Mr. Paul Goranson reports

ENCORE ENERGY PROVIDES UPDATE ON THE SOUTH TEXAS ALTA MESA ISR URANIUM CENTRAL PROCESSING PLANT AND WELLFIELD

EnCore Energy Corp. has provided an update from the south Texas Alta Mesa in-situ recovery (ISR) uranium central processing plant (CPP) and wellfield. Upgrades and refurbishments continue to advance as planned and on schedule for the 2024 resumption of uranium production (1). The company also announces further positive results from the wellfield delineation drill program and a continuing advancement of the newly discovered mineralized zone at the Alta Mesa wellfield. Site and production resumption work at the Rosita ISR uranium central processing plant and wellfield (Rosita CPP) also remains on schedule for 2023 production.

The Alta Mesa ISR uranium central processing plant (Alta Mesa CPP) is advancing toward a restart of production and presently completing minor scheduled renovations with equipment upgrades and refurbishments under way. A thorough equipment evaluation determined 90 per cent of the piping and valves are operational with limited maintenance requirements. EnCore is managing all refurbishments on site where feasible to pro-actively manage supply chain risks and costs. Longer lead time for non-critical supplies are ordered as part of supply chain management to ensure plant production start-up timelines are well managed. Staffing of key management positions at Alta Mesa started in earnest in Q1 2023 followed by the recruitment of an operations team experienced in south Texas ISR operations.

Paul Goranson, EnCore's chief executive officer, added: "The EnCore operations team has made steady progress in restoring the Alta Mesa CPP towards a 2024 restart of production while also installing the production authorization area (PAA-7) wellfield. EnCore's management team has dealt with similar start-up challenges in the past, and we have been very realistic about anticipated cost increases and challenging work force recruitment. We have been strategic in our efforts to recruit skilled management and operators with previous experience at the Alta Mesa CPP and wellfield. Our strategy also included building a skilled team to successfully expand our activities across our portfolio of ISR uranium projects."

There are currently eight drill rigs in full operation at the Alta Mesa wellfield, increased from six rigs as wellfield delineation and completion has progressed. The wellfield drilling operations, delineating the roll front mineralization within production authorization area 7 (PAA-7), which commenced in March, 2023, are advancing rapidly, with 192 holes drilled since the company's previous update. In total, 272 drill holes have been completed through Aug. 21, 2023. A previously producing mineralized Middle C sand, extracted through PAA-3, was discovered within PAA-7. Continued drilling within PAA-7 has returned positive results of Middle C sand mineralization in 17 holes, within PAA-7, with grade thickness (GT) values ranging from 0.2 to 0.792 in seven of the holes announced in this release. Continued drilling along trend is expected to expand and delineate this new mineralized sand, and is anticipated to increase the overall mineralization within PAA-7.

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, 33 holes have been cased with five holes completed. Two drill rigs are currently casing, with one drill rig focused on completion activities. An additional drill rig will be moving to completion activities in the coming weeks.

Significant Alta Mesa wellfield drilling program highlights are provided in an attached table.

Alta Mesa CPP and wellfield

The Alta Mesa CPP and wellfield hosts a fully licensed and constructed ISR uranium plant, located on 200,000-plus acres of private land in the state of Texas. Alta Mesa will be EnCore's second-producing location following resumption of uranium production at the Rosita CPP scheduled for 2023.

Total operating capacity is 1.5 million pounds (lb) 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 include:

• The Alta Mesa CPP is EnCore's third fully licensed production facility, along with Rosita and Kingsville Dome CPPs, 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.
• Advancing the Alta Mesa CPP, in conjunction with planned production in 2023 at the Rosita CPP, will cement EnCore Energy's position as the early leader in ISR uranium production in 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 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 or Rosita on a feasibility study of mineral reserves demonstrating economic and technical viability. The production decision is based on known past 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. In addition, the mineral resource at Alta Mesa includes inferred resources, which are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. The company has determined to proceed with a production decision based on past operations at Alta Mesa and Rosita, including past ISR operations in the known mineral resource areas.

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, America's Clean Energy Company, is committed to providing clean, reliable and affordable domestic nuclear energy by becoming the next United States uranium producer in 2023. EnCore solely utilizes ISR for uranium extraction, a proven technology co-developed by the leaders at EnCore Energy. ISR extracts uranium in a non-invasive process using natural groundwater and oxygen, coupled with a proven ion exchange process, to recover the uranium. Uranium production is planned at EnCore's licensed and past-producing south Texas Rosita processing plant in 2023, and at its licensed and past-producing south Texas Alta Mesa processing plant in 2024.

Future projects in EnCore's production pipeline include the Dewey-Burdock project in South Dakota and the Gas Hills project in Wyoming, along with significant uranium resource endowments in New Mexico providing long-term opportunities. 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 diligently works to realize value from other owned assets, including its proprietary uranium database that includes technical information from many past-producing companies, from its various non-core assets and by leveraging its ISR expertise in researching opportunities that support the use of this technology as applied to other metals. EnCore is also committed to working with local communities and indigenous governments to create positive impact from corporate developments.

(1) Encore news release dated May 18, 2023.

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