Announcement PDF ALLIGATOR ENERGY LIMITED ACN 140 575 604 ANNUAL REPORT 2023 - 2024 2024 ANNUAL REPORT AGE 2024 A NNUA L REP O RT TA B L E O F CO N T EN T S P A G E 02 3 Highlights 11 C h a i r m a n a n d C h i e f E x e c u t i v e O f f i c e r ’s L e t t e r t o Shareholders 14 Te n e m e n t R e g i s t e r 16 Project Locations 17 Uranium and Nuclear Market Outlook 20 Environment al, S o c ial and Governance (E S G) 27 Financial Repor t 27 Directors’ Repor t 54 Consolidated Statement of Profit & Loss 55 Consolidated Statement of Financial Position 56 Consolidated Statement of Changes in Equit y 57 Consolidated Statement of Cash Flows 58 Notes to the Consolidated Financial Statements 103 Consolidated Entit y Disclosure Statement 104 Directors’ Declaration 105 A u d i t o r ’s R e p o r t 110 Competent Person Statements 111 Annual Mineral Resource Statement 115 A d d i t i o n a l I n f o r m a t i o n ( A S X L i s t i n g R u l e s) 119 Corporate Director y 2024 ANNUAL REPORT H I G H L I G H TS 2023-24 A L L I G ATO R E N E R G Y I S A R E S P O N S I B L E A N D P R O G R E S S I V E U R A N I U M A N D E N E R G Y M E TA L S E X P L O R E R A N D E M E R G I N G P R O D U C E R Our aim is to discover, source and economically extract these needed commodities with an innovative approach, with either zero or minimal impact, and with positive value and experience for our stakeholders and communities. Alligator Energy’s Strategy Our strategy is focused and straightforward: • Advance the Samphire Uranium Project through resource growth, economic and environmental evaluation, field recovery trial and feasibility study, stakeholder engagement, initial offtake contracts, approvals, financing, and into in-situ recovery (ISR) production. • Identify and test highly prospective exploration targets at the Alligator Rivers and expand the Big Lake Uranium project discovery. • Evaluate, acquire or joint venture additional uranium or energy mineral assets in key target geographic regions. • Collaborate on the application of in-situ recovery as a mining technology and focus on adding value to our investment holding in EnviroCopper. • Continue to develop our nuclear utility customer relationships to enable future establishment of long-term offtake contracts at supportive pricing and economics for our Samphire Uranium Project. P A G E 03 2024 ANNUAL REPORT H I G H L I G H TS 2023-24 (CO N T I N U E D) Samphire Project, South Australia • Increased confidence level in the Mineral Resource Estimate at the Blackbush Deposit Infill drilling through to October 2023 (117 holes for a total of 10,062 metres) was successful in converting a further portion of the Inferred Category of the JORC Blackbush Mineral Resource Estimate (MRE) to Indicated Category: • ­ The Indicated MRE increased by 21% to 12.9Mlbs at an average grade of 754ppm U 3O 8, a 115% increase since commencement of resource drilling in 2022. • ­ 2.2Mlbs U 3O 8 was converted from Inferred to Indicated Resource category, with a corresponding drop in Inferred Resource of 2.9Mlbs. • ­ 74% of the metal in the total MRE is now classified as Indicated. At 250ppm cut-off grade, the Blackbush MRE now stands at an Indicated Mineral Resource of 12.9Mlbs at 754ppm and an Inferred Mineral Resource of 4.6Mlbs at 447ppm, totalling 17.5Mlbs at 640ppm U3O 8. • Exploration Target Range established outside of the Blackbush MRE envelope An Exploration Target Range estimate of 14Mlbs to 75Mlbs of contained eU 3O 8 (using 250 ppm eU3O 8 cut-off) was established during the first half of the financial year for areas outside of the Blackbush MRE envelope comprising extensions to Blackbush mineralisation, the Plumbush Prospect, and other areas of known historical uranium occurrences: P A G E 04 2024 ANNUAL REPORT H I G H L I G H TS 2023-24 (CO N T I N U E D) • • ­ calculating the Exploration Target Range, results show that with the then 64 kms of interpreted In host palaeochannel strike length, only 10% of the prospective system (Blackbush Deposit and portion of Plumbush Prospect) has been well explored, with a further 30% partly drill tested, and • ­ 58% (over 37 kms) of the prospective areas of the palaeochannel system remain completely untested, indicating the significant potential for new discoveries in the Project area. Updated Scoping Study in December 2023 which improved Project economics An increase in the confidence level of the MRE for Blackbush supported an update to the initial 1 Scoping Study in December 2023 incorporating a lift in the annualised in-situ recovery (ISR) Production Target from 1Mlbs pa to 1.2Mlbs pa, and an increased price assumption to US$75/lb. Key highlights from the updated study include: • ­ 69% increase to the post-tax NPV 8 to A$257M. • ­ Reduction in payback period by 30% to 2.45 years. • ­ Net project cashflow (post Capex and tax) increase of 52% to A$467M. • ­ 20% step-up in the steady state annual Production with only a minor 2% increase in capital expenditure forecast to A$131M. • ­ Favourable average cash operating costs (C1) of A$22.94/lb U 3O 8 (US$16.06/lb U 3O 8) with a range of A$21.79/lb - A$24.09/lb and All In Sustaining Cost (AISC) of A$47.58/lb U 3O 8 (US$33.31/ lb U 3O 8) with range of A$45.20/lb to A$49.96/lb. Study metrics* at US$75/lb uranium price A$131m 2.45 years CAPEX Payback (including contingency) 42% IRR* (post-tax, real, ungeared) A$257m NPV 8* (post-tax, real, ungeared) US$33.31/lb US$16.06/lb AISC Cash Costs (A$47.58/lb) (A$22.94/lb) Study metrics* based on analysts’ current long-term price projections of US$90/lb A$131m 1.93 years CAPEX Payback (including contingency) 55% IRR* (post-tax, real, ungeared) A$371m NPV 8* (post-tax, real, ungeared) US$34.06/lb US$16.06/lb AISC Cash Costs (A$47.58/lb) (A$22.94/lb) *Ref ASX release 14 December 2023 “Scoping Study Update”: Alligator confirms that all material assumptions underpinning the ‘production target’or the forecast financial information derived from the ‘production target’continue to apply and have not materially changed other than the outlook for the long-term uranium price as set out above; “Calculated using 0.70 US/A$ exchange rate inclusion of significant contingencies and inflation of 35%. 1 P A G E 05 AGE ASX Release 14 March 2023, https://wcsecure.weblink.com.au/pdf/AGE/02643151.pdf 2024 ANNUAL REPORT H I G H L I G H TS 2023-24 (CO N T I N U E D) • Preparation well underway for In-Situ Recovery Field Trial (proof of concept) at the Blackbush Deposit A Retention Lease (RL) is required for the purposes of conducting the Field Recovery Trial (FRT) at Samphire (Blackbush Deposit) with the latter targeted for early 2025. In August 2023, AGE submitted its full Retention Lease Proposal to SA Department for Energy and Mining (DEM) to conduct the pilot trial. A public review and consultation period for this proposal concluded late September 2023 with formal feedback received from DEM on 20 December 2023 regarding the public and various SA Government Department’s submissions. Further Whyalla community open day sessions were held in February 2024 to update stakeholders on our FRT plans, seek feedback, and engage openly and transparently around all aspects of our Project. The Samphire Retention Lease application continues to progress with lodgement of all information requested by the DEM relating to the consultation and conduct of the FRT, and a decision pending on the Retention Lease. Fabrication of the FRT pilot plant was completed by Adelaide Control Engineering (ACE) and the eight containerised plant modules including the reverse osmosis plant transported to Alligator’s Whyalla yard ahead of finalisation of all regulatory approvals and completion of site construction works. Expressions of interest for onsite construction of the Pilot Plant were received from five Whyalla based companies and a shortlisting process conducted post year end. • Resource Extension Drilling continued at the Blackbush Deposit for most of the year Resource extension drilling for the 2024 calendar year commenced in late January 2024 and continued for the remainder of the financial year after allowing for an eight-week shutdown during the pastoral lambing season in April/May 2024. The 2024 calendar year program is focused on drill testing areas outside of the Inferred Mineral Resource envelope and to date has identified: 2 • the Blackbush Northeast channel (~2kms from the Blackbush mineralisation) confirmed the presence of oxidised and reduced sands within the paleochannel – key ingredients for uranium roll front mineralisation. • Encouraging medium-high uranium grade intersections were encountered with Blackbush direct extensions (refer ASX release 17 July 2024 2). AGE ASX Release 17 July 2024, 02828751.pdf (weblink.com.au) P A G E 06 2024 ANNUAL REPORT H I G H L I G H TS 2023-24 (CO N T I N U E D) • Encouraging results from a ground gravity survey conducted to the south of both the Blackbush Deposit and Plumbush Prospect A ground gravity survey conducted in the June 2024 quarter has extended the known palaeochannels in the Project area from ~64 linear kms to around 90 linear kms. 72% of these channels have not been tested for mineralisation, indicating the significant potential for new discoveries. Alligator Rivers Uranium Projects – Tin Camp Creek, Beatrice and Nabarlek North, Northern Territory, Australia • A significant exploration program for 2023 was conducted at the Nabarlek North Project collecting valuable geological data. The initial focus has been on the southern portions of the tenure (red polygon) proximal to the U40 prospect, with exploration comprising: • IP geophysics, firstly in reconnaissance mode to quickly scan the area of interest, and then lineby-line targeting on a number of features north of the U40 prospect. • An aircore/RAB/auger drill sampling program through the overlying sediment cover to basement. In conjunction with similar works in 2022, this program has provided intensive geochemical assessment over a 12 by 6 km block in one of the most prospective portions of the tenure. • A small 1,398 m RC program to directly test for (i) possible northern extensions of the U40 mineralisation system immediately to the south of AGE’s tenure and (ii) several IP/geochemistry anomalies that were identified from work mentioned above. P A G E 07 2024 ANNUAL REPORT H I G H L I G H TS 2023-24 (CO N T I N U E D) • The RC drilling program made a significant uranium intersection, as reported in ASX release, 19 December 2023. Additionally, the aircore sampling program identified several anomalies outside of the U40 trend with either anomalous uranium or rare earth elements. These were prioritized for follow-up in 2024. • The 2024 field program for the Nabarlek North Project commenced in late June by re-surveying the entire tenement package with high resolution airborne magnetics and radiometrics at 100 m line spacing. • Further plans for 2024 include a 22- hole, 3,500 m reverse circulation drilling program targeting extensions to the 2023 intercept along strike from U40, high priority geochemical anomalies and structural analogues to nearby mineralisation systems. • Alligator was successful in two co-funding applications with the Northen Territory Geological Survey to partially cover the geophysical survey and RC drilling costs in the 2024 field program. Big Lake Uranium Project – Cooper Basin, South Australia P A G E 08 2024 ANNUAL REPORT H I G H L I G H TS 2023-24 (CO N T I N U E D) • A significant new uranium discovery declared post year end at the Big Lake Project An inaugural drilling program commenced late in the financial year with the objective of calibrating the seismic/AEM interpretations with the potential for existence of uranium roll-front systems. Delays due to unseasonal rain and additional hole-completion requirements meant that the proposed 40-hole program had to be curtailed back to 25 holes and was not completed by the end of the FY as planned. By 30 June 2024, twenty holes had been completed for a total of 2,476 m. Drilling at Site 10 on EL6367 returned very encouraging indicators of paleochannel sands and elevated uranium levels well above background values. A further six holes were drilled at the same site post year end, with a significant new uranium discovery declared in August 2024 . At time of writing planning was underway for a further cultural heritage clearance for a future drilling program in 2025. • Stakeholder engagement with indigenous group, pastoralists and other tenement holders was ongoing during the year. • Prospectivity review for the entire Cooper Basin is ongoing, including analysis of all available drill hole databases for potential indicators of uranium source, migration and deposition. Energy Minerals – Piedmont Ni-Co Project, Northern Italy • The Company decided in early 2024 that the Piedmont Project was a non-core asset and consequently an information memorandum was prepared seeking acquisition interest from nickel/copper investors. The sales process was ongoing at financial year end. Corporate • Significant institutional, sophisticated investor and Shareholder capital raising support The Company completed an institutional and sophisticated investor share placement to raise $25.5M, before offer costs, in September 2023 to enhance the Company’s uranium development activities including study completion and mining lease application as well as expanded resource drilling and geophysics program at Samphire. Shareholders were offered a Share Purchase Plan (SPP) under the same terms as the institutional and sophisticated investor placement. The SPP offer raised a further $3.26M before offer costs. In late November 2023, the Company issued 273,961,390 premium priced options under the terms of both the Placement completed in September 2023 and the SPP outlined above. The options are exercisable at $0.078 each at any time before 28 November 2025. AGE successfully applied for quotation of the Options with ASX which now trade under the code AGEOC. 3 - Significant uranium discovery at the Big Lake Project – ASX release 12 August 2024 P A G E 09 2024 ANNUAL REPORT H I G H L I G H TS 2023-24 (CO N T I N U E D) • Strategic investment and funding arrangement agreed with EnviroCopper Limited under the Group’s energy minerals strategy In January 2024, the Company finalised agreements for an initial investment commitment of $900k in EnviroCopper Ltd (ECL), an unlisted company undertaking early-stage copper ISR test work and trials on two oxide copper projects in South Australia. Alligator currently has the sole funding right to optional future investments in ECL up to 50.1%. The investment in ECL and resultant collaboration is extremely complimentary to Alligator’s existing and substantial in house ISR expertise and expands Alligator’s ISR footprint to include an additional future in-demand commodity, copper. A technical advisory committee has been formed enabling Alligator to assist ECL with its planned in-situ trial work across all projects and an ability to jointly apply any IP that is developed. • Sales and Marketing arrangements expanded to include investor relations and business development in North America in particular Alligator’s uranium sales and marketing agency arrangements have been formally transferred from Traxys North America (Traxys) to Sabasco Ventures LLC, a company controlled by Kevin Smith the principal uranium trader for Traxys. Kevin’s consulting role with Alligator under the new arrangement has been expanded to include investor relations and business development. He will also be continuing his uranium and energy minerals trading role for Traxys as a consultant. • Evaluation of a range of additional uranium and energy minerals opportunities continued during the year. • Mr Callum McIntyre was appointed as an alternate Director for Mr Peter McIntyre. P A G E 10 2024 ANNUAL REPORT CHAIRMAN AND CHIEF EXECUTIVE OFFICER’S LET TER TO SHAREHOLDERS On behalf of the Board, we would like to thank investors for their support during a critical year for Alligator Energy that has seen our flagship asset Samphire approach trial production, pending approvals; a new greenfield discovery made at Big Lake; and encouraging exploration results at Nabarlek North. A successful raising and SPP enabled the Company to finish the year with a strong cash balance of $28.4 million. At our Samphire Project, resource infill drilling increased the confidence level in the resource at Blackbush, with 74% of the 17.5Mlbs total resource estimate now placed in the indicated category. This increased confidence allowed us to significantly improve the metrics of our scoping study. This included a boost to annualised production to 1.2Mlbs p.a. (from 1.0Mlbs p.a.), a 69% increase to the post-tax NPV 8 to A$257million, with just a 2% increase in capital expenditure to A$131 million 1. We were also pleased to report a maiden exploration target range of up to 75 million pounds, based on the known mineralised channels only, which is about 30% of known palaeochannels. The target included extensions to the Blackbush deposit, the Plumbush Prospect, and other areas of known mineralisation. Subsequently, a heritage survey with representatives from the Barngarla Determination Aboriginal Corporation was carried out for drill testing of areas outside of the defined Blackbush resource. This has already delivered encouraging uranium extensions with drilling continuing through the 2024 calendar year, leading to a planned resource upgrade by January 2025. Significant potential remains here, given the 90kms of known palaeochannels in the Samphire Project, with ~70% of these still unexplored. Over the course of the financial year, it was exciting to watch the offsite fabrication of the Field Recovery Trial (FRT) pilot processing plant by Adelaide Control Engineering. Following factory acceptance testing of the ion exchange and wellhouse modules, the plant was transported successfully to Alligator’s Whyalla storage facility. The plans for on-site construction and commissioning are ready to initiate, pending the approval of the Retention Lease and supporting Program for Environment Protection and Rehabilitation plan (PEPR). The granting of this Retention Lease to conduct the FRT was a key focus through the year, and progress has been steady and encouraging through a constructive ongoing dialogue with the SA Department for Energy and Mining (DEM). Alligator has provided the DEM with formal responses to matters that arose from the public and government departmental consultation, and in Q2 2024 has provided additional responses to DEM requests for further clarifying questions. At time of writing, we look forward to reaching a successful conclusion. It was exciting to progress at our Big Lake Uranium Project in the Cooper Basin toward maiden drilling during the year, which culminated in a significant new Australian greenfields uranium discovery. During 2023 a pre-clearance reconnaissance/logistics field trip was conducted with Yandruwandha Yawarrawarrka Traditional Landowners, prior to a cultural heritage survey of proposed 2024 drill lines. 1 ASX release 14 December 2023 https://wcsecure.weblink.com.au/pdf/AGE/02753924.pdf P A G E 11 2024 ANNUAL REPORT C H A I R M A N A N D C H I E F E X E C U T I V E O F F I C E R’S L E T T E R TO SHAREHOLDERS (CONTINUED) After approval of a Program for Environmental Protection and Rehabilitation for the initial drilling program, we engaged a drilling contractor for the inaugural drilling campaign. Post year-end, four air-core holes hit palaeochannel sand units hosting anomalous uranium mineralisation over significant thicknesses up to 20 metres. While lower grade at this stage, the grade x thickness (GT) measure is around the current economic cut off for the Samphire project, indicating the broad potential in the area. We hope this has the potential in time to develop into a new ISR amenable uranium field, like the Curnamona Province which hosts the Beverley, Four Mile and Honeymoon deposits. Alligator also delivered encouraging findings during the year at the Nabarlek North Project in the Alligator Rivers Uranium Province (ARUP) in the Northern Territory, with a 1,398m RC drill program returning a 3m intersection at 1,200ppm (along trend from the U40 Prospect which has previously reported hits including 6.8m @ 6.7%). Following this, a high resolution airborne magnetic and radiometric survey was completed, and post year end around 40 RC holes were drilling to test key targets. At time of writing assays from this drilling were pending. During the year, the company also invested $0.9million in EnviroCopper Ltd, an unlisted company undertaking early-stage copper ISR test work (with a reported copper project portfolio of over 180kt Cu resource 2) and trials on two oxide copper projects in South Australia. A successful push-pull trial was undertaken at ECL’s Kapunda Project, producing first copper in solution and taking this through to both copper cake and pure copper product. With the high level of research, modelling and testing that the ECL team are undertaking on copper ISR, we see innovative growth potential in a future in-demand metal. Also with the Samphire team’s high level of operating ISR experience, we see excellent synergies in the potential the strategic ECL investment offers. Over the course of the financial year, the uranium spot price increased from ~US$53/lb up to ~US$81/ lb at the time of writing, an increase of over 50%, with the price briefly reaching as high as US$106/ lb in January 2024 during a period of heightened trading activity. With the level of long-term uranium contracting by nuclear utilities increasing, the long-term uranium price has also increased, starting the year at ~US$56/lb and finishing at ~ US$80/lb. A number of macro drivers continue to support the current uranium market. These include nuclear energy being formally included in the final COP agreement at COP28, with 22 countries committed to a tripling of nuclear power capacity by 2050 to support achieving Net Zero. This formal recognition has the potential to significantly add to the future demand profile for uranium fuels and support stronger long-term pricing. 2 ASX release 18 December 2023 https://wcsecure.weblink.com.au/pdf/AGE/02755054.pdf P A G E 12 2024 ANNUAL REPORT C H A I R M A N A N D C H I E F E X E C U T I V E O F F I C E R’S L E T T E R TO SHAREHOLDERS (CONTINUED) The US remains the largest market for uranium globally, and significant, and growing fiscal support for the US domestic nuclear industry is likely to support additional future demand, as well as foster the development of a domestic nuclear fuel industry. US support had a political angle during the year as well, with the US signing sanctions on Russian EUP imports. There has also been a growing narrative around nuclear energy’s suitability as a source of low-cost, reliable, steady-state power for data centres, exemplified by Amazon acquiring a data centre which it will power with a nearby nuclear power plant and recently a unit of Pennsylvania’s Three Mile Island nuclear plant will be restarted as part of a new energy-sharing agreement with Microsoft, which plans to use it to power the data centres it operates as part of its push into artificial intelligence. The trend is for larger data centres, with the industry already predicting the construction of 2 gigawatt datacentres. This additional demand is starting to positively impact the projections for US national power use in coming years. Tightening the supply profile, the world’s largest producer, Kazatomprom, has guided several times to lower future uranium production due to ongoing acid supply shortages; and Cameco likewise announced their annual production would be significantly reduced. A coup in Niger during the year has been curtailing production from this key producing region as well. During the year, the company successfully raised $29.1 million, through a $25.5million institutional and Sophisticated Investor share placement, and a further $3.26million via a Share Purchase Plan. Cash as of June 30 2024 was $28.4 million. On behalf of the Board, we thank all Traditional Owners, communities, and pastoralists whose lands we have operated upon, all stakeholders for their loyalty and support, and the extended and growing Alligator team for their excellent work and ongoing commitment. Paul Dickson Chairman 2 October 2024 P A G E 13 Gregory Hall CEO and Managing Director 2 October 2024 2024 ANNUAL REPORT TENEMENT REGISTER Alligator Group Tenure holdings at Year End: TITLE NO TITLE NAME TITLE HOLDER AGE % SIZE KM2 S TAT E S TAT U S ARUP (NT) Uranium EL24921 Tin Camp Creek TCC Project P/L 98 76.79 NT Granted EL24922 Tin Camp Creek TCC Project P/L 98 194.59 NT Granted EL25002 Tin Camp Creek TCC Project P/L 100 11.55 NT Granted EL24291 Beatrice Alligator Energy Ltd 100 337.21 NT Granted EL26796 Beatrice Alligator Energy Ltd 100 19.77 NT Granted EL27252 Nabarlek North 100 6.75 NT Granted EL27253 Nabarlek North 100 5.61 NT Granted EL28389 Nabarlek North 100 110.83 NT Granted EL28390 Nabarlek North 100 33.58 NT Granted EL29991 Nabarlek North 100 26.87 NT Granted EL29992 Nabarlek North 100 63.81 NT Granted EL29993 Nabarlek North 100 57.06 NT Granted EL31480 Nabarlek North 100 188.44 NT Granted EL26793, EL26794, EL26794 Beatrice Northern Prospector P/L Northern Prospector P/L Northern Prospector P/L Northern Prospector P/L Northern Prospector P/L Northern Prospector P/L Northern Prospector P/L Northern Prospector P/L Alligator Energy Ltd 100 123.88 NT Application EL27777, EL27778, EL28176, EL28293, EL28315, EL28863, EL28864, EL28865, EL28950, EL31452, EL31453, EL31454, EL32075, EL32389, EL32390, EL32391 Various Northern Prospector P/L 100 907.44 NT Application P A G E 14 2024 ANNUAL REPORT TENEMENT REGISTER (CONTINUED) TITLE NO TITLE NAME TITLE HOLDER AGE % SIZE KM2 S TAT E S TAT U S Eyre Peninsula (SA) Uranium EL5926 Samphire S Uranium Pty Ltd 100 332 SA Granted EL6350 Samphire S Uranium Pty Ltd 100 38 SA Granted EL6835 Samphire S Uranium Pty Ltd 100 61 SA Granted EL6901 Samphire S Uranium Pty Ltd 100 119 SA Granted Big Lake Uranium Pty Ltd Big Lake Uranium Pty Ltd 100 818 SA Granted 100 841 SA Granted Big Lake Uranium Pty Ltd Big Lake Uranium Pty Ltd Big Lake Uranium Pty Ltd Big Lake Uranium Pty Ltd Big Lake Uranium Pty Ltd 100 877 SA Granted 100 978 SA Granted 100 939 SA Granted 100 994 SA Granted 100 975 SA Granted Ivrea Minerals Pty Ltd KEC Exploration Pty ltd KEC Exploration Pty ltd AGE EV Minerale SrL 51* 16.50 PIE (Italy) Granted 51* 13.50 PIE (Italy) Re-Application 51* 5.66 PIE (Italy) Not Renewed 51* 3.77 PIE (Italy) Re-Application AGE EV Minerale SrL 100 36.78 PIE (Italy) Re-Application Cooper Basin (SA) Uranium EL6367 Big Lake EL6847 Big Lake EL6848 Big Lake EL6849 Big Lake EL6902 Big Lake EL6903 Big Lake EL6904 Big Lake Piedmont (NW Italy) Ni-Co – JV P38V Laghetto P39V Gavala P29V Galerno P0044V Valmaggia Piedmont (NW Italy) Ni-Co – AGE P0042V P A G E 15 Sella Bassa 2024 ANNUAL REPORT PROJECT LOCATIONS I TALY N T, AUS T R AL IA Piedmont NW Ni-Co-Cu-Au-PGEs Alligator Rivers (ARUP) High Grad U SA , AUS T R AL IA Investment in EnviroCopper Ltd Copper ISR S A , AUS T R AL IA Samphire ISR style U P A G E 16 SA , AUS T R AL IA Big Lake (Cooper Basin) ISR style U 2024 ANNUAL REPORT MARKET OUTLOOK FOR URANIUM AND NUCLEAR G ROW T H – O C TO B E R 2024 The uranium market is entering a new phase of growth, driven by the increasing demand for nuclear energy as part of the global energy transition toward cleaner, low-carbon power sources. With climate change concerns and net-zero emission targets becoming top priorities for governments worldwide, nuclear energy is gaining renewed attention due to its ability to provide stable, carbon-free electricity. Countries like China, India, and Russia are leading the expansion of nuclear power, while regions like Europe and North America have and are reconsidering their energy strategies in favor of nuclear, especially in light of energy security concerns following geopolitical conflicts like the Russia-Ukraine war. Figure 4. UxC Nuclear Generating Capacity Overview Forecast, 2010-2050 Demand for uranium is expected to rise steadily over the next decade as the number of nuclear reactors grows. Currently, there are over 440 reactors operating globally, and more than 50 new reactors are under construction, with substantial investments planned in emerging markets. Small modular reactors (SMRs**), which offer safer, more flexible, and cost-efficient alternatives to traditional reactors, are also poised to drive demand for uranium as they become more commercially viable. Global Reactor Growth Status Q3-2024 P A G E 17 UNITS Mwe AVG SIZE (Mwe) Operating Reactors 438 394,688 901 Under Construction 63 67,213 1,067 Planned 74 61,211 827 SAMRs*** 66 10,465 2024 ANNUAL REPORT MARKET OUTLOOK FOR URANIUM AND NUCLEAR G ROW T H – O C TO B E R 2024 (CO N T I N U E D) ** SMR – Small Modular Reactor – ranging from 50 to 300MW and generally modular in nature, ie can be readily grouped / added to increase output. *** SAMR – Small, Advanced and Micro Reactors – encompassing a broader range of size and technologies than just SMRs – size ranging from 10 to 300 MW. On the supply side, the uranium market has been constrained by earlier production cuts and under investment from key players such as Kazakhstan, Cameco, and Orano, which reduced output