Denison Reports Strong Operational and Financial Results for 2021 Backed by Improving Uranium Market and $41.4 million gain on Physical Uranium Holdings
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Denison Mines Corp.
1100 – 40 University Ave
Toronto, ON M5J 1T1
www.denisonmines.com
PRESS RELEASE
Denison Reports Strong Operational and Financial Results for 2021
Backed by Improving Uranium Market and $41.4 million gain
on Physical Uranium Holdings
Toronto, ON – March 3, 2022. Denison Mines Corp. (‘Denison’ or the ‘Company’) (TSX: DML, NYSE American: DNN)
today filed its Audited Consolidated Financial Statements and Management’s Discussion & Analysis (‘MD&A’) for the
year ended December 31, 2021. Both documents will be available on the Company’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. The Company’s results
are highlighted by earnings attributable to Denison shareholders of $0.02 per share for the year ended December 31,
2021. All amounts in this release are in Canadian dollars unless otherwise stated.
David Cates, President and CEO of Denison commented, "Our results from 2021 reflect a significant improvement in
the uranium market, as well as continued operational pr ogress advancing Wheeler River’s Phoenix uranium deposit
(‘Phoenix’) towards a development decision.
Less than twelve months ago, Denison completed a novel pr oject financing initiative in support of the future
development of the Wheeler River project, in volving the purchase of 2.5 million pounds U 3O8 in physical uranium
holdings at an average cost of US$29.66/lb U3O8. The financing was designed to position our shareholders to benefit
from the additional financial stability of our uranium holdings, while remaining fully leveraged to any future appreciation
of uranium prices that might occur prior to the completion of a projec t financing for Wheeler River. Since then, the
uranium spot market has improved considerably, with continued support from financial investors, leading to a significant
increase in the spot price in 2021 and a $41.4 million gain on Denison’s physical uranium holdings.
The improvement in the spot price was not only positive for Denison’s balance sheet, but it also appears to have
catalyzed further fundamental development s in the long-term supply market. We have seen nuclear utilities seek to
address significant future uncovered requirements in an envir onment with reduced visibility to available sources of
supply – leading to increased long-term contracting activity and prices. Combined with positive demand signals coming
from a growing chorus of support for the cr itical role nuclear must play in the clean energy transition, the narrative for
the development of new top tier new uranium mining projects has become quite positive.
Now several years into Denison’s long-term plan for the advancement of Wheeler River, our Company is uniquely
aligned with the improving uranium market, as we continue to successfully demonstrate the potential for the Phoenix
deposit to emerge as the first In-Situ Recovery (‘ISR’) uranium mine in the Athabasca Basin region. Our de-risking
efforts at Phoenix have involved extensive field and laborator y testing since completion of the Pre-Feasibility Study in
2018, which to date culminated in the completion of the installation and field testing of a 5-spot commercial-scale ISR
test pattern in 2021. The field test was highly successful and confirmed key technical assumptions made in the PFS.
Taken together with our positive metall urgical results, our work in 2021 has demonstrated tangible support for our
selection of the ISR mining method for Phoenix and our decision to initiate a formal Feasibility Study.
Our plans for 2022 are ambitious – with a primary focus on driving towards the completi on of key technical and
regulatory milestones for Wheeler River, while also suppor ting a secondary focus of unlocking value from Denison’s
vast project portfolio, including continued exploration amongst our many highly-prospective property interests, and the
initial evaluation of potential development plans for both the Midwest and McClean Lake projects.”
Highlights
Completed highly successful ISR Field Tests at Phoenix, resulting in significant de-risking and supporting
the decision to advance to a formal Feasibility Study (‘FS’)
The Company continued its syst ematic approach to de-risking the technical risks identified for the ISR mining
operation for Phoenix at the Wheeler River Uranium Project (‘Wheeler River’), following completion of the 2018 Pre-
Feasibility Study (‘PFS’). Notably, in 2021 the Company completed a highly successful ISR field test program
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including the installation and testing of a pattern of five co mmercial scale wells (‘CSWs’). The results from the field
test were highlighted by the following:
Achieved commercial-scale production flow rates consistent with those assumed in the PFS;
Demonstrated hydraulic control of inject ed solution during an ion tracer test;
Established breakthrough times between injection and re covery wells consistent with previously prepared
estimates; and
Demonstrated the ability to re mediate the five-spot CSW test pattern (‘Test Pattern’).
Additionally, positive results from ongoing metallurgical test work supported the decision to increase the anticipated
ISR mining head-grade for Phoenix by 50%.
Given consistently positive results fr om field testing and laboratory testing, Denison and the Wheeler River Joint
Venture approved the initiation of t he formal FS report process for the Phoenix ISR project, and appointed Wood
PLC as independent lead author of the FS.
Secured funding to complete the Environmental Assessment (‘EA’) and FS process for Wheeler River
Denison completed a series of equity financings during 2021 intending to fund the EA and FS processes for Wheeler
River. These financings raised gross proceeds of $48.2 million (including $11.9 million from At-the-Market offerings)
from the issuance of 39.7 million common shares and 15.8 million common share purchase warrants. Based on
current estimates, the net proceeds from these financings are expected to be sufficient to fund the completion of the
FS and EA processes for Wheeler River.
Executed a Wheeler River project financing initiative involving the strategic acquisition of physical uranium
and recorded significant uranium investment gains
In March 2021, Denison successfully completed a public o ffering of units for gross proc eeds of $107.9 million. The
majority of the net proceeds of the offering were used to fund the strategic purchase of 2.5 million pounds of uranium
concentrates (‘U3O8‘) at a weighted average price of US$29.66 per pound U3O8. The uranium is being held by Denison
as a long-term investment, which is intended to support the potential future financing of the advancement and/or
construction of Wheeler River.
The uranium spot price apprec iated to US$42.00 per pound U 3O8 by December 31, 2021, resulting in a fair value
gain on the Company’s physical uranium holdings of $41,440,000 for the year ended December 31, 2021.
Obtained funding for high-potential exploration programs in 2021 and 2022
The Company raised gross proceeds of $8.0 million in March 2021, from the issuance of common shares on a flow-
through basis, to fund eligible Canadian exploration activities in 2021 and 2022.
Acquired 50% of JCU (Canada) Exploration Company, Limited (‘JCU’) for $20.5 million
In August 2021, Denison completed the acquisition of 50% of JCU from UEX Corporation (‘UEX’) for cash
consideration of $20.5 million follow ing UEX’s acquisition of 100% of J CU from Overseas Uranium Resources
Development Co., Ltd. for $41 million. JCU holds a portfolio of 12 uranium project joint venture interests in Canada,
including a 10% interest in Wheeler River, a 30.099% in terest in the Millennium project (Cameco Corporation,
69.901%), a 33.8123% interest in the Kiggavik project (Orano Canada Inc., 66.1877%), and a 34.4508% interest in
the Christie Lake project (UEX, 65.5492%).
Advanced actions to support reconciliation with Indigenous peoples
Denison formally adopted an Indigenous People’s Policy (‘IPP’) in 2021, which reflects the Company’s recognition
of the important role of Canadian busin ess in the process of reconciliation with Indigenous peoples in Canada and
outlines the Company’s commitment to take action towards advancing reconciliation.
Also in 2021, the Company entered into a Participation and Funding Agreement and Letter of Intent with the English
River First Nation (‘ERFN’) in connection with the advancement of the proposed ISR operation at Wheeler River, as
well as an Exploration Agreement in respect of Denison’ s exploration and evaluation ac tivities within the ERFN
traditional territories. These agreements reflect Denison’ s desire to operate its business in a progressive and
sustainable manner that respects ERFN rights and advances reconciliat ion with Indigenous peoples. The
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agreements provide ERFN with economic opportunities an d other benefits, and establish a foundation for future
collaboration in an authentic, cooperative, and respectful way.
Discovery of high-grade uranium outside of the Phoenix Zone A high-grade domain
Drill hole GWR-045, completed as part of the ISR field test program as a monitoring well to the northwest of the CSW
Test Pattern, was, based on the mineral resources currently estimated for Phoenix, expected to intersect low grade
uranium mineralization on the northwest margin of the deposit. The drill hole, however, intersected a thick interval of
high-grade unconformity-associated uranium mineralization grading 22.0% eU3O8 over 8.6 metres. Follow up drilling
returned multiple additional intersections of high-grade uranium mineralization, including 24.9% eU 3O8 over 4.2
metres in drill hole GWR-049. Taken t ogether, these results are expected to expand the volume of the high-grade
domain to the northwest in the Phase 1 area of Phoenix Zone A.
Sold shares and warrants in GoviEx Uranium Limited (‘GoviEx’) for proceeds of up to $41.6 million
In October 2021, the Company sold 32,500,000 common shares of GoviEx, previously held by Denison for investment
purposes, and 32,500,000 common share purchase warrants, entitling the holder to acquire one additional common
share of GoviEx owned by Denison at an exercise price of $0.80 for a term of up to 18 months (the ‘GoviEx Warrants’).
Denison received gross proceeds of $15, 600,000 on the sale of the shares and warrants and continues to hold
32,644,000 common shares of GoviEx. If the GoviEx Warrants are exercised in full, Denison will receive further gross
proceeds of $26,000,000 and will transfer a further 32,500,000 GoviEx common shares to the warrant holders.
Received $5.8 million in connection with the conversion of Uranium Participation Corporation (‘UPC’) into
the Sprott Physical Uranium Trust
In April 2021, UPC announced that it had reached an agreement with Sprott Asset Management LP (‘Sprott’) for the
Sprott Physical Uranium Trust to acquire UPC (the ‘UPC Transaction’). Upon completion of the UPC Transaction on
July 19, 2021, Sprott became the manager of the Sprott Physical Uranium Trust, and the management services
agreement (‘MSA’) between Denison and UPC was terminated. In accordance with the terms of the MSA, Denison
received a cash payment of approximately $5.8 million in connection with the termination.
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 To ronto Stock Exchange (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 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. A PFS was completed for Wheeler River in late 2018, considering the potential
economic merit of developing Phoenix as an ISR operatio n and the Gryphon deposit as a conventional underground
mining operation. Denison's interests in Saskatchewan al so include a 22.5% ownership interest in the McClean Lake
Joint Venture, which includes several uranium deposits an d the McClean Lake uranium m ill, which is contracted to
process the ore from the Cigar Lake mine under a toll mi lling agreement (see RESULTS OF OPERATIONS below for
more details), plus a 25.17% interest in the Midwest Main and Midwest A deposits and a 66.90% interest in the Tthe
Heldeth Túé (‘THT,’ formerly J Zone) and Huskie deposits on the Waterbury Lake property. The Midwest Main, Midwest
A, THT and Huskie deposits are located within 20 kilometres of the McClean Lake mill.
Through its 50% ownership of JCU, Denison holds additional in terests in various uranium project joint ventures in
Canada, including the Millennium project (JCU, 30.099%), t he Kiggavik project (JCU, 33. 8123%) and Christie Lake
(JCU, 34.4508%).
Denison’s exploration portfolio includes further interests in properties covering approximately 297,000 hectares in the
Athabasca Basin region.
Denison is also engaged in mine decommissioning and environmental services through its Closed Mines group, which
manages Denison’s Elliot Lake reclamation projects and provides third-party post-closure mine care and maintenance
services.
Prior to July 19, 2021, Denison also served as the manager of UPC, a publicly traded company listed on the TSX that
invested in U3O8 and uranium hexafluoride (‘UF6’). In April 2021, UPC announced that it had entered into an agreement
with Sprott to convert UPC into the Sprott Physical Uranium Trust. This transaction closed on July 19, 2021, and the
MSA between Denison and UPC was terminated.
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Technical Disclosure and Qualified Person
The technical information contained in this press release has been reviewed and approved by David Bronkhorst, P.Eng,
Denison's Vice President, Operations and/or Andrew Yackulic, P. Geo, Denison's Director, Exploration, each of whom
is 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
Mac McDonald (416) 979-1991 ext. 242
Exec. Vice President & Chief Financial Officer
Follow Denison on Twitter @DenisonMinesCo
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 concerning the business, operations and financial 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 plans and objectives for Wheeler Ri ver and the related evaluation
field program activities and expl oration objectives; the interpretation of the re sults of the ISR field test, metallurgical and other
assessment and de-risking activities at Wheeler River; the interpretation of the results of its exploration drilling programs; plans and
objectives for the feasibility study and agreem ents with third parties related thereto; its use of proceeds of recent financing s; its
investments in uranium; the estimates of Denison's mineral reserv es and mineral resources or resu lts of exploration; expectatio ns
regarding Denison’s joint venture ownership interests; expectations regarding the co ntinuity of its agreements with third parti es; and
its interpretations of, and expectations for, nuclear energy and uranium demand. Statements relating to ‘mineral reserves’ or ‘mineral
resources’ are deemed to be forward-looking information, as they involve the impli ed 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 PFS as well as de-risking efforts such as
the ISR field programs discussed herein may not be maintained afte r further testing or be represent ative of actual conditions w ithin
the applicable deposits. In addition, Denis on may decide or otherwise be required to extend the EA and/or the FS and/or otherw ise
discontinue testing, evaluation a nd development work if it is unable to maintain or otherwise secure the necessary approvals or
resources (such as testing facilities, capi tal funding, etc.). Denison believes that the expectations reflected in this forwar d-looking
information are reasonable, but no assurance can be given that th ese expectations will prove to be accurate and results may dif fer
materially from those anticipated in this forward-looking information. For a discussi on in respect of risks and other factors t hat could
influence forward-looking events, please refer to the factors discussed in Denison’s Management’s Discussion & Analysis for the year
ended December 31, 2021 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.
Cautionary Note to United States Investors Concerning Estimates of Mineral Resources and Mineral Reserves: This press
release may use terms such as “measured”, “indicated” and/or “inferred” mineral resources and “proven” or “probable” mineral
reserves, which are terms defined with reference to the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum
(“CIM”) CIM Definition Standards on Mineral Resources and Mineral Reserves (“CIM Standards”). The Company’s descriptions of its
projects using CIM Standards may not be compar able to similar information made public by U.S. companies subject to the reportin g
and disclosure requirements under the United States federal securities laws and the rules and regulations thereunder. United States
investors are cautioned not to assume that all or any part of measured or indicated mineral resources will ever be converted
into mineral reserves. United States investors are also cautioned not to assume that all or any part of an inferred mineral
resource exists, or is economically or legally mineable.