Skyharbour Resources Ltd (SYHBF) January 2026 Capital Markets Day Transcript

i hope everyone's having fun in this market we're finally in a bonafide bull market and big thank you to jeff and the team for hosting this is a great conference we always enjoy ourselves here please read this i will be making forward-looking statements sky harbor resources high-grade uranium exploration discovery prospect generation in the athabasca basin 1.6 million acres of projects, 43 different assets. That is massive. We've been building that over the last 12 years, assets ranging from early-stage exploration properties right through to more advanced-stage exploration assets that host high-grade, multi-percent uranium in previous drilling and or deposits. We have pounds in the ground. That's a key differentiator. We just announced a major joint venture with Denison Mines. Denison is the newest producer in the Athabasca Basin. They're a multi-billion dollar company. They're our largest shareholder. And we just signed a $61.5 million option joint venture agreement with them at our Russell Lake project, setting the stage for over 15,000 meters of drilling at Russell next year, 50% more than we've been able to fund in each of the previous few years. So keep an eye out for news flow on Russell. I know that's what Jeff and his team are excited about is it's one of the better, more prospective exploration properties strategically located in the Athabasca Basin. Now, in addition to Russell, Moore Lake, 100% owned co-flagship advanced stage exploration asset that we've had in our portfolio for some time. this project has delivered big results we've had just recently up to 12 percent u308 in some drilling we've had grades as high as 20 percent relatively shallow mineralization and a deposit that is interesting because of the two new mining methods in the athabasca basin isr and saber both low-cost surface mining methods the mineralization that we have at moor lake we're expanding a resource there is shallow enough and sandstone hosted that down the road it potentially could be extracted using one of those two mining methods something we're looking at a little bit closer this year but the drilling is still key there we have eight to ten thousand meters planned at Moore Lake and then we add in our prospect generator business now this is a key again key differentiating feature of Sky Harbor we have a dual pronged strategy focused exploration at russell and more plus prospect generation 10 partner companies spending 120 million dollars across a handful of those 43 projects in our portfolio so in total you are getting exposure as an investor in this company over 30 000 meters of drilling in the top uranium highest grade uranium district in the world very unique optionality value that really no other company offers shareholders and investors. And one last note on this slide, if you don't believe me as the CEO, believe these three partner companies. They've either made large investments into Sky Harbor or they're project partners with us. Denison Mines, I mentioned, one of the largest diversified mining companies in the world in Rio Tinto, and France's largest nuclear and uranium mining company in Arano. So we have three notable strategics. Great management team and board. I've running the company since inception I come from a finance and entrepreneurial background my chairman Jim Pettit and I were here in Vancouver we built and sold a gold company called Bayfield Ventures we sold that to new gold and we started Sky Harbor at the bottom of the uranium market taking advantage of a contrarian opportunity Dave Cates president and CEO of Denison Mines again they're our largest shareholder and now a project partner of ours Dave personally is a very large shareholder him and I you can see with our set I filings we've been adding to our positions Denison just recently bought millions of shares in the open market after we closed this big property transaction with them so again a big vote of confidence from much larger company Joe Gallucci head of investment banking at Ventum sure most of you have accounts there he just joined as their head banker brings a wealth of capital markets experience to the team and a great geological team headed up by Siddhar Donmez. Siddhar joined us after 20 years at Denison. He was there at the discovery of Phoenix and Griffin. He saw the exploration success we were having at a Russell and Moorlake project the last few years and joined us full-time, so a team that knows how to make uranium discoveries in the basin. Cap structure, $212 million shares out, $110 million to $120 million valuation. The market has responded in the last few weeks, in the last month, month and a half to the positive news flow that we've been coming out with. And we're just getting started with the 30 plus thousand meters that will be kicking off for the 2026 campaign. We're well funded. We have over 11 million in the Treasury. Some of that coming from the deal with Dennis in late last year. But again, because of our prospect generator business, we generate two to three million dollars a year in cash flow. cash and share payments from partner companies covers all the gna covers additional staking and acquisitions we've only done one hard dollar financing in six years not many exploration companies can say that we take advantage of the flow through in canada raising money at a premium lower cost of capital notable strategic shareholders management and insiders we own about four percent you can see we've added to our positions denison and rio again i mentioned and Denison has recently increased their position. They're just under 10%, and you'll see some other notable names. We're in most of the uranium mining ETFs and in the well-known uranium-centric funds. I won't spend much time on these slides. Look, there is a renaissance underway with uranium market, nuclear fuel, and the nuclear industry. 200 million pounds of annual demand, total demand. We're only producing 175 million pounds, and it's relatively stagnant. cumulative supply gap of almost 380 million pounds through the next decade and most importantly I think one of the biggest drivers for the price moving higher will be this uncovered demand over the next 10 to 15 years utilities have to start contracting again in fact in Q4 last year over 70 million pounds was contracted in the long-term market the biggest quarter and many many in several decades and I think we're gonna see that carry through this year and And hence, we're seeing the spot and the long-term price increase. We're also seeing the physical holding companies like Sprott, the Physical Trust, and Yellow Cake Fund in London raising money and stacking and sequestering pounds. Our project portfolio, like I said, one-of-a-kind, 1.6 million acres, 43 projects. You have the full suite of exploration properties in the basin with Sky Harbor. Our focus is at the main two projects, but before I move on to that, what are these projects worth in a better market? In 2007, four of these 43 projects were in a company that was a half-a-billion-dollar company. We're about $110 million, $120 million, so the re-rate potential on this asset base is very, very, very strong. Russell Lake and Moorlake, over a quarter million acres of prime real estate that we have interest in, now partners with Denison at Russell between the MacArthur River Mine, the Key Lake Mill, and Denison's Wheeler River Project. We're the only junior with claims in this direct area, and Denison is building the Phoenix Mine just within a kilometer of our property boundary at Russell. So hence, you can see the motive for the partnership that we have with them on their side, the incentive that they have to come in and fund the exploration at this project. Now, just a quick final note before I talk about the JV the the two projects benefit from substantial infrastructure road access power lines and an exploration camp we generate revenue from each and every year we have other operators that we rented out to this brings our drill costs down below 350 all-in Canadian a meter that's some of the lowest cost drilling in the Athabasca basin now you'll see the bottom image the pink the yellow the green and the blue claims we've broken up the Russell project as a part of this Denison JV into four separate properties. Denison is operator at the yellow and the blue claims, we're operator at the pink and the green claims, and we're planning a 15 plus thousand meter drill program mostly funded by Denison across the whole property area. Denison has to fund 40 million in exploration to complete the earning up to 70% at some of the claims at the project. So this structure, JV structure will expedite the exploration success the discovery success at the project we're confident this year will deliver market moving game-changing results and with a company a multi-billion dollar company building a mine just a few kilometers away from where we're drilling i think most people can put two and two together there's probably a larger corporate transaction on the back of exploration success at that project moving on to moor lake we own a hundred percent of this project we're planning 8 to 10,000 meters of drilling at Moorlake. Relatively shallow high-grade mineralization and a couple of regional targets as well that will be drill testing. Our prospect generator business, you'll see here a snapshot. I won't go through all of it. 10 companies spending over $118 million in combined project consideration. Cash shares coming into Sky Harbor as well as project funding from these partner companies. And then just wrapping up here, pivotal year ahead, Over 30,000 meters of combined drilling across eight projects in our portfolio, numerous other properties that we're looking to option or joint venture out, a rising uranium market. Really, Sky Harbor has become a one-stop shop for investors to have high-grade exploration and discovery potential in the Athabasca Basin, a unique optionality value with the prospect generator business. So thank you very much. I appreciate, again, everyone being here. We're at the booth. Please do stop by.