Response to U.S. Nuclear Fuel Working Group report

27 April 2020

Yellow Cake plc ("Yellow Cake" or the "Company")

Response to U.S. Nuclear Fuel Working Group report

Yellow Cake, a specialist company operating in the uranium sector with a view to holding physical uranium for the long term, notes the release of the U.S. Nuclear Fuel Working Group's ("NFWG") report: "Restoring America's Competitive Nuclear Energy Advantage - A Strategy to Restore American Nuclear Energy Leadership".

The report outlines a strategy to re-establish capabilities and provide direct support to the front end of America's nuclear fuel cycle, including direct purchases of uranium for the strategic Uranium Reserve.

The report includes policy recommendations on Executive, Congressional and regulatory actions that could be taken to enhance the positive attributes of nuclear power, revive capabilities of the uranium mining, milling and conversion industries in the U.S., strengthen U.S. technology supremacy, and drive U.S. exports, while assuring consistency with U.S. non-proliferation objectives and supporting national security.

Andre Liebenberg, Chief Executive, stated:

"The publication of this report brings to an end a long period of uncertainty for the uranium market which has weighed heavily on the uranium price, notwithstanding the recent price rises caused by supply-side pressures in uranium production, exacerbated by the effects of Covid-19. That uncertainty has limited longer term contracting and market activity by utilities in particular.

Yellow Cake expects the release of the NWFG's findings will reduce the market uncertainty associated with this policy review process and contribute to improved market conditions, as US nuclear utilities in particular, re-enter the market and engage in term contracting in order to address future uncovered uranium requirements. We remain confident in the long term investment case for uranium and in the market position of Yellow Cake to capitalise on it."

ENQUIRIES:       

ABOUT YELLOW CAKE

Yellow Cake is a London-listed company, headquartered in Jersey, which offers exposure to the uranium spot price. This is achieved through its strategy of buying and holding physical triuranium octoxide ("U₃O₈"). It may also seek to add value through the acquisition of uranium royalties and streams or other uranium related activities. Yellow Cake seeks to generate returns for shareholders through the appreciation of the value of its holding of U₃O₈ and its other uranium related activities in a rising uranium price environment. The business is differentiated from its peers by its lower cost base and ten-year Framework Agreement for the supply of U₃O₈ with Kazatomprom, the world's largest uranium producer. Yellow Cake currently holds 9.62 million lb of U₃O₈, all of which is held in storage in North America. 

FORWARD LOOKING STATEMENTS

Certain statements contained herein are forward looking statements and are based on current expectations, estimates and projections about the potential returns of the Company and the industry and markets in which the Company will operate, the Directors' beliefs and assumptions made by the Directors. Words such as "expects", "anticipates", "should", "intends", "plans", "believes", "seeks", "estimates", "projects", "pipeline", "aims", "may", "targets", "would", "could" and variations of such words and similar expressions are intended to identify such forward looking statements and expectations. These statements are not guarantees of future performance or the ability to identify and consummate investments and involve certain risks, uncertainties and assumptions that are difficult to predict, qualify or quantify. Therefore, actual outcomes and results may differ materially from what is expressed in such forward looking statements or expectations. Among the factors that could cause actual results to differ materially are: uranium price volatility, difficulty in sourcing opportunities to buy or sell U₃O₈, foreign exchange rates, changes in political and economic conditions, competition from other energy sources, nuclear accident, loss of key personnel or termination of the services agreement with 308 Services Limited, changes in the legal or regulatory environment, insolvency of counterparties to the Company's material contracts or breach of such material contracts by such counterparties. These forward-looking statements speak only as at the date of this announcement. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward looking statements contained herein to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based unless required to do so by applicable law or the AIM Rules.