Silex Systems (SLX) investor relations material

Commercialisation strategy and technology highlights

• SILEX laser enrichment technology offers higher efficiency and throughput than centrifuge methods, aiming for lower costs and classified under strict government security in Australia and the US.

• GLE, a US-based JV (51% Silex, 49% Cameco), holds exclusive rights to commercialise SILEX technology, with Silex earning perpetual royalties of 7–12% on enrichment revenues.

• Key technology demonstration (TRL-6) was completed in October 2025, de-risking the path to commercialisation and enabling progress to full-scale plant design.

• GLE secured a 700-acre site in Paducah, KY, adjacent to DOE's former plant, with exclusive access to 150 million pounds of uranium tails for up to 30 years of feedstock.

• US DOE awarded GLE up to $28.5m in January 2026 to advance next-generation enrichment technology.

Market opportunity and industry context

• The US nuclear industry is experiencing a renaissance, with 94 reactors and strong public and private support, but remains heavily reliant on imported uranium and enrichment services.

• Recent legislation, including the Prohibiting Russian Uranium Imports Act (2024), is driving demand for domestic supply solutions, with Russian imports banned from 2028.

• Global nuclear fuel markets have tightened, with uranium, conversion, and enrichment prices rising 100–200% since 2022 due to geopolitical tensions and supply chain disruptions.

• Forecasts show uncovered US uranium demand exceeding 25 million lbs annually from 2030, and enrichment demand rising to 14 million SWU by 2035.

• GLE’s PLEF project is positioned as a single-site solution for US uranium, conversion, and enrichment, addressing critical supply chain vulnerabilities.

Financial and operational outlook

• PLEF aims to produce up to 5 million lbs of natural uranium and 2 million kg of conversion capacity per year, with potential annual revenues of $450m (uranium) and $110m (conversion) at current prices.

• Initial LEU production could reach 2 million SWU/year, expandable to 6 million SWU/year, with potential revenue of $350m/year at current SWU prices.

• Silex’s equity in GLE and perpetual royalty structure provide dual value streams, with Cameco holding an option to increase its stake by 26% before April 2028.

• As of December 2025, Silex held $200m in cash and term deposits, with no corporate debt.