Lake Maitland Uranium Project Scoping Study

Toro Energy Ltd (Toro or the Company) is pleased to advise that it is well advanced in its evaluation of a costs estimate for a stand-alone Lake Maitland uranium-vanadium mining and processing operation. Toro’s research and development studies over many years have successfully identified and evaluated the opportunity to substantially reduce the size and cost of its processing facility at the Wiluna Uranium Project through a redesign of the proposed plant and processing flowsheet.

HIGHLIGHTS

• Further to the substantial increase in total U3O8 production resulting from the recently completed Lake Maitland pit re-optimisation, Toro is pleased to advise that it is well advanced in its evaluation of a capital costs estimate for a stand-alone Lake Maitland uranium-vanadium mining and processing operation.
• The capital expenditure for a Lake Maitland operation is expected to be finalised in the short term and released ahead of the revised operating costs estimate.
• Toro’s research and development activities over many years successfully identified and evaluated the opportunity to substantially reduce the size and cost of its processing facility at the Wiluna Uranium Project, by a redesign of the proposed plant and processing flowsheet that includes an initial beneficiation step.
• Beneficiation and process design studies for the Lake Maitland deposit in particular resulted in a potential large capital cost reduction for the hydrometallurgical processing plant to A$87.9M from A$134.1M in Toro’s prior study for the Wiluna Uranium Project.
• As a result of the redesigned process, vanadium can be successfully produced as a by- product of the leaching and treatment of Lake Maitland uranium ore, at a small marginal cost including only an additional A$5.7M in capex.
• Total processing infrastructure capex for Lake Maitland of A$93.7M (inclusive of vanadium production) is expected to be adjusted primarily for inflation.
• Fundamentals for uranium are optimal with the global decarbonisation thematic, rising fuel prices and energy security positively impacting on potential demand for nuclear energy, the key driver of the uranium industry.
• Japan’s Prime Minister recently announced it will commence planning for nuclear plant re-starts and the development of next generation reactors.
• Reputable Japanese entities JAURD (the Japan Australia Uranium Resources Development Co. Ltd.) and ITOCHU Corporation (ITOCHU) have the right to earn a combined 35% interest in the Lake Maitland Project upon paying US$39.66M and contributing their proportionate share of expenditure thereafter, in the event a positive final investment decision for Lake Maitland has been made based on a definitive feasibility study.

This redesigned flowsheet has the potential to significantly enhance the technical and financial feasibility of the Wiluna Uranium Project, especially at Lake Maitland.

Scoping Study for Lake Maitland

The Lake Maitland Scoping Study will include a complete engineering build and operational assessment from mining of the Lake Maitland resource through beneficiation, processing and treatment, to production of a ready to transport product for both uranium and vanadium. All stages of the operation will be costed by engineers to current prices, including all non-process related activities, in order to ascertain the current capital and operating cost of mining and processing Lake Maitland as a stand-alone uranium-vanadium operation.

The engineering will incorporate all of the changes and improvements to the processing and treatment of the potential ore from the Lake Maitland uranium deposit that have been proven possible by the research and development undertaken by Toro in recent years, as announced to the market. This includes research demonstrating that vanadium could be successfully produced, at a small marginal cost, as a by-product of the leaching and treatment of the potential Lake Maitland uranium ore.

As previously advised, the date for the substantial commencement condition contained in the State environmental approval for the Wiluna Uranium Project, granted pursuant to Ministerial Statement 1051 (MS 1051), has passed. Toro considers, and has sought advice to confirm, that the environmental approval granted by MS 1051 will remain valid notwithstanding that substantial commencement did not occur by the date specified in MS 1051, and that it will be open to the Company to apply under the Environmental Protection Act 1986 (WA) for an extension of time for that condition at a later time during the life of the approval. It is also envisaged that favourable results from Toro’s studies may also necessitate an amendment to the proposal the subject of each environmental approval received.

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