Premier American Uranium Shifts to Growth Ahead of Schedule at Cebolleta in New Mexico, US
Premier American Uranium Shifts to Growth Ahead of Schedule at Cebolleta
in New Mexico, US
Toronto, ON, July 5 , 2024 – Premier American Uranium Inc. (“PUR”, the “Company” or “Premier American
Uranium”) (TSXV: PUR) (OTCQB: PAUIF) is pleased to announce a shift from resource confirmation to focus
primarily on growth and resource expansion following the recent set of milestones achieved by the Company
including the NI 43-101 compliant mineral resource estimate ( “MRE”) for the Cebolleta Project in New Mexico
(see press release dated June 24, 2024), 12 months ahead of schedule.
The Cebolleta Project holds potential for significant resource expansion, including at the Willie P target, which
was not included in the MRE , the underexplored extension of mi neralization remaining open along trend, and
several other untested areas. The Westwater Canyon Member, the principal host rock for several large historic
uranium mines in the Grants Mineral Belt, which contains over 400 million pounds of uranium1, remains largely
unexplored on the Cebolleta property, where the current mineral resources are hosted within the shallower
Jackpile sandstone.
With several untested and underexplored targets at Cebolleta providing a clear path for resource growth, we are
excited to initiate next steps well ahead of timelines previously expected by the market. Our technical team is
currently assessing future work programs and permitting requirements with a focus on leveraging the
momentum gained towards adding pounds in the prolific Grants Mineral Belt district. With +347 million pounds
of uranium produced, (37% of all U.S. historical production) the Grants district is 4th largest uranium district in
the world.1 The Company will focus on adding pounds near to the past producing Jackpile and Paguate mine
complex with historical production of 100 million pounds of uranium, see Figure 1.2
1 Uranium resources in the Grants uranium district, New Mexico: An update Virginia T. McLemore, Brad Hill,
Niranjan Khalsa, and Susan A. Lucas Kamat 2013
2 The Jackpile-Paguate Uranium Mine, Grants Uranium District: Changes in perspectives from production to
superfund site Virginia T. McLemore, Bonnie A. Frey, Ellane El Hayek, Eshani Hettiarachchi, Reid Brown,
Olivia Chavez, Shaylene Paul, and Milton Das
Figure 1: Plan View Map of the Cebolleta Uranium Project and Uranium Deposits
Colin Healey, CEO of PUR shares the following message with shareholders:
Dear Shareholders,
As we enter a new period of growth following the completion of our acquisition of American Future Fuel
Corporation (the “Arrangement”) in late June 2024, I wanted to take a moment to substantiate our significant
progress over the last few months and set out our objectives for the remainder of the year and beyond.
Executing the Business Model
PUR was established to acquire, explore, and develop uranium projects in the US to address a structural supply
shortfall, particularly evident in the domestic supply chain, which is undergoing a marked renaissance as the US
prioritizes energy independence, climate and emissions targets. This consolidation strategy was successfully
executed in prior cycles by the same teams that have created and backed PUR, which previously resulted in
outstanding shareholder returns. With the Arrangement now complete, we believe PUR is poised to generate
value in the next step of its strategy: exploring and developing its key projects. PUR now has a strong foothold in
three of the top uranium districts in the US , including New Mexico, Wyoming and Colorado. Going forward, we
expect to focus much of our efforts on project- level work, while continuing to evaluate opportunistic M&A to
compliment our portfolio.
Preparing for Advanced Exploration with Bolstered Uranium Inventory
Last week, we announced an NI 43 -101 compliant mineral resource estimate (“MRE”) for the Cebolleta Project
in New Mexico (see press release dated June 24, 2024). The MRE details 18.6 million pounds of eU3O8 (6.6 million
short tons at an average grade of 0.14% eU 3O8) in Indicated Resources and 4.9 million pounds of eU 3O8 (2.6
million short tons at an average grade of 0.10% eU 3O8) in Inferred Resources , effective as of April 30, 2024 .
Compared to the historic 2014 estimate, the new MRE has increased in both size and quality, with 80% of the
previous Inferred Resources upgraded to Indicated Resources. Importantly, the updated MRE came at minimal
cost, and we believe the early achievement of this milestone positions PUR to fast track, focusing efforts on
resource expansion and priority target testing, rather than extensive confirmation work as previously
anticipated.
Additionally, we are gearing up to commence exploration and drilling at the Cyclone Project in Wyoming, where
we hold a significant land position with in -situ recovery potential. Previous drilling at the Cyclone Project from
2007 to 2008 encountered typical grades and thicknesses of uranium deposits found elsewhere in the Great
Divide Basin.
Strong Ability to Lever Assets Enhanced by Additions to Board and Technical Team
The addition of Jon Indall and Michael Henrichsen to PUR’s board of directors adds significant breadth and depth
of experience in advancing the flagship Cebolleta in New Mexico, Cyclone in Wyoming and the Uravan properties
in Colorado.
Jon Indall’s experience as an attorney specializing in uranium mining in New Mexico, his success in lobbying for
the uranium industry in the US and his foundational involvement with Uranium Producers of America, positions
him as a key pathfinder in successfully navigating the various regulatory processes and guiding approaches to
ESG across the portfolio.
The PUR technical and regulatory advisory group led by Ted Wilton and Mike Neumann bring new strength to
the team that has advanced Cebolleta to the recently announced MRE. As the Company shifts its focus to
exploration and resource growth, the bolstered team, with their previous involvement with the asset, is expected
to maximize PUR’s opportunity to add pounds and advance Cebolleta toward a Preliminary Economic Assessment
(PEA) for the project.
Strong Uranium Fundamentals to Drive Continued Success
The US continues to position itself for a resurgence in nuclear power. Home to the world’s largest civil nuclear
reactor fleet, which provides about 20% of domestic baseload energy, the US, alongside 21 other countries, has
recently committed to triple nuclear power by 2050 to meet emissions targets. The US remains highly reliant on
foreign suppliers to fuel its reactor fleet, with uranium production falling to almost nothing in the post Fukushima
era, and critical domestic conversion and enrichment capacity well below domestic needs, the US is now taking
decisive action to reestablish civil nuclear energy leadership on all fronts. With the recent passage into law of
the ban on the import of Russian -produced low-enriched uranium (LEU) , the US unlocked US$2.7 billion in
funding, which, along with Canada, France, Japan and the U.K., have committed a total of US$4.2 billion to invest
in the development of a secure and reliable global nuclear energy supply chain3. In addition, we have just seen
a separate US$2.7 billion RFP issued by the US Department of Energy (“ DOE”) for the purchase of LEU from
domestic sources, specifically designed to jumpstart domestic nuclear fuel production, with the goal of displacing
reliance on foreign sources. The D OE intends to sell the purchased LEU to utilities operating U.S. reactors and
sever reliance on Russian imports4. While the US focuses efforts on reestablishing nuclear technology leadership,
energy independence and climate goals, the global uranium market currently sits in a substantial supply deficit
that requires higher prices for an extended period to ensure the global reactor fleet has access to the fuel it
requires. There remains substantial concentration of global uranium supply among a small number of mines and
jurisdictions, which itself, is a risk. It is expected that all of these factors create extremely robust uranium sector
fundamentals that will exert further upward pressure on uranium price, and we believe that Premier American
Uranium is well positioned to provide investors with leverage to this opportunity.
In closing, we believe PUR presents a strong investment case, providing the following:
• PUR has an unparalleled team, which together boasts decades of uranium, M&A, exploration, and
development experience within the US
• PUR has strong backing and offers an opportunity to invest alongside known uranium corporate
and institutional investors, including Sachem Cove Partners, IsoEnergy Ltd., Mega Uranium Ltd.,
and EnCore Energy, among others
• PUR has a demonstrated track record and has successfully executed its consolidation strategy with
its first M&A transaction within six months of going public and continues to adopt an opportunistic
approach
• PUR is ready to explore and develop its assets with two work programs anticipated at the Cyclone
Project in Wyoming and Cebolleta Project in New Mexico
Qualified Person Statement
The scientific and technical information contained in this news release was reviewed and approved by Dean T.
Wilton, PG, CPG, MAIG, a consultant of PUR who is a “Qualified Person” (as defined in National Instrument 43 -
101 - Standards of Disclosure for Mineral Projects ). Data verification related to certain scientific and technical
information with respect to the Cebolleta Project can be found in the Company’s technical report entitled
“Technical Report on the Cebolleta Uranium Project, Cibola County, New Me xico, USA” dated June 17, 2024 ,
which is available under the Company’s profile on SEDAR+ at www.sedarplus.ca.
About Premier American Uranium
Premier American Uranium Inc. is focused on the consolidation, exploration, and development of uranium
projects in the United States. One of PUR’s key strengths is the extensive land holdings in three prominent
uranium-producing regions in the United States: the Grants Mineral Belt of New Mexico, the Great Divide Basin
of Wyoming and the Uravan Mineral Belt of Colorado. With a rich history of past production and both current
and historic uranium mineral resources, PUR has work programs underway to advance its portfolio.
3 H.R.1042 – 118th Congress (2023-2024): Prohibiting Russian Uranium Imports Act | Congress.gov | Library
of Congress
4 DOE Announces $2.7 Billion From President Biden’s Investing in America Agenda to Boost Domestic
Nuclear Fuel Supply Chain | Department of Energy
Backed by Sachem Cove Partners, IsoEnergy Ltd., Mega Uranium Ltd., and additional corporate and institutional
investors, and an unparalleled team with U.S. uranium experience, PUR’s positioning in the market represents a
compelling opportunity, as uranium fundamentals are currently the strongest they have been in more than
a decade.
For More Information, Please Contact:
Premier American Uranium Inc.
Colin Healey, CEO
Toll-Free: 1-833-223-4673
Twitter: @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.
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, planned exploration
activities; the potential for future mineral resource expansion; plans regarding preparation of a Preliminary
Economic Assessment for the Cebolleta Project; expectations regarding the resurgence of nuclear power in the
US; 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, that the results of
planned exploration activities are as anticipated, the price of uranium, the anticipated cost of planned exploration
activities, that 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: limited
operating history, 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 with respect to Premier American Uranium set
out in PUR’s annual information form for the year ended December 31, 2023 and the other documents of PUR
filed with the Canadian securities regulators and available under PUR’s profile on SEDAR+ at www.sedarplus.ca.
Although PUR has attempted to identify important factors that could cause actual actions, events or results to
differ materially from those contained in the forward- looking information or implied by forward -looking
information, there may be other factors that cause results not to be as anticipated, estimated or intended. There
can be no assurance that forward-looking information and statements will prove to be accurate, as actual results
and future events could differ materially from those anticipated, estimated or intended. Accordingly, readers
should not place undue reliance on forward-looking statements or information. PUR undertakes no obligation to
update or reissue forward- looking information as a result of new information or events except as required by
applicable securities laws.