Terra Clean Energy: Financing Closed; Drilling at Marysvale Set For Early November

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Terra Clean Energy Corp. (TCEC) announced that its upsized C$2.4M financing (17.342M units at C$0.14 per unit) has closed. With a site preparation crew mobilized and drill pads being built, the planned 10,000ft core drilling campaign at the flagship Marysvale Uranium Mines Project is set to begin in late October/early November. The planned drilling campaign represents the first meaningful exploration campaign on site since the 1970s. The drill program will evaluate the resource potential surrounding the Prospector and Freedom Mines which historically accounted for 75% of the district’s 1.33M lbs U3O8 produced at an average grade of 0.22% U3O8.

KB Drilling Co. has been contracted to conduct the planned 10,000ft core drilling campaign at the Marysvale Uranium Mines Project. Specifically, the drilling campaign will evaluate the resource potential surrounding the Prospector and Freedom Mines. Drilling will be conducted from five permitted drill pads encompassing 12 drill targets. Though historical drilling focused on the accessible portions of the known vein systems, the same historical drilling indicates that mineralization continues more than 600ft below portions of the former underground workings. The specific objectives of the upcoming drilling campaign include:

• Test the down-dip continuation of mineralized veins beneath the former mine workings;

• Evaluate strike extensions beyond the historically mined areas;

• Confirm the location, orientation, width and grade of known mineralized structures;

• Identify parallel veins and previously unrecognized mineralized structures; and

• Generate geological and assay information to guide subsequent drilling and resource-evaluation work.

The mineralized structures remain open for testing along strike and at depth. The upcoming drilling program will incorporate historical drill logs, assay information, underground workings and mine maps, along with recently completed airborne radiometric, photogrammetric surveys and 3D geological models. Combining the historic data with the recently completed airborne radiometric surveys, photogrammetric surveys and 3D geological models, it is believed that substantial potential exists to expand the known mineralized footprint.

THE MARYSVALE PRE-DRILLING, FALL WORK PROGRAM

In addition to the current construction of the five necessary drill pads, civil works undertaken this fall include the establishment of a temporary access road to Pad 4 along with the establishment of seven strategically located trenches with depths of up 20 ft each (still on-going). 

The five permitted drill pads have been strategically positioned to test priority uranium targets previously identified through historical exploration, recent geological modeling, and the company’s completed radiometric and photogrammetric surveys. Recall that earlier this spring, a radiometric survey outlined numerous discrete uranium anomalies associated with favorable host lithologies and established regional mineralized trends. These anomalies are interpreted as potential near-surface uranium bearing zones and represent compelling follow up targets for the company’s upcoming drilling program.

THE MARYSVALE URANIUM MINES PROJECT

Covering 380 acres in Utah’s Piute County, Terra’s 20 claims cover four past producing uranium mines (the Prospector 1 Mine, the Prospector 4 Mine, the Buddy Mine and the Lucky Strike Mine). Collectively, the Marysvale district produced over 1.33M lbs at a reported grade of 0.22% U3O8. It is estimated that 75% of that historic production (~1.0M lbs U3O8) came from the Prospector and Freedom mines. The Marysvale District hosts nearly vertical, northeast and east striking fissure veins that cut granitic and volcanic rocks of the Belknap volcanic sequence and is a prime example of an epithermal vein-style uranium system. Ore is located within the north-northwesterly striking, near vertical, Prospector Fault. Uranium in the area was discovered in 1948 and mining commenced in 1949 by Vanadium Corporation of America (VCA).  Over the next few years VCA consolidated various claims and operations in the area.  Production ceased in the Marysvale area in 1969. Some exploration drilling was undertaken in the area in the late 1970’s. A Technical Report authored by the US Department of the Interior Geological Survey dated September 1950 specified that inclined shafts were sunk on the Prospector 1 and Freedom 2 claims. The first ore mined was trucked to Naturita, Colorado, for experimental processing. Subsequent ore was stockpiled near the mines with much being purchased by the American Smelting and Refining Company under the authority of the Atomic Energy Commission. Terra completed an updated NI43-101 compliant Technical Report on the Marysvale Uranium Mines Project earlier this summer.

BROWNFIELD URANIUM ASSETS INCREASINGLY IN DEMAND

The recent creation of DISA Uranium Corp. (as announced on August 4, 2026) is further evidence that brownfield uranium projects are increasingly being viewed as not only strategic assets, but compelling from a long term development and investment standpoint as well. Backed by a syndicate of high profile investors, the announced IsoEnergy definitive agreement with DISA Technologies to form DISA Uranium shows the will to acquire and consolidate brownfield projects. Moreover, as is the DISA strategy, the application of modern development methods is seen as a primary driver to unlocking value. Note that the Marysvale Project is located 115 miles from DISA’s Tony M mine and is accessible by road after a two hour drive. 

By leveraging decades worth of historical work (including drill programs, mapping, geophysics, previous permitting and/or production), our view has always been that provided good project data and mineralization, a brownfield project opportunity will always provide a better risk-adjusted return when compared to a much riskier greenfield opportunity. The announced transaction with DISA and IsoEnergy validates our investment thesis, as does the impressive investor syndicate participating in the private placement. According to DISA, HPSA technology can be used to remediate the estimated 15,000 abandoned/mothballed uranium mines scattered throughout the western United States. Refer to our August 13, 2026 note here for additional details on this front.

CONCLUSION & VALUATION

Though Terra’s uranium portfolio continues to be anchored by the 6.8M lb South Falcon East deposit, the recent US acquisitions in Utah and Wyoming have fundamentally changed the profile of the company. Since last Fall, Terra management has been successful with identifying strategic uranium properties and then either staking or negotiating earn-in agreements at what we deem as a modest capital outlay with meaningful ownership milestones. The claims on the past producing properties in Utah include valuable historic data compiled by the US Geological Survey (among others). Combined with the use of modern exploration techniques and 3D modeling, management will use the historic data to identify priority targets for confirmation drilling in identified zones and exploration drilling to test for extensions. The completion of a NI43-101 compliant Technical Report was the culmination of all the efforts conducted thus far. Now with permits in-hand, drill pads being built and a drilling company contracted, the stage is set for the most impactful exploration campaign conducted on the property since the 1970s.  It is management’s belief that though historical mining focused on the accessible portions of the known veins, the drilling and mine records indicate that the system continues well beyond the former workings. This meaningful thesis will be tested with the coming drilling program.

Given a revamped management team, a newly re-constituted Board and Terra’s recent initiatives into Utah and Wyoming, much new interest has been re-injected into the company. We note that the average trading volume YTD has nearly tripled the average daily figure from 2025. Underpinned by our $4.75 per lb in-situ valuation for 51% ownership of South Falcon East, our 0.60x NAV multiple leads to our C$0.22 per share price objective. This implies upside of +47% from the recent close (October 6). For additional asset-specific information refer to our research report dated February 19, 2026. 

NEAR-TERM TIMELINE & POTENTIAL CATALYSTS

• Results from a trenching/sampling program at Marysvale

• Start of the ~10,000 ft Marysvale drilling program this by early November

• Details for the upcoming South Falcon East drill program in the Athabasca Basin.