Laramide cancels option to acquire Chu-Sarysu

Executive Summary

• Laramide Resources Ltd. has terminated its option agreement for the Chu-Sarysu basin uranium project in Kazakhstan due to newly enacted government policy changes that materially alter the economic viability of foreign investment.
• The decision follows legislative changes signed on December 26, 2025, which increase the minimum ownership stake of the national company, Kazatomprom, in any newly discovered uranium resources, effectively pre-emptively nationalizing future discoveries.
• Laramide cites increased political risk, a doubling of annual property taxes, and delays in drilling permits as factors that have eliminated the economic case for continued exploration in the region.

Key Details

• Transaction Termination: Laramide terminated its option agreement with Aral Resources for the Chu-Sarysu basin uranium project with immediate effect.
• Asset Background: The option agreement, signed in September 2024, provided Laramide with optionality on 22 subsoil use licences in the Chu-Sarysu basin, a region with potential for large, low-cost roll-front uranium deposits and sediment-hosted copper.
• Exploration Status: During 2025, Laramide conducted historical data reviews, ground reconnaissance, and ground geophysics, identifying potential drill targets.
• Permit Delays: Exploration work plans were submitted to the Ministry of Industry and Construction, but drilling permits were delayed. No drilling occurred in Q4 2025 as planned. The final permits for an initial 15,000-metre, multirig program were received on December 24, 2025.
• Regulatory Changes: On December 26, 2025, the President of Kazakhstan signed legislative changes to the Subsoil Use Code (previously approved by the Senate in November 2025). These changes mandate a materially increased level of minimum ownership by Kazatomprom for any newly discovered uranium resources.
• Financial Impact: The company noted an approximate doubling of cash holding costs for annual property taxes earlier in 2025, contributing to the decision.
• Strategic Pivot: Laramide has ceased financing further exploration activities in Kazakhstan and remains focused on its two large development-stage uranium assets: Churchrock-Crownpoint in New Mexico, USA, and Westmoreland in Queensland, Australia.
• CEO Commentary: President and CEO Marc Henderson described the move as a "de facto nationalization" and a "spectacular own goal" by Kazakhstan, noting that the opportunity is now closed for other commercially oriented companies as well.

Notable Quotes

• "Motivated by an effort to address, and ideally reverse, the obvious and severe decline in the resource base of Kazatomprom, their national uranium company, it appears Kazakhstan may have scored a spectacular own goal with their recent de facto nationalization of future uranium exploration in country."
• "However, in what may be a world's first, Kazakhstan appears to have moved pre-emptively to ensure national ownership and control of any new uranium discoveries before they are actually even made."
• "At Laramide, we are disappointed at developments in Kazakhstan because our shareholders will now not get the benefit of what we think would have been a potentially high-impact exploration opportunity in a very promising geological province."