Urenco and Ubaryon to Form Strategic Partnership

Rhea-AI Summary

Snow Lake Resources (NASDAQ: LITM) announces that Ubaryon Pty Ltd has signed a Term Sheet with Urenco Limited to form a strategic partnership for uranium enrichment technology development. Under the agreement, Urenco will invest A$5.0 million over 3 years for a 13% stake in Ubaryon. Snow Lake holds a 19.9% interest in Global Uranium and Enrichment Limited (GUE), which owns 21.9% of Ubaryon. The partnership marks a significant milestone as Ubaryon's technology has reached Technology Readiness Level (TRL-4), validated by independent technical reviews. Ubaryon's unique uranium enrichment technology eliminates the need for conversion between uranium oxide and gaseous uranium, simplifying the enrichment process and offering greater flexibility in the nuclear fuel supply chain.

Positive

• Strategic partnership with Urenco, a global uranium enrichment leader, provides validation of Ubaryon's technology
• A$5.0 million investment from Urenco over 3 years demonstrates strong commitment
• Technology achieved TRL-4 validation, confirming successful laboratory testing
• Ubaryon's technology eliminates conversion steps, potentially reducing costs and complexity
• Potential for Urenco to increase stake and acquire technology in the future

Negative

• Transaction remains subject to shareholder approval, FIRB approval, and final documentation
• No binding agreement signed yet, creating uncertainty about deal completion
• Technology still at early stage (TRL-4) compared to competitors (e.g., SILEX targeting TRL-6)
• Requires waiver of pre-emptive rights from existing shareholders

Insights

Nuclear Energy Specialist

Urenco's investment validates Ubaryon's early-stage uranium enrichment technology that could streamline the nuclear fuel process if successfully developed.

This partnership between Ubaryon and Urenco represents a significant development in uranium enrichment technology. Ubaryon's technology has achieved Technology Readiness Level 4 (TRL-4), meaning critical components have been validated in laboratory conditions. While this is still relatively early-stage development, the independent verification provides credibility to their approach.

The technology's key innovation is eliminating conversion and deconversion between uranium oxide and uranium hexafluoride (UF₆). This is technically significant because traditional enrichment requires uranium to be converted to gaseous form (UF₆) before enrichment and then converted back afterward. By eliminating these steps, the process could potentially reduce costs, complexity, and waste in the nuclear fuel cycle.

Urenco's A$5 million commitment over 3 years, while modest in nuclear development terms, provides a meaningful validation given Urenco's position as one of the world's leading uranium enrichment companies. Their operational experience across facilities in four countries gives them considerable expertise to evaluate emerging technologies.

The comparison to Global Laser Enrichment's SILEX technology (targeting TRL-6 by mid-2025) provides useful context. Ubaryon's technology is less mature but now has the backing to potentially accelerate development. The chemical separation approach differs from centrifuge or laser technologies, potentially offering a distinct pathway in an industry where technological diversification is valuable for supply security.

Financial Analyst

The Urenco-Ubaryon partnership indirectly benefits Snow Lake through its investment chain, with limited but positive near-term impact.

This Term Sheet represents a positive development for Snow Lake Resources, though its impact is moderated by the indirect ownership structure. Snow Lake holds 19.9% of Global Uranium and Enrichment (GUE), which owns 21.9% of Ubaryon – creating a modest but meaningful exposure to this technology development.

Urenco's investment terms provide several insights: The A$5 million over three years for a 13% stake implies a post-money valuation of approximately A$38.5 million for Ubaryon. This indirectly validates GUE's investment, which remains the largest shareholder. The structure includes potential pathways for Urenco to increase its stake through acquiring existing shares and potentially securing the technology at "fair market value" once further developed.

For Snow Lake shareholders, this creates a potential value catalyst through their GUE holdings, though it's important to recognize several mitigating factors: the non-binding nature of the Term Sheet; required approvals including FIRB and shareholder consent; and the early-stage nature of the technology (TRL-4).

The strategic value likely exceeds the immediate financial impact, as Urenco brings substantial technical expertise and market access that could accelerate commercialization. However, the press release explicitly acknowledges uncertainty about transaction completion, and meaningful commercial revenue would likely be years away given the current technology readiness level.

Winnipeg, Manitoba--(Newsfile Corp. - May 5, 2025) - Snow Lake Resources Ltd., d/b/a Snow Lake Energy (NASDAQ: LITM) ("Snow Lake"), a uranium exploration and development company, advises that Ubaryon Pty Ltd ("Ubaryon") has provided a shareholder update to announce that it has signed a Term Sheet with Urenco Limited ("Urenco") to form a strategic partnership. This is a significant milestone which will materially assist the future commercialization of Ubaryon's uranium enrichment technology.

Highlights

• Ubaryon achieves a major milestone forming a strategic partnership with Urenco to advance its Uranium Enrichment Technology

• Urenco is a global uranium enrichment company with enrichment facilities in Germany, the Netherlands, the UK and the USA

• Ubaryon is a private Australian company which owns 100% of a unique and innovative technology for uranium enrichment

• Urenco to invest A$5.0m to advance the technology over the next 3 years, providing strategic validation of Ubaryon's technology as well as significant resources and expertise to help de-risk steps towards commercialization

• Global Uranium and Enrichment Limited ("GUE") is the largest shareholder in Ubaryon (21.9%) and will remain the largest shareholder post the transaction

• Ubaryon independently assessed at technology readiness level of TRL-4 which highlights the development done to date and the strong platform for this new partnership to build on

• Snow Lake holds a cornerstone 19.9% interest in GUE, which in turn holds a 21.9% interest in Ubaryon

Urenco Strategic Investment

Ubaryon has signed a non-binding Term Sheet with Urenco, a global uranium enrichment company, to form a strategic partnership. The agreement was reached after a comprehensive process involving a targeted group of potential investors and partners, conducted within the controls of the security legislation that Ubaryon's technology is regulated by. Under the terms of the agreement, Urenco will invest a total of A$5.0 million in Ubaryon over the next 3 years for a 13% stake in Ubaryon. The Term Sheet is subject to the usual and reasonable conditions precedent for completion of an investment of this nature including receiving Ubaryon shareholder approval for the transaction, Foreign Investment Review Board approval and execution of binding transaction documentation.

Urenco is an international supplier of enrichment services with sustainability at the core of its business. Operating in the nuclear fuel supply chain for 50 years, Urenco has its head office near London, UK, and enrichment facilities in Germany, the Netherlands, the UK and the USA. Urenco's commitment, coming after detailed due diligence, validates GUE's historical investment in Ubaryon and significantly de-risks the business, thereby enhancing GUE's exposure to midstream nuclear fuel supply chains.

Ubaryon has committed to working exclusively with Urenco to complete the transaction which will also provide Urenco the ability to potentially increase its stake in Ubaryon through acquiring shares from existing shareholders and a potential pathway to secure the Ubaryon technology at a fair market value at some point in the future when the technology has been further advanced.

Ubaryon stated in the shareholder update, that the Ubaryon board has been impressed by the diligent and professional way in which Urenco has engaged in the due diligence process and that it is clear that there are significant synergies between companies. Urenco's deep technical, regulatory, market expertise, resources and strategic position in the nuclear fuel supply chain industry will make them the ideal strategic shareholder for Ubaryon.

Ubaryon's board considers that Urenco's investment will also significantly assist the future commercialization of Ubaryon's technology to the extent that no other strategic investor could.

Ubaryon will request all shareholders (with GUE being the largest shareholder) to provide a waiver of pre-emptive rights to purchase shares to allow the transaction with Urenco to proceed and will also schedule a Ubaryon shareholder meeting to approve the transaction and its terms and conditions.

It should be noted that, as a binding agreement has not yet been signed, there is no certainty that the transaction will complete within a specific timeframe, nor that it will complete at all.

Ubaryon Technology Rapidly Advancing - TRL 4

As a part of the due diligence process, Ubaryon has received two independent technical reviews confirming the technology is currently at Technology Readiness Level ("TRL") assessment level of TRL-4. The TRL index is a globally accepted benchmarking tool for tracking progress in the development of a new technology through the early-stage research (TRL-1) to technologies ready for scaled commercial operations (TRL-9). TRL-4 shows that all critical components were successfully validated in a laboratory environment and supported by experimental results. Combined with the validation provided as a result of Urenco's due diligence, these independent assessments give confidence that Ubaryon's technology has a sound foundation for further development.

As a point of comparison, Global Laser Enrichment¹ ("GLE") which is the vehicle of the SILEX uranium technology (jointly owned by SILEX Systems Limited 51% and Cameco Corporation 49%), is aiming for completing a commercial-scale pilot demonstration to provide TRL-6 of the SILEX technology around mid-2025.

Ubaryon Background

Ubaryon is a private Australian company which is developing and commercializing a unique uranium enrichment technology based on the chemical separation of naturally occurring uranium isotopes.

Ubaryon was established in 2015 after environmental testing identified a process anomaly, after which Ubaryon lodged a patent application over its Ubaryon Enrichment Technology in 2018. Australian Safeguards and Non-Proliferation Office ("ASNO") classified the intellectual property in September 2018. ASNO and Defense Export Controls now regulate all Ubaryon's technical disclosure.

A significant feature of the Ubaryon Enrichment Technology is that it eliminates the need for conversion from uranium oxide or yellowcake (UO₄ or U₃O₈) to gaseous uranium (UF₆) and the need for deconversion from UF₆ to uranium oxide. Removing conversion and deconversion simplifies the enrichment process and allows for additional flexibility in the nuclear fuel cell supply chain.

About Snow Lake Resources Ltd.

Snow Lake Resources Ltd., d/b/a Snow Lake Energy, is a Canadian mineral exploration company listed on (NASDAQ: LITM), with a global portfolio of critical mineral and clean energy projects. The Pine Ridge Uranium project is an exploration stage project located in Wyoming, United States, and the Engo Valley Uranium Project is an exploration stage project located in the Skeleton Coast of Namibia. Snow Lake also holds a portfolio of additional exploration stage critical minerals projects located in Manitoba. 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

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 https://www.silex.com.au/silex-technology/silex-uranium-enrichment-technology/

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/250765

FAQ

What is the value of Urenco's investment in Ubaryon's uranium enrichment technology?

Urenco will invest A$5.0 million over 3 years for a 13% stake in Ubaryon.

What is Snow Lake Resources' (LITM) connection to the Urenco-Ubaryon partnership?

Snow Lake Resources holds a 19.9% interest in Global Uranium and Enrichment Limited (GUE), which owns 21.9% of Ubaryon.

What stage of development is Ubaryon's uranium enrichment technology at?

The technology has achieved Technology Readiness Level 4 (TRL-4), meaning critical components have been successfully validated in a laboratory environment.

What are the key advantages of Ubaryon's uranium enrichment technology?

The technology eliminates the need for conversion between uranium oxide and gaseous uranium (UF6), simplifying the enrichment process and providing more flexibility in the nuclear fuel supply chain.

What approvals are needed for the Urenco-Ubaryon partnership to proceed?

The deal requires Ubaryon shareholder approval, Foreign Investment Review Board approval, and execution of binding transaction documentation.