Premier American Uranium Announces Preliminary Economic Assessment and Mineral Resource Update for the Cebolleta Uranium Project, Outlining Project Economics and Framework for Enhancement PEA outlines base case production averaging 1.4 Mlb U ₃O₈ annually over a 13-year mine life for total output of
Premier American Uranium Announces Preliminary Economic Assessment and
Mineral Resource Update for the Cebolleta Uranium Project, Outlining Project
Economics and Framework for Enhancement
PEA outlines base case production averaging 1.4 Mlb U ₃O₈ annually over a 13-year mine life for total output of 18.1
Mlb with an after-tax NPV (8%) of US$83.9M, with strong leverage to higher uranium prices and increased recovery
TORONTO, Oct. 30, 2025 -- Premier American Uranium Inc. (“PUR” or “Premier American Uranium” or the
“Company”) (TSXV: PUR, OTCQB: PAUIF) is pleased to announce the results of its Preliminary Economic Assessment
(“PEA”) for the Cebolleta Uranium Project (“Cebolleta ” or the “Project”) in New Mexico. The PEA highlights the potential for a
large-scale, long-life, low-capex uranium project with leverage to rising uranium prices. The PEA contemplates a heap leach
strategy that produces a uranium-loaded resin that would be suitable for off-site processing at multiple under-utilized licensed
domestic in-Situ Recovery (ISR) central processing plants, enabling potential development without reliance on legacy
conventional mills. Preliminary economics are believed to have strong potential to be enhanced near-term with advanced
metallurgical testing and process optimization.
The updated Mineral Resource Estimate (“MRE”) for Cebolleta increases Indicated Mineral Resources by 1.7 Mlb eU3O8 (+9%)
to 20.3 Mlb eU 3O8 and increases Inferred Mineral Resources by 2.2 Mlb eU 3O8 (+45%) to 7.0 Mlb eU 3O8, compared to the
previous technical report on the Project released in April 2024 (the “ 2024 Technical Report ”). The updated MRE positions
Cebolleta as one of the largest undeveloped uranium deposits in the western United States. The PEA and MRE are included in
a Technical Report (the “Technical Report ”) prepared in accordance with the requirements of National Instrument 43-101 –
Standards of Disclosure for Mineral Projects (" NI 43-101 ") by SLR International Corporation (" SLR"), an independent
consulting firm with extensive experience in mining and mineral processing, including uranium operations in the United States.
The PEA is preliminary in nature and includes Inferred mineral resources that are considered too speculative geologically to
have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no
certainty that the PEA will be realized.
Highlights
• Base case mining concept shows Cebolleta average production of 1.4 Mlb U ₃O₈ annually (peak of 2.0 Mlb) for
a total of 18.1 Mlb over its 13-year mine life.
◦ After-tax net present value (“NPV”) (8%) of US$83.9M (US$106M pre-tax)
◦ After-tax IRR of 17.7%
◦ Pre-production costs:
◾ Direct CAPEX of US$64.2M
◾ Indirect (EPCM / Owners cost / Indirect) of US$19.3M
◾ 35% contingency of US$29.2M
◦ Life of Mine (“LOM”) after-tax free cash flow of US$287M
◦ LOM operating cashflow of US$496M
◦ Average operating cost of US$41.60 per lb U3O8 recovered
◾ Relatively low operating costs are underpinned by very competitive heap leach processing costs of
US$16.72 per short ton
◦ Base case uranium price assumption of US$90/lb U₃O₈
• Strong leverage to uranium prices , with higher prices expected to potentially further enhance project
economics and cash flow generation. Uranium price sensitivity analysis shows after-tax NPV (8%) could
reach:
◾ US$154M at US$100/lb U₃O₈
◾ US$325M at US$125/lb U₃O₈
◾ US$488M at US$150/lb U₃O₈
• Upside potential with improved metallurgical recoveries – Sensitivity analysis indicates that base-case after-tax
NPV (8%) of US$84M, increases by approximately 90% to US$159M using a 90% metallurgical recovery assumption.
• Updated MRE significantly increases total Project mineral resources:
◦ Indicated resource: 20.3 Mlb eU 3O8 (8.3 Mst grading 0.12% eU 3O8), up 1.7 Mlb eU 3O8 or 9% vs. 2024
Technical Report
◦ Inferred resource : 7.0 Mlb eU3O8 (3.6 Mst grading 0.10% eU 3O8), up 2.1 Mlb eU3O8 or 43% vs. 2024 Technical
Report
Colin Healey, CEO and Director of Premier American Uranium, commented, “The PEA highlights that Cebolleta has the
potential to be a cornerstone U.S. uranium project with a long mine life, low upfront capital, and strong leverage to higher
uranium prices. Alongside the PEA, the updated MRE significantly increases project-wide resources, reflecting another
successful deliverable for our team. With a clear pathway to optimizing embedded process assumptions through additional
metallurgical studies, and exploration upside potential, we see an opportunity to rapidly de-risk and increase project value, as
we advance Cebolleta toward potential development. We believe these next steps have the potential to position Cebolleta as a
critical contributor to U.S. energy independence.”
Table 1: Summary of Key Economic Parameters – Base Case
Description US$ million
Realized Market Prices
U3O8 ($/lb) $90
Payable Metal
U3O8 (klb) 18,101
Total Gross Revenue $1,629
Mining Cost $(705)
Mill Feed Transport Cost $(1)
Process Cost $(175)
G & A Cost $(76)
Royalties $(98)
Severance Tax $(29)
Total Operating Costs $(1,085)
Operating Margin (EBITDA) $545
Operating Margin % 33%
Corporate Income Tax $(48)
Working Capital* $0
Operating Cash Flow $496
Development Capital $(113)
Sustaining Capital $(81)
Closure/Reclamation $(16)
Total Capital $(209)
Pre-tax Free Cash Flow $335.4
Pre-tax NPV @ 5% $166.8
Pre-tax NPV @ 8% $106.3
Pre-tax NPV @ 12% $53.3
Pre-tax IRR 19.8%
Pre-tax Undiscounted Payback from Start of Commercial Production (Years) 4.3
After-tax Free Cash Flow $286.9
After-tax NPV @ 5% $137.3
After-tax NPV @ 8% $83.9
After-tax NPV @ 12% $37.3
After-tax IRR 17.7%
After-tax Undiscounted Payback from Start of Commercial Production (Years) 4.9
Sensitivity Analysis
Sensitivity analysis of the Cebolleta PEA indicates strong leverage to uranium price, where a 11% increase to the base case
assumption (US$90/lb U 3O8) to US$100/lb, increases after-tax NPV (8%) by 83%, to US$154M. Given the current market
growth expectations for the uranium sector and recent (2024 peak UxC Spot uranium price: US$107/lb U 3O8) and leading
uranium price indicators, (UxC 5-year price: US$94/lb U 3O8), sensitivity at higher prices was also examined. At US$125/lb
U3O8, the after-tax project NPV (8%) increases to US$325M (39% increase in uranium price increases post-tax NPV (8%) by
288%).
Also notable, is the leverage to metallurgical recovery assumption, where a 2.5% increase from 80% recovery to 82%,
increases post-tax NPV (8%) by 19%, to US$99.6M. Increasing recovery by 12% (from 80% recovery to 90%) increases after-
tax NPV (8%) by 90%, to US$159M. Standard uranium project sensitivities to various inputs are tabled below.
Table 2: After-Tax Sensitivity Analyses (deviation from base-case)
Variance Metal Prices
(US$/lb U3O8)
NPV at 8%
(US$000)
78% $70 ($57,384)
89% $80 $14,410
100% $90 $83,857
111% $100 $153,718
122% $110 $222,911
139% $125 $325,391
167% $150 $487,514
Variance Recovery
(%)
NPV at 8%
(US$000)
95% 64% ($41,713)
98% 72% $21,288
100% 80% $83,857
103% 82% $99,590
112% 90% $159,261
Variance LOM Total Operating Costs
(US$/ton cumulative)
NPV at 8%
(US$000)
85% $804,491 $145,076
93% $875,476 $114,522
100% $946,460 $83,857
118% $1,112,091 $12,696
135% $1,277,721 ($61,750)
Variance LOM Total Capital Costs
(US$000)
NPV at 8%
(US$000)
85% $190,546 $105,766
93% $207,359 $94,812
100% $224,172 $83,857
118% $263,402 $58,297
135% $302,633 $32,736
Mineral Resource Estimate
The Cebolleta Uranium Project is underlain by Upper Jurassic Morrison Formation units, particularly the Jackpile Sandstone
Member, which hosts the majority of uranium mineralization. The mineralization is primarily stratabound and tabular, hosted
within medium- to coarse-grained, humate-rich fluvial sandstones of the Jackpile Sandstone. Mineralization is primarily hosted
in the relatively flat laying Jackpile Sandstone at depths below the surface of 0 ft to 500 ft. The Project is composed of the St.
Anthony, Willie P, and Areas I, II, III, IV, and V mining areas.
Historical exploration, including over 4,000 drill holes and multiple mining operations (Willie P, Climax M-6, St. Anthony, and
Sohio JJ#1), has established a robust geologic and mineralization framework for the Project.
A modern confirmation drilling program conducted in 2023 validated historical drilling data, confirming stratigraphy,
mineralization thickness, and grades. Results support the use of legacy data in current resource estimation.
The MRE incorporates over 3,300 validated drill holes totaling greater than 1.7 million feet and is summarized below.
SLR is not aware of any environmental, permitting, legal, title, taxation, socio-economic, marketing, political, or other relevant
factors that could materially affect the MRE.
Table 3: Mineral Resource Estimate – Cebolleta Uranium Project - Effective May 14, 2025
Classification Grade Cut-off
(% eU3O8)
Tonnage
(Mst)
Grade
(% eU3O8)
Contained Metal
(Mlb eU3O8)
Indicated
Underground 0.00 5.89 0.15 18.14
Open Pit 0.02 3.81 0.07 5.61
Subtotal Indicated 9.70 0.12 23.75
Depletion -1.40 0.12 -3.44
Total Indicated less Depletion 8.30 0.12 20.31
Inferred
Underground 0.00 1.79 0.12 4.42
Open Pit 0.02 1.81 0.07 2.62
Total Inferred 3.60 0.10 7.04
Notes:
1. CIM (2014) definitions were followed for Mineral Resources.
2. Mineral Resources are estimated using a long-term uranium price of US$90/lb U3O8.
3. Underground Mineral Resources are reported at a cut-off grade of 0.0% eU3O8 within underground reporting panels
designed at a cut-off grade of 0.06% eU3O8. Reporting panels have a maximum design height of 100 ft, length,
minimum design height of 6 ft, and width of 50 ft.
4. Open Pit Mineral Resources are reported at a cut-off grade of 0.02% eU3O8 and constrained by a preliminary optimized
pit shell with a pit slope angle of 50° and bench height of 20 ft.
5. The optimized pit shell, underground reporting shapes, and cut-off grades were generated by assuming metallurgical
recovery of 80%, standard treatment and refining charges, mining costs of $3.31/st moved for open pit and $54/st
marginal mining cost for underground, processing costs of $16.72/st processed, and general and administrative costs
of $6.50/st processed.
6. Mineral Resources have been depleted based on past reported production numbers from the underground JJ#1, Climax
M-6 and Willie P underground mines.
7. A minimum mining width of two feet was used for construction the wireframes.
8. Tonnage Factor is 16 ft3/st (Density is 0.625 st/ft 3 or 2.00 t/m3).
9. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
10. Numbers may not add due to rounding.
Mine Plan Overview and Mineable Resources
The PEA contemplates a two-year underground pre-production period and a 13-year active mine life comprised of underground
and open pit mining across seven mining zones (St. Anthony, Willie P, and Areas I, II, III, IV, and V). The primary mining
methods expected to be employed at Cebolleta will be open pit (St. Anthony Area) and room and pillar (Areas I, II, III, IV, V
and Willie P, St. Anthony North and South Zones).
The mine plan, which is based on Indicated and Inferred Mineral Resources, includes a total of 8.30 million short tons (Mst) at
0.12% eU₃O₈ containing 20.31 million pounds (Mlb) eU ₃O₈ Indicated and 3.60 Mst at 0.10% eU ₃O₈ containing 7.04 Mlb eU ₃O₈
Inferred.
The underground mining areas will be accessed by a 3,500-ft long adit decline starting near the heap pad location for Area III,
with a 2,500-ft long extension of this decline to access Area II. There will be a second access to the underground mining at
Area I and Willie P, which will be a 930-ft long adit starting at a location in the northwest corner of the St. Anthony open pit.
These two underground accesses will be connected by a 3,800-ft long drift. A minimum mining thickness of six feet was
applied to two-foot-thick mining blocks. An underground 85% mining recovery was applied to the Mineral Resource Estimate
reporting panels with underground panel dilution expected to be 21%. PUR is acutely aware of the need to keep dilution low,
given the high cost of mining and treatment.
Over the LOM, mining is expected to supply total process feed of 10.46 Mst with an average head grade of 0.11% eU 3O8.
Mining rates are anticipated to be 1,079 short tons per day (“stpd”) from underground and 1,982 stpd from open pit operations.
It is envisioned that Cebolleta will supply approximately 1.1 million short tons of mineralized material per year to PUR’s heap
leach pad (“HLP”) located on the Cebolleta property.
Figure 1: Mine Plan View – Cebolleta Uranium Project Open Pit and Underground
Processing Overview
Mineralized material will be crushed via mobile crusher in 2-stages to a 2-inch crush size and stacked in lifts on an HLP and
irrigated with dilute sulfuric acid solution for uranium leaching. The LOM average head grade is 0.11% U 3O8, and the process
design U3O8 head grade is 0.140% with the nominal leach recovery assumed at 80%.
Leached uranium is collected as a pregnant leach solution (“PLS”) and processed via ion exchange columns containing resin.
The uranium in the PLS will load onto the resin with the resultant barren solution recycled back to the heap leach for additional
leaching cycles. Loaded resin columns will be removed from service and shipped offsite for further processing.
Total expected LOM uranium recovered is 18.28 Mlb eU 3O8 over the 13-year operating life for an annual average production
rate of 1.4 Mlb eU3O8 (assumed to be 99% payable).
The key planned design criteria are summarized below.
Table 4: Cebolleta Process Design Criteria
Parameter Units Design Source
Daily throughput stpd 2,300 Assumed
Annual throughput stpa 839,500 Calculated
U3O8head grade, design % 0.140 Calculated
U3O8head grade, LOM % 0.110 Calculated
Heap leach recovery % 80 Assumed
U3O8production – Stacked Short Tons per Day stpa 2,290 Calculated
U3O8production – Average Annual Recovered
Metal
Mlb/annum 1.4 Calculated
U3O8production – Average Daily Recovered
Metal
lb/day 3,800 Calculated
ROM moisture % 3 Assumed
Mineralized material specific gravity 3 Assumed
Mineralized Heap Leach bulk density lb/ft3 99.88 Assumed
Crushing 2 stage mobile crusher Assumed
Crusher P80 in 2 Assumed
Heap leach stacking time hours/day 10 Assumed
Heap leach pad dimensions
Pad height ft 26.2 Assumed
Irrigation rate gpm/ft2 0.004 Assumed
Heap Leach Time Days 90 Assumed
Overall heap leach pad mass st 299,000 Calculated
Heap leach pad application mass st 207,000 Calculated
Heap leach pad area ft2 228,164 Calculated
Heap leach application area ft2 157,960 Calculated
Acid Concentration % 98 Assumed
Leach solution H2SO4Concentration lb/gal 0.05 Assumed
Pregnant solution flowrate gpm 646 Calculated
Evaporation % 7% Assumed
Uranium pregnant solution concentration mg/L 664 Calculated
Ion exchange column volume ft3 530 Assumed
Resin bed depth, height ft 10.8 Calculated
Column diameter ft 8.3 Calculated
Number of columns 4 (2 online, 2 standby) Calculated
Bed volumes per hour BV/hr 10 Calculated
Uranium loading capacity g U3O8per litre resin 30 Assumed
Loaded resin volume per day st 11 Calculated
Number of columns taken out of service per day Columns/d 1.0 Calculated
Number of columns inventory 21 Assumed
Loading pH 1.5 – 2.5 Assumed
Operating temperature Ambient Ambient (20 – 40C) Assumed
Pressure drop across column bar 0.5 – 1 Assumed
Figure 2: Payable eU 3O8 LOM Production Schedule
Project Infrastructure Overview
Current Project access is considered very good and the PEA includes upgrading for commercial operations. The Project will
require an HLP, a resin-in-column processing plant, and standard surface facilities to support mining and processing
operations.
The HLP and associated pond will be synthetically lined so that the solution is contained within a closed system, with the only
net solution loss being to evaporation (designed as a zero-discharge facility). An appropriate location on site has been
identified that meets the capacity requirements and other constraints, as shown below. The HLP construction is staged
throughout the Project life to reduce up-front capital costs.
The Project will have line power and diesel-generated backup electric power for the processing plant, underground operation,
ventilation fans, and surface infrastructure.
The general site layout, including placement of the heap leach pad, waste dump, power lines, roads, underground drifts and
vent shafts are depicted below.
Figure 3: Site Infrastructure Layout
Key Recommendations of the PEA
Given the favourable technical and economic results of the PEA, the independent technical consultants preparing the PEA and
Technical Report have recommended a multi-phase plan to further de-risk and refine project scope and economics, including
advanced metallurgical test work to investigate and enhance leach recovery assumptions and assess other opportunities for
optimization identified within the PEA. Recommendations also include drilling of core holes for confirmation and to provide
sample material for leach tests, among a broader scope of work, ultimately supporting a recommendation to pursue a PEA
update or Preliminary Feasibility Study.
Technical Report
The effective date of the PEA and the MRE is May 15 , 2025, and the Technical Report will be filed on the Company's website
and under its SEDAR+ profile within 45 days of this news release.
When available, readers are encouraged to read the Technical Report in its entirety, including all qualifications, assumptions
and exclusions that relate to the PEA and mineral resource model. The Technical Report is intended to be read as a whole,
and sections should not be read or relied upon out of context.
About the Cebolleta Uranium Project and Mineral Resources
Located in New Mexico, the Cebolleta Uranium Project is a past-producing property with extensive historical work and
infrastructure. Its location in one of the premier uranium districts in the US provides strategic advantages, including proximity
to utilities and existing processing facilities.
Qualified Person
The scientific and technical information contained in this news release relating to the PEA and MRE was reviewed and
approved by Mr. Mark B. Mathisen, C.P.G., Stuart Collins, P.E., Jeffrey L. Woods, MMSA QP, Lee (Pat) Gochnour, MMSA
QP and Matthew Behling, P.E., for SLR International Corporation, the authors of the Current Technical Report, each of whom
is a “Qualified Person” (as defined in NI 43-101).
Mr. Mathisen (QP) has verified the exploration, sampling, analytical, and test data supporting the Technical Report through
review and audit of historical and recent databases, comparison with original geophysical logs and assay records, and
inspection of drill hole collar, interval, and grade data for completeness and accuracy. Verification included a site visit on
September 12, 2023, review of drilling and downhole logging procedures, and evaluation of the 2023 twin-hole and 2025 Willie
P database audits, which confirmed strong correlation with historical results and overall data reliability. Although no historical
core or quality assurance/quality control reference materials are available and most legacy holes lack deviation surveys, no
limitations were placed upon the QP during the verification process, and the QP considers the verification methods and
resulting database adequate for Mineral Resource estimation and compliant with NI 43-101 requirements.
Additional scientific and technical information in this news release not specific to the PEA and MRE has been reviewed and
approved by Dean T. Wilton, PG, CPG, MAIG, a consultant of Premier American Uranium Inc. , who is a “Qualified
Person” (as defined in NI 43-101).
About Premier American Uranium Inc.
Premier American Uranium is focused on consolidating, exploring, and developing uranium projects across the United States
to strengthen domestic energy security and advance the transition to clean energy. The Company’s extensive land position
spans five of the nation’s top uranium districts, with active work programs underway in New Mexico’s Grants Mineral Belt and
Wyoming’s Great Divide and Powder River Basins.
Backed by strategic partners including Sachem Cove Partners, IsoEnergy Ltd., Mega Uranium Ltd., and other leading
institutional investors, PUR is advancing a portfolio supported by defined resources and high-priority exploration and
development targets. Led by a distinguished team with deep expertise in uranium exploration, development, permitting,
operations, and uranium-focused M&A, the Company is well positioned as a key player in advancing the U.S. uranium sector.
For More Information, Please Contact:
Premier American Uranium Inc.
Colin Healey, CEO and Director
Toll-Free: 1-833-223-4673
X: @PremierAUranium
www.premierur.com
Neither TSX Venture Exchange nor its Regulations Services Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Non-GAAP Financial Measures
This news release includes certain terms or performance measures commonly used in the mining industry that are not defined
under International Financial Reporting Standards ("IFRS"). Such non-GAAP performance measures, including operating costs
and free cash flow, are included because it understands that investors use this information to determine the Company's ability
to generate earnings and cash flows. The Company believes that conventional measures of performance prepared in
accordance with IFRS do not fully illustrate the ability of mines to generate cash flows. Non-GAAP financial measures should
not be considered in isolation as a substitute for measures of performance prepared in accordance with IFRS and are not
necessarily indicative of cash flows presented under IFRS. These measures have no standardized meaning under IFRS and
may not be comparable to similar measures presented by other companies.
Cautionary Statement Regarding Forward-Looking Information
This news release contains “forward-looking information” within the meaning of applicable Canadian securities laws. Forward-
looking information includes, but is not limited to, statements with respect to, the economic and scoping-level parameters of
the PEA and the Project; the anticipated timeline for completion of the Technical Report; mineral resource estimates; the cost
and timing of any development of the Project; the proposed mine plan and mining methods; dilution and mining recoveries;
processing method and rates; production rates; projected metallurgical recovery rates; infrastructure requirements; energy
sources; capital and operating cost estimates; the projected LOM and other expected attributes of the Project; the NPV, IRR
and payback period of capital; the uranium industry and uranium prices; government regulations and permitting; access to the
Project; water sources and management; estimates of reclamation obligations and closure costs; requirements for additional
capital; expectations with respect to project development and permitting, construction and operational processes; availability
of services to be provided by third parties; future development methods and plans; and other activities, events or
developments that are expected, anticipated or may occur in the future. Generally, but not always, forward-looking information
and statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”,
“estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or the negative connotation thereof or variations of such words
and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or
“be achieved” or the negative connotation thereof.
Forward-looking information and statements are based on our current expectations, beliefs, assumptions, estimates and
forecasts about PUR’s business and the industry and markets in which it operates. Such forward-information and statements
are based on numerous assumptions, including among others, general business and economic conditions will not change in a
material adverse manner, that financing will be available if and when needed and on reasonable terms, that third party
contractors, equipment and supplies and governmental and other approvals required to conduct the Company’s planned
exploration activities will be available on reasonable terms and in a timely manner. Although the assumptions made by PUR in
providing forward-looking information or making forward-looking statements are considered reasonable by management at the
time, there can be no assurance that such assumptions will prove to be accurate.
Forward-looking information and statements also involve known and unknown risks and uncertainties and other factors, which
may cause actual results, performances and achievements of Premier American Uranium to differ materially from any
projections of results, performances and achievements of Premier American Uranium expressed or implied by such forward-
looking information or statements, including, among others: risks related to the inherent uncertainties regarding cost
estimates; changes in commodity and metal prices; results of future exploration activities; cost overruns; the limited operating
history of the Company; negative operating cash flow and dependence on third party financing; uncertainty of additional
financing; delays or failure to obtain required permits and regulatory approvals; changes in mineral resources; no known
mineral reserves; aboriginal title and consultation issues; reliance on key management and other personnel; potential
downturns in economic conditions; availability of third party contractors; availability of equipment and supplies; failure of
equipment to operate as anticipated; accidents, effects of weather and other natural phenomena and other risks associated
with the mineral exploration industry; changes in laws and regulation, competition, and uninsurable risks and the risk factors