Bannerman Energy Advances Etango Uranium Project with CNOL $321.5M Strategic Investment Nearing Closure

Bannerman's Etango Uranium Project: Strategic Development and Operations

Bannerman Energy Ltd, listed on the ASX, is focused on uranium exploration and development, primarily through its 95% ownership of the Etango Uranium Project in Namibia. This project is a significant uranium development opportunity within Namibia, supported by extensive feasibility and engineering studies. Situated in a well-established uranium jurisdiction in southern Africa, Etango benefits from access to skilled labour, established supply chains, and regulatory frameworks familiar to the nuclear sector.

The Etango Project is designed as an open-pit, heap leach operation to produce uranium oxide concentrate (U3O8) for global nuclear utilities. It features a long mine life and a proven resource base underpinning detailed engineering and design efforts. Bannerman's strategic approach emphasizes disciplined, risk-managed development and sustainable project delivery. With over 560 personnel employed through multiple Namibian contractors, the early works program highlights the company's commitment to local economic involvement and workforce growth.

Early Works Construction Progressing on Budget and Schedule

During the June quarter, significant progress was made in physical construction at Etango. Bulk earthworks are approximately 92% complete, with focus on finalising the freshwater pond, wet plant terraces, and leach pad infrastructure. The contractor workforce exceeds 560 personnel, reflecting the scale of early works, and the project has achieved 1.1 million lost-time injury-free hours, underscoring strong health and safety management.

Concrete construction has advanced considerably in key dry plant infrastructure, with major processing facilities becoming visible. To date, 10,800 cubic metres of concrete have been cast, representing about 60% of the Phase 1 and 2A concrete packages. Production of heap leach drainage aggregate continues to meet specifications, with roughly 29% of the total requirement completed. These early works are tracking within budget and schedule, demonstrating the project team's capability and effective contractor oversight. The visible site progress supports the narrative of readiness for the post-Final Investment Decision development phase.

Design and Procurement Align with Construction Timeline

Detailed engineering and procurement activities are advancing per the approved development schedule. Civil and mechanical design for the dry plant is approximately 94% complete and aligned with construction drawing issuance timelines. This progress enables confident procurement of long-lead items, reducing construction schedule risks. Wet plant design remains on track for construction drawing issuance later in 2026, ensuring coordinated engineering across major plant systems.

The company's emphasis on timely design completion and procurement prepares it to transition from early works to full project development after the targeted Final Investment Decision. Long-lead procurement for major equipment is critical in large industrial projects, and the advancement of design packages supports efficient construction execution once full funding is secured. Coordination across design, procurement, and site works reflects integrated project management across multiple disciplines and contracts.

Strategic Water Supply and Infrastructure Partnerships Strengthen Long-Term Operations

Key infrastructure and utilities supply activities are progressing well, particularly permanent water supply arrangements vital for uranium heap leach operations. Bannerman has secured a permanent water supply agreement with NamWater, Namibia's national water utility, ensuring long-term water access for Etango's operational phase. Phase 1 of the permanent water supply pipeline is approximately 87% complete, marking a major infrastructure milestone underpinning operational readiness.

Reliable water supply is essential for heap leach uranium operations, and the agreement with NamWater provides regulatory certainty and supply assurance for the project's lifespan. The pipeline installation progress indicates effective coordination among stakeholders. These utilities agreements and infrastructure developments are prerequisites for moving from early works to full production and support the pathway toward Final Investment Decision and construction commencement.

CNOL Strategic Investment Structure Enables Debt-Free Development

In the March quarter, Bannerman executed binding subscription and joint venture agreements with CNNC Overseas Limited (CNOL), a subsidiary of China National Uranium Corporation (CNUC), listed on the Shenzhen Stock Exchange and part of China National Nuclear Corporation (CNNC). This transaction offers Bannerman a clear, debt-free funding route for Etango's construction, significantly lowering financing risk while preserving meaningful offtake and financial flexibility.

The agreements establish a joint venture via Bannerman Energy (UK) Ltd, with CNOL subscribing for new shares in the UK entity. Upon completion, ownership will be 55% Bannerman and 45% CNOL, with the joint venture holding a 95% interest in Etango. CNOL will initially invest US$294.5 million, plus up to US$27 million to reimburse Bannerman for CNOL's 45% share of project expenditures from 1 July 2025 to completion. These reimbursements will be paid directly to Bannerman, supporting its 55% share of future funding and working capital needs.

Conditions Precedent on Track for Q3 2026 Completion

Progress toward finalising the CNOL strategic investment continued in the June quarter, with Bannerman and CNOL collaborating through a transaction Steering Committee overseeing technical, commercial, and governance workstreams. Multiple conditions precedent have been satisfied or are underway, with regulatory and stakeholder engagement proceeding as planned.

Completion of the Share Subscription Agreement depends on satisfying or waiving several conditions precedent. Filings with Chinese authorities (NDRC and Ministry of Commerce) and foreign exchange registration are in progress. Shareholder approval from CNUC has been obtained. Clearance from the Namibian Competition Commission is secured. Amendments to the OEF funding agreement reflecting new joint venture ownership have been completed. Key Etango infrastructure supply contracts have been executed. Additionally, customary regulatory approvals and absence of legal restraints have been confirmed. Bannerman expects to satisfy remaining conditions and complete the transaction during Q3 2026, targeting a positive Final Investment Decision soon after.

Life-of-Mine Offtake Deal with Tier-1 Nuclear Utility Partner

A core element of the CNOL investment is a life-of-mine offtake entitlement for CNOL covering 60% of Etango's actual production. This arrangement grants CNOL a Tier-1 nuclear utility offtake channel aligned with its global nuclear utility role, while Bannerman retains 40% of production for independent marketing. Offtake terms are market-based, ensuring Bannerman maintains commercial flexibility and uranium market exposure for most of its output.

Binding offtake terms are outlined in the Shareholders Agreement to be executed upon share subscription completion. A full offtake agreement, based on these terms, will be documented post-completion and before Etango production starts. This arrangement secures demand certainty for 60% of production with a major nuclear utility while preserving Bannerman's marketing independence for the remainder. It reflects a balanced partnership aligning incentives between Bannerman and CNOL.

Robust Quarter-End Liquidity and Positive Uranium Market Trends

As of 30 June 2026, Bannerman reported a strong cash balance of A$53.1 million and liquid assets of A$11.5 million, reflecting prudent financial management and disciplined capital use. This liquidity provides flexibility to support early works operations and working capital through transaction completion and Final Investment Decision. The company maintained this cash position while funding significant early works and development expenditures.

The long-term uranium price outlook remains positive, with the term price rising to US$97/lb U3O8 by quarter end, a US$4/lb increase during the period. This price strength reflects global decarbonisation goals, nuclear energy policy support, and utility procurement for carbon-free energy. A stronger uranium price at Final Investment Decision could improve project economics and financial flexibility. Combined with strong liquidity and disciplined execution, this environment supports transaction completion and project advancement.

Project Momentum Builds Toward Final Investment Decision

Bannerman's Managing Director and CEO, Gavin Chamberlain, stated that "the June quarter further demonstrated the discipline and methodical approach being applied to the development of Etango," highlighting that "early works continue to track to overall schedule and budget, reflecting the capability of our project team and contractors, and the strong focus on execution risk that underpins every stage of the development programme." His comments underscore the company's strategic emphasis on construction execution, risk management, and post-FID preparation.

The company noted that "with the project footprint increasingly visible on site, engineering and infrastructure activities advancing to plan, and a clear pathway towards transaction completion and FID, Etango continues to build momentum from a position of strong project readiness." Operational metrics support this narrative: over 560 personnel on site, 1.1 million lost-time injury-free hours, 92% bulk earthworks completion, 60% concrete casting of Phase 1 and 2A packages, and design activities exceeding 90% completion. Visible physical progress combined with advancing CNOL transaction conditions sets a clear course toward Final Investment Decision and full construction commencement. This operational momentum and strategic financing proximity position Etango to transition from early works to full development in 2026.