Mr. Jeremy Poirier reports

NEXUS ANNOUNCES OPTION TO ACQUIRE CREE EAST PROJECT IN ATHABASCA BASIN

Nexus Uranium Corp. has entered into a letter of intent with Canalaska Uranium Ltd., a TSX Venture Exchange-listed issuer, dated as of Jan. 19, 2024, evidencing the parties' intent to negotiate and enter into an option agreement pursuant to which Nexus will acquire up to a 75-per-cent-interest in the Cree East uranium project located in the Athabasca basin of Saskatchewan, Canada, which is wholly owned by Canalaska.

The Cree East project comprises 17 contiguous mineral claims covering an area of 57,752 hectares (223 square miles) of highly prospective terrain in the eastern Athabasca basin with extensive historical exploration. The project has been extensively explored, with over $20-million in exploration expended since 2006, which has led to the delineation of multiple zones of uranium mineralization associated with graphitic conductors and large hydrothermal alteration halos, both in basement and sandstone environments, at depths ranging from 100 metres to 450 metres below surface.

"The Cree East project represents the last large-scale exploration project located in the heart of the Athabasca basin with the potential for discovery of high-grade unconformity-style uranium mineralization in either basement-hosted like Arrow or sandstone-hosted like McArthur River or Cigar Lake," commented Jeremy Poirier, chief executive officer of Nexus Uranium. "We are able to leverage the extensive historical data set which not only significantly expands our understanding of the project but also allows us to expedite our exploration plans to include geophysics and drilling in 2024."

Cree East project summary

The Cree East project is located on the eastern shore of Cree Lake in Northern Saskatchewan, approximately 40 kilometres west-northwest of Cameco's Key Lake uranium mill, and comprises 17 contiguous mineral claims covering an area of 57,752 hectares (223 square miles). The exploration target on the project is a sandstone- or basement-hosted unconformity-type uranium deposit similar to the neighboring McArthur River (sandstone-hosted), Key Lake (sandstone-hosted), Millenium (basement-hosted) and Phoenix (sandstone-hosted).

The project has seen extensive historical exploration dating back to the early 1970s, with over $20-million expended since 2006, which included multiple phases of geophysics (airborne versatile time-domain electromagnetic, audio-frequency magnetotellurics, and ground induced polarization-resistivity and moving-loop TDEM surveys) in addition to 34,473 metres of drilling in 91 holes. Exploration to date has delineated multiple zones of uranium mineralization associated with graphitic conductors and large hydrothermal alteration halos. The uranium is found in basement and sandstone environments, at depths ranging from 100 metres to 450 metres below surface. Two high-priority exploration targets have been identified, zone A and zone B, where uranium has been discovered above and below the unconformity, at approximately 400 metres depth.

The technical content of this news release has been reviewed and approved by Warren D. Robb, PGeo (British Columbia), a director and vice-president, exploration, of Nexus Uranium and a qualified person under National Instrument 43-101.

Transaction terms

Pursuant to the letter of intent, the company will have 30 days from the date of the letter of intent to conduct its due diligence investigation regarding the project and will have an exclusive dealing period of 60 days from the date of the letter of intent, during which the parties will use commercially reasonable efforts to negotiate the terms and conditions of the option agreement.

The option agreement will provide that Nexus may acquire up to a 75-per-cent interest in the project through staged cash, share and work commitments, as follows: (a) to earn an initial 40-per-cent interest in the project, the company will (i) pay to Canalaska $750,000 in cash; (ii) issue to Canalaska that number of common shares of Nexus as will be equal in value to an aggregate of $3-million; and (iii) incur $5.5-million in exploration expenditures within the first 18 months from the effective date of the option agreement; (b) to earn an additional 20-per-cent (for a total of 60 per cent) interest in the project, the company will additionally (i) pay to Canalaska $1-million in cash; (ii) issue to Canalaska that number of common shares as will be equal in value to an aggregate of $3-million; and (iii) incur $6.5-million in exploration expenditures within the following 24 months; and (c) to earn an additional 15-per-cent (for a total of 75 per cent) interest in the project, the company will additionally (i) pay to Canalaska $1.25-million in cash; (ii) issue to Canalaska that number of common shares as will be equal in value to an aggregate of $4-million; and (iii) incur $7-million in exploration expenditures within the following 24 months.

The option agreement will further provide that the parties will be deemed to have entered into a joint venture arrangement in the following cases: (a) if Nexus has earned the 40-per-cent interest but has not earned the 60-per-cent interest in accordance with the option agreement; (b) if Nexus has earned the 60-per-cent interest but has not earned the 75-per-cent interest in accordance with the option agreement; or (c) if Nexus has earned the 75-per-cent interest in accordance with the option agreement.

The option agreement remains subject to the approval of the Canadian Securities Exchange (the CSE). All common shares issued under the option agreement will be subject to an escrow agreement of up to 12 months and in accordance with Canadian securities laws.

About Nexus Uranium Corp.

Nexus Uranium is a multicommodity development company focused on advancing the Wray Mesa uranium-vanadium project in Utah in addition to its precious metals portfolio that includes the development-stage Independence mine located adjacent to Nevada Gold Mine's Phoenix-Fortitude mine in Nevada, the Napoleon gold project in British Columbia and a package of gold claims in Yukon. The Wray Mesa project covers 6,282 acres within the heart of the prolific Uruvan mining district in Utah and has extensive historical drilling of over 500 holes defining multiple mineralized zones. The Independence project hosts an M&I (measured and indicated) resource of 334,300 ounces of gold (28 million tonnes at 0.41 gram per tonne gold) and an inferred resource of 847,000 ounces (nine million tonnes at 3.22 g/t gold) of gold with a substantial silver credit. A 2021 preliminary economic assessment (PEA) outlined a low-cost heap leach operation focusing on the near-surface resource with total production of 195,443 ounces of gold at an all-in sustaining cost of $1,078 (U.S.) per ounce of gold. The Napoleon project comprises over 1,000 hectares and is prospective for multiple forms of gold mineralization, with exploration in the area dating back to the 1970s with the discovery of high-grade gold. The Yukon gold projects comprise almost 8,000 hectares of quartz claims prospective for high-grade gold mineralization with historical grab sampling highlights of 144 g/t gold.

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