The royalty is a 10% NPI on an approximate 20.6955% participating interest in the Project, which participating interest was previously transferred to the existing owners in 1992. As a profit-based NPI interest, the acquired royalty is calculated based upon generated revenue, with deductions for certain expenses and costs, which include cumulative expense accounts, including development costs.

The Cree Extension Royalty will only generate revenue to the Company after these cumulative expenditures are exhausted and the Company is treating the Cree Extension Royalty as a potential long-term revenue generation opportunity.

The Cree Extension and Millennium royalties are represented by the same royalty instrument, as the Millennium project was originally part of the Cree Extension project.

In 1998, Cameco became project operator of the Cree Extension Project. The most recent exploration work on the project has been carried out between 1999 and 2013, primarily focused on the Millennium project area until the Millennium claim was split out from the Cree Extension project in 2012.

Note on Technical Disclosure

Unless otherwise indicated, the scientific and technical information herein regarding the Millennium Project has been derived from Cameco’s Annual Information Form for the year ended December 31, 2023, and Cameco's other public disclosures, copies of which are available under Cameco's profile on SEDAR+. Additional information was collected from the Saskatchewan Mineral Assessment Database for the project, accessible through the Saskatchewan Geological Survey website.

Exploration on the Cree Extension project lands began in 1978 with Saskatchewan Mining Development Corporation (“SMDC”) as operator. Early work, from 1978 to 1981, consisted mainly of reconnaissance scale geochemical sampling and prospecting. The project was dormant from 1982 to 1985. Additional exploration, including airborne and ground geophysics, drilling, and surficial sampling was carried out from 1986 through 1990. Uranerz Exploration and Mining (“UEM”) assumed ownership of the project in 1989. UEM completed additional ground geophysics and drilling between 1990 and 1994. The project was inactive in 1995 and 1996.

In 1998, Cameco became project operator of the Cree Extension Project, which initially included the Millennium project claim. Although no exploration was undertaken in 1999, data compilation and drill core review reinforced the potential and prospectivity of the southern portion of the B1 trend, in particular near DDH CX-038, which was one of the final holes completed by the previous operator Uranerz Exploration and Mining.

Re-examination of DDH CX-038 identified a strong foliation control to alteration in the basement rocks. Projecting this altered basement stratigraphy along with the graphitic conductor up dip to the unconformity presented a priority drill target. The Millennium discovery hole CX-040, drilled in March 2000, was a vertical hole collared 40 m west of DDH CX-038. The Millennium deposit was delineated through geophysical surveys and surface drilling work between 2000 and 2013. The Cree Extension project has been in care and maintenance since 2014 with minimal exploration work completed.

Note on Technical Disclosure

Unless otherwise indicated, the scientific and technical information herein regarding the Millennium Project has been derived from Cameco’s Annual Information Form for the year ended December 31, 2023, and Cameco's other public disclosures, copies of which are available under Cameco's profile on SEDAR+. Additional information was collected from the Saskatchewan Mineral Assessment Database for the project, accessible through the Saskatchewan Geological Survey website.