Secures Denison as JV Partner in Transformative Deal

• Skyharbour Resources (‘SYH”) has brought in Denison Mines (TSX: DML) as a joint venture partner to advance the Russell Lake uranium project in the Athabasca Basin, Saskatchewan.  Russell Lake sits between SYH’s Moore project and Denison’s Wheeler River, making it a strategic asset for Denison.
• The deal provides up to $61.5M from Denison ($21.5M cash/shares + $40M exploration) to earn 20%-70% interest across multiple claims over seven years.  Assuming an average interest of 48% across the claims, the transaction implies a value for the entire project of $128M, considerably higher than our June 2025 valuation of $88M.
• SYH optioned the project from Rio Tinto (LSE: RIO) in 2022, and recently increased its ownership to 100% by acquiring Rio’s remaining minority stake for $10M. The claims will be managed under four joint ventures: Russell Lake (RL), Getty East, Wheeler North, and Wheeler River Inlier.

• We view this partnership as a major positive for SYH: it brings in a top-tier operator, validates the project’s potential, and allows SYH to remain operator at RL and Getty East, while Denison leads Wheeler North and Wheeler Inliers. Both geological teams will collaborate. Exploration and drilling programs are planned next year at Wheeler North, Getty East, and RL.
• SYH recently completed ~16,000 m of drilling across the Russell Lake and Moore projects, and is awaiting assay results in the coming months. We believe SYH could complete an NI 43-101 resource estimate for Moore next year.
• Option partners are actively advancing their projects, with ~12,000 m of drilling recently completed. SYH could receive up to $42M in cash and shares if all option agreements are fully executed.
• Uranium prices have remained flat YoY at US$76/lb. The Sprott Physical Uranium Trust (TSX: U-UN), the world’s largest physical uranium fund, has increased its holdings to 74 Mlbs (+12% YoY), signaling strong demand and bullish sentiment. The Trump administration is accelerating U.S. nuclear-sector approvals, while major tech companies are securing long-term nuclear power for AI and data-center growth, contributing to rising uranium demand and renewed investor optimism amid ongoing supply-chain risks, particularly with Russia controlling 35% of global enrichment capacity.
• Upcoming catalysts include improving uranium sentiment, drill results from Russell Lake and Moore, partner-funded exploration, major 2026 drilling by SYH and Denison, and potential new option agreements to advance SYH’s prospect-generator model.

Price and Volume (1-year)

*QP: Serdar Donmez, P.Geo., VP Exploration of Skyharbour Resources Ltd.

* Skyharbour Resources has paid FRC a fee for research coverage and distribution of reports. See last page for other important disclosures, rating, and risk definitions. 

Portfolio Summary

SYH’s Portfolio

  37 properties, covering 616,939 hectares, in the Athabasca basin

The Athabasca basin hosts some of the world’s richest uranium deposits and mines

Assay results from 2025 Moore drilling are pending, with significant additional drilling slated for 2026

JV/Option Agreements

Fourteen projects under JV/ option agreements with 10 partners 

Partners could commit up to $76M for exploration, and $42M in cash/share payments to SYH

Source: Company

Russell Lake Uranium Project

SYH recently struck a strategic agreement with Denison Mines, allowing Denison to acquire 20–70% of the Russell Lake claims for up to $61.5M, including C$21.5M in cash/shares and $40M in exploration over seven years. The project will be managed through four joint ventures: Russell Lake (RL), Getty East, Wheeler North, and Wheeler River Inlier.

Location Map

Russell Lake is strategically located between SYH’s Moore uranium project, and Denison’s Wheeler River project, and close to Cameco’s (TSX: CCO) Key Lake mill, and MacArthur River mines

35+ km of untested targets 

Russel Lake Claims

Source: Company

The 73,314-ha land package is divided into four projects: RL, Getty East, Wheeler North, and Wheeler River Inliers

SYH will continue as operator, holding an 80% interest in the 53,192-ha RL claims

Joint Venture Projects

Source: FRC / Company

SYH will remain operator of the RL claims, covering over 70% of the original Russell project

Exploration and drilling planned at Wheeler North, Getty East, and RL next year

SYH is awaiting assay results from its 2025 drill programs 

Updates on Other Projects 

• At the 914W uranium project, Mustang Energy (CSE: MEC, MCAP: $8M) has delineated a conductive zone consistent with graphitic basement rocks and fault-bound alteration zones, indicating potential for an unconformity type of uranium mineralization.

914W Anomaly Map

Source: Mustang Energy Corp. / Company

At the South Falcon East uranium project, Terra Clean Energy (CSE: TCEC, MCAP: $7M) reported results from its winter 2025 drill program (seven holes, 1,927 m), with four holes intersecting wide uranium zones.

• North Shore Uranium (TSXV: NSU, MCAP: $21M) recently completed a prospecting program at its Falcon uranium project. Assay results are pending. To date, NSU has identified 36 uranium targets.

Falcon Targets and Priority Zones

Source: North Shore Uranium / Company

• At the South Dufferin uranium project, privately owned UraEx Resources Inc. completed a 2,600 m maiden drill program.
• At the Preston uranium project, JV partner Orano Canada completed 6,000 m of drilling to test high-priority targets at 200–350 m depths.

Financials 

Strong balance sheet

Upon completion of the Denison transaction, SYH will have approximately $9.5M in cash

Source: FRC / Company

In-the-money options can bring in $0.35M

FRC Valuation

North American uranium juniors are trading at $8.92/lb (previously $8.07/lb)

Source: FRC / Various / S&P Capital IQ 

North American uranium juniors are trading at 2.9x book value (previously 2.7x)

Source: FRC

Applying sector multiples to SYH’s flagship assets, we arrived at a revised fair value estimate of $1.12/share (previously $1.01/share) 

We are reiterating our BUY rating, while adjusting our fair value estimate from $1.01 to $1.12/share. We believe the partnership with Denison strengthens SYH’s position in the Athabasca Basin, validates Russell Lake, and provides funding and operational support. Key catalysts include rising positive uranium sentiment, upcoming drill results, and partner-funded exploration.

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

We are maintaining our risk rating of 5 (Highly Speculative)