Snow Lake Provides Corporate Update

Rhea-AI Summary

Snow Lake Resources (NASDAQ: LITM) provided a corporate update highlighting significant developments in its uranium exploration projects. The company successfully completed a US$6.45 million public offering, securing funding for its 2025 exploration programs. The Phase 1 drill program at Engo Valley has been completed with 20 reverse circulation holes totaling 1,500 meters, with assay results pending. Downhole radiometrics confirmed uranium mineralization in several holes. A Phase 2 drill program is planned for early 2025. The company also completed its initial field season at the Black Lake Uranium Project and will finish its current drilling campaign at the Snow Lake Lithium Project by December 2024.

Positive

• Secured US$6.45 million through public offering
• Completed Phase 1 drill program at Engo Valley with 20 holes
• Confirmed uranium mineralization through downhole radiometrics
• Fully funded for 2025 exploration programs

Negative

• Phase 1 assay results still pending and uncertain
• Phase 2 program dependent on pending Phase 1 results

Insights

Financial Analyst

The completion of a $6.45 million public offering significantly strengthens Snow Lake's financial position, providing full funding for their 2025 uranium exploration programs. This capital injection comes at a important time as uranium prices have reached multi-year highs, driven by growing nuclear energy demand and supply constraints.

The company's strategic pivot from lithium to uranium exploration aligns with market dynamics, particularly the increasing demand from tech giants investing in nuclear power for AI infrastructure. The completion of Phase 1 drilling at Engo Valley and the planned Phase 2 program demonstrates methodical project advancement, though the pending assay results will be critical for determining the economic viability of these assets.

Operating in Namibia and Saskatchewan provides geographical diversification in tier-1 uranium jurisdictions, potentially reducing operational risks. However, with a market cap of just $8.6 million, the company remains a micro-cap player in a capital-intensive sector.

Mining Industry Expert

The technical execution of Snow Lake's exploration program shows promising initial indicators. The completion of 20 reverse circulation holes totaling 1,500 meters in the Phase 1 program, coupled with downhole gamma spectrometer confirmation of uranium mineralization, provides early validation of historical data from the 1970s Gencor drilling.

The company's presence in Namibia, the world's third-largest uranium producer with 11% of global production, positions them in an established uranium mining jurisdiction with existing infrastructure and expertise. The proximity to operating mines like Rossing and Husab provides valuable operational benchmarks.

The systematic approach to exploration, including radon cup surveys and comprehensive downhole radiometrics, reflects industry best practices. However, investors should note that the transition from exploration to production requires significant additional capital and typically takes several years, even with positive exploration results.

Energy Market Analyst

The timing of Snow Lake's uranium focus is strategically aligned with macro trends in the nuclear energy sector. The projected 50% growth in global electricity demand by 2040, driven by data centers and AI infrastructure, creates a compelling demand narrative for uranium. Amazon's recent $500 million investment in nuclear energy exemplifies the tech sector's growing commitment to nuclear power.

The current supply-demand dynamics in the uranium market are particularly favorable, with existing production insufficient to meet projected demand over the next decade. This structural deficit suggests potential for sustained higher uranium prices, which could benefit well-positioned exploration companies.

Saskatchewan's position as the second-largest global uranium producer, contributing 15% of world production, provides Snow Lake with exposure to a premium jurisdiction for their Canadian assets. The province's high Fraser Institute ranking further validates the investment environment quality.

Winnipeg, Manitoba--(Newsfile Corp. - December 20, 2024) - Snow Lake Resources Ltd., d/b/a Snow Lake Energy (NASDAQ: LITM) ("Snow Lake"), a uranium exploration company, announces a corporate update regarding its portfolio of clean energy mineral projects.

Highlights

• Public offering of approximately US$6.45 million successfully completed

• Snow Lake fully funded for 2025 exploration programs on its two uranium projects

• Engo Valley Uranium Project Phase 1 drill program now complete

• Engo Valley Phase 2 drill program set to begin in early 2025

• Initial field season completed at Black Lake Uranium Project

• Winter drill campaign at Snow Lake will be completed by the end of December 2024

"We are very pleased with the steady progress made to date with our exploration programs on our Engo Valley and Black Lake uranium projects," commented Frank Wheatley, CEO of Snow Lake. "With a successful public offering behind us, we are now planning our exploration programs for 2025, with our primary focus on our Engo Valley and Black Lake uranium projects."

Engo Valley Phase 1 Drill Program

The Phase 1 drill program at Engo Valley is now complete. The purpose of the Phase 1 program was to twin the historical drill holes completed by Gencor in the 1970's and to begin an in-fill drill program between the historical drill holes. A total of 20 reverse circulation holes were completed for a total of 1,500 meters. Assay results are pending.

A downhole gamma spectrometer probe was inserted in each drill hole, which confirmed both the existence of uranium mineralization and elevated radioactivity in a number of the drill holes. TerraTec Namibia, an independent geophysics consultant that specializes in downhole probing for uranium exploration, completed the downhole radiometrics. Final results from the downhole radiometrics for the Phase 1 drill program are pending.

Engo Valley Phase 2 Drill Program

The Phase 2 drill program is current in the planning stage, pending assay results from Phase 1. The purpose of the Phase 2 program is to continue infill between the historical drill holes, as well as to test a number of targets identified by the radon cup survey completed earlier in 2024.

Downhole radiometrics will also be conducted on each drill hole. Subject to timely receipt of assay results from Phase 1, it is intended to begin the Phase 2 drill program in the early part of the first quarter of 2025.

Black Lake Uranium Project

Our initial field season at Black Lake is now complete and, pending results from the field, preparation for the upcoming field season in 2025 is now underway.

Uranium and Nuclear Energy

• Primary Use of Uranium: Uranium is used primarily to produce fuel for nuclear power plants for the generation of electricity

• Why Nuclear Energy: Nuclear energy provides clean, zero-carbon, zero-emissions, reliable base-load, scalable low-cost energy with greater generating capacity per land footprint than other fuel sources

• Electrification & Big Data: Global electricity demand is estimated to grow by approximately 50% by 2040, driven in large part by the growth in big data, including data centers to support artificial intelligence (AI), cloud storage and social media

• Technology Companies & AI: Google, Microsoft and Amazon are among the technology companies turning to and investing in nuclear energy to power their energy intensive AI ambitions, including Amazon's recent $500 million investment¹

• Shortfall of Primary Uranium Supply: Current uranium supply will not meet forecasted uranium demand over the next decade. New sources of primary uranium supply, including new uranium mines, will need to be developed to meet this demand

Namibia

Namibia is currently the world's third-largest producer of uranium, accounting for 11% of global production in 2022² from three currently operating uranium mines: Rossing, Husab and Langer Heinrich. Current uranium mine developments in Namibia include: Deep Yellow Limited (ASX: DYL), progressing the development of its Tumas Uranium Project, with commercial production projected for 2026 and Bannerman Energy Ltd. (ASX: BMN), undertaking early works activities on its Etango Uranium Project as it advances towards a final investment decision.

Saskatchewan, Canada

Saskatchewan was the second-largest global producer of uranium in 2022 and accounted for 15% of the world's primary uranium production³, and was ranked as the 3^rd overall jurisdiction for mining investment according to the Fraser Institute's 2023 annual survey⁴. Saskatchewan also hosts the world's largest, highest grade uranium deposits, and is the source of almost a quarter of the world's uranium supply for electrical generation.⁵

Snow Lake Lithium Project

We will have completed our most recent drilling campaign at the Snow Lake Lithium Project by the end of December 2024. The purpose of the drill program was to improve the confidence in the deposit through in-fill drilling and testing of some of the extensions of the project.

About Snow Lake Resources Ltd.

Snow Lake Resources Ltd., d/b/a Snow Lake Energy, is a Canadian clean energy exploration company listed on (NASDAQ: LITM), with a global portfolio of clean energy mineral projects comprised of two uranium projects and two hard rock lithium projects. The Engo Valley Uranium Project is an exploration stage project located in the Skeleton Coast of Namibia, and the Black Lake Uranium Project is an exploration stage project located in the Athabasca Basin, Saskatchewan and. The Shatford Lake Project is an exploration stage project located adjacent to the Tanco lithium, cesium and tantalum mine in Southern Manitoba, and the Snow Lake Lithium™ Project is an exploration stage project located in the Snow Lake region of Northern Manitoba.

The current focus of Snow Lake is advancing the exploration of its two uranium projects to supply the raw materials needed for the clean energy transition and emissions free power, while exploration activities on its two lithium projects will remain limited until such time as the lithium market recovers from its current depressed levels. Learn more at www.snowlakeenergy.com.

Forward-Looking Statements: This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the "safe harbor" provisions under the Private Securities Litigation Reform Act of 1995 that are subject to substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this press release are forward-looking statements, including without limitation statements with regard to Snow Lake Resources Ltd.. We base these forward-looking statements on our expectations and projections about future events, which we derive from the information currently available to us. Forward-looking statements contained in this press release may be identified by the use of words such as "anticipate," "believe," "contemplate," "could," "estimate," "expect," "intend," "seek," "may," "might," "plan," "potential," "predict," "project," "target," "aim," "should," "will," "would," or the negative of these words or other similar expressions, although not all forward-looking statements contain these words. Forward-looking statements are based on Snow Lake Resources Ltd.'s current expectations and are subject to inherent uncertainties, risks and assumptions that are difficult to predict. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. Some of these risks and uncertainties are described more fully in the section titled "Risk Factors" in our registration statements and annual reports filed with the Securities and Exchange Commission. Forward-looking statements contained in this announcement are made as of this date, and Snow Lake Resources Ltd. undertakes no duty to update such information except as required under applicable law.

Contact and Information Frank Wheatley, CEO +1 (604) 562-1916

Investor Relations Investors: ir@snowlakelithium.com Website: www.snowlakeenergy.com

Follow us on Social Media Twitter: www.twitter.com/SnowLakeEnergy LinkedIn: www.linkedin.com/company/snow-lake-energy

 

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¹ CNBC - October 16, 2024
² Fraser Institute. GlobalData's Global Uranium Mining to 2026 Report.
³ World Nuclear Association (WNA) data.
⁴ Fraser Institute Annual Survey of Mining Companies 2023
⁵ Government of Saskatchewan

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/234683

FAQ

What were the results of Snow Lake's (LITM) Engo Valley Phase 1 drilling program?

The Phase 1 program completed 20 reverse circulation holes totaling 1,500 meters. Downhole gamma spectrometer probing confirmed uranium mineralization and elevated radioactivity in several holes, though final assay results are still pending.

How much did Snow Lake (LITM) raise in its recent public offering?

Snow Lake Resources successfully completed a public offering of approximately US$6.45 million.

When will Snow Lake (LITM) begin its Engo Valley Phase 2 drilling program?

Snow Lake plans to begin the Phase 2 drill program in early 2025, subject to timely receipt of Phase 1 assay results.

What is the status of Snow Lake's (LITM) Black Lake Uranium Project?

The initial field season at Black Lake has been completed, and preparation for the 2025 field season is underway, pending results from the current field work.

When will Snow Lake (LITM) complete its current Snow Lake Lithium Project drilling?

The current drilling campaign at the Snow Lake Lithium Project will be completed by the end of December 2024.