enCore Energy (EU) Status Update summary

Leadership transition and organizational update

• Recent CEO termination was a unanimous board decision after careful consideration, with no disruption to daily operations or production initiatives.

• Acting CEO Rob Willette is leading while a global executive search is underway, expected to conclude in 3-4 months.

• The team reports high morale and a strong sense of urgency to advance operational goals.

Operational performance and production strategy

• Alta Mesa's uranium recovery is significantly faster than industry norms, with 80% of saleable product recovered in the first four months.

• Production focus is on maximizing drilling efficiency and increasing the number of rigs, aiming for 30 rigs with at least two-thirds at Alta Mesa.

• Experienced staff from other projects are temporarily supporting Alta Mesa, and new technical hires are strengthening the team.

• The company is not pursuing ownership of drilling rigs, preferring to use competitive third-party contractors for efficiency.

Financial and contracting outlook

• Production costs are reasonable, and the company aims to fulfill all 2025 contract deliveries from internal production, avoiding market purchases.

• Contract book is published on a five-year rolling basis, with 2025 and 2026 fully contracted and future contracts likely starting from 2029.

• Contracts are primarily with U.S. utilities, featuring inflation-adjusted floors and ceilings, and the company targets 50% of production for long-term contracts.

• Recent asset sale in New Mexico aligns with a strategy to focus on core production and strengthen the balance sheet, with plans to share value with shareholders.

• Cash position is tight, and management is evaluating multiple financing options, with equity as a last resort.