toward production of clean energy commodities: uranium ... · 12/11/2016 · see march 2, 2012 –...

A Green Resources Company

Toward production of clean energy commodities:commodities:

uranium & battery metals

www.u3o8corp.comDecember, 2016

Clean Energy Power Storage Fertilizer

Uranium Vanadium PhosphateTSX: UWE | OTCQX: UWEFF Vanadium & Nickel1

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 FLS

bj t t i k d t i ti t i f hi h b d th t l f U3O8 C i l di b t t li it d t th i t f l iare 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,nd e reliance sho ld not be placed on FLS These FLS are made as of the date hereof and U3O8 Corp ass mes no obligation to pdate or re ise 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 reflect

new 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 exploration targets with other uranium deposits are conceptual in nature, and have not been independentlyverified by 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.”Scout drilling suggests that the Kurupung may contain an additional exploration target of 6-11Mt at a grade of 0.08% to 0.10% U3O8 (~14-19Mlb) – see pressreleases dated 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 exploration 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 – “PreliminaryEconomic 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 exploration 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”.

PEAs are preliminary in nature as they include inferred mineral resources that are considered too speculative geologically for economic consideration that wouldbl th t b l ifi d i l Mi l t i l d h t d t t d i i bilit Th i t i t

2

enable 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 exploration targets, and it is uncertain if further exploration will increase the mineral resources on the company’s projects in Guyana,Argentina and 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.

TSX: UWE | OTCQX: UWEFF

U3O8 Corp. StrategyA Green Resources Company

To create shareholder value through:• The discovery & development of deposits of uranium and “battery

commodities” that have potential for low-cost production; and• Short permitting timelines

while working with local communities to create a safe workplace, stimulating sustainable development, maintaining water quality and minimizing our environmental impact and carbon footprint

TSX: UWE | OTCQX: UWEFF 3

U3O8 Corp. BoardA Green Resources Company

Director Experience & Key Areas of Expertise Role on the Board

Dr. Keith B

• Founded Aurelian Resources & discovered the 13 million ounce (“Moz”) Fruta del Norte (FDN) gold deposit in Ecuador. FDN was sold to Kinross Gold for $1.3B

R i i t f PDAC’ Th Li d l I t ti l Di A d 2008

• Founder of U3O8 Corp.• Minefinder

EBarron • Recipient of PDAC’s Thayer Lindsley International Discovery Award – 2008• Northern Miner’s Mining Man of the Year – 2008

• Entrepenuer• Major shareholder

Mr. David C t bl

• Was VP- Investor Relations (IR) with Australia’s Normandy Mining until it was acquired by Newmont;• VP-IR at FNX during the discovery in Sudbury that took the company from junior

l t d ith lti billi d ll k t• Chairman

C tConstable explorer to a producer with a multi-billion dollar market cap;• Served on the board of Aquiline Resources until it was sold to Pan American Silver;• Holds a ICD.D designation from Institute of Canadian Directors

• Corporate governance

Mr. David Franklin

• Co-founder & MD of WoodsWater Capital LP, a resource-focused private equity firm• Formerly CEO of Sprott Private Wealth;• Was market strategist at Sprott where he co-wrote the widely-followed monthly note

• Investment banking• Corporate strategyFranklin Was market strategist at Sprott where he co wrote the widely followed monthly note

“Markets at a Glace” with Eric Sprott;• Corporate strategy

Mr. Pablo Marcet

• Member of Board of Directors of Barrick Gold;• Participated in start-up of the giant Escondida copper mine in Chile;• As president of Northern Orion, oversaw project development of the Agua Rica gold-copper deposit & its subsequent sale to Yamana Gold for $1.6B;

• Entrepeneur• Mine developer• LatAm perspective – has fi t h d k l d li

pp p q• Was president of Waymar Resources, which merged with Orosur Mining that operates a gold mine in Uraguay

first-hand knowledge - lives in Argentina

Mr. Darin Milmeister

• Founder & Managing Partner of Extract Capital, a resource-focused fund;• Formerly Principal of Delware Street Capital, a long/short fund focused on commodities;

• Resource fund perspective• Corporate strategyp gy

Dr. Richard Spencer See “Management” slide • Minefinder

• Deep LatAm experience

4TSX: UWE | OTCQX: UWEFF

U3O8 Corp. ManagementA Green Resources Company

Name Experience & Key Areas of Expertise Management Role

Led the exploration teams that:

Dr. Richard Spencer

p• Discovered the 3.3 million ounce Quimsacocha / Loma Larga gold deposit in Ecuador (+23Moz silver);• Increased gold reserves at Las Cristinas in Venezuela by 65% from 10Moz to 17Moz;• Grass roots discoveries of copper porphyries in Ecuador – resources are:23 billion pounds of copper + 4 Moz gold in Mirador, Panantza & San Carlos porphyries

President & CEO

Mr. John Ross

• As CFO of IAMGOLD Corp., was the first to introduce the gold “money policy” – converted the company’s cash to gold at an average price of US$287/oz as an ultracontrarian when the majors were still hedged and when the Bank of England was selling the country’s gold

CFO

Executive VPDr. Hugo Bastias

• Instrumental in the discovery of the 7.5Moz Veladero gold deposit – now a Barrick mine in Argentina;• Instrumental in U3O8 Corp.’s uranium discoveries in Colombia & Argentina.

Executive VP – based in Argentina

Mr Elpidio• M.Sc in Mineral Exploration from Queens University, Ontario & an MBA • Business Development Director of Rio Tinto – Brazil (1988-2001);

Chief Operating OfficerMr. Elpidio

Reis

p ( )• Was General Manager of Braziron Ltd;• Instrumental in the development of the 10Moz Morro do Ouro mine – developing processing techniques for very low grade ore.

Officer – based in

Brazil

Mr. Gabriel • Completed MSc in Mineral Exploration at Queens University, OntarioVP Exploration

based inBastias • Led the team that discovered U3O8 Corp.’s Laguna Salada uranium-vanadium project in Argentina. – based in Argentina


U3O8 Corp. Core ComponentsA Green Resources Company

p p& Estimate of % Revenue that would be derived from each

U3O8 Corp

Uranium

p

Battery Phosphate Frac SandyCommodities & Rare Earth

Elements86% of revenue

from Laguna Salada

14% of revenue from Laguna

Salada

31% 66% f

35% of revenue from Berlin

39% holding in South

American Silica (pvt Co)Apart from use in agriculture35% of revenue

from Berlin31%-66% of

revenue from Berlin

( )

Note - PEA estimates are preliminary in nature, as is the revenue projected to be derived from each commodity. The PEAs

Apart from use in agriculture, phosphate is also being used in Lithium-Ion and Vanadium Redox Flow Batteries

6

y j yinclude 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


U3O8 Corp. Uranium Resource: 48 million pounds


Uranium Resource: 48 million pounds

Guyana

Estimated Cash Cost of Uranium

Production

Estimated Capital

CostPriority

yColombia

BERLIN, Colombia

Resource Type Million pounds

Indicated 1.5 US$0/pound of uranium net of by-

products

US$441 million 2

Inferred 19.9

LAGUNA SALADA A ti

Argentina

LAGUNA SALADA, Argentina

Indicated 6.3 US$22/pound of uranium, net of by-product vanadium

US$136 million 1

Inferred 3.8gKURUPUNG, GuyanaIndicated 8.3 Rough estimate:

US$45/poundNot yet

estimated 3Inferred 7.9


Note – 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 2

Nuclear in ArgentinaGenerates up to 8% of electricity


Generates up to 8% of electricity

Reactor Atucha I Embalse Atucha II Atucha III “No 5”

Large Nuclear Power Plants:eacto tuc a ba se tuc a tuc a o 5

Date of CommercialOperation 1974 1984 2015 Construction

starts 2017Construction starts 2019

Capacity (MWe net) 335 600635 692 800 1,150

Type Siemens Candu-6 Siemens Candu-6 Hualong One

Life extensions 10-years to 2027

25-years to 20407% output increasep

Small Reactors:5 Research reactors operating in Argentina5 Research reactors operating in Argentina

5 Research reactors built by Argentine reactor construction company INVAP elsewhere in the world

CAREM Small Modular Reactor:


CAREM Small Modular Reactor:• 25MW prototype under construction, 100MW & 200MW units designed

Nuclear in Argentina – the opportunity


the opportunity

Reactor Design Reactor Construction

Enrichment & Fuel Rod

Spent Fuel St

Uranium Production

Nuclear energy industry overseen by ARN (Nuclear Regulatory Authority)

Construction Fuel-Rod Manufacture

Storage

CNEA/INVAP INVAP

Production

DIOXITEC & CONUAR

NA-SA1

CNEA2Australia’s only nuclear

Laguna Salada Deposit – CNEA2

Nuclear fuel rod cluster

Australia s only nuclear reactor – the OPAL research facility

Deposit U3O8 Corp.

Cerro Solo Deposit – State through CNEA

INVAP to build medical isotope facility in

Spent fuel in dry storage in concrete casks - CNEA


p yUSA for Coqui Pharma 1 Short-term storage at nuclear power

plants operated by NA-SA;2 Long-term storage in dry casks by CNEA.

Laguna SaladaSimple mining - real-time restoration


p g

Migrating Trench Advances

Mined area restored to original landscape

Removing the Gravel Cover

Gravel that’s been mined, washed & replaced

Gravel – averages 8m thickGravel – averages 8m thick

Impermeable shale

Excavation up to 3m/10’ deep

Mining Uranium-Vanadium – bearing gravel


Uranium Spot MarketA Green Resources Company

Spot Uranium Price (US$/lb)

• Spot price at 11-year low;• Can’t control the market;• Can control estimated 3O

8 (U

S$/lb

)

Fukushima

production cost through:• Finding higher-grade

resources;L iiu

m P

rice

U3

• Lowering opex; • Lowering capex.U

rani

Laguna Salada 10-yearSource: of data Ux Consulting Company LLC

Laguna Salada 10 year average cash cost of production US$22/lb Aim is to reduce

estimated cash cost


estimated cash cost

Laguna Salada Project:Impact of Higher Grades on Production Cost Estimates


$45 C

Estimated Cash Cost of Production with Uranium Grade

Year 10

$30

$35

$40

Cash cost

Year 10

$20

$25

$30 t of produ

Life of Mine Estimated Cash Cost of Production

Objective of current

$10

$15

uction of UYear 1

jexploration to find higher-grade uranium-vanadium

$0

$5

050100150200250300350

Uranium

U i G d ( U O )


Uranium Grade (ppm U3O8)

Laguna Salada Project:Resource growth potential


g pU3O8’s Concession

Block Outlined in Green

Location of current

exploration20-25Mlb >25Mlb potential in gravel plain

explorationpotential in La

Susana, La Rosada(1)

discoveries &(grey area)

discoveries & anomalous radon area

10MlbCurrent NI

43 101

10Mlb NI 43-101 Uranium Resource43-101

uranium resource

20-25Mlb potential in in La Susana, La Rosada discoveries >25Mlb - potential in rest of pland package

> 55Mlb potential20km

13

Concessions under JV option agreement are outlined in black


Laguna SaladaOperational Simplicity


15cm 6 inches

Simple, continuous

Gravel is sieved

No blasting, no crushing p ,

Semi-desert

Washed

Gravel is replaced, recontoured& replanted with indigenous shrubs

Mining Beneficnmen

tg, g

Washedremoved prior to mining

ciation

ExtractionEnvi

ron

Transplantation trials 9% of the gravel is fine silt that is processed. Metallurgical test

Residual silt

U i &

Washing soda, baking soda

14

work aiming to concentrate the

uranium in a smaller % of fine material

Uranium & Vanadium


Uranium Market SummaryA Green Resources Company

Global Uranium Demand Scenarios vs. Global Total SupplyDemand starts to outstrip supply in 2020/2021

Projected Demand Scenarios

O8

Projected Demand Scenarios

Proposed Laguna Salada production

bs/y

ear U

3O

Secondary

Primary Supply

Ml Secondary

Supply

15

Source: Dundee Securities


Laguna Salada DepositTimeline & budget to mine decision


Timeline & budget to mine decision

Next Steps:1. Trial mining & pilot plant test work to produce yellowcake as proof of concept;

BUDGET TOWARDS POTENTIAL PRODUCTION (US$)

Resource expansion &

2. Resource growth since economics are strongly geared to deposit size.• Projected 2 years to construction decision• Projected 1 year for construction

pupgrade to Measured & Indicated

$3.0M

Metallurgy & pilot plant $1.5M

Social, environmental & $1 0M

Conceptual Timeline Year 1 Year 2 Year 3

Resource expansion & upgrade

Environmental (EIA)

Metallurgy & pilot plant permitting $1.0M

Feasibility study (FS) $1.5M

Budget to Construction Decision $7.0M

Metallurgy & pilot plant

Mining & Environ. permit

Permit to produce yellowcake

Feasibility study (FS)

CAPEX (in 2014 US$) CAPEX after forexadjustment (in 2015 US$)

$136M/

$117M Recommended work program, timing & budget based on PEA that is preliminary in nature. Includes resources that are not reserves & do not have demonstrated economic viability. No certainty of the PEA being realized – see slide 2

Construction

16

y g


Lithium Ion Battery CommoditiesA Green Resources Company

y

apac

ity

6.00 6.00 6.00Metal content per in various Lithium-Ion batteries (kg/kWh)

stor

age

ca

1 002.003.004.005.00 NMC

2.003.004.005.00 LFP

1 002.003.004.005.00 LMO

of e

nerg

y s

0.001.00

0.001.00

Phosphate Iron Lithium0.001.00

Manganese Lithium

Li-ion Battery Type Chemistry Abrev.

l per

kW

h o

3.004.005.006.00

NCA

3.004.005.006.00

LCOLithium Titanite Li4Ti5O12 LTO

Lithium Iron Phosphate LiFePO4 LFP

Lithium Manganese Oxide LiMn2O4 LMO

Kg

of m

etal

0.001.002.00

0.001.002.00

Cobalt Lithium

OxideLithium Nickel Managanese Cobalt Oxide

LiNiMnCoO2 NMC

Lithium Cobalt Oxide LiCoO2 LCO

17

K

Source of data: batteryuniversity.com TSX: UWE | OTCQX: UWEFF

Lithium Nickel Cobalt Aluminium Oxide LiNiCoAlO2 NCA

Battery Commodities A Green Resources Company

BERLIN, Colombia

NI 43-101 Vanadium Nickel PhosphateColombia NI 43-101 Resource category

Vanadium Nickel PhosphateMillionpounds Million pounds Million

TonnesIndicated 6 3.1 0.05Inferred 91 42.1 0.8

LAGUNA SALADA, Argentina

NI 43-101 Resource

Vanadium(Mlb)

Indicated 57

Argentina

Indicated 57Inferred 27

181 million pounds Vanadium (V2O5)

45 illi d Ni k lg 45 million pounds Nickel

850,000 tonnes Phosphate (P2O5)


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 2

Battery CommoditiesVanadium Redox Flow Batteries (“VRB”)


Vanadium Redox Flow Batteries ( VRB )

Vanadium Redox Batteries – long duration lower power outputEnergy-CentricPower-Centric

V5+ V3+Flow Batteries

V4+ V2+V V• Safe & non-flammable;• Can be charged almost instantaneously;• Almost unlimited energy capacity – just need bigger

tanks for more storage;

4+3+

2+

Vanadium occurs naturally in 4 different

tanks for more storage;• Electrolyte liquid does not degrade over time – has

residual value at end of battery life;• Optimal for long-duration power delivery (>2 ½ hrs);

19

5+

2+ different charge states

Optimal for long duration power delivery ( 2 ½ hrs);• Vanadium represents ~40% of the cost.


Battery CommoditiesVanadium Market


Vanadium Market

Vanadium market slipping into deficit140,000

es)

100 000

120,000

Vanadium required for Vanadium demand for batteries

um (t

onne

80,000

100,000 Li-Ion Batteries

Vanadium required for Redox Flow Batteries

Steel Chemicals

Vana

diu

40,000

60,000Steel, Chemicals

Supply

Source of data: Camelot Ferroalloys

Inc, Vanitec

0

20,000


02011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Battery CommoditiesVanadium Market


Vanadium Market

Vanadium Pentoxide (V2O5) PriceUp 90% in EuropeUp 90% in Europe

b)Price

ce (U

S$/lb

e (Yuan/toPr

iconne)

Up 90%

Source of data:


Argus Metal Forum, Nov 1st, 2016

Strategically Located in Uruguay, Brazil, ArgentinaStrategically Located in Uruguay, Brazil, Argentina

Brazil Properties Nascent Need for Local Frac Sand Supply

Oil & gas production from the VacaUruguay Properties

Vaca Muerta

• Oil & gas production from the Vaca Muerta is just starting

• Foreign oil majors investing >$9B so far to develop the giant Vaca Muerta shale in Argentina

Rio Rio Grande Grande

PortPortin Argentina

• Frac sand / proppant market expected to be 800,000 tonnes per year in 2016/2017. Current local production only 6,000t per ear

Favouredroute to the

Argentine Properties

San Antonio San Antonio PortPort

In Shale

year

• Almost all of Argentina’s frac sand imported from Brazil, China & USA

Our properties near key shale basins

route to the Vaca Muerta Rail

Comodoro Comodoro PortPort

San Jorge Shale

Shale p p y& infrastructure (road, rail & ports)


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)

23TSX: UWE | OTCQX: UWEFF NPVs based on PEAs – see cautionary statements on 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)

24TSX: UWE | OTCQX: UWEFF NPVs based on PEAs – see cautionary statements on 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

ion

Ener

gyEn

ergy

Meg

aN

exG

enB

erke

ley

Aza

rga

um R

es.

UEX

Kiv

alliq

Wes

tern

aram

ide

O8

Cor

pPe

le M

tnne

rman

Plat

eau

Gov

iex

Fors

ys

0

Gov

iex

nerm

anN

exG

enPl

atea

uFo

rsys

Den

ison

aram

ide

Fiss

ion

Wes

tern

Ber

kele

yU

EXEn

ergy

Pele

Mtn

O8

Cor

pum

Res

.K

ival

liqEn

Cor

eA

zarg

aM

ega

Ura

n

D

Toro

Vi

my N B

Ura

niu W La

U3O P

Ban

n

Ban

n N D La W B

Vim

y PU

3OU

rani

u

• U3O8 Corp. is undervalued relative to peers – has low enterprise value• 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 $0.02) $6.3M

52wk range: $0.02 - $0.04

Average volume (3-mth): 330,000I tit ti l

Basic shares o/s 316M

Options o/s 20M

Warrants o/s 135M

8% Insiders

Institutional 24%

Insiders65% Other

Sh h ld Warrants o/s 135M

Fully diluted 471M

Insiders 11%

Shareholders

Top Shareholders:D K ith B f d & di tDr Keith Barron – founder & director;Delaware Street CapitalAlpha North Asset Management.


Corporate Strategy:Sequential Project Development


Laguna Salada, Argentina~3 years to potential production

Berlin Project, Colombia~4 to 5 years to potential productiony p p y p p

Immediate goal – double uranium resource to 20Mlb & upgrade to Measured & Indicated

$3.0M

Metallurgy & pilot plant $1 5M

Met tests & refine flowsheet $1.0MDouble resource to 50Mlb target & show 70-75Mlb potential $23M

Metallurgy & pilot plant $1.5M

Social, environmental & permitting $1.0M

Feasibility study $1.5M

TOTAL to reach mine decision in 2 yrs $7 0M

Resource upgrade, environmental,permitting, feasibility study $20M

TOTAL to reach mine decision $44M

Capex $441MTOTAL to reach mine decision in 2 yrs $7.0MCapexCapex (forex-adjusted)

$136M$117M

Development strategy: Project is

Development strategies:• JV with producer & keep minority stake

• Streaming agreements or royalties on by-

Capex $441M

Development strategy: Project is sufficiently simple for U3O8 Corp. to put into production or JV with producer & keep minority stake to receive cash flow

Streaming agreements or royalties on byproducts (phosphate, vanadium, nickel, rare earths)

Recommended work & budgets based on PEAs that are preliminary in nature. Resources are not reserves & do not have demonstrated economic viability. No

27

g p y ycertainty of the PEAs being realized . Conceptual cumulative targets based on mineral resources & exploration results: Colombia – potential 32-34Mt at 0.09% to 0.11% U3O8 (~70-75Mlb) & Argentina – potential150-225Mt at 50ppm to 60ppm U3O8 (~20-25Mlb). Potential quantity & grades are conceptual in nature. There has been insufficient exploration to define mineral resources on the targets. It is uncertain if further exploration will increase the mineral resources on the company’s projects.– see slide 2.



Richard Spencer, President & [email protected]

(416) 868-1491www.u3o8corp.com

APPENDIX FOLLOWS


Uranium Market DriversUnprecedented Nuclear Reactor Build


Unprecedented Nuclear Reactor Build

Operable Under construction

On Order Total

Life extension of existing reactors

Closures planned in the short-

termterm

Pre-Fukushima 443 62 156 661

Nov 2016 448 58 168 674 157 23Projected Supply

518

China 43%

448 518

Reactors by 2024Operable Reactors

29

eacto s by 0Ope ab e eacto stoday

Source: Word Nuclear Association, Dundee Securities, Timeless Uranium 29TSX: UWE | OTCQX: UWEFF

Uranium Market DriversChinese & Indian Nuclear – long-term growth


160

Chinese actual & planned nuclear energy output (GW) 300

Indian actual & planned nuclear energy output (GW)

100

120

140

Out

put (

GW

)

Chi ’ l

USA’s nuclear output: ~100GW 200

250

paci

ty (G

W)

India’s nuclear energy plan shows that India’s build is also exponential, comparable with China’s

40

60

80

ar E

nerg

y O China’s nuclear

build is exponential 100

150

r Ene

rgy

Cap comparable with China s

0

20

1969

1981

1986

1992

1994

1998

2000

2002

2004

2006

2008

2010

2012

2014

2016

2018

2020

2022

2024

2026

2028

2030

2032

Nuc

lea

0

50

1969

1984

1992

1998

2001

2004

2007

2010

2013

2016

2019

2022

2025

2028

2031

2034

2037

2040

2043

2046

2049

Nuc

lear

• China- world’s 2nd largest economy;• Air polution non-carbon power sources;• Water polution symbiosis between nuclear

& f /

• India - world’s 7th largest economy;• 7% average GDP growth rate in last 20 years;• 1/3 of popluation doesn’t have electricity;

30

& water purification / desalination. • 2/3 electricity provided by coal;• Per capita electricity use to double by 2020.


Laguna Salada Project, Argentina:Project status & pathway to production


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

Increase resource to 20-25Mlbs

Trial Mining Pilot processing plant

PEA – focus on projected cash cost

Next Steps

Low cash cost of production

Trial Mining Pilot processing plant

Feasibility Study

Construction decision

p


31TSX: UWE | OTCQX: UWEFFTSX: UWE | OTCQX: UWEFF

Laguna Salada DepositOverview


Overview

Argentina’s only NI 43-101 uranium resource on which a PEA has been

l d

10Mlb uranium resource,Vanadium by-product,

completed

Simple Geology

10 year mine life

Flat-lying in soft gravel

E l ti h d fi d t i

Simple Mining

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

Free-digging “migrating trench”

Simple ProcessingScreening to remove pebbles &

concentrate uranium – followed by standard alkaline leach

In-country uranium-enrichment

Continuous real-time environmental restoration

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

Pilcaniyeu located ~450km from

32

In-country uranium-enrichment facility

Pilcaniyeu located 450km from Laguna Salada


Laguna Salada ProjectPEA Highlights


PEA shows potential for low-cost, near-term productionPEA Highlights

PEA Highlights (base case, in US$ at US$60/lb U3O8)U i V di

Annual productionUranium Vanadium0.6Mlb 0.96Mlb

Revenue $223M $53M

P i i l Fi i l M t i P T Aft TPrincipal Financial Metrics Pre-Tax After-TaxNPV discount rate 7.5% 10% 7.5% 10%NPV (incl royalties due to State) $55M $43M $31M $22MIRR 24% 18%

Cash cost of production, capex, mine life & payback periodMine life 10 yearsLife of Mine average uranium cash cost of production1 $21 62/lb

IRR 24% 18%

Increasing resource size & production rate has been modelled and shows a very significant improvement to

Life of Mine average uranium cash cost of production1 $21.62/lbAverage uranium cash cost of production over 2½ year payback1 $16.14/lbTotal capital (incl. sustaining & 20% contingency) $136M

33

the project’s economics. (This analysis was done internally by U3O8 Corp. and can’t be shown because it has not been verified by an external NI43-101 - compliant study.)

1 Projected uranium cash cost, net of vanadium credit & incl. 3% NSR to the Provincial Government.. Laguna Salada PEA – see cautionary statements on slide 2TSX: UWE | OTCQX: UWEFF 33

Laguna Salada DepositPEA Summary


PEA Summary 1st independent PEA completed on a uranium deposit in Argentina; Study completed by Tenova (Bateman) >100 years of experience; Resource: Resource:

10Mlbs uranium (6.4Mlbs recoverable); 84Mlbs vanadium (10Mlbs recoverable);

Projected average annual production 0 6Mlb uranium over 10 year mine life: Projected average annual production 0.6Mlb uranium over 10 year mine life: Argentina requires 0.4Mlbs per year to operate its three reactors – currently imports 100% of its fuel requirement potential for off-take agreement; 1Mlb/annum vanadium production; Focus of the PEA was cash-cost of production:

US$21.62/lb average over the life of the mine; US$16.14/lb during the 2½ year payback period; Demonstrates potential for production cost that is competitive with in situ leach and Athabasca Basin deposits.

Capex: $136M incl 20% contingency. US$ strength against currencies in which plant equipment was quoted could reduce Capex by ~15%.plant equipment was quoted could reduce Capex by 15%.

34

1 Projected uranium cash cost, net of vanadium credit & includes a 3% NSR to the Provincial Government. The PEA is preliminary in nature. Includes resources that are not reserves & do not have demonstrated economic viability. No certainty of the PEA being realized. – see slide 2


Berlin Project, Colombia:Project status & pathway to production


j p y 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



Berlin:Introduction


Introduction

Berlin: A uranium-bearing phosphate layer in sedimentary rocks - contains a rare mix of nickel, vanadium, rare earths and other metals; The current 21 million pound uranium resource is from 3km of a 10.5km uranium-phosphate – bearing trend there is room for resource growth to 70-75 million pounds ofresource growth to 70-75 million pounds of uranium; Extensive metallurgical test work has shown that this mix of commodities can be cost-effectively extracted from the rock; G d i f t t Good infrastructure:

• located 12km from a hydroelectric plant;• 60km from the Magdalena river that is navigable by barge to the Caribbean Sea;• 60km from principal paved highway and a

COLOMBIA

p p p g yrailway that it being refurbished;

Local community is supportive of the project; Mining would be by underground methods and the uranium-phosphate rock would be processed on site to remove the contained metals

36

on site to remove the contained metals.


Berlin DepositCross Section


Cross Section

Mi li ti i 3 thi k

West East

Mineralized layer Mineralization in 3m thick layer;

Remarkable continuity; Underground mining

SandstoneShale

operation; Minimal mine

footprint; Waste would be

replaced in backfill of underground excavations;

Cut and fill mining in the steep areas combined with room and pillar in the flat areas.


Berlin Project, ColombiaMulti-commodity Resource


Current resources defined in compliance with NI 43-101 (0.04% U3O8 cut-off grade) on southern 3km of a 10 5km mineralized trend

TrenTren

on southern 3km of a 10.5km mineralized trend

Tonnes (million)

Uranium Phosphate Vanadium YttriumGrade (Mlb) Grade (Mt) Grade (Mlb) Grade (t)

0.6 0.11% 1.5 8.4% 0.05 0.4% 6.0 461ppm 294

4km

ched Are

ched Are

10.5k

8.1 0.11% 19.9 9.4% 0.8 0.5% 91.0 500ppm 4,066

Tonnes (million)

Neodymium Nickel Molybdenum RheniumGrade (t) Grade (Mlb) Grade (Mlb) Grade (t)

Drill

Drill3

eaea

km M

ineral

0.6 110ppm 70 0.2% 3.1 570ppm 0.8 6ppm 48.1 100ppm 813 0.2% 42.1 620ppm 11.0 7ppm 55

Tonnes ( illi )

Zinc Silver

led Area

led Area

.5kmlized Tren

(million) Grade (Mlbs) Grade (Moz)0.6 0.30% 4.4 2.8ppm 0.18.1 0.30% 45 3.4ppm% 0.9

Current resource in

southern 3km of 10.5km trend

3kmd


10.5km trend m

Berlin ProjectPEA: commodities produced,


% of revenue generated by each commodity

Main uses of commodities:Neodymium

1%Moly, Zinc

3% Uranium: Nuclear energyPhosphate: Fertilizer, batteries

Nickel: Stainless steel, batteries, fertilizer

Yttrium6%

1% 3% Revenue: US$2.8B

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

Neodymium: Magnets high-efficiency motors

Uranium35%

Nickel

Vanadium9%

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

15%

Phosphate31%

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

39

1 PEA estimates are preliminary in nature. Includes resources that are not reserves & do not have demonstrated economic viability. No certainty of the PEA being realized. INTERNAL DISCUSSION PURPOSES – see slide 2


p p p p

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


Clean Energy & Agriculture Commodities

Battery Commodities: NickelBattery Commodities: Nickel, Vanadium, Phosphate

Ph h t f f tiliPhosphate for fertilizer

Berlin contains 3 micronutrients used in Ni

Mo

speciality fertilizersZn

Rare Earth Elements:Rare Earth Elements:• Neodymium for supermagnets in motors & generators;• Yttrium for red phosphors


in screens an lazertechnology

Berlin Deposit:PEA Highlights


Potential to be a large, very low-cost uranium producerProjected Base Case – PEA Highlights (US$60/lb U3O8), reported in US$

Annual uranium production 1 2Mlb

PEA Highlights

Annual uranium production 1.2Mlb

Mine life 15 years

Cumulative free cash flow $982M

Pay-back period 4.6 yearsy y

Initial capex $360M

Sustaining capital $40M

Contingency $41M

Total capex (incl. 10% contingency) $441M

Principal Financial Metrics Pre-Tax After-TaxNPV discount rate 7.5% 10% 7.5% 10%NPV (incl royalties due to State) $338M $223M $198M $112MIRR 19% 15%

$1.8Billion of by-product revenues would cover the $1.6Billion

41TSX: UWE | OTCQX: UWEFF1. Projections based on Berlin PEA – see cautionary statements on slide 2

operating cost (cost of mining & extraction)1

Berlin ProjectDrilling has shown Resource Growth Potential


N >25Mlbpotential

21Mlb NI 43-101 Uranium Resource

4kmpotential identified

by trenching

U a u esou ce 25-30Mlb potentialexploration-drilled area >25Mlb – northern area –potential indicated by

10.5km

25-30Mlb resource potential

trenchingpotential indicated by trenching> 70-75Mlb potential

Mineraliz

3.5kmGreen unit contains uranium &

other minerals

potential already

identified by drilling

zed Trend

3km

1Target based on mineral resources & exploration results for potential 32-34Mt at 0.09% to 0.11% U3O8 (~70-75Mlb) Potential quantity & grades are conceptual in nature. There has been insufficient exploration to define a mineral resource on these

21MlbCurrent

NI 43-101

42

exploration to define a mineral resource on these targets & it is uncertain if further exploration will increase the current deposit – see slide 2.

NI 43 101 uranium resource


Berlin DepositPotential to Improve Project’s Economics


Potential to Improve Project s Economics

Potential to reduce operating (Opex) and capital costs (Capex): Test work on the effectiveness of alternative techniques for the Test work on the effectiveness of alternative techniques for the

extraction of metals and phosphate (eg. Use of membrane systems to separate the metals);

Potential to increase revenue: Removal of carbonate to reduce reagent consumption (lower

operating costs); Current PEA only considers revenue stream from two Rare Earth

Elements (Neodymium & Yttrium) Include other REEs such asElements (Neodymium & Yttrium). Include other REEs such as Dysprosium & Europium in revenue stream; Reduce electricity cost by capturing excess heat generated by the

processing plant. Increase the uranium resource – the target is 70-75Mlbs1. Economics of

the deposit are strongly geared to deposit size.

1Target based on mineral resources & exploration results for potential 32-34Mt at 0.09% to 0.11% U3O8 (~70-75Mlb) Potential quantity & grades are conceptual in nature There has been insufficient exploration to define a mineral

4343

Potential quantity & grades are conceptual in nature. There has been insufficient exploration to define a mineral resource on these targets & it is uncertain if further exploration will increase the current deposit – see slide 2.


toward production of clean energy commodities: uranium ... · 12/11/2016 · see march 2, 2012 –...

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