Improved U3O8 Sector Good News for Prospect Generator
Research Report

1. Skyharbour Resources Ltd. and Terra Clean Energy Corp. are billboard sponsors of Streetwise Reports and pay SWR a monthly sponsorship fee between US$4,000 and US$5,000. 
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Terra Clean Energy Corp.
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Disclosures for Fundamental Research Corp., Skyharbour Resources Ltd., June 25, 2025

Fundamental Research Corp. Equity Rating Scale (ratings are not a recommendation to acquire, dispose of, or take no action regarding a security; the definitions of our ratings are explained below): Buy – Fair value is 12% above the current market price; or risk and reward is favorable Hold – Fair value is between 5% to 12% above the current market price Sell – Fair value is 5% above, or less, than the current market value; or risk and reward is unfavorable Suspended or Rating N/A— Coverage and ratings suspended until more information can be obtained from the company regarding recent events. Fundamental Research Corp. Risk Rating Scale: 1 (Low Risk) - The company operates in an industry where it has a strong position (for example a monopoly, high market share etc.) or operates in a regulated industry. The future outlook is stable or positive for the industry. The company generates positive free cash flow and has a history of profitability. 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Skyharbour Resources Ltd.'s (SYH:TSX.V; SYHBF:OTCQX; SC1P:FSE) most robust drill campaign ever, consisting of individual programs at its flagship Russell Lake and Moore projects, now is in progress, at a time when the uranium market is improving, reported Sid Rajeev, head of research, Fundamental Research Corp. (FRC) in a June 25 research note. A handful of Skyharbour's option partners also have exploration programs underway or imminent.

"Uranium sector sentiment is improving, driven by rising prices, strong institutional investment, and commitments from major tech players securing nuclear power for future growth," Rajeev wrote. "We believe Skyharbour is well-positioned to capitalize on this momentum."

206% Return Implied

After FRC applied sector multiples to its fair value target price on Skyharbour, dropped slightly to CA$1.01 per share from CA$1.02.

In comparison, the uranium explorer and prospect generator's share price at the time of Rajeev's report was CA$0.33 per share, the analyst noted. The return to target is 206%.

Skyharbour is a Buy.

Details of Drilling

Between Russell Lake and Moore, Skyharbour intends to drill 35–45 holes over 16,000–18,000 meters (16,000–18,000m) in its current campaign.

At Russell Lake, 57.7% owned by Skyharbour, 42.3% by Rio Tinto Plc (RIO:NYSE; RIO:ASX; RIO:LSE; RTNTF:OTCMKTS), in February Skyharbour began a 10–12 hole, 5,000m first drilling phase. The planned total is 18–20 holes over 10,000–11,000m, to build on recent positive exploration results. Last year, for example, drilling revealed another discovery at the Fork target as one of five holes drilled there hit high-grade mineralization. This included 2.5m of 0.72% U3O8 from 338m downhole, with a higher-grade interval of 0.5m at 2.99% U3O8.

At Moore, a 4,500–5,000m drill program to follow up on Skyharbour's summer 2024 drill results will be done soon. Last year, the company drilled nine holes over 2,759m, four in the Main Maverick zone and five in the Maverick East zone. Eight of the nine holes hit mineralization.

A stepout hole placed 42m northeast of the known high-grade footprint at Maverick East returned high-grade intercepts at shallow depths. These included 6.4m of 1.5% U3O8, including 1.5m of 4.74% U3O8, which expanded the high-grade mineralized zone in the Maverick East area.

A follow-up drill program will begin shortly, during which Main Maverick, Maverick East and high-priority regional targets will be drilled.

"Though unconfirmed by management, it is our view that Skyharbour may complete an NI 43-101 resource estimate at Moore next year," Rajeev wrote.

Prices, Sentiment Improved

Rajeev reported what has been happening in the uranium market. Over the past three months, prices rose 22% to US$78 per pound. The Sprott Physical Uranium Trust (U.U:TSX), the world's largest physical uranium investment fund, recently closed a US$200 million financing to raise funds to buy more physical uranium. This is a sign of strong uranium demand and bullish sentiment for uranium prices, noted Rajeev.

One of two other positives for uranium is the Trump Administration pushing to revive the U.S. nuclear sector by fast-tracking domestic uranium projects. The second is Meta Platforms Inc. recently signing a 20-year deal to secure nuclear power for its artificial intelligence and data centers, as Google, Microsoft and Amazon already had done.

"We believe rising uranium demand and supply chain risks, especially with Russia producing 35% of global enriched uranium, are driving renewed investor optimism in the industry," wrote Rajeev.

Updates on Partner Programs

Skyharbour owns 36 properties covering 614,353 hectares in Canada's Athabasca Basin. Nine projects have an associated joint venture/option agreement in place, noted Rajeev. He provided an update on the prospect generator's optioned projects with active programs underway or planned for the near term.

South Falcon East: Terra Clean Energy Corp. (TCEC:CSE; TCEFF:OTC; T1KC:FSE), with a CA$5M market cap, is preparing to commence its summer drill program, seven to 10 holes over 2,500m, at South Falcon East. Its previous drill program intersected mineralization.

Falcon: North Shore Uranium Ltd. (NSU:TSX.V), with a CA$1M market cap, is getting ready for its summer drill program at Falcon, where 36 uranium targets have been identified thus far.

Preston: At Preston, Orano Canada is undertaking a summer program comprised of 28 holes over 6,000–7,000m.

914W: Mustang Energy Corp. (MEC:CSE; MECPF:OTC; 92T:FRA), with a CA$14M market cap, began a rock and soil sampling program at 914W.

Skyharbour's option partners are advancing their projects via exploration and drill programs with 15,000–16,000m planned, reported Rajeev. The company's partners could commit up to $36M for exploration, and Skyharbour could receive up to US$34M in payments of cash or shares if its partners fulfill their option agreements, noted Rajeev.

On the Horizon

Upcoming catalysts for Skyharbour, according to Rajeev, include drilling at Russell Lake and Moore, exploration programs by the company's option partners, potential additional option agreements and positive sentiment toward uranium juniors.