ENRG Elements Limited provided an update on the current drilling program at the company's Agadez Uranium Project ("Agadez", "Project"), which continues to deliver encouraging results, confirming mineralisation across the drill campaign area and with mineralisation remaining open in multiple directions. The drilling program focused on four key areas across the Terzemasour 1 ("TER 1") license, being Takardeit Centre, the location of the current Inferred Mineral Resource Estimate ("MRE") ("Takardeit Deposit"), Takardeit East, Takardeit North and Takardeit North-West (the "Takardeit Prospects"). As announced, the Takardeit Deposit was recently updated from JORC 2004 to JORC 2012 guidelines, which confirmed an Inferred MRE of 16.5Mt at a grade of 295ppm eU3O8 for 10.7Mlbs (at 150ppm cut-off), being an increase in grade of 27.8%, with a minor reduction in contained metal.

Agadez hosts similar geology to Orano SA's Cominak/Somair and Imouraren mines and deposits held by Global Atomic Corporation and GoviEx Uranium. The ~5,500m mud rotary and diamond drilling program, commenced in June 2022, shortly after the Company completed the acquisition of the Agadez Project. The program was intended to infill historic drilling and expand the Takardeit MRE, targeting near surface uranium mineralization proximal to the Takardeit Deposit.

The shallow drilling campaign at Takardeit Centre and the Takardeit Prospects has been completed, with 105 holes totalling 4,659m, at an average depth of 44m as well as 5 diamond core holes totalling 150m, at an average depth of 30m. The campaign confirmed that mineralisation, occurring from surface to ~40m, extends beyond the current MRE area and is open in multiple directions. Significant downhole gamma results at Takardeit Centre, includes: KPM0048 ­ 2m at 2,266ppm eU3O8 from 22.7m; and KPM0030 ­ 2m at 1,562ppm eU3O8 from 28.2m; and KPM0018 - 2m at 1,172ppm eU3O8 from 24.7m.

The drilling at Takardeit East and Takardeit North-West identified mineralised systems that may potentially be extensions of the Tarkadeit MRE. The program only included four regional deep holes (200m maximum depth), targeting mineralisation within the Carboniferous strata in TER 1. These drill holes are still being evaluated to identify geological and mineralisation continuity with respect to historical deep regional drilling completed by Paladin Energy Limited. The Company anticipates an update to the Takardeit MRE, following receipt of assay results which are expected in fourth quarter of current year 2022.

Drilling Program Results: Takardeit Centre The first phase of shallow drilling at Takardeit Centre was conducted with the intention of confirming and extending the mineralisation previously delineated within the Jurassic formation (Tchirezrine I and Mousseden). A total of 56 mud rotary holes were drilled for 2,864m, with spacing varying from 150 to 400m, at an average depth of 51m and a maximum depth of 70m. The majority of the drilling was positioned across the Takardeit Deposit to fill gaps in the current drill pattern (100 to 150m spacing) while a number of holes were drilled on the periphery to identify extensions of mineralisation.

The 29 holes (52%) drilled at the Takardeit Centre show uranium mineralisation above 100ppm eU3O8, at a thickness over 1m. The average grade, utilising a 100ppm eU3O8 and greater than 1m cut-off, is 343ppm with an average thickness of 1.8m. In places, mineralisation reached grades of up to 2,266ppm eU3O8 over 2m (KPM0048).

The mineralisation at Takardeit Centre is distributed in two main stratigraphic horizons, mainly hosted within felspathic sandstone, locally more clayey and carbonaceous, attributed to the Tchirezrine I (Wagadi Series) and Mousseden (Goufat Series) Jurassic Formations. The mineralisation is associated with multistorey channel systems, ranging from 100 to 500m in width, generally northeast to southwest trending, dipping gently a few degrees (2 to 5 degrees maximum) to the southwest. The initial depth of the mineralised horizons ranges from the surface in the north to about 40m to the south, stretching over 3km in a southerly direction.

The motley shaly sandstone of Teloua 3 formation (Goufat Series) generally constitutes the footwall of the mineralisation. These sandstones can locally host mineralisation. A total of 23 mud rotary holes were drilled for 825m, at an average depth of 36m, and to a maximum depth of 50m.

Drill holes were positioned to fill a number of gaps in the historic drilling pattern in order to test the continuity of the mineralisation hosted in the Tchirezrine I, Mousseden and Teloua 3 formations and its extension to the north and south. Holes spacing varied from 100 to 400m. The NGM Resources Limited ("NGM") historic drilling consisted of a limited number of scout holes and three east-west profiles 150m apart, with holes spaced 25 to 100m along the profile, positioned on a large airborne radiometric anomaly.

Mineralisation was intersected in seven of the recent holes (34%) located mainly in the southern half of the prospect. In five of these holes, the mineralisation is hosted in fine to medium-grained sandstone, locally more clayey and silty, at the base of the Mousseden formation. The average grade is 201 ppm at a 100ppm eU3O8 and greater than 1m cut-off, with a 2.6m average thickness.

The most significant mineralised interval has been recorded in KPM0063 with 317ppm eU3O8 over 4m thickness. The two anomalous holes in the Tchirezrine I (KPM0059 & 0057) are the most southerly holes, thus opening up the mineralisation to the southerly direction. Takardeit North None of the five holes drilled within 500m of the anomalous historic hole IND001 (12m@ 307ppm eU3O8) contained any significant mineralisation.

The conclusion drawn is that the current drill spacing in this area is too wide to reasonably define what is believed to be palaeochannel mineralisation. A follow-up programme is expected to be planned to better test this area.