Denison Mines: Engineering Advancing at Phoenix; CNSC Hearings Scheduled for Late-2025

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Along with filing its condensed Q1/2025 financial statements and MD&A, Denison Mines (DML, DNN) provided an update with regards to the latest developments on the Wheeler River project, located in the Athabasca Basin. As announced earlier this year, the Canadian Nuclear Safety Commission (CNSC) hearings to approve the Wheeler River Project will commence in two parts, with hearings scheduled for October 8, 2025 and then December 8-12, 2025. With that said, Denison has been advancing the Phoenix ISR portion of the Wheeler River project. Following the hearings and approvals, Denison expects to commence site preparation and construction activities in early 2026, culminating with initial ISR production by 1H/2028. We maintain our 1.20x NAV8% derived price objective ($80 per lb LT) of C$3.05 per share which would equate to upside of +40% from the recent close.

As announced earlier this year, the hearing schedule follows the successful completion of multiple key regulatory milestones in late 2024, including:

• (i) completion of the technical review phase of the federal EA approval process in November,

• (ii) acceptance by the CNSC of the Company's final Environmental Impact Statement (‘EIS’) for the Project in December, and

• (iii) the CNSC's determination of the sufficiency of Denison's Licence application, also in November.

PHOENIX ISR DETAILED ENGINEERING 75% COMPLETE

A significant portion of the detailed engineering work for the Phoenix ISR project has been completed. Given that work has commenced on this front in early 2024, by end-Q1/2025 it was estimated that 75% of the engineering has been completed. This detailed engineering work will be a critical step towards a final investment decision (FID) for the project. Specifically, accomplishments have included the finalization of process design, piping and instrumentation diagrams, hazard and operability studies (HAZOPs), the selection of major process equipment, electrical distribution infrastructure and substantial completion of civil engineering design. By end-Q1/2025, Denison has funded over $7.0M and committed a further $67.0M for long-lead capital purchases. The completion of the detailed design engineering has been scheduled to ensure that Denison will be ready to commence project construction upon receipt of regulatory approval.

Similarly as to how management is guiding towards, we expect initial production from Phoenix in mid-2028, followed by initial production from Gryphon in 2031. Our estimates are below:

Elsewhere, at the McClean Lake Joint Venture (MLJV) with Orano Canada, the commencement of mining at the McClean North deposit using the MLJV’s patented Surface Access Borehole Resource Extraction (SABRE) mining method is expected to commence. Thus far on the year, site preparation activities have recommenced with mining expected to begin in the months ahead.

WELL CAPITALIZED WITH 2.2M LBS URANIUM IN INVENTORY

The company maintains a strong current balance sheet with C$83.6M cash in treasury, minimal LT debt and 2.2M lbs U3O8 held in inventory. This solid financial position sets up well when it comes to funding the construction work needed at Phoenix and for any other potential growth initiative.

Using a LT uranium price of $80/lb, we continue to maintain our 1.20x NAV8% derived, price objective of C$3.05 per share. While acknowledging the near-term CNSC drivers, our price objective equates to upside of +40% from the most recent close. Shares of Denison Mines currently trade at a 0.86x P/NAV multiple.