Launches Largest-Ever Annual Drill Program Amid Bullish Uranium Backdrop

Report Highlights

• SYH has commenced its  largest-ever annual drill campaign, with fully funded, multi-phase programs underway at its two flagship projects: Russell Lake and Moore. The campaign includes 35 to 45 holes totaling 16,000 to 18,000 m.
• At Russell Lake, the company is currently pursuing a phase one program (5,000 m/10-12 holes), which is part of a larger 10,000 to 11,000 m campaign to build on recent promising exploration results.
• At Moore Lake, eight of nine holes in SYH’s 2024 summer drill program intersected mineralization. A step-out hole returned high-grade intercepts at shallow depths - 6.4 m grading 1.50% U₃O₈, including 1.5 m grading 4.74% - expanding the high-grade mineralized zone in the Maverick East area. A follow-up drill program will begin shortly. (Qualified Person: Serdar Donmez, P.Geo., VP of Exploration for SYH)
• Though unconfirmed by management, it is our view that SYH may complete a NI 43-101 resource estimate at Moore next year.
• Option partners are actively advancing their projects through exploration and drill campaigns,  with 15,000 to 16,000 m of drilling planned in addition to the programs at Russell and Moore Lake. SYH could receive up to $34M in cash/share payments if these option agreements are fulfilled.
• Upcoming catalysts include positive uranium junior sentiment, drilling at Russell Lake and Moore, partner exploration programs, and potential new option agreements advancing SYH’s prospect generator business.

Price and Volume (1-year)

Portfolio Summary

36 properties, covering 614,353 hectares, in the Athabasca basin. The Athabasca basin hosts some of the world’s richest uranium deposits and mines

Nine projects with JV/ option agreements. Partners could commit up to $36M for exploration, and $34M in cash/share payments to SYH

Moore Lake Uranium Project (100% interest)

Late last year, SYH completed a nine-hole drill program (totaling 2,759 m), including four at the Main Maverick zone, and five at the Maverick East zone. 

Moore is located 15 km east of Denison’s (TSX: DML) Wheeler River project, and 39 km south of Cameco’s (TSX: CCO) McArthur River mine. The 4.7 km long Maverick corridor hosts numerous targets 

Eight of nine holes intersected uranium mineralization, including high-grade, near-surface intercepts such as 6.4 m of 1.50% U₃O₈, with 1.5 m of 4.74% U₃O₈, from a hole located 42 m northeast of the known high-grade footprint at the Maverick East zone. We believe these results highlight the shallow, high-grade nature of the mineralization, and underscore strong potential for follow-up drilling. (Qualified Person: Serdar Donmez, P.Geo., VP of Exploration for Skyharbour)

A step-out hole intersected high-grade mineralization at shallow depths. We believe the company could complete a maiden resource estimate next year

Management is set to launch a 4,500 to 5,000 m follow-up drill program targeting the Main Maverick and Maverick East zones, along with high-priority regional targets.

Russell Lake Uranium Project (SYH 57.7%: Rio Tinto 42.3%)

In February 2025, SYH commenced its 2025 drill program totaling 10,000 to 11,000 m (18-20 holes).

Russell Lake is strategically located between SYH’s Moore uranium project, and Denison’s Wheeler River project, and close to Cameco’s Key Lake mill, and MacArthur River mines. 35+ km of untested targets 

Phase one drilling (5,000 m/ 10-12 holes) will focus on the Fork and Sphinx targets within the Grayling zone, the M-Zone Extension (MZE), and the Fox Lake zone

Last fall, SYH completed an eight-hole (4,500 m) drill program focused on expanding a high-grade zone at the Fork target and testing regional targets. One of five holes at Fork intersected high-grade mineralization, including 2.5 m grading 0.72% U₃O₈ from 338 m depth, with a higher-grade interval of 0.5 m at 2.99%. We believe this intercept marked a new discovery at the Fork target, an area with limited historical exploration. (Qualified Person: Serdar Donmez, P.Geo., VP of Exploration for Skyharbour)

Management is awaiting assay results from the 2024 fall drill program. We believe the company could complete a maiden resource estimate next year

Updates on Other Projects 

• At the South Falcon East uranium project, Terra Clean Energy (CSE: TCEC, MCAP: $5M) has completed a seven-hole program totaling 1,927 m. Six holes intersected mineralization. TCEC is preparing to begin its summer program, targeting seven to 10 holes totaling 2,500 m. (Qualified Person: Serdar Donmez, P.Geo., VP of Exploration for Skyharbour)

Follow-up drilling underway

• North Shore Uranium (TSXV: NSU, MCAP: $1M) is gearing up for a summer drill program at its Falcon uranium project, where 36 uranium targets have been identified to date.
• At the Preston uranium project, Orano Canada is undertaking a summer program comprised of 28 holes totaling 6,000 to 7,000 m. This project is strategically located in the southwestern portion of the Athabascan Basin, nearby NexGen’s (TSX: NXE) Arrow Deposit.
• At the 914W uranium project, Mustang Energy (CSE: MEC, MCAP: $14M) has commenced a rock and soil sampling program.

Financials

Strong balance sheet. In-the-money options can bring in $0.62M

FRC Projections and Valuation

North American uranium juniors are trading at $8.07/lb (previously $8.12/lb North American uranium juniors are trading at 2.4x book value (previously 2.5x)

Applying sector multiples to SYH’s flagship assets, we arrived at a revised fair value estimate of $1.01/share (previously $1.02/share). Our valuation decreased due to lower sector multiples

We are reiterating our BUY rating, while adjusting our fair value estimate from $1.02 to $1.01/share. Uranium sector sentiment is improving, driven by rising prices, strong institutional investment, and commitments from major tech players securing nuclear power for future growth. We believe SYH is well-positioned to capitalize on this momentum with its largest-ever drill campaign and promising exploration results at Russell Lake and Moore.

Risks 

We believe the company is exposed to the following key risks:

• The value of the company is dependent on uranium prices
• Exploration and development 
• None of its flagship projects have a NI 43-101 compliant resource estimate
• Access to capital and share dilution 
• No guarantee that option partners will follow through with their proposed programs