INVESTMENT PROPOSITION

Project of Uranium Exploration & Production

in Mongolia

September 2020
Summary

PREVALENT SICAV a.s. invites investors to Uranium Industry a.s. investment Project

o PREVALENT (SICAV based in the Czech Republic) via its company Uranium Industry a.s. acquired uranium
mining assets in Mongolia from Denison Mines Corp; as of 2015 Denison Mines invested USD 37.4 mln into
exploration activities. Uranium Industry nvested 11 million USD as of the 1st half of 2020
o Gurvan Saihan LLC – the project SPV received exclusive rights for extraction of uranium in Mongolia within
four licensed areas (the Project); the licenses are valid until 2046 with a possibility of extension
o Projects advantages and status:
• Technical and commercial assessment performed by world class experts (Denison Mines,
Kazatomprom) confirmed significant uranium resources of 170+ mlbs in different stages of exploration
• The most economically favorable extraction methods – In Situ Leaching (ISL) and Heap Leaching (HL) –
are amenable on the licensed fields
• According to international uranium market fundamentals, a strong growth of demand and uranium
price is anticipated for the next decade
• Project is supported by Mongolian Government as an important FDI
• The project is fully permitted and ready to start; geological exploration, laboratory tests, feasibility
study and detailed design are completed; off-take agreement is in place; debt financing is pre-
arranged.
o Financial evaluation demonstrates robust figures with significant upside potential:
• Conservative evaluation of known resources development provides NPV of USD 161 mln and IRR 45%
• When project enters industrial-scale production phase in 2026 NPV will rise to USD 252, and in case
of positive results of geological exploration of potential resources and realization of stage 2 – to USD
393 mln.
2
 Project Ownership Structure

owner of Uranium Industry a.s. – exercises management

control in the project SPV - Mongolian company Gurvan
Saihan (GVSH)
• Czech investment fund in form of SICAV
• Established in 2014
• Focus: investment in undervalued or growth-stage projects/business without sector and
geographic restrictions (focusing on Asian region, Central and Eastern Europe) with the
intent of increasing their initial value and following with an exit by sale to a strategic
investor or development up to production stage
• Current anchor fund investment: uranium mining assets in Mongolia
www.prevalent.eu/

manages Prevalent Investment Fund SICAV, ensures Strategy

compliance and Fund investments safety.
• Czech Investment Company
• 1.9 bln USD in assets
• Focus: establishment, management, and administration of qualified investor funds
• Czech National Bank license since 2007
• 107 investment funds and sub funds, 9 funds in stock market
*target ownership share based on Mongolian legislation
www.avantfunds.cz 3
 Project Participants

National Atomic Company Kazatomprom JSC

• National operator of the Republic of Kazakhstan for import and export of uranium, rare
42% 40 metals, nuclear fuel for nuclear power plants
• World’s largest producer of natural uranium with priority access to one of the world’s
Global uranium Subsidiaries and largest resource bases
primary supply affiliated
in 2019 companies • Company assets include the entire complex of Kazakh enterprises involved in the front-
end of the nuclear fuel cycle - from geological exploration, uranium mining, and
production of nuclear fuel cycle, through to scientific research and development of
patented technologies
• Kazatomprom shares began trading on the Astana International Exchange and the
London Stock Exchange in November 2018

Role in the Project

Subsidiaries of Kazatomprom engaged in
the Project:
• Support in geologic exploration works
• Participation in EPC consortium
• Technical supervision during project implementation and construction (Institute of High
Technologies)
• Technology and know-how delivery
• Support during operation period
4
Market Fundamentals: Projected Price & Demand Growth
Last years situation
UraniumUranium
production cost
production cost curve, 2018
curve, 2018
• A supply gap of 30-40 mlbs between 80
Demand in 2018

primary production and demand; 70

TOTAL PRODUCTION COST, USD/LB

A large segment of production is not 60
Supply gap
profitable at current prices; 50
30-40 mlbs
Spot price, Oct. 2020
• Accumulated inventories cover the 40

30
deficit and drive the price down.
20

This situation cannot and will not last, 10 Uranium Industry Project cash cost, USD/LB
DCF model, 2028
the market price for next decade is 0
0 20 40 60 80 100 120 140 160
expected at the level of 45-50 USD/lb: Source: SRK URANIUM PRODUCTION, MLB

• Demand has an average 2% y-o-y

growth; Operating NPPs Reactors under construction, MWe (top 10)
• In addition to existing NPP capacity of China
390 Gwe, an additional 60 GWe are UAE
South Korea
under construction; India
390 60
• In addition to developed economies, GWe
Russia
GWe
UK
developing and 3rd world countries are Japan
increasingly choosing Nuclear Power; Taiwan
USA
• Inventories become more price Belarus
sensitive, less mobile and harder to
0 2,000 4,000 6,000 8,000 10,000
obtain as time progresses.
Source: World Nuclear Association 5
Off-take Arrangements and U3O8 Assumed price

Uranium Industry holds a valid off-take

U3O8 price applied in valuation, USD/lbs
Agreement with one of the leading
international uranium trading houses –
Curzon Uranium Trading Limited:

• Period: 7 years since the 1st year of

production
• Take-or-pay rule
• Fixed scope of off-take with possibility
to negotiate an increase
Market price of U3O8, USD/lbs
• Price formula based on the fixed price
and market price components
Based on current evaluation assumptions,
U3O8 will be sold at the spot market price
upon expiry of the off-take agreement.
Negotiations of further long-term off-take
arrangements are in progress.
https://www.cameco.com/invest/markets/uranium-price 6
Project Resource Potential and Development Status
Resources, ths lbs U3O8*
Licence area, ha Defined Potential Total
Hairhan 4,628 25,591 25,000 50,591
Choir 10,386 41,229 40,000 81,229
Gurvan Saihan 2,810 11,050 2,500 13,550
Ulziit 10,665 16,486 8,500 24,986
Total 28,489 94,356 ** 76,000 170,356
* based on Denison Mines resource estimate reports:
- „Technical report on the Hairhan Uranium Exploration property in Mongolia.“ NI43-101 Report, by Roscoe Postle
Associates Inc. 23.03.2011
- „The Choir Project Resource Estimate, Gobi Region, Mongolia“, by Denison Services USA Corp and Mark B.Mathisen,
compliant to NI 43-101 standard, 30.10.2013
- Internal reports of GSJV prepared in cooperation with Denison Mines for Gurvan Saihan and Ulziit, 1.10.2011

The Project is fully permitted and ready to start the implementation phase
 Mining licenses obtained in 2016
 Preliminary geological exploration completed
Project Licenses  Preliminary laboratory tests completed
 Raw material suppliers pre-selected
 Feasibility Study and detailed design for Hairhan deposit completed
 Off-take agreement concluded
 Technology and equipment suppliers pre-selected
 Construction supervisor selected
 Debt financing for Hairhan deposit development pre-arranged
7
 Project Implementation Stages
• Project is planned to be implemented
within two stages
• Commencement of the second stage
will increment the value of the first
stage
Resources development sequence, mln lbs
1st stage – development of known resources
Sub-stage A
• Production of 46 mln lbs of U3O8 based on known (confirmed) resources at Hairhan, Choir and Gurvan
Saihan deposits according to mining licenses
• Use of Kazatomprom’s standardised capacity equipment, resulting in considerable cost effectiveness
• Sub-stage A total production volume defined by the capacity and expected lifetime of the equipment
Sub-stage B
• Development of further 48 mln lbs of U3O8 based on known (confirmed) resources at Choir, Gurvan
Saihan and Ulziit deposits according to mining licenses
• New equipment with the capacity similar to that of the 1st stage’s
• Sub-stage B total production volume limited to remaining known resources at the deposits
2nd stage – development of potential resources
• Production on all four licensed areas, total volume of potential resources - 76 mln lbs U3O8
• Production will depend on the results of additional geological exploration and confirmation of potential
resources
• Additional new equipment for Hairhan and Choir with capacity similar to that of the 1st stage and
continued use of the existent equipment at Gurvan Saihan and Ulziit deposits for development of
potential resources
• 2nd stage total production volume defined by the capacity and expected lifetime of the equipment
8
Project Timeline
Stage 1 Stage 1&2
NPV, USD mln 161 252 393
Based on DCF valuation
IRR 45% 45% 46%

NPV, USD mln 370 680 Based on comparable

transactions Market cap /
IRR 70% 90% resources ratio

before 2020 2021 2022 2023-24 2025 2029-30 2031 2046

• Denison Mines • Pilot • 1st stage • Construction • Industrial- • 2nd stage • 2nd stage
invested USD 37.4 construction pilot works scale construction production
mln into exploration starts
on Hairhan production • Exploration production
• Additional USD 11
mln invested to deposit start-up and • Lower
reach current stage begins confirmation implementa
• Project in of potential tion risk =>
preparation stage: resources discount
bank financing & rate 12%
capital raise for 1st
Stage to be
completed
• Medium
implementation risk
=> discount rate 16%
9
 Production Plan by Stages
ths lbs

Stage 1 - А
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046
Hairhan 0 0 268 268 520 1,820 1,820 2,600 2,600 2,600 2,600 2,600 2,600 2,600 2,600 0 0 0 0 0 0 0 0 0 0 0 0
Choir 0 0 0 0 0 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 0 0 0 0 0 0 0 0 0 0
Gurvan Saihan 0 0 0 0 0 0 0 520 520 520 520 520 520 520 520 520 520 0 0 0 0 0 0 0 0 0 0
Ulziit 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Total 0 0 268 268 520 3,120 3,120 4,420 4,420 4,420 4,420 4,420 4,420 4,420 4,420 1,820 1,820 0 0 0 0 0 0 0 0 0 0

Stage 2 - Б
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046
Hairhan 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Choir 0 0 0 0 0 0 0 2,080 2,600 2,600 2,600 2,600 2,600 2,600 2,600 2,600 2,600 0 0 0 0 0 0 0 0 0 0
Gurvan Saihan 0 0 0 0 0 0 0 0 0 0 1,300 1,300 1,300 1,300 0 0 0 0 0 0 0 0 0 0 0 0 0
Ulziit 0 0 0 0 0 0 0 0 0 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 0 0 0 0 0 0
Total 0 0 0 0 0 0 0 2,080 2,600 3,900 5,200 5,200 5,200 5,200 3,900 3,900 3,900 1,300 1,300 1,300 1,300 0 0 0 0 0 0

Stage 2
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046
Hairhan 0 0 0 0 0 0 0 0 0 0 0 1,300 2,600 2,600 2,600 2,600 2,600 2,600 2,600 2,600 2,600 0 0 0 0 0 0
Choir 0 0 0 0 0 0 0 0 0 0 0 1,300 2,600 2,600 2,600 2,600 2,600 2,600 2,600 2,600 2,600 2,600 2,600 2,600 2,600 2,600 2,600
Gurvan Saihan 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,300 1,300 0 0 0 0 0 0 0 0 0 0 0
Ulziit 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,300 1,300 1,300 1,300 0 0
Total 0 0 0 0 0 0 0 0 0 0 0 2,600 5,200 5,200 6,499 6,499 5,200 5,200 5,200 5,200 5,200 3,900 3,900 3,900 3,900 2,600 2,600

Total Stages 0 0 268 268 520 3,120 3,120 6,499 7,019 8,319 9,619 12,219 14,819 14,819 14,819 12,219 10,919 6,499 6,499 6,499 6,499 3,900 3,900 3,900 3,900 2,600 2,600

10
Project Performance Indicators and Sources of Financing
Structure of CAPEX financing*, USD mln Performance indicators, USD mln
CAPEX Debt Own sources ** Operational CF
1st stage - A 132,209 92,940 32,660 6,609
Stage 1 Stage 1 Stages 1+2
medium risk*** low risk*** low risk
1st stage - B 130,278 0 0 130,278
2nd stage 185,493 0 0 185,493
Total 447,981 92,940 32,660 322,381 161 252 393 NPV, USD mln

Debt Own sources Operational CF

1st stage - A 70% 25% 5% 45% 45% 46% IRR
1st stage - B 0% 0% 100%
2nd stage 0% 0% 100%
8 7 7 Payback

Cumulated DCF by stages, USD mln

* Excluding cost of continual annual investment beyond the

construction period
** Apart from prior investments by Denison Mines Uranium Industry
already invested 11 million USD as of the 1st half of 2020
*** medium risk (16% discount factor) is assigned to the project due
to technical and geological factors; upon entering the production
stage, these risks are mitigated and justify a discount factor of 12%

11
Project Actual and Potential Value

Project value structure, mln lbs

• Development of known resources (stage 1)
• Project in preparation phase
• Discount rate: 16%

• Development of known resources (stage 1)

• Project in operation phase (year 2026), most of risks are mitigated
• Discount rate: 12%

• Development of potential resources (stage 2)

• Potential resources are proven (until 2026)
• Project in operation phase (year 2031)
2020 2026 2026
• Most of risks are mitigated
• Discount rate:12%
Total Actual Additional Additional
potential value (stage value value (stage
project 1 - medium (stages 1 - 2 - low risk)
value risk) low risk)

12
 Uranium Price Sensitivity

3% annual growth of U3O8 market price is Sensitivity of NPV to U3O8 price growth*
assumed in the Project financial model. NPV, USD mln

The sensitivity analysis shows: 220

• Significant potential of the project value

growth in case of more dynamic 161
uranium price growth, which is
anticipated by the market in view of
factors described on slide 5 62

• Positive project value even in case that 7

uranium price will go down to its lowest
level over last 15 years

* Applied to valuation of stage 1, medium risk assumption

13
Project Value Comparison

• Project’s closest analogs are highly profitable but privately

owned mines in Kazakhstan & Uzbekistan with limited
available information in the public

• Low cash cost, low CAPEX requirements, strategic location &

synergies from deposits with large quantities of resources
allow UI to be competitively positioned among its peers in
both the public market and private transactions
Advanced Exploration phase • Temrezli: ISL project in Turkey with a similar low estimated
(Scoping Study/PEA)
cash cost of USD17 and initial CAPEX of USD41mln.
Near term production phase Transaction occurred at a less advanced stage compared to the
(FS, Construction)
fully permitted UI project
Production phase • Ur-Energy: publicly traded company with 27.4 mln lbs of
defined resources and with their flagship deposit in the
production stage Operating cash cost at 37.83$

• Langer Heinrich/Husab/PLS: all these projects were acquired

by a strategic Chinese investor (CGN & CNNC) above market
rates. UI is an excellent position to seek similar exit due to its
strategic position in the region

• Using the ratio of 4 we can calculate Uranium Industry value at

a level of USD370 mln (for resources of 92.6mlbs) and USD680
mln (for resources of 170mlbs) which may provide additional
upside for investors in the case of a strategic exit.
14
15
KEY PERSONNEL

• Alexandr Budunov
- Chief project geologist since 1994
- 40 years experience with uranium exploration, 25 years in Mongolia
- Member of «Sosnovgeology state enterprise» geologic party, which conducted initial survey of
the project areas in the 1980s’ and eventually discovered the uranium occurrences
- Led and supervised exploration program, responsible for exploration data collection and
processing
• Vladimir Barmasov
- Mining engineer, geologist
- 2013 – 2019 head of the Mining department of JSC NAC Kazatomprom, 1997 – 2013 various
positions in JSC NAC Kazatomprom
- extensive experience in all areas of uranium prospection, ISL mining and processing
• Alexandr Vershkov
- Mining engineer, geologist
- Worked on various positions in Volkov Geology since 1978, leading geologist since 1988, director
of various departments since 1999, 2015 – 2020 deputy chairman of Board and chief geologist of
Volkov Geology (subsidiary of JSC NAC Kazatomprom)
• Bat-Ochir Bayantur
- Director of Gurvansaikhan JVC
- Employee of GSJV since 2008
- Management of day-to-day company activities, local technical support, communication with
local authorities, responsible for company and licensing compliance on local level
- since 1985 occupied various positions at the Ministry of Mining of Mongolia and in several state
enterprises

16
SWOT Analysis
Strengths Weaknesses
• Strong relationship with Kazatomprom and access to market leading • Lack of financial capital to cover all exploration and construction
technology and know-how works during the first years of project realization

• Low extraction and operation costs with both ISL and HL • Dependence of CAPEX/OPEX level on Kazatomprom role in the
project
• 4 deposits proximity synergies
• Large distance and time zone difference between Mongolia and
• Leading international experts working on the project Prague create some difficulties in management.
• Intra-governmental support
• Proximity to China and India - key drivers of future U3O8 demand
• Project is fully licensed and ready to commence construction phase

Opportunities Threats
• Significant upside in further resource discovery at Ulziit depression • Long-term political risk in Mongolia, especially considering
• Possible more favorable offtake agreements with Chinese companies geopolitical situation with Russia and China.

• Possible more favorable raw material contracts with Oyu Tolgoi mine • Long-term regulatory risks associated with uranium commodities
and trade.
• Further licenses from Mongolian government based on previous
studies
• Strong market fundamentals for uranium demand growth

17
 Free Cash Flow to Equity: 1st Stage, Medium Implementation Risk
Total 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040
Revenue 3,701,775 0 0 7,119 7,624 15,951 104,617 113,517 247,090 254,137 306,219 365,170 376,607 388,388 400,522 357,207 253,234 259,786 59,869 60,704 61,564 62,450
Cost 1,632,715 0 1,892 5,583 5,872 8,759 45,349 48,844 101,661 111,376 137,084 161,255 164,753 168,945 172,149 151,608 108,254 110,309 29,286 28,865 29,258 29,662
Production/processing 329,677 0 0 791 807 1,599 9,783 9,979 21,205 23,359 28,239 33,304 33,970 34,650 35,343 31,178 21,863 22,301 5,170 5,273 5,379 5,486
Geological network 472,012 0 0 1,133 1,156 2,289 14,007 14,287 30,360 33,444 40,430 47,683 48,636 49,609 50,601 44,638 31,303 31,929 7,402 7,550 7,701 7,855
Personnel 48,389 0 223 548 559 620 1,855 1,892 2,997 3,201 3,616 4,024 4,104 4,186 4,270 3,992 3,252 3,317 1,391 1,419 1,447 1,476
Personnel travel and accomodation 20,284 0 94 230 234 261 777 792 1,255 1,344 1,515 1,685 1,719 1,758 1,789 1,672 1,362 1,393 583 594 606 620
Repair/modernisation 16,017 0 0 118 118 118 542 609 1,840 823 1,132 1,235 1,509 2,410 2,256 845 675 675 277 277 277 277
Electricity 101,372 0 0 404 412 490 2,999 3,058 6,499 7,160 8,655 10,208 10,412 10,620 10,833 9,556 6,701 6,835 1,585 1,616 1,649 1,682
Repair and restoration work 305,208 0 138 141 295 471 5,572 7,050 16,628 19,812 27,108 32,461 33,110 33,772 34,448 30,388 21,310 21,736 5,039 5,140 5,242 5,347
Transportation 74,978 0 0 161 165 326 1,996 2,252 4,547 5,349 6,448 7,495 7,645 7,798 7,954 7,119 5,233 5,338 1,858 1,076 1,098 1,120
Ancillary production 815 0 0 25 26 26 27 28 28 29 29 30 30 31 32 32 33 34 34 35 36 36
Water 2,642 0 0 6 6 13 78 80 170 187 226 267 272 278 283 250 175 179 41 42 43 44
Royalty 185,089 0 0 356 381 798 5,231 5,676 12,354 12,707 15,311 18,258 18,830 19,419 20,026 17,860 12,662 12,989 2,993 3,035 3,078 3,123
Property tax 25,353 0 52 137 177 185 574 1,229 1,476 1,594 1,860 1,941 1,838 1,727 1,616 1,505 1,394 1,282 1,171 1,060 949 838
Administrative cost 43,973 0 1,385 1,513 1,516 1,525 1,675 1,682 1,816 1,843 1,894 1,945 1,957 1,969 1,981 1,950 1,864 1,874 1,645 1,651 1,657 1,663
Selling expenses 6,908 0 0 20 20 39 233 233 485 524 621 718 718 718 718 621 427 427 97 97 97 97
EBITDA 2,069,060 0 -1,892 1,535 1,752 7,191 59,268 64,672 145,429 142,761 169,135 203,915 211,855 219,443 228,373 205,599 144,980 149,478 30,583 31,839 32,306 32,788
Depreciation -454,278 0 0 -2,832 -3,342 -4,240 -11,282 -16,155 -28,574 -30,057 -35,706 -41,270 -41,270 -39,420 -39,072 -35,408 -28,388 -25,486 -11,621 -11,571 -10,288 -9,055
EBIT 1,614,782 0 -1,892 -1,296 -1,590 2,952 47,987 48,517 116,855 112,704 133,429 162,645 170,585 180,023 189,301 170,191 116,592 123,991 18,961 20,268 22,019 23,732
Interest Expense 34,615 0 0 1,137 1,482 1,627 1,634 3,866 4,522 4,069 3,617 3,165 2,713 2,261 1,809 1,356 904 452 0 0 0 0
EBT 1,580,167 0 -1,892 -2,433 -3,072 1,325 46,353 44,651 112,334 108,635 129,811 159,480 167,872 177,762 187,493 168,835 115,688 123,539 18,961 20,268 22,019 23,732
Losses Carry-Forward -6,830 0 0 0 0 -1,325 -5,505 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Income Taxes -359,593 0 0 0 0 0 -8,904 -9,744 -24,995 -23,982 -28,625 -35,305 -37,260 -39,586 -41,867 -37,744 -25,757 -27,637 -3,992 -4,308 -4,735 -5,152
Net Income 1,213,744 0 -1,892 -2,433 -3,072 0 31,943 34,907 87,339 84,653 101,186 124,175 130,611 138,176 145,626 131,091 89,931 95,902 14,969 15,960 17,284 18,580

CAPEX -469,578 -11,008 -24,487 -7,006 -2,696 -1,649 -76,708 -55,223 -18,750 -49,227 -51,537 -25,974 -25,974 -25,974 -25,974 -22,464 -15,444 -15,444 -3,510 -3,510 -3,510 -3,510
Change of WC -134,881 0 -1,130 -1,631 -507 -2,031 -24,140 -8,986 -28,334 -11,218 -20,196 -20,699 -13,985 -14,257 -14,768 -4,560 8,551 -9,151 29,362 -2,065 -2,160 -2,163
Net borrowings 0 0 22,733 5,904 2,395 647 45,651 13,104 -9,043 -9,043 -9,043 -9,043 -9,043 -9,043 -9,043 -9,043 -9,043 -9,043 0 0 0 0
(+) Debd issued 92,940 0 22,733 5,904 2,395 2,154 46,651 13,104 0 0 0 0 0 0 0 0 0 0 0 0 0 0
(-) Debt repayed -92,940 0 0 0 0 -1,507 -1,000 0 -9,043 -9,043 -9,043 -9,043 -9,043 -9,043 -9,043 -9,043 -9,043 -9,043 0 0 0 0
Net Equity Cash Flow 1,063,563 -11,008 -4,776 -2,334 -539 1,207 -11,972 -43 59,785 45,222 56,116 109,728 122,879 128,322 134,913 130,432 102,382 87,750 52,443 21,955 21,901 21,963
Accumulated Cash Flow 14,935,041 -11,008 -15,784 -18,118 -18,656 -17,449 -29,421 -29,464 30,322 75,543 131,660 241,388 364,267 492,589 627,501 757,933 860,315 948,065 1,000,508 1,022,463 1,044,365 1,066,327
Discounted FCFE 161,279 -11,008 -4,117 -1,734 -345 667 -5,700 -18 21,154 13,794 14,756 24,874 24,013 21,617 19,593 16,329 11,050 8,164 4,206 1,518 1,305 1,129
Accumulated Discounted FCFE -11,008 -15,125 -16,860 -17,205 -16,538 -22,238 -22,255 -1,102 12,692 27,448 52,322 76,334 97,952 117,545 133,874 144,924 153,088 157,295 158,813 160,118 161,247

18
 Free Cash Flow to Equity: 1st Stage, Low Implementation Risk
Total 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040
Revenue 3,701,775 0 0 7,119 7,624 15,951 104,617 113,517 247,090 254,137 306,219 365,170 376,607 388,388 400,522 357,207 253,234 259,786 59,869 60,704 61,564 62,450
Cost 1,632,715 0 1,892 5,583 5,872 8,759 45,349 48,844 101,661 111,376 137,084 161,255 164,753 168,945 172,149 151,608 108,254 110,309 29,286 28,865 29,258 29,662
Production/processing 329,677 0 0 791 807 1,599 9,783 9,979 21,205 23,359 28,239 33,304 33,970 34,650 35,343 31,178 21,863 22,301 5,170 5,273 5,379 5,486
Geological network 472,012 0 0 1,133 1,156 2,289 14,007 14,287 30,360 33,444 40,430 47,683 48,636 49,609 50,601 44,638 31,303 31,929 7,402 7,550 7,701 7,855
Personnel 48,389 0 223 548 559 620 1,855 1,892 2,997 3,201 3,616 4,024 4,104 4,186 4,270 3,992 3,252 3,317 1,391 1,419 1,447 1,476
Personnel travel and accomodation 20,284 0 94 230 234 261 777 792 1,255 1,344 1,515 1,685 1,719 1,758 1,789 1,672 1,362 1,393 583 594 606 620
Repair/modernisation 16,017 0 0 118 118 118 542 609 1,840 823 1,132 1,235 1,509 2,410 2,256 845 675 675 277 277 277 277
Electricity 101,372 0 0 404 412 490 2,999 3,058 6,499 7,160 8,655 10,208 10,412 10,620 10,833 9,556 6,701 6,835 1,585 1,616 1,649 1,682
Repair and restoration work 305,208 0 138 141 295 471 5,572 7,050 16,628 19,812 27,108 32,461 33,110 33,772 34,448 30,388 21,310 21,736 5,039 5,140 5,242 5,347
Transportation 74,978 0 0 161 165 326 1,996 2,252 4,547 5,349 6,448 7,495 7,645 7,798 7,954 7,119 5,233 5,338 1,858 1,076 1,098 1,120
Ancillary production 815 0 0 25 26 26 27 28 28 29 29 30 30 31 32 32 33 34 34 35 36 36
Water 2,642 0 0 6 6 13 78 80 170 187 226 267 272 278 283 250 175 179 41 42 43 44
Royalty 185,089 0 0 356 381 798 5,231 5,676 12,354 12,707 15,311 18,258 18,830 19,419 20,026 17,860 12,662 12,989 2,993 3,035 3,078 3,123
Property tax 25,353 0 52 137 177 185 574 1,229 1,476 1,594 1,860 1,941 1,838 1,727 1,616 1,505 1,394 1,282 1,171 1,060 949 838
Administrative cost 43,973 0 1,385 1,513 1,516 1,525 1,675 1,682 1,816 1,843 1,894 1,945 1,957 1,969 1,981 1,950 1,864 1,874 1,645 1,651 1,657 1,663
Selling expenses 6,908 0 0 20 20 39 233 233 485 524 621 718 718 718 718 621 427 427 97 97 97 97
EBITDA 2,069,060 0 -1,892 1,535 1,752 7,191 59,268 64,672 145,429 142,761 169,135 203,915 211,855 219,443 228,373 205,599 144,980 149,478 30,583 31,839 32,306 32,788
Depreciation -454,278 0 0 -2,832 -3,342 -4,240 -11,282 -16,155 -28,574 -30,057 -35,706 -41,270 -41,270 -39,420 -39,072 -35,408 -28,388 -25,486 -11,621 -11,571 -10,288 -9,055
EBIT 1,614,782 0 -1,892 -1,296 -1,590 2,952 47,987 48,517 116,855 112,704 133,429 162,645 170,585 180,023 189,301 170,191 116,592 123,991 18,961 20,268 22,019 23,732
Interest Expense 34,615 0 0 1,137 1,482 1,627 1,634 3,866 4,522 4,069 3,617 3,165 2,713 2,261 1,809 1,356 904 452 0 0 0 0
EBT 1,580,167 0 -1,892 -2,433 -3,072 1,325 46,353 44,651 112,334 108,635 129,811 159,480 167,872 177,762 187,493 168,835 115,688 123,539 18,961 20,268 22,019 23,732
Losses Carry-Forward -6,830 0 0 0 0 -1,325 -5,505 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Income Taxes -359,593 0 0 0 0 0 -8,904 -9,744 -24,995 -23,982 -28,625 -35,305 -37,260 -39,586 -41,867 -37,744 -25,757 -27,637 -3,992 -4,308 -4,735 -5,152
Net Income 1,213,744 0 -1,892 -2,433 -3,072 0 31,943 34,907 87,339 84,653 101,186 124,175 130,611 138,176 145,626 131,091 89,931 95,902 14,969 15,960 17,284 18,580

CAPEX -469,578 -11,008 -24,487 -7,006 -2,696 -1,649 -76,708 -55,223 -18,750 -49,227 -51,537 -25,974 -25,974 -25,974 -25,974 -22,464 -15,444 -15,444 -3,510 -3,510 -3,510 -3,510
Change of WC -134,881 0 -1,130 -1,631 -507 -2,031 -24,140 -8,986 -28,334 -11,218 -20,196 -20,699 -13,985 -14,257 -14,768 -4,560 8,551 -9,151 29,362 -2,065 -2,160 -2,163
Net borrowings 0 0 22,733 5,904 2,395 647 45,651 13,104 -9,043 -9,043 -9,043 -9,043 -9,043 -9,043 -9,043 -9,043 -9,043 -9,043 0 0 0 0
(+) Debd issued 92,940 0 22,733 5,904 2,395 2,154 46,651 13,104 0 0 0 0 0 0 0 0 0 0 0 0 0 0
(-) Debt repayed -92,940 0 0 0 0 -1,507 -1,000 0 -9,043 -9,043 -9,043 -9,043 -9,043 -9,043 -9,043 -9,043 -9,043 -9,043 0 0 0 0
Net Equity Cash Flow 1,063,563 -11,008 -4,776 -2,334 -539 1,207 -11,972 -43 59,785 45,222 56,116 109,728 122,879 128,322 134,913 130,432 102,382 87,750 52,443 21,955 21,901 21,963
Accumulated Cash Flow 14,935,041 -11,008 -15,784 -18,118 -18,656 -17,449 -29,421 -29,464 30,322 75,543 131,660 241,388 364,267 492,589 627,501 757,933 860,315 948,065 1,000,508 1,022,463 1,044,365 1,066,327
Discounted FCFE 251,516 -11,008 -4,264 -1,860 -383 767 -6,793 -22 27,044 18,264 20,236 35,330 35,325 32,937 30,918 26,689 18,705 14,314 7,638 2,855 2,543 2,277
Accumulated Discounted FCFE -11,008 -15,272 -17,133 -17,516 -16,749 -23,542 -23,564 3,480 21,745 41,981 77,310 112,635 145,572 176,490 203,179 221,884 236,198 243,836 246,691 249,234 251,511

19
 Free Cash Flow to Equity: 2nd Stage, Low Implementation Risk, 1
Total 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040
Revenue 7,150,669 0 0 7,119 7,624 15,951 104,617 113,517 247,090 254,137 306,219 365,170 478,393 598,328 617,021 636,275 541,000 495,937 298,973 302,849 306,842 310,955
Cost 3,100,930 0 1,892 5,583 5,872 8,759 45,349 48,844 101,661 111,376 137,084 161,774 208,318 257,222 262,418 265,962 225,297 206,153 128,020 129,402 131,647 133,957
Production/processing 637,296 0 0 791 807 1,599 9,783 9,979 21,205 23,359 28,239 33,304 43,151 53,379 54,447 55,535 46,708 42,574 25,849 26,366 26,893 27,431
Geological network 912,441 0 0 1,133 1,156 2,289 14,007 14,287 30,360 33,444 40,430 47,683 61,781 76,425 77,953 79,512 66,874 60,955 37,008 37,749 38,504 39,274
Personnel 84,311 0 223 548 559 620 1,855 1,892 2,997 3,201 3,616 4,024 4,738 5,426 5,534 5,645 5,128 4,890 3,653 3,726 3,801 3,877
Personnel travel and accomodation 35,340 0 94 230 234 261 777 792 1,255 1,344 1,515 1,685 1,985 2,278 2,318 2,364 2,148 2,053 1,530 1,561 1,592 1,628
Repair/modernisation 23,713 0 0 118 118 118 542 609 1,840 823 1,132 1,235 1,742 3,123 2,924 1,195 1,064 995 729 729 729 729
Electricity 195,657 0 0 404 412 490 2,999 3,058 6,499 7,160 8,655 10,208 13,226 16,361 16,688 17,022 14,316 13,049 7,923 8,081 8,243 8,408
Repair and restoration work 605,038 0 138 141 295 471 5,572 7,050 16,628 19,812 27,108 32,461 42,059 52,028 53,068 54,130 45,526 41,496 25,194 25,698 26,212 26,736
Transportation 145,895 0 0 161 165 326 1,996 2,252 4,547 5,349 6,448 7,495 9,519 11,862 12,347 12,594 10,818 10,000 6,613 5,926 6,045 6,166
Ancillary production 815 0 0 25 26 26 27 28 28 29 29 30 30 31 32 32 33 34 34 35 36 36
Water 5,107 0 0 6 6 13 78 80 170 187 226 267 346 428 436 445 374 341 207 211 215 220
Royalty 357,533 0 0 356 381 798 5,231 5,676 12,354 12,707 15,311 18,258 23,920 29,916 30,851 31,814 27,050 24,797 14,949 15,142 15,342 15,548
Property tax 36,965 0 52 137 177 185 574 1,229 1,476 1,594 1,860 2,461 2,877 2,741 2,581 2,419 2,256 2,093 1,929 1,766 1,613 1,470
Administrative cost 48,284 0 1,385 1,513 1,516 1,525 1,675 1,682 1,816 1,843 1,894 1,945 2,033 2,118 2,133 2,149 2,089 2,063 1,917 1,928 1,939 1,951
Selling expenses 12,534 0 0 20 20 39 233 233 485 524 621 718 912 1,106 1,106 1,106 912 815 485 485 485 485
EBITDA 4,049,739 0 -1,892 1,535 1,752 7,191 59,268 64,672 145,429 142,761 169,135 203,396 270,075 341,106 354,603 370,313 315,703 289,784 170,953 173,447 175,195 176,998
Depreciation -739,677 0 0 -2,833 -3,344 -4,243 -11,299 -16,172 -28,609 -30,095 -35,751 -41,322 -54,742 -59,894 -59,564 -59,412 -52,378 -45,975 -32,086 -32,035 -30,752 -29,648
EBIT 3,310,062 0 -1,892 -1,298 -1,592 2,949 47,970 48,500 116,820 112,666 133,383 162,073 215,333 281,212 295,039 310,901 263,325 243,809 138,867 141,412 144,443 147,350
Interest Expense 34,615 0 0 1,137 1,482 1,627 1,634 3,866 4,522 4,069 3,617 3,165 2,713 2,261 1,809 1,356 904 452 0 0 0 0
EBT 3,275,447 0 -1,892 -2,435 -3,073 1,322 46,336 44,634 112,298 108,597 129,766 158,908 212,620 278,951 293,230 309,544 262,421 243,357 138,867 141,412 144,443 147,350
Losses Carry-Forward -6,830 0 0 0 0 -1,322 -5,508 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Income Taxes -730,005 0 0 0 0 0 -8,899 -9,739 -24,986 -23,972 -28,614 -35,162 -47,175 -62,259 -65,595 -69,433 -58,843 -54,640 -30,980 -31,567 -32,275 -32,951
Net Income 2,538,613 0 -1,892 -2,435 -3,073 0 31,929 34,894 87,312 84,624 101,152 123,746 165,445 216,692 227,635 240,112 203,578 188,717 107,887 109,844 112,167 114,399

CAPEX -767,391 -11,008 -24,487 -7,006 -2,696 -1,649 -76,708 -55,223 -18,750 -49,227 -51,537 -116,107 -32,994 -40,264 -40,264 -40,014 -32,994 -29,484 -17,550 -17,550 -19,350 -19,350
Change of WC -277,374 0 -1,130 -1,630 -507 -2,031 -24,138 -8,986 -28,331 -11,217 -20,195 -29,637 -31,943 -37,583 -22,710 -23,077 -1,595 -7,988 21,916 -9,685 -10,089 -10,102
Net borrowings 0 0 22,733 5,904 2,395 647 45,651 13,104 -9,043 -9,043 -9,043 -9,043 -9,043 -9,043 -9,043 -9,043 -9,043 -9,043 0 0 0 0
(+) Debd issued 92,940 0 22,733 5,904 2,395 2,154 46,651 13,104 0 0 0 0 0 0 0 0 0 0 0 0 0 0
(-) Debt repayed -92,940 0 0 0 0 -1,507 -1,000 0 -9,043 -9,043 -9,043 -9,043 -9,043 -9,043 -9,043 -9,043 -9,043 -9,043 0 0 0 0
Net Equity Cash Flow 2,233,525 -11,008 -4,776 -2,333 -539 1,210 -11,968 -38 59,797 45,232 56,129 10,281 146,207 189,696 215,182 227,389 212,323 188,176 144,339 114,645 113,481 114,596
Accumulated Cash Flow 24,021,259 -11,008 -15,784 -18,117 -18,656 -17,446 -29,414 -29,452 30,345 75,576 131,705 141,986 288,193 477,889 693,071 920,460 1,132,784 1,320,960 1,465,299 1,579,944 1,693,425 1,808,020
Discounted FCFE 393,111 -11,008 -4,264 -1,860 -383 769 -6,791 -19 27,049 18,268 20,241 3,310 42,031 48,690 49,314 46,528 38,791 30,696 21,022 14,908 13,176 11,880
Accumulated Discounted FCFE -11,008 -15,272 -17,132 -17,516 -16,747 -23,538 -23,557 3,492 21,760 42,001 45,311 87,342 136,032 185,346 231,875 270,666 301,361 322,383 337,292 350,468 362,347

20
 Free Cash Flow to Equity: 2nd Stage, Low Implementation Risk, 2
Total 2041 2042 2043 2044 2045 2046
Revenue 7,150,669 189,277 190,675 190,675 190,675 190,675 190,675
Cost 3,100,930 84,082 85,410 86,697 88,022 89,371 90,755
Production/processing 637,296 16,788 17,123 17,466 17,815 18,171 18,535
Geological network 912,441 24,035 24,516 25,006 25,507 26,017 26,537
Personnel 84,311 2,911 2,969 3,028 3,089 3,150 3,213
Personnel travel and accomodation 35,340 1,219 1,244 1,268 1,297 1,320 1,346
Repair/modernisation 23,713 536 536 536 536 536 536
Electricity 195,657 5,145 5,248 5,353 5,460 5,570 5,681
Repair and restoration work 605,038 16,363 16,690 17,024 17,364 17,711 18,066
Transportation 145,895 4,005 4,085 4,167 4,250 4,335 4,422
Ancillary production 815 37 38 39 39 40 41
Water 5,107 135 137 140 143 146 149
Royalty 357,533 9,464 9,534 9,534 9,534 9,534 9,534
Property tax 36,965 1,316 1,151 988 830 673 517
Administrative cost 48,284 1,837 1,847 1,857 1,867 1,877 1,887
Selling expenses 12,534 291 291 291 291 291 291
EBITDA 4,049,739 105,194 105,266 103,978 102,653 101,304 99,920
Depreciation -739,677 -18,953 -18,692 -18,519 -18,458 -18,436 -16,464
EBIT 3,310,062 86,241 86,574 85,459 84,195 82,867 83,456
Interest Expense 34,615 0 0 0 0 0 0
EBT 3,275,447 86,241 86,574 85,459 84,195 82,867 83,456
Losses Carry-Forward -6,830 0 0 0 0 0 0
Income Taxes -730,005 -19,194 -19,260 -18,981 -18,665 -18,333 -18,481
Net Income 2,538,613 67,047 67,314 66,478 65,530 64,534 64,975

CAPEX -767,391 -10,530 -10,530 -10,530 -10,530 -10,530 -10,530

Change of WC -277,374 12,803 -5,929 -5,703 -5,702 -5,943 -6,241
Net borrowings 0 0 0 0 0 0 0
(+) Debd issued 92,940 0 0 0 0 0 0
(-) Debt repayed -92,940 0 0 0 0 0 0
Net Equity Cash Flow 2,233,525 88,273 69,547 68,763 67,756 66,498 64,668
Accumulated Cash Flow 24,021,259 1,896,293 1,965,840 2,034,604 2,102,360 2,168,857 2,233,525
Discounted FCFE 393,111 8,171 5,748 5,074 4,464 3,912 3,396
Accumulated Discounted FCFE 370,518 376,265 381,339 385,803 389,715 393,111

21
PROJECT INPUTS
Denison is a uranium exploration and
development company with head office in
Toronto, Canada. Denison's common shares
are listed on the Toronto Stock Exchange (the
'TSX') under the symbol 'DML' and on the
NYSE American exchange under the symbol
'DNN'.
The Company is focused on the uranium
projects in Saskatchewan. In addition, Denison
has an extensive portfolio of exploration
projects in the Athabasca Basin region.
www.denisonmines.com
• Denison Mines acquired the assets of GSJV and became its co-owner in 1997
• During 1997-2015 Denison Mines invested USD 37,4 mln in GSJV exploration
activities:
• total drilling work of 446,000 m
• vast gamma spectrometric survey (completed on 22,000 km)
Uranium Industries continued Project development based on resource estimate reports
(NI 43-101 standard), developed scoping studies and test reports received from Denison
Mines, investing additional USD 11 mln to reach construction stage.
Project input by Uranium Industries a.s.
• exclusive rights for extraction of uranium in Mongolia
• additional technical and commercial assessment performed by world class experts
• ensured Project support by Mongolian Government
• completed pilot stage detailed design
• pre-selected Engineering and Procurement contractors
• selected know-how & technology supplier, technical supervision on Customer’s side
• pre-agreed support during operation period
• concluded off-take agreement
• pre-arranged debt financing
22
Production
Target product: Yellowcake – the typically yellow, powdered form of uranium oxide
(U3O8) is a commodity traded on the market.

In Situ Leaching (ISL) and Heap Leaching (HL) extraction technology will be used for
industrial scale production. This technology has been successfully used in a number of
fields for uranium mining and production by the world leader in the industry --
Kazatomprom.

Production will be started using a Mobile Complex – a semi-mobile uranium extraction

plant (developed by Kazatomprom (IHT*)). It includes smaller than usual standard
Kazatomprom process equipment and most of the buildings and facilities are mobile
(containerized) or semi-mobile (tented steel frame), for example: administrative and
laboratory buildings.

As a natural development of the project the standard industrial scale production

equipment will be used: complexes for uranium ore processing with capacity of 500 and
1000 t/year, depending on the scope of resources on a particular field.

*Institute of High Technologies

23
ISL EXTRACTION METHOD

In situ leaching (ISL) - extraction method In situ leaching

allowing to develop ore deposits without
raising the ore to the surface by selective
transferring natural uranium ions into a
product solution directly in the subsoil.

To this end, a sulfuric acid is injected into the

ore formation via the wells drilled from the
surface, where it dissolves the ore. The
solution, after flowing from the injection well
to the production well, is pumped to the
surface, collected with the solution receiving
and distribution units, and then transported
via pipelines to the processing facilities, where
the ore is extracted and processed into
yellowcake.

Main reagents and chemicals used for uranium

recovery:
- sulphuric acid
- caustic
- hydrogen peroxide

24
URANIUM LIFECYCLE

Uranium ore is mined around the world and refined into a powder commonly called
yellowcake (U3O8).
• Yellowcake is transported to a conversion facility and chemically bonded to Fluoride
to makingUF6.
• From there, it is transported to an Enrichment facility where its concentration of the
isotope235U is increased from 0.7% to up to 5%. Major commercial enrichment
plants are in operation in France, Germany, the Netherlands, the UK, the United
States, and Russia.
• At a fuel fabrication facility it is de-converted back to a powder (UO2), turned into
small, ceramic pellets of about 1cm, and inserted into bundled fuel rods. One of
these small pellets has the same energy density as 1 ton of coal.
• Fuel bundles spend roughly 6 years in a light water reactor before they are removed
and placed into a spent fuel pool until it can be reprocessed.
• Some spent fuel is reprocessed into "Mixed Oxide" Fuel or MOX fuel re-entering the
fuel cycle, while other spent fuel is retired to a final repository in suitable geological
locations.

Source: Curzon Uranium

25
History of the GSJV project
• Intensive geologic prospection in Mongolia began in 1960s by Soviet state geologic prospection
enterprises, including the Irkutsk based “Sosnovgeology”, subsidiary of the “Urangeologorazvedka state
enterprise”
• In 1980s a “Sosnovgeology” geologist party via extensive prospection of the Central Gobi area identified
and mapped a number of perspective deposits. The later project chief geologist Alexandr Budunov
personally discovered the Choir deposit in 1988 and was later commissioned there to do the exploration
works, including extensive leaching testing
• In 1994, after a short break in exploration, which took place due to the changing political and economic
environment, a Russian, Mongolian and the US Joint Venture Company named “Gurvansaikhan LLC”
(GSJV) was established. It continued further exploration of the uranium occurrences previously discovered
by the “Sosnovgeology” expeditions. During these years Hairhan deposit was discovered.
• In 1997 Denison Mines acquired the US shares in GSJV and concentrated on exploration of Hairhan, Choir
and Ulziit areas.
• Initially the GSJV was granted 6 exploration licenses. Two exploration licenses (Urt-tsav and Huh Tolgoi)
were released in 2012, leaving the Hairhan, Choir, Gurvansaikhan and Ulziit exploration licenses as the
core project areas covering a total of 167 260 ha
• Between 1999 and 2005 there was another break in the JV’s activities due to a general drop of uranium
market prices, but in 2006 the work resumed and was intensified on the Hairhan and Haraat areas
• By 2009 areas identified as perspective for mining were sufficiently explored. Enough data was provided
for the drafting of scoping and feasibility studies. After in 2015 Uranium Industries acquired shares of
Denison Mines, GSJV applied for mining licenses for areas with reduced boundaries in the following years
• Further, GSJV concentrated on preparation for construction of mining facilities and further deposits
development
• Exploration data indicates large uranium potential on several areas within the initial exploration license
boundaries, which are still available to be applied for and explored, expanding the project resource base
significantly
26
Joint Venture Mon-Czech Uranium LLC

 On 16 November 2012, Collaboration Agreement between the Nuclear Energy

Agency of Mongolia and the Ministry of Industry and Trade of the Czech Republic
was signed

 Shareholders Agreement between Uranium Industry a.s. and Mon-Atom LLC

signed on June 12th 2015

 Currently the JV holds one exploration license for the Kholboo exploration area

 In the Shareholders Agreement Mon-Atom LLC undertook to choose several more

perspective license areas for mutual exploration and development

27
License 1: Hairhan

• The most explored out of the four project deposits and the first deposit scheduled to
be mined in scope of 1st Stage of the project
• Discovered by a geologist party led by Alexandr Budunov in 1996 during exploration in
the Central Gobi aimag
• Initial licensed exploration area: 31 702 hectare
• Reduced licensed mining area: 4 628.42 hectare
• Favorable location: proximity to extensive road network and electricity supply; strategic
railway station Choir (with direct connection to Ulaanbaatar and Beijing) is located 250
km from the Hairhan deposit
• Works done: Systematic intensive drilling, gamma spectrometry, hydrogeologic and
technological exploration conducted in the 1990s and 2000s; leaching tests conducted
successfully in 1998, establishing the feasibility of ISL on Hairhan; ISL feasibility study
and mining project prepared by NAC Kazatomprom
• The registered reserve only includes sections with a maximum depth of 100 m.
Exploration results prove that the depth of the central ore block is at least 200 m,
indicating a significant reserve potential and requiring further exploration
simultaneously with 1st Stage mining activities
License 2: Choir/Haraat

• Discovered in 1988 by “Sosnovgeology” exploration party (by Alexandr Budunov).

• Initial licensed exploration area: 35 457.00 hectare
• Reduced licensed mining area: 10 386.24 hectare
• Location: Central Gobi aimag, in proximity to the railway and road networks
• Works done: intensive exploration and testing conducted in 1994-1997 and in 2007-2010;
leaching tests in 1996 (demonstrated a 80% extractability of uranium by means of
leaching); heap leaching scoping study drafted by NAC Kazatomprom team is scheduled to
be finalized in October/November 2020
• Due to most of the reserve being located above the water level, ISL is only viable for
approximately 10% of overall reserve; deposit location depth ranges from 3 m to 40 m,
making the deposit viable for open pit extraction and subsequent cost-effective heap
leaching. A total of 11 ore bodies have been identified at the deposit, only 2 have been
explored to an extent allowing reserve calculation. Further exploration of the remaining 9
ore bodies will increase reserve significantly
License 3: Gurvansaikhan

• Discovered in 1996 by geologist party led by Alexandr Budunov

• Compact deposit, the smallest among GSJV deposits
• Location: in proximity to the road and railway networks, close to Hairhan deposit
allowing for possible operation of Gurvansaikhan as a satellite plant of Hairhan and
partially use Hairhan’s processing facilities to achieve the best cost ratio
• Initial licensed exploration area: 20 736.00 hectare
• Reduced licensed mining area: 2 810.44 hectare
• Fully viable for ISL
• High concentrations of other elements also identified in the deposit ores (Pb, Mo, Zn, Cu,
as well as REs and REEs)
License 4: Ulziit

• The 200 km long Ulziit depression was surveyed by GSJV, “Sosnovgeology” and
“Geologorazvedka” in the 2010s. Only 15% of the Ulziit depression was explored on the
grounds of the Ulziit exploration license
• The mining license application for Ulziit included a significantly reduced area to avoid
extra cost in annual mining license fees, hence a much larger portion of the Ulziit
depression was released from the license
• Initial licensed exploration area: 79 365.00 hectare
• Reduced licensed mining area: 10 665.22 hectare
• Primary data gathered by “Sosnovgeology” and “Geologorazvedka” gives sufficient
grounds to expect a significant reserve potential on the released areas of the initial
exploration license area
• Further exploration and reserve identification is possible once exploration licenses are re-
applied for and granted
• A preliminary exploration plan envisages approximately 100 000 m of drilling work, which
should result in the confirmation of a mineable reserve of around 40 000 tons, making
Ulziit a prospective ISL deposit, generating an annual production of 1 000 tons

31