Mr. William Sheriff reports

ENCORE ENERGY PROVIDES 2023 YEAR END LETTER

EnCore Energy Corp. has provided the company's year-end letter thanking shareholders for their support through a transformational year at America's clean energy company. With a clear path toward our objective to be a domestic uranium producer in the United States, EnCore achieved a successful 2023. Our commitment to the selection and advancement of production-ready projects combined with strategic deployment of capital and the development of a multitalented team has kept us quite busy this year. We are proud to successfully realize all our 2023 objectives and are now gearing up for a promising 2024.

At the end of 2023, we find EnCore operating at a time when the world is embracing nuclear fuel as a clean, reliable and safe zero-carbon fuel source with unparalleled bipartisan support in the United States. This, combined with geopolitical tensions, has highlighted the essential need for domestic uranium in the United States to fuel energy needs and the growing demand for a reliable and affordable baseload power. Our timing to push accelerate our path forward has worked in our favour.

We see the shift toward nuclear energy as a power source, increasing the need for uranium, as a multidecade cycle. We also see the next four to five years as an incredible and unique opportunity for projects utilizing in situ recovery (ISR) technology for the extraction of uranium, which leverages the depth of talent and experience of our team. This unique opportunity comes from the agility of the ISR business with permitting times, capital costs, operating costs and reclamation costs all considerably reduced in comparison with potential new conventional uranium mining operations. Focusing our production strategy on ISR projects in Wyoming and Texas that are NRC (Nuclear Regulatory Commission) agreement states provides for greater certainty and shorter permitting timelines due to decades-long experience of regulating ISR uranium recovery technology. The operational flexibility provided by ISR uranium recovery allows us to leverage our licensed and permitted processing plants to expand production as nuclear energy demand increases.

For 2023, our successes have been many, and in reflection, are incredible milestones to achieve in one year. January, 2023, commenced with our $7-million (U.S.) sale of uranium to the U.S. government, the highest price of all successful bids, and we launched a new listing on the NYSE American stock exchange. This was followed by the acquisition of the Alta Mesa ISR uranium project and central processing plant (CPP) in South Texas that included a licensed and permitted central processing plant, significant mineral resources, and one of the largest uranium mineral properties in the United States with approximately 200,000 acres of mineral rights.

We end the year with one of our most significant milestones, the restart of uranium production at the Rosita CPP, accomplished 20 months after its renovation commenced. Production at the Rosita CPP marks the first production in Texas in over a decade. We then wrapped up the year with the announcement of our $70-million (U.S.) transaction for a 70/30 joint venture (JV) on the Alta Mesa ISR uranium project and CPP with Boss Energy Ltd. The arrangement with Boss as a 30-per-cent minority partner on only one of our production assets allows us to use the proceeds of $60-million (U.S.) to aggressively advance project timelines across the company. Finally, we announced new listing on Nasdaq.

Yet in between these huge milestones, we were also able to complete a great deal of work that will assist in our future endeavours as America's clean energy company.

We successfully implemented our non-core asset disposition objective with the sale of the Marquez-Juan Tafoya for $5-million and an 18.5-per-cent stake of the acquiring company. We also sold the Kaycee project in Wyoming for 19.9-per-cent stake in a separate company. Under the terms of the sale of the Kaycee project we retain a back-in right, at our discretion, for 51-per-cent ownership and the right to advance the Kaycee project into production.

We acquired all of the proprietary prompt fission neutron (PFN) technology and equipment, including related exclusive intellectual property, and global licensing rights, providing EnCore with a clear competitive advantage by providing real-time assays for uranium that is not suited to conventional coring and assay methods. We then arranged a strategic collaboration to expand this technology application to Australia to grow this business.

Since 2021, EnCore has entered into four uranium sales agreements with the most recent announced in February, 2023. We continue to see utilities in the United States looking to domestic uranium producers as a means to mitigate the supply chain risks resulting from continuing geopolitical uncertainty. Because of our demonstrated results, strong management team and multiple production sources with minimal permitting risk, we are considered a go-to supplier as nuclear utilities navigate the changing uranium market. EnCore is committed to building a balanced portfolio of sales contracts with a portion of its production in defined agreements to ensure stability of operations while retaining a significant portion of production set aside to ensure participation in the upside of a rising spot market.

We also delivered our first uranium into one of the uranium sales agreements. This delivery of 200,000 pounds U3O8 (triuranium octoxide) represents the first portion of the annual deliveries into the five-year agreement that covers two million pounds of uranium with significant delivery flexibility for market-related pricing. We successfully acquired uranium under favourable pricing terms in 2022 from a third party and delivered it into this agreement in 2023 using current spot market pricing indicators to establish the sales price well above our purchase price.

Other highlights include entering into a controlled equity offering (at-the-market (ATM)) of $70-million (U.S.), targeted for accretive transactions. This became important when EnCore acquired its third uranium processing plant, the Alta Mesa project and CPP, for $120-million (U.S.) which included $60-million (U.S.) in cash and a $60-million (U.S.) convertible note. Using strategic deployment of capital from the ATM, we successfully reduced our debt from $60-million (U.S.) to $20-million (U.S.) at an average price of $3.23 (U.S.) per share as compared with a $2.91 (U.S.) per share conversion price which resulted in our shareholders saving significant dilution had the debt been fully converted prior to repayment. We expect the current debtholder to convert the balance of the debt in the near term.

Once the JV transaction on the Alta Mesa project and CPP completes, scheduled for early 2024, EnCore will hold $70-million (U.S.) in additional cash plus the potential proceeds from any possible sale of uranium borrowed, as part of the JV transaction, and sold into market-related contracts. This allows EnCore, in 2024, with the financial capacity to significantly accelerate our uranium production pipeline across South Texas including the advancement of multiple satellite operations. In addition, our strong cash position paves the way for aggressive expansion, consolidation and development of our Dewey Terrace and Dewey-Burdock projects straddling the Wyoming-South Dakota border, and it enables the company to quicken development of its Gas Hills project in Wyoming.

Yet through all of this, EnCore is still in the very early days of its journey, and this presents a compelling opportunity for our investors and our team to share in our exciting path forward. We anticipate maintaining our momentum into 2024 by advancing our growth strategy, which we expect will continue to demonstrate results to the broader investment community and public. Expanding our U.S. trading and awareness strategy is a 2024 goal, commenced effectively in 2023. And as you may have gathered from our history of acquisitions and mergers, we see abundant opportunity for growth and consolidation in the industry. With the right team and resources, it is our belief that EnCore is well positioned for future growth and expansion.

Our first major milestone in 2024 is the planned restart of our second past-producing plant, the large Alta Mesa CPP and wellfield, in South Texas. Our objective is to continue to expand production of uranium to meet our objectives for production levels going forward.

Working closely together, our board, management and operational staff are motivated to continuously improve the quality of our processes and work outcomes. The entire team shares common values that drive our successes, and we are all passionate about the job of making EnCore the best choice for those who want exposure to a world-class, lower-risk domestic source of uranium, fuelling the future as America's clean energy company.

EnCore also pro-actively collaborates with the communities surrounding our project, generating much needed employment and business opportunities. We are excited to share our new initiative, starting in 2024, which will see EnCore embark on an education-focused program to enhance education centred around in situ recovery technology, a growing industry with many opportunities for our youth. Get the Edge from Education, EnCore's education society, is our way of both giving back to our communities of interest while simultaneously building the work force of the next generation.

We are aware of how our initiatives can fundamentally transform the lives of local communities and stakeholders, and we work hard to strengthen our relationship with local partners and suppliers. In addition to this commitment, in 2023 EnCore sponsored the senior's Christmas dinner in Edgemont, S.D., and in Corpus Christi, South Texas. We have made a generous donation to Mirador Retirement Community, a non-profit organization, and its Covenant Fund while also sponsoring their holiday celebration. The Covenant Fund supports addressing the financial issues related to seniors outliving their income and ability to pay for the care they need.

Finally, we would like to thank our employees, directors and key contractors for their commitment to EnCore. We have grown from three employees in 2021 to over 80 employees at this time. It is the hard work, dedication and alignment of our team that enables us to deliver on our goals. 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.

Thank you again from EnCore Energy, America's clean energy company.

William M. Sheriff, executive chairman

William Paul Goranson, chief executive officer

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. 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. Uranium production commenced at EnCore's licensed and past-producing South Texas Rosita central processing plant (CPP) in November, 2023, and at its licensed and past-producing South Texas Alta Mesa CPP in 2024.

We seek Safe Harbor.