Premier American Uranium: Acquisition of Nuclear Fuels Inc. Completed

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Premier American Uranium (PUR) announced on September 16 that it has completed the previously announced arrangement with Nuclear Fuels Inc. whereby Premier American Uranium has acquired all of the issued and outstanding common shares of Nuclear Fuels. The arrangement results in Premier acquiring 100% of the Nuclear Fuels shares. Nuclear Fuels now becomes a wholly-owned subsidiary of Premier. Now with a combined 12 total development projects, the company ranks among the largest pure-play uranium exploration/ development companies in the US. Moreover, ownership remains dominated by a collection of uranium industry stalwarts with long standing experience in the US uranium space. Now incorporating the Kaycee Uranium Project (among others) into our in-situ based valuation methodology, we establish a 12-month, 0.70x NAV derived price objective of C$2.10 per share for shares of Premier American Uranium. Shares of PUR currently trade at a P/NAV of 0.42x.

Following the second transformational acquisition since initial listing in December 2023, Premier American Uranium now ranks as one of the largest uranium development companies from a pure-play, US project standpoint (12 projects spanning the Four Corners States and Wyoming). The total portfolio (now totaling over 104,000 acres) is highlighted by various prospective exploration projects along with numerous projects with past uranium production. Just as importantly, the acquisition of Nuclear Fuels has added much needed size, scale and liquidity to Premier American. This will allow the company to stand out among a very fractured US exploration/development sector while also providing for a broader shareholder base and capital markets visibility. Given that both companies accounted for a combined 209,490 feet of drilling in FY/2024 (far exceeding their peer group) and a robust drilling campaign this year, we expect plenty of news flow and catalysts for many of the projects, over the remainder of this year.

BUILDING CRITICAL MASS IN ALL THE BEST DOMESTIC URANIUM JURISDICTIONS

Since IPO on the TSXV in December 2023, management has been active with making transformational acquisitions and taking on the role as consolidator. Following the acquisition of American Future Fuel (Cebolleta) in June 2024, the acquisition of Nuclear Fuels marks the latest transformational acquisition for Premier American. As evidenced by an exploration target estimated between 11.5M-30.0M lbs U3O8, Kaycee provides large scale exploration upside given historic and 2024 drilling on the property. Other uranium projects coming by way of Nuclear Fuels include Tensleep, Bobcat and Bootheel (all in Wyoming), Lisbon Valley in Utah and Moonshine, located in Arizona. The acquired portfolio fits well with the various projects currently in the Premier American portfolio, highlighted by the past producing Cebolleta flagship project located in New Mexico (18.6M lbs Indicated at 0.14% U3O8 and 3.9M lbs Inferred at 0.10% U3O8) and the Cyclone project located in Wyoming (exploration target between 7.9M-12.6M lbs U3O8). Cyclone (Great Divide Basin) is located approximately 150 miles from Kaycee, which lies in Wyoming’s Powder River Basin. These two Basins form two of the US’ most productive ISR areas.

KAYCEE PROVIDES FOR LARGE EXPLORATION UPSIDE POTENTIAL IN WYOMING

Historic exploration at the Kaycee Project, (3,800 drill holes drilled mostly in the late 1970s) has confirmed uranium mineralization over more than 1,000 vertical feet in all three historically productive sandstones within the Powder River Basin. This makes the Kaycee Project unique as the only project in the Powder River Basin where all three formations (Wasatch, Fort Union, and Lance), are known to be mineralized and potentially amenable to ISR extraction. The majority of the mineralized trends have yet to be explored with drilling concentrated only on approximately 10% of the trend. Nuclear Fuels management was very active on the exploration front last year - between July-December 2024, the company drilled 206 holes at Kaycee, totaling 124,720 feet. Over the last two years, 411 exploration drill holes were drilled totaling 225,260 feet.  Some more recent drilling highlights included 0.205% eU3O8 over 8.0ft for a GT of 1.640 at the Stirrup West Zone, 0.233% eU3O8 over 7.0ft for a GT of 1.631 at the Saddle Zone, and 0.117% eU3O8 over 5.0ft for a GT of 0.585 at the Spur Zone. Coupled with the 3,800 historic drill holes, a NI43-101 compliant Technical Report was published last year with a total exploration target on Kaycee estimated between 11.5M lbs U3O8 (0.061%) and 30.0M lbs U3O8 (0.10%).  A historic resource of 1.7M lbs was previously estimated at Kaycee.

Strategically located in the Powder River Basin in north-east Wyoming, notable ISR projects located in close vicinity to Kaycee include Nichols Ranch and Hank (both, owned by Energy Fuels, UUUU), Irigaray and Christensen Ranch (both owned by Uranium Energy Corp, UEC), and North Butte (Cameco, CCJ).

BOARD OF DIRECTORS

In connection with closing of the arrangement, Premier’s Board of Directors is now comprised of seven members, including Chairman Tim Rotolo, Marty Tunney, Michael Harrison and Jon Indall, with Gregory Huffman and Brahm Spilfogel joining from Nuclear Fuels, and Colin Healey, CEO of Premier American Uranium also being added. That said, the acquisition of Nuclear Fuels was backed by current founding shareholders which include Sachem Cove Partners LLC, and IsoEnergy (ISO). Post-transaction ownership includes Sachem Cove Partners LLC (23.2%), enCore Energy Corp. (9.5%), IsoEnergy Ltd. (5.4%) and Mega Uranium Ltd. (2.3%).

VALUATION & CONCLUSION

Premier American trades at attractive multiples when compared to US development peers. Now that the deal overhang has been lifted, management can concentrate on developing and advancing its cornerstone assets, Cebolleta, Cyclone and now, Kaycee. With numerous historic drilling programs across all of these Projects, given ambitious current drilling plans we expect steady newsflow regarding drill results and development updates in the months ahead. From an exploration standpoint alone, we feel that the potential from these Projects represent some of the best uranium prospects located anywhere in the US.

With the Nuclear Fuels transaction now closed and the deal overhang finally gone, we incorporate the Kaycee Project to our in-situ based valuation methodology. We establish a new, 0.70x NAV derived C$2.10 per share (rounded), 12-month price objective. This equates to upside of +67% from the most recent close. Shares of Premier American Uranium currently trade at a P/NAV of 0.42x.