NI 43-101 Report Received With Exploration Recommendations For Red Basin Uranium/Vanadium Property

VANCOUVER - First American Uranium Inc. has received the final draft of its NI 43-101 Report for the Red Basin Uranium/Vanadium Property, an early-stage exploration project located in Catron County, New Mexico. The project, which consists of 26 optioned lode claims totaling ~537 acres (~217 hectares), is ~250 miles (~402 km) north of the only operating uranium mill in America. The project’s region produced 1,194 pounds of U3O8 in the 1950s from ore mined with an average grade of 0.17% U3O8 (McLemore & Chenoweth, 2017). According to the Report, evaluations of the Company’s property from several sources confirm the presence of uranium/vanadium deposits, indicating the potential to become an advanced stage project. Extensive historic exploration on the property includes Gulf Oil Corporation drilling 1,000+ shallow holes and delineating 4 potential ore zones.

The Report’s recommendations to advance the project and support a resource calculation include: an airborne radiometric survey; drilling to confirm historic Gulf Oil data and to test new targets; and environmental baseline studies and an Environmental Assessment (EA) or Environmental Impact Study (EIS).

While the Report does not include a resource estimate for the project, previous historical studies have made non-43-101-compliant resource estimates for the property of between 1.6 and 6.5 million pounds U3O8 (triuranium octoxide). With respect to these historical estimates, a qualified person has not done sufficient work to classify the historical estimates as current mineral resources or mineral reserves, and First American is not treating the historical estimates as current mineral resources. The reliability of the estimates is not known, and sampling and drilling will be necessary to confirm the estimates.

“Receiving this 43-101 report is an important milestone toward advancing our understanding of the Red Basin Uranium/Vanadium Project’s value and for planning our exploration program to help define the project's resource potential,” said Shawn Balaghi, FCEO. “As the report indicates, the project’s location, combined with the extent of past exploration, suggests the Red Basin property is a very attractive project in the making. Timing is also an advantage due to rising demand for carbon-free sources of electricity, geopolitical tension with Russia, and uranium prices reaching 10-year highs.”