Purepoint Uranium Group Inc. Closes Its Fully Subscribed Private Placement for Gross Proceeds of C$3.5 Million

Overview

Often regarded as the of the world, the Athabasca Basin in Saskatchewan presents exceptional discovery and exploration opportunities for companies looking to enter the thriving uranium market.

According to leading strategists, uranium is still one of the best-performing commodities in the resource industry, despite a year of disruptions from COVID-19. With new reactors continually coming online to meet demand and a limited number of suppliers to fill it, looking to high-valued mining jurisdictions for uranium is one of the best strategies for companies trying to get ahead of the crowd.

Purepoint Uranium Group (TSXV:PTU,OTCQB:PTUUF) has been a major player in the Athabasca Basin for some time now, actively acquiring and operating an exploration pipeline of 12 advanced projects including its flagship Hook Lake project and Red Willow, Smart Lake, Turnor Lake, Henday Lake, Umfreville and the Tabbernor Block projects.

Purepoint Uranium’s flagship project, Hook Lake, is a joint venture with two of the largest uranium mining majors in the world, Cameco Corporation and Orano Canada. Purepoint Uranium holds a 21 percent ownership of Hook Lake and acts as the operator of the joint venture.

The company has another high-value joint venture with its partner Cameco Corporation in its Smart Lake project where Purepoint Uranium, as operator, holds a 27 percent ownership.

Outside its joint venture projects with the world’s largest uranium suppliers, Purepoint holds another 10 projects in the eastern Athabasca Basin, all of which are 100% owned with clearly defined uranium bearing targets that have been safely maintained in order to maximize their value in anticipation of the current uranium price revival.

As we now enter the beginning of an exciting bull rally in uranium, Purepoint is emerging as the pre-eminent uranium explorer in the world’s richest uranium district. The company is fully funded and with an aggressive exploration program currently underway.

With a strategic financial positioning and a market capitalization of approximatelyC$50 million, Purepoint’s strong capital poise the company for exceptional and deliberated positioning for uranium’s revival.

Purepoint’s leadership team is comprised of an independent, highly qualified group of experts with deep provincial and regulatory ties, as well as decades of experience in the Athabasca Basin. Together, their expertise in mining, finance and exploration prime the company for exceptional growth and uranium discovery potential.

Company Highlights

• Purepoint has the most advanced exploration portfolio of uranium projects in the Athabasca Basin, the world’s richest uranium region
• Two high-value partnerships with Cameco Corporation and Orano Canada Inc. Together, they have joint ventures on the Hook Lake project and Smart Lake project.
• The company also operates a pipeline of ten, 100-percent owned, highly prospective uranium projects in Eastern Athabasca Basin, including the Red Willow, Turnor Lake, Henday Lake, Umfreville Lake and the Tabbernor Block properties.
• A fully funded aggressive exploration program is currently underway
• The company has a world-class leadership and management team with unparalleled experience in uranium mining and exploration expertise.

Key Projects

Hook Lake Project

The Hook Lake property is located within the Patterson Uranium district and consists of nine claims totalling 28,598 hectares. The project is jointly owned by Cameco, Orano Canada and Purepoint Uranium. Operated by Purepoint since 2007, the project has seen significant discoveries and exploration campaigns.

A highlighted discovery on the property includes the Spitfire high-grade discovery which revealed 53.3 percent uranium oxides over 1.3 meters, including a 10-meter interval of 10.3 percent uranium mineralization measurements. Currently, three prospective structural “corridors” have been defined on the property, each of which consists of multiple EM conductors confirmed by drilling.

The 2021 program on the property saw a total of 2,556 meters of drilling and positive measurements that still require pending geochemical and assaying results for final interpretation.

Smart Lake Project

The Smart Lake property includes two claims across 9,860 hectares situated in the southwestern portion of the Athabasca Basin, approximately 60 kilometers south of the former Cluff Lake mine. As the project’s operator, Purepoint holds 27 percent ownership of Smart Lake in a joint venture with Cameco Corporation.

Aeromagnetic and electromagnetic patterns at Smart Lake reflect an extension of the patterns underlying the Shea Creek deposits. Uranium grades have revealed grades upwards of 58.3 percent uranium over 3.5 meters near the north point of the property. Exploration by Purepoint and Cameco has firmly established the presence of uranium mineralization, hydrothermal alteration and the location of several basement electromagnetic conductors, which have yet to be drilled.

Purepoint remains excited to continue exploring this element-rich property and tap into underexplored targets across Smart Lake.

Red Willow Project

The 100-percent owned Red Willow property consists of 17 mineral claims across a total area of 40,116 hectares on the eastern edge of the Athabasca Basin in Northern Saskatchewan. The property is located close to several uranium deposits including Orano Resources Canada Inc.’s JEB mine, approximately 10 kilometers to the southwest and Cameco’s Eagle Point mine that is approximately ten kilometers due south. Red Willow could see similar mining feats as these established assets.

Geophysical surveys conducted by Purepoint at Red Willow have included airborne magnetic and electromagnetic (VTEM) surveys, an airborne radiometric survey, ground gradient array IP, pole-dipole array IP, fixed-loop and moving-loop transient electromagnetics and gravity. A total of twenty-one conductive zones have been identified as priority exploration targets, which Purepoint remains excited to explore.

The 2021 Red Willow drill program returned uranium values (0.012% U3O8 over 5.5 metres and an additional 0.06% U3O8 over 0.4 metres from drill hole GEN21-05) and will be followed up in 2022.

Turnor Lake Project

The Turnor Lake project is a 100-percent owned asset that consists of four claims totalling 9,705 hectares on the eastern side of Canada’s Athabasca Basin. The property includes four defined exploration areas: the Serin Conductor, the Laysan zone, the Turnor Lake zone and the Turaco zone.

The Serein Conductor lies within the La Rocque corridor and hosts several major prospects including Cameco Corp’s La Rocque showing and IsoEnergy Ltd.’s Hurricane zone, which reported results of 38.8 percent uranium over 7.5 meters. Purepoint has already conducted extensive geophysical programs to outline approximately 34 kilometers of conductors throughout the Turnor Lake project. The company intends to continue to explore this asset through technological modelling, targeting and geochemical discovery.

Management Team

Chris Frostad – BBA, CA, CPA, President & CEO

Chris Frostad is a founding partner bringing over 40 years of expertise to his position as president and CEO. He led Public Companies in both the technology and mining & metals industries.

Throughout his career, Frostad has been instrumental in the development and building of a variety of high growth, early-stage, public and private companies.

Before Purepoint, he held numerous senior positions in the technology industry including CEO in Residence of a Toronto-based Venture Capital firm. Frostad is a Chartered Accountant and a Chartered Professional Accountant who began his career in International Taxation with Deloitte.

Scott Frostad – BSc, MASc, P.Geo, VP of Exploration

Scott Frostad’s experience in the mining industry throughout Canada spans over three decades. He brings to his position as VP of Exploration a background in mineral exploration with renowned mining companies such as Lac Minerals, Teck and Placer Dome. Most recently, he was the environmental specialist for Cogema Resources Inc. and managed environmental issues at both the Cluff Lake and McClean Lake Uranium Mines in Northern Saskatchewan.

Frostad is a graduate of the University of Western Ontario with a B.Sc. in Geology and holds an M.A.Sc. in Mining and Mineral Process Engineering from the University of British Columbia. He is a Member of the Association of Professional Engineers and Geoscientists of British Columbia and the Association of Professional Engineers and Geoscientists of Saskatchewan.

Ram Ramachandran – BA, CA, CPA, CFO

Before his position as CFO with Purepoint, Ram Ramachandran brings an 11-year tenure as deputy director and associate chief accountant with the Ontario Securities Commission. Most recently, Ramachandran provided advisory services in the area of litigation/compliance to numerous companies. To his credit, Ramachandran conceived, developed and launched the Canadian Securities Reporting Advisor – an online compliance tool for public companies.

Linda Tong – B.Sc., GIS Specialist

Linda Tong has been Purepoint Uranium’s GIS Specialist since January 2006. She has over 20 years of experience in GIS application, GIS development and computer programming.

Tong is a graduate of Wuhan University with a B.Sc. in Computer Science & Application.

Jeanny So – Corporate Communications

Jeanny So has over 20 years of experience in operations, investor relations, sales & marketing in the financial industry and has executed corporate communication programs for several private and publicly-listed companies.