UEX Corporation Enhancing Shareholder Value through Cobalt Focussed on Growing Christie Lake Uranium

Transcription

1 UEX Corporation Enhancing Shareholder Value through Cobalt Focussed on Growing Christie Lake Uranium

2 FORWARD LOOKING STATEMENT FORWARD-LOOKING INFORMATION AND STATEMENTS: Certain statements and other information contained in this presentation may constitute forward-looking information within the meaning of applicable Canadian securities legislation or constitute forward-looking statements within the meaning of applicable United States securities legislation. Such statements are based on UEX's current expectations, estimates, forecasts and projections. Such forward-looking information includes statements regarding the proposed spin out of CoEX shares, the WBU Deposit drill program, UEX's drill hole results, the likelihood of REG and scintillometer results being confirmed by assays, mineral resource and mineral reserve estimates, uranium, cobalt and nickel prices, outlook for our future operations, plans and timing for exploration activities, and other expectations, intentions and plans that are not historical fact. Such forward-looking information is based on certain factors and assumptions and is subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by such forward-looking information. Important factors that could cause actual results to differ materially from UEX's expectations include uncertainties relating to the possible spin-out of CoEX, interpretation of drill results and geology, reliability of REG results produced by the Company s down-hole probing system, scintillometer results, assay confirmation, additional drilling results, continuity and grade of deposits, participation in joint ventures, reliance on other companies as operators, public acceptance of uranium as an energy source, fluctuations in uranium, cobalt and nickel prices and currency exchange rates, changes in environmental and other laws affecting uranium, cobalt and nickel exploration and mining, and other risks and uncertainties disclosed in UEX's Annual Information Form and other filings with the applicable Canadian securities commissions on SEDAR. Many of these factors are beyond the control of UEX. Consequently, all forward-looking information contained in this news release is qualified by this cautionary statement and there can be no assurance that the CoEX spin-out will occur as proposed or at all, or that actual results or developments anticipated by UEX will be realized. For the reasons set forth above, investors should not place undue reliance on such forward-looking information. Except as required by applicable law, UEX disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise. NOTICE TO U.S. PERSONS: The information in this presentation has been prepared in accordance with the requirements of Canadian securities laws, which differ from the requirements of United States securities laws. Information, including scientific or technical information, has been prepared in accordance with National Instrument Standards of Disclosure for Mineral Projects ( N.I ). N.I is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Canadian standards, including N.I , differ significantly from the requirements of the SEC. For example, the terms indicated mineral resources and inferred mineral resources are used in this publication to comply with the reporting standards in Canada. While those terms are recognized and required by Canadian regulations, the SEC does not recognize them. Under United States standards, mineralization may not be classified as a reserve unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. Readers should understand that indicated mineral resources and inferred mineral resources have a great amount of uncertainty as to their existence and as to their economic and legal feasibility. Readers are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into mineral reserves. In accordance with Canadian rules, estimates of inferred mineral resources cannot form the basis of feasibility or other economic studies. In addition, the definitions of proven and probable mineral reserves used in N.I differ from the definitions in the SEC Industry Guide 7. Disclosure of contained pounds is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute reserves as in place tonnage and grade without reference to unit measures. Accordingly, information contained in this publication describing the Company s mineral properties may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements under the United States federal securities laws and the rules and regulations thereunder. QUALIFIED PERSON: Technical information in this presentation has been reviewed and approved by Roger Lemaitre, P.Eng., P.Geo., UEX s President and CEO, who is a Qualified Person as defined by N.I

3 UEX s Unique Investor Value POISED FOR GROWTH THROUGH WEST BEAR COBALT AND CHRISTIE LAKE URANIUM Substantial existing resource base Low Cost West Bear Cobalt- Nickel Deposit Expansion Ōrora Discovery & Uranium Potential At Christie Lake Valuation Comparison

4 Impressive Portfolio Shea Creek (49.1% UEX, 50.9% Orano) 4 Uranium Deposits open for significant basement expansion Combined Resources (all categories) 95.8 M lbs U3O8 - UEX share M lbs Horseshoe-Raven (100% UEX) 2 Uranium Deposits m depths - conventional mining Heap Leach testing shows 98% recovery Combined Resources (all categories) M lbs U3O8 Large portfolio of Athabasca uranium and cobalt projects spanning brownfield through grassroots projects Growing Resource Base of: 98.6 M lbs U3O M lbs Cobalt M lb Nickel 287,847 hectares of mineral rights Christie Lake (60% UEX) 3 Uranium Deposits High Grade Ōrora Discovery in 2017 Combined Resources M lbs U3O8 - UEX share M lbs West Bear (100% UEX) 1 Cobalt Deposit m depths - open pit mining High-grade zones completely wide open for expansion C$0.50/lb discovery cost Inferred resource of 3.2 M lb Co and 1.9 M lbs Ni Shallowest undeveloped uranium resource in Canada 1.58 M lbs U3O8

5 Our Growth Strategy To extract value for UEX shareholders from our West Bear Cobalt-Nickel Deposit to take advantage of the rapid growth in the demand for cobalt due to the anticipated growth in electric vehicle manufacturing. To discover, delineate and develop economic uranium resources at Christie Lake. To advance the evaluation/development process at our 100%- owned Horseshoe and Raven uranium deposits to a production decision once uranium commodity prices have demonstrated a sustained recovery from current spot and long-term prices. To continue the exploration and evaluation work required to delineate and develop economic uranium resources at Shea Creek. To find new uranium deposits at the 100%-owned Hidden Bay Project and at the Western Athabasca Projects with our jointventure partner Orano. To evaluate and make timely acquisitions of uranium and cobalt projects in favourable, low-cost jurisdictions.

6 Our Competitive Advantage LOCATION #2 Global mining investment jurisdiction Mining Friendly Stakeholders Saskatchewan s Athabasca Basin Infrastructure-blessed Low-cost world class uranium district EXPERIENCE Over 105 yrs experience executing Athabasca exploration programs Our team has been involved in over eight new deposit discoveries and several more new showings Unique understanding of Athabasca Cobalt-Nickel Deposits

7 Forecast EV Sales Actual EV Sales - H and 2018 H H Source: BloombergNEF Source: Sherritt

8 17% CAGR for Cobalt Demand Source: BloombergNEF Source: Sherritt

9 2017 World Cobalt Production 111,000 tonnes Co DRC 58.8% Source: USGS & US Department of the Interior Mineral Deposit Commodity Summaries 2018 DRC Other Russia Australia Canada Cuba Phillipines Phillipines Madagascar Papua New Guinea Zambia New Caledonia South Africa

10 WEST BEAR PROJECT - COBALT DRIVEN West Bear Co-Ni Deposit CANADA S FIRST AND SHALLOWEST HIGH-GRADE COBALT-DRIVEN RESOURCE CHEAP DISCOVERY COST WITH WIDE OPEN GROWTH POTENTIAL MULTIPLE SATELLITE TARGETS AND UNIQUE EXPLORATION UNDERSTANDING

11 Cobalt-Driven Cobalt Metal Prices Co $ 55,250 $/t Cu $ 6,259 $/t Ni $ 11,190 $/t Au $ 1,225 oz Ag $ oz Pt $ 844 oz Pd $ 1,182 oz Bi $ 8,818 $/t As of Nov 16, 2018

12 The West Bear Project Contains the West Bear Co-Ni Deposit Discovered in M lbs 0.50% & 1.78 M lbs Ni at 0.29% Discovery Cost of $0.50/lb Co exclusive of Ni credits Contains the West Bear Uranium Deposit Discovered in M lbs 0.98% Shallowest undeveloped uranium deposit in the Basin Part of UEX s continuous 65,000 ha land package with >150 m sandstone cover

13 plus the shallowest U Deposit in the Athabasca Current resource of 1.58 M lbs at 0.91% U3O8 Preliminary Feasibility Study completed on the uranium deposit in 2010 Classic unconformity deposit with depths of m and a strike length of 530 m May sit above extensions of the West Bear Cobalt-Nickel Deposit Several uranium showings that also have Co-Ni potential Pebble Hill Umpherville % U3O8 / 5 ft North Shore Occurrence

14 Cobalt Assays Year Hole Depth Core Length Cobalt Nickel From (m) To (m) (m)* (wt% Co) (wt% Ni) WBE WBE WBE WBE WBE including WBE including WBE WBC including WBC including WBC including and WBC including WBC including or and WBC including WBC including and * True widths are estimated to be % of core lengths

15 Mineralogy Cobalt mineralization is dominated by skutterudite (CoAs2-3) Nickel solid substitution for cobalt in skutterudite MODAL MINERALOGY - 4 SAMPLES QEMSCAN SURVEY Bio Kaol Uranium is absent (so far) Illite-Chlorite dominant with low kaolinite-dravite Chl Illite Musc Qtz Ox Sku Sku

16 Part of the West Bear System

17 Low Risk Expansion Co-Ni mineralization occurs below West Bear Uranium Deposit west of the current cobalt-nickel deposit and is untested by drilling Co-Ni concentrations below the uranium deposit are similar to Co-Ni concentrations at the NE end of the West Bear Co-Ni Deposit as it is currently defined Why is this important?

18 A B Untested Down Dip A 100 m B

19 Co-Ni at the Unconformity Plan View Drill Defined Co-Ni at the unconformity West Bear Uranium Deposit 100 m Longitudinal Section

20 2019 Winter Program - Cobalt 17,000 m of drilling by mid-q holes Historical discovery cost of $0.50/lb Co exclusive of nickel credits Goal is to reach study phase by Q4 $4.25 million budget

21 Cobalt Potential of the West Bear Dome Holes > 0.1% eu3o ppm Co & 1400 ppm Cu 835 ppm spot Ni & 1790 ppm U West Bear

22 Signposts of a Market Shift The return of long-term contracting by utilities Japan nuclear power plant restarts Reactor construction Public sentiment Inventories Supply performance - continued discipline

23 Strong Nuclear Growth 55 REACTORS UNDER CONSTRUCTION Many more reactors under consideration CHINA S NUCLEAR PROGRAM ON TRACK Goal to meet 58 GWe target by 2020 Billions invested in new builds Investing in uranium projects CHINA 17 INDIA 6 INDIA 21 new reactors online by 2031 RUSSIA REACTOR EXPORT DOMINANCE 2018 saw major deals inked with China, India and Uzbekistan RUSSIA 6 UAE 4

24

25 CHRISTIE LAKE URANIUM PROJECT ONLY JUNIOR WITH LAND BETWEEN CIGAR LAKE AND MCARTHUR RIVER ONLY JUNIOR WITH A SEGMENT OF THE WORLD-CLASS P2 FAULT EXTENSIVE STRIKE-LENGTH OF UNTESTED CONDUCTORS ALONG MINERALIZED STRUCTURES

26 Christie Lake History PRE-UEX Staked by PNC in 1986 Paul Bay discovered in yr after McArthur River Ken Pen discovered in 1994 Idle from Focus on graphite-unconformity intersection UEX WORK 60% interest in joint venture with JCU (40%) Extended Paul Bay Deposit in 2016 Discovered Ōrora Deposit in 2017 Maiden Resource completed in December 2018 UEX Focus has been exclusively on the Yalowega Trend

27 2019 Program Focus will move from the Ōrora-Paul Bay segment of the Yalowega Trend to find the next new deposit SW Yalowega Trend B Conductor Trend A Conductor Trend Several easy targets remaining will be looking for geophysics to help prioritize targets 2019 Budget of $2.0 million Phase I - Property Wide Resistivity Surveying (Spring) Phase II - Drilling (Summer-Fall) ddh - 4,800 m Yalowega Trend southwest of Paul Bay B Conductor following up existing mineralization!27

28 3D Long Section View - All Deposits - Looking NW Athabasca U deposits with basement component commonly form along trends 1-3 km long Shea Creek (UEX) Collins Bay to Eagle Point (Rabbit Lake) Gartner-Deilman (Key Lake) Sue A-E (McClean Lake) Triple R - Arrow - Spitfire (FCU-NXE-PTU) Midwest-Roughrider-Huskie (Orano-Denison) Raven & Horseshoe (UEX) Plunge deposits common along mineralized trends 2km untested Yalowega Trend Paul Bay Ken Pen Ōrora 400 m

29 On the Horizon Development of Horseshoe-Raven Located in the heart of the Eastern Athabasca Basin with road and power crossing the deposits themselves PEA completed in 2011 using toll-milling option requiring industrycomparable uranium-prices for other development projects Encouraging Heap Leach testing & Scoping Study in 2015 Basement Exploration - Hidden Bay 10 high-priority basement exploration targets have been identified for drilling in under m of sandstone cover CoEX Spin-out of West Bear Continually monitoring the market for the optimum time to complete the spin-out to the maximum benefit of existing shareholders

30 UEX s Unique Investor Value POISED FOR GROWTH THROUGH WEST BEAR COBALT AND CHRISTIE LAKE URANIUM Substantial existing resource base Low Cost West Bear Cobalt- Nickel Deposit Expansion Ōrora Discovery & Uranium Potential At Christie Lake Valuation Comparison

31 CORPORATE SUMMARY Shares Issued & Outstanding 381,385,811 Fully Diluted 427,506,205 Options 27,567,000 Warrants 16,903,394 Share Price $0.18 Market Capitalization $68,649,446 Daily Trading Volume (3 month - Dec 31, 2018) 683,402 Shareholders Cameco Corporation 13.12% Stephen Sorensen 8.91% Blackrock Investment Management 2.29% Global X Uranium ETF 1.19% RBC Asset Management 0.99% UEX Corporation Unit Millar Avenue Saskatoon, SK S7P 0B6 uex@uex-corporation.com Investor Inquiries - Laurie Thomas, VP Corporate Relations lthomas@uex-corporation.com or