Alpha Minerals Inc ESOFD

From Energy reportl; Rob Chang

[Varadero]

Moving further down the chain, we like the 50/50 Fission Uranium Corp. (FCU:TSX.V) and Alpha Minerals Inc. (AMW:TSX.V) joint venture of Patterson Lake South in the southwest corner of the Athabasca Basin. This is probably the most exciting story in the uranium space right now, in terms of news flow and stock price movements. Even though it doesn’t have a resource yet and it’s less than a year old because the initial discovery was in November, the drill results that have been produced to date point to a potentially world-class project. There are currently four zones identified. Based on drilling results and our analysis of the assays to date, our back-of-the-envelope calculation estimates about 50 Mlb at that project already, with significant upside potential. So we’re very excited about seeing the development of this likely world-class project.

Recently, Fission Uranium and Alpha Minerals announced an LOI by which Fission will acquire Alpha for 5.725 shares of Fission for 1 share of Alpha ($7.67 per share of Alpha). We believe this is an excellent outcome for shareholders of both companies as it unlocks the potential for the acquisition of Patterson Lake South by either Cameco or Denison now that the ownership structure has been cleaned up. In addition, shareholders of each company will receive shares in spincos for the respective companies. This will unlock the value of the portfolio of assets Fission and Alpha are currently holding, which the market is assigning zero value to currently.