Plateau Uranium Inks LOI for Initial Uranium Offtake from Macusani Project

Plateau Uranium Inc. ("Plateau Uranium" or the "Company") is pleased to announce the signing of a non- exclusive, non-binding, Letter of Intent (LOI) with a European-based commodity trading company representing the first potential sale of a portion of future production from the Company's Macusani Plateau Uranium Project in southeastern Peru.

Indicative Terms

• Deliveries of 2 million pounds U₃O₈ over initial 5 years of production, with potential for increased annual volumes and a 2-year extension option
   
• Average pricing above US$42/lb U₃O₈
   
• Hybrid contract model under discussion with a mix of fixed and market-related pricing
   
• Market-related portion includes floor prices well above estimated operating costs, and current spot market forecasts as well as attractive ceiling prices in line, or above present future forecasts that both increase with time.
   
• Plateau Uranium and Curzon have agreed to work towards negotiating a possible uranium offtake agreement over the next 12 months as the Macusani project develops.

Ted O'Connor, CEO of Plateau Uranium, commented: "We are extremely pleased to have entered into this LOI with Curzon as another step to ensuring the economic success of the Macusani project. We have projected cash costs for uranium only, excluding any lithium co-production value, of US$17.28 per pound U₃O₈ produced. At US$40 uranium price, our uranium project has excellent potential economic returns with a post-tax NPV₈ of US$360 million and an IRR of 29.2% with a payback period of 2.5 years. The uranium prices under discussion average higher than this, which is extremely positive for the future development of the project."

LOI Details

The LOI with Curzon Resources ("Curzon", formerly Interalloys Trading Ltd.) contemplates the sale of up to two million pounds of uranium concentrates (U₃O₈) over a five-year period (400,000 pounds, annually) beginning in the first year of commercial production from the Macusani Project, presently contemplated for startup in late 2020. Optional provisions for increased annual volumes and a mutually agreeable extension for an additional two years with similar annual volumes at higher prices are also contemplated.

The average price contemplated over the period within the LOI is above US$42 per pound compared with the current spot price of around US$23 per pound. A combination of fixed and market-related hybrid pricing with attractive floors and ceilings is under discussion in order to secure positive margins in the early years of production. The proposed volumes considered represent less than 7% of proposed uranium production rates from the Macusani Project, ensuring Plateau Uranium maintains exposure to higher future uranium price increases.

The parties have agreed to negotiate a future uranium offtake agreement over the next twelve months. The LOI agreement is non-exclusive whereby, Plateau Uranium is free to pursue other offtake agreements, however, Curzon has been granted a right of first refusal to match any additional offtake offers received during this time period.

The terms set out in the LOI are indicative only and not binding on the parties. There can be no assurance that the Company will enter into a legally binding offtake agreement in the future or will do so on terms as those indicated in the LOI.

Qualified Persons

Mr. Ted O'Connor, P.Geo., CEO and a Director of Plateau Uranium and a qualified person as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects, has reviewed and approved the scientific and technical information contained in this news release.