Laramide Resources Reports Enhanced Westmoreland Uranium Project PEA with $741M Post-Tax NPV and 33% IRR

Robust Financial Indicators Reinforce Project Viability

The updated PEA for Westmoreland highlights attractive financial returns for investors and stakeholders assessing the project's development prospects. At the projected long-term uranium price of US$90 per pound, the post-tax NPV is US$741.1 million using a 7.5% discount rate, alongside a post-tax IRR of 33%. Pre-tax figures are even stronger, with an NPV of US$1.126 billion and an IRR of 43%, underscoring the project's solid economic foundation.

The short payback period of approximately 2.5 years signals rapid capital recovery, a key consideration for investors evaluating cash flow and risk. The average C1 operating cost of US$32.40 per pound positions Westmoreland competitively within the current uranium market, reflecting updated engineering and cost inputs aligned with present market conditions. Converted at an exchange rate of 0.70 AUD per USD, the post-tax NPV equates to A$1,058.7 million, offering perspective for Australian stakeholders.

Production Profile and Operational Details of Westmoreland

Westmoreland is planned as a conventional open-pit mine with an 11-year operational life, processing approximately 2.9 million tonnes annually at up to 8,000 tonnes per day. The PEA forecasts average annual uranium trioxide equivalent production of about 4.9 million pounds from Years 2 to 10, peaking at 6.2 million pounds in Year 2. Total life-of-mine production is estimated at roughly 47.9 million pounds, establishing the project as a significant long-life uranium supplier.

The processing approach involves conventional agitated tank leaching with sulphuric acid and pyrolusite, followed by filtration, Continuous Ion Exchange recovery, acid neutralisation, and refining to produce marketable uranium oxide concentrate. The design achieves an overall uranium recovery rate of 95%, reflecting advanced metallurgical optimization. The operation expects an average diluted feed grade of 788 ppm uranium and an open-pit strip ratio of 4.2:1 throughout the mine life, balancing output and mining efficiency.

Mineral Resource Base and Deposit Breakdown

The PEA is supported by a Mineral Resource estimate effective 31 January 2025, compliant with the JORC Code (2012 Edition) and Canada's NI 43-101 standards. The estimate includes 27.8 million tonnes of Indicated Mineral Resources grading 770 ppm uranium, containing about 48.1 million pounds of uranium metal equivalent, plus 11.8 million tonnes of Inferred Resources grading 680 ppm uranium, containing approximately 17.7 million pounds of uranium metal equivalent.

The Indicated Resources are concentrated in four main deposits: Redtree (14 million tonnes at 880 ppm), Huarabagoo (2.5 million tonnes at 890 ppm), Junnagunna (10 million tonnes at 640 ppm), and Long Pocket (1.3 million tonnes at 420 ppm). Life-of-mine production targets are based on roughly 79% Indicated and 21% Inferred Resources, with inferred tonnes mainly scheduled toward the end of mining and subject to mining factors. No Mineral Reserves have been defined for Westmoreland at this stage.

Innovative Project Design and Environmental Strategy

The updated PEA incorporates a decade of advancements in mine planning, engineering, and environmental management. A notable feature is the integrated closure and tailings management plan, which includes filtered tailings and progressive backfilling of the Redtree pit to minimize environmental impact while maintaining operational efficiency. This integrated closure planning supports long-term site rehabilitation and post-mining land use.

Power supply options evaluated include hybrid diesel systems, solar power, and battery storage, aligning with modern sustainability practices. Combining conventional mining methods, proven metallurgical processes, and comprehensive environmental management, Westmoreland is positioned as a technically low-risk, modern uranium development. The 95% uranium recovery rate and optimized process design contribute to the project's competitive operating costs.

Capital Investment and Development Schedule

The PEA estimates initial capital costs at approximately US$456 million, with an additional US$84 million contingency (18% buffer). This estimate aligns with the ±35% accuracy typical for preliminary economic assessments. Sustaining capital over the 11-year mine life, including contingencies, is projected at US$84 million to support ongoing operations, equipment replacement, and maintenance.

Laramide plans to file the NI 43-101 Technical Report supporting the PEA on sedarplus.ca within 45 days of this announcement. This report will provide detailed engineering, geological, metallurgical, and economic data for investor and regulatory review. The updated assessment represents a material change disclosure, reflecting its significance to the project's development outlook and investor insight.

Exploration Potential and Expansion Opportunities

While the PEA focuses on Mineral Resources at Redtree, Huarabagoo, Junnagunna, and Long Pocket, Laramide continues exploring the broader Westmoreland district. The company is assessing resource extensions and multiple satellite targets, including the 'Link Zone' between Huarabagoo and Junnagunna, as well as Amphitheatre, Moogooma, U-Valley, and Mageera in the Northern Territory. These early-stage prospects could enhance future resource definitions and mine planning beyond the current study.

The PEA does not incorporate potential gold or rare earth element values, which remain in early evaluation stages. This indicates Westmoreland may host polymetallic mineralization with value beyond uranium, offering potential for operational diversification if market and regulatory conditions permit.

Regulatory Progress and Next Steps

Laramide is ready to submit a Mining Lease Application to the Queensland Government as soon as permitted, advancing Westmoreland toward pre-feasibility and feasibility studies. This readiness reflects achievement of key internal milestones supporting the transition from preliminary assessment to detailed engineering and regulatory engagement. Management’s confidence in the project's technical and economic fundamentals underpins this development phase progression.

The updated PEA marks a significant advancement over the 2016 study by incorporating additional geological data, drilling results, updated cost inputs, and refined engineering design. Multiple drilling campaigns and resource re-estimations have improved resource continuity and cost-effectiveness evaluations. Subsequent phases will include detailed pre-feasibility or feasibility studies, environmental assessments, and regulatory approvals, requiring sustained capital and technical efforts but paving the way for potential financing and construction.

Uranium Market Dynamics and Strategic Importance

Laramide’s management highlights the strategic significance of new uranium supply amid global nuclear energy growth. The announcement references a recent State visit by India’s Prime Minister to Australia, during which a long-awaited uranium supply agreement was signed, underscoring Australia’s importance as a uranium supplier for expanding nuclear energy markets. Management notes growing global uranium demand driven by renewed nuclear investments and decarbonization goals.

However, management warns that Australia’s role as a reliable uranium supplier is "diminishing quickly" due to a lack of aligned national and state policies supporting uranium mining development. Westmoreland’s status as one of Australia’s largest undeveloped uranium projects offers strategic value to Laramide shareholders and regional allies dependent on nuclear power for energy security. Nonetheless, project advancement hinges on Queensland government approvals and commercial financing.

Technical Oversight and Qualified Person Review

The technical data in this announcement complies with Canadian NI 43-101 standards and has been reviewed by Rhys Davies, MGeol, MSc, MAIG (RPGeo), FGS, Vice President Exploration for Laramide and a Qualified Person under NI 43-101 and the JORC Code. Additional Competent Persons under the JORC Code involved include R. J. Siddle (Mineral Resources), Sandy Hunter (Mineral Processing and Infrastructure), Anthony Stepcich (Mining), and Timothy Rowles (Tailings Management). This multidisciplinary oversight ensures accuracy across geology, metallurgy, mining engineering, and environmental management.

The announcement includes standard cautionary notes that the PEA is preliminary, includes Inferred Mineral Resources considered too speculative for Mineral Reserves classification, and actual outcomes may vary materially. Capital and operating costs are estimated within ±35% accuracy appropriate for this study stage, with no guarantee of advancement to pre-feasibility, feasibility, or production.

Study Limitations and Risk Factors

The PEA clarifies that production targets and financial forecasts are based on Mineral Resources, not Mineral Reserves, with no assurance these targets will be met. Inferred Resources, comprising 21% of the life-of-mine schedule, have low geological confidence and may not convert to Indicated Resources. While Modifying Factors support development scenario assessments, progression to feasibility or commercial operation is uncertain.

Forward-looking statements are subject to significant risks including exploration and production uncertainties, permitting delays, resource estimation variability, health and safety issues, commodity price fluctuations, currency exchange risks, competition, capital access, and legislative changes affecting taxation and environmental regulations. These disclosures reflect standard caution for mineral projects at the preliminary stage where technical feasibility is demonstrated but significant risks remain.