Homeland Uranium Corp: Phase 1 Program Now Started at Coyote Basin & Red Wash

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Last Friday (May 30), Homeland Uranium (HLU) announced that field crews have been mobilized to the Coyote Basin and Red Wash uranium projects located in Colorado. An extensive Phase 1 program has begun with the goal being to confirm the location of known mineralized horizons. Once completed later this summer, the data collected from the Phase 1 program will set the stage for the Phase 2 campaign which will consist of a robust ~10,000m drilling campaign planned to begin this fall. With the Phase 1 campaign now off the ground, we maintain our 12-month price objective of C$0.64 per share price objective. Our 0.35x NAV, $3.25/lb in-situ derived price objective implies +94% upside from the most recent close.

Since IPO this past March, Homeland Uranium has been busy setting the framework for the Phase 1 exploration program. In the few months since, management has increased the total portfolio acreage by 45% (now encompassing 33,718 acres in northern Colorado). In late April, the company appointed Nancy Normore as VP – Exploration. Ms. Normore is a seasoned professional geologist with over 20 years of experience having previously held technical roles with Denison Mines, Orano Canada, Cameco, CanAlaska Uranium and UEX Corporation (among others). Homeland Uranium trades at attractive valuation multiples (0.18x NAV and $0.60 EV/lb) when compared to US focused exploration/development peers.

PHASE 1 EXPLORATION PROGRAM SETS THE STAGE FOR DRILLING THIS FALL (PHASE 2)

With a crew already mobilized and on site at the Coyote Basin and Red Wash Projects in Colorado, Homeland Uranium announced on Friday (May 31) that the Phase 1 Exploration campaign has officially begun. The extensive Phase 1 program is now underway for with the goal being to confirm the location of known mineralized horizons, given a vast database of historic drill results. Specifically, the Phase 1 program will encompass geological mapping (1:20,000 scale), prospecting, rock sampling and a 1,545 line km (960 line-mile) UAV airborne magnetic survey. The goal of the program at the Coyote Basin Project is to identify and evaluate potential target areas initially detected by Urangesellschaft in the 1970s. Ultimately, the objective of the program at Coyote Basin is to confirm the location of the known mineralized horizons in order to set the stage for the expected Phase 2 exploration drill program, expected to begin this fall. At the Red Wash Project, the objective is to identify potential areas for follow-up exploration and to evaluate the uranium potential of the Urangesellschaft Uranium Showing. Note that historical work has previously identified a uranium anomaly hosted in sandstone rocks that returned 350 ppm U3O8. 

PHASE 2 DRILLING THIS FALL; AN UPDATED NI43-101 RESOURCE ESTIMATE DUE IN 1H/2026

Budgeted at ~$5.0M, an extensive 50 drill hole campaign targeting a total of 10,000m is expected to commence following the Phase 1 program, once more specific targets have been identified and all data has been interpreted. 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.

INCREASING THE PORTFOLIO ACREAGE

Since listing on the TSXV this past March, management has acted quickly with increasing the total portfolio acreage. Recall that earlier in April, a total of 109 new mineral claims were staked at Coyote Basin, covering a total of ~2,250 acres. The new claims are located at the southwestern edge of the property where the four known host horizons are believed to be folded into an east-west strike direction that extends westward towards the Red Wash Project. With the addition of these new claims, the Coyote Basin property now consists of 808 mineral claims and 3 state leases totaling 18,404 acres. As can be seen below, the newly staked claims abut the southwest corner of the Coyote Basin project where the 4 known host horizons are believed to be folded into an east-west strike direction that extends westward towards the Red Wash Project.

As per the Red Wash Project, a total of 396 new mineral claims were added in two separate blocks totaling a combined 8,180 acres. Of particular note is that one of the blocks abuts the southern end of the Red Wash property. This particular block hosts a historic Urangesellschaft uranium occurrence where an outcrop sample contained 350 ppm U3O8 within sandstone. The second block extends eastward from the east end of the Red Wash Project in the direction of the south end of the Coyote Basin Project. The new mineral claims overlie areas adjacent to both properties that are considered prospective strike extensions of potential uranium host stratigraphy.

Given the announced mineral claim additions from April, Homeland Uranium now owns 1,507 mineral claims and 5 state leases totaling 33,718 acres in Moffat and Rio Blanco counties in northern Colorado. 

RECAPPING OUR INVESTMENT THESIS

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 $13.0M in treasury. The Phase 2 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 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.   

Uranium Deposits Within the Four Corners Region – Million (M) lbs U3O8:

CONCLUSION & VALUATION

Homeland Uranium is the newest entrant 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 ~$13.0M currently in treasury (equating to ~40% 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 start of the Phase 1 campaign, the near-term drivers will be material and news flow will begin relatively soon. 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 would equate to potential upside of +94% from the most recent 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 $0.60 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.