Nexgen Energy Ltd T.NXE

Haywood Securities comments on NexGen Energy Limited

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According to Haywood Securities:

https://is.gd/MX59TI

NexGen Energy Ltd. (NXE, $0.65)

Not Rated

NexGen Confirms High-Grade Potential within the A2 & A3 Extension Zone

A2 and A3 Zones Extension Zones Continue to Deliver - NexGen released scintillometer results of drilling from its 2015 summer program at Arrow, located within the Company's 100% owned Rook I property in the Athabasca Basin, Saskatchewan (Exhibit 1). The latest results support the results of very promising extension drilling released by the Company earlier this month, which successfully extended the A2 and A3 Zones by approximately 200 metres to the southwest. Of the latest set of drill results from Arrow, hole AR-15-54c1 returned 68.5 metres of total composite mineralization including 10.35 metres greater than 10,000 counts per second (cps) radioactivity within a 302.5 metre section, confirming the presence of high-grade mineralization within step-out hole AR-15-51 (see Mining Flash, August 5, 2015). On the back of the latest expansion drill results, NexGen have increased their on-going summer 2015 drilling program by 5,000 metres to 30,000 metres, so additional infill drilling can be conducted within the expansion zone and ultimately be included in a maiden 43-101 compliant resource estimate scheduled for Q1/16. Other highlights from the latest drill results are given below (see Table 1 for details):

- Hole AR-15-56c1 intersected 125.0 metres total composite mineralization including 10.95 metres of >10,000 cps radioactivity between 550.0 and 935.5 metres and is an 81 metre step-out up-dip and southwest from AR-15-44b. This hole confirms the high-grade mineralization intersected in hole AR-15-48c2 (Exhibit 2, 3).

- Hole Ar-15-54c2 intersected 114.0 metres of total composite mineralization including 5.85 metres of >10,000 cps radioactivity between 521.0 and 828.0 metres and is a 105 metre step-out up-plunge, southwest from AR-15-44b. This hole confirms the high-grade mineralization intersected in adjacent hole AR-15-51, which represented a 100 metre step-out to the southwest from hole AR-15-44b on the A2 shear and a 200 metre down-plunge step-out to the southwest from hole AR-15-48c1 on the A3 shear (Exhibit 2, 3, 4).

- Hole AR-15-53c3 intersected 59.0 metres of total composite mineralization including 5.5 metres of >10,000 cps radioactivity between 549.5 to 892.0 metres and is a 155 metre step-out down-dip from AR-15-44b drilled adjacent to hole AR-15-54. A pilot hole (AR-15-53c2) was also drilled off AR-15-53c3 to test the up-dip extension of high grade mineralization intersected in AR-15-39w1 (1.85% U308 over 26.0 m in the A2 shear). Hole AR-15-53c2 returned 61.5 metres of total composite mineralization including 6.55 metres of >10,000 cps radioactivity between 439.5 and 655.0 metres (Exhibit 2, 3, 4).

The mineralization footprint of the Arrow Zone stands at an area of 645 metres by 215 metres, with a vertical extent of 820 metres that commences at 100 metres below surface (Exhibit 2). Today's results support the high-grade mineralization intersected in the expansion drilling results released earlier in the month, and increase confidence that mineralization is continuous, particularly up-dip and up-plunge of the A2 and A3 shears.

Mineralization at Arrow remains open both to the northeast and southwest (Exhibit 2). As indicated above, NexGen plans on releasing a maiden NI 43-101 complaint resource estimate for Arrow in Q1/16, and has expanded its drill program accordingly to complete the necessary infill drilling required to include the southwest extension zone into the resource estimate.With the latest drill results providing confirmation of mineralization along the southwest extension of the A2 and A3 zones, we anticipate further drilling to not only confirm the mineralized extension between the holes completed to date, but also provide additional step-out drilling to increase this size potential even further.

Implications: NexGen have successfully followed up on the initial drill results from the southwest extension released earlier this month. Importantly, the results suggest that mineralization is continuous, although more drilling within the extension zone is required to determine the extent of continuity within the A2 and A3 zones.The mineralization footprint of the Arrow zone remains at 645 metres by 215 metres; however, mineralization remains open indicating this footprint may expand further with additional extensional drilling. The announcement of an increased drill program from 25,000 metres to 30,000 metres will aid in providing additional drilling within the extension zone so it can ultimately be included in a maiden resource estimate early next year. We note that the timeframe for the maiden resource estimate has been pushed back from late this year to early next year, likely in recognition of the density of drilling required within the newly discovered expansion zone to achieve NI 43-101 compliance. NexGen have five drill rigs on site, and follow-up drill results aimed at further delineation of the high-grade extension plus additional step-out drilling are expected soon.