Macusani Project Uranium & Lithium in Peru Moving Towards 2020 Production TSX-V:PLU FSE:QG1 OTC:PLUUF
Disclaimer The particulars contained herein were obtained from sources which we believe reliable but are not guaranteed by us and may be incomplete. The opinions expressed are based upon our analysis and interpretation and are not to be construed as a solicitation or offer to buy or sell the securities mentioned herein. This presentation includes certain forward-looking statements concerning the future performance of Plateau Uranium's business, operations and financial performance and condition, as well as management's objectives, strategies, beliefs and intentions. Forward-looking statements are frequently identified by such words as "may", "will", "plan", "expect", "anticipate", "estimate", "intend" and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. Forward-looking statements and forward- looking information include, but are not limited to, statements with respect to estimated production and mine life; the future price of uranium; the estimation of mineral reserves and resources; the realization of mineral resource and reserve estimates; the timing and amount of estimated future production; costs of production; success of exploration activities; and currency exchange rate fluctuations. Except for statements of historical fact relating to Plateau Uranium, certain information contained herein constitutes forward-looking statements. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, competitive risks, the availability of financing, variations in grades or recovery rates, risks relating to international operations, fluctuating currency exchange rates, changes in project parameters, the possibility of project cost overruns or unanticipated costs and expenses, labour disputes and other risks of the mining industry, failure of plant, equipment or processes to operate as anticipated, as described in more detail in the Company's recent securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward-looking statements and Macusani cautions against placing undue reliance thereon. Neither Plateau Uranium nor its management assume any obligation to revise or update these forward-looking statements. Qualified Persons The scientific and technical information contained in this document relating to preliminary economic assessment was prepared by or under the supervision of, or reviewed and approved by, Mr. Michael Short, B.E., CEng., FIMMM and Dr Thomas Apelt, PhD, CEng., MAusIMM, of GBM Minerals Engineering Consultants, and/or Mr. Mark Mounde, BEng., CEng., MIMMM of Wardell Armstrong International, who are independent technical consultants to the Company and "Qualified Persons" under NI 43-101 Standards of Disclosure for Mineral Projects. The scientific and technical information contained in this document relating to the Mineral Resources was prepared under the supervision of, or reviewed and approved by Mr. David Young, B.Sc. (Hons), FGSSA, FSAIMM, FAusIMM, Pr Sci Nat (No 400989/83) of The Mineral Corporation that is an independent technical consultant to the Company and a “Qualified Person” under NI 43 -101 Standards of Disclosure for Mineral Projects. 2
Developing An Emerging Uranium District • Plateau Uranium controls one of the largest undeveloped uranium districts in the world with additional Lithium potential • Located on the Macusani Plateau, Puno, Southern Peru • Unique, shallow, volcanic-hosted supergene/surficial uranium deposits • Excellent infrastructure: • Access to labour, water and inexpensive hydro-electric power • Transport (major paved highway) Plateau • Plentiful supply of sulfuric acid Uranium • History of mining in the region • Minsur – San Rafael Tin Mine • Other gold & silver development projects • Supportive government and local communities 3
District Potential • Consolidated >910 km 2 land package • One of the largest uranium districts in the world – 124 Mlbs & growing 7.5 km radius • Un-tested Mineralized Proposed Central prospects at surface Processing Plant (PEA Jan 2016) • Drilling focused on <15% of land package • Significant exploration potential exists • Uranium and by-product Li potential exists throughout the District Over 910 km 2 of Exploration Concessions 4
Investment Highlights • Strong Uranium-only Project Economics at US$50/lb U 3 O 8 * • NPV8 : US$603M / IRR : 40.6% / 1.8 years capital payback (post-tax) • Large Scale: Proposed production of over 6M lbs U 3 O 8 per year over a 10 year mine life • Low Cost: US$17.28/lb LoM cash production cost, <US$300M initial capital – Lowest quartile production potential • Project economic at current Term uranium prices, significant leverage to consensus longer term forecasted prices • Control of All Defined Uranium Resources in Emerging Uranium District** • 52.9 M lbs U 3 O 8 Measured & Indicated (248 ppm) • 72.1 M lbs U 3 O 8 Inferred (251 ppm) • 75 ppm U cut-off • Additional Lithium Resources with Uranium ** • 67,000 t Li 2 O Measured & Indicated (0.13% Li 2 O) • 109,000 t Li 2 O Inferred (0.12% Li 2 O) • Resources in only 4 uranium deposits within 75 ppm U cut-off • Uranium Economics will improve further • Additional resources, optimization and upgrading opportunity Post Tax IRR/NPV of 40.6%, US$603M • Lithium Leach test work positive Macusani Project, Puno, Peru • Evaluating potential value-add by establishing OPEX/CAPEX Strategic Asset Positioned for Uranium Sector Recovery * Jan 2016 Preliminary Economic Assessment ** Resource details from May 2015 and March 2016 NI 43-101 Reports.
Catalysts • Improving Uranium market and price environments • Major and Junior Uranium companies share prices surging – most to 52-week highs • Recent mid-term contracting at US$44/lb • Using $44/lb - PEA Scenario NPV : US$457M / IRR : 39.7% / 2.0 year payback (post-tax) • Positive Drill Results Expected from Pinocho • Extending mineralization southeast of existing core uranium deposits • Will expand resource base with additional drilling • Uranium & Lithium Extraction Results • Confirming 60-70% lithium extraction with >98% uranium extraction at 70-85 °C • Sulphuric Acid Consumption of 40-50 kg/t processed (head grade of ~0.13% Li 2 O) • Additional work to establish OPEX/CAPEX requirements for lithium co-production • Environmental Baseline Study Approved - on path to permitting Increasing Value amid Sector Recovery
Simplified Flow Sheet at Macusani
Growing Uranium Demand Global Demand For Electricity to grow 76% by 2030 Nuclear Reactors Worldwide: 447 Operating Worldwide 60 Under Construction 164 Planned 347 Additional Proposals Today’s Supply Crunch: 85% of demand met by mining 15% from secondary sources Around The World: The Rise Of Nuclear Energy by 2030 U 3 O 8 Requirements Current Demand 170 Mlbs Reference Demand 270 Mlbs by 2030 8 Source: World Nuclear Association (January 1, 2017)
Uranium Supply, Demand & Price Lowest Quartile Cash Costs Recent Supply Erosion $17.28/lb • Kazakhstan reductions ~5Mlbs/tr • Cameco removing ~7 Mlbs/yr • Producers processing stockpiles rather than continue mining • >10% of Global Mined Supply 9 * Source UxC Presentation & UxC (www.uxc.com)
Low Cost U Production vs Producers Lowest Quartile Cash Costs $17.28/lb $24.50 Current U3O8 Spot Price as at 16 Jan 2017 (UxC.com) 10 Source: Cantor Fitzgerald Canada Estimates, TradeTech, Company Reports – January 6, 2017; UxC.com 30 Jan 2016
Lithium Resources Lithium Resources all within Uranium Resources • Existing Lithium Resources of 67,000 t Li 2 O Measured & Indicated (0.13% Li 2 O) & 109,000 t Li 2 O Inferred (0.12% Li 2 O) • Only 4 deposits have sufficient Li analyses • All reported Li from these deposits is within the 75 ppm U economic cutoff used in Uranium PEA • Lithium is widespread with relatively consistent contents in the host rocks – Li resources will grow Lithium leach test work promising • Sulphuric acid leaching ~70% Li recovery at 70-85 °C • Work on leaching & precipitation to determine OPEX and CAPEX requirements for Li production started Evaluating By-product Lithium Potential 11
Lithium Extraction Work • Lithium recoveries of up to 73% in original external tests by K-UTEC Germany at 250 °C • Additional extraction/precipitation work on-going in Peru by TECMMINE shows consistent ~60-70% Li recovery at much lower leach temperature conditions of 70-85 °C. >98% U recoveries achieved in all tests. Acid consumption of 40-50 kg/t achievable. • Larger sample has been shipped to Australia (SGS Labs) for upgrading and U/Li extraction and precipitation work to be overseen by Hydromet Pty Ltd/Grenvil Dunn • Output of this work – upgrading results optimized leaching conditions, % Li-K recoveries, acid consumption, precipitation and initial OPEX and CAPEX requirements for production. Evaluating By-product Lithium Potential 12
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