Purepoint Uranium : Athabasca Basin Exploration Update – October 2022

MONTHLY ATHABASCA BASIN EXPLORATION UPDATE

OCTOBER 2022

Nuclear policy 'U-turns' bullish for Canadian uranium producer Cameco

Source:Yahoo Finance

Governments from Japan to South Korea to California are making policy "U-turns" on nuclear power as the cost of energy soars in some of the world's largest economies. Uranium industry experts say the trend will tighten a market where production is already below demand. Uranium stocks soared following Japanese Prime Minister Fumio Kishida's announcement last week that his country would restart idled nuclear plants, and focus on the development of next-generation reactors. Toronto-listed shares of Cameco (CCO.TO)(CCJ), one of the world's largest uranium producers based in Saskatchewan, have climbed more than 30 per cent since then. Denison Mines (DML.TO), another Canadian producer, has added nearly 34 per cent.

It's a massive shift in Japanese public opinion, which has been sharply against nuclear power since the deadly 2011 disaster at the Fukushima Daiichi Nuclear Power Plant. The incident inspired Germany to follow Japan's lead in phasing out its power plants, and caused a protracted slide in the price of uranium. Now, with winter on the way, both countries are facing an energy crisis as benchmark prices for natural gas and other commodities hit record highs due to Russia's war in Ukraine. "If Japan thought they had another solution to this problem, they probably would have gone to that solution," Nick Pi- quard, vice-president and portfolio manager of Horizons ETFs said in an interview. "This translates to an even more bullish perspective in countries like China and India that are building nuclear power plants, and don't have the history that Japan does."

Whether it's the deepening energy crisis in Europe, Tesla (TSLA) boss Elon Musk calling those who would shut down reactors "anti-human," or the infamous Reddit forum r/wallstreetbets musing about spiking uranium prices, it's hard to ignore the radioactivity-bullish mood of those invested in a nuclear -powered future. Toronto-based Sprott Asset Management has seen its Physical Uranium Trust (U-UN. TO) rise about 20 per cent since the Japanese prime minister's Aug. 24 announcement. Last December, chief executive officer John Ciampaglia called for the strong returns his fund saw in 2021 to continue this year as nuclear acceptance spreads. He says while Japan's recent "policy U-turn" is the most significant recent boost for the sector, similar shifts in South Korea and California should not be ignored. California's Diablo Canyon nuclear power plant has been slated to close in 2025 since 2016. Governor Gavin Newsom, a longtime proponent of shutting down the plant, has openly supported keeping the state's only operational nuclear power facility open. "What politicians have figured out is that we've loaded a lot of intermittent power into the grid over the last 20 years, and that's been a good thing. But it's not a magic bullet," Ciampaglia said in a recent interview. "You need backup baseload power generation to offset the intermittency of renewables. There are only three ways to do that. You can burn natural gas. You can burn coal. Or you can have nuclear power plants."

Ciampaglia says snap decisions to extend the life of nuclear power plants pose major challenges. For ex- ample, enriching uranium into usable nuclear fuel requires a long production cycle, with utilities typically making purchases years in advance. "A lot of that end fuel is actually produced in Russia... Most utilities are not entering into new supply agreements with Russian enrichment firms. But they are continuing to accept delivery under previous contracts. The reason is that there's no spare capacity in the West." "Then you have other countries like the U.K. and India saying we're going to build more power plants," "You can start to see the cumulative effect on what the future demand for uranium will look like." He estimates an averaged-sized plant requires about half a million pounds of uranium per year for its base load fuel. Last year, he says roughly 130 million pounds were mined, while total demand reached about 180 million pounds.

"All of that excess inventory is coming to an end," Horizons' Piquard said. "So, we really have a big production shortfall here." He says "the big winner here is Cameco." The Canadian uranium producer has been a long-term fuel supplier to the Japanese nuclear market, and has active contracts with Japanese utility customers. "In addition to Japan's announcement, in recent weeks and months, we have seen several jurisdictions revisit their plans to ramp down or phase out nuclear energy generation. When ideology is removed from the equation and the serious challenges of climate health and energy security rise to the fore, the ability of nuclear power to deliver safe, reliable, affordable, zero-emission baseload electricity simply can't be ignored," Cameco government relations and communications director Jeff Hryhoriw wrote in an email. "We are presently seeing perhaps the best market fundamentals Cameco has ever witnessed in the nuclear energy sector... Primary uranium supply is falling, with many mines having reached the end of their productive capacity and depressed prices that have not incentivized new supply for the past several years."

Piquard and Ciampaglia agree that the price of uranium will have to climb significantly to spur new production. "If you want to bring a new mine online for the first time, that might require uranium prices of US$70 or US$75 or US$80," Ciampaglia said. "Not US$50."•

UxC Consulting Spot Price

(US$)

August 31, 2022	$53.00/lb U3O8
September 30, 2022	$48.25/lb U3O8

Change of -$4.75/lb U3O8

UxC Consulting Long-Term Price

(US$)

August 31, 2022	$50.00/lb U3O8
September 30, 2022	$49.00/lb U3O8

Change of -$1.00/lb U3O8

Key Basin Announcements

09-07-2022: Skyharbour's partner Basin Uranium

Corp. announces intersection of mineralization from Phase 1 drilling at Mann Lake

09-08-2022: Denison announces expansion of high-grade uranium mineralization at McClean Lake South

09-08-2022: Skyharbour's partner Medaro Min-

ing commences airborne geophysical survey at

Yurchison Uranium Property

09-12-2022: Fission drilling increases Indicated Resources by 21% tonnes & 12.3% pounds U3O8

09-12-2022: Baselode reports geochemical assays from ACKIO

09-14-2022: Purepoint Uranium defines eight drill targets at 100% owned Carson Lake and Russell South Projects

09-14-2022: Denison announces intersection of additional high-grade uranium mineralization at Waterfound

09-20-2022: Purepoint Uranium prepares for follow-up drill program at Red Willow Project

09-20-2022: Baselode intersects 0.90% U3O8

over 31.0 metres

09-21-2022: Skyharbour's partner Valor Resourc-

es identifies eleven new uranium targets at the Hook Lake Uranium Project

09-28-2022: CanAlaska announced additional uranium mineralization from summer drill program

Monthly Athabasca Basin Exploration Update

Month over Month Uranium Stock Performance

(as of September 30, 2022)

Producing, Development & Advanced Exploration Companies

Cameco

Laramide Resources

Denison Mines

Nexgen Energy

Average

-14.71%

Peninsula Energy

Fission Uranium

UEC

-40 .0 0%

-30 .0 0%

-20 .0 0%

-10 .0 0%

0.00 %

10 .0 0%

20 .0 0%

30 .0 0%

40 .0 0%

Athabasca Basin Exploration Companies

ALX Resources

CanAlaska Uranium

Baselode Energy

Skyharbour Resources

IsoEnergy

Average

-17.0%

Fission 3.0

PUREPOINT URANIUM

Forum Energy

Standard Uranium

Azincourt Energy

-40 .0 %

-30 .0 %

-20 .0 %

-10 .0 %

0.0%

10 .0 %

20 .0 %

30 .0 %

40 .0 %

October 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 200,000 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 Uranium defines eight drill targets at 100% owned Carson Lake and Russell South Projects

TSXV: PTU

09-14-2022

				October 2022
	Market Cap	Price as of	52-Week	52-Week
		09/30/22	High	Low
	$23.98MM	$0.07	$0.17	$0.06

Purepoint Uranium released the interpreted results of its summer airborne gravity/magnetic survey over their 100% owned Carson Lake and Russell South Uranium Projects which lie on the eastern edge of the Athabasca Basin, Saskatchewan Canada.

"We are excited to add these new prospects to our pipeline of drill-ready projects and will be evaluating them for inclusion in our 2023 drill programs" said Scott Frostad, VP Exploration at Purepoint. "These targets are considered to be associated with major uranium finds along the eastern part of the Basin and the completion of the airborne geophysical surveying has provided a clear path to commence drilling".

Highlights

• Purepoint completed airborne Gravity Gradiometer, Gravity and Magnetic Surveys across both Carson Lake and Russell South this summer.
• The surveys covered 1,364 kilometres of flight at 100 metre spacings.
• Final interpretation in conjunction with previous surveys have outlined three targets at Carson Lake and five targets at Russell South.
• For more information on Carson Lake, including location map, visit:https://purepoint.ca/projects/carson-lake/.
• For more information on Russell South, including location map, visit:https://purepoint.ca/projects/russell-south/.

Carson Lake Gravity Map

Carson Lake Project

The 100% owned, 4,972 hectare, Carson Lake Project adjoins ValOre Metals Hatchet Lake Project on the north-eastern edge of the Athabasca Basin. The project covers a historic airborne geophysical electromagnetic (EM) survey that outlined a strong northeast trending EM conductor approximately 10 kilometres in length. The survey covered two of the primary target areas.

To the north, the Killock target is presumed to be graphitic pelite that has been incorporated into the north-south trending Killock Fault. Brittle structures such as the Killock fault intersecting ductile rock types, such as graphitic pelite, can create favourable dilation zones and allow uranium-rich fluids to become trapped.

The Lejour target is located where the north-south trending Lejour Fault crosscuts the main conductive trend. Gravity results suggest that the conductive trend is associated with a lithologic contact. Interpretation of the EM results suggests the single conductor west of the Lejour Fault is present as two parallel conductors east of the fault. The lower priority Trunk target is a 1-kilometre long, sigmoidal shaped EM conductor located within the southeast portion of the project.

Russell South Gravity Map

Russell South Project

The 100% owned Russell Lake Project is located near the south-central edge of the Athabasca Basin covering an area of 13,320 hectares.

Five target areas have now been identified at the project. The four eastern targets are based on the recent results from the airborne geophysical survey. The target zones are coincident airborne gravity low and magnetic low responses, interpreted as favourable rock types and/or alteration zones, that are proximal to north-northwest trending structures. The western Treleaven target area hosts historic coincident geochemical anomalies possibly related to a dilational zone lying between the interpreted north-south faults.

The project adjoins Cameco's Key Lake project on which the Key Lake Mine produced over 200 million pounds of uranium at a grade averaging 2.3% U3O8 between 1983 and 1997. In addition, the project adjoins the Moore Lake Project owned by Skyharbour Resources Ltd. with their high-grade Maverick Zone and Rio Tinto's Russell Lake Project to the west and south.

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

Page 3

Monthly Athabasca Basin Exploration Update

Purepoint Uranium prepares for follow-up drill program at Red Willow Project

TSXV: PTU

09-20-2022

				October 2022
	Market Cap	Price as of	52-Week	52-Week
		09/30/22	High	Low
	$23.98MM	$0.07	$0.17	$0.06

Purepoint Uranium announced the commencement of mobilization efforts at the	Location Map of Red Willo's Osprey Zone
100%-owned Red Willow project within the eastern uranium mine district of the Athabasca	2022 Drill Program
Basin, Saskatchewan Canada. This past winter's drilling intersected uranium mineralization
along 1.2 kilometres of strike length associated with the northern area of the Osprey Zone
electromagnetic (EM) conductor.
"We are now following up on assays that confirm the presence of uranium mineraliza-
tion over a distance of nearly a mile, suggesting that a broad mineralizing event occurred
throughout this region." said Chris Frostad, President and CEO at Purepoint. "Last winter's
drill program consistently returned anomalous uranium highlighted by RW22-06 that inter-
sected 0.47% U3O8 over 0.9 metres and our final winter hole RW22-15 which encountered
alteration and structure favourable to uranium deposition."

Highlights

• Drilling is expected to begin late September.
• Purepoint plans for 3,500 metres of drilling across 10 holes.
• The drill program will be utilizing helicopter support and will initially focus on determin- ing the extent of the uranium mineralization along the Osprey conductor.
• A winter follow-up drill program for the Osprey Zone and other primary target areas that are best drilled during winter months.

Final Assay Results for Red Willow's Osprey Zone 2022 Drill Program

Hole #	From	To (m)	WIdth	U	U3O8
	(m)		(m)	(ppm)	(wt%)
OSP22-04	70.4	71.2	0.8	95	0.01
	78.5	79.4	0.9	53	0.01
	152.3	152.7	0.4	77	0.01
OSP22-05	54.2	54.9	0.7	85	0.01
OSP22-06	75.7	79.6	3.6	55	0.01
	86.8	93.0	6.2	684	0.08
Including	89.9	90.8	0.9	3,990	0.47
OSP22-07	121.0	121.3	0.3	73	0.01
	22.5	123.5	1.0	75	0.01
OSP22-08	141.9	142.2	0.3	79	0.01
OSP22-09				<50
OSP22-10	72.8	74.3	1.5	75	0.01
	78.9	81.0	2.1	86	0.01
	105.0	105.3	0.3	76	0.01
OSP22-11	140.9	141.5	0.6	92	0.01
OSP22-12	148.6	155.0	6.4	159	0.02
OSP22-13	80.0	80.5	0.5	2,260	0.27
OSP22-14				<50
OSP22-15				<50

Samples returning >50 ppm U; Background considered < 10 ppm U

Geochemical Assaying

Core samples are submitted to the Saskatchewan Research Council (SRC) Geoanalytical Laboratories in Saskatoon. The SRC facility is ISO/IEC 17025:2005 accredited by the Standards Council of Canada (scope of accreditation #537). The samples are analyzed using partial and total digestion inductively coupled plasma methods, for boron by Na2O2 fusion, and for uranium by fluorimetry. All drill intercepts are core width and true thickness is yet to be determined.

Red Willow Project

The 100% owned Red Willow property is situated on the northern edge of the eastern Athabasca Basin mine corridor in Northern Saskatchewan, Can- ada. The property is located in close proximity to several uranium deposits including Orano Resources Canada Inc.'s JEB mine, approximately 10 kilometres to the southwest, and Cameco's Eagle Point mine that is approximately 10 kilometres due south.

Red Willow consists of 17 mineral claims having a total area of 40,116 hectares. Geophysical surveys conducted by Purepoint have included airborne magnetic and electromagnetic (VTEM) surveys, an airborne radio- metric survey, ground gradient array IP, pole-dipole array IP, fixed-loop and moving-loop transient electromagnetics, and gravity. The detailed airborne VTEM survey provided magnetic results that are an excellent base on which to interpret structures while the EM results outlined over 70 kilometres of conductors that in most instances represent favourable graphitic lithology.

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

Page 4

Monthly Athabasca Basin Exploration Update

Skyharbour's Partner Basin Uranium announces intersection of mineralization from Phase 1 Drilling at Mann Lake

TSXV: SYH

09-07-2022

				October 2022
	Market Cap	Price as of	52-Week	52-Week
		09/30/22	High	Low
	67.67MM	$0.0.465	$0.84	$0.29

Skyharbour announced the intersection of significant uranium mineralization from the five-hole, phase one drill program at its Mann Lake project located 25 km southwest of the McArthur River Mine and 15 km to the northeast along strike of Cameco's Millennium uranium deposit.

Highlights:

• 323 ppm U3O8 over 0.5 metres, intersected 30 metres below the unconformity within a broader 7.2-metre interval of anomalous uranium and graphite mineralization in hole MN22002. Additionally, 46 ppm U3O8 over 0.5 metres intersected 8 metres below the unconformity and immediately beneath a strongly sericite bleached shear zone in hole MN22004.
• Significant boron (B) mineralization, which serves as a pathfinder element for uranium deposits, with over 1,000 ppm B encountered at the unconformity in hole MN22005, 525 ppm B encountered at the unconformity in hole MN22001 and 319 ppm B in dravite (bo- ron-rich clay) below the unconformity in hole MN22003.
• Significant rare earth elements (REE's), including a highlight value of 5,028 ppm over 0.5 metres within a broader 50-metre interval of anomalous mineralization starting 20 metres below the unconformity in hole MN22003.
• Statistical analysis demonstrates correlation between anomalous concentrations of pathfinder elements (B, Co, Cu, Ni, and Pb) asso- ciated with the anomalous uranium mineralization. Pathfinder elements are widely regarded as guides to the discovery of unconformi- ty-style uranium deposits and provide further evidence of the presence of fluid movement potentially related to a uranium mineralizing system.

Denison announces expansion of high-grade uranium mineralization at McClean Lake South

TSX: DML

09-08-2022

Market Cap	Price as of	52-Week	52-Week
	09/30/22	High	Low
$1,317.58MM	$1.61	$2.65	$1.18

Denison reported that assays recently received from exploration drilling completed at the Company's 22.5% owned McClean Lake Joint Venture ("McClean Lake" or "MLJV"), during the winter of 2022, have resulted in a significant expansion of the "new" high-grade unconformity -hosted zone of uranium mineralization discovered in 2021 between the McClean South 8W and 8E pods.

• Ten drill holes completed during 2022 by Orano Canada Inc. ("Orano Canada"), 77.5% owner and operator of the MLJV, returned notable uranium mineralization, including drill hole MCS-58, which returned 2.96% U3O8 over 15.5 metres, including 24.49% U3O8 over 1.5 metres, located approximately 54 metres to the southeast of drill hole MCS-34, which was completed in 2021 and returned a mineralized interval of 8.67% U3O8 over 13.5 metres.
• Uranium mineralization grading greater than 0.05% U3O8 was intersected in 10 of 23 holes completed at McClean South during the winter of 2022, successfully expanding the footprint of the 'new' mineralized pod to a strike length of approximately 180 metres. The best mineralized intersection from the 2022 program was encountered in hole MCS-58, grading 2.96% U3O8 over 15.5 metres from 153.1 metres to 168.6 m, located 54 metres southeast of high-grade mineralization discovered during 2021 in MCS-34.Follow-up drilling approximately 8 metres to the north of MCS-58 identified further unconformity-associated mineralization, grading 0.34% eU3O8 over 9.5 metres in MCS-59A. Mineralization remains open to the north of MCS-59A.
• MCS-57,drilled approximately 28 metres along strike to the east of MCS-58, also identified unconformity-associated uranium mineral- ization, grading 0.35% U3O8 over 8.8 metres. This represents the eastern-most mineralized intersection of the 'new' mineralized pod and remains open further to the east for approximately 50 metres, where it appears to have been cut off by historical drilling that has defined the western extent of the 8E pod.
• MCS-38,the first hole drilled during the 2022 drilling program, intersected unconformity-associated uranium mineralization grading 1.17% U3O8 over 12.0 metres, approximately 12 metres along strike to the west of the mineralized intersection in MCS-34.
• Additionally, MCS-50 tested the unconformity approximately 65 metres along strike to the west of MCS-38 and encountered uncon- formity-associated mineralization that returned an interval grading 1.13% U3O8 over 8.0 metres. Drill testing to the west of MCS-50 did not return any notable high-grade mineralization; however, further drill testing is required to determine if the mineralization discov- ered in MCS-50 can be extended to the west by following an interpreted structural offset to the south.

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

Page 5