Homeland Uranium Corp: Fourteen Kilometers of Uranium Strike Potential Confirmed at Coyote Basin

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Homeland Uranium (HLU) released initial results from its 2025 Phase 1 bedrock mapping program for both the Coyote Basin and Red Wash Uranium Projects, located in northwestern Colorado. The Phase 1 program confirmed both the presence and location of the four variably radioactive stratigraphic horizons previously identified in the late 1970s during historical work conducted by Western Mining, a previous project operator. Specifically, Homeland Uranium’s mapping program confirmed that anomalous radioactivity persists within beds along intermittent outcrop exposures of mapped horizons along strike for approximately 14 kilometers. The Phase 1 bedrock mapping data serves to further de-risk the Coyote Basin project while also establishing a framework for the highly anticipated Phase 2 drilling program this fall. Homeland Uranium trades at attractive valuation multiples (0.18x NAV and $0.59 EV/lb) when compared to peers. Our 0.35x NAV multiple, $3.25/lb derived price objective implies +103% upside from the most recent close (August 18).

PHASE I PROGRAM CONFIRMS PRESENCE & LOCATION OF HISTORIC RADIOACTIVE HORIZONS

Homeland Uranium’s mapping focused on areas identified proximal to previous drilling and showed elevated radioactivity up to nearly 8.0x background levels (up to 400 cps). The highest radioactivity detected was found within Horizon 2. The Phase I program confirmed that anomalous radioactivity persists within beds along intermittent outcrop exposures of mapped horizons along strike for approximately 14 km. The four horizons are all members of the Fort Union Formation. Of note is that the location of the anomalously radioactive horizons mapped appear to be consistent with the horizon locations indicated by Western Mining’s exploration efforts conducted in the late 1970s and as included in a property dataset acquired last year.

As can be seen in the figure below, the highest radioactivity detected in outcrop was 400 cps. This particular reading occurred in the area of historical drill hole CB-106, located at the south end of the mapped extent of Horizon 1. Homeland considers the area to the south of this outcrop to be prospective to hosting additional strike extensions of the four horizons.

Note as well that elevated radioactivity was also found along the northern end of Horizon 2, which also remains open for further strike extension to the north. As part of this fall’s Phase II exploration program, Homeland will drill test the Open Gulch area, which Western Mining reported to host the bulk of the historical uranium resource present on the Coyote Basin Project. A total of 89 rock samples have been collected within the Coyote Basin property and have been sent to the Saskatchewan Research Council Geoanalytical Laboratories (SRC) in Saskatoon, for analysis. Geochemical results for all 89 samples are still pending.

RADIOACTIVE HORIZON CONFIRMED AT THE RED WASH PROPERTY AS WELL

Mapping and prospecting activities at Red Wash were conducted exclusively in the western section of the property. Prospecting confirmed the presence of a continuous weakly radioactive horizon ranging up to 2.0x times background, up to 109 cps. Five rock samples were collected and sent to the SRC for analysis. Geochemical results of these samples are still pending, follow-up mapping and prospecting will be required next summer in order to identify potential future drill targets.

PHASE II DRILLING THIS FALL; UPDATED NI43-101 RESOURCE ESTIMATE DUE IN 1H/2026

As filed earlier in July, the Notice of Intent detailed Homeland Uranium’s plan for a 36-hole, 6,000m (19,685ft) rotary drill program at Coyote Basin. This marks the first part of the Phase II drilling program with the focus being on bringing the historical uranium and vanadium resource to compliance with NI43-101 standards. This upcoming drilling campaign will be the company’s inaugural program at Coyote Basin. Recall that extensive drilling on the Coyote Basin during the 1970s led to an estimate of 8.85M tons grading 0.20% U3O8 and 0.10% V2O5 for 35.4M lbs U3O8 and 17.7M lbs V2O5. The historic uranium resource at Coyote Basin ranks the project as one of the largest uranium deposits out of any deposit contained within the Four Corners region.

Historically, a total of 24 drill holes were drilled with 21 intersecting uranium mineralization. In 2006, Energy Metals Corporation reported a Coyote Basin historic resource estimate of 8.85M tons grading 0.20% U3O8 and 0.10% V2O5 equating to 35.4M lbs U3O8 and 17.7M lbs V2O5.

RECAPPING OUR INVESTMENT THESIS

Given the announced mineral claim additions from earlier this year, Homeland Uranium’s key property is the 18,404 acre Coyote Basin Project. Historical drilling was conducted by Western Mining Resources in the 1970s when a resource totaling 35.4M lbs U3O8 along with 17.7M lbs of V2O5 was estimated (as reported by Energy Metals Corporation in 2006). Ahead of an upcoming confirmation/exploration drill campaign to upgrade the resource to a NI43-101 standard, Homeland Uranium maintains approximately $11.0M in treasury. The Phase II confirmation drilling program will be a pivotal event in de-risking of the project. For additional details, refer to our initiation of coverage report, dated March 18, 2025.  

In short, the historic resource at Coyote Basin coupled with the aggressive 2025 drilling plans make Homeland Uranium a compelling investment from a risk/reward standpoint. Numerous other factors and near-term drivers further bolster this conclusion while also setting the company apart from peers:

• Resource Upgrade: A large-scale confirmation drilling program is expected to commence this fall. The historic Coyote Basin resource is expected to be updated to a NI43-101 compliant standard sometime in 1H/2026.

• Meaningful Size: Though still a historic resource, the 35.4M lbs U3O8 estimate was prepared in 2006 by Energy Metals Corp. and offers compelling starting point. Within the context of other uranium deposits located within the Four Corners, one would be hard pressed to find any current deposit surpassing 30M lbs (let alone 20M lbs). A large deposit size allows for additional options pertaining to recovery methods and final production (either all conducted in-house or partially outsourced).  

• Resource Upside Potential: Given a historic resource of 35.4M lbs U3O8, we note that all exploration work attributed to that estimate took place in the 1970s. Of the holes drilled, none tested the number 2, 3 or 4 horizons. Limited samples were taken while Neutron probing (in only a handful of holes) indicated that mineralization may be present between gamma peaks. Additional resource growth exists downdip and along strike.

• Recoveries: The potential for heap leach recovery with ion exchange will be tested for. This would allow for loaded resins and calcining toll options at several Wyoming ISR operations (if not possibly even completed on site).  

• Location: Both Coyote Basin and Red Wash are situated within 435 kms of the only three fully licensed conventional uranium mills in the USA. Each mill – White Mesa, Sweetwater and Shootaring Canyon are either on standby or have ample excess capacity. As per potential resin shipments, the Lost Creek CPP is situated approximately 290 km away. Further options include Irigaray and Nichols Ranch.

• Management Track Record: Homeland Uranium boasts what is likely to be one of the most qualified management teams and accomplished Board of any exploration/development peer. Management and Board track record encompasses exploration, development, finance and capital markets.   

Peer Projects Located in the Four Corners Region:

CONCLUSION & VALUATION

Having IPOed on the TSX Venture Exchange this past March, Homeland Uranium is one of the newest entrants to the very limited universe of US-focused uranium exploration/development companies. With its flagship Coyote Basin and Red Wash uranium properties located strategically in northwest Colorado, the current focus is to de-risk by bringing the historic resource estimate to a NI43-101 standard. Ahead of a highly anticipated Phase 2 drill campaign this fall, we like the geological potential and internal fundamentals of the company. These internal fundamentals not only include the ~$11.0M currently in treasury (equating to ~35% of mcap) but the accomplished management team (CEO Roger Lemaitre) and Board as well. The company possesses the necessary skill-set to develop and de-risk both the Coyote Basin and Red Wash projects. Given the near-term start to the Phase II campaign, the near-term drivers will be material and news flow will begin in short order. In a part of the US where the need for uranium resources is becoming increasingly apparent, the Homeland Uranium story is worth telling and watching for.

In anticipation of the Phase 2 confirmation drilling program start, we maintain our C$0.64 per share (rounded), 12-month price objective. This equates to potential upside of +103% from the most recent August 18 close. While acknowledging the current (and ever present) market volatility, we feel that the risk/reward construct is long term favorable and that the risk remains on the upside. At an EV/lb of $0.59 per lb, not only does Homeland Uranium trade at the lowest multiple versus development/exploration peers, but with 35.4M lbs (historic) it also carries one of the highest uranium resource estimates among US-based peers.