Premier American Uranium to conduct 2026 Cebolleta work

Executive Summary

• Premier American Uranium announced its 2026 work program for the Cebolleta uranium project in New Mexico, focusing on optimizing metallurgical recovery through bulk sampling and targeted drilling.
• The $1.1 million program aims to refine the 2025 Preliminary Economic Assessment (PEA) by testing heap leach recovery assumptions, with results expected to be incorporated into an updated PEA targeted for Q1 2027.
• The 2025 PEA identified metallurgical recovery as a key value driver, indicating that increasing recovery from 80% to 90% could increase the after-tax Net Asset Value (NAV) by approximately 90%, from $84 million to $159 million.

Key Details

• 2026 Work Program Budget: $1.1 million (U.S.).
• Objective: Refine process assumptions of the 2025 PEA and maximize metallurgical recovery of uranium from the heap leach process.
• Sampling Program:
  • Bulk samples collected in March from mineralized surface exposures (representative of open pit mining at St. Anthony mine) delivered to Hazen Research in mid-March.
  • Core from up to 16 new drill holes to be completed under existing permits (representative of underground mining at Sohio Areas I, II, and III).
  • Drilling scheduled to commence in late April and conclude in June 2026.
• Metallurgical Testing:
  • 42-week laboratory testing campaign commencing in May 2026 at Hazen Research Inc.
  • Includes mineralogical characterization, bottle roll recovery testing, and long-term column leach tests.
  • Tests will examine multiple oxidants, lixiviants, and application rates to optimize heap-leach uranium recovery.
• 2025 PEA Financial Highlights (Base Case):
  • Mine Life: 13 years.
  • Production: Average 1.4 million lbs U3O8 annually; peak 2.0 million lbs; total life-of-mine 18.1 million lbs.
  • After-tax NPV (8%): $83.9 million (U.S.).
  • After-tax IRR: 17.7%.
  • Direct Preproduction Capital: $64.2 million (U.S.).
  • Total Initial Capital: ~$112.7 million (U.S.).
  • Life-of-Mine After-Tax Free Cash Flow: $287 million (U.S.).
  • Operating Costs: $41.60 (U.S.) per pound recovered.
• Sensitivity Analysis:
  • Increasing metallurgical recovery from 80% to 90% could increase base-case after-tax NAV by ~90%, from $84 million to $159 million.
  • NPV sensitivity to uranium price: $154 million at $100/lb, $325 million at $125/lb, and $488 million at $150/lb.
• Financing Context: CEO Colin Healey noted the program is supported by a recent $15 million bought deal financing.
• Technical Report: Prepared by SLR International Corp. in accordance with NI 43-101.

Notable Quotes

• Colin Healey, CEO: "Since acquiring the Cebolleta project in mid-2024, we have rapidly advanced its potential by expanding the resource and delivering a robust 2025 PEA that highlighted its strong fundamentals. We are excited to commence the 2026 work program, supported by a modest $1.1-million (U.S.) budget following our recent $15-million bought deal financing, reflecting the disciplined approach to capital allocation that we want to be known for. Importantly, this relatively small investment is targeting meaningful value creation... This highlights the significant upside potential in Cebolleta and further reinforces its potential as a key source of domestic uranium production."