Denison Reports Financial and Operational Results for Q1 2024
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Denison Mines Corp.
1100 – 40 University Ave
Toronto, ON M5J 1T1
www.denisonmines.com
PRESS RELEASE
Denison Reports Financial and Operational Results for Q1 2024
Toronto, ON – May 8, 2 024. Denison Mines Corp. (‘Denison’ or the ‘Company’) (TSX: DML, NYSE
American: DNN) today filed it s Condensed Consolidated Financ ial Statements and Management’s
Discussion & Analysis (‘MD&A’) for the quarter ended Marc h 31, 2024. Both documents will be available
on the Company’s website at www.denisonmines.com, SEDAR+ (at www.sedarplus.ca) and EDGAR (at
www.sec.gov/edgar.shtml). The highlights provided below are derived from these documents and should
be read in conjunction with them. All amounts in this release are in Canadian dollars unless otherwise
stated.
David Cates, President and CEO of Denison commented, “This year, Denison commemorates its 70th year
of uranium mining, exploration, and development. D enison’s long history in uranium mining has been
characterized by strategic vision, technological ad vancement, and an entrepreneurial drive to accomplish
things others thought impossible. Modern Denison’s defining moment can be traced to a decision, from
approximately 15-years ago, to repos ition the Company away from a hi gh-cost global expansion platform
to focus on the exploration and development of high-grade uranium deposits in the Athabasca Basin region
of northern Saskatchewan. This strategy built on Denison’s discovery of the Phoenix deposit in 2008 and
demonstrated a steadfast conviction that uranium and nuclear energy would be recognized as an essential
source of baseload power generation in the long-run – offering an unrivaled combination of emission-free
energy and energy security.
Our tireless efforts to advance the Company’s strategy, and complete technical evaluations of our flagship
Wheeler River project, led to the bold selection of the In-Situ Recovery (‘IS R’) mining method for the
Phoenix deposit in 2018, and have put us in a position where we are nearing a final investment decision to
proceed with the construction of potentially one of the lowest-cost uranium mines in the world. In Q1’2024
we made several important steps towards this objective, including the transition from Front-End Engineering
Design to detailed design, and the exclusive acquisition of MaxPERF tooling systems, which are expected
to support our industry leading deployment of the low-cost ISR mining method in the Athabasca Basin.
Denison’s portfolio of uranium reserves, resources, and physical holdings has greatly appreciated in value
through late 2023 and into early 2024, as positive sentiment in the uranium and nuclear energy markets
has sustained and uranium prices have rapidly incr eased. As Denison has avoided entering low-priced
uranium supply contracts in recent years and has held its physical uranium investment to support future
project financing efforts for Phoenix, we are now in an enviable spot with significant uncommitted uranium
production and physical holdings potentially available to the market at time of expected scarcity. Taken
together with continued geopolitical instability and the expected emergence of significant additional demand
from new nuclear builds, it is an ideal time for our Company to be readying to build a low-cost
Saskatchewan-based uranium mine.
As we celebrate Denison’s legacy of uranium mining in 2024, we look forward to marking this year with
several additional notable milestones from our exciti ng portfolio of Saskatchewan-based uranium mining,
exploration, and development projects.”
Highlights
Transition to Detailed Design Engineering for Flag ship Phoenix ISR Project with Award of $16
Million Contract to Wood
In January 2024, Denison awarded a contract for approxim ately $16 million to Wood Canada Limited
(‘Wood’), for the completion of detailed design engineering for the In-Situ Recovery (‘ISR’) mining project
planned for the Phoenix uranium deposit (‘Phoenix’).
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Wood completed a Feasibility Study (‘Phoenix FS’) in 2023 to evaluate the use of the ISR mining method
at Phoenix, the results of which reflected several years of technical de-risking efforts successfully
completed by Denison and demonstrated robust ec onomics. Following completion of the Phoenix FS,
Denison's Board of Directors approved the continua tion of efforts to advance Phoenix towards a final
investment decision (‘FID’) and, in late 2023, the Management Committee of the Wheeler River Joint
Venture approved a budget for the applicable 2024 expenditures, including detailed engineering design.
The scope of the facilities to be designed by Wood under the contract is extensive, with work commencing
in the first quarter of 2024 and potentially extending into the first half of 2025.
Announcement of Planned Restart of McClean Lake Mining Operations
In January 2024, Orano Canada Inc. (‘Orano Cana da’) and Denison announced the planned restart of
uranium mining operations on the McClean Lake property. Mining is expected to be carried out using the
joint venture's patented Surface Access Borehole Re source Extraction (‘SABRE’) mining method and is
planned to commence at the McClean North deposit in 2025. Activities in 2024 are intended to be focused
on completing the preparations nece ssary to ready the existing SABRE mining site and equipment for
continuous commercial operations, as well as the installation of eight pilot holes for the first mining cavities
planned for excavation. The approved budget for this work in 2024 is $7.0 million (100% basis).
Approximately 800,000 pounds U 3O8 (100% basis) are targeted for production from McClean North in
2025, with approximately 3,000,000 pounds U 3O8 (100% basis) identified for potential additional
production from a combination of the McClean North and Caribou deposits during the years 2026 to 2030.
Signing of Sustainable Communities Investment Agreement
In March 2024, Denison signed a Sustainable Communities Investment Agreement with the municipalities
of the Northern Village of Beauval, t he Northern Village of Île-à-la Cros se, the Northern Hamlet of Jans
Bay, and the Northern Hamlet of Cole Bay (the ‘Communities’).
The agreement with the Communities establishes commitments of Denison in support of community
development initiatives, with consideration toward s contributing to the current and future economic
prosperity and sustainability of the Communities by promoting economic development and investments
in capital projects, job creation and training, housing, education, and other initiatives.
As part of the agreement, the Communities have provided their consent and support for the Wheeler
River project and have committed, amongst other things , to support all regulatory approvals issued for
the project related to exploration, evaluation, development, operation, reclamation, and closure activities.
Acquisition of MaxPERF Tool Systems
In February 2024, the Company announced an acquisition of fixed and mobile MaxPERF Tool Systems
from Penetrators Canada Inc. (‘Penetrators’). T he MaxPERF Tool Systems have been successfully
deployed several times as a method of permeability enhancement in ISR field studies conducted on the
Company’s potential ISR mining projects, including at Phoenix. Penetrators has also agreed to work
exclusively with Denison for a 10-year period with respect to the use of the MaxPERF Tool Systems for
uranium mining applications, and related services, in Saskatchewan.
Sale of Uranium
In April 2024, Denison completed the sale of 100,000 pounds of U3O8 from its physical uranium holdings,
at a price of US$100.00 per pound. The sale was agreed in January 2024, and is part of the Company’s
plans to sell approximately 300,000 pounds U 3O8 from its physical uranium holdings during 2024.
Denison acquired its physical uranium position in 2021 at an average cost of US$29.65 per pound U3O8.
Earn-In Agreement with Grounded Lithium Corp.
In January 2024, Denison entered into an agreement with Grounded Lithium Corp. (‘Grounded Lithium’)
to acquire up to a 75% interest in the Kindersley Lithium Project (‘KLP’) in Saskatchewan. The agreement
includes a series of earn-in options, with each ear n-in option requiring a cash payment to Grounded
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Lithium as well as work expenditures to advance the KLP. Should Denison complete all three earn-in
options, it will have made cumulative cash payments to Grounded Lithium of $3.2 million and have funded
$12.0 million in project expenditures to earn a 75% interest in the KLP. The Company is currently
evaluating its 2024 plans and will update its outlook for the year once the plan has been finalized.
About Denison
Denison Mines Corp. was formed under the laws of Ontario and is a reporting issuer in all Canadian
provinces and territories. 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’.
Denison is a uranium mining, exploration and development company with interests focused in the
Athabasca Basin region of northern Saskatchewan, Canada. The Company has an effective 95% interest
in its flagship Wheeler River Uranium Project, which is the largest undeveloped uranium project in the
infrastructure rich eastern portion of the Athabasca Basin region of northern Saskatchewan. In mid-2023,
the Phoenix FS was completed for the Phoenix deposit as an ISR mining operation, and an update to the
previously prepared 2018 Pre-Feasibility Study (‘PFS’) was completed for Wheeler River’s Gryphon deposit
as a conventional underground mining operation. Based on the respective studies, both deposits have the
potential to be competitive with the lo west cost uranium mining operations in the world. Permitting efforts
for the planned Phoenix ISR operation commenced in 2019 and have advanced significantly, with licensing
in progress and a draft Environmental Impact Study (‘EIS’) submitted for regulatory and public review in
October 2022.
Denison’s interests in Saskatchewan also include a 22.5% ownership interest in the McClean Lake Joint
Venture (‘MLJV’), which includes unmined uranium deposits (planned for extraction via the MLJV’s SABRE
mining method starting in 2025) and the McClean Lake uranium mill (currently utilizing a portion of its
licensed capacity to process the ore from the Cigar Lake mine under a toll milling agreement), plus a 25.17%
interest in the Midwest Joint Venture (‘MWJV’)’s Midwest Main and Midwest A deposits, and a 69.35%
interest in the Tthe Heldeth Túé (‘THT’) and Huskie deposits on the Waterbury Lake Property (‘Waterbury’).
The Midwest Main, Midwest A, THT and Huskie deposits are located within 20 kilometres of the McClean
Lake mill. Taken together, the Comp any has direct ownership interest s in properties covering ~384,000
hectares in the Athabasca Basin region.
Additionally, through its 50% ownership of JCU (Cana da) Exploration Company, Limited (‘JCU’), Denison
holds additional interests in various uranium project joint ventures in Canada, including the Millennium
project (JCU, 30.099%), the Kiggavik project (JCU, 33.8118%) and Christie Lake (JCU, 34.4508%).
In 2024, Denison is celebrating its 70th year in uranium mining, exploration, and development, which began
in 1954 with Denison’s first acquisition of mining claims in the Elliot Lake region of northern Ontario.
Technical Disclosure and Qualified Person
The technical information contained in this press release has been reviewed and approved by Chad Sorba,
P.Geo., Denison’s Vice President Technical Services & Project Evaluation, and Andy Yackulic, P.Geo.,
Denison’s Vice President Exploration, who are both Qualified Persons in accordance with the requirements
of NI 43-101.
For more information, please contact
David Cates (416) 979-1991 ext. 362
President and Chief Executive Officer
Geoff Smith (416) 979-1991 ext. 358
Vice President Corporate Development & Commercial
Follow Denison on Twitter @DenisonMinesCo
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CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
Certain information contained in this pre ss release constitutes ‘forward-looking info rmation’, within the meaning of the applic able
United States and Canadian legislation conc erning the business, operations and financ ial performance and condition of Denison.
Generally, these forward-looking statements c an be identified by the use of forward-look ing terminology such as ‘plans’, ‘expects’,
‘budget’, ‘scheduled’, ‘estimates’, ‘forecasts’, ‘intends’, ‘anticipates’, or ‘believes’, or the negatives and/or variations of such words and
phrases, or state that certain actions, events or results ‘may’, ‘could’, ‘would’, ‘might’ or ‘will be taken’, ‘occur’, ‘be achieved’ or ‘has
the potential to’.
In particular, this press release contains forward-looking information pertaining to the following: projections with respect to exploration,
development and expansion plans and objectives, including the scope, objectives and in terpretations of FS, PFS and the Wheeler
River technical de-risking process for the proposed ISR operati on for the Phoenix deposit; expectati ons with respect to the EA and
EIS; expectations regarding the restart of mining operations at McClean Lake; Denison’s plans with respect to its physical uran ium
holdings; expectations regarding the performance of the uranium market and global sentiment regarding nuclear energy; expectations
regarding Denison’s joint venture ownership interests; and expectations regarding the continuity of its agreements with third p arties.
Statements relating to ‘mineral reserves’ or ‘mineral resources’ are deemed to be forward-looking information, as they involve the
implied assessment, based on certain estimates and assumptions that the mineral reserves and mineral resources described can be
profitably produced in the future.
Forward looking statements are based on the opinions and estimates of management as of the date such statements are made, and
they are subject to known and unknown risks, uncertainties and other factors that may c ause the actual results, level of activi ty,
performance or achievements of Denison to be materially different from those expre ssed or implied by such forward-looking
statements. For example, the results and underlying assumptions and interpretations of the FS and PFS may not be maintained after
further testing or be representative of actual conditions within the applicable deposits. In addition, Denison may decide or o therwise
be required to discontinue testing, evaluati on, engineering, and development work if it is unable to maintain or otherwise secu re the
necessary approvals or resources (such as testing facilities, capital funding, etc.). Denison believes that the expectations reflected in
this forward-looking information are reasonable, but no assurance can be given that these expectations will prove to be accurate and
results may differ materially from those anticipated in this fo rward-looking information. For a discussion in respect of risks and other
factors that could influence forward-looking events, please refer to the factors discu ssed in the Company’s Annual Information Form
dated March 28, 2024 under the heading ‘Risk Factors’. These factors are not, and should not be, construed as being exhaustive.
Accordingly, readers should not place undue re liance on forward-looking statements. The forward-looking information contained i n
this press release is expressly qualified by this cautionary statement. Any forward-looking information and the assumptions made with
respect thereto speaks only as of the date of this press release. Denison does not undertake any obligation to publicly update or revise
any forward-looking information after the date of this press rel ease to conform such information to actual results or to change s in
Denison's expectations except as otherwise required by applicable legislation.