Mr. Philip Williams reports

CONSOLIDATED URANIUM ANNOUNCES MINERAL RESOURCE ESTIMATE FOR THE TONY M MINE

Consolidated Uranium Inc. has completed a confirmation drill program and a mineral resource estimate and supporting technical report prepared in accordance with National Instrument 43-101 at the company's 100-per-cent-owned Tony M mine. The technical report was prepared by the independent consulting firm SLR International Corp. and has been filed under the company's profile on SEDAR.

Highlights:

• The mineral resource estimate is based upon a commodity price of $65 per pound of U3O8 (triuranium octoxide) and a cut-off grade of 0.14 per cent eU3O8 (equivalent triuranium octoxide) and is reported as an:
  • Indicated mineral resource of 1,185,000 tons grading 0.28 per cent eU3O8 for 6.6 million pounds contained uranium;
  • Inferred mineral resource of 404,000 tons grading 0.27 per cent eU3O8 for 2.2 million pounds contained uranium.
• The mineral resource estimate for the Tony M mine is consistent with the historic mineral resource estimate previously reported by Energy Fuels Inc. in 2012 when compared using a cut-off grade of 0.10 per cent U3O8.
• Key recommendations from the technical report include:
  • Exploration drilling and underground sampling to investigate the vanadium potential of the deposit based on results from the confirmation drill program which showed the V2O5/U3O8 (vanadium pentoxide/triuranium octoxide) ratio ranges from an average of 1:1 to greater than 17:1 in places;
  • Completion of a preliminary economic assessment (PEA) to consider reopening the Tony M mine (including mineral resource update).

Mineral resources are not mineral reserves and do not have demonstrated economic viability. While the estimate of mineral resources for the Tony M mine is based on the SLR qualified person's judgment that there are reasonable prospects for eventual economic extraction, no assurance can be given that mineral resources will eventually convert to mineral reserves. As of the date hereof, there are no other known environmental, permitting, legal, social or other factors that would affect the development of the mineral resources.

Chairman and chief executive officer Phil Williams stated: "We are very pleased with the results of the confirmation drill program and mineral resource estimate for the Tony M mine. We were attracted to the project not only because it was a past-producing mine with all the infrastructure and permits in place for rapid and low-cost restart when uranium market conditions warrant, but also because of the robust nature of the deposit, which is confirmed by this mineral resource estimate. The indicated mineral resource grade of 0.28 per cent U3O8 ranks among the highest of all U.S. uranium projects. Additionally, we are encouraged by the previously untested vanadium potential, which was highlighted in our drilling. As the only company with guaranteed access to the Energy Fuels White Mesa mill, which has a vanadium recovery circuit, if this potential bears out, it could improve the overall economics of the project. These results confirm the Tony M mine's place in our portfolio as our No. 1 U.S. asset and we look forward to an aggressive program at the project next year, which we expect will advance us towards a production decision."

Tony M mine NI 43-101 technical report on mineral resources

The completion of mineral resource estimate on the Tony M mine, located in eastern Garfield county, Utah, United States, is based upon historical exploration drilling data collected by previous holders of the project and confirmed by the results of a combined rotary and core confirmation drilling program carried out in May and June, 2022, by Consolidated Uranium. The estimated mineral resources, which have been classified in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) definition standards for mineral resources (CIM 2014), are based upon data from 1,678 drill holes, totalling 947,610 feet of rotary and core drilling carried out by previous owners of Tony M and the company. Uranium mineralization at the Tony M project is hosted in the lowermost 35 feet to 62 feet favourable sandstone portion of the Salt Wash member of the Jurassic-age Morrison formation, occurring as a series of generally flat-lying bodies within one of three individual stratiform layers.

The Tony M mineral resource estimate was prepared using a conventional block modelling methodology. A digital geologic model of the lower Salt Wash was developed by SLR to constrain the mineral resource estimate. The mineral resource estimate used regularized block models, the inverse distance squared (ID2) grade interpolation methodology and length-weighted, 1.0-foot, uncapped composites to estimate the uranium (eU3O8) in a three-search-pass approach, using hard boundaries between subunits, ellipsoidal search ranges and search ellipse orientation informed by geology. Average density values were assigned by lithological unit.

A comparison of the historical mineral resource estimate from June 27, 2012 (prepared for previous owner Energy Fuels Inc.), with the 2022 mineral resource estimate using a cut-off grade of 0.10 per cent eU3O8 shows that indicated mineral resources estimate tonnage increased by 190,000 short tons and the grade decreased by 0.02 per cent eU3O8, with a total increase of indicated mineral resources of 80,000 pounds of eU3O8. The inferred mineral resource estimate tonnage decreased by 170,000 short tons and the grade increased by 0.05 per cent eU3O8 with the difference in inferred mineral resources totalling 250,000 pounds of eU3O8. The small differences between the estimates are primarily attributed to:

• A change in mineral resource estimation methodology from grade thickness (GT) contouring to 3-D block modelling;
  • Block modelling tends to overestimate tons while under estimating grade due to smoothing during the grade estimation process, if not properly controlled;
  • Modifications to the 2012 0.01 per cent grade contour used to control horizontal extension of mineralization to allow for more accurate prediction of grade continuity during the block modelling process;
  • Based on limited drilling intercepts, portions of the ML (middle lower) mineralized zone were downgraded from inferred classification and removed from the mineral resource estimate;
• Increase in past production depletion from 177,000 short tons to 258,000 short tons, based on SLR's 2022 reconciliation of past production records.

Assay data from the Consolidated Uranium 2022 confirmation drilling program also highlighted the presence of vanadium mineralization. Results from the eight holes appear to indicate an inverse relationship between the vanadium to the uranium oxide grade, where the higher-grade vanadium is generally associated with the lower-grade uranium mineralization. SLR notes the 2022 V2O5/U3O8 ratio ranges from an average of 1:1 to greater than 17:1 in places and results are comparable with historic reported ratios.

With the additional new 2022 vanadium assay data collected by Consolidated Uranium, SLR revisited the vanadium potential using a regression analysis curve at Tony M and found the 2022 V2O5/U3O8 ratio of approximately 3:1 is in line with historic reported ranges and much higher than the previously accepted ratio of 1.66:1 for the composite bulk samples collected over the period from October, 1982, to January, 1984. SLR opines the use of a vanadium regression curve and equation is an appropriate way to estimate vanadium resource potential in the future; however, the small sample size of the 2022 drilling vanadium values prevents construction of a reliable and accurate vanadium block model or mineral resource estimate until more data are collected to improve confidence and understanding of the vanadium distribution on the property.

SLR has recommended the following work to advance the Tony M mine to the next stage:

• Carry out exploration drilling and vanadium sampling -- drill approximately 75 holes to better define the distribution of vanadium mineralization to increase U3O8 resources and increase inferred mineral resource to the indicated classification;
• Access the underground workings at the mine for the purpose of mapping and sampling for vanadium;
• Prepare a PEA (preliminary economic assessment) for the project, incorporating the results of the proposed uranium and vanadium surface drilling programs and the results derived from the underground sampling program for vanadium.

2022 confirmation drilling program at the Tony M mine project

The surface rotary and core drilling program (previously announced in the company's Feb. 17, 2022, press release) was designed to confirm the results of previous drilling carried out by Plateau Resources, which was the original discoverer and developer of the Tony M mine. The 2022 Consolidated Uranium drilling program was designed to confirm the stratigraphic position of uranium mineralization, the relative thicknesses of mineralized intervals and the range of uranium grades that were encountered in the historical drill holes. The drill program comprised eight combined conventional rotary and core holes with vertical orientation totalling 2,894 feet. Core samples from the Consolidated Uranium drilling were assayed for uranium and vanadium, although a very limited amount of historical data exist for vanadium. The program successfully verified the historic drill results as accurate and true for resource estimation.

Consolidated Uranium's eight holes were drilled with a tricone rotary method (conventional open hole) to the top of the lower rim of the Salt Wash sandstone unit, approximately 400 feet from surface. The rotary drill cuttings were collected at five-foot intervals and the lithologies were recorded by Consolidated Uranium personnel. When the core point was reached (the top of the target horizon), a traditional three-inch core barrel was placed on the drill string to core the entire lower rim of the Salt Wash sandstone. The zones that were cored in 20-foot-long intervals and were measured and marked by Consolidated Uranium personnel and logged for lithology, geotechnical properties and mineralization. The core boxes were stored in a locked warehouse on the Tony M property.

Continuous geophysical logging of all of the Consolidated Uranium drill holes was carried out by Century Wireline Services of Tulsa, Okla., and included natural gamma-ray, conductivity and resistivity data from the boreholes. Core samples were bagged and shipped to American Assay Laboratories in Sparks, Nev., for chemical determinations of U3O8 and V2O5 grades. American Assay is an independent mineral industry analytical laboratory that holds an ISO/IEC 17025 accreditation.

The Century Wireline geophysical probing equipment was calibrated at the U.S. Department of Energy geophysical facility (the Grand Junction test pits) prior to the commencement of drilling and at the conclusion of the program, and a comparison of the results of the calibration runs showed no changes in gamma-ray responses.

The company's QA/QC (quality assurance/quality control) program for the core samples submitted to American Assay was consistent with industry standards and best practices and included the insertion of certified reference materials at three different grade levels (standards) obtained from OREAS North America, unmineralized standards (blanks) and duplicate samples from the core. Collectively, these QA/QC samples comprised approximately 18 per cent of all of the samples (not including the internal control samples that the laboratory used) analyzed by American Assay.

SLR notes that the gamma logging estimates of equivalent uranium grade (per cent eU3O8) for the Tony M project are slightly conservative and underestimate the average U3O8 grade by up to 3 per cent, with some portions of the Tony M deposit underestimated by as much as 6 per cent. The relative difference between chemical and probe assays is not considered material, no correction (disequilibrium ratio of 1:1) to the radiometric data is required, and the data are suitable for resource estimation.

Qualified person

The scientific and technical information contained in this news release regarding the mineral resource estimate was reviewed and approved by Mark Mathisen, who is a qualified person (as defined in NI 43-101, Standards of Disclosure for Mineral Projects). All other scientific and technical information contained in this news release was reviewed and approved by Dean T. Wilton, PG, CPG, MAIG, who is a qualified person (as defined in NI 43-101).

Technical report

A technical report prepared in accordance with NI 43-101 for Tony M has been filed under the company's profile on SEDAR. Readers are encouraged to read the technical report in its entirety, including all qualifications, assumptions and exclusions that relate to the mineral resource. The technical report is intended to be read as a whole, and sections should not be read or relied upon out of context.

Private placement of Virginia Energy Resources Inc.

On Dec. 6, 2022, Consolidated Uranium completed its investment in Virginia Energy in connection with the proposed acquisition by the company of all of the outstanding shares of Virginia Energy pursuant to a statutory plan of arrangement, as previously announced on Nov. 15, 2022. Pursuant to the private placement, the company purchased, on a non-brokered private placement basis, two million Virginia shares at a price of 50 cents per Virginia share, for aggregate consideration of $1-million. The private placement remains subject to the final approval of the TSX Venture Exchange.

About Consolidated Uranium Inc.

Consolidated Uranium was created in early 2020 to capitalize on an anticipated uranium market resurgence using the proven model of diversified project consolidation. To date, the company has acquired or has the right to acquire uranium projects in Australia, Canada, Argentina and the United States, each with significant past expenditures and attractive characteristics for development. Most recently, the company completed a transformational strategic acquisition and alliance with Energy Fuels Inc., a leading U.S.-based uranium mining company, and acquired a portfolio of permitted, past-producing conventional uranium and vanadium mines in Utah and Colorado. These mines are currently on standby, ready for rapid restart as market conditions permit, positioning Consolidated Uranium as a near-term uranium producer.

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