Proven Team, Proven Approach: The First and Only Pure Play Uranium - - PowerPoint PPT Presentation

proven team proven approach the first and only pure play
SMART_READER_LITE
LIVE PREVIEW

Proven Team, Proven Approach: The First and Only Pure Play Uranium - - PowerPoint PPT Presentation

URC : TSX-V Proven Team, Proven Approach: The First and Only Pure Play Uranium Royalty Company Corporate Presentation August 2020 2 FORWARD-LOOKING STATEMENT Forward-Looking Information The information contained herein contains forward


slide-1
SLIDE 1

Proven Team, Proven Approach: The First and Only Pure Play Uranium Royalty Company

Corporate Presentation August 2020 URC : TSX-V

slide-2
SLIDE 2

FORWARD-LOOKING STATEMENT

2

Forward-Looking Information The information contained herein contains “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of applicable Canadian securities legislation. “Forward-looking information” includes, but is not limited to, statements with respect to the activities, events or developments that Uranium Royalty Corp. (“URC” or the “Company”) the Company expects or anticipates will or may occur in the future, including the completion of tentative transactions. Forward-looking information and statements are based on the then current expectations, beliefs, assumptions, estimates and forecasts about URC’s business and the industry and markets in which it operates. Forward-looking information and statements are made based upon numerous assumptions and although the assumptions made by the Company in providing forward-looking information or making forward-looking statements are considered reasonable by management at the time, there can be no assurance that such assumptions will prove to be accurate. Forward-looking information and statements also involve known and unknown risks and uncertainties and other factors, which may cause actual results, performances and achievements of URC to differ materially from any projections of results, performances and achievements of URC, including, without limitation, URC's limited control and access to data to the projects underlying its interests, commodity, commodity and investment price risks, currency risks, counterparty risks, proposed acquisitions may not be completed as contemplated or at all, risks faced by the operators and owners of the projects underlying URC's interests and the other risk factors set forth, from time to time, in the Company’s disclosure documents (including its prospectus dated November 22, 2019), which are available under its profile at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information or implied by forward-looking information, there may be

  • ther factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information and statements will prove to be accurate, as actual results and

future events could differ materially from those anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking statements or information. The Company undertakes no obligation to update or reissue forward-looking information as a result of new information or events except as required by applicable securities laws. Technical Information Certain scientific and technical information in this presentation is based on information prepared under the Joint Ore Reserves Committee (JORC) 2004 or 2012 code, the terms Inferred Mineral Resources, Indicated Mineral Resources, Measured Mineral Resources, Ore Reserves, Proved Ore Reserves and Probable Ore Reserves are substantially similar to the terms Inferred Mineral Resources, Indicated Mineral Resources, Measured Mineral Resources, Mineral Reserves, Proven Mineral Reserves and Probable Mineral Reserves, respectively, used in Canadian National Instrument 43-101 (“NI 43-101”). Darcy Hirsekorn, the Company's Chief Technical Officer, has supervised the preparation of and reviewed the technical information contained in this presentation. Darcy holds a B.Sc. in Geology from the University of Saskatchewan, is a qualified person as defined in National Instrument 43-101 and is registered as a professional geoscientist in Saskatchewan. External Information Where this presentation quotes any information or statistics from any external source, it should not be interpreted that the Company has adopted or endorsed such information or statistics as being accurate. The Company also advises investors that some of the information presented herein is based on or derived from statements by third parties, has not been independently verified by or on behalf of the Company, and that no representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of this information or any other information or opinions contained herein, for any purpose whatsoever. No Investment Advice This presentation is not, and is not intended to be, an advertisement, prospectus or offering memorandum, and is made available on the express understanding that it does not contain all information that may be required to evaluate, and will not be used by readers in connection with, the purchase of or investment in any securities of any entity. This presentation accordingly should not be treated as giving investment advice and is not intended to form the basis of any investment decision. It does not, and is not intended to, constitute or form part of, and should not be construed as, any recommendation or commitment by URC or any of its directors, officers, employees, direct or indirect shareholders, agents, affiliates, advisors or any other person, or as an offer or invitation for the sale or purchase of, or a solicitation of an offer to purchase, subscribe for or otherwise acquire, any securities, businesses and/or assets of any entity, nor shall it or any part of it be relied upon in connection with or act as any inducement to enter into any contract or commitment or investment decision whatsoever. Readers should not construe the contents of this presentation as legal, tax, regulatory, financial or accounting advice and are urged to consult with their own advisers in relation to such matters. U.S. Non-Solicitation This presentation is not an offer of securities for sale in the United States and is not an offer to sell or solicitation of an offer to buy any securities of URC nor shall it form the basis of, or be relied upon in connection with any contract for purchase or subscription. The securities of URC have not been and will not be registered under the Securities Act or the securities laws of any state and may not be offered

  • r sold in the United States absent registration or pursuant to an applicable exemption therefrom.
slide-3
SLIDE 3

INVESTMENT HIGHLIGHTS

URC is well positioned to take advantage of current market conditions as a provider of alternative capital to the uranium sector

3

First Mover Advantage

▪ URC is the first company to apply the successful royalty and streaming

business model exclusively to the uranium sector

$39M Cash & Listed Securities*

▪ Strong balance sheet, which positions it to capitalize on accretive uranium

royalty and streaming acquisition opportunities

Physical Uranium Ownership

▪ Through its approximately 9% stake in London-listed Yellow Cake plc,

URC holds interests in physical uranium, acquired at cyclical lows

Large & Diversified Royalty Portfolio

▪ Portfolio includes interests on development, advanced, permitted and past-

producing uranium projects in multiple jurisdictions

Expertise

▪ Management and board possess decades of uranium industry experience,

including senior executive and advisory roles to prominent companies and governments in the sector

* As of the Company’s filing for the quarter ended January 31, 2020

slide-4
SLIDE 4

4

MANAGEMENT & BOARD

Management

Scott Melbye (President, CEO & Director)

  • Uranium industry veteran with 35 years

experience including Executive roles with Cameco, Uranium One & Uranium Participation Corp.

  • Former Strategic Advisor to Kazatomprom
  • Executive VP of UEC
  • Based in Denver

Darcy Hirsekorn (CTO)

Professional geoscientist with 20 years experience at Cameco

Part of exploration groups that outlined over 200Mlbs of uranium

Based in Saskatoon Josephine Man (CFO)

Former partner at Ernst & Young LLP

Over 20 years of experience working with public companies primary in the mining industry

Based in Vancouver

Board of Directors

Amir Adnani (Chairman)

Entrepreneur and Founder, President & CEO of Uranium Energy Corp (UEC: NYSE American)

Chairman of GoldMining Inc. (GOLD: TSX)

Based in Vancouver Lady Barbara Judge CBE (Director)

Former chair and board member of the U.K. Atomic Energy Commission

Former U.S. Securities and Exchange Commissioner

Served on the Boards of the StatOil, and Magna

Strategic Advisor to the Emirates Nuclear Energy Corp., Tokyo Electric Power and the Astana Stock Exchange

Based in London, U.K. David Neuburger (Director)

Over 30 years experience in operations leadership roles, corporate strategic planning, projects and mine engineering

Formerly: VP, International Mining and VP, Mining (Saskatchewan) for Cameco Corp., VP, GM of Kupol Operations for Kinross

Based in Saskatoon Vina Patel (Director)

18 years experience raising capital from U.K. and European institutional investors in mining and exploration equities, including uranium companies

Formerly Head of London Institutional Sales for Haywood Securities

Based in London, U.K.

Strategic Partner

Uranium Energy Corp

▪ Initial shareholder ▪ Strategic partner, ongoing technical

and operational support

slide-5
SLIDE 5

CAPITALIZATION & OWNERSHIP PROFILE

5

(1) As of the Company’s filing for the quarter ended January 31, 2020 (2) All, except for 500,000 common share purchase warrants, are trading on the TSX-V Exchange (3) $55M cash to be received should all warrants are exercised All figures are in Canadian dollars

CURRENT ASSETS

Cash, Cash Equivalents, and Listed Securities(1)

  • Approx. $39 Million

SHARE STRUCTURE

Shares Outstanding 71.8 Million Warrants 27.9 Million(2) Options Fully Diluted(3) 99.7 Million

KEY SHAREHOLDERS

Uranium Energy Corp. Altius Resources Inc. Mega Uranium Ltd. Marin Katusa KCR Fund Extract Capital Rick Rule Sprott Global Commodity Capital

RECENT ACTIVITY

$1.26 (URC : TSX-V)

As of Aug 6, 2020

  • Avg. Daily Vol. (3-mo): 97,578

$0.30 (URC.WT : TSX-V)

As of Aug 6, 2020

$90 Million Market Cap

slide-6
SLIDE 6

OUR STRATEGY:

BUILDING A DIVERSIFIED PORTFOLIO

6

URC’s Diversified Approach is Well Suited to Uranium

Geographical

Multiple countries

Counterparty

Range of market capitalization

Development Stage

Grassroots to producing

Invest Across the Cost Curve

Maximizes leverage to uranium recovery

slide-7
SLIDE 7

Acts as a substitute for near term royalty / stream cash flow: ▪ Yellow Cake investment ▪ Potential future physical purchases

PORTFOLIO COMPOSITION STRATEGY

URC has a pipeline of primary and by-product royalty and streaming opportunities on projects in development, care and maintenance, and production worldwide Royalties held or under option on diverse portfolio of projects at various stages across several key uranium jurisdictions

7

Leverage to Future Uranium Price Future Pipeline Direct Exposure to Current Spot Price

slide-8
SLIDE 8

URC's Portfolio

8

slide-9
SLIDE 9

STRONG COUNTERPARTIES

9

Counterparties include many of the sector’s leading growth-oriented uranium companies

slide-10
SLIDE 10

GLOBAL DIVERSIFIED ASSET PORTFOLIO

10 Note: Physical storage of Yellow Cake material is provided at Cameco’s Blind River facility

slide-11
SLIDE 11

Ownership

Approximately 9%

Rights

URC has the option to acquire up to US$31.25M (US$2.5M – US$10M per year) of uranium between Jan 2019 – Jan 2028

URC has an option to participate in any and all future uranium royalty and stream transactions Yellow Cake pursues on a 50:50 basis.

URC and Yellow Cake also plan to collaborate on future

  • pportunities involving physical uranium

In the event URC exceeds 10% ownership, URC has the right to nominate one director to the Yellow Cake Board, currently have observer rights

Overview

Yellow Cake has a long term supply agreement with Kazatomprom, the world's largest uranium producer

The supply agreement enables Yellow Cake to purchase up to US$1.07bn (including existing purchases) of uranium from Kazatomprom over a 10 year period

Purchasing

Yellow Cake completed its initial purchase of uranium, acquiring 8.1Mlbs of U3O8 for a cost of US$170M

Since the initial investment, Yellow Cake has purchased an additional 0.35Mlbs of U3O8 from Kazatomprom for US$8.2M and 1.175Mlbs for US$30.4M

STRATEGIC PARTNERSHIP – YELLOW CAKE PLC INVESTMENT

11

7.6M shares were purchased as part of a US$19.25M cornerstone strategic investment in the Yellow Cake PLC (AIM:YCA) US$200M IPO completed on July 5th, 2018

Supply Agreement with Kazatomprom URC Investment in Yellow Cake Blind River Uranium Storage Facility

Source: Bloomberg, Capital IQ, Public company disclosure

slide-12
SLIDE 12

Sep 2011 Announce completion of PEA (historical)(3) Oct 2011 Rio Tinto makes all cash offer, followed by bidding war with Cameco Jan 2012 Rio Tinto completes acquisition of Hathor for C$654M Jun 2017 Rio Tinto fully impairs Roughrider and Rossing

Roughrider was discovered by Hathor Exploration in 2008

In 2011, Cameco made a hostile bid for Hathor

Rio ultimately outbid Cameco and acquired Hathor for C$654M Location Saskatchewan, Canada Geological District Athabasca Basin Owner / Operator Rio Tinto Canada Orebody Type Unconformity Mine Type Underground Stage Development Tonnage Grade U3O8 Category (kt) (% U3O8) (Mlbs) Indicated 394 1.98% 17.2 Inferred 161 11.43% 40.7

ROYALTY PORTFOLIO Athabasca Basin Royalty

(1) These estimates are historical in nature and are not being treated as current resources or reserves by URC as a qualified person has not done sufficient work on behalf of URC to classify such historical estimates as current mineral resources or reserves. The disclosure of these historical estimates have been included herein as URC believes that it provides an indication of the potential for the properties underlying its royalties (2) The historic mineral resources were estimated in accordance with NI 43-101 and are disclosed by reference to the Historic Roughrider Technical Report titled “Preliminary Economic Assessment Technical Report for the East and West Zones, Roughrider Uranium Project, Saskatchewan”, with an effective date of September 13, 2011, prepared for Hathor and authored by Gordon Doerksen, P.Eng., Bruce Fielder, P. Eng., Louri Iakovlev, P. Eng., David Keller, P. Geo., Mark Liskowich, P. Geo., Bruce Murphy, FSAIMM, and Cam Scott, P. Eng. (3) Such Sept 2011 PEA is not being treated as current by URC

Historical Resources(1,2) Roughrider Project (1.97% NSR) Project Location

12

Diabase Project (3% GRR) Key Milestones

  • Early Exploration project operated by UEC
  • Project overlies a highly prospective regional corridor, similar to

the Patterson Lake corridor that hosts the Arrow and RRR deposits

slide-13
SLIDE 13

Measured Indicated Inferred Deposit Tonnage (Mt) Grade (% U308) U3O8 (Mlbs) Tonnage (Mt) Grade (% U308) U3O8 (Mlbs) Tonnage (Mt) Grade (% U308) U3O8 (Mlbs) Reno Creek(2) 13.6 0.043% 12.9 15.4 0.039% 13.1 1.7 0.039% 1.5 Church Rock(3)

  • 30.7

0.075% 50.8 Dewey-Burdock(4) 4.9 0.132% 14.3 2.0 0.072% 2.8 0.6 0.055% 0.7 Lance(5) 3.4 0.049% 3.7 11.1 0.05% 12.1 36.2 0.048% 37.8 Asset Royalty (%) Location Operator Stage

Reno Creek 0.5% NPI Wyoming UEC Development Church Rock 4% NSR New Mexico Laramide Development Dewey- Burdock 30% NPI South Dakota Azarga Development Lance 4% GRR

(Kendrick & Barber Areas)

Wyoming Peninsula Production Idled

(1) Reno Creek, Dewey-Burdock, and Lance royalties do not apply to the entire project area covered by this estimate (2) Reno Creek resources sourced from technical report titled "Technical Report and Audit of Resources of the Reno Creek ISR Project, Campbell County, Wyoming, USA" dated December 31, 2018 and authored by Robert E. Cameron, Ph.D., MMSA, and Robert Maxwell, CPG, AIPG and made in accordance with NI 43-101, (3) Church Rock resources sourced from the technical report titled "Technical Report on the Church Rock Uranium Project, McKinley County, State of New Mexico, U.S.A." with an effective date of September 30, 2017, prepared for Laramide Resources Ltd. and authored by Mark B. Mathisen, C.P.G. and made in accordance with NI 43-101, (4) Dewey-Burdock resources sourced the technical report titled "NI 43-101 Technical Report, Preliminary Economic Assessment, Dewey-Burdock Uranium ISR Project, South Dakota, U.S.A.", with an effective date of December 3, 2019, prepared for Azarga Uranium Corp. and authored by Steve Cutler, P.G. and Douglass H. Graves, P.E. and made in accordance with NI 43-101, (5) Lance resources sourced from Peninsula Energy Limited September 30, 2019 quarterly activities report and made in accordance with JORC.

Resources (1) Asset Overview

13

Project Location

ROYALTY PORTFOLIO U.S. ISR Royalties

Powder River Basin

Legend ISR Mines (Advanced/Development) ISR Mines (Production Idled) Cities (Over 500k Pop)

slide-14
SLIDE 14

Resources

Indicated Inferred Deposit Tonnage (Mt) Grade (% U308) U3O8 (Mlbs) Tonnage (Mt) Grade (% U308) U3O8 (Mlbs) Anderson (OP)(1) 25.4 0.028% 15.5 4.6 0.024% 2.5 Anderson (UG) (1) 1.4 0.048% 1.5 8.4 0.052% 9.5 Slick Rock(2)

  • 2.3

0.228% 11.6 Workman Creek(3)

  • 2.9

0.086% 5.5 Asset Royalty (%) Location Operator Stage

Anderson 1% NSR Arizona UEC Advanced Slick Rock 1% NSR Colorado UEC Advanced Workman Creek 1% NSR Arizona UEC Development Roca Honda(4) 4% GRR New Mexico Energy Fuels Development

(1) Anderson resource sourced from the the technical report titled "Technical Report and PEA on the Anderson Uranium Project, Yavapai County, Arizona, USA", with an effective date of July 6, 2014, prepared for Uranium Energy Corp. and authored by Douglas Beahm, PE, PG, Terence P. McNulty, D. Sc., P.E., Bruce Davis, FAusIMM, and Robert Sim, P.Geo. estimated in accordance with NI 43-101; (2) Slick Rock resources sourced from the technical report titled "Technical Report Preliminary Economic Assessment, Slick Rock Project Uranium / Vanadium Deposit, San Miguel County, Southwest Colorado, USA" with an effective date of April 8, 2014, prepared for Uranium Resources Corp. and authored by Douglas Beahm, PE, PG, Bruce Davis, FAusIMM, and Robert Sim, P. Geo. estimated in accordance with NI 43-101; (3) Workman Creek resources sourced from the technical report titled "Technical Report on the Workman Creek Project, Central Arizona", with an effective date of March 2, 2012, prepared for Uranium Resources

  • Corp. and authored by Neil G. McCallum, B.Sc, P.Geo., and G.H. Giroux, MASc, P.Eng. estimated in accordance with NI 43-101.

(4) The Roca Honda royalty only applies to Section 17 of the project.

Asset Overview

14

Project Location

ROYALTY PORTFOLIO U.S. Conventional Royalties

Legend

Conventional Mines (Advanced/Development) Cities (Over 500k Pop)

Conventional deposits provide longer term exposure to rising uranium prices. Potential processing at White Mesa Mill

slide-15
SLIDE 15

Mar 2009 Fronteer Development Group completes acquisition of Aurora Energy Resources for ~$175M Sep 2009 Fronteer issues PEA (historical)(1) Feb 2011 Paladin acquires the asset for C$260.9M Dec 2011 Moratorium on uranium mining activity is lifted Aug 2012 Paladin signs long-term offtake with a major utility Jun 2014 Paladin issues an updated resource estimate (historical) Jun 2015 Paladin receives federal exemption from Non-Resident Ownership Policy Jun 2017 Paladin issues an updated resource estimate (historical) May 2018 Paladin forms JV on Project Tonnage Grade U3O8 Category (kt) (% U3O8) (Mlbs) Measured 17,800 0.097% 38.0 Indicated 36,600 0.084% 67.6 Inferred 13,100 0.077% 22.1

ROYALTY PORTFOLIO – MICHELIN PROJECT (2% GRR)

(1) This PEA is not being treated as current by URC. (2) Sourced from June 30, 2018 Annual Report. Resources were estimated in accordance with JORC with cut-off grades ranging between 0.2% - 0.5% and with an assumed uranium price of US$85/lb

Asset Overview Project Location

15

Among largest deposits in North America Location Labrador, Canada Geological District Central Mineral Belt of Labrador Owner / Operator Paladin Energy (55%) / EDF Claimants (45%) Orebody Type Metasomatic Mine Type Open Pit/Underground Stage Development

Historical Data Resources (2)

slide-16
SLIDE 16

Tonnage Grade U3O8 Category (Mt) (% U3O8) (Mlbs) Measured 97.0 0.044% 95.9 Indicated 18.8 0.044% 18.0 Inferred 6.3 0.042% 5.8

Low technical risk project in a premier uranium jurisdiction

Paladin undertaking operational review to assess process

  • ptimization, cost reduction, production capacity and life of

mine alternatives Location Erongo, Namibia Geological District: Namib Desert Owner / Operator Paladin Energy Ltd (75%) / China National Nuclear Company (25%) Orebody Type Surficial Calcrete Uranium Deposit Mine Type Open Pit Stage Placed on Care & Maintenance in May 2018

ROYALTY PORTFOLIO – LANGER HEINRICH (A$0.12/kg U3O8 production royalty)

Resources (2) Asset Overview Project Location

16

Estimated restart Capex – (US$M) US$81.0

  • Est. Peak Annual Production (Mlbs):

5.9

  • Est. Mine Life:

17 Years

  • Est. AISC (US$/lb)(3)

$32.00 Ramp-Up Period 12 months

2020 Restart Plan(1)

(1) Data based on ASX release from June 30, 2020 (2) Resources as of June 30, 2020, prepared under JORC 2012. The resources now include the low-grade and high-grade stockpiles. The underlying in-situ Mineral Resource as announced on October 14, 2019 remains unchanged, as are the tonnes and grade stated for ROM stockpiles in the same announcement. Further details available in the company’s ASX announcement. (3) Average life-of-mine all-in sustaining costs.

Past Producer Positioned for Re-Start

slide-17
SLIDE 17

Royalty Model & Our Approach

17

slide-18
SLIDE 18

18

URC OFFERS PARTNERSHIP “VALUE-ADDED” RELATIONSHIPS WITH PORTFOLIO COUNTERPARTIES

URC is vested in the success of its portfolio counterparties Experienced URC team offers uranium market and development insights to counterparty management and Boards Thorough due diligence and selection process offers third party endorsement to projects in the URC portfolio Ability to provide non-dilutive Project Financing URC capital markets presence provides expanded visibility

slide-19
SLIDE 19

THE RIGHT MODEL FOR AN IMPROVING MARKET

19

Royalty Companies

  • vs. Operators

Operating Companies Uranium ETF Physical Funds

Exposure to Uranium Price

✓ ✓ ✓ ✓

Fixed Operating Costs

✓  ✓ ✓

No Development or Sustaining Capital Costs

✓  ✓ ✓

Exploration & Expansion Upside Without the Associated Costs

✓   

Diversified Asset Portfolio

✓ ✓ ✓ 

Ability to Grow Without Increased Management

✓  ✓ ✓

slide-20
SLIDE 20

▪ To date URC’s strategy has been primarily focused on acquiring existing royalties ▪ The next wave of acquisitions are anticipated to focus on new royalties, streams physical uranium and other uranium interests

OUR STRATEGY: ROYALTY OPPORTUNITY

20

URC has a flexible strategy and desire to be a partner in growth

▪ Large number

  • f active

dialogues ▪ Typically for shares and/or cash ▪ Focused discussions with priority targets ▪ Typically cash transaction ▪ On a case by case basis

slide-21
SLIDE 21

URANIUM ROYALTY LANDSCAPE

21

13 194 2,027

Source: S&P Global Market Intelligence – October 2019. (1)Projects screened based on primary metal and includes global projects currently in production (2)Projects screened based on primary metal and includes global projects in the resource development, feasibility and preproduction stages (3)Includes all projects with uranium as the primary commodity or as a by-product

93

Uranium Projects Development and Advanced Projects Projects at Construction/ Production Stage

Producing U3O8

Primary and By-Product Uranium Projects(3)

URC management, board, and advisors have been to over 80 projects

Gold Uranium

Primary Commodity Advanced/Development Projects(2) Gold Uranium Primary Commodity Production Projects(1)

Royalties on uranium properties are less prevalent than on gold properties

Uranium market represents whitespace for the royalty sector with significant headroom for growth 23%

35%

34%

50%

slide-22
SLIDE 22

Uranium Market Overview

22

slide-23
SLIDE 23

23

With the world's population exceeding 7.7 billion people and growing, the need for reliable, non-intermittent, pollution-free electricity continues to increase. This growth and its associated needs are important drivers for the currently projected long-term increase in nuclear power generation and uranium demand.

URANIUM PLAYS KEY ROLE IN CLEAN AIR AND CLIMATE CHANGE SOLUTIONS

23

slide-24
SLIDE 24

▪ China announced that it is likely to triple nuclear power capacity by 2030 ▪ India plans for 21 new nuclear reactors by 2031 ▪ U.A.E. completing construction on 4 units ▪ U.K. upgrading nuclear fleet to new advanced reactors ▪ Russia is building 36 reactors in China, India, Bangladesh, Turkey, Egypt, Iran, Finland, Belarus, Slovakia, Armenia, Uzbekistan and Hungary ▪ U.S. is completing two new AP-1000 reactors in Georgia

NUCLEAR POWER GROWTH REMAINS ROBUST MORE THAN 9% SINCE 2012

24

439 Operable Reactors Worldwide 48 Reactors Connected in 7 Years 56 Units Under Construction

Source: World Nuclear Association July 2020, IAEA PRIS June 2020

slide-25
SLIDE 25

REACTOR DEMAND SIGNIFICANTLY EXCEEDS PRIMARY PRODUCTION

Source: UxC Market Outlook Q4 2019; Q2 2020

25

Spot Prices Below Production Costs and Hedges Falling Off

2020 Demand expected = 182M lbs. 2020 Production was expected @ 142M lbs., 12M lbs./mo pre COVID19 54% of Total monthly global production impacted by COVID19 2020 Production is now expected to be 61M lbs. below requirements Cumulative Gap is 310M lbs. by 2026

Supply/demand numbers will be impacted as a result of the COVID-19 pandemic. As of April 17, mine shutdowns included Cigar Lake + McLean Mill, Kazatomprom, Rossing, Husab, and Moab Khotsong, that will reduce supply by about -6.4 M lbs./mo. As of August 1st, some restart dates have been announced, but are not firm. To date, total supply reduction for 2020 is ~21M lbs. Reactor demand appears to have had minimal impact.

slide-26
SLIDE 26

26

Uranium Spot Price Up ~30% Year-to-Date $33.00/lb.; Highest Since March 2016

26

Source: TradeTech; UxC, LLC: www.uxc.com

$138.00

Financial Crisis

2011: Fukushima event

Nov 2016: $17.75/lb 12 year low

$32.30 2005: Major Mine Disruptions

(Cigar Lake, McArthur River)

$70.00

$39.00

$0 $20 $40 $60 $80 $100 $120 $140 $160

Aug-04 Aug-05 Aug-06 Aug-07 Aug-08 Aug-09 Aug-10 Aug-11 Aug-12 Aug-13 Aug-14 Aug-15 Aug-16 Aug-17 Aug-18 Aug-19 Aug-20

Spot Daily Long Term

slide-27
SLIDE 27

URANIUM SUPPLY – ACCELERATED REBALANCING Cuts, Exhaustion, Reduction, Suspension

27

Mine Curtailments, Depletion and Speculative Interest Accelerating Market Rebalancing

Source: TradeTech April 2020

slide-28
SLIDE 28

URANIUM DEMAND Need for New Production – Beyond Existing Mines

28

▪ Inventory Overhang Drawing Down ▪ Uranium Price Too Low to Stimulate New Production Within the Permitting and Development Lead Times to Bring On New Mines TradeTech’s “Market Appetite” for New Production

  • All assumptions are consistent with TradeTech’s latest proprietary assumptions, August 2019 (i.e. Q2 2019);
  • Established Production Base shown is weighted to assimilate the challenge of existing operations remaining at

full capacity over Life-of-Mine. Source: TradeTech Uranium Market Study 2019

Appetite for New Production Secondary Supply Established Production Base (Weighted) Reactor Requirements

slide-29
SLIDE 29

UTILITY PROCUREMENT CYCLE: Old Contracts Rolling Off… New Contracts Need to be Signed

29

Utility Uncommitted Demand Historic Long Term Contracting

Source: UxC Market Outlook Q2 2020

slide-30
SLIDE 30

Secretary of State Mike Pompeo recently said: "We need to fundamentally review our supply chains and make sure that we know those supply chains and have control over them for moments just like this."

Further, with respect to uranium, he stated that

“We've got to get back our mining, processing, enriching cycle”

Projected 2020 U.S. Demand: ~50M lbs. U.S. Production: ~0

$1.5 Billion for a U.S. Uranium Reserve in Trump’s FY2021 Budget

30

U.S. Is The World’s Largest Consumer of Uranium

slide-31
SLIDE 31

31

INVESTMENT SUMMARY

URC OFFERS INVESTORS: ▪ First mover pure-play uranium royalty exposure ▪ Royalty portfolio covering array of development projects in key jurisdictions with the right partners ▪ Challenging market conditions create mutually beneficial royalty financing

  • pportunities

▪ Team with extensive uranium industry experience, knowledge and access ▪ Nuclear energy gaining broader acceptance in a carbon-constrained world ▪ Robust uranium demand and curtailed mine production rebalancing market fundamentals ▪ $1.5B for a U.S. Uranium Reserve in Trump’s FY2021 Budget ▪ Market Fundamentals continue to improve with a growing deficit between primary production and reactor requirements

slide-32
SLIDE 32

Appendix

32

slide-33
SLIDE 33

ROYALTY AND STREAMS 101

33

“Royalties” are a payment to a royalty holder by a property owner, or project operator, and is typically based on a percentage of the minerals produced and the revenues or profits generated from the property Royalty Company Operating Company Royalty Company Operating Company

Up-front payment for royalty or stream Payment for stream delivery Royalty or stream delivery

“Streams” are physical commodity purchase agreements where, in exchange for an upfront deposit and ongoing payments for metal delivered, the holder purchases all or a portion of one or more metals produced from a mine, at a preset price.

slide-34
SLIDE 34

TYPES OF ROYALTIES

34

Gross Proceeds Royalty (GPR)

▪ Based on the total revenue stream from the sale of production from the property, which

can sometimes include deductions.

▪ URC does not currently hold any GPR royalties.

Gross Revenue Royalty (GRR)

▪ Based on the total revenue stream from the sale of production from the property, which

can sometimes include deductions.

▪ URC GRR royalties include Michelin, Lance, Roca Honda, and the option on Diabase.

Net Profit Interest (NPI)

▪ Based on the profit realized after deducting costs related to production. ▪ URC has a NPI royalty on Reno Creek and Dewey-Burdock.

Net Smelter Returns (NSR)

▪ Based on the value of production or net proceeds received by the operator from a smelter

  • r refinery.

▪ URC NSR royalties include Roughrider, Church Rock, Anderson, Slick Rock, and

Workman Creek.

Production Royalty (PR)

▪ Based on metal produced, often at a predetermined fixed price. ▪ URC has a PR on the Langer Heinrich Project.

Metal Streams

▪ Streams are distinct from royalties. They are metal purchase agreements where, in

exchange for an upfront deposit and ongoing payments for metal delivered, the holder purchases all or a portion of one or more metals produced from a mine, at a preset price.

▪ URC does not currently hold any streaming interests. However, part of its strategy

includes the potential acquisition of streams on primary uranium and uranium by-product assets.

▪ Widely used in the global mining sector.

slide-35
SLIDE 35

35

The First and Only Pure Play Uranium Royalty Company

Uranium Royalty Corp. Toll Free: 1.855.396.8222 Phone: 604.396.8222 Email: Info@UraniumRoyalty.com www.UraniumRoyalty.com Corporate Office: 1030 West Georgia Street, Suite 1830, Vancouver, BC, V6E 2Y3 Canada President & CEO: Scott Melbye Investor Relations: Phone: 604.396.8222 Email: Info@UraniumRoyalty.com

URC: TSX-V