annual &&p special meeting - 2016 - toward production of ... · - 2016 - toward production...

A Green Resources Company

Annual & Special Meeting& p g- 2016 -

Toward production of clean energyToward production of clean energy commodities:

uranium & battery metals

www.u3o8corp.comJune 22, 2016

Clean Energy Power Storage Fertilizer

Uranium Vanadium PhosphateTSX: UWE | OTCQX: UWEFF | SSE: UWECL

Forward-Looking Statements & DisclaimerA Green Resources Company

QP for Technical Disclosure – All scientific and technical disclosure contained herein has been prepared and approved by Dr.Richard Spencer, U3O8 Corp’s President and CEO and a “qualified person” within the meaning of NI 43-101.

Certain statements contained herein constitute forward-looking statements (“FLS”) that involve substantial known and unknown risks and uncertainties. These FLSare subject to numerous risks and uncertainties certain of which are beyond the control of U3O8 Corp including but not limited to the impact of general economicare subject to numerous risks and uncertainties, certain of which are beyond the control of U3O8 Corp., including, but not limited to, the impact of general economicconditions, industry conditions, geopolitical risks, volatility of commodity prices, assumptions used in resource estimates, economic analysis and financialprojections, risks associated with the uncertainty of exploration results and estimates and that the resource potential will be achieved on exploration projects, timingand outcome of the preliminary economic assessment (“PEA”) and that a mine will be achieved on the Laguna Salada Project or the Berlin Deposit, that a jointventure will be formed with the Chubut provincial resource company, that the frac sand property will be developed as anticipated and silica potential is realized,currency fluctuations, the uncertainty of obtaining additional financing and exploration risk, and dependence upon regulatory approvals. Readers are cautioned thatthe assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such,undue reliance should not be placed on FLS These FLS are made as of the date hereof and U3O8 Corp assumes no obligation to update or revise them to reflectundue reliance should not be placed on FLS. These FLS are made as of the date hereof and U3O8 Corp. assumes no obligation to update or revise them to reflectnew events or circumstances. Industry and peer information has been drawn from publicly available sources and have not been independently verified by U3O8Corp. Comparisons of U3O8 Corp’s resource and uranium targets with other uranium deposits are conceptual in nature, and have not been independently verifiedby U3O8 Corp. and information regarding these peer deposits are drawn from publicly available information.

Kurupung Project, Guyana – resource of 8.4Mlb indicated at 0.09% U3O8 and 7.7Mlb inferred at 0.08% U3O8. See June 26, 2012 – “Technical Review and MineralResource Estimates of the Aricheng C and Aricheng West Structures, Kurupung Uranium Project, Mazaruni District, Guyana for U3O8 Corp.” and January 14, 2009– “A Technical Review of the Aricheng North and Aricheng South Uranium Deposits in Western Guyana for U3O8 Corp. and Prometheus Resources (Guyana) Inc.”A Technical Review of the Aricheng North and Aricheng South Uranium Deposits in Western Guyana for U3O8 Corp. and Prometheus Resources (Guyana) Inc.Scout drilling suggests that the Kurupung may contain an additional uranium target of 6-11Mt at a grade of 0.08% to 0.10% U3O8 (~14-19Mlb) – see press releasesdated June 10, 2008, October 15, 2009, November 18, 2009, March 16, 2010, April 20, 2011 and June 8, 2011.

Laguna Salada Project, Argentina – resources of 6.3Mlb indicated at 60ppm U3O8 and 3.8Mlb inferred at 85ppm U3O8; and 57Mlb indicated at 550ppm V2O5 and27Mlb at 590ppm V2O5. See May 20, 2011 – “Laguna Salada Project, Chubut Province, Argentina, NI 43-101 Technical Report on Laguna Salada: Initial ResourceEstimate”. Based on exploration results on other mineralized areas, there is an additional uranium target of 56-113Mt at a grade of 50ppm to 60ppm U3O8 (~10-15Mlb) – see press releases dated December, 4, 2013 and November 12, 2013. For the Laguna Salada PEA, see the September 18, 2014 – “PreliminaryE i A t f L S l d U i V di D it Ch b t P i A ti ”Economic Assessment of Laguna Salada Uranium-Vanadium Deposit, Chubut Province, Argentina”.

Berlin Project, Colombia – resources of 1.5Mlb indicated at 0.11% U3O8 and 19.9Mlb inferred at 0.11% U3O8 ; plus a phosphate inferred resource of 0.8Mt at 9.3%P2O5 and vanadium inferred resource of 97mlb at 0.50% V2O5 defined on only the southern 3km of the 10.5km mineralized trend at Berlin. See March 2, 2012 –“Berlin Project, Colombia – National Instrument NI 43-101 Report”. Based on exploration on other mineralized areas, there is an additional uranium target of 20-27Mt at a grade of 0.09% to 0.11% U3O8 (~50-55Mlb) on the remaining 7.5km of the trend – see press release dated September 20, 2012. For the Berlin PEA seethe January 31, 2013 – “Berlin Project, Colombia - Preliminary Economic Assessment, NI 43-101 Report”.

2

PEAs are preliminary in nature as they include inferred mineral resources that are considered too speculative geologically for economic consideration that wouldenable them to be classified as mineral reserves. Mineral resources are not mineral reserves and have not demonstrated economic viability. There is no certaintythat the results of the PEAs will be realized. Potential quantity and grades are conceptual in nature. There has been insufficient exploration to define a mineralresource on the above uranium targets, and it is uncertain if further exploration will increase the mineral resources on the company’s projects in Guyana, Argentinaand Colombia. Information on U3O8 Corp., its projects and technical reports in compliance with NI 43-101 are available on the company’s web site atwww.u3o8corp.com.

U3O8 Corp. StategyA Green Resources Company

To create shareholder value through:• Discovery & development of uranium & battery metal deposits that

have potential for low-cost production; and• Short permitting timelineswhile working with local communities to create a safe workplace,

stimulating sustainable development and minimizing our environmental impact and carbon footprint

TSX: UWE | OTCQX: UWEFF | SSE: UWECL 3

U3O8 Corp. Core ComponentsA Green Resources Company

p p

U3O8 Corp

Uranium

p

Battery Phosphate Frac SandyCommodities & Rare Earth

Elements86% of revenue

from Laguna Salada

14% of revenue from Laguna

Salada

24% 55% f

35% of revenue from Berlin

39% holding in South

American Silica (pvt Co)


24%-55% of revenue from

Berlin

( )

Warning PEA estimates are preliminary in nature as is the revenue projected to be derived from each commodity The

4TSX: UWE | OTCQX: UWEFF | SSE: UWECL

Warning - PEA estimates are preliminary in nature, as is the revenue projected to be derived from each commodity. The PEAs include resources that are not reserves that do not have demonstrated economic viability. There is no certainty that the results of the PEA will be realized - see slide 2

U3O8 Corp. Focus on low cost uranium production profile


Focus on low cost uranium production profile

GUYANADepositUranium

• Uranium & energy metals in South AmericaCOLOMBIA

Deposit Uranium• Target: lower quartile

cash cost for uranium:• Projected US$22/lb in

A ti

pUranium | Vanadium

Phosphate | Rare earths

By-product credits projected to cover

On Hold

Argentina;• By-product credits

projected to cover uranium production

projected to cover cost of uranium production

costs in Colombia;

• Potential near-term production in Argentina.ARGENTINA

Deposit

UWE average projected uranium cash cost of ~US$6/lb Deposit

UraniumVanadium

Projected US$22/lb uranium cash cost of production

for Colombian & Argentine deposits

Current long-term uranium price US$40/lb

5

cash cost of production

WARNING – Projected cash costs are based on PEAs that are preliminary in nature since they include resource estimates that are not mineral reserves and do not have demonstrated economic viability – see slide 2TSX: UWE | OTCQX: UWEFF | SSE: UWECL

Uranium Market DriversUnprecedented Nuclear Reactor Build


Unprecedented Nuclear Reactor Build

Operable Under construction Planned Total

Life extension of existing reactors

Closures planned in the short-

termterm

Pre-Fukushima 443 62 156 661

Post-Fukushima 439 65 158 662 157 23Projected Supply

• Reactors being refurbished for life

518

extension

• 65 reactors under construction today –

439 518Reactors by 2024Operable Reactors

construction today more than there were prior to Fukushima

6

eacto s by 0Ope ab e eacto stoday

Source: WNA, Dundee Securities, Timeless Uranium


Uranium Market DriversChinese & Indian Nuclear – long-term growth


Chinese actual & planned nuclear energy output (GW) 300

Indian actual & planned nuclear energy output (GW)

200

y

China’s nuclear build is exponential200

250

y C

apac

ity India’s nuclear energy plan

calls for more rapid growth than China’s

100

150

clea

r Ene

rgy

utpu

t (G

W)

USA’s nuclear output: ~100GW100

150

clea

r Ene

rgy

(GW

)

0

50

1969

1981

1986

1992

1994

1998

2000

2002

2004

2006

2008

2010

2012

2014

2016

2018

2020

2022

2024

2026

2028

2030

2032

Nuc O

0

50

1969

1986

1995

2001

2005

2009

2013

2017

2021

2025

2029

2033

2037

2041

2045

2049

Nuc

• China- world’s 2nd largest economy;• Air polution need for low-carbon power

sources;

• India - world’s 7th largest economy;• 7% average GDP growth rate in last 20 years;• ⅓ of popluation doesn’t have electricity;

7

• Water polution symbiosis between nuclear & water purification & desalination.

• ⅔ of electricity is provided by coal;• Per capita electricity use to double by 2020.

TSX: UWE | OTCQX: UWEFF | SSE: UWECL

Uranium Market SummarySpot price bottoming – looming forecast supply deficit


Spot price bottoming looming forecast supply deficit Global Uranium Demand Scenarios vs.

Global Total Supply

Projected Demand

Spot Uranium Price (US$/lb)

/lb)

Projected Demand Scenarios

Proposed Laguna /yea

r U3O

8Fukushima

e U

3O8

(US$

/

Projected Supply

Total Supply Demand starts to

outstrip supply in 2020

Salada production

Mlb

s/

rani

um P

rice

• Supply defecit expected to start 2020;• Utilities typically hold 3 years of nuclear fuel inventory for their reactors;

U

• Takes 12-18 months to get yellowcake from mine face to fuel delivered to reactors;• 2 Japanese reactors now back on-stream, 25 of 43 operable reactors have applied for

restart. 37 expected to restart by 2020;

8Sources: WNA, Cantor Fitzgerald, Dundee Securities, Raymond James, Ux Consulting Company LLC

Fear of Japan dumping uranium onto the market post-Fukushima finally starting to be outweighed by concern about supply-demand fundamentals.


U3O8 Corp.Potential production cost of uranium


in context with the uranium industry

of ita

l)

Total world mine production

Laguna Salada estimated all in production

prod

uctio

n o

men

t of c

ap

Laguna Salada estimated all-in production cost at 10% NPV discount rate

otal

cos

t of p

xes

& re

paym

$ pe

r pou

nd

ted

actu

al to

nclu

ding

tax

in U

S$

Estim

atur

aniu

m (i

Cumulative annual production (in millions of pounds) from each mine or future project arranged in order of increasing total cost of production

9

Source: Ratmond James and http://www.sprottglobal.com/thoughts/articles/thoughts-on-uranium/ March 14, 2016

future project arranged in order of increasing total cost of production

WARNING – Projected cash costs are based on PEAs that are preliminary in nature as they include resource estimates that are not mineral reserves and do not have demonstrated economic viability – see slide 2TSX: UWE | OTCQX: UWEFF | SSE: UWECL

Laguna Salada DepositOverview


OverviewArgentina’s only: • NI 43-101 uranium resource• Only uranium resource that has

10Mlb uranium resource,Vanadium by-product,Only uranium resource that has

had a PEA completed

Simple Geology

10 year mine life

Flat-lying in soft gravel

Simple Mining

Clear resource-growth potential Exploration has defined extensions to the deposit

Free-digging “migrating trench”Simple Mining

Simple Processing

gg g g g

Screening to remove pebbles & concentrate uranium – followed by

standard alkaline leach

Continuous real-time environmental restoration

Shrubs moved from leading edge of the trench replanted on trailing edge


In-country uranium-enrichment facility

Pilcaniyeu located ~450km from Laguna Salada

Berlin ProjectPEA: commodities produced,


% of revenue generated by each commodity

Main uses of commodities:Yttrium

6%

Neodymium1%

Mo, Zn3% Revenue:

US$2 8B Uranium: Nuclear energyPhosphate: Fertilizer, batteries

Nickel: Stainless steel, batteries, fertilizerUranium

35%

Vanadium9%

US$2.8B

Vanadium: Steel alloys, batteriesYttrium: Lazers, electronics, monitors

Neodymium: Magnets high-efficiency motors

Nickel15%

Neodymium: Magnets, high efficiency motorsBase metals: Steel alloys, fertilizer, Zn-Ceflow batteries, galvanizing, alloysPhosphate

31%

Metals & Phosphate extracted in a single metallurgical process – iron sulphate leach – was the principal process used at Elliot Lake

11

Warning - PEA estimates are preliminary in nature, as is the revenue projected to be derived from each commodity. The PEA includes resources that are not reserves that do not have demonstrated economic viability. There is no certainty of the results of the PEA being realized - see slide 2



p p

U3O8 Corp

Uranium

p



from Laguna Salada


Salada

24% 55% f


39% holding in Souht




Berlin

( )



Warning - PEA estimates are preliminary in nature, as is the revenue projected to be derived from each commodity. The PEAs include resources that are not reserves that do not have demonstrated economic viability. There is no certainty of the results of the PEA being realized - see slide 2

Berlin Project’s other commodities:“Clean Energy & Agriculture Commodities”


Clean Energy & Agriculture Commodities

Uranium for Nuclear Power – Clean EnergyUranium for Nuclear Power – Clean Energy

Ph h t f f tili A i ltPhosphate for fertilizer - Agriculture

Berlin contains 3 micronutrients used in Ni

Mo

speciality fertilizersZn

Rare Earth Elements Tech & ElectronicsRare Earth Elements – Tech & Electronics• Neodymium for supermagnets in electric motors & generators;• Yttrium for red phosphors in screens an lazertechnology


gy


p p

U3O8 Corp

Uranium

p



from Laguna Salada


Salada

24% 55% f


39% holding in Souht




Berlin

( )




“Battery Commodities”A Green Resources Company

+ve ve

Lithium Ion Batteries – short duration high power output

Vanadium Redox Batteries – long duration lower power output

ode

+ve

Ano

-ve

GraLi+Li+

V5+ V3+

Cat

ho

ode

aphiteAs battery discharges Li+

Li+Li+

V4+ V2+

• Elements typically used in Cathode:• Nickel • Cobalt

V V

Potential by-product from Laguna Salada

• Cobalt• Phosphate • Manganese • Aluminium

V di 5

4+3+

Vanadium occurs naturally in 4

different charge

Potential by-product from Berlin

Iron & manganese added as a reagent

15

• Vanadium• Iron


5+ 2+states added as a reagent

planned to be recovered at Berlin


p p

U3O8 Corp

Uranium

p



from Laguna Salada


Salada

24% 55% f


39% holding in South




Berlin

( )




Properties:Bahia Branca Project, Brazil – premium sand

Bahia Branca Project in Brazil – potential for large-scale production • Sand is at surface – no cover;• Soft sand amenable to hydromining;• >90% of bulk sand has outstanding frac characteristics:

• ≤25% in coarser 20/40 grain size;• ~50% in the finer 40/70 fraction; &• ≤25% in the very fine 70/140 grain size;

• Production could start in 12-18 months – with hub-and-spoke design - production feeding to central processing facility – advangate is this can be scaled as the market grows;

• Infrastructure – rail runs through property - 460km to deepwater port.

Railway line with friable frac sand in foreground at Bahia Branca Project

17

j

Corporate ValuationAfter-tax net present value of projects


$350Berlin Deposit, Colombia

p p jAfter-tax Net Present Value of U3O8 Corp.’s projects

(NPV at 7.5% Discount Rate (US$ Million) )

%

$200

$250

$300p

Laguna Salada Project, Argentina

alue

at 7

.5%

S$M

)

$142

$198

$255

$100

$150

$200

C t M k tPres

ent V

aun

t rat

e (U

S

-$40 -$25 $3$31 $59$56 $85

$142

$50

$0

$50Current Market capitalization of

U3O8 Corp.

er-T

ax N

et

disc

o u

Combined NPV of

-$100

-$50

$35 $40 $50 $60 $70=$229M =$314M=$145M=$60MA

fte Projects (7.5% discount rate)

Uranium Price (US$/lb)


Warning - PEA estimates are preliminary in nature, as is the projected revenue. The PEAs include resources that are not reserves that do not have demonstrated economic viability. There is no certainty of the results of the PEA being realized - see slide 2

Corporate ValuationAfter-tax net present value of projects


$250

p p j

After-tax Net Present Value of U3O8 Corp.’s projects (NPV at 10% Discount Rate (US$ Million) )

%

$150

$200Berlin Deposit, Colombia

Laguna Salada Project, Argentina

Valu

e at

10%

S$M

)

$112

$159

$50

$100

$

Current Market Pres

ent V

unt r

ate

(US

-$42 -$29-$4 $22

$47

-$4

$19$66

-$50

$0

$50

=$134M =$206M=$62M

capitalization of U3O8 Corp.

er-T

ax N

et

disc

o u

Combined NPV of Projects (10%

-$100

-$50$35 $40 $50 $60 $70Aft

j (discount rate)

Uranium Price (US$/lb)


Warning - PEA estimates are preliminary in nature, as is the projected revenue. The PEAs include resources that are not reserves that do not have demonstrated economic viability. There is no certainty of the results of the PEA being realized - see slide 2

Corporate ValuationComparison with peers


$2.50

Enterprise Value per Pound of Uranium Resources250

NI 43-101 Compliant Resources

p p

$1.50

$2.00

$

b

150

200

rce

(Mlb

s)

$0.50

$1.00

$

US$

/l

50

100

nium

Res

our

$0.00

$0.50

Den

ison

Fiss

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U3O P

Ban

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• U3O8 Corp. undervalued relative to peers• U3O8 Corp. value per pound of resources is low relative to its peers – still trading as if


political risk has not improved dramatically in Argentina

Source Data: Dundee Corp. & Cantor Fitzgerald

U3O8 Corp. Capital StructureA Green Resources Company

p p

Share CapitalU3O8 Corp. Shareholder Base

Market cap(at $0.025) $6.7M

52wk range: $0.02 - $0.07

Average volume (3-mth): 207kI tit ti l

Basic shares o/s 272M

Options o/s 15M

Warrants o/s 105M

8% Insiders

Institutional 24%

Insiders65% Other

Sh h ld Warrants o/s 105M

Fully diluted 392M

Insiders 11%

Shareholders


Laguna Salada Project:Pathway to production & next steps


Discovery

Initial (10Mlb) NI43-101 uranium resource

Landmark agreement with Provincial govt

Initial (10Mlb) NI43 101 uranium resource

PEA focus on projected cash cost$22/lb

Lower quartile

Increase resource to 20-25Mlbs

Trial Mining Pilot processing plant

PEA – focus on projected cash cost

Next Steps

qproduction cost

Trial Mining Pilot processing plant

Feasibility Study

Construction decision

p


22TSX: UWE | OTCQX: UWEFF | SSE: UWECL TSX: UWE | OTCQX: UWEFF | SSE: UWECL

Berlin Project:Pathway to production & next steps


y p p

Highest-value project in U3O8 Corp’s portfolio with one of the lowest projected uranium extraction costs in the industryp j y

Built on discovery by Cogema (Areva)

Initial (21Mlb) NI43-101 uranium resourceInitial (21Mlb) NI43 101 uranium resource

Having confirmed low potential production cost in PEA PEA – focus on projected cash cost

Pilot processing plant

Next Next StepStep

Test alternative extraction techniques

Increase resource to 50Mlb threshold

Feasibility Study

TSX: UWE | OTCQX: UWEFF | SSE: UWECL 23



Richard Spencer, President & [email protected]@u3o8corp.com

(416) 868-1491www.u3o8corp.com


annual &&p special meeting - 2016 - toward production of ... · - 2016 - toward production...

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