UEX Corp T.UEX

Sprott March 29th

[reiter15]

Today’s exploration results at Waterfound, 64% owned and operated by Orano but with a 12.9% UEX
shareholding are indicative of a highly prospective 20km plus trend of unconformity deposits that includes
Iso’s electrifying Hurricane Discovery, Cameco’s Larocque project, and now today’s unconformity style
exploration results that included 3.9m @ 5.9% U3O8 and 9m @ 0.99% U3O8. For UEX, this highlights that
i) excluding the implied value of Wheeler River and Millennium, UEX is trading at ~C$50m mcap, similar to
early stage Athabasca explorers; 2) unlike the majority of new Athabasca juniors, UEX holds ground in the
major trends and exploration camps in the eastern and western Athabasca, and 3) with >3,000km2 of
exploration ground, UEX has 10x the exploration ground of a typical explorer in addition to better access
to the prime Athabasca camps. We reiterate our BUY Rating and C$1.15/sh price target based on our
unchanged SOTP in-situ valuation (C$9/lb for Millennium and Wheeler River, C$3/lb for Shea Creek,
Christie Lake and Kiggavik and C$2/lb for other resources). Stepping back, we think there is significant
opportunity to daylight value through JVs to increase the pace of exploration on the landholdings. The
thesis for UEX is the company provides exposure to the best place to explore for uranium: The Eastern and
Western Athabasca, at bargain basement entry cost and backstopped by the stakes in Wheeler River and
Millennium.

https://www.sprott.com/media/5059/220329-scp-uex-waterfound.pdf