Skyharbour Resources Ltd (SYHBF) January 2026 Conference Transcript

Joining me now is Jordan Trimble, President and CEO at Sky Harbor Resorts. It's always great to see you, sir. Great to be here. Great to catch up. And on this occasion, big, big news. Just a while ago, you announced with one of your shareholders and neighbors, Dennis and Mines, a transformational deal, as you call it, for joint ventures on Russell Lake. And that includes Wheeler North, Getty East, and combined total deal numbers, over $61 million, potentially. So Denison's a shareholder. It's a neighbor. David Cates, the CEO, has said, you know, I've been eyeing some of these claims for like 20 years. And so take us through the story here.

So a massive deal for us and something that we worked on for the better part of 2025, finally announcing and closing it late last year. So this is brand new news that really sets the stage for a big year ahead. Just to break down the deal structure a little bit. So as you pointed out, we've reorganized the project into four separate properties. One of the challenges for any exploration company in the Athabasca Basin in particular is if you have a big property, big land package. How do you prioritize targets? How do you go about drilling and exploring your best targets with as little equity dilution as possible? Now, if you have lots of money or you're willing to take on a lot of equity dilution to raise that money, you can do it. But we're very cognizant of the dilution. And so this structure brings in really the best partner we could ask for. A company we know well, Dave Cates, as you know, has been a director of Sky Harbor for many years. He's a large shareholder. Denison's actually added to their share position. They bought in the open market shortly after we closed this transaction. So they've been a large shareholder of Sky Harbor for a number of years. They've come in now. It's a $61.5 million, and that's $40 million in exploration funding from Denison as a part of the earning options that they have at a few of the property areas. But it's also consists of upfront cash and share payment, which has been made to Sky Harbor, as well as some additional cash payments over the next few years. So a very large transaction and it breaks the property up into much more manageable bite-sized properties. You mentioned Wheeler North, Denison will be the operator there. they're going to start drilling this winter and within the next few weeks here. Those are the claims directly surrounding the Wheeler River project proximal to Phoenix and Griffin. And keep in mind too, the Phoenix deposit is just a kilometer away from our property boundary at Russell, right? So when Dave's talking about, you know, having looked at these claims and being interested in these claims for a number of years, it kind of goes without saying given the proximity. Right. It's also important to note that a lot of the same geology that the fertile uriniferous trends or conductors that are on Wheeler trend onto Russell. That's another great benefit of this deal is that really allows us to work with Denison's team, our technical team, and their technical team joining forces now to expedite the discovery process at the project with as little equity dilution to Sky Harbor. So So we announced just last week, call it a major expansion to the annual budget at this project. Obviously, now with Denison as a co-funding partner and funding a good chunk of the drilling in 2026. So we're planning at the separate property areas in total over 15,000 meters of drilling to give you a sense of what we've done in previous years. You know, at best, at most, we've drilled 11, 12, maybe 12,000 meters, anywhere from, call it 10 to 12,000 meters. Us having to fund all of that and really only just scratching the surface of the project. Now we can increase that budget and the meters drilled substantially without the equity dilution. So a big deal for us sets the stage for a very important year ahead, a pivotal year ahead. And couldn't be happier with the new partner, Denison, as we had that longstanding relationship with them. And we've just fortified that partnership with this transaction.

So 15,000 metres this year at Wheeler North, Getty East. Can you give us some more details, high level, in terms of what the team is planning?

Yeah, so about half of that, 7,500 metres, is planned at Wheeler North, again, funded by Denison. and we'll probably drill between 3,500 to 4,000 meters at Getty East. At the Getty East subproperty, we're operator, Denison's funding it though. And then at the majority of the original project area, we've renamed the RL property. So that's, if you look on the image, the map on the website, you'll see we've color coded these new properties to make it easy. And you'll see it's the kind of big stretch of claims that runs north to south on the western part of the original Russell Lake or eastern part of the original property area. Those RL claims, we own 80%. Denison will retain a 20% minority interest. They are required to fund that 20% for the first few years. Those claims with us as operator, we are planning a four to 5,000 meter drill campaign, probably over several phases throughout the year. So in total, over 15,000 meters across these three new properties at Russell, and a good chunk of it funded by our partner, Denison.

Now, something else on a different front, the Maverick main zone, high-grade results there, nearly 12% U308 over 1.6 meters was one of the highlights, and the team came up with a new target at Moorlake, right?

Yes. So, you know, Moorlake continues to deliver for us and our shareholders. We announced up to 12, almost 12 percent over 1.6 meters. So continuing to expand the high grade mineralization at those Maverick zones. And it's relatively shallow mineralization, as we talked about previously, potentially suitable down the road for one of the two surface mining methods, Zyassar or Sabre that are being used or proposed to mine in the basin. So we're going to continue expanding and drilling at the Maverick zones and looking to expand the high-grade zones there. However, we've also now identified a couple of new regional targets. The one of particular interest this year is the Nomad Zone, which is actually just a few kilometers to the southwest west of Maverick. And it's an area that, for a number of reasons, was just overlooked historically. One of the reasons being there wasn't much in the way of modern EM surveys that were carried out. So the conductors weren't well known. We've rectified that now and we know that there are top priority targets there that we've now gone in and done some initial exploratory drilling at. And we're seeing all the right ingredients for high-grade mineralization. We now want to go in this year, follow up on those initial few exploratory holes. So we'll be doing that. But the drilling at Moorlake is starting up very shortly. We're planning 8,000 to 10,000 meters over several phases of drilling this year. So you add that to the 15,000 plus meters at Russell. You add in our other large and industry-leading partner in Arano at our Preston project. They're planning 3,500 meters at the Preston project. And then a number of our other junior partner companies will add to that. We're looking at over 30,000 meters of combined drilling across our project portfolio. This is one of the largest combined drill campaigns of any company operating in the Athabasca Basin this year.

That's saying a lot. So 30,000 meters or more across your portfolio. Transformational deal with Denison giving you momentum into the new year. So, and not to mention Uranium's in an upswing, commodity sector going, great guns. So wrap it up for us here in terms of the investment message right now.

Yeah, look, we're building Sky Harbor to be that one-stop-shop investment opportunity for investors looking for high-grade exploration, Uranium exploration, discovery potential in the best Uranium mining district in the world. Multiple shops on net with our prospect generator business and optionality value. But as you point out, with the Uranium price now moving higher and this kind of broad-based commodity bull market that we're in, this is very exciting for us. Typically, the Juniors, the smaller-cap, mid-cap companies outperform later in the cycle too. So I think you're going to see relatively better performance from the smaller and mid-cap companies. And look, This all leads to a pickup in M&A, as we know. Typically later in these cycles, you see the M&A pickup. And we're excited with the prospect of that for Sky Harbor going forward as well. Good stuff, Jordan. Appreciate it. Thank you very much. All right. Nice update from Jordan Trimble, President and CEO at Sky Harbor Resources.