Laramide Resources: Drilling in the Chu-Sarysu Basin to Begin in Q4/2025

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Laramide Resources (LAM) announced that a multi-rig, 15,000m drill program at the Chu-Sarysu Uranium Project located in Kazakhstan is set to commence in Q4/2025. Its been just over one year since Laramide announced the acquisition of an option agreement on a 5,500 km2 land position in Kazakhstan's prolific Chu-Sarysu Uranium Basin. Following months needed to compile and analyze data from Kazakhstan's state National Geological Service, the Laramide team was able to analyze a treasure trove of information encompassing historic mapping, drilling, geophysics and geochemistry. At this point, drilling targets have been identified and the final permits needed to commence the drilling campaign are being finalised. Management expects the Phase 1 drilling campaign to begin in Q4/2025. Using our $80 per lb, LT uranium price deck, we maintain our 0.70x target NAV10% multiple which equates to a 12-month price objective of C$0.75 per share (rounded). This equates to estimated upside of +50% from the intra day quote.

PHASE 1 DRILLING TO COMMENCE IN Q4/2025

The intent of the Phase 1 campaign will be to provide a proof-of-concept that roll-front hosted uranium mineralisation is extensive within the basin and not constrained to the existing known large-scale operations. Additionally, the Phase 1 campaign will set out to test for other metals such as copper and rare earths. Laramide has selected two local drilling contractors to conduct drilling, utilizing multiple rigs to achieve a minimum of 15,000m of drilling through a combination of Rotary Mud and Diamond Core drilling. Target depths range from 50m at shallowest to between 400m-550m at deepest.

THE CHU-SARYSU OPTION AGREEMENT

As originally announced on September 5, 2024, the option agreement signed with Aral Resources Ltd. (a Kazakh company) encompasses 22 mineral licenses (owned by Aral) covering 5,500 sq KM of the Chu-Sarysu sedimentary basin located in southern Kazakhstan. The Project is located proximal to Kazatomprom's (KAP) currently operating ISR mines such as Budenovskoye, Muyunkum-Tortkuduk and Inkai (JV with Cameco (CCJ).

Under terms of the option agreement, Laramide will have the right to to acquire all outstanding shares of Aral Resources Ltd at any time during the option period (three years when initially signed), thereby obtaining full ownership of the Chu-Sarysu Project. Following the definitive grant to Aral Resources of all license applications related to the Chu-Sarysu Project and approval from the TSX, the payment terms are as follow:

• Laramide will make a one-time payment of $450,000 in cash and shares to the optionors and annual payments of $150,000 payable in cash on each anniversary of the Option Agreement, commencing on the first anniversary.

• The option is exercisable for a term of three years and may be extended for an additional one-year term with a one-time payment of $400,000 in cash and shares.

• The option can be exercised by Laramide at any time during the term of the agreement through a one-time payment of $14.0M in cash and shares.

During the term of the option agreement, Laramide will be the operator of the property and will exercise exclusive supervision, direction and control over any and all operations, programs and budgets relating to the property. Apart from the annual payments, all payables would be delivered as 50% cash (USD) and 50% common shares.

CONCLUSION & VALUATION

Ultimately, the goal of the inaugural drill program will be to target high-grade, large-scale uranium deposits which will be (hopefully) amenable to in-situ recovery (ISR) mining. Though we acknowledge the highly prospective nature of the Chu-Sarysu Project, we continue to feel that this new project detracts from the portfolio of assets in well established US jurisdictions which we continue to view as very attractive (Churchrock, Crownpoint and La Jara Mesa). Despite still just being an option agreement (as opposed to an outright purchase), undoubtedly Laramide's geopolitical risk profile has ultimately increased. Didn’t the initial press release from last year mention an area encompassing ~6,000 Km2 and not ~5,500 Km2 as mentioned now ? Was some of the most prospective area carved out since the agreement was signed ?  Clearly Kazakhstan is a very different operating environment compared to anything in North America or Australia. In that part of the world, one has to operate with a degree of skepticism. The market seemingly has acknowledged this fact, Laramide shares have underperformed development peers since the option agreement was signed.

We acknowledge one final "option" within the option agreement. There is a clause which would allow for an alternative mechanism to proceed with the opportunity by way of a spin-off transaction. We would think that developing the Kazakh property would be much better suited as a majority Laramide-owned, independent, stand-alone entity.

Using our $80 per lb, LT uranium price deck, we maintain our 0.70x target NAV10% multiple which equates to a 12-month price objective of C$0.75 per share (rounded). This equates to estimated upside of +50% from the intra day quote. Based on our estimates, shares of Laramide Resources currently trade at a 0.48x P/NAV multiple.