Skyharbour completes majority earn-in, forms joint venture with Rio Tinto

Skyharbour Resources completed its earn-in requirements to earn a 51% interest in the Russell Lake Uranium Project, located in Northern Saskatchewan, Canada, pursuant to the option agreement dated May 10th, 2022, as amended on January 15, 2024 with Rio Tinto (RIO) Exploration Canada. The Project is strategically located in the central core of the Eastern Athabasca Basin of northern Saskatchewan adjacent to regional infrastructure, including an all-weather road and powerline. Skyharbour will also be commencing an upcoming fall drill program which will consist of approximately 4,000-5,000m at the project. Formation of the JV: Pursuant to the Agreement, Skyharbour has now earned a 51% interest in the Property by initially paying a cash payment of CAD $508,200, issuing 3,584,014 common shares of the Company to Rio Tinto and incurring an aggregate $5,717,250 in exploration expenditures on the Property over the 3-year term of the earn-in. The Company and Rio Tinto have formed a joint venture to further explore the Property, with the Company holding a 51% ownership interest and Rio Tinto holding a 49% ownership interest. Russell Lake Uranium Project Overview: The Russell Lake Project is a large, advanced-stage uranium exploration property totalling 73,294 hectares strategically located between Cameco’s Key Lake and McArthur River Projects and adjoining Denison’s Wheeler River Project to the west and Skyharbour’s Moore Uranium Project to the east. The northern extension of Highway 914 between Key Lake and McArthur River runs through the western extent of the Property and greatly enhances accessibility, while a high-voltage powerline is situated alongside this road and the western edge of the property south of Key Lake. Skyharbour’s acquisition of a majority interest in Russell Lake creates a large, nearly contiguous block of highly prospective uranium claims totalling 108,999 hectares between the Russell Lake and the Moore uranium projects. Skyharbour now has a 51% interest in Russell Lake having formed a joint venture partnership with Rio Tinto at the project. There has been historical exploration carried out at Russell Lake, however most of it was conducted before 2010 prior to the discovery of several major deposits in/around the Athabasca Basin. In 2023, Skyharbour’s inaugural diamond drilling program tested several Fox Lake Trail targets and the Grayling Zone. Significant uranium mineralization was intersected in the majority of holes at the Grayling Zone over a strike length exceeding one kilometre. Drill hole RSL23-01 intersected one of the better drill results from the project, returning a 5.9 metre wide intercept of 0.151% U3O8 at a depth of 338.4 metres, which included 1.0 metres of 0.366% U3O8 at 343.3 metres depth within a thrust wedge. More recently, Skyharbour completed 5,152 metres of drilling in a 2024 winter drill program earlier this year, making a new discovery at the newly identified Fork Target area. Hole RSL24-02 marks the best intercept of uranium mineralization historically at the project, returning a 2.5 metre wide intercept of 0.721% U3O8 at a relatively shallow depth of 338.1 metres, including 2.99% U3O8 over 0.5 metres at 339.6 metres just above the unconformity in the sandstone. Skyharbour is fully-funded for an upcoming fall drill program which will consist of approximately 4,000-5,000m at the project to follow up on the recent discovery. Several notable exploration targets exist on the property including the Grayling Zone, the M-Zone Extension target, the Little Man Lake target, the Christie Lake target, the Fox Lake Trail target and the newly identified Fork Zone target. More than 35 kilometres of largely untested prospective conductors in areas of low magnetic intensity also exist on the Property.