enCore Energy Provides Update on Major Reductions in Uranium Supply
NEWS RELEASE 20-05
TSX.V: EU
April 20th, 2020
www.encoreenergycorp.com
enCore Energy Provides Update on Major Reductions
in Uranium Supply
Vancouver, BC, April 20th, 2020: enCore Energy Corp. (TSX-V: EU) (OTCQB: ENCUF) (the "Company") is
pleased to provide an update on material developments affecting the uranium market and its
implications for the long-term outlook of the Company’s portfolio of significant U.S. uranium assets.
Highlights:
• About 50% of world mine uranium production has been halted and the spot price of uranium
has increased by +30% in less than a month;
• enCore is well positioned for rising prices with a portfolio of significant U.S. uranium projects,
including ISR amenable Sandstone-hosted resources, and high-grade Breccia Pipe properties;
• enCore’s management team has extensive experience in all phases of the nuclear fuel cycle; and
• enCore has a healthy treasury and no debt.
As a result of the ongoing COVID -19 pandemic, seven of the world’s ten largest uranium mines have
been temporarily halted, representing approximately 50% of global mine d supply(1). This major
reduction in mine supply has resulted from halted operations in Kazakhstan , Namibia and South Africa
while Cameco’s Cigar Lake Mine in Canada has been placed on extended care and maintenance.
The ultimate extent of supply reductions has yet to be determined but is expected to be significant.
With demand continuing at a steady rate , along with a reduction in mined supply, the Company
anticipates significant decline s in uranium inventories. Th is anticipated decline is likely to accelerate
rising prices in order to incentivize new source s of production. We have seen early indications of this
trend with prices for all forms of uranium and equivalents having increased substantially in recent
weeks. The uranium spot price has increased by over 30% to US ~ $32 per pound as of April 1 7, 2020
from US ~$24 per pound as of March 23, 2020.
The severity of current supply disruptions underscores the need for security of supply, a key driver
behind President Trump’s plan to establish a strategic domestic uranium reserve (See News Release
dated February 19, 2020). The Company is encouraged by the President's initial actions to reinvigorate
the domestic nuclear industry along with his continued emphasis on removing unnecessary regulations
and improving access to critical minerals on federal land.
enCore Energy’s Significant U.S. Uranium Portfolio
The Company is well positioned for higher prices with a portfolio of significant U.S. uranium projects.
The portfolio is highlighted by advanced -stage Crownpoint and Hosta Butte ISR project s, which hosts
Indicated Mineral Resources of 26.6 million pounds contained within 12.7 million tons grading 0.11%
eU308 and Inferred Mineral Resources of 6.1 million pounds contained within 2.8 million tons grading
0.11% eU308(2). Importantly, Crownpoint is permitted under a Nuclear Regulatory Commission License
to recover up to 3 million pounds per year.
The Company’s Marquez Project, a past-producing underground mine within the Grants M ineral Belt of
New Mexico, hosts another large uranium endowment. A 2010 NI 43-101 Technical Report documented
Measured and Indicated Mineral Resources of 9.1 million pounds contained within 3.6 million tons
grading 0.13% eU308, an Inferred Mineral Resource of 4.9 million pounds contained within 2.2 million
tons grading 0.11% eU308 at the project.*
Equally significant, t he Company holds a dominant land position within N orthern Arizona, the highest -
grade uranium district in the U.S. with an average recovered grade of over 0.60% U308, and located
within trucking distance to the only operating uranium mill in the U.S. The Company holds more than
80% of all current mineral claims within this district with 4 67 claims that together with state mineral
leases span more than 10,000 acres.
An innovative targeting approach using an airborne Versatile Time Domain Electromagnetic ( VTEM)
survey provided an exploration approach for evaluating the district as a whole and resulted in 145
validated targets within the Company’s land package. A total of nine targets have since been drilled with
eight having intersected significant mineralization, an 89% success ratio.
As reported by the U.S. Geological Survey, Northern Arizona B reccia Pipes are an important source of
uranium from both an economic and national security perspective . Increasing access to this large, high-
grade uranium endowment , which is now subjected to a temporary withdrawal dating from Obama
Administration, is consistent with President Trump’s stated goal of increasing access to critical minerals
on Federal lands while at the same time reinvigorating the domestic uranium mining industry.
In addition to a strong portfolio of properties, t he Company also controls a leading U .S. proprietary
database. The most recent additions are the Quaterra (Metamin U.S.) and the VANE Minerals (US) LLC
files with emphasis on the northern Arizona Breccia Pipe Distric t. This vast data collection includes the
Union Carbide worldwide database, the UV Industries database, the W. R. Grace uranium related files,
Uranium files from Federal Resources, Ranchers Exploration uranium files (Hecla), select Atlas files, and
a number of private collections and small partial collections from various companies.
A complete list of the Company’s U .S. uranium holdings with current and historic mineral resources can
be accessed by clicking here.
The enCore Team - A Proven Track Record in the Uranium Sector
The Company is led by a team of uranium experts with a proven ability to build value within the
domestic uranium sector. The enCore team was instrumental in advancing Energy Metals Corp. to
compile the largest domestic uranium base in U.S. history before the company was acquired for $1.8
billion during the last major uranium bull market.
This experience has allowed the Company to opportunistically navigate the difficult post-Fukushima
uranium market by selectively acquiring high -upside projects, maintaining low corporate expenditures
and a healthy treasury , which currently stands at over $3 million in cash with no debt . The team views
the ongoing supply disruptions, along with long-term increases in demand, as a bullish indicator for the
uranium market and the need for higher prices to incentivize new supply sooner rather than later.
William M. Sheriff, the Executive Chairman of enCore Energy, was a pioneer in the uranium renaissance
as co -founder and Chairman of Energy Metals Corp. He was responsible for compiling the largest
domestic uranium resource base in U .S. history before the company was acquired by Uranium One ,
where he continued to serve as a Director.
Dr. Dennis Stover, Chief Executive Officer, is a renowned uranium mining expert with a 40 -year career
focused on direct involvement with commercial uranium exploration, project development, and mining
operations. Dr. Stover served as Chief Operating Officer for Energy Metals Corp. and then as Executive
Vice President, Americas for Uranium One, Inc. where he oversaw commercial development of Uranium
One’s substantial U.S. uranium assets as well other uranium assets in the Americas.
Dr. Douglas Underhill, Chief Geologist, has 50 years of both domestic and international experience with
natural resource exploration, development and analysis, including 40 years with a specific emphasis on
uranium. For a decade , he served as the Uranium Resource and Production Specialist with the
International Atomic Energy Agency.
Richard Cherry, Board Member and a veteran nuclear industry executive, has worked for leading
companies in the areas of uranium mining, production, conversion, marketing and power generation
operations for 40 years. Mr. Cherry previously served as President and CEO of Cotter Corporation and
Nuclear Fuels Corporation, both affiliates of General Atomics Corporation, where he oversaw their
mining and milling operations in Colorado.
Mark Pelizza, Board Member and environmental expert, has spent 40 years in the uranium industry that
involved with numerous commercial U.S. ISR project. He was responsible for the permitting and
licensing of the Church Rock, Crownpoint and Unit 1 projects in New Mexico. His licensing efforts led to
the Company’s Crownpoint project receiving an NRC license. He previously served as Sr. Vice President
of Health, Safety and Environmental Affairs with Uranium Resources, Inc.
Eugene Spiering, Geologist, has over 30 years of experience including 10 years focused on uranium in
the U .S. Significantly, Mr. Spiering oversaw the application of VTEM aerial surveys to the Company’s
large land holdings in Northern Arizona and subsequent drilling that led to two new discoveries and
revolutionized the exploration approach for this district, with an 89% success rate.
Gordon R. Peake, Director of Lands, previously served as Vice -Pre sident of Lands for Uranium One
Americas, Inc. from 2007 to 2010 and with Energy Metals Corporation (US) from 2004 until 2007. He
brings over 40 years of experience in natural resource exploration, development and production having
worked with major and junior mining companies
For a full list of the extensive team behind enCore Energy click here.
Nuclear Energy for the 21st Century
Nuclear power is an important part of the global energy mix and currently provides nearly 20% of all
electricity generated i n the U .S. and 55% of emission -free power, far more than wind and solar
combined. With an increasing global recognition on the importance of reducing carbon emissions while
at the same time meeting the growing requirements for 24/7 baseload power, nuclear power is
essential for meeting both environmental and economic initiatives.
Ongoing global expansion, license extensions and new technological advancements are expanding long-
term demand. Russia, China and India continue to be an area of rapid growth. T hese three nations
collectively account more than 70% of all new construction. Even with China’s large -scale nuclear
buildout, nuclear is planned to meet only 4-5% of China’s electricity demands. By comparison, the U.S.
currently generates nearly 20%, indicating the potential for greater expansion of China’s nuclear
generating capacity.
The U .S. currently operates 96 nuclear power plants . In 2019 these plants generated a record 809
million megawatt-hours of electricity, the highest total since the birth of commercial nuclear power in
1957 while achieving a record -high 93 percent capacity. A total of 88 of the 96 reactors now have been
granted operating life extensions from 40 to 60 years. In December 2019, the Nuclear Regulatory
Commission granted the first-ever license extension to 80 years and subsequently again in March 2020.
The continued lifespan of these reactors, combined with a wor ld-class safety record, underscores the
ability for long-life power generation and continued demand. Two new state-of-the-art reactors are also
nearing completion in the state of Georgia.
New technological initiatives are providing new applications for nuclear power, improving the efficiency
of existing operations, and incorporating additional safety measures. Several accident-tolerant fuel rods
have been developed including Westinghouse’s EnCore fuel rods, now adopted in commercial
applications. Small modular reactors (SMR) are being rapidly advanced in the design and permitting
phase for widescale use and are attractive due to lower capital costs and the ability to operate in a
variety of locations. A number of other developments including modern reactor designs have the
potential to further increase demand well into the future.
Investment in Group 11 Technologies Inc.
The Company has also signed a Letter of Intent to establish Group 11 Technologies, a U.S. -based
technology firm pr imarily focused on non- invasive extraction technology utilizing environmentally
friendly liquids to recover gold and other metals. Encore will hold a 40% interest in Group 11
Technologies while Enviroleach Technologies (CSE: ETI) (OTCQB: EVLLF) will also hold a 40% interest and
Golden Predator Mining Corp. (TSX-V: GPY) (OTCQB: NTGSF) will hold a 20% interest (See News Release dated
March 2nd, 2020).
About enCore Energy Corp.
enCore Energy Corp., with assets based entirely in the United States, has a 100% interest, free of
holding costs, in 115,000+ acres (46,400 ha) of private mineral rights in New Mexico, including the
Crownpoint and Hosta Butte uranium deposits. These deposits contain an estimated Indicated Mineral
Resource of 26.6 million pounds of U3O8 at an average grade of 0.105% e U3O8
(1)
. A portion of these
resources are under NRC license. The Company also holds the Marquez and Treeline projects in New
Mexico as well as the dominate land position in Arizona with additional other properties in Ut ah and
Wyoming. The Company owns or has access to an extensive collection of proprietary North American
and global uranium data including the Union Carbide, US Smelting and Refining, UV Industries, and
Rancher’s Exploration databases in addition to a leading collection of geophysical data for the high -
grade Northern Arizona Breccia Pipe District.
Fo
r additional information:
William M. Sheriff
Executive Chairman
972-333-2214
www.encoreenergycorp.com
(1) According to a briefing by Nuclear Energy Institute and a combination of publicly stated
production forecasts and 2019 production volumes.
(2) Technical Report, titled, "Crownpoint and Hosta Butte Uranium Project Mineral Resource
Technical Report, McKinley County, New Mexico, USA, Mineral Resource Technical
Report - National Instrument 43 -101," dated May 14, 2012, and authored by Douglas L.
Beahm, PEng, PGeo.
Dr
. Douglas H. Underhill, CPG, a Qualified Person as defined by National Instrument 43-101
and Chief Geologist for the Company, has reviewed, verified, and approved disclosure of the
technical information contained in this news release.
*Under “Rules and Policies” of NI 43-101 Standards of Disclosure the mineral resource estimate
in the report by M. Hussan Alief, CPG, completed for Strathmore Minerals Corp. in 2010, must
be reported as a Historical Resource Estimate. A Qualified Person has not done sufficient work
for enCore to classify the historical estimate as a current mineral resource estimate. The
Company does not treat this historical estimate as a current mineral resource estimate, and the
estimate should not be relied upon.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Ca
utionary Note Regarding Forward-Looking Statements
Thi
s news release includes certain forward- looking statements within the meaning of applicable securities laws
including the anticipated completion of the transaction and acquisition of the Marquez, Nose Rock and other
properties, and the potential advancement thereof. Forward- looking statements are statements that relate to
future, not past, events. In this context, forward- looking statements often address expected future business and
financial performance, and often contain words such as "anticipate", "believe", "plan", "estimate", "expect", and
"intend", statements that an action or event "may", "might", "could", "should", or "will" be taken or occur, or other
similar expressions. Estimates of mineral resources and reserves are also forward looking statements because
they constitute projections regarding the amount of minerals that may be encountered in the future. All statements,
other than statements of historical fact, included herein including, without limitation; statements about the terms and
completion of the transaction are forward- looking statements. By their nature, forward- looking statements involve
known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or
achievements, or other future events, to be materially different from any future results, performance or
achievements expressed or implied by such forward- looking statements. Forward-looking statements are made
based on management's beliefs, estimates and opinions on the date that statements are made and the respective
companies undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or
other circumstances should change, except as required by applicable securities laws. Investors are cautioned
against attributing undue certainty to forward-looking statements.