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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.

UNITED STATES

Biden’s proposed FY2022 budget includes:
- Production tax credit to support at-risk power plants ($9.7B through 2031)
- Funding to procure advanced nuclear power ($3.5B through 2026)

EUROPEAN UNION (EU)

EU indicated that nuclear energy does not cause significant harm
Inclusion may help support continued and new investment in nuclear capacity in Europe, stemming early reactor closures

CHINA

Planning to produce 20% of electricity from non-fossil sources by 2030
Expect nuclear power use to rise as much as 10% over the next decade, up from 5% in 2019

JAPAN

8 years after Fukushima disaster, gave initial approval to restart Onagawa reactor

Plans to generate 20% of its energy from reactors by 2030

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.

Global Policy Initiatives Support Nuclear Energy

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

~Financial Times

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

~Reuters

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

~Daily Journal

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

~Bloomberg

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

~Fortune

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.

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.

Nuclear energy produces the least CO₂ equivalent emissions versus other energy forms, helping solidify its place in global decarbonization goals.

Source: Ourworldindata.org; measured in emissions of CO2-equivalent per gigawatt-hour of electricity over the lifecycle of the power plant. Data as of 12/31/2020.

Uranium is responsible for the lowest mortality rate per terawatt hour (TWh) of energy produced
Post-reactor radioactivity shows significant reductions after just 10 years

Source: European Union, The World Bank, EIA, Radioactivity.eu. Data as of 12/31/2020.

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.

~ Bill Gates, Microsoft

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

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 reflecting investor expectations for higher uranium prices

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

The 30 Most Reliant Countries on Nuclear Energy: The U.S. Ranks #15

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.

Sprott Physical Uranium Trust

Sprott understands the global need for Uranium and has set up the world’s largest physical uranium investment fund – the Sprott Physical Uranium Trust.

The Sprott Physical Uranium Trust seeks to provide a secure, convenient and exchange-traded investment alternative for investors interested in holding uranium.