Name and Location
Wheeler River uranium project, Saskatchewan, Canada.

Client
The project is a joint venture between Denison Mines (60%), Cameco Corporation (30%) and JCU (Canada) Exploration Company Limited (10%).

Project Description
The Wheeler River property hosts the high-grade Phoenix and Gryphon uranium deposits.

The preliminary economic assessment (PEA) on the project contemplates the underground development of the Gryphon deposit, followed by the Phoenix deposit, over a 16-year mine life, producing a total of 104.8-million pounds of uranium oxide (U₃O₈).

The preliminary metallurgical test results from Gryphon and Phoenix composite samples have indicated that the mineralisation is amenable to processing at any of the existing uranium mills in the eastern Athabasca basin. Overall, uranium process recovery has been estimated at 97% for Gryphon and 98.1% for Phoenix. As a result of the excess processing capacity expected at Denison’s 22.5%-owned McClean Lake mill by the end of 2016, the PEA assumes mineral processing will be completed at McClean Lake.

The Gryphon deposit is expected to produce 40.7-million pounds of U₃O₈ over a seven-year mine life. The Phoenix deposit is expected to produce 64-million pounds of U₃O₈ over a nine-year mine life.

Net Present Value/Internal Rate of Return
In the base case of the PEA a pretax net present value, at an 8% discount rate, of C$513-million and an internal rate of return of 20.4%, with payback of about three years.

Value
Initial capital costs are estimated at C$560-million.

Duration
Preproduction activities are expected to begin in 2021, with first production from the Gryphon deposit in 2025.

Latest Developments
Denison intends to proceed with a prefeasibility study for the Wheeler River project and associated environmental studies, which will take 12 to 18 months to complete.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Denison Mines, tel +1 416 979 1991, fax +1 416 979 5893 or investor relations, Sophia Shane, email sophias@namdo.com.