Bannerman Energy Ord Shs BNNLD

SCOPING STUDY RELEASED

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HIGHLIGHTS

• Primary outcome of recent scaling evaluation work on Etango; provides an alternate, streamlined development model to the 20Mtpa development assessed to DFS level in 2015
• Demonstrates the strong technical and economic viability of conventional open pit mining and heap leach processing of the world class Etango deposit at 8Mtpa throughput
• Life-of-mine (LOM) production of 51.1 Mlbs U₃O₈ (48.5 – 53.7 Mlbs) with annual average production of 3.5 Mlbs U₃O₈ (3.4 – 3.7 Mlbs)
• Forecast pre-production capital expenditure of US$254M (US$241 – 267M), delivering an attractive upfront capital intensity of approx. US$71/lb average annual U₃O₈ production
• Life-of-mine of approx. 14 years (114.1 Mt plant feed at 232 ppm U₃O₈)
• Average final product cash operating cost (ex-royalties) of US$37/lb U₃O₈ (US$36 – 39/lb)
• Attractive projected economics at forecast US$65/lb U₃O₈ realised price:
  • Ungeared, real, post-tax NPV8% of US$212M (US$201 – 223M)
  • Post-tax internal rate of return (IRR) of 21.2% (20.1 – 22.3%) and payback of 3.6 years
  • Forecast net project cashflow (post-capex, post-tax) of US$604M (US$574 – 634M)
• Further upside potential from:
  • Future life extension and/or scale-up expansion
  • Additional processing efficiency and cost opportunities
• Vast body of previous technical work enables fast-tracking of feasibility studies; all resource drilling, geotechnical, metallurgical and environmental work already complete
• Heap leach process route has also been comprehensively de-risked via operation of the Etango Heap Leach Demonstration Plant
• Bannerman Board has approved commencement of a Pre-Feasibility Study (PFS) with completion targeted for Q2 2021
• Long-term scalability of Etango Project (up to 20Mtpa) confirmed by previous definitive level studies; provides strong optionality and leverage to upside-case uranium market