Mr. William Sheriff reports

YEAR END LETTER TO SHAREHOLDERS

Nuclear Fuels Inc. has stated, on behalf of the board of directors and management, that we thank you for your support throughout our first year of business. It has been a busy year with the completion of the reverse takeover of a publicly traded company providing us with the opportunity to become a Canadian Securities Exchange listed company in July. This, in combination with the opportunistic expansion of our uranium portfolio in Wyoming, while still maintaining a clear focus on the Kaycee project, has demonstrated some of our key strengths. We are quickly becoming a recognized force in a market embracing uranium and nuclear energy.

As we have seen, the world is supporting nuclear fuel as a clean, reliable and safe, zero-carbon fuel source in the United States. This is combined with a growing demand for a reliable baseload power.

We see the shift toward nuclear energy as a power source, fuelled by the need for uranium, as a multidecade cycle. And within these factors, we believe our focus on in situ recovery (ISR) amenable exploration projects, highlighted by the district-scale Kaycee project in Wyoming, provides the company strategic advantages in the uranium sector. ISR technology extracts uranium in a non-invasive process through the use of groundwater and oxygen, coupled with a proven ion exchange process, to recover the uranium.

Our arrangement at the Kaycee project is unique and provides EnCore Energy with a provisional back-in right to own 51 per cent of the project in exchange for 2.5 times our exploration expenditure upon achieving certain resource development goals. This is a unique business opportunity for a junior exploration company like Nuclear Fuels to advance toward resource development goals with a pathway for possible production as a minority partner with an established leading domestic ISR production company. If exercised, this back-in right would provide Nuclear Fuels with significant cash to advance its portfolio of uranium projects, allow the company to graduate to producer status and retain a significant interest in Kaycee, enjoying its pro rata share of possible earnings resulting from potential production.

The Kaycee project was specifically selected as our key asset for uranium exploration due to the potential to encounter multiple sandstone formations in the underexplored western region of the Powder River basin. While the eastern region has seen numerous operators successfully extracting uranium over the years, the western region has been relatively ignored since the early 1980s due to a fragmented land position. After more than a full year of dedicated land work, the company has consolidated over 35,000 acres of surface and mineral rights covering a trend of over 30 miles with more than 110 miles of mapped roll-fronts. Our initial drilling program has been designed to confirm and expand upon known historic uranium resources.

We have experienced better-than-expected initial drilling results at the Kaycee project and have been extremely fortunate to have enjoyed favourable weather conditions which have allowed us to have an extended drilling season. In addition to releasing our initial successful drill results we expect additional results to be available in the new year. We also have been working to secure additional minerals claims and look forward to expansion of our Wyoming holdings in the new year.

We want to thank our neighbours, ranchers and lessors around the Kaycee project, along with our employees, directors and key contractors for their commitment to Nuclear Fuels. We also want to thank you, our shareholders, for your continuing support, your confidence and above all for your trust. On behalf of the board of directors and management we wish you and your family a very merry Christmas and happy holidays. We also extend our wishes for a 2024 full of opportunity, good health and happiness.

William M. Sheriff, chairman

Michael Collins, chief executive officer

About Nuclear Fuels Inc.

Nuclear Fuels is committed to aggressive exploration of district-scale in situ recovery (ISR) uranium projects in proven and prolific jurisdictions. Focused on its priority Kaycee project, located in Wyoming's Powder River basin, the company's goal is to advance the project onto a path to production. With existing historic resources through a 33-mile trend, over 110 miles of mapped roll-fronts and 3,800 drill holes, Nuclear Fuels has secured the district under one company's control for the first time since the early 1980s. Nuclear Fuels also provides a unique model for development of its other uranium projects and has established a pipeline of future opportunities in known uranium jurisdictions.

We seek Safe Harbor.