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Tag: NexGen Energy Ltd.

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NexGen Energy Ltd. (TSX:NXE) – IBA Signed with CRDN; Development of Rook I Continues

NexGen Energy (NXE) announced the signing of an Impact Benefit Agreement (IBA) with the Clearwater River Dene Nation (CRDN), covering all phases of the Rook I project, which hosts the 100%-owned Arrow uranium deposit. The IBA is coincident with the Rook I Project transitioning into the next stage of development with numerous site-based infrastructure and preparatory construction programs to commence in 2022. In our view, this deal should put to rest any rumours of animosity between the CRDN and NexGen, based on the occurrence of several road blockades in NW SK over the past couple of years. We had reasoned that the blockages were more about the volume of junior uranium companies exploring in the area, as opposed to specific work being completed by NexGen, particularly because it had already signed the 2019 Study Agreement recognizing the importance and future inclusion of the CRDN. Meanwhile, permitting continues for what we believe could be one of the world’s largest (337.4M lb of high-grade M&I+I U3O8), if not best uranium deposits.

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Red Cloud | redcloudfs.com

Uranium Market Update – Uranium Spikes 12% on Bloomberg Article About Russian Disruptions

This price increase is following a news article from Bloomberg yesterday speculating that the US might sanction Russian uranium supplier, which had previously been excluded from the Russian oil and gas import ban. UxC suggests that the article triggered a huge jump on Wednesday afternoon following its daily 2:30pm price cut-off. It appears that the response is mainly from traders bidding up the price.

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Red Cloud | redcloudfs.com

Uranium Market Update – SPUT Buying Spikes U3O8 Prices Upon Security of Supply Concerns

Uranium prices are up sharply on apparent Sprott Physical Uranium Trust (SPUT) buying as security of supply concerns emerge in light of economic sanctions levied against Russia in response to the Ukraine invasion. Funding of additional physical U3O8 purchases by SPUT may help propel prices above US$50/lb and perhaps close to incentive prices needed by project developers. We anticipate uranium equities to react very positively.

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Red Cloud | redcloudfs.com

NexGen Energy Ltd. (TSX:NXE) – Drilling Results Confirmed; Will Likely Require Follow Up

NexGen Energy (NXE) announced radioactivity results and completion of 2021 field programs at the Arrow deposit at its 100%-owned, Rook I property, Athabasca Basin, SK. Eighteen drill holes (~10,849m) focused along strike and below the world-class Arrow Deposit (~4,449m) and adjacent EM conductors (~6,400m). The modest radioactivity found at depth was the highlight of this press release. Coincidentally, radioactivity was noted both along trend to the east of Arrow and on other parallel conductors to the SE. Geotechnical work also confirmed that ground close to potential underground workings are competent and suitable for development. Overall, we believe that these positive drill results do require follow-up exploration. While they may not yet be material for a ~$2.3B firm that owns, what we believe to be one of the largest (337.4M lb of high-grade M&I+I U3O8), if not the world’s best uranium project. However, these deposits do not typically occur in isolation either, so we encourage management to continue exploring the property. The Rook I FS suggests significant production, at very low cost, over a long LOM. Permitting for Arrow continues.

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Red Cloud | redcloudfs.com

Red Cloud Oktoberfest: Fall Mining Showcase 2021 – Day Three Recap

Yesterday, Red Cloud hosted the third and final day of its three-day 2021 Oktoberfest Fall Mining Showcase, which featured 28 presenting companies including our keynote speaker John Ciampaglia, CEO of Sprott Asset Management, and had over 1,000 participants registered in advance of the event. With this note, we want to provide a quick recap of the highlights from the conference for those who were unable to attend the live event. A recap of our Day One and Day Two highlights can be found on our research portal page. Replays are also available on the Red Cloud website.

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Red Cloud | redcloudfs.com

Q3 Producer Preview & Commodity Price Update – Lowering Gold Price Forecasts While Most Commodities Increased

Q3 operating and financial results are to be announced over the next few weeks. While gold is out of favour, prices have been trading within a narrow window that have allowed companies to continue to turn profits, despite an uncertain outlook. Late summer was hard on most commodities as precious and industrial metals alike fell on a slowdown in global economic growth due to surging fuel prices, Chinese power restrictions, labour shortages, disrupted global supply chains and a stronger USD. Metal prices came under further pressure as major property developer Evergrande missed further bond payments, impacting iron ore and copper prices. With this update, we provide new commodity price and FX forecasts, updated coverage estimates, and a fresh set of top picks.

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