Purepoint Uranium : Athabasca Basin Exploration Update - January 2022

MONTHLY ATHABASCA BASIN EXPLORATION UPDATE

January 2022

How a less-thansix-month-old fund shook the nuclear fuel market

Source:Bloomberg News

Six months ago, the Sprott Physical Uranium Trust didn't exist. Now it holds almost a third of the world's annual supply - and it's getting bigger. The fund's arrival and explosive growth are sending waves through the market for nuclear fuels and have helped spur a 50% rally in uranium this year. Sprott reports that its assets have swelled to $1.9 billion, forcing the product to almost double its financing limit two weeks ago to $3.5 billion - the second time it's had to raise it in two months.

Behind the surge is a race to bet on a nuclear future, with everyone from hedge funds to day traders jumping on board. The Canadian-listed trust, which launched in July, is the only publicly listed fund in North America that invests in physical uranium. "I don't know how many regular people would know how to even make a uranium play," said Bloomberg Intelli- gence's Eric Balchunas. "It sort of democratizes the trade."

There's growing awareness around the globe that nuclear energy may need to play a larger role as governments move to limit global warming. While uranium's use has drawn opposition from environmentalists, who worry about reactor meltdowns and the hazards from radioactive waste, proponents say the carbon-free electrical power provided by nuclear energy largely outweighs these concerns.

Sprott, betting on nuclear's future, has scooped up roughly 41 million pounds of uranium since the summer, which is roughly 30% of annual production. Traders say the fund is reshaping the uranium market and allowing for more transparent prices. Historically, the uranium spot market lacked daily price discovery, as a large amount of the buyers - electrical utilities - purchased the raw material through long-term purchasing agreements. "The Sprott vehicle allows for price discovery from speculators on a consistent basis. And it's that consistency of having a potential willing buyer of uranium that flushes out what the real price," said Michael Alkin, chief investment officer and founder of Sachem Cove Partners.

When the Sprott trust launched in July, the price of uranium was around $30. Now, the radioactive metal has jumped 50% to $45, according to data from UxC LLC, a leading nuclear fuel market research firm. "They weren't the only buyers during that time, but their activity was the main aspect to the market move," said Jonathan Hinze, president of UxC LLC. Whether Sprott's latest financing limit will be able to push up uranium prices even further remains to be seen. The trust's discount to net asset value is sensitive to uranium prices and steepens when uranium prices fall.

As long as Sprott keeps raising money in capital markets, it will be a persistent buyer of ura- nium, said Hinze. And he said the trust's announcement that it would raise its financing limit to $3.5 billion indicates that there's an appetite for uranium in the financial world.

"Another billion would have been more what we would have expected. Going to $3.5 billion

- over $2 billion more - so quickly, that was a bit of a surprise," he said.

The trust is a closed-end fund. If it were an exchange-traded fund, it would be in the top 5% of Canadian ETFs by asset value, according to BI's Balchunas.

He anticipates a physical uranium fund will eventually launch in the U.S. given how Sprott has grown and how U.S.-listed uranium equity ETFs, like the Global X Uranium ETF (ticker URA) and NorthShore Global Uranium Mining ETF (URNM), have rallied in 2021.

"What's been a big market in terms of asset inflows can be exponentially bigger," Balchunas said.

UxC Consulting Spot Price

(US$)

November 30, 2021	$45.75/lb U3O8
December 31, 2021	$42.00/lb U3O8

Change of -$3.75/lb U3O8

UxC Consulting Long-Term Price

(US$)

November 30, 2021	$41.00/lb U3O8
December 31, 2021	$40.50/lb U3O8

Change of -$0.50/lb U3O8

Key BasinAnnouncements

12-1-2021:Fission commences environmental assessment for PLS project

12-01-2021:IsoEnergy announces initial assay results from Hurricane Expansion

12-02-2021:CanAlaska announces uranium occurences on the Denison Moon Lake South

JV

12-06-2021:Baselode reports high-grade uranium at Ackio

12-07-2021:Standard Uranium outlines 2022

exploration plans

12-08-2021:Azincourt Energy commences road/camp preparation at the East Preston Uranium Project

12-09-2021:UEX announces fall drill progrram rsults from Christie Lake

12-09-2021:CanAlaska identifies uranium targets in Western Athabasca

12-13-2021:Baselode receives drilling permit for its Shadow Uranium Project

12-14-2021:Skyharbour stakes 6 new Atha- basca Basin uranium property

12-15-2021:ALX defines drill targets at Gibbons Creek Uranium Project

12-16-2021:CanAlaska announces West McArthur JV extends urarnium targets in latest drill program

Monthly Athabasca Basin Exploration Update

Month over Month Uranium Stock Performance

(as of December 31, 2021)

Producing, Development & Advanced Exploration Companies

UEX

Fission Uranium

Nexgen Energy

Cameco

Average

-8.88%

Laramide Resources

Denison Mines

Peninsula Energy

-20 .0 0%

-10 .0 0%

0.00 %

10 .0 0%

20 .0 0%

Athabasca Basin Exploration Companies

Fission 3.0

ALX Resources

Azincourt Energy

Skyharbour Resources

PUREPOINT URANIUM

Average

-10.7%

Baselode Energy

IsoEnergy

CanAlaska Uranium

Standard Uranium

Forum Energy

-20 .0 %

-10 .0 %

0.0%

10 .0 %

20 .0 %

January 2022

Monthly Athabasca Basin

Exploration Update

Presented by Purepoint Uranium Group Inc. (TSXV: PTU/OTCQB: PTUUF), the Monthly Athabasca Basin Exploration Update is a monthly newsletter that gathers information on what's happening with uranium exploration companies in the Atha- basca Basin, including its monthly exploration news, stock performances as well as the spot- and long-term uranium prices.

Purepoint Uranium Group Inc.

TSXV: PTU/ OTCQB: PTUUF

Purepoint Uranium Group Inc. is a uranium exploration company focused on precision exploration of its projects in the Athabasca Basin.

Its flagship project is the Hook Lake, a joint venture with two of the largest producers in the world, Cameco Corporation and Orano Canada.

Together with its flagship project, the Company operates 12 projects across approximately 175,000 hectares of claims throughout the Athabasca Basin.

For more information, please visit: www.purepoint.ca.

Be in the Know

Click here to receive the Monthly Athabasca Basin Update via email

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Disclaimer information:

All information provided in this newsletter is based upon sources that Purepoint Uranium Group Inc. (Purepoint Uranium) believes to be reliable. Purepoint Uranium does not guarantee their accuracy or completeness. Any and all statements as of the date of this newsletter are subject to change without notice. All information provided on this newsletter must be understood as information presented for discussion only and not investment advice. Purepoint Uranium advises all readers and subscribers to seek advice from a registered professional securities representative before deciding to trade in stocks featured on this newsletter or any stocks for that matter. All statements and expressions of the companies featured are not meant to be a solicitation or recommendation to buy, sell, or hold securities. Purepoint expressly disclaims any obligation to update or revise any such forward-looking statements.

Copyright ©2022 Purepoint Uranium Group Inc. All rights reserved.

Page 2

Monthly Athabasca Basin Exploration Update

Purepoint primed for uranium's explosive revival

TSXV: PTU

Source: BTV

				January 2022
	Market Cap	Price as of	52-Week	52-Week
		12/31/21	High	Low
	$29.12MM	$0.09	$0.195	$0.06

Chris Frostad, President & CEO of Purepoint Uranium, is anxious to get to work. After a 10-year downcycle in the price of uranium that grinded most mine operations to a halt, he sees the recent spike in the commodity's price as a signal of prosperous times ahead.

It's expected that over 150 new and planned nuclear reactors will come online over the next few years, growing the demand for uranium, and putting new discoveries at a premium. That equates to some exciting opportunities for Purepoint. "We've spent the last five years preparing for this," Frostad declared. "We're probably better positioned than anybody to take full advantage of the upswing. We're ahead of the game in terms of permitting, and we're fully funded to support our plans, so we don't have to start up again from a dead stop. It's time to crank up the volume."

Crank up the volume indeed. Purepoint has done more drilling so far this year than in the last five combined and likely more than any other explorer in Saskatchewan's Athabasca Basin, which is home to the highest-grade uranium deposits in the world and over 20% of the planet's supply.

Purepoint will continue their aggressive push now that uranium prices are again on the rise and capital is easier to come by. It's a strategy that will enable them to take advantage of the one thing that differentiates them from other explorers in the region - a large portfolio of promising high-value projects.

"We have a warehouse of projects that we spent millions of dollars on before the downturn so we could identify their most prospective ar- eas. There are 12 projects in all right across the basin," Frostad confirmed, "most of which are right on trend or adjacent to mines with some of the largest deposits in the world."

With multiple properties in play, Purepoint won't be reliant on a single flagship project to score big. If a particular property shows promise, they can easily reprioritize their plans and allocate resources accordingly.

"We've got more projects. More active projects. More advanced projects, and better partners," Frostad boasted. "The odds of us hitting a discovery are greater than anybody else's."

Purepoint is ready to ride this bull market following a tough stretch for the industry. Ten years ago, a tsunami hit Japan, resulting in the closure of approximately 10% of the world's nuclear reactors, uranium's biggest consumers. It also coincided with an excess supply of uranium that poured out of Kazakhstan, which had just emerged of as a major producer. Together, these events sparked a decade-long downcycle in prices, and suddenly, mining the commodity wasn't economically feasible.

As other uranium mining companies folded, consolidated, or turned their focus to other commodities, Purepoint was able to dig in for the long haul, thanks to a joint venture they had entered into with Cameco Corp. (TSX: CCO) and Orano Canada Inc., two of the largest uranium producers in the world. They needed help operating their Hook Lake project and saw Purepoint as the perfect partner.

"It's been a great project for us because it allowed us to operate during the down market," Frostad recalls. "And the fact that our partners continue to finance much of the exploration there is validation of the Hook Lake's potential."

That potential was made apparent years earlier, when two companies with adjacent properties to Hook Lake, Fission Uranium (TSX: FCU)

and NexGen Energy (TSX: NXE), identified deposits totaling over 350 million pounds of uranium, precisely the kind of projects heavy hitters like Cameco and Orano covet.

Hook Lake will continue to be a key asset for Purepoint now that the market has normalized, and uranium has started its explosive revival. It will provide the company a leg up as the industry launches into what promises to be exciting times.

"All told, the company has a lot to feel good about," Frostad said. "We've probably got the most advanced exploration portfolio in the world's richest uranium region, and we've got the best partners on the planet to ensure that we're the ones that make the next big discovery."

Copyright ©2022 Purepoint Uranium Group Inc. All rights reserved.

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Monthly Athabasca Basin Exploration UpdateJanuary 2022

Fission commences environmental assessment
Market Cap	Price as of	52-Week	52-Week
for PLS project		12/31/21	High	Low
TSX: FCU
$512.94MM	$0.78	$1.25	$0.34
12-01-2021

Fission announced the Saskatchewan Ministry of Environment has formally accepted the recently submitted Project Description for the PLS uranium project in Saskatchewan, Canada . With this acceptance, Fission has now commenced the Environmental Assessment as per the requirements of The Saskatchewan Environmental Assessment Act. Fission has requested approval under Section 15 of the Act and is looking for a determination from the Saskatchewan Minister of Environment that the Project is a Development. The result of this is that Fission will be required to produce an environmental impact assessment for the Project. In support of this, Fission has also submitted a draft Terms of Reference that will be finalized by the province in consultation with other stakeholders. The final Terms of Reference will guide Fission's EA development.

IsoEnergy announces initial assay results from Hurricane Expansion

TSXV: ISO

12-01-2021

Market Cap	Price as of	52-Week	52-Week
	12/31/21	High	Low
$396.01MM	$3.74	$6.61	$1.86

IsoEnergy announced chemical assay results from the first four drill holes completed during the summer drilling campaign at the Hurricane zone.

• LE21-78C1intersected 12.0m of uranium mineralization from 248.5 to 260.5m that averages 5.2% U3O8, including 2.0m of strong mineralization from 257.5m to 259.5m that averages 27.6% U3O8.
• LE21-80intersected 3.5m of uranium mineralization from 326.0m to 329.5m that averages 2.3% U3O8, including 2.0m averaging
  4.0% U3O8 from 326.0 to 328.0m.
• LE21-82intersected 4.5m of uranium mineralization from 328.5 to 333.0m that averages 0.9% U3O8, including 1.0m from 331.0 to
  332.0m that averages 1.4% U3O8.
• LE21-84intersected 3.0m of uranium mineralization from 326.5m to 329.5m that averages 0.5% U3O8, including 0.5m 1.4% U3O8 from 328.0 to 328.5m.
• Assays are pending forLE21-103.

CanAlaska announces uranium occurences on the Denison Moon Lake South JV

TSXV: CVV

12-01-2021

Market Cap	Price as of	52-Week	52-Week
	12/31/21	High	Low
$34.79MM	$0.435	$0.84	$0.37

CanAlaska announced joint venture drilling by partner Denison Mines has intersected uranium mineralization in drillholes MS-21-02 and MS-21-

06 at the Moon Lake South JV project. MS-21-02 intersected 0.14% eU3O8 over 0.2 metres above the unconformity and MS-21-06 intersected 0.12% eU3O8 over 0.2 metres below the unconformity. Denison operates the JV project, while CanAlaska, which maintains a 25% ownership in the project, is funding the Company's share of the 2021 exploration program.

Copyright ©2022 Purepoint Uranium Group Inc. All rights reserved.

Page 4

Monthly Athabasca Basin Exploration UpdateJanuary 2022

Baselode reports high-grade uranium at Ackio
Market Cap	Price as of	52-Week	52-Week
TSXV: FIND		12/31/21	High	Low
12-06-2021
$60.09MM	$0.81	$1.54	$0.40

Baselode announced assay results from the first diamond drill hole, AK21-01, of the recent ACKIO Uranium. Highlights include:

• 1.29 wt% U3O8 over 0.5 m at 138.8 m and 0.66 wt% U3O8 over 0.5 m at 142.3 m
• Primary mineralized zone measuring 15.5 m of 0.13 wt% U3O8 starting at 134.3 m
• Multiple uranium intersections occurring over 200 m of drill hole length.

Baselode is planning for a 10,000 metre diamond drill program on the ACKIO discovery to begin in mid- to late-January.

Standard Uranium outlines 2022 exploration plans

TSXV: STND

12-07-2021

Market Cap	Price as of	52-Week	52-Week
	12/31/21	High	Low
$22.33MM	$0.215	$0.51	$0.15

Standard Uranium announced its exploration schedule for 2022, in addition to confirming the Company has secured key contractors to complete the planned work. The Company will be executing a minimum of two drill campaigns in addition to geophysical surveys over four of its projects to prioritize targets and focus drilling.

Winter drilling will focus on the Company's 100% owned Sun Dog Project, located along the northwestern rim of the Basin. The inaugural Sun Dog drill campaign planned to begin in March 2022 will focus on several high-priority target areas along several kilometres of untested graphitic conductors coincident with cross-cutting faults and historical intersections of high-grade uranium mineralization. Prior to the winter drill program, the Company will be conducting high-resolution ground gravity and UAV magnetics surveys over high-priority target areas on Sun Dog in February 2022.

Spring/Summer drilling will comprise an aggressive follow-up campaign on Davidson River, located in the southwestern corner of the Basin. The 2022 drill program planned to commence in May 2022.

In addition to the 2022 drill programs, geophysical programs have been planned at Sun Dog along with the Company's 100% owned Atlantic, Canary, and Ascent Projects on the east side of the Athabasca Basin.

Azincourt commences road/camp preparation
Market Cap	Price as of	52-Week	52-Week
at the East Preston Uranium Project		12/31/21	High	Low
TSXV: AAZ
$34.07MM	$0.07	$0.18	$0.035
12-08-2021

Azincourt announced that preparation of the winter road to allow access for the winter 2022 exploration program has commenced at the East Preston uranium project, located in the western Athabasca Basin, Saskatchewan, Canada.

Accurate Industries has been contracted to prepare and maintain the 60 km winter access road under the supervision of TerraLogic Exploration Inc. The road allows access from Provincial Highway 955 along the Cree Lake Road to the planned camp site on the East Preston Project. Several waterways and swampy areas are required to be crossed, so early preparation is essential to ensure that these areas are properly prepared and frozen to allow safe access for the winter season.

Terralogic Exploration Inc. has been contracted to facilitate and execute a planned diamond drilling program, which will consist of a minimum of 6,000m of drilling in 30-35 drill holes. Drilling will focus on the A-G and K-Q trends, commencing in the G Zone where the 2021 drill program ended. The program will continue to test the G zone to the south and then move to test the K-Q trend. The program may be modified as results warrant.

Copyright ©2022 Purepoint Uranium Group Inc. All rights reserved.

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