NexGen Energy Ltd.

Thank you for standing by. This is the conference operator. Welcome to the NextGen Energy second quarter of 2025 results conference call. As a reminder, all participants are in listen-only mode, and the conference is being recorded. After the speaker's remarks, there will be a question and answer session at the end. To join the question queue, you may press star, then 1 on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star, then 0. I would now like to turn the conference over to Mr. Lee Currier, Chief Executive Officer and Director with NextGen Energy Limited. Please go ahead, sir.

Thank you, Joseph. Good morning, and thank you for joining NextGen's Q2 2025 Financial Results and Investor Conference School. My name is Lee Currier, and I am Chief Executive Officer. Today, I'm joined by Travis McPherson, Chief Commercial Officer, and Benjamin Salter, Chief Financial Officer. On today's call, I'll discuss our exciting company advancements in pre-experience. Patterson Corridor East results, which strongly validate another significant mineral body is unfolding 3.5 kilometres to the east alongside Arrow. Further, the PCE results clearly suggest a very significant uranium mineralising event has occurred in the southwest region of the Athabasca Basin, Saskatchewan. On a pretty sedentary world scale, and that we are really only at the beginning of defining its true extent. Further, the exciting development of the uranium market over the quarter, including yesterday's announcement of NextGen doubling the volume in our off-tape book, incorporating our key focus of market-related pricing mechanisms, ensuring NextGen Energy deliver industry-leading leverage for future prices, whilst providing utilities with confidence with respect to volumes from work-to-runs technically, environmentally and socially elite operations. All in all, updating the critical role NextGen is set to play in delivering the world's most vital clean energy fuel supply. At the conclusion of this presentation, we'll move to the Q&A portion of the call, where you'll have the opportunity to ask Travis, Ben and myself your questions. Throughout the course of today's call, we will be making forward-looking statements. Please visit our website for all the relevant disclaimers. A few years ago, the idea of nuclear energy power in big tech, winning back global financing support and forming the cornerstone of national energy policy might have seemed optimistic. Today, it's happening. In just the past several weeks, we've witnessed a series of transformational developments that are reshaping global perceptions of nuclear energy. Developments that signal a clear structural shift is occurring today and forecast to extend well beyond 2050. In Q2, corporate buyers, particularly hyperscalers and AI leaders, moved aggressively to secure long-duration, baseload power for their required energy needs. These technology companies have committed over US$100 billion in AI data center construction, including Amazon's $20 billion spend on data centers in Pennsylvania, Metro signed a 20-year power purchase agreement with Constellation Energy to secure 1.1 gigawatts of nuclear-generated electricity, which would power the equivalent of across the one million homes. In addition, Constellation confirmed its nearing long-term nuclear fuel supply deals with other hyperscalers. Google has committed to fund the development of three advanced nuclear projects and TerraPower and Oclog. raised another combined $1.1 billion to develop small modular reactors. The race for energy and, particularly clean, baseload nuclear preferred is on the growth and demand has never been more robust. These are just a few examples of the decade-long commitments to nuclear energy from the most capitalised and data-dependent companies on the planet. According to the International Energy Agency, Now the centre demand for electricity is set to increase by 170% in China, 130% in the US, 80% in Japan and 70% in Europe over the next five years. This equates to an insatiable desire for uranium to fuel large portions of this demand through nuclear energy. The reality is that current mine supply will not keep up with the existing demand and certainly not meet the exponential demand growth. unless there are higher prices. Governments, including right here in Canada under Prime Minister Mark Carney, are also moving with urgency, fast-tracking regulatory frameworks, investing in SM, small modular active development, and emphasising domestic supply chains as a matter of national security. In May, President Trump signed a series of executive orders to accelerate US nuclear power development. aiming to quadruple nuclear capacity from 100 to 400 gigawatts by 2050. Immediate actions include funding 5 gigawatts of upgrades for existing plants, starting construction on 10 new large-scale reactors by 2030, restarting closed or unfinished reactors, fast-tracking permitting via reforms and constructing at least 3 new reactors on by 2026. U.S. Department of Energy will also direct funding to new projects investing in fuel cycle infrastructure, also prioritize U.S. energy security and supply chain independence. This is the most comprehensive nuclear policy ever seen, and it has a profound positive implications for next-gen. Western-based, low-cost, environmentally responsible, employees ready for construction, I'm at the conclusion of this NSC Commission hearing process, commencing one of three sessions only 99 days from now. In Canada, the passage of Bill C-5 enables the Government of Canada to fast-track major projects aligned with national, economic, environmental and Indigenous priorities, and an approach that reinforces the direction next year is taking since its inception. While RIP 1 is already well advanced under the current regulatory framework, The passage of Bill C-5 presents a clear opportunity for the federal government, under Prime Minister Carney and Minister Hodgson's leadership, to demonstrate this new legislation in action, something that is much needed in Canada in order for a country to realise its potential as a natural resources world leader. As approaching that unambiguously meets the criteria of national interest, delivering economic benefit, environmental excellence, and various Indigenous partnerships through legally binding industry-leading benefit agreements. In the first 10 years of forecasted production, ROOC 1 is scheduled to provide $37 billion in economic benefit to Canada. It will support 1,400 direct jobs and be initially licensed beyond 2050. Next stands ROOC 1 project based exemplifies every aspect of the criteria the County Government has defined for projects to be prioritised through Bill C-5 and we look forward to the conclusion of this NSC process to deliver the many stakeholder-led benefits our project exhibits. None of these developments are isolated. They are strategic signals from the private sector, financial institutions and government policy makers alike that nuclear energy is moved from the sidelines to the centre. of the global energy preference. Usually it's not just part of the solution, it is foundational. At the core of this shift is a single truth. The world needs more electricity and it needs to be clean, reliable and affordable. It's not just about the power, it's about energy security, economic prosperity and national competitiveness, all underpinned by the requirements that supply the key ingredient, uranium. All these developments, amidst a lack of supply, lay the groundwork for structurally higher uranium prices in the foreseeable future. The reality is that the industry at large, to some extent, still believes that this can all be solved with higher prices over regional timeframes. However, to meet the exceptional growth in demand we're seeing, you need many new arrow-sized projects to be found, delineated, engineered, permitted, funded and built. Arrow is widely considered the most technically sound and environmentally benign deposit globally, and we are entering into the 12th year since its discovery. Our decision to relaunch Exploration 23 and 3 at Look 1 has paid immediate dividends with our PCE discovery, which will evaluate its significance as drilling and development advances. I'll say more in a moment about PCE. While the global policy environment accelerates, the uranium market is also gaining ground. In Q2, uranium spot prices rose over 20%, closing at $78.50 per pound, largely driven by the re-entry of the spot uranium cuts, following a $200 million raise. It is a powerful reminder that the uranium market is very under-supplied, and that when demand volume returns to the market, prices respond rapidly. Further, yesterday announced the next Further, yesterday, NextGen announced a new off-case agreement with a major US-based utility, which doubles their contract books in volume. Importantly, and distinguishingly from past practices, our pricing on the 10 million pound contract book is all US utilities and is NASA-related at the time of delivery, providing unprecedented leverage to investors in this rising uranium pricing environment. At the same time, given our superior technical setting and environmental design, it provides competent diversification of a new Western world supply. Our contract book represents approximately 3% of our total defined resources and underscores NextGen's patient and strategic approach to building a sales book. We're in advanced discussions with utilities across North America, Europe, the Middle East, Asia and negotiating Negotiations are increasingly urgent, informed and fast-moving. With the finishing hearings set for September 25 and February 23 fixed, NextGen is preparing to transition from advanced development to construction and subsequent operations. Our current cash balance stands at $375 million Canadian. The funding to complete the 2025 site programs and initiate development for the first 12 months of post-approval construction. We maintain full strategic optionality with a strong cash position and active engagement with global debt providers, sovereign funds and utilities amongst others, resulting in financing interest well in excess of the full funding requirements of the bill. As we always have, we will optimise the vast number of financing opportunities available for maintaining our production flexibility and ultimately maximise these the value of each pound of uranium we produce and sell. As PCE during the quarter, NextGen announced our best discovery phase asset today. We drill hole out K25232, returning an incredible 15 metres at 16.9% ULH, including an exceptional peak of 0.5 metres at 68.8%. This is amongst the best exploration intercepts in the world, with Arrow hosting the majority of the other top 10. Since discovery, 45 holes at PPE have intersected mineralisation. Of these, 12 have produced an ultra-high grade massive replacement mineralisation of over 61,000 chance per second. We've been bold with our spacing, in some cases over 200 metres apart, and are still intersecting mineralisation consistently. demonstrating the continuity of mineralisation and the overall strength of the system. Thrilling to date at TCE, confirming stark similarities to the Mighty Arrow deposit just 3.5km away. It's suggesting early signs of another Tier 1 asset. It really does speak to the vast discovery potential of potentially more deposits on the Roof 1 property in the future. We also recently announced the consolidation of our entire land package, including PCE, with the purchase of Rio Tinto's 10% production carry interest. It held on 39 of our claims. NextGen has secured a right of special refusal mechanism over this package after a third party made a bona fide offer to acquire it from Rio. NextGen now holds 100% ownership of all its claims in the district. It speaks to the acceptance by not only NextGen but others of the tremendous value in the South Western Acrobatics Basin portfolio, which dominates the known and prospective trends in the district, a district which is often referred to as the future of your own and mine. In response, we have received regulatory approval to expand our exploration infrastructure, including a temporary airstrip, road for dual-way traffic, and expanded accommodations to support a growing team on site. This program is currently underway and scheduled to be completed in Q1 2026. Our elite standards on responsible development continues to guide every part of the business. In May, we released our fifth annual sustainability report aligned with global reporting initiatives and task force for climate-related financial disclosure standards, highlighting major advancement across environmental, social and governance metrics. Through our growing education and workforce development programs, over 500 participants have engaged in NextGen-led training initiatives these past two years across a wide range of skilled trades. These programs, developed in partnership with regional institutions and Indigenous communities, are designed to build capacity and create meaningful career paths aligned with the project's long-term needs. Indigenous leaders have publicly recognized NextGen's unique and leading collaborative approach with all four of the Indigenous nations in the local project area, striking NextGen as a benchmark for meaningful Indigenous engagement and shared prosperity. I advise to keep an eye out for a video on our website about Chantelle Herman. She is one of a group of Helms and Lotus students who have become members of the NextGen team, pursuing highly technical careers at NextGen while still living in their communities. Shantel is one of these leaders in the community, and Travis and I met back in 2015 at the National School Volleyball Tournament, and went on through our summer student program, followed by a scholarship, and is now a second year geology student at university, whilst working as a field geology technician at Ruth Plum. She is one of many great outcomes from the Ruth Plum project, and is the foundation of delivering even greater generational advancement of the project as it goes into construction and operations. NextGen is well advanced on procurement, with long leave and critical path items already ordered, and in several cases, staged and secured in our warehouse. Its progress reflects NextGen's fully integrated execution stages and proactive supply chain planning, ensuring we are ready to begin major construction immediately upon final regulatory approval. With the 10 materials and partnerships in place, Group 1 is execution ready. At the end of the next phase, our focus is clear. Conclude approvals, finalise funding and begin building the most important new uranium project in a generation in a manner fully consistent with how NextGen has delivered the best results today across every aspect of the organisation. At NextGen, we're advancing with clarity and conviction. We're executed with deep respect for the environment, communities Saskatchewan, Canada, the world and our shareholders. We are energized by the opportunity to lead the future of nuclear. We appreciate your continued support and look forward to delivering further progress in the second half of the year. Thank you and we will now open the call to your questions.

Ladies and gentlemen, we will now begin the question and answer session. To join the question queue, you may press star then one on your telephone keypad. You will hear a tone acknowledging your request. If you are using a speakerphone, please pick up your handset before pressing any keys. Should you wish to decline from the polling process, please press star followed by the number 2.