Cauldron Energy (CXU) Investor presentation summary

Market and industry context

• Global nuclear energy demand is surging, with COP28's pledge to triple nuclear capacity by 2050 driving a significant uranium supply shortfall and higher prices, especially after the US ban on Russian uranium and the Sapporo 5 alliance's push for secure supply chains.

• Australia holds the world's largest uranium resources but is only the fourth-largest producer, with production trending down despite strong global demand and geopolitical alignment with Western markets.

• Western Australia (WA) faces mounting pressure to lift its uranium mining ban, as job losses in battery minerals and iron ore sectors intensify and public support for uranium mining and nuclear energy grows.

Project portfolio and resource base

• The Yanrey Uranium Project is a globally significant ISR-amenable deposit with a current resource of 38.9 Mt at 360 ppm U3O8 for 30.9 Mlb uranium oxide, making it the fifth largest in WA.

• A 25,000m drill campaign is imminent to test high-priority targets and expand the resource, with 22 exploration targets identified and significant upside potential.

• The Melrose Project offers additional polymetallic potential, with initial drilling completed and results pending.

Economic and technical highlights

• Yanrey's scoping study shows compelling economics: pre-tax NPV10 of A$449M, IRR of 79%, 1.5-year payback, and AISC of US$35.79/lb at US$75/lb uranium price.

• ISR (In Situ Recovery) is the preferred mining method, offering low capex/opex, minimal ground disturbance, and proven success in Australia.

• Project logistics are strong, with proximity to infrastructure, freehold land, and no native title issues.