Boss Energy : Quarterly Activities Report

ASX Release 20 January 2022

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December 2021 Quarterly Report

Boss delivers on strategy to prepare for

uranium production while growing inventory

Quarterly Highlights

• Significant progress made in preparation for re-start of Honeymoon uranium project in South Australia
• Front-endengineering work more than 50% complete, high-voltage power connection agreement executed, and 100% of Piping and Instrumentation Diagrams now finalised
• New wellfield design optimised, which better addresses in-ground resource improving leach efficiency
• Project Execution Plan approved for Honeymoon's restart; This outlines the objectives, processes and strategies to be employed by the Company's personnel (Owner's Team) and appointed EPCM contractors, together forming the integrated Project Team
• Geophysical phase of Boss' Accelerated Discovery Initiative program completed, with successful passive and seismic reflection exploration surveys
• Resource growth drilling underway to test new targets as part of plan to increase the inventory and forecast production rate
• Share capital consolidated at ratio of one-for-eight, reflecting Boss' ongoing strategy to generate increasing ownership of its stock among leading global institutional investors
• Boss' inventory of 1.25Mlb of U3O8 has a current spot market value of US$57.04M (A$79.22M). Boss paid US$30.15/lb for this inventory in March 2021 for a total cost of US$37.68M (A$49.69M). This represents a book profit of A$29.53M
• In addition to this windfall, the inventory is of immense strategic value to Boss on several levels as it increases flexibility in project funding and offtake negotiations with customers in preparation to re-start production
• In a sign of the increasing strength of the uranium market and Honeymoon's status in the industry as a credible near-term producer, Boss received several requests for tender proposals during the quarter from three countries with nuclear energy
• "We have a two-pronged strategy for creating shareholder value. This involves preparations for the start of production and cashflow, which will make Boss Australia's next uranium producer, and growing the uranium inventory." - Boss MD Duncan Craib

FOR FURTHER INFORMATION PLEASE CONTACT:

Boss Energy Limited	Duncan Craib - Managing Director/ CEO	ASX: BOE; OTCQB: BQSSF
ABN 38 116 834 336	[phone]	www.bossenergy.com
Suite 3, Churchill Court	Paul Armstrong - Public Relations	@Boss_Energy
234 Churchill Avenue	[phone]
Subiaco WA 6008

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Boss Energy (ASX: BOE; OTCQB: BQSSF) is pleased to report on the strong progress it made in the past quarter towards its goal of being Australia's next uranium producer at its Honeymoon Project in South Australia.

Following release of the highly successful Enhanced Feasibility Study for Honeymoon in June 2021, Boss has rapidly advanced key workstreams in preparation for a Final Investment Decision (FID).

Boss is undertaking multiple work streams in line with its strategy to ensure Honeymoon is as close as practicably possible to re-starting production once the Company determines that the uranium price makes it commercially desirable to do so.

Boss Managing Director Duncan Craib said: "Our latest outstanding progress demonstrates why Honeymoon is set to be Australia's next uranium producer.

"Our strategy is aimed at ensuring Boss can move from a Final Investment Decision into execution and production as rapidly as possible.

"This will enable us to capitalise on a rising uranium price at an opportunistic time."

In parallel, Boss is accelerating development of its exploration strategy with a staged approach that has significantly expanded the global JORC resource at Honeymoon from 16.57Mlbs to 71.67Mlbs (~433% increase) since project acquisition in December 20151.

During the quarter, Boss started exploration drilling as part of its strategy to continue growing the inventory and forecast production rate.

The drilling program will start testing highly promising targets identified by the recently completed geophysical programs using seismic reflection surveys.

Initial drill results are expected to be released to the ASX in the coming weeks.

Engineering process on track and Project execution plan approved

The critical planning tool of Front-End Engineering Design (FEED) studies are more than half complete and remains on target to finish in the March quarter, 2022. This will allow detailed design to commence immediately after an FID is made.

Boss has also approved the Project Execution Plan (PEP) for Honeymoon's restart, which outlines the objectives, processes and strategies to be employed by the Company's personnel (Owner's Team) and appointed EPCM Engineer. This plan will also establish a framework to ensure that project expectations and key performance indicators are met.

Piping and Instrumentation Diagrams 100% finalised

Completion and lock of designs of Piping and Instrumentation Diagrams (P&ID's) is now 100% finalised (95 diagrams).

Over the past 6 weeks the final P&ID layouts for Wellfield Instructure, Water Treatment Plant and general water services were completed.

1 Refer to ASX: BOE announcement dated 25 February 2019. Refer Appendix 1 for Honeymoon JORC 2012 Resource.

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Connection Service Agreement Executed

Taking another key step in its strategy to re-start production at Honeymoon, Boss has executed a high voltage connection service agreement with Essential Energy, a statutory state-owned corporation established under the Energy Services Corporations Act 1995 (New South Wales).

Securing power supply is a primary requirement for any mine development. Power supply for the Honeymoon Mine is via overhead transmission line from the national electricity grid via Australia's oldest mining town Broken Hill, located 65km to the south-east, and nearby Cockburn. Honeymoon's fortunate geographical location ensures security of power will be provided by the national grid.

Upgrading Honeymoon's nameplate production to 2.45 Mlbs U308 required the negotiation of a new high voltage connection agreement, where additional transformers and other voltage control equipment are required at the connection and destination points.

Wellfield Design Optimisation

Honeymoon's wellfields have been planned over the mineable resource. Wellfield pattern radii are varied to suit the orebody morphology and achieve an economic wellfield development cost-per-pound of uranium.

A detailed review of the high-grade Historic Wellfields has revealed that of the existing near-mine Wellfields A B and C, only 28% (0.7 Mlbs) of the total uranium resource was produced.2 The findings show that the previous wells were constructed with standard water supply well technology which failed to accurately target the mineralised horizons. The primary reason for the incomplete leaching of the basal sand resource is that wellfields had been constructed using methods applicable to agricultural water supply wells. Such designs comprised PVC Pipe installed to the top of the approximate mineralisation. The well was then drilled to depth and a stainless-steel mesh screen was telescoped into the approximate position of the mineralisation (Figure 1).

Honeymoon's wellfields are now designed with a very precise production zone that directs the injected leach solution into contact with the target ore horizons. The opening between the well and the ore horizon is precisely cut (under-reamed) out of a sealed PVC bore casing. This well design is standard In-Situ Recovery technology used globally, representing a significant enhancement over the previous the previous wellfields (Figure 2).

2 Estimates extracted from the Resource Block Model reported in Boss Energy ASX Release 25 February 2019.

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Figure 1: Specialist ISR Well Design planned for Honeymoon compared to the Agricultural water supply well construction used in historic wellfields A, B and C. Mineralisation is now mapped, resulting in precise screen intervals and improved fluid controls.

Screens will now be optimally placed across all uranium mineralisation with precise intervals, allowing uranium mineralisation to be mapped in detail before screened intervals are selected. A more consistent wellfield design will completely address the uranium mineralisation over the historic wellfield patterns A, B and C.

Figure 2a Historic Wellfield Design. Well screens and leached zone failed to address all uranium mineralisation.

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Figure 2b: Optimised Wellfield Design: Well Screens and leached zones completely address uranium mineralisation.

Resource Growth Drilling

The Company's focus on exploration is aimed at increasing Honeymoon's production profile and extending its mine life. The strategy is two-fold:

1. Targeting the greenfields exploration targets to further advance current identified zones of potential high-grade mineralisation; and
2. Upgrading the satellite JORC resources of the Jason's and Gould's Dam Deposits.

Figure 3: Boss' Honeymoon Uranium Project Tenements and Exploration Target Areas, South Australia.

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