IsoEnergy Update | Phil Williams and James Connor

Key Concepts

• Uranium Market Dynamics: A projected supply deficit driven by doubling global demand by 2040.
• Jurisdictional Focus: Prioritizing "top-tier" mining jurisdictions (Canada, USA, Australia).
• Hurricane Deposit: The world’s highest-grade published uranium resource (48.6 million lbs at 34.5% grade).
• Tony M Mine: A flagship past-producing asset in Utah currently being evaluated for a production restart.
• Coles Hill: A large-scale, historic uranium resource in Virginia currently subject to a state-level mining moratorium.
• 43-101 Compliance: The Canadian regulatory standard for disclosing mineral projects.
• Beneficiation: The process of improving the economic value of ore by removing waste material.

1. Company Overview and Strategy

ISO Energy is a growth-oriented, diversified uranium company with a market capitalization of approximately $900 million. The company holds over 400 million pounds of uranium across its portfolio. Its strategy centers on:

• Diversification: Operating across Canada, the US, and Australia.
• Project Breadth: Managing assets ranging from near-term production to advanced exploration and "call option" projects (large, high-grade assets with long-term upside).
• Institutional Backing: Founded by NextGen Energy (which retains a 30% stake) and widely held by major uranium ETFs.

2. Flagship Assets and Development

Tony M (Utah, USA)

• Status: Past-producing mine with existing infrastructure and permits.
• Process: Currently executing a bulk sample to gather technical and economic data.
• Goal: An updated technical study is expected by mid-year or early Q3, leading to a "go/no-go" production decision by year-end.
• Production Target: Historically produced 500,000–750,000 lbs/year; the company aims to return to these levels following a 6–12 month ramp-up.

Hurricane Deposit (Athabasca Basin, Canada)

• Significance: Contains 48.6 million lbs at 34.5% grade (indicated category), which is significantly higher than the global average of <0.1%.
• Exploration: Recently completed a winter drill program (17 holes, >5,200 meters).
• Strategic Value: Located 40km from the McClean Lake Mill. As the Cigar Lake mine depletes by 2035, Hurricane (potentially combined with the Dawn Lake project) is positioned as a primary candidate to replace that production capacity.

Wiluna (Western Australia)

• Acquisition: Acquired via the purchase of Toro Energy (closing Q2 2026).
• Context: Despite current political policy impediments in Western Australia, the company views this as a critical asset due to its proximity to existing mining infrastructure and its potential to help fill the global supply gap.

Coles Hill (Virginia, USA)

• Potential: The largest uranium resource in the US (160 million lbs).
• Challenge: Currently under a state-level moratorium on uranium mining.
• Strategy: ISO Energy is actively lobbying at both state and federal levels, emphasizing the need for domestic "onshoring" of critical minerals to support the US nuclear power fleet.

3. Financial Position and Capital Allocation

• Recent Financing: Successfully raised $57.5 million, exceeding the initial $50 million target. The offering saw demand an order of magnitude higher than the amount raised, with participation from 45 global institutions.
• Use of Proceeds: Funds are earmarked for the Tony M restart, aggressive exploration in the Athabasca Basin, US exploration, and the advancement of the Wiluna project.
• Equity Portfolio: ISO Energy holds equity in other companies, generated by divesting non-core assets. This provides "torque" (upside exposure) to the junior uranium sector while reducing the company's own human and financial capital requirements.

4. Synthesis and Outlook

ISO Energy is positioning itself as a key player in the global uranium supply chain by focusing on high-grade, permitted, or strategically significant assets. The company’s "Advance, Enhance, and De-risk" framework is designed to bridge the gap between its current market valuation and the intrinsic value of its assets.

Key Takeaways for Investors:

• News Flow: Expect a busy year with exploration results from Canada and the US, technical study updates for Tony M, and the formal closing of the Toro Energy acquisition in Q2 2026.
• Market Thesis: The company is betting on a structural supply deficit that will force jurisdictions like Virginia and Western Australia to eventually favor uranium development to meet energy security and data center power demands.