Canada s Blue Chip Uranium

Transcription

1 Canada s Blue Chip Uranium Junior TSX: UEX International OTC Markets UEXCF.PK Frankfurt: UXO.F Forward Looking Statements 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 information and statements are based on UEX's current expectations, estimates, forecasts and projections. These forward looking statements include statements regarding UEX s outlook for our future operations, plans and timing for exploration activities, and other expectations, intentions and plans that are not historical fact. The words estimates, projects, expects, intends, believes, plans, or their negatives or other comparable words and phrases are intended to identify forward looking statements. Such forward looking statements are based on certain factors and assumptions and are 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 statements. Important factors that could causeactual results to differ materially from UEX's expectations include uncertainties relating to interpretation of drill results and geology, 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 prices and currency exchange rates, changes in environmental andotherlaws affecting uranium exploration and mining, and other risks and uncertainties disclosed in UEX's Annual Information Form and other filings with the applicable securities commissions in Canada. Many of these factors are beyond the control of UEX. Consequently, all forward looking statements made herein are qualified by this cautionary statement and there can be no assurance thatactual 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 statements. Except as required by applicable law, UEX disclaims any intention or obligation to update or revise forward looking information,whetherasaresult ofnewinformation, 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 Standardsof d 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 economicand legall feasibility. Readers are cautioned not to assume thatt any part or all of the mineral deposits in these categories will ever beconverted tdinto 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 R. Sierd Eriks, P.Geo., UEX s Vice President of Exploration who is a Qualified Person as defined by N.I TSX: UEX 2 corporation.com

2 Why Invest in UEX? UEX has pounds in the ground and tracks U price Millions of Pounds of U 3 O Indicated Resource (UEX s share) Inferred Resource (UEX s share) Rapid Growth in Nuclear Power Looming uranium supply deficit Analysts consensus share price target for UEX Our valuation compared to recent activity TSX: UEX 3 corporation.com UEX Team Strong Management Team Graham Thody, CA Director Roger Lemaitre, P.Eng., P.Geo. President, CEO & Director Ed Boney, CA CFO & Corporate Secretary R. Sierd Eriks, P.Geo. VP Exploration Nan Lee, P.Eng. VP Project Development Mark Eaton Chairman of UEX & Director Suraj Ahuja, M.Sc, P.Geo. Director Developing World Class Uranium Resources in Canada s Athabasca Basin Knowledgeable Management Advisory Board Colin Macdonald, M.Sc Director Emmet McGrath, CA Director Experienced Board of Directors David Rhys, M.Sc, P.Geo. Management Advisory Board Walter Segsworth, P.Eng. Management Advisory Board TSX: UEX 4 corporation.com

3 Corporate Summary Shares Issued and outstanding 227,838,679 Fully diluted 245,659,679 Options 17,821,000 Weighted Average Exercise Price for Options $ 0.93 Warrants Nil Share Price April 23 rd $ 0.49 Market Capitalization $ 111,640,000 Daily Trading Volume (Q1 average) 826,600 Significant shareholders Cameco Corporation 21.95% Global X Uranium ETF 5.46% Black Rock Investment Management 3.95% Current/Retired Management & Directors 1.53% Cash position as at March 31, 2014 (estimated) $ 7.7 million TSX: UEX 5 corporation.com UEX Share Price versus U 3 O 8 Prices 3 8 Our share price tracks the spot price much like a blue chip commodity company Beginning of Global Financial Crisis Fukushima Disaster TSX: UEX 6 corporation.com

4 Total Uranium Resources N.I Mineral Resource Estimates Millions of Pounds of U 3 O 8 by Category and by Project Indicated Resource (UEX s share) Inferred Resource (UEX s share) Shea Creek Indicated Category Shea Creek Inferred Category Grade U 3 O 8 Grade U 3 O 8 Deposit Tonnes (%) U 3 O 8 (lbs) Tonnes (%) U 3 O 8 (lbs) Kianna* 1,034, ,805, , ,867,000 Anne* 564, ,760, , ,617,000 Colette* 327, ,680, , ,780,000 58B* 141, ,471,000 83, ,000 Totals* 2,067, ,663,000 1,272, ,192,000 Millions of pounds of U 3 O Shea Creek (UEX's 49.1% share) Hidden Bay Hidden Bay Indicated Category Hidden Bay Inferred Category Grade Grade U 3 O 8 U 3 O 8 U 3 O 8 U 3 O 8 Deposit Tonnes (%) (lbs) Tonnes (%) (lbs) Horseshoe 5,119, ,895, , ,049,000 Raven 5,173, ,149, , ,666,000 West Bear 78, ,579,000 Totals 10,372, ,623,000 1,109, ,715,000 * Joint venture with 49.1% UEX / 50.9% AREVA ownership TSX: UEX 7 corporation.com The Athabasca Uranium Advantage Saskatchewan is uranium mining friendly; Canada is a politically stable environment Established uranium mining infrastructure and labour force in the Athabasca Basin Canada s Athabasca Basin contains the highest grade uranium deposits worldwide Expanding uranium export markets: new trade agreements with China and India TSX: UEX 8 corporation.com

5 UEX Major Assets TSX: UEX 9 corporation.com Shea Creek Project 49.1%owned Original discovery hole SHE % U 3 O 8 over 04m 0.4 Joint venture between UEX (49.1%) and AREVA Resources Canada (50.9%) Hosts the second largest undeveloped uranium resource in the Athabasca Basin. Four deposits are distributed along a strike length of over 3 kilometres at the north end of the 33 km long Saskatoon Lake Conductor. Year round access by Provincial Highway 955. Brownfields and greenfields exploration potential: Existing lenses remain open for resource expansion Drill indicated mineralization still awaits follow up south of the Anne Deposit 30 km of Saskatoon Lake Conductor still to be explored Newly defined Saskatoon Lake East Conductor has all the right elements TSX: UEX 10 corporation.com

6 Shea Creek High Grade Mineralization Colette Deposit 58B Deposit 80% of total Kianna Deposit resource Shea Creek Deposits Wireframe Model Anne Deposit High Grade Drilling Results Colette Kianna Anne SHE (B) 23.9% U 3 O 8 over 0.5 m SHE (P) 33.6% eu 3 O 8 over 1.3 m SHE (B) 24.3% U 3 O 8 over 2.5 m SHE (UC) 32.3% U 3 O 8 over 1.1 m SHE 087 (B) 34.7% U 3 O 8 over 1.9 m SHE (UC) 29.2% U 3 O 8 over 3.4 m SHE 099 (UC) 60.6% U 3 O 8 over 1.2 m TSX: UEX 11 corporation.com Shea Creek Kianna & Anne ANNE DEPOSIT KIANNA DEPOSIT Kianna & Anne Deposits New Basement Zone (2011) New Basement Zone: UPPER KIANNA EAST (2012) Wireframe Model EAST (2012) The core deposits at Shea Creek are the contiguous Kianna and Anne deposits which have a strike length of approximately 1 km and represent > 80% of the total resource estimate at Shea Creek New Basement Zone: KIANNA EAST (2012) Kianna & Anne U 3 O 8 Mineral Resources (1) At a cut off grade of 0.3% Indicated category: 59.6M lbs of U 3 O 8 average grade of 1.69% U 3 O 8 Inferred category: 19.5M lbs of U 3 O 8 average grade of 1.27% U 3 O 8 At a cut off grade of 1.0% Indicated category: 48.3M lbs of U 3 O 8 average grade of 3.18% U 3O 8 Inferred category: 14.4M lbs of U 3 O 8 average grade of 2.59% U 3 O 8 (1) See Total Resources on page 7for tonnes, % U 3 O 8 grades and % U 3 O 8 cut off TSX: UEX 12 corporation.com

7 Where Shea Creek Sits in the Basin TSX: UEX 13 corporation.com Depth of CanadianMines & Deposits Athaba sca U Shea Cr reek Dome Macass sa Red Lak ke LaRond de 4 Creight on Triple 7 7 PCS Totten Kidd Cr reek $1,063/t $68/t 2000 $95/t The In Situ value of 2500 Shea Creek uranium is equivalent to a 0.81 opt 3000 Gold Project $501/t $209/t 3500 In situ value per tonne of each deposit is calculated from the following metal values U3O8 at US$32.50/lb, gold at US$1300/oz, and potash at US$310/tonne using the reported grade of resources at either the indicated resource or proven and probable reserve level, as shown on each owner/company s website as of April 23, Insitu value per tonne is not necessarily a reflection of a deposits economic viability. Potash value calculated using grades at the Esterhazy Mine, a conventional mining operation. TSX: UEX 14 corporation.com

8 Hidden Bay Project 100% UEX owned Seventh largest undeveloped uranium resource in the Athabasca Basin Three known deposits: Horseshoe, Raven and West Bear. Great potential for basement type shallow uranium deposits discoveries underexplored Horseshoe Raven Camp The N.I Preliminary Assessment Technical Report recommended initiation of a pre feasibility study. A base case scenario of US$60 per lb U 3 O 8 would yield estimated EBIT of C$246 million, a pre tax NPV of C$163 million and IRR of 42% (1)(2) (1) These results are included in a technical report on the Hidden Bay property with an effective date of February 15, 2011 available online under UEX s profile at (2) Projects in the mining sector have experienced rising costs, including rising capital and operating costs, during the past few years. Rising capital and operating costs would, in the absence of other changes, negatively impact EBIT, NPV and IRR which have been calculated based upon historical costs. Accordingly, readers should bear these factors in mind when reading the PA and should not place undue reliance on the PA. TSX: UEX 15 corporation.com Raven & Horseshoe Deposits Indicated Resources at 0.05% 05% U 3 O 8 cut off Focus is on advancing the Raven & Horseshoe deposits at Horseshoe and Raventhrough pre feasibility and ultimately to feasibility level. Located on the doorstep of two operating uranium mills. 4 km from Cameco s Rabbit Lake Mill 22 km from AREVA s McLean Lake Mill July 2009 N.I mineral resource estimate prepared by Golder Associates Ltd. are shown in the table below. This resource is included in a technical report on the Hidden Bay property with an effective date of February 15, 2011 available online under UEX s profile at Inferred Resources at 0.05% 05% U 3 O 8 cut off Deposit Tonnes U 3 O 8 (%) U 3 O 8 (lbs) Tonnes U 3 O 8 (%) U 3 O 8 (lbs) Horseshoe 5,119, ,895, , ,049,000 Raven 5,173, ,149, , ,666,000 Total 10,293, ,044,000 1,109, ,715,000 TSX: UEX 16 corporation.com

9 UEX Other Athabasca Projects $6 7 million to be spent on UEX Athabasca Projects in 2014 Geophysical Targeting Drill indicated uranium to be followed up Summer Resource Expansion Drilling Program Under Option to Uracan newly encountered U Winter drill programs Summer Basement Deposit Targeting Program TSX: UEX 17 corporation.com BasementPotential at Hidden Bay Pre UEX holes at Hidden Bay don t test the potential for basement variants of the unconformity model. Sandstone Alteration Classic Unconformity Deposit < 25 m Historic holes reveal clues for basement deposits. < 50 m Hangingwall Basement 02NEXT Hidden Bay is the shallowest and most prospective basement terrain in the Athabasca Basin with sandstone depths of m. Basement Targets Eagle Point Roughrider PLS Shea Creek TSX: UEX 18 corporation.com

10 Why Invest in UEX? UEX has pounds in the ground and tracks U price Millions of Pounds of U 3 O Indicated Resource (UEX s share) Inferred Resource (UEX s share) Rapid Growth in Nuclear Power Looming uranium supply deficit Analysts consensus share price target for UEX Our valuation compared to recent activity TSX: UEX 19 corporation.com Growing WorldEnergyDemand Forecasting >66% increase in electricity consumption between 2013 and 2035 (1) Di Driven primarily il by electrification i of the developing world. (1) IEA World Energy Outlook 2013 TSX: UEX 20 corporation.com

11 World Nuclear Power Generation Nuclear = 17% of global electricity generation 435 Reactors Operable Worldwide 71 Reactors Under Construction Worldwide Min 20% growthin total operating reactors by 2030 Each new reactors will produce 24% more MWe Sources: IAEA Energy, Electricity & Nuclear Power Estimates for the Period up to 2050 and World Nuclear Association ( nuclear.org/info/reactors.html) TSX: UEX 21 corporation.com BenefitsofNuclear Generation Clean energy: lower life cycle emissions than fossil fuels Reliability: efficient i base load power Economics: competitive with coal Power price stability: low fuel costs and low fuel price sensitivity Energy security: reduces energy dependence on politically less stable regions TSX: UEX 22 corporation.com

12 Why Invest in UEX? UEX has pounds in the ground and tracks U price Millions of Pounds of U 3 O Indicated Resource (UEX s share) Inferred Resource (UEX s share) Rapid Growth in Nuclear Power Looming uranium supply deficit Analysts consensus share price target for UEX Our valuation compared to recent activity TSX: UEX 23 corporation.com U Supply Demand Fundamentals Suppliers Mine shutdowns Delayed Projects Reduced exploration expenditures Utilities Shortterm inventory sales Security of supply TSX: UEX 24 corporation.com

13 Uranium MarketOutlook Japanese reactor restarts expected to commence in 2014 HEU deal representing 16% of supply terminated in 2013 Low cost and stable supply source no longer available Larger than the largest U mine Higher uranium price is required to meet growing global demand Producers now cutting back supply Large uranium producers making bets on growth through acquisition The year timeframe to bi bring new mines on line TSX: UEX 25 corporation.com Why Invest in UEX? UEX has pounds in the ground and tracks U price Millions of Pounds of U 3 O Indicated Resource (UEX s share) Inferred Resource (UEX s share) Rapid Growth in Nuclear Power Looming uranium supply deficit Analysts consensus share price target for UEX Our valuation compared to recent activity TSX: UEX 26 corporation.com

14 MarketCapitalization per lb ($CAD) Current share price $ 0.49 UEX N.I Indicated mineral resources 69.8 million lbs (1) Inferred mineral resources 16.5 million lbs (1) Number of shares outstanding 227,838,679 Market capitalization per lb in the ground $ 1.29 per lb Consensus share price target (2) $ 0.70 Market cap per lb (consensus share price target) $ 1.85 per lb Yeelirrie Deposit (Australia) Husab Deposit (Namibia) Millennium Deposit (Athabasca Basin) Mkuju River Deposit (Tanzania) Waterbury Lake (Athabasca Basin) (1) See Total Resources on page 7 for tonnes, % U 3 O 8 grades and % U 3 O 8 cut off (2) Analysts consensus share price target for UEX Dundee Securities $0.80 per share; Raymond James $0.60 per share Roughrider Deposit (Athabasca Basin) Range of market cap/lb based on analyst target t prices TSX: UEX 27 corporation.com Why Invest in UEX? UEX has pounds in the ground and tracks U price Resource expansion potential Brownfields and Greenfields targets Basement targeting at Hidden Bay Rapid Growth in Nuclear Power The Nuclear Renaissance is well underway U demand is growing Looming uranium supply deficit Higher prices needed to incentivize new supply, long time gap to develop new primary supply ppy Our valuation compared to recent activity TSX: UEX 28 corporation.com

15 For more information: UEX Corporation Suite Nelson Street Vancouver, BC V6Z 2H2 corporation.comcom Investor and Media Inquiries Contact: Roger Lemaitre, President & CEO +1 (604) corporation.com TSX: UEX International OTC Markets UEXCF.PK Frankfurt: UXO.F One More Thing On June 7 8th I will be participating in the a 200+ km ride from Toronto to Niagara Falls The Ride supports the Princess Margaret Cancer Centre, one of the world s premier Cancer care and research facilities If you would lk like to support my Ride, please contact me the following ways: Online at conquercancer.ca Call BIKE [2453] Ask me for a donation form Roger Lemaitre Participant # TSX-UEX