Announcement of Scoping Study Update

Alligator Energy Limited (ASX:$AGE) has released an update to the initial Samphire Project Scoping Study, incorporating increased confidence in the Mineral Resource Estimate for the Blackbush Deposit and a consequent lift in the annualised Production Target from 1Mlbs pa to 1.2Mlbs pa. The updated Scoping Study highlights a 69% increase to the post-tax NPV8 to A$257M, with total uranium mining inventory at Samphire now at 17.5 Mlbs U3O8, and enhanced project economics at a forecast US$75/lb U3O8 realised sales price. The study also outlines low initial capital expenditure forecast, favourable average cash operating costs, and key opportunities to enhance project economics through optimisation studies and resource growth. The Company's CEO, Greg Hall, expressed optimism about the improved forward price assumption and the potential for a robust economic project ready to feed uranium into the growing long-term market later this decade.

Executive Commentary

The Updated Scoping Study outcomes have shown a continued improvement in Samphire Project economics as we increase resource mineralisation quality, increase production rate and refine the processing flowsheet and costs. An improving forward price assumption is also of great benefit. As major capital items were generally sized for a higher throughput in the initial Scoping Study, the relatively small capital increases were offset by reduced resource drilling during project construction, resulting in only a minor capital increase for this Updated Scoping Study. More accurate wellfield design parameters resulted in increased wellfield costs (sustaining capital) and hence an increased AISC. We will re-commence our resource expansion drilling around late January 2024 with a dedicated drill rig all year. Drilling will be initially focussed on Blackbush deposit resource expansion to the least, north and west, which has the greatest impact on future Project economics. This will be followed by a multi-year program of work to evaluate the 30% of palaeochannels which have some mineralised drill intersections, and the ~60% of known palaeochannels that have no drilling.

Summary of Scoping Study Update

The Scoping Study update by Alligator Energy outlines a significant increase in the post-tax NPV8 to A$257M, driven by an increase in the annualised Production Target and improved knowledge base. The study highlights enhanced project economics, low initial capital expenditure forecast, and favourable average cash operating costs. Key opportunities to enhance project economics include a Field Recovery Trial in 2024, further resource growth, and optimisation studies covering logistics and utilities. The Company's CEO expressed confidence in the improved forward price assumption and the potential for a robust economic project ready to feed uranium into the growing long-term market later this decade. However, the Company cautions that uncertainties involved in the project should be considered by investors before making any investment decisions based solely on the results of the Scoping Study.