IsoEnergy: Summer Drilling at Larocque East Complete; Strongest Radioactivity to Date

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IsoEnergy (ISO) announced that it has completed its expanded summer drilling campaign at Larocque East in the Athabasca Basin. Comprising 26 drill holes, the summer drill program successfully intersected widespread, strongly elevated radioactivity over a strike length of 600m along the South Trend. Of note was that 18 of the total 26 holes returned intervals at or above the cut-off of greater than 350 cps threshold over 0.5m. A total of 13 holes returned 1,000 cps or greater. With geochemical results still pending, the assays will dictate the targets for the drilling campaign next year.

The summer drilling campaign focused on expanding of the Hurricane mineral resource. A total of 26 holes were completed (with three holes abandoned in sandstone) for a total of 10,159m. This was expanded from the previously planned 8,000m in 20 holes based on early encouraging results. Aside from one hole (LE26-269) that tested the eastern extension of the Hurricane Main trend, all drilling was focused on the Hurricane South Trend. Within the South Trend, 6 holes tested J and K faults, and seventeen holes tested L fault. LE26-273 tested the L fault within the existing Deposit footprint and extended the zone of elevated radioactivity associated with mineralization intersected by winter hole LE26-248 (4.21% U3O8 over 3.5m, including up to 11.6% U3O8 over 1.0m) 11m to the west.

As seen above, The east-striking structures at Hurricane are grouped into three trends: the North Trend (not shown, minor unnamed faults north of the deposit), Main Trend (H and I faults), and the South Trend (J, K and L faults). The West L Fault target was the main focus of the summer campaign. LE26-255, LE26-257, LE26-261, LE26-268, and LE26-270 to LE26-274 were drilled to follow up on strong radioactivity intersected in drill holes LE26-248 and LE26-250 on the L-fault zone. A strong illite spectral mineralogy signature dominates through the lower 150m of sandstone with the lowermost 5m of sandstone dominantly characterized by a mix of illite and chlorite in most holes. IsoEnergy is currently is advancing a geological model for the area to assess its potential based on the winter and summer results. In terms of radioactivity (cps), highlights included:

HURRICANE SOUTH TREND

The Hurricane South Trend is a compelling exploration trend with mineralization intersected in multiple holes over a 500 m strike length to the east of the Hurricane deposit. Recall that winter 2026 drilling tested the South Trend in the low-grade zone of the deposit and along strike to the east, building on previous drilling during which mineralization was intersected near the unconformity in drill holes LE25-207, LE25-210, LE21-101 and LE22-115A. Recently received assay results confirmed high-grade mineralization within the newly reinterpreted L Fault Zone, including 4.21% U3O8 over 3.5m in LE26-248, demonstrating strong potential to expand mineralization beyond the current resource footprint. Summer 2026 drilling will follow up along this trend, focusing on step-outs from LE26-248 and the along-strike extension to the east. Potential for high grade mineralization like the 20.4% U3O8 intersected over 6.5m in 2021 drill hole LE21-107 will also be tested along the J-K fault zone within the broader South Trend east of the deposit.

HURRICANE DEPOSIT - THE HIGHEST GRADE URANIUM RESOURCE IN THE WORLD

Recall that since the Hurricane discovery hole was drilled in July 2018, subsequent high grade assay results have culminated with a maiden resource at a world best 34.5% U3O8 for a significant ~49.0M lbs in the Indicated category. The asset itself is wholly owned by IsoEnergy. As opposed to the Arrow deposit (Nexgen Energy) or the Triple R deposit (Paladin Energy), Hurricane is located in the eastern portion of the Athabasca Basin which is already well endowed with current infrastructure and a multitude of uranium mines and mills. Note that the McClean Lake mill is located just ~35km from the deposit.

CONCLUSION & VALUATION

Ultimately, we highlight that IsoEnergy's summer drilling campaign was successful in identifying additional mineral fault strands across the width of the Hurricane South Trend, highlighting a broader and more prospective corridor than previously interpreted, with potential for additional zones within underexplored areas. The pending geochemical results will dictate the targets for 2027 drilling. Needless to say, the company maintains a healthy ~C$122M in treasury. Given the recently announced deal with DISA Uranium, the assets in the Athabasca Basin have come front and center for future development. We maintain our 1.0x target NAV multiple which leads to a price objective of C$18.00 per share (rounded). This implies 10% upside from intra-day trade on the TSX (September 8). ISO shares currently trade at 0.92x discount to NAV.