Fission Uranium Corporate Presentation

Fission Uranium Corporate Presentation

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  TSX: FCU |OTCQX: FCUUF | www.fissionuranium.com PLS: Athabasca’s Shallow Depth, Highly Awarded Uranium Project September 2020 - Corporate Update EXPLORATION PROJECT OF THE YEAR 2015 TSX:FCU OTCQX:FCUUF FissionUranium.com
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  TSX: FCU |OTCQX: FCUUF | www.fissionuranium.com D I S C L A I M E R & T E C H N I C A L I N F O R M AT I O N 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. Technical Information Certain of the technical information contained herein is derived from the September 23, 2019 news release entitled “Fission Completes Prefeasibility for Underground-Only Mine at PLS: Lower CAPEX, Low OPEX, Minimized Surface Footprint” describing results of a PFS completed on the project – a copy of which will be filed on the Company’s profile on SEDAR at www.sedar.com within 45 days. 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. 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 Mineral Resources have an effective date of October 23, 2018 and are reported at a 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. 2
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  TSX: FCU |OTCQX: FCUUF | www.fissionuranium.com Why Fission Award winning project and management team Discovered two world-class uranium deposits since 2010 One of the world’s largest and lowest cost uranium projects September 2019 PFS outlines UG mine production of 78.7M lbs of U3O8, averaging 13.1M lbs per for the first five years and LOM avg. cash costs of US$7.18/lb U3O8 Large, shallow, high grade Triple R Deposit Resource estimate of Indicated 102.4M lbs U3O8 at 2.1% U3O8 and Inferred 32.8 M lbs U3O8 at 1.22% U3O8 Untapped exploration potential Majority of 31,039 ha property, which is 5 times the size of Manhattan Island, remains unexplored 100s of potential drill targets World class uranium district Saskatchewan consistently ranked in the Top 10 Mining Investment juristictions in the world Near-term resource growth Triple R deposit is open in multiple directions Potential to convert inferred to indicated to grow mining resource 3
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  TSX: FCU |OTCQX: FCUUF | www.fissionuranium.com Award Winning Management Team Ross McElroy, President and CEO, Director • Formerly with Cameco, Areva, BHP Billiton • PDAC 2014 ‘Bill Dennis Award for Exploration Success’, Northern Miner ‘Person of the Year 2013’ • Significant role in 4 major uranium discoveries in Athabasca Basin, incl. Fission’s Waterbury Lake & PLS • Professional geologist of 30+ years experience S E R I A L LY S U C C E S S F U L M A N A G E M E N T Ray Ashley VP Exploration Ryan Cheung CFO Chris Sammartino Controller D I R E C T O R S William Marsh Kelowna, Canada Frank Estergaard Kelowna, Canada Robby Chang Toronto, Canada Darian Yip Hong Kong, China He Fei Beijing, China Shiming Ma Beijing, China TSX: FCU | OTCQX: FCUUF | www.fissionuranium.com4 2014 FINALIST
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  TSX: FCU |OTCQX: FCUUF | www.fissionuranium.com Building Shareholder Value S I N C E 2 0 0 7 Fission Energy Corp. • JV KEPCO (Korea) (C$15M) • J-Zone (Waterbury) discovery, 2010 Denison Mines Corp. • Acquired Fission Energy Corp. • Retained Eastern Athabasca Properties Fission 3.0 Corp.(Spin-out 2013) • Project Generator with several high- potential projects: drilling-boulders- geochem-geophysics-showings in Athabasca 5 2007 Fission Uranium Corp. • Retained Western Athabasca Properties and Peru • Takeover of Alpha Minerals • Triple R Deposit: discovered (2012) • Completed maiden reserve estimate and PFS in April 2019 • Chinese Utility (CGN Mining) buys 19.9% for C$82M (Jan. 2016) 2013
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  TSX: FCU |OTCQX: FCUUF | www.fissionuranium.com The Premier High-Grade Uranium District AT H A B A S C A 0 0.5 1 1.5 2 2.5 Namibia United States Australia Niger Canada Average Grade (% U3O8) Jurisdiction Saskatchewan is in the top 10 ranked jurisdictions in the world for mining investment – 2019, the Fraser Institute Grade 10 to 20 times Global Average Global supplier In 2019 Canada (Saskatchewan) supplied 13.2% of the world’s uranium (currently due to COVID-19, Canada’s production has fallen to 0% U3O8) 60+ years of mining 6
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  TSX: FCU |OTCQX: FCUUF | www.fissionuranium.com Canada’s Athabasca Basin District 7
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  TSX: FCU |OTCQX: FCUUF | www.fissionuranium.com Exploration Potential PLS has over 100 EM Conductors and multiple exploration hotspots Triple R deposit associated with just one of these EM conductors 8 31,039 ha property in the Athabasca Basin district, with ~ 80% under explored 5X the size of Manhattan Island Triple R deposit is open in multiple directions and at depth
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  TSX: FCU |OTCQX: FCUUF | www.fissionuranium.com 100 200 300 400 500 600 700 800 900 Cluff Lake Triple R 9 Key Lake McClean Lake Midwest Roughrider Phoenix Cigar Lake McArthur River Millennium Arrow Shea Creek Past Producer Producing Advanced Exploration “Sweet-Spot” * Based on company information Low Hanging Fruit Picked First Orano Cameco Fission Orano Orano Rio Tinto Denison Cameco Cameco Cameco NexGen Orano Production on Hold 9
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  TSX: FCU |OTCQX: FCUUF | www.fissionuranium.com PLS: Pre-Feasibility Studies • 2 PFS studies completed in 2019: Underground Only and Hybrid Open-Pit / Underground • Triple R deposit uniquely demonstrates robust flexibility for multiple conventional mining methods Advantage of Underground Scenario • ~C $320M less initial capital cost compared to Open-Pit / Underground Hybrid scenario • Construction time reduced by 25% to 3 years • Bottom quartile OPEX cost of US $7.18 per lb U3O8 • Surface footprint reduced by 90% and potentially less impact on environment • Higher IRR (25% After-Tax) • Favorable scenario with First Nations rights-holders and local communities 10
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  TSX: FCU |OTCQX: FCUUF | www.fissionuranium.com PLS Project A P R I L 2 0 1 9 P F S ( O P/ U G ) A N D S E P T 2 0 1 9 P F S ( U G O N LY ) Units UG Only (PFS Case) OP/UG (PFS Case) Mine Type 7.3 years UG 6 years OP 2 years UG Mine Life Years 7.0 8.2 Construction Period Years 3 years 4 years Ore Mined M tonnes 2.3 2.9 LOM Avg. Head Grade % U3O8 1.61 1.42 LOM Production M lbs U3O8 81.4 90.5 Avg. LOM Annual Production M lbs U3O8 11.3 11.0 Operating Costs C$/tonne $274 $335 C$/lb U3O8 $9.03 (US$6.77) $9.57 (US$7.17) Initial Capital Cost C$M $1,177 $1,499 LOM Sustaining Capital Cost C$M $209 $137 Project Economics at US$50/lb U3O8 and C$1.00:US$0.75 Pre-Tax Cash Flow C$M $2,656 $2,910 After-Tax Cash Flow C$M $1,568 $1,759 After-Tax NPV8% C$M $702 $693 After-Tax IRR 25% 21% 11 Operating Costs C$/tonne $328 $274 C$/lb U3O8 $9.57 (US$7.18) $9.03 (US$6.77)Operating Costs
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  TSX: FCU |OTCQX: FCUUF | www.fissionuranium.com Fission’s Plan Going Forward • Continue to bring attention and awareness to the class-leading Triple R deposit • Develop a plan for advancing through Feasibility, Permitting, Social and Environmental Governance • Continue to build a Management and Operations Team to take us there 12
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  TSX: FCU |OTCQX: FCUUF | www.fissionuranium.com PLS Project – Timelines Going Forward 2020 -2026 Ongoing engagement and consultation activities with local stakeholders/rights- holders on the PLS project and the project plans. 2021 Submit project description to both the provincial and federal regulatory agencies kicking off the Environmental Assessment (EA) phase for the project 2021- 2022 Move towards the completion of a bankable Feasibility Study (FS) for the underground mine option in PFS. 2021- 2023 Completion of Environmental Assessment (EA) process and submission of Environmental Impact Statement (EIS) to the federal and provincial regulators. 2024-2027 Project decision and regulatory approvals and the project construction begins with mine production starting in 2026 or 2027. 13
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  TSX: FCU |OTCQX: FCUUF | www.fissionuranium.com Environmental Studies • 7 years of comprehensive baseline data collected since 2013 • Baseline survey essentially completed in 2019, with on-going monitoring • Areas completed included wildlife tracking, air quality monitoring program, aquatic studies focused on a broader regional study area (further downstream along the Clearwater River). Baseline Environmental Studies = 2013 – 2020 14
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  TSX: FCU |OTCQX: FCUUF | www.fissionuranium.com Fission’s Commitment: Communities and Economy 15
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  TSX: FCU |OTCQX: FCUUF | www.fissionuranium.com Community Events and Sponsorship • Canada Day, Yanessa Cultural Day, Metis- National Aboriginal Celebrations • Summer festival • Core Days and geological events COVID-19 • Elders Hampers For COVID-19 response • COVID-19 support – face masks • La Loche – Community Pandemic funding • CRDN – Community Pandemic funding Sports • La Loche Minor Hockey Registration Fees • Sports teams at the high school level Community Donations/other • Healthy Moms, Babies (La Loche and area) • CRDN Elders Christmas Hampers • La Loche Food Bank and Friendship Center School Programs • Ducharme Elementary School – Class trips • Saskatchewan Mining Association MAP Events Donation/Sponsorships/Events 16
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  TSX: FCU |OTCQX: FCUUF | www.fissionuranium.com Capital Structure Share Price Performance (Last 12 Months) Research Coverage C O R P O R AT E I N F O R M AT I O N 70.32% Retail & Other 1.6% Management & Board 19.88% China General Nuclear Power 8.2% Institutions 17 Tickers TSX: FCU OTCQX: FCUUF Frankfurt: 2FU Share Price (as of Sept 10, 2020) C$0.37 52 Week Low / High C$0.095 / C$0.49 Basic Shares Outstanding 488.43M Options 18.22M Warrants 20.67M Fully Diluted Shares Outstanding 527.32M Market Capitalization (Basic) Approx. C$205.1M Cash & ST Investments (as of August 31, 2020) C$13.06M Investment in Fission 3.0 Corp. C$1.1M Institution Analyst City BMO Capital Markets Alex Pearce London Eight Capital David Talbot Toronto H.C. Wainwright & Co. Heiko Ihle New York
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  TSX: FCU |OTCQX: FCUUF | www.fissionuranium.com PFS Results Physicals • Three-year construction period, consisting of box cut and portal, decline, ventilation shafts, underground capital development, and plant and infrastructure construction • Approximately seven years of operations at 1,000 tonnes per day (tpd) ore • 2.3 Mt processed over the LOM, grading 1.61% U3O8, containing 81.4 M lbs U3O8 • Process recovery of 96.8%, based on PFS-level metallurgical testwork • Production of 78.7 M lbs of U3O8, averaging 13.1 M lbs per year for the first five years Revenue • Uranium price of US$50/lb U3O8, based on long-term consensus forecasts. • Exchange rate of 0.75 US$/C$1.00 • Gross revenue of C$5,250 million, less Saskatchewan Government Gross Revenue Royalties of C$381 million • Net revenue of C$4,869 million • Pre-Tax Cash Flow of 2,656 million • After-Tax Cash Flow of 1,568 million Operating Costs • Average OPEX of C$9.57/lb (US$7.18/lb) U3O8 over the life of mine • Unit Operating Costs of C$328 per tonne processed. • Mining: C$137 per tonne processed • Processing: C$116 per tonne processed • Surface and G&A: C$75 per tonne processed Capital Costs • Pre-Production capital costs of $1.177 billion • Underground mining - C$201 million • Process plant - C$350 million • Infrastructure - C$120 million • Indirects & Owner’s Costs - C$315 million • Contingency - C$192 million • Sustaining capital costs of C$209 million • Reclamation and closure cost of C$74 million 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 C$5.84 billion, less Saskatchewan gross revenue royalties of $423 million • Net revenue of C$5.41 billion • Pre-Tax Cash Flow of 2,910 million • Post-Tax Cash Flow of 1,759 million Operating Costs • Average OPEX of C$9.03/lb (US$6.77/lb) U3O8 over the life of mine • Unit Operating Costs of C$274 per tonne processed. • Combined Mining C$89 per tonne processed • Processing: C$115 per tonne processed • Surface and G&A: C$71 per tonne processed • Operating cash flow of C$4.62 billion Capital Costs • Pre-Production capital costs of $1.498 billion • Dyke and Slurry Wall - C$371 million • Open pit mining - C$44 million • Process plant - C$241 million • Tailings Facility - C$101 million • Infrastructure - C$114 million • Indirects & Owner’s Costs - C$376 million • Contingency - C$250 million • Sustaining capital costs of C$137 million (includes all underground mine capital costs, and tailings dam lifts) • Reclamation and closure cost of C$77 million • Cash flow from operations of C$2.91 billion Hybrid PFS U/G Only PFS Appendix
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  TSX: FCU |OTCQX: FCUUF | www.fissionuranium.com Fission Uranium Corp. Phone: +1 250 868 8140 Toll Free: +1 877 868 8140 (North America) Investor Relations: Email: [email protected] TSX:FCU OTCQX:FCUUF FissionUranium.com