´╗┐Skyharbour Resources CEO Jordan Trimble on Putting Together a Package of Athabasca Uranium Assets & a Top Geology and Management Team

Key People, Strategic Investors, and Great Assets Combine for a Great Contrarian Play

Gerardo Del Real: This is Gerardo Del Real for Outsider Club. Joining me from the New Orleans Investors Conference CEO of Skyharbour resources, Mr. Jordan Trimble.

Jordan Trimble: Hi.

Gerardo Del Real: Jordan, thank you for joining us.

Jordan Trimble: Thank you.

Gerardo Del Real: I'm a big proponent of a few things when I speculate or invest in a company. I'm a big fan of sharing structure. You've got to have long term committed shareholders that know about the discovery process and allows that to play out, and jurisdictions matter. I'm seeing a lot of that in the market lately, where companies have a great asset in the wrong place.

Jordan Trimble: Absolutely. That's a big part of the uranium space too, right? What I look for and what I've been doing with Skyharbour, my team and I, we want to focus in a jurisdiction where we know we can go out there, we can make a discovery that's going to add value, that's going to create shareholder wealth, and the Athabasca Basin really is that jurisdiction in the uranium sector. You don't really have anything else out there like it. It's really a geological anomaly. You have these high grade deposits even in a declining commodity price environment as we've been in for uranium, it's a contrarian pick. You can still see these significant enormous returns for investors. We've seen that with NexGen. We've seen that with Fission. We've seen that with Alpha, and they ended up selling to Fission. We saw that with Hathor, right? That was significant in a bear market.

Jurisdiction is key. Not only is it a complete geological anomaly, highest grade uranium deposits in the world, we're talking in a magnitude of ten to twenty times that of other jurisdictions, but it's also safe. It's a great place to work. Saskatchewan is one of the best places in the world. I've worked on projects and with companies with projects in all the provinces and a number of the states down here in the US, and Saskatchewan is the best that I've worked in as far as geopolitics and you look at the First Nations there. The largest employer of the First Nations in Saskatchewan is Cameco – Cameco and AREVA.

These are key things. It's risky enough going out and looking for these deposits ... you drill a hole, you're looking for high grade mineralization, you're looking for the big home run hit, and you don't want to have to worry about these other risks that are associated with it. I can't say enough about the jurisdiction. We're active there. We're going to be drilling there in January, a small program that we're just lining up right now, so that will be a big catalyst for us coming up.

Getting back to the project base, I want to highlight one thing that we've been able to do really over the last three or three and a half years is take advantage of this bear market. We've now accumulated five projects, covering over two hundred and fifty thousand hectares of prospective land.

Gerardo Del Real: That wouldn't have been possible without this bear market? You talk about the contrarian play that uranium presents. I think it's one of the more unique things about how you've approached this, is you did a wonderful job during that downturn of assembling an amazing land package with some amazing people.

Jordan Trimble: You look at the value, right? You look at the valuation that we've been able to ... The valuation we’ve able to get these projects at. Less than $2.5 million in cash and stock, these five projects have had over $60 million invested in them. At one point the two main projects, Moore Lake, which is our flagship project, and Falcon Point, which we own a hundred percent of it and it has a small NI43-101 compliant uranium and thorium deposit on it, those two projects were in my head geologist's company, JNR ... They were in that company in the last bull run in uranium. At one point JNR was trading at a $350 million dollar market cap with just those two projects.

Gerardo Del Real: What's the market cap at right now?

Jordan Trimble: $12 million. This is the kind of discounts we're seeing right now, the contrarian opportunity that we're seeing. Needless to say, we believe it's going to turn around ultimately. We have the company poised to take advantage of that. There's a lot of junior uranium exploration companies that have fallen to the wayside. They're looking for other metals now or they just are no longer around.

Gerardo Del Real: Exploration and development companies that are not exploring or developing.

Jordan Trimble: Yeah, exactly. They're inactive. We've been opportunistic. We've found projects that other companies haven't been able to earn in on or quite frankly haven't been able to meet their requirements for the claims to be in good standing. You have to spend money on the claims. The projects that we have, too, because there has been so much historical exploration on them for the most part, the claims are in good standing for many, many years out, and that's the key thing. You want to have this optionality with your project base. We have the five projects, as I talked about, the flagship being Moore Lake, but now with these five projects, with this asset base, we can actually employ a prospect generator model on the non-core assets, and that's something that we're looking to do here over the next year.

That can bring in some cash for us to help fund further exploration without having to go back to the market. It also makes sure work is done on those projects using other people's money or other companies' money and-

Gerardo Del Real: The potential for maybe a home run with someone else's money?

Jordan Trimble: Absolutely. Absolutely. Everyone knows the prospect generator model. I think it's a great model. We're looking to become that for the Athabasca Basin, but we also have the main catalyst really, which is the exploration that we're carrying out at Moore Lake, and as I said that being the flagship project. It's a project that's had a lot of historical exploration done on it. It was actually my head geologist, again Rick Kusmirski, with JNR that made this initial high grade discovery there at Moore Lake. It's called the Maverick Zone. You've got 4% over ten meters. You've got some really nice mineralization there and most of it is at the unconformity, so here's what we're going to do.

We're going to go in there and we're going to give it a new look. You look at some of these recent discoveries that have been made in the Basin and it's basement hosted. It's below the unconformity, or even outside of the sandstone, the Athabasca sandstone. What we're going to do is go back in there. We will drill back into that high grade zone. We want to continue to prove out that zone, work towards an initial resource estimate on it, but we are going to be testing the basement rock below, which there was not a lot of drill testing done in that basement rock.

We think there's the potential there for a significant large, high grade discovery in the basement rock, so that's what we'll be doing going forward, but I want to emphasize too we're not going to go out and spend a ton of money drilling in a difficult market. We're going to be prudent with the budget. Again, I want to have the company in a situation to take advantage of the turnaround in the uranium market and not like a lot of other companies run out of money and not be able to survive.

Gerardo Del Real: You talked about money, and shareholder base is a big deal for me when I look at a company. You have some of the most influential and well-known shareholders, financiers, long term committed invested people. Can you share some of the details behind the shareholder base and how you were able to put such a prominent group together? It's incredible with a company with a twelve million dollar market cap.

Jordan Trimble: The shareholder base, they understand the contrarian aspect of this of company. We're going out there, we're being opportunistic in a difficult market. We do have catalysts coming up with the drilling, so that will generate flow and excitement around that, but they do see the uranium market in a bear market and they're investing in a company that, like I said earlier, has the potential for many, many multiple ... A big multiple return going forward.

You look at the shareholder base ... We just raised $2.47 million. Some of the larger participants in that financing, Marin Katusa and the KCR Fund, he's my largest individual shareholder. Jeff Phillips, and we have Doug Casey ... There's a couple of funds in Europe that own about nine and a half percent, and the insiders. We own just under 20%, so we have a lot of skin in the game.

Our largest strategic shareholder is Denison Mines. That's an important part of our story, is having one of the largest uranium development companies out there with a focus in the Athabasca Basin. They own 12% of the company. Their president and CEO, a gentleman named David Cates, he's on our board as well, a shareholder as well. Yeah, a very strong shareholder base, and also we've been putting together a team, bringing geologists and finance people and management together to build a team that can really stand the test of time-

Gerardo Del Real: For the long run?

Jordan Trimble: -for the long run, that has focused expertise in the Athabasca Basin. My team in Saskatoon, led by my head geologist, Rick Kusmirski ... Rick's a veteran. He's been doing this for over forty years. He was with Cameco for about fifteen years as a senior geologist there and then he ran JNR, which he ended up selling to Denison, and now a couple of the projects that were in JNR's portfolio are now back in our portfolio. Rick is a seasoned vet with focused expertise in the Basin. David Cates, who I talked about earlier, who's president and CEO of Denison Mines, he's on the board working closely with their team. Myself and Jim Pettit work together out of Vancouver. We run the corporate affairs for the company, do capital raising and capital budget management and all that kind of stuff.

Last but not least, Paul Matysek. He's come on as a strategic advisor for the company. He's a large shareholder of the company. He needs no introduction. He's bought and sold four companies, including Energy Metals, which he took from a $10 million market cap in 2004, sold it to Uranium One for $1.8 billion, so he knows the uranium space. He knows the contrarian aspect of this company very, very well.

Gerardo Del Real: It's a compelling opportunity. What can we expect from Skyharbour here in the next let's say three to six months? Is there a multiple catalyst on the horizon?

Jordan Trimble: We do. First and foremost the drill program coming up at Moore Lake. This is the project that we've acquired from Denison, just consummated the deal in the summer, so we'll be drilling there in January once it's frozen. It's a relatively shallow project too. I want to highlight that point because, as we see in the Basin, a lot of these higher grade deposits are deeper down. You look at Cigar and McArthur, the two producing mines there, and these are five, six, seven hundred meter deposits, so drilling them and proving up a resource can be quite costly.

The Moore Lake project in the high grade Maverick Zone is at about 260 meters, so half the depth. That's important because A, it's easier to target, it's less costly, your drilling risk goes down. We'll be drilling there, that will be January, February, March. The good thing with uranium exploration is you get a pretty good indication early on of what you're hitting based off of the scintillometer results, so we'll be having a lot of news on that. Then going back to this prospect generator model, we are looking to complete a few deals on some of the non-core projects with strategic partners that can come in and explore those projects, value-add those projects, again without us having to go back to the market to raise more money to do that.

We have a pretty good portfolio. The other projects outside of Moore Lake, you've got Falcon Point we own 100% of. There's a small deposit there, uranium and thorium near surface. We did a little bit of drilling there last summer, some higher grade mineralization depth. It also has one of the higher grade surface showings that have ever been found, 68% from a sample we took last year, last November actually, around this time.

Then we have Mann Lake, which is a project strategically located right just southwest of McArthur River, the largest uranium mine in the world. Then on the west side everyone has been focused on the NexGen and Fissions of the world. We have one of the largest land packages over there, fifty-fifty joint venture with a partner company. We've done quite a bit of work. We've actually had two other companies that were in a partnership and they funded a $5 million dollar program, so we have lots of targets there. These are all projects that would be perfect candidates to bring a partner in on.

Gerardo Del Real: Excellent. It sounds like a lot of catalysts, an exciting time at Skyharbour. For everybody that's watching and listening, I would remind you that just this time last year there was quiet on the precious metals front and when it turned it turned quickly.

Jordan Trimble: Absolutely, and that's what I tell people. Just kind of a quick synopsis of the uranium market, and we've seen the price continue to decline ... It's now trading at basically its all-time low in inflation adjusted terms, but the interesting thing is you look at that market ... Right now you've had excess supply that's hit the spot market. The spot market historically has been a relatively small amount of the total traded volume, so the spot price can fluctuate. It's volatile, as we've seen. The long term price, which is where the bulk of the material is actually traded, utilities buying it at that price, we're still in the high $30s, low $40s in terms of spot pricing for uranium. I think there's there's going to be a bit of an arbitration there. I think you're going to see the spot price eventually pick back up.

The interesting thing on the demand side, you look at the next five years, the next six years with the utilities companies having to come back, they're having to contract again, by 2023 you're going to have almost eighty percent of their requirements for the current reactor base at are uncovered. There is no contact in place to cover them right now, so they're going to have to come back and they're going to have to renegotiate, they're going to have to enter into these new contracts, new contracting cycle. That's going to drive the price up.

You also know that the secondary supply that's been hitting the market, and that's been the main reason why the spot price has been driven down, so that ends eventually. There's only so much out there. There's been more than I think anyone could have predicted, but, again, it's created this unbelievable contrarian opportunity both for shareholders buying shares in uranium companies, but also for the companies being able to acquire projects and put together a team. Some of the best geologists and technical people out there in the uranium space are available because the market has been that difficult.

It's a real interesting opportunity. We're in it for the long haul here. Ultimately we want to make that next big discovery, we want to get someone to come in and ultimately buy the company, as most exploration companies do. We will stand the test of time with this. We're moving forward. We have a lot on the horizon, got a lot of catalysts coming up. As I say, the icing on the cake will be when that uranium price starts taking off, and I see that happening sooner than later.

Gerardo Del Real: Excellent. It's called contrarian for a reason.

Jordan Trimble: Absolutely.

Gerardo Del Real: Jordan, thank you sir.

Jordan Trimble: Thank you.

Gerardo Del Real: I appreciate your time.

Jordan Trimble: Thank you.

Gerardo Del Real: All right. 

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