PLS: Athabasca's Shallow Depth, Highly Awarded Uranium Project - Toronto April 15 - 16, 2019 - Fission Uranium Corp.
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Exploration Project
of the Year
PLS: Athabasca’s Shallow Depth,
Highly Awarded Uranium Project
Toronto
April 15 - 16, 2019
FissionUranium.com
1
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.
TSX: FCU OTCQX: FCUUF 2
Technical Information
Certain of the technical information contained herein is derived from the April 15, 2019 news release entitled “[TBD],” 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:
• Four years of pre-production and 8 years of mine life, processing nominally 1,000 tonnes per day (350,000 tonnes per year)
• Total Tonnes Processed: 2.89 million tonnes at 1.42% U3O8 average grade; open pit mining of 2.30 million tonnes at 1.62% U3O8
• Underground mining of 0.59 million tonnes at 0.63% U3O8
• 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
Revenue:
• Long term uranium price of US$50 / lb U3O8
• Exchange rate of 0.75 US$ / C$1.00
• Gross revenue of $5.84 billion, less Saskatchewan gross revenue royalties of $423 million
• Net revenue of $5.41 billion
Operating Costs
• Average OPEX of $9.03/lb (US$6.77/lb) U3O8 over the life of mine
• Unit Operating Costs of $274 per tonne processed.
• Combined Mining $89 per tonne processed
• Processing: $115 per tonne processed
• Surface and G&A: $71 per tonne processed
• Operating cash flow of $4.62 billion
Capital Costs
• Pre-Production capital costs of $1.498 billion
• Dyke and Slurry Wall $371 million
• Open pit mining $44 million
• Process plant $241 million
• Tailings Facility $101 million
• Infrastructure $114 million
• Indirects & Owner’s Costs $376 million
• Contingency $250 million
• Sustaining capital costs of $137 million (includes all underground mine capital costs, and tailings dam lifts)
• Reclamation and closure cost of $77 million
• Cash flow from operations of $2.91 billion
TSX: FCU OTCQX: FCUUF 3
Electricity Demand +150% by 2035
Reactor
Builds at
452 Current Reactors
Operation 55 Under
Construction 151 Planned 355 Proposed
25 year high
RUSSIA: +22
CHINA: +136
EUROPE: +35
USA: +28
SAUDI ARABIA: +16
E. ASIA: +10
UAE: +10
INDIA: +28
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 4
Moving 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 Source: World Nuclear News
5
TSX: FCU OTCQX: FCUUF 5
Moving Forward
Small Modular Reactors (SMR’s)
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 as opposed to 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
Source: World Nuclear News
6
TSX: FCU OTCQX: FCUUF 6
Plans For New Reactors Worldwide
Source: https://pris.iaea.org/pris/
Reactors: Uranium Requirements & Future Nuclear Power
Source: WNA October 2018
452 Nuclear power reactors in 151 Nuclear power reactors
operation planned
55 Nuclear power reactors under 335 Nuclear power reactors
construction proposed
TSX: FCU OTCQX: FCUUF 7
China’s Strong Nuclear Buildout
China’s Reactor Construction Boom
2030 Estimate
150 reactors in operation* 240
33
50 under construction*
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%
Beijing, China: Air Quality Red Alert *CGN Personal communication
TSX: FCU OTCQX: FCUUF 8
Japanese 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 9 reactors have currently 2 reactors under
the issue of climate change,” restarted construction
Shinzo Abe, re-elected Prime Minister of
Japan Oct. 2107 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 9
Supply Side Vulnerable to Geopolitical Instabilities
Nearly 60% of primary supply comes from politically unstable countries
Saskatchewan, Canada:
Ranked #1 mining investment jurisdiction in 2017 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 uranium
39%
production by 20%)
22%
Politically unstable
Permitting issues
Canada 13.8%
(indefinite suspensions at 7.9% Stable & supportive
McArthur River)
Africa Russia & E. Europe
All figures from Uranium Investing News (based on World Nuclear Association country reports)
TSX: FCU OTCQX: FCUUF 101B 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 Lk and Eagle Pt
Production cuts at Cigar Lake
U3O8 M lb
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 11Pressure 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 12Stage Set for Higher Uranium Prices
Cameco CEO, Tim Gitzel, says today Cameco can buy uranium
on the market cheaper than they can produce it, which is what
they plan to do.
“…we’re going to reduce supply and we’re going to add to the
demand by going out to buy so that will bring better times
sooner rather than just continuing to produce into the market.”
Interview with Tim Gitzel and Country 600 CJWW / Saskatoon, SK, CA
UxC BAP TTM Chart
November 8, 2017 – Cameco
suspends production from
McArthur indefinitely. Will
purchase uranium to meet
delivery commitments.
Source: Data from the Ux Consulting Company, LLC http://www.uxc.com/, Haywood Securities
TSX: FCU OTCQX: FCUUF 13Building Shareholder Value Since 1996
Strathmore Minerals Corp (‘96) Energy Fuels
1996 – U3O8 spot at $7/lb Acquires Strathmore in 2013
$2M Mkt Cap to > $457M (‘07)
JV Sumitomo (Japan) ($50M)
Fission Energy Corp (‘07)
JV KEPCO (Korea) ($44M) Fission Uranium Corp (‘13)
J-Zone Discovery & Sale to Denison Takeover of Alpha Minerals
($85M) Triple R 43-101 Resource 87.76M
Indicated / 52.85M Inferred
PEA – OPEX $14.02/lb US
Fission 3.0 Corp (‘13)
CGN (Chinese Utility) buys 19.99%
Project Generator with several high- ($82M)
potential projects: drilling-boulders-
Fission 3.0 Spin-Out
geochem-geophysics-showings
Rhyolite to spend C$22M to earn-in
80% of Macusani Assets
TSX: FCU OTCQX: FCUUF 15Award Winning Project and Team
Dev Randhawa • Ross McElroy
Mining Person/s of the Year, 2013
TSX: FCU OTCQX: FCUUF 15Major Exploration Success and Strong Prospects
New Discoveries: Still Early Days
Large, High Grade, Shallow,
Open Pit
Project Backed by PFS
Leading Jurisdiction
TSX: FCU OTCQX: FCUUF 16Athabasca: The Premier High-Grade Uranium District
% U3O8
ENVIRONMENT
• Political stability
• Pro-mining
• Permitting
INFRASTRUCTURE
• Mills nearby
• Power Grid
• Highways & Air
EXPERIENCE
• 60+ years of mining
• Supplies 22% of the world’s uranium
TSX: FCU OTCQX: FCUUF 18Canada’s Athabasca Basin District
TSX: FCU OTCQX: FCUUF 18Low Hanging Fruit Picked First
Triple R McArthur Arrow
Mined Out (FCU) Midwest River
Key Lake Phoenix
In production McClean Cigar Shea
Millennium
Cluff Lake Lake Roughrider Lake Creek
Undeveloped
Discoveries
100
Exploration 200
“Sweet-Spot”
300
400
500
600
700
800
900
McClean Lake Mine, Saskatchewan, Canada
TSX: FCU OTCQX: FCUUF 19PLS: Triple R Deposit & New Zones
“Total E-W strike length is now well beyond that of even Cigar Lake (1.95 km) or McArthur
River (1.70 km) – such a lateral extent to us underlines the magnitude of the strength of
the mineralizing system at PLS.”
Raymond James
TSX: FCU OTCQX: FCUUF 20Triple R Deposit – 3.2km Mineralized Trend
W E
Triple R Deposit – Economic U3O8 Resources(1)
Indicated 103.7M lbs at 1.85% U3O8
Inferred 32.8M lbs at 1.20% U3O8
(1) Please see legal disclaimer on slides 2 and 3 of this presentation
TSX: FCU OTCQX: FCUUF 212019 Winter Drill Program – areas of work
TSX: FCU OTCQX: FCUUF 22R780E Resource Expansion Drill Holes
TSX: FCU OTCQX: FCUUF 23Progressing Triple R Towards Production
Q1, 2018 Q3, 2018 Q2 2019 2020
Resource Update Summer PFS Work PFS Completed FS Complete
Zone Expansion Submit EA
R00E
R780E
Triple R Deposit – Resource Estimate (1)
Indicated 103.7M lbs at 1.85% U3O8
Inferred 32.8M lbs at 1.20% U3O8
(1) Please see legal disclaimer on slides 2 and 3 of this presentation
TSX: FCU OTCQX: FCUUF 24How the Triple R Measures Up: Base Case Economics
Average OPEX of US$6.77/lb U3O8 Rapid pay back (2 yr pre-tax) / 2.3 yr (post-tax)
Pre-tax NPV $1.32B (8% discount rate) Pre-tax Net Cash Flow over LOM of $2.9B, post-tax
$1.8B
IRR: Pre-tax 29%, post-tax 21%
Estimated CAPEX of $1.49B
18% Increase in Indicated Resource
from Feb 2018
Project OPEX (US$/lb U3O8) Owner/Operator
Triple R $6.77 Average OPEX(1) Fission Uranium
Kazakhstan Avg (ISL mining) $15.41 (2) Uranium One
Cigar Lake, Canada $15.70 (3) Cameco
McArthur River, Canada $16.34 (4) Cameco
Willow Creek, US (ISL mining) $33.85 (5) Uranium One
(1) Base case using US$50/lb U3O8 and an exchange rate of US$0.75:C$1.00
(2) Uranium One Inc., Audited Annual Consolidated Financial Statements For the years ended December 31, 2014 and 2013
(3) Cigar Lake Project NI 43-101 Technical Report, February 24, 2012
(4) McArthur River Operation NI 43-101 Technical Report, November 2, 2012
(5) Uranium One Inc., Audited Annual Consolidated Financial Statements For the years ended December 31, 2014 and 2013
TSX: FCU OTCQX: FCUUF 25PFS – Key Take Aways
Optionality
Potential to develop mine as combination open pit / underground or underground only
Low OPEX:
Base Case of US$6.77/lb U3O8
UG Only PEA Case of US$7.17/lb U3O8
CAPEX:
Base Case of C$1.49B (reflecting the Company’s conservative approach)
UG Only PEA Case of C$1.19B (lower CAPEX, less construction time, higher IRR)
Resource Growth
Increase in Indicated resource by 18% from February 2018
Resource Expansion:
Growth Opportunities to convert inferred to indicated resources
▪ R780E still open at depth and along plunge to east
▪ R1515W, R840W, R1620E zones mostly inferred and not included in the mine reserve
plan
TSX: FCU OTCQX: FCUUF 26PFS Base Case vs UG Only
OP/UG PFS Base
Item Units Case UG Only PEA Case
Construction Period Years 4 3
Mining Mt 2.89 2.55
% U3O8 1.42 1.64
Mine Life Years 8.2 7.3
Production M lbs U3O8 90.5 81.4
Operating Costs C$/t 274 335
C$/lb U3O8 9.03 9.57
Initial Capital Cost C$ M 1,498 1,194
Sustaining Capital Cost C$ M 137 258
Pre-Tax Cash Flow C$ M 2,910 2,587
After-Tax Cash Flow C$ M 1,759 1,533
After-Tax NPV @8% C$ M 693 696
After-Tax IRR % 21 26
TSX: FCU OTCQX: FCUUF 27How the Triple R Measures Up: Annual Production
2016
Mining Percent of
Position Project Location Production
Method Total
(M lbs U3O8)
1 McArthur River Canada UG 18.0 11%
2 Cigar Lake Canada UG 17.3 11%
Triple R
3 Katco Kazakhstan ISR 10.4 7%
4 Olympic Dam Australia UG 9.6 6%
5 Central Mining Uzbekistan ISR 6.2 4%
District
6 Inkai Kazakhstan ISR 5.7 4%
7 Somair Niger OP 5.6 4%
8 Karatau Kazakhstan ISR 5.4 3%
9 Ranger Australia OP 5.2 3%
10 South Inkai Kazakhstan ISR 5.1 3%
- Remaining - - 69.2 44%
Total 157.7 100%
Source: SNL Metals and Mining
>50% of global uranium supplied by 10 mines
Averaging +15M lbs per year in first 5 years, Triple R positioned to be one of the top
global producers and the largest open pit production
TSX: FCU OTCQX: FCUUF 28Moving Forward
Competitive Advantage
• Shallow, Large, High-Grade
• Optionality of Combination Open Pit / Underground or
Underground only
2019-2020 Goals
• Pre Feasibility Study completed April, 2019
• Advance UG to PFS (by July 2019)
• Continue towards Feasibility Study
Feasibility Study Work
• Grow by conversion to indicated from R780E, R00E (20
holes) and zones outside of PFS resource (40 holes)
• Permitting
• Feasibility level mine design, scheduling and cost
estimation
TSX: FCU OTCQX: FCUUF 29Corporate Information
Financial Summary Analyst Coverage
Market Cap: C$ 282 million Alex Pierce – BMO Capital Markets, London
(as at April 12, 2019)
David Talbot — Eight Capital, Toronto
Cash: C$ 15.0 million
(as at March 31, 2019) Colin Healey — Haywood Securities, Vancouver
Heiko Ihle — H. C. Wainwright & Co., New York
Shares outstanding: 486.0 million Tyron Breytenbach — Cormark Securities, Toronto
Options: 30.4 million
Fully diluted: 516.4 million
(as at Jan 31, 2019)
Board of Directors:
Executive Management Team: Advisory Board:
Dev Randhawa - Chairman
Dev Randhawa, MBA — CEO Ron Netolitzky
Ross McElroy
Ross McElroy, P.Geol. — President & Michael Halvorson
Frank Estergaard
COO Mark Wittrup
William Marsh
Chief Teddy Clark
Rob Chang
Darian Yip
Paul Ma
Deshao Chen
TSX: FCU OTCQX: FCUUF 30Fission’s Management Team
Dev Randhawa, Chairman & CEO Paul Charlish, CFO, Corporate Secretary
▪ Fission Energy founding CEO and chairman from 2007 to 2013 ▪ 30 years specialization in the mining sector
leading company to Tier One status ▪ Experience in mergers, acquisitions, spin outs and divestments
▪ Finance Monthly ‘Dealmaker of the Year 2013’, Northern for mining companies, including Fission Energy and Fission
Miner ‘Person of the Year 2013’ Uranium
▪ Founder of Pacific Asia China Energy, sold for $34M
Ray Ashley, VP Exploration
Ross McElroy, President and COO ▪ Professional geophysicist with 30+ years
▪ Formerly with Cameco, Areva, BHP Billiton ▪ Responsible for PLS field operations
▪ PDAC 2014 ‘Bill Dennis Award for Exploration Success’, ▪ Involved in several important discoveries including a key role
Northern Miner ‘Person of the Year 2013’ in the Ekati diamond mine discovery
▪ Significant role in 4 major uranium discoveries in Athabasca
Basin, incl. Fission’s Waterbury Lake & PLS
▪ Professional geologist of 30+ yrs exp
TSX: FCU OTCQX: FCUUF 31Fission Uranium Corp. Phone: +1 250 868 8140 Toll Free: +1 877 868 8140 (North America) Web: www.fissionuranium.com Investor Relations: Email: ir@fissionuranium.com
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