September 2024 Quarterly Report Ramp-Up Proceeding to Plan as First Production Column Hits Nameplate Capacity

Boss Energy Limited (ASX: BOE; OTCQX: BQSSF) is pleased to report on a strong September 2024 quarter, during which the Company continued to ramp up uranium production at Honeymoon in line with its targets and saw first production at its 30 per cent-owned Alta Mesa Project in South Texas.

Highlights

Honeymoon Uranium Project, South Australia

Operations

• 89,516 lbs of U₃O₈ drummed during the September quarter (June quarter 28,844 lbs)
• NIMCIX production column 1 achieved nameplate uranium production; NIMCIX 2 now operational
• Construction of NIMCIX 3 proceeding to plan and on target for commissioning in December quarter, 2024
• Achieved major milestone of first shipment of 57,000 lbs U₃0₈; The U₃0₈ met all converter quality metrics
• Receipts of $23.4M from sale of 200,000 lbs U₃0₈ as part of an existing sales contract
• Preliminary update on costs to be provided once NIMCIX 3 is commissioned
• Honeymoon is on track to meet production guidance of 850,000 lbs of U₃0₈ in FY25

Alta Mesa Uranium Operation, South Texas (Boss 30%)

• Official opening on 3 October 2024, featuring George W. Bush, the 43rd President of the US
• Alta Mesa continues to dry, package and ship uranium yellowcake (U₃0₈)
• Alta Mesa expected to reach full operational capacity of 1.5M lbs of U₃0₈ a year by 2026. Boss’ share of Alta Mesa production is 30 per cent (450,000 lbs U₃0₈ a year at nameplate capacity)

Corporate

• As at 30 September 2024, Boss held liquid assets of A$244.9M; Boss has no debt
• Well-positioned to benefit from rising uranium prices with most of Honeymoon Life of Mine production and all of Alta Mesa production uncontracted
• Boss continues to strengthen its senior management team in line with the Company’s growing status as a global uranium producer with the appointment of experienced COO Matt Dusci

Boss Managing Director Duncan Craib said: “Our strategy is proceeding to plan on all fronts. Honeymoon’s key metrics are all in line with our targets and we are on track to meet our FY25 production guidance.

“The first production column hit nameplate capacity, the second column is now operational and the third is under construction.

“We made our first shipment from Honeymoon and we are generating cashflow from sales. As a result, we are in an extremely strong financial position with liquid assets of A$245M and no debt.

“The recent start of production at Alta Mesa will also help drive ongoing growth in our production and cashflow as the project ramps up.

“The combination of this increasing production profile and the fact that most of it is uncontracted means we are ideally placed to capitalise on the strong outlook for uranium prices.

“The supply-demand fundamentals in the uranium market are increasingly favourable and long-term contract prices are rising.

“The growing demand for clean energy, particularly stemming from the rapidly expanding AI industry, further strengthens the outlook for uranium and supports our strategic decision to commit to contracts in a gradual manner, maximising our ability to capitalise on rising prices while maintaining financial security”.

Strong Balance Sheet

As at 30 September 2024, Boss has no debt and $244.9M of liquid assets (being cash, liquid investments and physical uranium). The uranium inventory was valued at A$145.4M, including 200,000lbs uranium loaned to enCore Energy Corp. ("enCore") (NASDAQ: EU) (TSXV: EU), which is repayable in cash or in kind.

Unrestricted cash and cash equivalents stood at $66.6M (which excludes a fully cash-backed environmental bond of $13.5M) and listed investments (including the Company’s investment in enCore) were valued at $32.9M.

First shipment, sales and cash received

During the quarter, Boss sold 200,000 lbs U₃0₈ to a European nuclear utility under an existing sales contract, receiving cash of AU$23.4M.

Honeymoon also celebrated its milestone first shipment of 57,000 lbs U₃0₈ to the Honeywell Uranium Hexafluoride Processing Facility in Metropolis, Illinois, USA. Feedback from the conversion facility, based on a representative sample, noted clean, quality U308 product, with approval granted for future bulk shipments to the facility.

Executive Appointments

During the quarter, Boss announce the appointment of highly experienced resources executive Mr Matt Dusci as Chief Operating Officer.

Mr Dusci has more than 25 years of experience in all facets of the mining industry, including technical studies, project development, operations, business development, strategy and executive leadership. His experience spans a diverse range of commodities, including battery metals.

For the past 10 years, Mr Dusci has held several executive positions at IGO Limited (ASX: IGO). These include Acting CEO, Chief Operating Officer and Chief Growth Officer. He has played a major role in the growth, development and transformation of IGO.

Mr Craib said: “With the ramp up at Honeymoon proceeding so well, we are advancing our strategy to grow the project’s inventory, production rate and mine life.

“As part of this strategy, we are committed to building a world-class team of highly skilled and experienced people who can help ensure we maximise our huge opportunities.

“We maximise our ability to generate the best possible results, including consistent reliable production and ongoing growth, if we have the best possible team.

“Matt’s knowledge and experience at both a project management level and as a senior resource industry executive will be immensely valuable as we implement our strategy”.

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