• Revised Capital Cost C$2.2 Billion /USD$1.58 Billion (C$/US$ 0.72)
• Average Annual After-Tax Net Cash Flow (Years 1-5) of C$1.93 Billion (at US$95/lb U₃O₈)
• Consistent Mine Life and Production Capability up to 30 Million Pounds U₃O₈ Annually
• Elite Environmental Plan Incorporates Reclamation during Operations resulting in minimal C$70 Million Closure Cost.

NexGen Energy Ltd. (TSX: NXE) (NYSE: NXE) (ASX: NXG) announced an update to the initial capital, sustaining, and operating cost estimates for the Company’s 100%-owned Rook I Project. The estimated pre-production capital costs are Canadian Dollar C$2.2 billion / US Dollar $1.58BN, with an average cash operating cost over the life of mine estimated at an industry leading C$13.86/lb (USD$9.98/lb) U₃O₈. Sustaining capital costs were also updated and are estimated at C$785 million (average of ~C$70 million per year), inclusive of closure costs of approximately C$70 million. The change in costs reflects both inflationary changes as well as the significant advancement of engineering and procurement, optimized constructability, and enhanced environmental performance.

Unique to a mining project in the Athabasca Basin is the Project’s incorporation of costs associated with the progressive reclamation of a tailings management facility into the CapEx, OpEx and sustaining capital costs, which totals approximately $900 million of spending over the LOM. The vast majority of Rook I’s mine reclamation will occur concurrently with production through the design incorporating the underground tailings management facility. This will enhance the environmental performance of the operation and reduce the risk of ongoing reclamation, costly decommissioning at the end of the production period, and the post-closure risk to the local environment and communities. As a result of this incorporation of reclamation and the UGTMF at the outset of development, full closure costs are set to be approximately C$70 million at the end of the mine life, materially lower than other uranium mines in Canada, setting a higher standard for environmental performance and the safe disposal of tailings.

Incorporating an average long-term uranium price of approximately USD$95.00/lb U₃O₈ (UxC average Long-Term prices from 2029 to 2040, as published in June 2024), net of transportation fees, the updated cost estimate results in an After-Tax Net Present Value (8% discount rate) of C$6.3 billion, and a payback period of approximately 12 months, as shown in the sensitivity table below. Despite increased costs, at US$95.00/lb U₃O₈, average annual after-tax net cash flow from the Project (years 1-5) remains materially the same as in the FS (as defined below). As shown in the sensitivity table below, average annual Free Cash Flow is now estimated at C$1.93 billion versus C$2.01 billion, demonstrating that the Project is less sensitive to changes in CapEx relative to uranium price.

Sensitivity of Project Economics to Uranium Prices

The sensitivity of the economic model in the FS to the price of uranium is shown below:

Leigh Curyer, Chief Executive Officer, commented: “NexGen’s updated CapEx, OpEx and sustaining capital reflect the Company’s focus on thorough planning and responsible financial management, ensuring that every aspect of the Project aligns for the development of a truly world-class resources project. The updated capital cost presents an all-encompassing spend to bring the Rook I Project into production based on robust, proven mining and construction methodologies, with a payback period of 12 months. Our commitment to developing this Project to the highest environmental standards ensures sustainable and responsible operations from the outset whilst delivering industry leading profitability and local community consultation and engagement. This includes the incorporation of reclamation activities and the significant associated costs during operations, minimizing future closure liabilities which are estimated at C$70 million for the Project, and setting a higher standard for environmental performance in the mining industry.

It is a very exciting time at NexGen as the Company advances the finalization of the Federal Environmental Assessment, readies for immediate commencement of construction on final Federal Approval, and in parallel continue to test the recently discovered Patterson Corridor East mineralization 3.5kms east of the Arrow deposit.”

The Feasibility Study, published March 2021, estimated CapEx at C$1.3 billion and average OpEx over the LOM at C$7.58/lb U₃O₈. The updated CapEx reflects approximately C$310 million in direct and attributable inflationary increases since 2020, and approximately C$590 million in increased CapEx from enhancements identified through advanced engineering and procurement activity since March 2021. The updated OpEx estimate reflects an increase of C$2.65/lb U₃O₈ due to inflationary adjustments and an additional C$3.63/lb U₃O₈ increase due to advanced design developments, advancement of procurement, and operational and ongoing elite environmental enhancements. The mine life and production profile including capability of up to 30 million pounds U₃O₈ annually is consistent with the FS. The updated CapEx utilized a P50 contingency which was also consistent with the FS.

The updated costs reflect the advancement of Project engineering from 18% complete at the time of the Company’s FS, to approximately 45% complete currently, within an accuracy range of +/- 10%. The Project is ready for major construction activities to commence immediately following final Federal Environmental Assessment approval with critical path detailed engineering and procurement advancing in parallel. Further, the Company is advancing well with the significant build out of the project development team that includes industry experts in shaft sinking, underground mining and development, and surface operations.

The Company is progressing discussions with various prospective financing entities – including commercial lenders, export credit agencies, and alternative sources to secure financing for the Project. The Company is receiving interest in significant new sources of potential project financing which would fully satisfy the capital requirements for the Project in combination with its current cash and liquid investments.

The Company is continually refining the current dollar cost estimates as engineering, procurement, and contracting activities advance over the coming months. In addition, NexGen’s internal team is investigating areas of operational improvements, including enhanced recoveries, supplemental energy efficiency initiatives through kinetic heat recovery, and increased automation of material handling and processes throughout the operations.

About NexGen

NexGen Energy is a Canadian company focused on delivering clean energy fuel for the future. The Company’s flagship Rook I Project is being optimally developed into the largest, low-cost producing uranium mine globally, incorporating the most elite standards in environmental and social governance. The Rook I Project is supported by a NI 43-101 compliant Feasibility Study which outlines the elite environmental performance and industry leading economics. NexGen is led by a team of experienced uranium and mining industry professionals with expertise across the entire mining life cycle, including exploration, financing, project engineering and construction, operations, and closure. NexGen is leveraging its proven experience to deliver a Project that leads the entire mining industry socially, technically, and environmentally. The Project and prospective portfolio in northern Saskatchewan will provide generational long-term economic, environmental, and social benefits for Saskatchewan, Canada, and the world.

NexGen is listed on the Toronto Stock Exchange and the New York Stock Exchange under the ticker symbol “NXE,” and on the Australian Securities Exchange under the ticker symbol “NXG,” providing access to global investors to participate in NexGen’s mission of solving three major global challenges in decarbonization, energy security, and access to power. The Company is headquartered in Vancouver, British Columbia, with its primary operations office in Saskatoon, Saskatchewan.

Technical Disclosure

All technical information in this news release has been reviewed and approved by Kevin Small, NexGen’s Senior Vice President, Engineering and Operations, a qualified person under National Instrument 43-101.

The Feasibility Study referred to herein, entitled “Arrow Deposit, Rook I Project, Saskatchewan, Nl 43-101 Technical Report on Feasibility Study dated March 10, 2021”, has been filed on SEDAR+ (www.sedarplus.ca) and EDGAR (www.sec.gov/edgar.shtml), and is available on the Company’s website (www.nexgenenergy.ca).