, AIPG and made in
accordance with NI 43-101,
(3) Uranium Energy Corporation news release dated February 7, 2019 titled “Uranium Energy Corp Outlines Development Plans in Preparation for the Mid-2019 U.S. Government National Security Action on Uranium Imports”
(4) Church Rock resources sourced from the technical report titled "Technical Report on the Church Rock Uranium Project, McKinley County, State of New Mexico, U.S.A." with an effective date of September 30, 2017, prepared for Laramide Resources Ltd. and authored by Mark B. Mathisen,
C.P.G. and made in accordance with NI 43-101,
(5) Dewey-Burdock resources sourced the technical report titled "NI 43-101 Technical Report, Preliminary Economic Assessment, Dewey-Burdock Uranium ISR Project, South Dakota, U.S.A.", with an effective date of December 3, 2019, prepared for Azarga Uranium Corp. and authored by Steve
Cutler, P.G. and Douglass H. Graves, P.E. and made in accordance with NI 43-101,
(6) Lance resources sourced from Peninsula Energy Limited September 30, 2019 quarterly activities report and made in accordance with JORC.
(7) Peninsula Energy news release dated April 17, 2020 titled “Key Approval Paves the Way for Development of New Uranium Mining Units”ROYALTY PORTFOLIO 17
Global Conventional Royalties
Langer Heinrich(1) Michelin(3.4)
Past Producer Ready for Restart Large Resource in Top Jurisdiction
Royalty A$.012/kg U3O8 Production Royalty 2% GRR
Location Erongo, Namibia Labrador, Canada
Owner / Operator Paladin Energy Paladin Energy
Orebody Type Surficial Calcrete Metasomatic
Mine Type Open Pit Open Pit/Underground
Stage Production Idled Development
▪ Paladin undertaking operational review to assess process ▪ Historical PEA issues by Fronteer in 2009
optimization, cost reduction, production capacity and life of mine ▪ Paladin acquired Michelin in 2011 for C$260.9M
Overview
alternatives. ▪ Low technical risk project in a premier uranium jurisdiction
Resources U3O8 (Mlbs) (2,3)
Measured 95.9 38.0
Indicated 18.0 67.6
Inferred 5.8 22.1
(1) Data based on ASX release from June 30, 2020
(2) Resources as of June 30, 2020, prepared under JORC 2012. The resources now include the low-grade and high-grade stockpiles. The underlying in-situ Mineral Resource as announced on October 14, 2019 remains unchanged, as are the tonnes and grade
stated for ROM stockpiles in the same announcement. Further details available in the company’s ASX announcement.
(3) This PEA is not being treated as current by URC.
(4) Sourced from Paladin Energy Ltd August 28, 2020 Annual Report. Resources were estimated in accordance with JORC 2012 with cut-off grades ranging between 0.2% - 0.5% and with an assumed uranium price of US$85/lbROYALTY PORTFOLIO 18
US Conventional Royalties
Anderson(1) Slick-Rock(2) Workman Creek Roca Honda(4,5)
Royalty 1% NSR 1% NSR 1% NSR 4% GRR
Location Arizona Colorado Arizona New Mexico
Geological District Date Creek Basin Grants Mineral Belt Sierra Ancha/Apache Basin Grants Mineral Belt
Owner / Operator Uranium Energy Corp. Uranium Energy Corp. Uranium Energy Corp. Energy Fuels
Orebody Type Sandstone-Hosted Sandstone-Hosted Sandstone-Hosted Sandstone-Hosted
Stage Advanced Advanced Development Development
Resources U3O8 (Mlbs) (1,2,3,5)
Indicated 17.0
Inferred 12.0 11.6 5.5
▪ Preliminary economic assessment disclosed a ▪ Preliminary economic assessment disclosed a ▪ The property comes with extensive historic ▪ The Section 17 area has a partially developed
Overview post-tax NPV(10%) of US$101.1M utilizing a post-tax NPV(10%) of US$31.9M utilizing a data consisting of 400 exploration and vertical mine shaft and haul road
fixed US$65 per pound uranium price model fixed US$60 per pound uranium price model development holes, geological mapping, ▪ Energy Fuels plans to integrate the Section 17
▪ Average life of mine operating cost of regional and detailed geochemical, area covered by the royalty into the company’s
US$30.68 per contained pound. petrographic, mineralogical paragenetic and permitting efforts
metallurgical studies
(1) Anderson resource sourced from the the technical report titled "Technical Report and PEA on the Anderson Uranium Project, Yavapai County, Arizona, USA", with an effective date of July 6, 2014, prepared for Uranium Energy Corp. and authored by Douglas Beahm, PE, PG,
Terence P. McNulty, D. Sc., P.E., Bruce Davis, FAusIMM, and Robert Sim, P.Geo. estimated in accordance with NI 43-101.
(2) Slick Rock resources sourced from the technical report titled "Technical Report Preliminary Economic Assessment, Slick Rock Project Uranium / Vanadium Deposit, San Miguel County, Southwest Colorado, USA" with an effective date of April 8, 2014, prepared for Uranium
Resources Corp. and authored by Douglas Beahm, PE, PG, Bruce Davis, FAusIMM, and Robert Sim, P. Geo. estimated in accordance with NI 43-101;
(3) Workman Creek resources sourced from the technical report titled "Technical Report on the Workman Creek Project, Central Arizona", with an effective date of March 2, 2012, prepared for Uranium Energy Corp. and authored by Neil G. McCallum, B.Sc, P.Geo., and G.H. Giroux,
MASc, P.Eng. estimated in accordance with NI 43-101.
(4) The Roca Honda royalty only applies to Section 17 of the project. The Roca Honda Technical Report with an effective date of October 27, 2016 included a preliminary economic assessment on the Roca Honda project, the assessment did not include the area covered by the Roca
Honda Royalty.
(5) Energy Fuels Form10-K for the fiscal year ended December 31, 202019 Royalty Model & Our Approach
20
20
URC OFFERS PARTNERSHIP “VALUE-ADDED” RELATIONSHIPS WITH
PORTFOLIO COUNTERPARTIES
URC is vested in the success of its portfolio counterparties
Thorough due diligence and
Ability to provide selection process offers third party
non-dilutive Project Financing endorsement to projects in
the URC portfolio
Experienced URC team offers
uranium market and
URC capital markets presence
development insights
provides expanded visibility
to counterparty management
and Boards21
THE RIGHT MODEL FOR AN IMPROVING MARKET
Operating Physical Funds
Royalty Companies vs. Operators Uranium ETF
Companies
Exposure to Uranium Price ✓ ✓ ✓ ✓
Fixed Operating Costs ✓ ✓ ✓
No Development or Sustaining
Capital Costs
✓ ✓ ✓
Exploration & Expansion Upside
Without the Associated Costs
✓
Diversified Asset Portfolio ✓ ✓ ✓
Ability to Grow Without Increased
Management
✓ ✓ ✓22
OUR STRATEGY: ROYALTY OPPORTUNITY
▪ To date URC’s strategy has been primarily ▪ Large number ▪ Focused
of active discussions
focused on acquiring existing royalties dialogues with priority
targets
▪ Typically for
shares and/or ▪ Typically cash
cash transaction
▪ The next wave of acquisitions are
anticipated to focus on new royalties,
streams, additional physical uranium, and
other uranium interests
▪ On a case by case basis
URC has a flexible strategy and desire to be a partner in growth23 Uranium Market Overview
24
24
Uranium Spot Price Reaches Nine-Year High
Up 32% in Six Weeks
At $43.00/lb, price still well below 2011 at $70 high and incentive levels for new primary production
Spot Daily Long Term
$140
$138.00
US $/lb U308
$120
$70.00
$100 2011:
Fukushima
$80 event
$45.00
$60 $43.00
$40
Financial Crisis
$20
Nov 2016: $17.75/lb
12 year low
$0
Oct 2005 Oct 2009 Oct 2013 Oct 2017 Oct 2021
Source: TradeTech; UxC, LLC: www.uxc.com25 Nuclear Energy Clean, Safe, Reliable & Economic Perfect Compliment to Renewable Wind and Solar Saves Lives and Improves Quality of Life
26
26
NUCLEAR POWER = CARBON FREE - CLEAN ENERGY
55% OF AMERICA’S CLEAN ENERGY
The only low
carbon energy
source that
provides scalable,
24-7 baseload
power
Source: World Nuclear Association – Harmony Program27
27
NUCLEAR POWER = SAFEST FORM OF ELECTRICITY GENERATION
Source: World Nuclear Association – Harmony Program
https://world-nuclear.org/our-association/what-we-do/the-harmony-programme.aspx28
2021 POLAR VORTEX – NUCLEAR RELIABILITY AT 95%
28
CAPACITY FACTOR BY ENERGY SOURCE IN 2020
Nuclear 92.5%
Geothermal 74.3%
Natural Gas 56.6%
Hydropower 41.5%
Coal 40.2%
Wind 35.4%
Solar 24.9%
Source: U.S. Energy Information Administration29
29
NUCLEAR POWER = LOWEST LEVELIZED COST OF ELECTRICITY
FOR EXTENDED LIFE PLANTS VS ANY OTHER SOURCE
Most nuclear plants in the U.S. have or will extend their operational lives by at least 20 - 40 years
Projected Costs of Generating Electricity, 2020 Edition, International Energy Agency and Nuclear Energy Agency30
30
SUPPORT FOR NUCLEAR ENERGY IS STRONG AND INCREASING
Favorability to Nuclear Energy 1983-2021
Overall, do you strongly favor, somewhat favor, somewhat oppose the use of nuclear
energy as one of the ways to provide electricity in the United States?
Source: NuclearNewswire – ANS; Nuclearmatters.com/jobs
https://www.ans.org/news/article-2974/support-for-nuclear-energy-grows-with-climate-change-concerns/31
31
NUCLEAR POWER GROWTH REMAINS ROBUST
444 Operable Reactors Worldwide
51 Units Under Construction
57 New Reactors Connected since 2012
3.1% CAGR Nuclear Growth Expected (2020-2040)1
▪ CHINA announced that it is likely to triple nuclear power capacity by 2030
▪ INDIA plans for 21 new nuclear reactors by 2031
▪ U.A.E. completed 2 reactors; 2 units under construction
▪ U.K. upgrading nuclear fleet to new advanced reactors
▪ RUSSIA is building 36 reactors in China, India, Bangladesh, Turkey, Egypt, Iran,
Finland, Belarus, Slovakia, Armenia, Uzbekistan and Hungary
▪ JAPAN 33 operable reactors, Energy Plan targeting 20-22% nuclear power,
nuclear deemed essential to achieve net-zero target by 2050
▪ U.S. is completing 2 new AP-1000 reactors in Georgia, has maintained a 20% market
share for 30 yrs with power uprates and efficiency = 32 new reactors as electricity demand
grew over 36% from 1989-2019 – A Stealth Growth Story!
Source: IAEA PRIS Sep 29, 2021; (1) WNA Fuel Report Sep 2021; NEI Dec 2020, March 202132 REACTOR DEMAND SIGNIFICANTLY EXCEEDS 32 PRIMARY PRODUCTION Spot Prices Below Production Costs and Hedges Falling Off 2021 Demand expected = 191M lbs. 2021 Production expected = 128M lbs. 2021 Production gap is 63M lbs. below requirements Cumulative gap through 2025 is 253M lbs., 372M lbs. by 2028 Source: UxC Market Outlook Q3 2021
33
33
URANIUM SUPPLY – ACCELERATED REBALANCING
Restricted Primary Supply 2016 – 2035
Mine Curtailments, Depletion and Speculative Interest Accelerating Market Rebalancing
Source: TradeTech May 31, 202134 URANIUM DEMAND 34 Need for New Production – Beyond Existing Mines ▪ Inventory Overhang Drawing Down ▪ Uranium Price Too Low to Stimulate New Production ▪ Within the Permitting and Development Lead Times to Bring On New Mines Source: TradeTech June 2021 Uranium Market Study Issue 1 – Forward Availability Model 1
35
UTILITY PROCUREMENT CYCLE: 35
Old Contracts Rolling Off… New Contracts Need to be Signed
1.4 Billion Pounds of Contracting needed by 2035!
Utility Uncommitted Demand Historic Long-Term Contracting
Source: UxC Market Outlook Q3 202136
36
U.S. URANIUM MINING & NUCLEAR ENERGY
Enjoying Historic Support in Washington D.C.
▪ Bi-Partisan Support for Nuclear Energy – ▪ Nuclear Fuel Working Group Develops Strategy to
First Time in 48 years Democratic Party Restore America’s Nuclear Fuel Supply Chain & Global
Platform Supports Nuclear Energy Market Position
▪ The U.S. Senate has passed a Bipartisan ▪ Strategic Uranium Reserve Budget is $1.5 Billion over
infrastructure bill that provides a $6B 10 years for Domestic Uranium and Conversion ($75
nuclear credit program for qualifying nuclear Million Appropriations expected for fiscal 2022)
plants with priority given to reactors using
uranium produced in the United States ▪ DOC Amends Russian
Suspension Agreement to
▪ The U.S. has set a goal to reach 100% Limit and Reduce Imports
carbon pollution-free electricity by 2035 – from Russia – up to 75%
Nuclear Energy “Absolutely Essential” Compared to Prior RSA
(US Energy Secretary Jennifer Granholm)
▪ World’s Largest Nuclear Reactor Fleet
Over Reliance on Imports Prompts
National Security Concerns – No U.S.
Production37 INVESTMENT SUMMARY URC OFFERS INVESTORS: ▪ First mover pure-play uranium royalty exposure ▪ Royalty portfolio covering array of development projects in key jurisdictions with the right partners ▪ Challenging market conditions create mutually beneficial royalty financing opportunities ▪ Team with extensive uranium industry experience, knowledge and access ▪ Nuclear energy gaining broader acceptance in a carbon-constrained world ▪ Robust uranium demand and curtailed mine production rebalancing market fundamentals ▪ $1.5B for a Strategic Uranium Reserve over 10 years for U.S. domestic uranium and conversion ($75M in Appropriations expected for fiscal 2022) ▪ Market Fundamentals continue to improve with a growing deficit between primary production and reactor requirements
38 Appendix
39
39
ROYALTY AND STREAMS 101
“Royalties” are a payment to a royalty holder by a property owner, or project operator, and is typically based on a
percentage of the minerals produced and the revenues or profits generated from the property
“Streams” are physical commodity purchase agreements where, in exchange for an upfront deposit and ongoing
payments for metal delivered, the holder purchases all or a portion of one or more metals produced from a mine, at a
preset price.
Up-front payment for Operating
Royalty Company Company
royalty or stream
Payment for stream
delivery Operating
Royalty Company Company
Royalty or stream
delivery40
TYPES OF ROYALTIES
▪ Based on the total revenue stream from the sale of production from the property, which can sometimes include
Gross Overriding Royalty
deductions.
(GOR)
▪ URC GOR royalties include McArthur River
▪ Based on the total revenue stream from the sale of production from the property, which can sometimes include
Gross Revenue Royalty
deductions.
(GRR) ▪ URC GRR royalties include Michelin, Lance, Roca Honda, and the option on Diabase.
Net Profit Interest ▪ Based on the profit realized after deducting costs related to production.
(NPI) ▪ URC has a NPI royalty on Reno Creek, Dewey-Burdock, Cigar Lake, and the option on Dawn Lake
Net Smelter Returns ▪ Based on the value of production or net proceeds received by the operator from a smelter or refinery.
(NSR) ▪ URC NSR royalties include Roughrider, Church Rock, Anderson, Slick Rock, and Workman Creek.
Production Royalty ▪ Based on metal produced, often at a predetermined fixed price.
(PR) ▪ URC has a PR on the Langer Heinrich Project.
▪ Streams are distinct from royalties. They are metal purchase agreements where, in exchange for an upfront
deposit and ongoing payments for metal delivered, the holder purchases all or a portion of one or more metals
Metal Streams produced from a mine, at a preset price.
▪ URC does not currently hold any streaming interests. However, part of its strategy includes the potential
acquisition of streams on primary uranium and uranium by-product assets.
▪ Widely used in the global mining sector.41
UROY: NASDAQ | URC: TSX-V
The First and Only Pure Play Uranium Royalty Company
Uranium Royalty Corp. Corporate Office: President & CEO:
Toll Free: 1.855.396.8222 1030 West Georgia Street, Scott Melbye
Phone: 604.396.8222 Suite 1830, Vancouver,
Email: Info@UraniumRoyalty.com BC, V6E 2Y3 Investor Relations:
www.UraniumRoyalty.com Canada Phone: 604.396.8222
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