Mr. Paul Goranson reports

ENCORE ENERGY PROVIDES UPDATE ON SOUTH TEXAS URANIUM OPERATIONS

EnCore Energy Corp. has provided an update on the company's South Texas operations which are advancing on schedule and providing exceptional drilling results to support future planned production.

Highlights include:

• The Alta Mesa in situ recovery (ISR) uranium central processing plant (CPP) upgrades and refurbishments are advancing on schedule for the planned early 2024 resumption of uranium production.
• The Alta Mesa project wellfield drilling is providing increasingly positive high-grade results from the wellfield delineation drill program.
• Uranium production from the Rosita CPP which commenced Nov. 21, 2023, continues to meet projected start-up production levels. Additionally, the grand opening at the Rosita CPP is scheduled on site for Feb. 6, 2024.

Paul Goranson, EnCore Energy's chief executive officer, stated: "Our South Texas operations continue to advance on schedule due to our successful planning to ensure all necessary supplies and equipment were secured well in advance of installation. With a full complement of people, materials and equipment in the field, we are well positioned to make our timelines at our second production facility, Alta Mesa. Additionally, the wellfield drill results are some of the best grades we have encountered to date. These results support our plan to accelerate and expand the drill program at the Alta Mesa uranium project."

Alta Mesa CPP development update

At the Alta Mesa CPP, EnCore has met most of the key objectives for the refurbishment of the processing circuits necessary for the planned early 2024 restart. Work remaining includes final inspection of the ion exchange columns, testing the precipitation tanks, completing tie-in of the scrubber system, and installation and testing of the process circuit instrumentation. The yellowcake drying circuit upgrades are advancing with the filter press support infrastructure on site. Refurbishment and testing of the yellowcake drying system are progressing with that work scheduled to be completed just prior to the anticipated production restart timelines.

Within production authorization area 7 (PAA-7), EnCore is installing injection and production wells in the wellfield, has completed installation of the electrical transmission lines necessary for initial start-up, and is continuing to install the pipelines to connect the wellfield to the Alta Mesa CPP. All necessary equipment for the start-up of production in the PAA-7 wellfield has been received or has been ordered with a confirmed delivery schedule.

Alta Mesa wellfield drilling update

The wellfield drilling operations, delineating the roll-front mineralization within PAA-7, which commenced in March, 2023, are advancing rapidly with 78 holes drilled since the previous update (Nov. 20, 2023). In total, 445 drill holes have been completed through Jan. 4, 2024. There are currently six drill rigs in full operation at the Alta Mesa CPP and wellfield, with contracts pending for three additional rigs.

Further refined delineation drilling within the PAA-7 continues to establish the exact pattern of injection and recovery wells from which to maximize production efficiency. To date, 99 holes have been cased with 36 injection and production wells completed. Two drill rigs are currently casing wells and one drill rig is focused on well completion activities. An additional drill rig will be moving to well completion activities in the coming weeks.

In addition to increasing numbers of drill holes and wells with grade thicknesses (GT) over one in PAA-7, the Middle C unit, which was found to overlie PAA-7 in 2023 (news release May 18, 2023) continues to exhibit unexpected significant grade, and further drilling along the Middle C trend is increasing the overall mineralization within PAA-7. Grade thickness is grade percentage U3O8 (triuranium octoxide) multiplied by the thickness of the mineralization. ISR recoverable uranium with a grade thickness of greater than 0.3 is considered suitable for inclusion in a wellfield.

Alta Mesa ISR uranium CPP and wellfield

The Alta Mesa CPP and wellfield hosts a fully licensed and constructed ISR uranium plant, located on over 200,000 acres of private land in the state of Texas. Alta Mesa will be EnCore's second producing location and work continues to complete the pending joint venture (JV) transaction with Boss Energy (Dec. 6, 2023) whereby Boss Energy will acquire a 30-per-cent interest in the EnCore-managed JV for consideration of $60-million (U.S.) and a placement into EnCore shares of $10-million (U.S.).

Total operating capacity at the Alta Mesa CPP is 1.5 million pounds U3O8 (uranium) per year. The Alta Mesa CPP historically produced nearly five million lb U3O8 between 2005 and 2013, when full production was curtailed as a result of low uranium prices.

Alta Mesa CPP and wellfield highlights:

• The Alta Mesa CPP is EnCore's third fully licensed production facility, along with the Rosita CPP and Kingsville Dome CPP, all located in the business-friendly state of Texas. There are only 11 licensed and constructed uranium production facilities in all of the United States.
• Alta Mesa CPP's operations are located on private land, with 100 per cent of minerals privately owned, and in a supportive jurisdiction with primary regulatory authority residing with the State of Texas.
• The Alta Mesa CPP utilizes well-known ISR technology to extract uranium in a non-invasive process using natural groundwater and oxygen, coupled with a proven ion exchange process, to recover the uranium.

The company advises that it is not basing its production decisions at Alta Mesa CPP or Rosita CPP on a feasibility study of mineral reserves demonstrating economic and technical viability. The production decision is based on known past in situ recovery (ISR) and processing operations at these two production facilities and surrounding lands. However, the company understands that there is increased uncertainty, and consequently a higher risk of failure, when production is undertaken in advance of a feasibility study. The company has determined to proceed with a production decision based on past operations at the Alta Mesa CPP and Rosita CPP, including past ISR operations in the known mineral resource areas.

Dr. John M. Seeley, PhD, PG, CPG, EnCore's manager of geology and exploration, and a qualified person under National Instrument 43-101, has reviewed and approved the technical disclosure in this news release on behalf of the company.

About EnCore Energy Corp.

EnCore Energy, America's clean energy company, is committed to providing clean, reliable and affordable domestic nuclear energy as the newest uranium producer in the United States. Uranium production commenced at EnCore's licensed and past-producing South Texas Rosita central processing plant (CPP) in November, 2023, with work under way for a planned 2024 restart of uranium production at its licensed and past-producing South Texas Alta Mesa CPP. The EnCore team is led by industry experts with extensive knowledge and experience in all aspects of ISR uranium operations and the nuclear fuel cycle. EnCore solely utilizes in situ recovery (ISR) for uranium extraction, a well-known and proven technology co-developed by the leaders at EnCore Energy. In situ recovery extracts uranium in a non-invasive process using natural groundwater and oxygen, coupled with a proven ion exchange process, to recover the uranium.

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