Quarterly Activities Report for the Period Ending 30 September 2023

Overview

Interest in uranium has skyrocketed in recent months, with the underlying drivers being the need for lower emissions and stable power generation. Nuclear reactors provide significant power for 32 countries globally, including the US, Canada, China, France, Hungary, Japan and Finland.

Demand has become a key driver of uranium prices, with Sprott Asset Management further enhancing demand by launching two investment vehicles that have already found rapid success: Physical Uranium Trust (TSX:U.UN) and Uranium Miners ETF (ARCA:URNM). Combined, existing demand and investment interest create a compelling opportunity for uranium miners and their investors.

Basin Energy (ASX:BSN) is well-positioned as a uranium exploration and development company to take full advantage of the current political and economic environment for the global supply of uranium. The company houses three projects in the world-class Athabasca Basin in Saskatchewan, Canada, which is widely known as the world’s leading source of high-grade uranium, currently accounting for approximately 10 percent of global uranium production. The company’s projects are in close proximity to high-grade uranium discoveries and mining operations within the basin.

In an interview with INN, founding director Peter Bird said, “It’s hard to look past the Athabasca Basin as the premium mining jurisdictions for large, high-grade uranium deposits. The region also ranks highly as one of the most stable mining jurisdictions worldwide, which is an increasingly important factor given the current scrutiny on the source of uranium.”

The company has interest in three highly prospective properties positioned in the southeast corner and margins of the Athabasca Basin, an area well known for its uranium endowment and pedigree.

The Geikie Project is strategically positioned on the eastern fringe of the basin, traditionally overlooked from much of the previous campaigns of uranium exploration, but deemed prospective for shallow basement hosted mineralisation.

The project was initially prioritized following a targeting review utilizing historic geophysics. Historic geochemistry confirmed the presence of uranium and suitable host lithologies. Recent nearby high-grade, shallow uranium discoveries by 92 Energy (ASX:92E) and Baselode Energy (TSXV:FIND), further enhance the overall perspectivity of the asset.

Since IPO, the company has completed airborne magnetics, radiometrics and electromagnetics, as well as initial ground prospecting. These surveys have successfully identified a series of new targets and enhanced existing targets including significant new EM conductor in the southeast of the property and multiple conductive anomalies associated with previously delineated regional north south faults, which are interpreted as suitable conduits for mineralized fluids.

Basin Energy’s two additional projects, North Millennium and Marshall, are also located next-door to world-class uranium deposits within the Athabasca Basin.

North Millennium is located just 7 kilometers north of Cameco’s (NYSE:CCJ) Millennium Deposit, which contains 104.8 million pounds (Mlb) triuranium octoxide at 3.76 percent, and 40 kilometers southwest of their flagship McArthur River Mine hosting 674.9 Mlbs triuranium octoxide at 16.9 percent. Within the property, Basin Energy has identified two high-priority targets along a 5-kilometer corridor for initial priority exploration. The initial target is where an interpreted extension of the Millennium Mother Fault intersects a strong basement conductor.

The Marshall Project contains a strong magnetic and conductive structure indicative of an unconformity-type uranium target, the asset’s primary target. Recent success along strike by Basin’s joint venture partner CanAlaska (TSXV:CVV) identified high-grade mineralization of 9 meters at 2.4 percent U3O8.

An exemplary management team leads the company with direct experience in uranium exploration and development. Blake Steele, non-executive chairman, brings both corporate and management experience within the uranium sector, as the former president and CEO of recently acquired Azarga Uranium Corp, which he led for nearly a decade. PeteMoorhouse, managing director and geologist, brings 17 years of mining and exploration experience, predominantly within the uranium sector. Additional geology, corporate financing and investment banking experts create a well-rounded team ready to capitalize on the company’s projects.

Company Highlights

• Basin Energy is a uranium exploration and development company with three highly prospective projects in the world-renowned Athabasca Basin in Canada, known for being a consistent top three global uranium producer.
• Basin Energy’s board, management team and joint venture partner have direct extensive experience in uranium exploration and development along with comprehensive expertise in corporate financing, investment banking and geology. The company’s highly prospective uranium exploration portfolio comprises:
  • The Geikie Project – located on the eastern margin of the Athabasca Basin occupying an extensive land position of 337 square kilometers, showing multiple uranium and uranium pathfinder occurrences, and is prospective for shallow, high grade mineralization that is amenable to rapid exploration;
  • The North Millennium Project – an interpreted extension of the Mother Fault that hosts Cameco’s Millennium Deposit (104.8 Mlb triuranium octoxide at 3.76 percent), located just 7 kilometers to the south; and
  • The Marshall Project – located only 7 kilometers west of Cameco’s Millennium deposit centered on a strong magnetic and conductive anomaly interpreted as a significant unconformity-type uranium target.

• Substantial shareholders on listing include CanAlaska Uranium (TSXV:CVV) (19.98 percent), prominent North American and Asia Pacific resource funds (14.8 percent), and board, management and founders (7.9 percent).
• Basin Energy is committed to sustainable development throughout its operations, aiming to minimize environmental impact from all stages of the exploration and development cycle.

The Geikie Project covers a significant area of 339 square kilometers on the eastern fringe of the Athabasca Basin, and is easily accessible from Highway 905, which is located just 10 kilometers to the east. The project is adjacent to recent discoveries of high-grade, shallow uranium by Baselode Energy and 92 Energy, further confirming the prospectivity for easily accessible uranium across the region. The company has identified six high-priority uranium targets for initial exploration.

Project Highlights:

• Exploration underway: Basin Energy has completed mapping and geochemical sampling, airborne electromagnetics and airborne magnetics and radiometrics.
• Shallow targets amenable to rapid exploration: Target horizon sits directly beneath glacial cover, in what was historically an overlooked part of the district.
• Nearby high-grade discoveries: The proximity of recent discoveries creates further confidence in the prospectivity of the project geology, being located adjacent to two recent discoveries:
  • 92 Energy’s Gemini discovery 43 meters at 0.6 percent eU3O8 including 6 meters at 2.2 percent U308.
  • Baseload Energy’s AKIO discovery was 13.2 meters at 0.55 percent U3O8 including 6.3 meters @ 0.99 percent U3O8.
• Presence of uranium: Historic prospecting for base metals identified uranium up to 0.225 percent U3O8
• Drilling targets identified: geophysical data, combined with Athabasca uranium deposit knowledge gained from recent exploration success for basement-hosted mineralization has defined multiple regionally significant fault structures intersecting suitable host lithologies.

The next phase consists of maiden drilling for summer 2023 in combination with further geophysical techniques as warranted.

North Millennium covers 58 square kilometers of prime Athabasca landholding, positioned in the southeast corner of the Basin. The project is located near two of Cameco’s prolific uranium projects. Through the analysis of existing exploration data, the company has identified two high-priority uranium targets for initial exploration.

Project Highlights:

• Favorable geology: The interpreted structural and stratigraphic geology has strong similarities with some of the major uranium deposits within the Athabasca, such as a basement conductor trend disrupted by an interpreted extension of the Millennium Deposit Mother Fault.
• Proximity to known mineralization and recent discoveries:
  • Located 7 kilometers due North of Cameco’s Millennium deposit
  • Drilling to the south of the project, proximal to the Millennium Deposit Mother Fault intersected uranium and uranium pathfinder elements.
  • A drill hole on an adjacent property completed by joint venture partner CanAlaska (TSXV:CVV) identified high-grade mineralization of 9 meters at 2.4 percent U3O8, further enhancing confidence in the project.
• Thoroughly defined exploration strategy: The company is currently compiling historical data, including completing a 3D inversion of results from an existing historic airborne ZTEM campaign. Exploration work will subsequently consist of:
  • Targeted ground geophysics
    • Stepwise moving loop time domain electromagnetics
    • Potentially DCIP resistivity
  • Exploration diamond drilling

Located in the southeast corner of the Athabasca Basin, the Marshall Project covers 112 square kilometers, and received limited historic exploration between 1979 and 2009, which included surface geochemistry, electromagnetic surveys and ground geophysics.

Project Highlights:

• Significant geophysical anomalies: Interpretation of historic geophysical data suggests a metasedimentary basin with a graphitic basal unit, cross cut by a magnetic and conductive NE/SW structure – indicative of a geological setting suitable for high-grade uranium mineralization.
• Proximity to known mineralization and recent discoveries:
• Thoroughly defined exploration strategy: The company is currently compiling historical data, including completing a 3D inversion of results from an existing historic airborne ZTEM campaign.

Exploration work will subsequently consist of:

• Targeted ground geophysics
  • Stepwise moving loop time domain electromagnetics
  • Potentially DCIP resistivity
• Exploration diamond drilling as merited

Management Team

Blake Steele – Non-executive Chairman

Blake Steele is an experienced metals and mining industry executive and director with extensive knowledge across public companies and capital markets. He was formerly president and chief executive officer of Azarga Uranium Corp (Azarga), a US-focused integrated uranium exploration and development company, and led Azarga into an advanced stage multi- asset business, which was ultimately acquired by enCore Energy Corp (TSX.V:EU) for C$200 million in February 2022.

Pete Moorhouse – Managing Director

Pete Moorhouse has 17 years of mining and exploration geology experience with extensive experience in the junior uranium sector, having spent over 10 years with ASX-listed uranium explorer and developer Alligator Energy (ASX:AGE). He holds significant competencies in the evaluation, exploration, resource drilling and feasibility studies across many global uranium and resource projects.

Jeremy Clark – Non-executive Director

Jeremy Clark has over 18 years of mining and exploration geology experience. He previously held technical and management roles at the recognized consultancy firm RPM Global for over 13 years, gaining experience across a number of uranium, base metals, and precious metals deposits globally. Subsequent to RPM, Clark established his own boutique geological consultancy firm, Lily Valley, focused in regards to compliance related issues, IPOs and M&A.

Cory Belyk – Non-executive Director

Cory Belyk holds 30 years’ experience in exploration and mining operations, project evaluation, business development and extensive global uranium experience most recently employed by Cameco in the Athabasca Basin. He was a member of the exploration management team that discovered Fox Lake & West McArthur uranium deposits. Currently CEO/VP of Canadian Athabasca uranium explorer & project generator, CanAlaska (TSXV:CVV).

Peter Bird – Non-executive Director

Peter Bird is an investment banking professional with experience leading and managing a variety of global transactions including IPOs, Capital Raises and M&A Currently working with New York based investment fund, where he provides strategic funding solutions to a variety of international clients. He previously held the role of associate director at a Perth based boutique corporate advisory firm focused on natural resources.

Ben Donovan – NED/ Company Secretary

Ben Donovan has over 21 years of experience in the provision of corporate advisory and company secretary services. He holds extensive experience in ASX listing rules compliance and corporate governance, and has served as a Senior Adviser to the ASX for nearly 3 years Currently CoSec to several ASX listed resource companies including M3 Mining (ASX:M3M), Magnetic Resources (ASX:MAU) and Legacy Iron Ore (ASX:LCY).

Odile Maufrais – Exploration Manager

Odile Maufrais is an exploration geologist with over 13 years of experience and has an extensive understanding of the uranium exploration and mining industry, having worked at ORANO, one of the largest global uranium producers for 12 years on various assignments in Canada, Niger, and France. Maufrais has significant Athabasca Basin specific experience, being involved on over 15 greenfield and brownfield uranium exploration projects located throughout the Basin. Her most recent roles for ORANO comprised leading various uranium exploration campaigns and being an active member of the ORANO research and development team, which involved working on trialing and implementing cost effective and streamlined drilling techniques within the Athabasca Basin. She also played a key role in the update of the National Instrument 43-101 compliant mineral resource estimate for the Midwest Main and Midwest A deposits. Mrs. Maufrais holds a Master of Science from Montpellier II University, France.