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Global Demand and Policy Initiatives

The U.S., Europe, China and Japan are recognizing nuclear’s vital role as a carbon-free energy source.

Source: World Nuclear News. “US FY2022 budget request includes record for nuclear energy” June 2, 2021. NucNet. “European Taxonomy/Commission Announces Plans to Include Nuclear Energy” April 21, 2021. IAEA “China highlights nuclear innovation to meet climate goals at IAEA conference” October 9, 2019. World Economic Forum “This is what nuclear power looks like 8 years after Fukushima” December 11, 2019.

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Global Policy Initiatives Support Nuclear Energy

UK to put nuclear power at heart of net zero emissions strategy.

Japan’s new PM defends pro-nuclear stance in parliamentary debut.

Massive energy bill becomes law, investing billions between renewable, nuclear sectors.

Nuclear gains ground in Europe’s plan to phase out gas.

Nuclear plants insulate France from the energy crisis. Now Macron is doubling down on them in a $35 billion moonshot plan.

NUCLEAR ENERGY IS...

Nuclear energy has the highest capacity factor1 versus both traditional and alternative energy sources, prompting renewed attention to help solve global energy needs.
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1 Measures the total amount of energy produced during a period of time divided by the amount of energy the plant would have produced at full capacity. Source: U.S. Energy Information Administration. Data as of 12/31/2020.

  • Uranium’s high energy density reduces the impact of extraction and transport, facilitating the ability to contain waste
  • One nuclear fuel pellet is roughly 10-13 millimeters long and 8-13.5 millimeters in diameter (~ the size of a gummy bear), and weighs ~10 grams2

Source: American Nuclear Association. 2 Cameco Corporation.

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Uranium Bull Run Underway

  • Uranium is emerging out of a protracted bear market
  • Growing production/demand imbalance and future utility contracting provide primary price support

Source: TradeTech LLC. Data as of 10/31/2021.

Nuclear is ideal for dealing with climate change, because it is the only carbon-free, scalable energy source that’s available 24 hours a day.

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Global Demand for Nuclear & Uranium

URANIUM BUYING IS ACCELERATING

  • Non-utility buying of spot uranium has historically pre-empted rising prices
  • Financial investors and junior speculators are estimated to have record-high spot uranium purchases in 2021 and beyond
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Note: Represents known purchases from Hedge Funds, Investment Funds and Junior Speculators. Data may not be wholly inclusive of all purchases due to lack of transparency. 2021 reflects annualized estimated figure based on data from UxC LLC.

Source: UxC LLC. Uranium Sport Price data as of 10/31/2021; Non-Utility Buyers data as of 9/30/2021.

INVESTOR SENTIMENT IS STRONG ON URANIUM EQUITIES

Gains in uranium equities have recently been strong suggestive of investor expectations for higher uranium prices

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Source: Bloomberg. Data as of 10/31/2021. World Uranium Total Return Index (URAX Index) tracks the performance of stocks globally, which conduct business with uranium. The index members are the largest and most liquid stocks from the list of eligible companies.

URANIUM PRODUCTION & DEMAND IMBALANCE LIKELY TO GROW

  • Uranium demand is projected to grow and outstrip waning production
  • New production unlikely to come online without higher prices
  • Production/Demand gap is currently filled with a finite secondary supply
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The 30 Most Reliant Countries on Nuclear Energy: The U.S. Ranks #15

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  • The 2021 edition of the World Nuclear Association’s Nuclear Fuel Reportshows a 27% increase in uranium demand over 2021-30 and a 38% increase in uranium demand for the decade 2031-2040.

Source: UxC LLC. Data as of Q2 2021. Methodology for estimates is outlined in the International Atomic Energy Agency report “Analysis of Uranium Supply to 2050,” available at https://www-pub.iaea.org/MTCD/Publications/PDF/Pub1104_scr.pdf.

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