Stallion Uranium Update on Exploration with CEO Matthew Schwab

0:00 Say good morning, good afternoon, or good evening, depending on where in the world you're signing in from today. I've got with me today Matthew Schwab, CEO of Stallion Uranium, for an update on the company's exploration program. Matthew, how are you today? I'm doing great. Thank you very much for having me today, Romeo. It's always a pleasure. Awesome. Yeah, looking forward to it. So I got quite a few questions to ask you, but I want to do a bit of housekeeping first, just for the reasonably large amount of folks that are in the room. A couple of things to note. The chat button at the bottom of the screen is available. So please do feel free to add additional questions. I know some have been sent in already on email, but happy to take more during today's event if we have time. If for whatever reason I don't get your question, I'll make sure that the Stallion team gets those questions and is able to get back to you either using the phone number or email that you gave on registration. The other thing I'll say is there is a request meeting button at the bottom of the screen. If you'd like to press that to request a meeting with the Stallion team, you can do so at any time during today's event, and I'll try to connect you as soon as it's over. The other final thing I'll say before we get into the good stuff, the protein, as today's event is being recorded and will be available for replay in the mid-afternoon Eastern time, so relatively quickly.

1:03 It'll pop up the same link, but it'll also be in your inbox and on Six's YouTube channel. But Matt, enough out of me with the boring stuff. I want to get right into the interesting update from Stallion. So I know you started the year with a 4,000 meter program at Coyote, and now you're at 6,750. So For folks who don't follow drill programs closely, what did you see in the core that made you keep adding those additional metres?

1:27 That's a great question, Romeo. When I came on as CEO, I began by telling investors and shareholders what we wanted to accomplish and how we were going to do it with the team and resources at our disposal. But that process is really boiled down to 4 key criteria that we look for as Uranium geologists. We look for the correct lithology, structural complexity, graphitic conductors, and alteration. And we've hit all of those on every hole we've drilled so far. But beyond that, of course, we want to see elevated radioactivity, which we've hit on 6 of 8 of our holes up to date at this point, which pushes us forward and makes us want to keep moving through this drilling program and expand it as much as possible. Awesome. Now in reading through your deck, I know you've got a checklist. Graphite, fault zone, alteration, radioactivity all seem ticked and high-grade mineralization is still open.

2:19 So in plain terms, people in the room and folks watching the replay, how close are we to getting off that last box? Well, as I just said, the great thing is that in the 8 holes that we've drilled so far, 6 of them have hit elevated radioactivity. And I can go into that in more detail as we go through the conversation. But this really just proves that in a previously unexplored land package of 1700 square kilometres, we're in the right place. We had no drilling previously, no drilling data to work off of, and we've hit on 6 out of 8 holes so far. Okay. Oh, great. And I want to zoom in on ML26005

2:57 for a second, because I know it gave you 1416 counts per second, which is your highest reading so far, which is obviously really exciting. So kind of a 2 part question here. What does a number like that tell you as a uranium geologist? And what doesn't it tell you? What does it still leave to something you have to figure out?

3:14 So I've been working with my team on a way to explain this to shareholders and potential investors for some time now. And you can expect to see some version of this in an upcoming slide deck very soon. But to explain it plainly, I'll break it down into 5 simple categories. From 0 to 300 counts per second, we consider that to be background radioactivity. Honestly, nothing important. The smoke detector in your home is likely more radioactive than that. From 300 to 500 counts per second, we consider that elevated radioactivity, which typically ranges from 0.01% to 0.02% U3O8. That level seems very low, and it is, but it's actually a profitable mining grade in multiple jurisdictions in the world, including Australia and Kazakhstan.

4:00 Then we jump to the range of 500 to 10,000 counts per second. And this is where we get excited as Uranium geologists. That ranges from 0.02 to roughly 1% U308. And that's what we consider the margin of high-grade hitting that 1% mark. After that, we separated into a range of 10,000 to 50,000 counts per second, which are some of the highest grade deposits in the world. And then of course, the highest grade deposits exceed 500 or 50,000 counts per second, which can be upwards of 80% U3O8. So at the end of that explanation, you can rest assured that what we're seeing in that 500 to 1400 counts per second range is a strong indication of being on the right path to discovery.

4:45 Okay, great. Now this is a question that is reflected in a number of people who wrote in before the event, but I had it too, so I'll throw it to you at this point. So we're 6 holes into Coyote and there's no assays out yet. So when do they land and what are you looking for in the geochemistry beyond just that uranium number itself?

5:03 Well, that really goes back to my last point. You know, we've been hitting elevated radioactivity, but I'm not going to exaggerate what we're seeing. Again, just refer to my previous breakdown. Until we hit that 10,000 counts per second mark, we'll continue to rely on counts per second readings to avoid confusion. It's much easier to explain our benchmarks that way. So while we're seeing elevated radioactivity across the Coyote corridor, we aren't at a discovery yet, and I won't claim that until we are at that point. But we are in a fertile corridor and our team is very encouraged with what we've seen so far. Phase 2, as I understand it's about 2165m.

5:44 That's not a lot of holes at these depths. How do you decide where those meters go? First off, based on our current progress and the fact that phase 2 is going far more smoothly than phase 1, we're likely going to exceed that meter's number. But it's definitely a combined approach. We wanted to continue following up on the promising drilling at Coyote with the elevated radioactivity and alteration and structure that we've seen, but we also want to expand our program by looking at additional targets, including those outlined by the Haystack survey, but also those uncovered by our continued geophysical work and interpretation

6:20 on areas such as Stone Island. So we really want to spread it across the board so that when we come back in 2027, we have as much data as possible to move forward to that discovery if we don't make it in the next 5 holes. Great, I appreciate that. Now I know you brought an SRK for a regional structural study kind of midway through the program. What did they see in the Western Basin that your own team hadn't already mapped?

6:45 You know, that study really just confirmed what we had already mapped with what was happening on our property. Yes, there were some small anomalies that we had not identified, and that's fantastic and of course helpful. But it's great to see that our work can be independently confirmed through the work of other professionals. So it was really kind of a balancing point, just to make sure that we were on the right path. OK, great.

7:13 One question I ask everybody using interesting AI modeling, questions like this. Because I know you've been using Haystack AI targeting alongside the ground gravity. So I'm kind of just looking for your honest take. Has the AI layer changed a real decision yet, or is it still just kind of a tiebreaker in otherwise tough calls?

7:33 You know, that's actually still up in the air. The Haystack survey confirmed many of the same tier 1 targets that our team had previously outlined, which again is fantastic. But so far we've been unable to correlate the specific haystack targets with any areas of alteration or structure as intense as we've seen at Coyote. Coyote is still the most intense structure and alteration that we've seen so far on any of our drill holes. So more interpretation needs to be done. I think there's a lot of value behind it, but it just takes time to get through that process.

8:09 Makes sense. One question, I want to draw on your past experience to help people understand where in the cycle Stallion is. I know you were on the Arrow Discovery team at NextGen and the Hathor team that sold Rough Rider to Rio Tinto. How many holes did it take, let's say at Arrow, before the whole picture clicked? Where is Coyote on that same curve, just so people can get a timeline?

8:30 So Admittedly, I was not part of the discovery team at Hathor. While I did learn a lot through that process, I came on later as part of the development team. But yes, I was an integral part of the Arrow discovery team at NextGen. With NextGen, we made the discovery of arrow on the 30th drill hole at the company. And that was honestly well ahead of the industry standards. In comparison, it took just shy of 200 drill holes to make the discovery of MacArthur River.

8:57 So at drill hole 8, where we are at right now with stallion, I think we're easily ahead of the curve with what we've been seeing, again, with the 4 key criteria that we look for and the elevated radioactivity that we've seen on 6 out of 8 drill holes, I think we're well ahead of the curve. Okay, no, appreciate that. Just helps people to understand context. One question I had is I know Stone Island came back with 3 gravity targets of its own on an 18km conductive trend. Does Stone Island get drilled before Coyote is finished or does Coyote have to earn its way to a second season first?

9:35 No. Stone Island is a very exciting new prospect with all the same strong geophysical signatures of Coyote. It has the same 4P criteria. And the best part of that area is that the depth of unconformity is only about 250m, roughly half of the depth of Coyote, where we're looking at 450-500m

9:53 roughly to unconformity. So ideally, we'd like to have drilling data from Coyote, Stone Island and haystack targets by the end of this current drilling program. That way it gives our team plenty of time to digest the data that we've collected and work through targeting as we plan for 2027. Okay, that's helpful. I know Lynx sits right next to Arano's Utrecht project and Fish Hook has a historical 0.139% U308 hit, 8km downtrend. Of the 9 targets on your list, if somebody gave you $5M tomorrow and you found it in a box, Which 1 would you drill tomorrow?

10:34 Well, you know, we already know that we're in a fertile corridor. So our team is excited about the immediate prospects in front of us. So regardless of how much money comes our way, we will still be focusing on Coyote and Stone Island as we move through 2027 to the best of our ability. Plain and simple. Great. I know your deck, which I read pretty extensively before this, calls the Southwestern Basin the Eastern Basin in the 1980s.

11:01 What's one piece of infrastructure or data that has to show up for that comparison to become real for investors watching?

11:10 Honestly, it's already real. With the discoveries of RRR, Arrow, JR Zone, etc. We've already shown the industry that the Southwestern Basin has the same potential as the Eastern Basin across the board. We just need to keep building on that. And now that those discoveries have driven development in the area with better roads and better infrastructure, it makes our jobs that much easier to recreate that success in the Southwestern Basin.

11:37 I appreciate that. One is a tough question, but I know it's 1 that's on some investors' mind. Uranium sits around 90 bucks or was at least when I wrote this, wrote these questions And term price just kind of printed a record. I know Stallium stock is down about 65% this year. What is that disconnect and what do you think is going to close it for investors that are here?

12:00 It's been a rough summer and fall for sure. We've certainly taken a beating in the market, but we're very optimistic for what's to come. After some funds liquidating the positions and then consequentially being delisted from an ETF, it's been tough to rebuild our position, but some of our larger shareholders

12:19 have been eating that up as much as possible. But we're not the only equity that's been fighting this. And really the only thing that can stop this is good news such as a discovery. And That's what we're working towards every single day. One question about land. I know you carry roughly 430,000 acres but drill a few square kilometres a year. Is the plan to keep all of it, or does 2027 look like a year where you're going to partner or trim some of that ground?

12:52 That's an ongoing process. We're constantly assessing our land package, looking for shallower and more prospective ground where we can better spend our money. It's always a balancing act between staking new ground and letting areas lapse. But I think our team really has that dialed in on how to retain land and maximize how money is spent to move towards discovery. So it really is a balancing act, but I think we've really got it put in place. So.

13:21 Awesome. No, appreciate that. I'm now going to crystal ballgaze with you for a second. So, so bear with me. It's spring 2027, the winter program is done. What's the headline that Stallion wanted at that point?

13:33 Well, Optimistically, a discovery would be a great headline. But even without that, our team has successfully done everything that we said we would a year and a half ago. We've gone through the process, we've explored our targets, we've rebuilt the company. Continuing to hit elevated radioactivity across the Coyote corridor and new areas that we're testing is a fantastic process.

13:57 We're right exactly where we should be. Discovery is right around the corner. Okay, great. And then last one for me, and then we'll get to some of the questions that were written in advance and in the chat. Just for somebody who's never owned a Uranium Explorer, what's the honest pitch for buying 1 that hasn't published an essay yet? Well, I would say pay attention to the details and understand what the press releases mean. Ask questions. Some companies will tell you they've made a discovery on 100 counts per second. Others will drill meters away from an exhausted resource and hit 50,000 counts per second, but have no chance of ever building a resource. So you have to read between the lines and actually trust the companies that tell you the truth. Trust the teams that tell you the truth. I think that's the best place to put your money.

14:45 Okay. Hey, great. Appreciate that take. I'm going to get to a couple of questions from the audience here. For folks watching, this is an opportunity to ask additional questions. There's one that was written in on email, but it's also reflected in the chat. Have you established that radioactivity is from uranium and not Thorium or Potassium? Of course it's combination. And that's with every deposit in the Athabasca basin. Yes, we do know that there is Uranium in each of the assays that we've taken through our high grade, low grade zones, sorry, our elevated radioactivity zones. But again, based on the explanation that I gave on how we break down radioactivity, it is low grade uranium mineralization. So until we get that 10,000 counts per second, I'm not going to worry so much about putting out assays and just keep everything on the same page with counts per second.

15:37 Great. One person wanted to know what's the basis for your optimism on Pathfinder data right now?

15:44 Again, so Stepping back, in a land package of 1,700 square kilometres where there is no previous drilling data, the fact that we've hit over 500 counts per second radioactivity on 6 out of 8 drill holes is fantastic. Looking back, and I've said this in previous interviews, the statistical average in 150,000 drill holes put into the Athabascan Basin is less than 1% have hit 500 counts per second. And we've done that on 6 out of 8 holes. So we are very optimistic. We're very interested in what comes from Coyote, but also other targets moving forward.

16:22 I think we're in a very good position right now. One person specifically asking about holes 7 to 9. I was just curious about your perspective

16:31 there. When those will pop out? We should have a release out in the next 2 weeks right now. Again, drilling is going very well, but I like to lump holes together. I don't want to put them out one at a time. So you should see a release in the next couple of weeks here on the first portion of this phase 2 drilling that we're going through. Awesome. And for folks watching, from my perspective, that's a much more honest and much less misleading practice than the one hole at a time that I often see. So that's just my take. One person in the chat wanted to throw out, can you confirm the remaining

17:04 cash you've got post this phase 2 program?

17:10 So right now, we just have over $10M in the bank. Currently, We have about $5M left to spend and flow through in 2026. So coming out of this drilling program, we should still have $5M plus of hard dollars in the Treasury moving forward into 2027.

17:32 And one last question that just popped in, or last opportunity to ask additional ones. Is there anything from geochemical studies or geochem right now that gives additional optimism on narrowing in?

17:44 The clay study that we've been doing, They are showing the right pathfinders with Illite across the board, so the right clay that is associated with Uranium mineralization in the basin, with the drill holes that we've seen. It's just one more check on the box, on the list, to show us that we are on the right path to make a discovery. Another one that just came in. Historically, what percentage of those 500 plus CPS holes ultimately returned economically meaningful Uranium assays? That's a really good question. Actually, I don't know if I have an answer to that. I'm sorry. No, all good. It's a very small percentage because again, out of the 150,000 drill holes put into the base and we've got 30 deposits, give or take.

18:32 So yeah, RJ, I'll connect you to the team after if you're looking for a more fulsome answer, but Matt, I appreciate you doing some quick math in your head right there.

18:42 One person in the chat wants to know, do you have 1 rig or 2 rigs operating And is that going to stay the same over the next period of drilling? Currently we only have 1 rig operating for phase 2, and that's going to continue through 2027 as well. Looks like it from the audience right now. But as I'm saying, wrapping up, please feel free to ask one last one. But Matt, thank you so much for your time today. Really appreciate you giving us a fulsome update on what's coming next and letting me grill you on some of the tough questions. So I really appreciate your time and appreciate everybody who's in the room as well. Hope you watch the replay, share with your friends. If you have any additional questions, please let us know. I'll make sure they

19:19 get to the Stallion team, but everyone, thanks for joining. And Matt, especially, thanks for letting me throw some questions at you. Wonderful, thank you very much for the time, Romeo. Thank you for everybody who joined the chat today. Have a great day, everyone. Cheers.