Denison Mines Corp. announced that preparations for its 2016 uranium exploration programs in the Athabasca Basin have commenced and that exploration drilling is scheduled to begin on January 12, 2016. In addition, the Company outlines the highlights of its 2016 financial plan which includes Canadian exploration and evaluation expenditures of approximately $13.0 million and revenue from McClean Lake operations and uranium sales of $5.4 million.

The Wheeler River property is host to the high-grade Phoenix and Gryphon uranium deposits. The Phoenix deposit is estimated to include indicated resources of 70.2 M lbs U3O8 at a grade of 19.1% U3O8. The Gryphon deposit is hosted in basement rock, approximately 3 kilometres to the northwest of Phoenix, and is estimated to contain inferred resources of 43M lbs U3O8 at a grade of 2.3% U3O8.

Exploration activities at Wheeler River during 2016 are expected to focus on numerous unconformity and basement targets in the vicinity of the Gryphon deposit. Recent exploration results have continued to return mineralization in the area surrounding the Gryphon deposit and along the K-North trend, which hosts the Gryphon deposit. The results in this area continue to suggest the potential for the discovery of additional zones of significant uranium mineralization.

The K-North trend includes approximately 6 kilometers of prospective strike, primarily to the south of the Gryphon deposit. In addition, 2016 drilling may test other priority target areas on the property, including the Q Central and O Zone target areas. Taken together, 47,000 metres of exploration drilling is planned at Wheeler River between the winter and summer drill programs, along with geophysical surveys at a total cost of CAD 10.0 million.

Subject to a positive outcome from the PEA, the Company has developed a plan to initiate work on a Prefeasibility Study (PFS), with an approximate budget for 2016 of CAD 2.6 million. Exploration activities in 2016, outside of Wheeler River, will be focused on Denison's high-priority exploration targets located on the Murphy Lake, Crawford Lake and Waterbury Lake properties, and are planned to include ground geophysical surveying and drilling to follow-up on positive results from 2015. At Murphy Lake, a winter drill program of approximately 10 holes is planned to follow-up on the discovery of a new zone of uranium mineralization highlighted by drill hole MP-15-03, which intersected 0.25% U3O8 over 6.0 metres at the sub-Athabasca unconformity.

The Murphy Lake property is located approximately 30 kilometres from Denison's 22.5% owned McClean Lake mill and is contiguous with the northwest boundary of the Company's Waterbury Lake property. Drilling programs for Waterbury Lake and Crawford Lake in 2016 are planned to involve 2,500 metres and 4,400 metres respectively. In addition, geochemical surveying, ground geophysical surveying and drilling are expected to be carried out on other Denison-operated properties where exploration is warranted.

Drill programs are also planned in 2016 for Denison's non-operated joint venture projects, including Mann Lake, Wolly and McClean Lake. The Mann Lake project is operated by Cameco, and the Wolly and McClean Lake projects are operated by AREVA Resources Canada Inc. Taken together, Denison expects to operate and/or participate in a total of 15 exploration programs, of which Wheeler River will continue to be the primary focus. The total budget for these programs, inclusive of the evaluation work planned for Wheeler River to follow up on a positive PEA, is estimated to be CAD 24.6 million.

The McClean Lake mill is operated by ARC and is currently licensed for annual production of 13 million pounds U3O8. The expansion of the mill, from 13 million to up to 24 million pounds of annual U3O8 production capacity, will continue during 2016 and remains fully funded by the Cigar Lake Joint Venture.