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Arrow: A Rapidly Growing Uranium Discovery | April 2015
Disclaimer Information Contained In This Presentation
This presentation is a summary description of NexGen Energy Ltd. (“NexGen” or the
“Company”) and its business and does not purport to be complete. This presentation is
not, and in no circumstances is it to be construed as, a prospectus, an advertisement,
or a public offering of securities. No securities regulatory authority or similar authority
has reviewed or in any way passed upon the document or the merits of the Company’s
securities and any representation to the contrary is an offence.
Except where otherwise indicated, the information contained in this presentation has
been prepared by NexGen and there is no representation or warranty by NexGen or
any other person as to the accuracy or completeness of the information set forth
herein. This presentation includes information on adjacent properties that was
obtained from various publicly available sources referred to herein and the accuracy
and completeness of such information has not been verified by NexGen. Except as
otherwise stated, information included in this presentation is given as of the date
hereof. Neither the delivery of this presentation nor any sale made under the terms
described herein shall imply that the information herein is correct as of any date after
the date hereof.
All dollar amounts referenced herein, unless otherwise indicated, are expressed in
Canadian dollars.
Cautionary Note Regarding Forward-looking Information
Statements contained in this presentation that are not current or historical factual
statements may constitute “forward-looking information” within the meaning of
applicable securities laws including statements with respect to the properties, a
concurrent financing, our plans for exploration and development of our properties and
our financial condition, operations and prospects. The forward-looking information
reflects current expectations regarding future results, performance or achievements
and speaks only as of the date of this presentation. When used in this presentation,
forward-looking information can be identified by such words as “may”, “will”, “expect”,
“believe”, “plan”, “project”, “anticipate”, “intend”, “estimate” and other similar
terminology. Such forward-looking information involves known and unknown risks,
uncertainties and other factors that may cause the actual results, performance or
achievements of the Company to be materially different from any future results,
performance or achievements expressed in or implied by such information. Such risks,
uncertainties and other factors include, but are not limited in any manner to those risks
set forth in this presentation under the heading “Risk Factors”, including, the risk that
no mineralization will be identified on the Radio and Rook I properties; the Company’s
dependence on third party financing; the Company’s limited operating history; risks
inherent in exploration activities; environmental and safety risks including increased
regulatory burdens; unexpected geological or hydrological conditions; a possible
deterioration in political support for nuclear energy; changes in government regulations
and policies, including trade laws and policies; demand for nuclear power; failure to
obtain necessary permits and approvals from government authorities; weather and
other natural phenomena; and other exploration, development, operating, financial
market and regulatory risks. The foregoing list of factors is not exhaustive.
The forward-looking information contained in this presentation requires management to
make certain assumptions including with respect to the financing and its ability to
successfully develop its properties. Although management of the Company believes
that the assumptions underlying, and the expectations reflected in, the forward-looking
information are reasonable, significant risks and uncertainties are involved in such
information. Management can give no assurances that its assumptions, estimates and
expectations will prove to have been correct. Forward-looking information should not
be read as guarantees of future performance or results, and will not necessarily be
accurate indications of whether or not or the times at or by which such performance or
results will be achieved. Many factors that are beyond the Company’s control could
cause actual results to differ materially from the results discussed in the forward-
looking statements.
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3 Uranium Market (Demand) A Story of Stable Demand Growth and Uncertain Supply
Nuclear Electricity Growth • 930 GW needed by 2050 to support existing global decarbonisation mandates • Will represent 17% of the global energy supply • Equates to a 2.3 times increase in nuclear energy demand in just 35 years
Uranium Demand • Average demand growth estimated at 4% per year to 2024
Source: International Energy Agency (2015)
4 Uranium Market (Demand) Investment and Reactor Builds
• Currently 437 nuclear reactors in operation globally • As of April 2015, 65 nuclear reactors are under construction
• China: 26 currently, 23 under construction, 187 in planning/proposal phase • China Nuclear Power Corp. “looking to invest in Canada in the near future” (Dec. 2014)
• Another 496 reactors are in the planning/proposal phase 1.) Graph: International Energy Agency (2015) 2.) World Nuclear Association (2015)
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5 Uranium Market (Supply) Lack of Economic Deposits
• In 2014 world uranium
consumption was 155Mlbs while mine supply accounted for 147Mlbs
• +20Mlbs from HEU agreement (now over)
• Estimated supply gap of
nearly 100Mlbs per year by 2030
• 11 of top 15 uranium
mines are in unstable jurisdictions (Russia, Kazakhstan, Niger)
End of HEU agreement in 2013 removed the equivalent of McArthur River’s annual production from supply
1.) World Nuclear Association (2015) 2.) World Nuclear Association estimate of 97,450tU demand and 53,000 tU supply in 2030
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6 The Athabasca Basin The Source of Future Supply
1.) World Nuclear Association (2015) 2.) Cameco Corp. 3.) Based on US$45/lb U & US$1,300/oz Au
Remember: 1.00% U3O8 equals 23.50 g/t gold!
• Global average
resource grades ~0.10% U3O8
• Athabasca Basin mines produce at over 100X global average resource grade
• McArthur River produced 18.6Mlbs at 14.87% U3O8 in 2014
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7 Project Overview Focus: High-tonnage, high-grade, technically superior assets in shallow sections of the Athabasca Basin
Portfolio Characteristics
• Straddles the edge and inside of the Athabasca Basin
• Enables NexGen to find basement-hosted, unconformity-hosted and sandstone-hosted mineralization
• Hosts the land-based Arrow discovery
8 Arrow Discovery Rook I Project Location & Conductor Corridors
• Most dominant land position in the Southwest Athabasca Basin
• Arrow discovered I February 2014 with 1st drill hole in target
• Land-based discovery
located inside the Athabasca Basin boundary
• Basement-hosted high-grade mineralization that continues to grow in all directions and at depth
Rook I hosts all the known uranium bearing conductor corridors in the region
Bow
Discovery
9 Arrow Drilling 40 of 42 Drill Holes Intersected High-grade Uranium Mineralization
NexGen’s Drilling Methodology:
1. Wide step-outs 1. Angled Holes: 90% of
holes drilled are angled
2. Efficient capital allocation: $8 into the ground for every $1 of G&A
Results:
Current Area of Mineralization:
• Length x width 515 m x 215 m
• Depth 100 m to 905 m
10 Arrow: A2 & A3 Shears 2 High-grade shear zones now identified at Arrow
• A3 shear zone
discovered in
February 2015
• Both A2 and A3
Zones remain
open in every
direction
A2 Dimensions:
• 88m strike length
• 340m vertical extent
• 11-27.5m true width
A3 Dimensions:
• 73m strike length
• 420m vertical extent
• 30-78.6m true width
11 2015: Expansion of A2 Shear • 2015 drilling continues to expand
dimensions of A2 high-grade shear
• AR-15-41 (angled): • 202.2m total composite
mineralization including 24.52m
off-scale (>10,000cps to
>61,000cps) in both A2 and A3
• Intersected 8.12m off-scale
(10,000cps to >61,000cps) in the
A2 shear
• AR-14-30 (vertical): • 186.9m total composite
mineralization including 53.85m
off-scale (>10,000cps to
>61,000cps)
• AR-15-34b (angled): • 70.0m at 2.2% U3O8 including
11.0m at 8.95% U3O8
• Confirms grade continuity in A2
shear
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A2 Shear: AR-14-30
Hole AR-14-30 ranks as one of the best holes ever drilled in the Athabasca Basin
13 2015: A New High-grade Shear Found
• February 24, 2015 discovery of new
high-grade mineralized shear zone;
A3
• AR-15-41 (angled):
• Intersected 15.85m off-scale
(>10,000cps to >51,000cps)
within the A3 shear
• AR-15-39w:
• 124.5m total composite
mineralization including 8.35m
off-scale (>10,000cps to
53,000cps)
• Holes to date in A3 shear
show it to be significantly
larger than A2
14 The Eagle Point Analogy Eagle Point is an underground mine operated by Cameco
- Eagle Point current mineral reserves: 15.2Mlbs at 0.61% U3O8
- Underground mine using longhole stoping in the competent basement rock
- Eagle Point deposits are located on the eastern edge of the Athabasca Basin, and are part of the Rabbit Lake Uranium district which also includes the Rabbit Lake and Collins Bay deposits.
- Rabbit Lake District produced +198Mlbs of uranium concentrates since production began in 1975
1.) Cameco Corp.
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15 Dravite Breccia – McArthur River & Arrow
1.) Cameco Corp.
Arrow: AR-14-15 422.25m Dravite associated (or proximal) to mineralization
McArthur River: Dravite-Chlorite-filled Breccias associated with high-grade
mineralization 1
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Bow: New Discovery 3.7km NE of Arrow
BO-15-10:
• 2.5m total
composite
mineralization
including 0.10m
off-scale
(>10,000cps to
>10,200cps)
• 66m step-out to
east of BO-15-
02
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BO-15-10: Visible Pitchblende
18 Patterson Conductor Corridor Multiple targets along 7kms of conductor corridor
BO-15-10, -02
drilled into
coincident
VTEM
conductor
and radon in
lake water
anomaly with
peak reading
of 36.0pCi/L
19 Fury Target Area
• Six high
priority targets
based on the
same
geophysical
signature as
Arrow
• Land-based
• Depth to
basement
ranges from 10
to 20 meters
• Follow-up drill
target for
summer 2015
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Eastern Athabasca Basin Portfolio
High Quality Portfolio:
1. Radio: located directly adjacent to and long strike of Roughrider, Rio Tinto acquired for $654M in February 2012.
2. Thorburn Lake: 9 of 15 drill holes have intersected uranium mineralization.
3. Madison and 2Z Lake: contain shallow (<100m thick) sandstone-hosted uranium mineralization, and is along strike from U-mineralized conductors. Represent good potential for discovery of new basement-hosted uranium deposits.
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Capital Structure
Shares Issued & Outstanding 195,758,536
Warrants ($0.425 - $0.65) 23,911,666
Options ($0.30 - $0.46) 18,152,303
Fully Diluted 237,822,505
Cash ~$14M
Ownership Tigers Realm Minerals & Associates
Mega Uranium
Radio Optionors (2 - individually)
~17%
~16%
~7%
1.) As of April 01, 2015 2.) As of December 31, 2014.
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Executive, Board & Technical Team
Executive
Leigh Curyer Chief Executive Officer
Garrett Ainsworth VP Exploration & Development
Grace Marosits Chief Financial Officer
Travis McPherson Corporate Development Manager
Board
Chris McFadden Chairman
Richard Patricio
Trevor Thiele
Craig Parry
Gerry Feldman
James Currie Directors
Technical Team
Garrett Ainsworth VP Exploration & Development
Adam Engdahl Project Manager - Saskatchewan
James Sykes Senior Geologist
Technical Advisory
Andrew Browne former VP Exploration & Development
Craig Parry Director
Strong team with a successful track record in uranium exploration and
development.
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NexGen Summary
• Arrow, a world-class uranium discovery
• 40 of 42 holes drilled intercepted mineralization
• Aggressive and deliberate drilling methodology
• Area of mineralization 515 m x 215 m, vertical extent commencing from 100 m down to 905 m
• Two High Grade Shear Zones A2 & A3
• Expansion of A2 high-grade shear and discovery of A3 which already looks significantly larger than A2
• New discovery made 3.7km northeast of Arrow called Bow
• Well financed $14 million
• Currently drilling 20,000m winter program