enCore Energy Corp. (EU)

A. Company Overview

enCore Energy Corp., identified as "America’s Clean Energy Company™," is a publicly traded mining company dedicated to the extraction of uranium within the United States, emphasizing environmentally responsible operations through in-situ recovery (ISR) technology. The company was initially incorporated on October 30, 2009, under the Business Corporations Act of British Columbia and has undergone several name changes since inception, ultimately adopting the name "enCore Energy Corp." on August 15, 2014. As of January 1, 2025, enCore Energy has transitioned from a "foreign private issuer" to a "domestic issuer," indicating its increased reporting obligations under the Exchange Act.

With a focus on domestic uranium mining, enCore operates several projects primarily located in energy-centric regions of Texas, South Dakota, Wyoming, and New Mexico. The company's stock is listed on The Nasdaq Capital Market and the TSX Venture Exchange, trading under the ticker symbol EU.

B. Business Model and Strategy

enCore Energy operates under a strategic vision to become a leading supplier of domestic uranium to meet the rising demand for clean energy through nuclear power. The company's approach is characterized by a commitment to sustainable and responsible mining practices, leveraging innovative ISR technology. This method is deemed environmentally friendly, minimally invasive, and economically viable for extracting uranium from lower-grade deposits.

The strategic development of extraction capacity is primarily concentrated in South Texas, bolstered by the successful commencement of operations at the Rosita Central Processing Plant (CPP) and the Alta Mesa CPP. This dual operational capacity uniquely positions enCore as one of the few companies worldwide to operate multiple uranium extraction facilities simultaneously.

The company's operational strategy encompasses the following key components:

1. Uranium Extraction Growth: Expanding extraction capabilities at existing facilities and exploring additional properties in South Dakota and Wyoming.
2. Sustainable Execution: Committing to cost-effective and environmentally responsible mining practices, particularly through the innovative use of ISR technology which utilizes benign lixiviants for uranium extraction.
3. Market Responsiveness: Enhancing adaptability to market conditions through strategic expansions, including mergers and acquisitions, and the divestment of non-core assets.

C. Properties Overview

enCore Energy’s mineral holdings encompass several significant uranium projects:

1. South Texas Integrated ISR Project: This project includes the Rosita CPP and various satellite facilities across South Texas. The Rosita CPP was historically constructed in 1990, with a production capacity of 800,000 pounds of U3O8 per year. Operations resumed in 2023, with plans for continued expansion and extraction.
2. Alta Mesa Uranium Project: Located in the Brooks County area of Texas, the Alta Mesa project is a fully licensed ISR production facility, boasting a capacity to produce approximately 1.5 million pounds of U3O8 per year. Historically, it has produced 4.6 million pounds between 2005 and 2013. A joint venture with Boss Energy Limited was established in 2024, with enCore retaining a 70% stake.
3. Mesteña Grande Uranium Project: Adjacent to the Alta Mesa Project, this project spans approximately 194,119 acres, with uranium potential targeted for extraction at the Alta Mesa facility.
4. Dewey Burdock Project: Situated in South Dakota, this property is critical in defining enCore’s footprint in the northern uranium sector. It comprises approximately 16,962 acres of net mineral rights and is currently in the approval process for necessary permits.
5. Gas Hills Project: Located in Wyoming, it encompasses 12,960 net mineral acres and has a historical context in uranium production. The project's development is intended to leverage ISR methods in its operations.

D. Mineral Resources

As of December 31, 2025, enCore Energy reports an extensive inventory of mineral resources classified under S-K 1300 standards, but it is essential to note that these resources do not equate to established mineral reserves—thus the development prospects remain under exploration classification until further evaluation can confirm proven or probable reserves.

The mineral resources include varying estimates across different properties:

• South Texas Integrated ISR Project: Includes multiple project areas with substantial quantities of uranium.
• Alta Mesa Project: Contains significant resources but no known mineral reserves.
• Dewey Burdock Project: Covers an extensive area with historical mineral presence that is yet to be validated for economic extraction.
• Gas Hills Project: Historical production and widespread exploration have characterized this area as having potential uranium resources.

The company’s mineral resource assessments employ conservative estimates based on historical data, cutting-edge geological modeling, and comprehensive exploration programs.

E. Environmental Regulations and Sustainability

enCore Energy's operations are strictly governed by an array of environmental regulations at federal, state, and local levels. These include compliance with the Clean Water Act, and other environmental management mandates related to air and water quality, waste disposal, wildlife protection, and safety standards. The company has committed to maintaining stringent compliance to minimize environmental impact and ensure the restoration of mining sites post-extraction.

Central to enCore’s strategy is the objective of sustainable practices, wherein water usage is meticulously monitored, and recycling procedures for water used during uranium recovery are implemented. The ISR method supports such sustainability as it allows for significant reuse of resources, further reinforcing the company's commitment to environmentally friendly operations.

F. Geopolitical Context

The geopolitical landscape has affected the uranium market, particularly following the Russian invasion of Ukraine. With heightened scrutiny on international supply chains, particularly regarding imported uranium, enCore Energy’s focus on domestic production is strategically timed. Legislative measures, such as the Prohibiting Russian Uranium Imports Act, enhance the relevance of enCore's domestic supply capabilities, paving the way for an uptick in demand for locally sourced uranium.