[Music] Welcome to CEO Insights. I'm Marilyn Deusman with investingnews.com. I'm speaking with Brooke Clement, president and CEO of Northshore Uranium. Welcome, Brooke. >> Thank you, Marilyn. Good to see you again. >> Yeah, good to see you. So, let's talk about the most recent announcement you made about the execution of a binding term sheet for an option on the Rio Porco uranium project in New Mexico. Can you provide some highlights of the transaction and why this acquisition


matters for the company and its shareholders? >> Sure. Rio Parkco is located in the Grants Uranium District in northwestern New Mexico about 50 kilometers northwest of Albuquerque. The Grants District is the most prolific producer of uranium in the United States. It produced over 340 million pounds of U308 between 1950 and 2002. And our real PCO project holds a significant historical uranium resource of 6 million tons at a grade of 09% U308 for uh a total of about 11.4 4 million pounds of U308. There's been no


significant work done on the project since the 1970s. We see this as an excellent opportunity to acquire a historic resource, validate it to modern standards, assess whether it is amanable to inset to recovery or ISR extraction and then ultimately assess the economic viability of the resource. And before I go on, I just want to make it clear that the historical resource at Rio Puerto is not current and not to Canadian NI43101 standards. It has not been verified by a qualified person on our behalf. Now, the


transaction, we plan to meet conditions by August 31st that will allow us to complete a transaction that will give us an option to earn up to an 87.5% interest in the real project from Resurrection Mining, who's a private US company. To earn that 87.5% interest requires approximately 4.8 8 million Canadian in total compensation over a 5-year term. Of that 4.8 million, 3.25 million are exploration expenditures. Rio Pleroco will give us an instant cost effective exposure to a uranium resource. We think the


transaction is good value for the number of pounds of uranium in the ground. And with Rio Parkco, we now have exposure to two highly to uranium projects in two highly prospective jurisdictions. Grants in New Mexico in the Aabaska basin in Saskatchewan. And this is all at a time when the nuclear sector is heating up and more people are watching it. >> Right? So let's talk let's talk about that a little bit. So ura speaking of uranium in the US the US has you know as you know it has some US uh uranium


production but it currently relies heavily on imports for its nuclear energy uh needs. This the US government but has recently made some pronouncement to stimulate development of more nuclear capac nuclear energy capacity and increase domestic production. Do you think this support can have a significant impact on storing uh shoring up domestic uh uranium production and how does it uh help projects like the Rio Porco? >> Yeah, I do. You know, in 2024, the US produced only 670,000 pounds of youth of U308 concentrate.


That's less than 2% of their needs for domestic nuclear power plants. Virtually all US uranium is imported with about a quarter of that coming from Canada. And with recent commitments by the US to triple nuclear power generation capacity by 2050, there's really a big push to stimulate domestic production of uranium. And as most people know, on May 23rd of this year, President Trump issued four executive orders aimed at reinvigorating the US nuclear energy sector. And one important pillar of


those executive orders was to maximize domestic production of uranium, which is specifically domestic mining and enrichment. And there's a commitment to streamline the regulatory process for permitting projects, which, you know, should make it quicker and more efficient for companies like us with projects on public land to permit projects. And there's already one example of expedited permitting. Anfield's velvet wood uranium venadium project in Utah recently was given federal approval. So there are living


examples. We think it should streamline things. >> Yeah, that's certainly going in the right direction. Um you've mentioned earlier some of the resource um for the Rio PCO. Aside from the stuff that you've already mentioned, what makes it a really a compelling project for your for your company? >> Well, really the main thing is something I've mentioned. It's a great opportunity to upgrade a significant resource to modern standards and assess economic viability on a project that's really had


no significant work since the 1970s. It was discovered in 1968. And in the 1970s, Ker McGee, who was a big uranium company at the time, drilled over 1,000 holes. They they defined a resource which they classified as a reserve, and they began developing an underground uranium mine. They had plans for a 500 ton per day mine, but stopped developing it after a trial mining phase in 1979 when the price of uranium dropped dramatically. Okay. There's been virtually no there was virtually no significant


work in the Rio Puerto area except for four exploration holes in a few studies until the mid 2000s when it was acquired by an Australian company. That Australian company took the Ker McGee data generated in the7s and they defined a historical uranium resource of 11.4 million pounds of U308 at a depth of about 250 m. And the company had ambitious plans to go do a lot of drilling, expand the resource, confirm everything. But the downturn in the uranium market that started in 2008 really led to them not be to cease work


and not ever even mounting a drill program. So the project has been sitting there ever since the late 2000s waiting for us. And you know the historical resource is on only one portion of the claim block. And there's a potential to expand that resource. And our goal is to validate and upgrade the historical resource to 43101 compliance status through drilling and geologic modeling. And there are some characteristics of the mineralized zones that suggests that it could be amanable to ISR extraction.


And again, ISR can be much more cost effective than conventional underground mining. >> And aside from the Rio Perco, you also have your existing projects in the Atabaska basin. Maybe uh it's a good time for our investors to know more about that. Could you give an overview of your projects in the Atabaska Basin? >> Sure. With Canada's only two producing uranium mines and several development stage pro projects, the Aabaska basin is the most most prolific uranium exploration jurisdiction in the world.


Almost the whole thing's staked and people are drilling everywhere. The government is very supportive of the uranium industry and Saskatchewan is a fantastic example of successful collaboration between uran the uranium exploration and mining industry and local communities. Really great examples of that. We have two projects at the eastern margin of the Aabaska basin. the 4500 Hector West Bear project which is a partnership with Gem Oil and our lead project Falcon which is a partnership with Sky Harbor Resources.


Falcon is 55,000 hectares in size and it's 30 kilometers east of the former Key uranium mine and currently active Keite Uranium Mill. The mill actually processes ore from the MacArthur River mine using highquality electromagnetic and magnetic data that was generated in the mid 2000s and data from airborne gravity surveys that we flew in 2022. We've defined 36 uranium targets at Falcon and our priority is to evaluate to target targets that have never seen drilling before. about half of the


property through 2008 had been evaluated by drilling, but again with the downturn in the uranium price and late 2000, the drilling stopped. So, we're working on the south half of the property where there's been no drilling. And in 2004, at the first two holes we drilled, P3 and P8, we hit near surface uranium mineralization with multiple samples that ran over 300 ppm U308, which is pretty good for an initial drill program. These these two newly defined mineralized sites help us define what we believe is a new


potential mineralized corridor. And our focus now is drilling new targets along that corridor. And we are hoping to drill at least five in our next drill program. We have a drill permit that is valid till 2027 at Falcon. We have an exploration agreement with the English River First Nation and we have a great partner in Sky Harbor Resources who really provides a lot of very valuable technical guidance. Is the plan then to advance both sorry all your projects both in Rio in um in Rio Porco and uh


the Falcon projects simultaneously. >> Yes, it is. We think it's great to have exposure to two projects in two great jurisdictions but different jurisdictions and the projects have quite different characteristics. At Rio Puerto there is a known resource and our job there is to validate the resource, attempt to grow it and ultimately prove up economic viability in the Aapabasca basin. We're looking for an exploration home run. One drill hole that could represent the beginning of a major new


discovery. We are working to drill highquality targets that have never been drilled before in a zone that has proven uranium and favorable alteration. So, the home run is what we're looking for in the Aabaska. >> So, what uh for the rest, you know, looking for the rest of the year uh 2025, what are some of the near-term milestones, upcoming catalysts that investors can expect from the company? >> Yeah. Before August 31st at Real Parker, we're going to meet the conditions that


will allow us to complete a transaction and begin earning into the project. When we get to work, we're going to start using the existing drill data that defines the mineralized zones and build 3D models of the deposit. We'll use those 3D models to plan our first drill program, which will be aimed at validating this historical data. We will also start assessing the amanability of the deposit to ISR extraction. And at Falcon, as we speak, we are preparing to mount a prospecting program later this summer that will set


the table for a drill program where we hope to drill at least five targets. >> So with all these uh you know, having said um made your case about your projects, can you articulate what makes Northshore uranium a good investment opportunity? Yeah, with the world waking up to the benefits of nuclear energy and a projected supply demand imbalance that is imminent, the world needs to prove up more uranium resources and make more uranium discoveries. It looks to me like a uranium bull market era is coming and that will be good for


uranium explorers like us and our exposure to two worldclass uranium districts offers us great opportunities. We have a real solid plan on how to add value for shareholders at those two projects and we have a great team. I've spent most of the last 25 years working on exploration programs in northern Canada, mostly in jurisdictions like Saskatchewan. Blake Steel is is an adviser and founding investor and he has deep ISR experience. He was a CEO of a company Aar resources that was sold to Encore Energy in 2022 for its I US ISR


assets. Uh Alex Molyneu is a supportive founding investor and one director Jimmy Tom was the former exploration manager for Paladin Energy and he has deep uranium expertise and Alex Mullyu was the former CEO of Paladin Energy. So, and finally, I believe, you know, at a market cap of just under 2 million, we are undervalued and we represent good exposure to the uranium sector relative to our peers given our quality projects and we plan to be very busy. So, stay tuned, please. >> Well, there you have it. Brook Clemens


from Northshore Uranium, thanks again for taking the time to speak with me. >> Thank you, Mariline. And for our investors watching, uh, give us a comment. What do you think? Uh, is this now the right time to invest in uranium? Uh, let us know what you think in the comments below. And thanks again for watching. And join us again next time for another edition of CEO Insights.