Denison Reports Results from Q1 2020
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Denison Mines Corp.
1100 – 40 University Ave
Toronto, ON M5J 1T1
www.denisonmines.com
PRESS RELEASE
DENISON REPORTS RESULTS FROM Q1 2020
Toronto, ON – May 6, 2020. Denison Mines Corp. (“Denison” or the “Company”) (DML: TSX, DNN: NYSE MKT)
today filed its Consolidated Financial Statements and Managemen t’s Discussion & Analysis (“MD&A”) for the quarter
ended March 31, 2020. Both documents can be found on the Compa ny’s website at www.denisonmines.com or on
SEDAR (at www.sedar.com) 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, “During the first quarter of 2020, Denison announced several
positive developments related to the application of the In-Situ Recovery (‘ISR’) mining method at the Company’s 90%
owned Wheeler River uranium project. These results have increased our technical confidence in advancing the Phoenix
deposit as the Athabasca Basin’s first ISR uranium development project. Unfortunately, also during the first quarter,
the significant social and economic disruptions created by the COVID-19 pandemic necessitated that Denison suspend
the Wheeler River Environmental Assessment (‘EA’) and certain other activities planned for Wheeler River in 2020.
While we are disappointed to pause the EA process, we our proud of our swift action to ensure employee safety,
support public health efforts to limit transmission of COVID-19, and exercise prudent financial discipline.
An important element of our approach to the temporary suspension is the retention of all senior technical and supporting
staff involved in the advancement of Wheel er River. With our project development team in-tact during this time, we
have developed work plans that are financ ially prudent and designed to make the most of this interim opportunity to
organize our efforts so that we can quickly resume activity in support of the advancement of Phoenix, once determined
appropriate.
In recent days we have learned more about the troubling out-break of COVID-19 in northern Saskatchewan. Denison
was a first mover in supporting several communities in northern Saskatchewan – with both financial support and the
procurement and distribution of critical preventative health supplies, including nearly 1,000 litres of hand sanitizer, soap,
and other essential hygiene supplies. No rthern Saskatchewan communities are resilient, and we are continuing to
actively support community-led COVID-19 response initiatives that are foundational to achieving success against these
outbreaks and ensure the protection of Northern Saskatchewan citizens.”
HIGHLIGHTS
Temporary suspension of Wheeler River Environmental Assessment (‘EA’) amidst COVID-19 disruptions
In March 2020, in light of the significant social and economic disruption that has emerged as a result of the COVID-
19 pandemic and in line with the Company's commitment to ensure employee safety, support public health efforts to
limit transmission of COVID-19, and in order to exercise prudent financial discipline, Denison announced the decision
to suspend the EA process and certain other activities planned at Wheeler River for 2020. The decision to temporarily
suspend the EA process is expected to impact the project development schedule outlined in the Pre-Feasibility Study
(‘PFS’) for Wheeler River, though the extent of any such impact is currently unknown.
Successful completion of equity financing to provide ongoing funding for business activities
In April 2020, Denison successfully completed a public offering of 28,750,000 common shares at a price of USD$0.20
per common share for gross proc eeds of $8,041,000 (USD$5,750,00 0), which includes the full exercise of the
overallotment option of 3,750, 000 common shares. The estimated net proceeds of $6,800,000 are expected to be
used to fund the Company’s business activities for the remainder of 2020 and into 2021.
Uranium concentrations from initial core leach tests reported u p to four times the amount assumed in PFS
for Phoenix In-Situ Recovery (‘ISR’) operation
In December 2019, Denison announc ed the initiation of the next phase of ISR metallurgical laboratory testing for
uranium recovery, which will utilize mineralized drill core recovered through the installation of various test wells during
the 2019 ISR field test program. The metallurgical laboratory test program builds upon the laboratory tests completed
for the recovery of uranium as part of the project’s PFS and is expected to further inc rease confidence and reduce
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risk associated with the applicat ion of the ISR mining method a t the Phoenix deposit. The results are expected to
facilitate detailed mine and proc ess plant planning as part of a future Feasibility Study (‘FS’), and will provide key
inputs for the EA process. Signi ficant components of the metall urgical laboratory test pr ogram include core leach
tests, column leach tests, bench-scale tests and metallurgical modelling.
In February 2020, Denison reported that initial data from core leach tests includes the recovery of elemental uranium
concentrations, after test startup, in the range of 13.5 grams per litre (‘g/L’) to 39.8 g/L, with an average of 29.8 g/L
over 20 days of testing (see Denison’s press release dated Febr uary 19, 2020). This compares favourably to the
previous metallurgical test work completed to assess the use of the ISR mining method at Phoenix – which supported
a uranium concentration of 10 g/L for the ISR processing plant design used in the PFS.
Ability to achieve hydraulic conductivity values consistent with PFS confirmed by results from 2019 ISR field
test at Phoenix
Extensive hydrogeological data was collected during the 2019 IS R field program to be incorporated into a
hydrogeological model for Phoenix. In February 2020, Denison reported that the results from the hydrogeological test
work completed to-date have conf irmed the ability to achieve bu lk hydraulic conductivity values (a measure of
permeability) consistent with the PFS (see Denison press release dated February 24, 2020).
About Wheeler River
Wheeler River is the largest undeveloped uranium project in the infrastructure rich eastern portion of
the Athabasca Basin region, in nor thern Saskatchewan and is a j oint venture between Denison (90% and operator)
and JCU (Canada) Exploration Company Limited (10%). The projec t is host to the high-grade Phoenix and Gryphon
uranium deposits, discovered by Denison in 2008 and 2014, respe ctively, estimated to have combined Indicated
Mineral Resources of 132.1 million pounds U3O8 (1,809,000 tonnes at an average grade of 3.3% U3O8), plus combined
Inferred Mineral Resources of 3.0 million pounds U3O8 (82,000 tonnes at an average grade of 1.7% U3O8).
A pre-feasibility study (‘PFS’) w as completed in late 2018, con sidering the potential eco nomic merit of developing
the Phoenix deposit as an ISR operation and the Gryphon deposit as a conventional underground mining
operation. Taken together, the project is estimated to have mi ne production of 109.4 million pounds U 3O8 over a 14-
year mine life, with a base cas e pre-tax net present value (‘NP V’) of $1.31 billion (8% discount rate), Internal Rate of
Return ("IRR") of 38.7%, and initial pre-production capital exp enditures of $322.5 million. The Phoenix ISR operation
is estimated to have a stand-alone base case pre-tax NPV of $930.4 million (8% discount rate), internal rate of return
(‘IRR’) of 43.3%, initial pre-production capital expenditures o f $322.5 million, and industry leading average operating
costs of US$3.33/lb U3O8. The PFS was prepared on a project (100% ownership) and pre-t ax basis, as each of the
partners to the Wheeler River Joint Venture are subject to different tax and other obligations.
Further details regarding the PFS, including additional scienti fic and technical information, as well as after-tax results
attributable to Denison's ownership interest, are described in greater detail in the NI 43-101 Technical Report titled
"Pre-feasibility Study for the Wheeler River Uranium Project, Saskatchewan, Canada" dated October 30, 2018 with an
effective date of September 24, 2018. A copy of this report is available on Denison's website and under its profile on
SEDAR at www.sedar.com and on EDGAR at www.sec.gov/edgar.shtml.
Given recent social, financial and market disruptions, Denison has suspended certain activities at Wheeler River,
including the EA program, which is on the critical path to achi eving the project development schedule outlined in the
PFS. Given the uncertainty associated with the duration of suspension, the Company is not currently able to estimate
the impact to the project devel opment schedule outlined in the PFS, and users are cautioned against relying on the
estimates provided therein regarding the start of pre-production activities in 2021 and first production in 2024.
About Denison
Denison Mines Corp. was formed under the laws of Ontario and is a reporting issuer in all Canadian provinces.
Denison’s common shares are list ed on the Toronto Stock Exchang e (the ‘TSX’) under the symbol ‘DML’ and on the
NYSE American exchange under the symbol ‘DNN’.
Denison is a uranium exploration and development company with i nterests focused in the Athabasca Basin region of
northern Saskatchewan, Canada. The Company’s flagship project i s the 90% owned Wheeler River Uranium Project.
Denison's interests in Saskatchewan also include a 22.5% owners hip interest in the McClean Lake Joint Venture
(‘MLJV’), which includes several uranium deposits and the McCle an Lake uranium mill, which is currently processing
ore from the Cigar Lake mine under a toll milling agreement, pl us a 25.17% interest in the Midwest deposits and a
66.57% interest in the J Zone and Huskie deposits on the Waterb ury Lake property. The Midwest, J Zone and Huskie
deposits are located within 20 kilometres of the McClean Lake m ill. In addition, Denison has an extensive portfolio of
exploration projects in the Athabasca Basin region.
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Denison is engaged in mine decommissioning and environmental se rvices through its Closed Mines group (formerly
Denison Environmental Services), which manages Denison’s Elliot Lake reclamation projects and provides post-closure
mine and maintenance services to a variety of industry and government clients.
Denison is also the manager of Uranium Participation Corporation (‘UPC’), a publicly traded company listed on the TSX
under the symbol ‘U’, which invests in uranium oxide in concentrates (‘U3O8’) and uranium hexafluoride (‘UF6’).
Technical Disclosure and Qualified Person
The disclosure of scientific a nd technical information regardin g Denison’s material properties in this MD&A was
prepared by, or reviewed and approved by, Dale Verran, MSc, Pr.Sci.Nat., the Company’s Vice President Exploration,
or David Bronkhorst, P.Eng., t he Company’s Vice President Opera tions, each a Qualified Person 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
Sophia Shane (604) 689-7842
Investor Relations
Follow Denison on Twitter @DenisonMinesCo
CAUTIONARY STATEMENT REGARDING FORWARD‐LOOKING STATEMENTS
Certain information contained in this news release constitutes ‘forward-looking information’, within the meaning of the applicable United
States and Canadian legislation concerning the business, operations and financial performance and condition of Denison.
Generally, these forward-looki ng statements can be identified b y the use of forward-looking te rminology such as ‘plans’, ‘expe cts’,
‘budget’, ‘scheduled’, ‘estimates’, ‘forecasts’, ‘intends’, ‘anticipates’, or ‘believes’, or the negatives and/or variations of such words and
phrases, or state that certain a ctions, events or results ‘may’ , ‘could’, ‘would’, ‘might’ or ‘will be taken’, ‘occur’, ‘be ac hieved’ or ‘has
the potential to’.
In particular, this news release contains forward-looking infor mation pertaining to the following: exploration, development an d
expansion plans and objectives, including the results of, and estimates and assumptions within, the PFS, the plans and objectives for
ISR and the related field and hydrogeological testing results, plans and objectives; the suspens ion of EA activities and antic ipated
results of such suspension; the impact of COVID-19 on Denison’s operations; expectations regar ding environmental and regulator y
standards and permitting processes; the estimates of Denison's mineral reserves and mineral resour ces; plans for any FS, and a ny
work to be undertaken in respect thereto; expectations regardin g Denison’s joint venture owner ship interests; and expectations
regarding the continuity of its agreements with third parties. 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 unk nown risks, uncertainties and other factors that may cause the actual results, level of activ ity,
performance or achievements of Denison to be materially differe nt from those expressed or imp lied by such forward-looking
statements. For example, the results and underlying assumptions and interpretations of the PFS as well as the ISR field test a nd
hydrogeological test programs discussed herein may not be maintained after further testing or be representative of actual cond itions
within the Phoenix deposit. In addition, Denison may decide or otherwise be required to extend the EA and/or otherwise discontinue
testing, evaluation and development work at Wheeler River, and may not complete a FS, if it is unable to maintain or otherwise secure
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 assu rance can be given that these ex pectations will prove to be acc urate
and results may differ materially from those anticipated in thi s forward-looking information. For a discussion in respect of r isks and
other factors that could influence forward-looking events, please refer to the factors discussed in Denison’s Annual Information Form
dated March 13, 2020 under the heading ‘Risk Factors’. These factors are not, and should not be construed as being exhaustive.
Accordingly, readers should not place undue reliance on forward -looking statements. The forward- looking information contained in
this news 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 news release. Denison does not undertake any obligation to publicly update or revise
any forward-looking information after the date of this news rel ease to conform such information to actual results or to change s in
Denison's expectations except as otherwise required by applicable legislation.
Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and Inferred Mineral Resources
and Probable Mineral Reserves: This MD&A may use the terms 'measured', 'indicated' and 'inferr ed' mineral resources. United
States investors are advised that while such terms have been prepared in accordance with the definition standards on mineral reserves
of the Canadian Institute of Mining, Metallurgy and Petroleum referred to in Canadian National Instrument 43-101 Mineral Disclosure
Standards (‘NI 43-101’) and are recognized and required by Canadian regulations, these terms are not defined under Industry Guide
7 under the United States Securities Act and, until recently, have not been permitted to be used in reports and registration statements
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filed with the United States Securities and Exchange Commission (‘SEC’). 'Inferred mineral resources' have a great amount of
uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred
mineral resource will ever be upgraded to a higher category. Un der Canadian rules, estimates of inferred mineral resources may not
form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part
of measured or indicated mineral resources will ever be convert ed into mineral reserves. United States investors are also
cautioned not to assume that all or any part of an inferred min eral resource exists, or is economically or legally mineable.
In addition, the terms “mineral reserve”, “proven mineral reserve” and “probable mineral reserve” for the purposes of NI 43-10 1 differ
from the definitions and allowable usage in Industry Guide 7. Effective February 2019, the SEC adopted amendments to its disclosure
rules to modernize the mineral pr operty disclosure requirements for issuers whose securities are registered with the SEC under the
Exchange Act and as a result, the SEC now recognizes estimates of “measured mineral resources”, “indicated mineral resources”
and “inferred mineral resources”. In addition, the SEC has amended its definitions of “proven mineral reserves” and “probable mineral
reserves” to be “substantially similar” to the corresponding de finitions under the CIM Standards , as required under NI 43-101.
However, information regarding mi neral resources or mineral res erves in Denison’s disclosure may not be comparable to similar
information made public by United States companies.