Denison Mines Corp. ('Denison' or the 'Company') (TSX:DML) (NYSE:DNN) today filed its Condensed Interim Consolidated Financial Statements and Management's Discussion & Analysis ('MD&A') for the quarter ended September 30, 2021. Both documents will be available on the Company's website at www.denisonmines.com or on SEDAR (at www.sedar.com) and EDGAR (at www.sec.gov/edgar.shtml). The highlights provided below are derived from these documents and should be read in conjunction with them. All amounts in this release are in Canadian dollars unless otherwise stated. View PDF version

David Cates, President and CEO of Denison commented, "Our recent In-Situ Recovery ('ISR') field test results reflect several years of progress made towards systematically de-risking the use of the ISR mining method at the high-grade Phoenix deposit – culminating in the successful, and first of its kind, field test of a commercial-scale well pattern located in the expected first phase of the Phoenix orebody.  Our accomplishments in the field and the laboratory have significantly increased our confidence in the use of the ISR mining method and support our landmark decision to advance the planned Phoenix ISR operation to the Feasibility Study design stage.

With increased interest in the uranium market and a recent lift in both spot and long-term uranium prices, we are encouraged that future utility customers are returning to the market and looking at Denison's Wheeler River project as a potentially viable source of reliable and low-cost future supply.  Taken together with our effective 95% interest in Wheeler River and strong balance sheet, which, as of today, includes 2.5M lbs U3O8 of physical uranium holdings acquired at a price under US$30/lb U3O8, we believe Denison is well positioned to become an intermediate supplier of choice in the second half of the decade at a time when market fundamentals are predicted to be favourable as a result of growing demand for uranium and a relative shortage of advanced low-cost uranium development assets in stable jurisdictions.

Our team is focused on advancing Phoenix in the coming months and years to realize on our vision of becoming the next new uranium producer in the Athabasca Basin region."

HIGHLIGHTS 

• Successful completion of ISR field test activities at Phoenix 
  
  
  
  The initial results of the 2021 ISR field test program ('2021 ISR Field Test') completed at the Phoenix uranium deposit ('Phoenix') include (1) the achievement of commercial-scale production flow rates consistent with those assumed in the pre-feasibility study ('PFS') prepared for the Wheeler River Project ('Wheeler River' or the 'Project') in 2018; (2) the demonstration of hydraulic control of injected solution during the ion tracer test; and (3) the establishment of breakthrough times between injection and recovery wells, spaced 5 to 10 metres apart, that are consistent with the hydrogeological model prepared by Petrotek Corporation ('Petrotek') in 2020 demonstrating "proof of concept". In addition, the Company completed the clean-up phase following the tracer test, demonstrating the ability to remediate the commercial scale well ('CSW') test pattern, reducing tracer concentrations to as low as 4% of peak test levels, with eight days of remediation.
  
  
   
• Advancement of Phoenix to feasibility study ('FS') stage and selection Wood PLC as independent lead author
  
  
  
  In September 2021, the Wheeler River Joint Venture ('WRJV') approved the initiation of an independent FS for the ISR mining operation proposed for Phoenix. The completion of the FS is a critical step in the progression of the project and is intended to advance de-risking efforts to the point where the Company and the WRJV will be able to make a definitive development decision. The Company also selected leading global consulting and engineering firm Wood PLC to lead and author the FS in accordance with Canadian Securities National Instrument 43-101 ('NI 43-101').
  
  
   
• Initiated exploration drilling programs at Wheeler River and Moon Lake South
  
  
  
  In early September, Denison's exploration team initiated diamond drilling exploration programs at Wheeler River, and the Moon Lake South project. Approximately 6,500 m of diamond drilling is planned for Wheeler River, with regional exploration drilling expected to be focused on expanding mineralization encountered in 2020 at K West and M Zone, plus additional exploration drilling at Phoenix Zone A to test the extents of high-grade mineralization encountered in drill hole GWR-045. Moon Lake South is a Denison-operated joint venture with CanAlaska Uranium Ltd., in which Denison holds a 75% interest. Drilling planned for Moon Lake South is expected to consist of 2,400 metres focused on testing geophysical targets. 
  
  
   
• Completed acquisition of 50% of JCU (Canada) Exploration Company, Limited ('JCU') for $20.5 million
  
  
  
  In August 2021, Denison completed the acquisition of 50% of JCU from UEX Corporation ('UEX') for cash consideration of $20.5 million, following UEX's acquisition of 100% of JCU from Overseas Uranium Resources Development Co., Ltd. for $41 million. JCU holds a portfolio of 12 uranium project joint venture interests in Canada, including a 10% interest in Wheeler River, a 30.099% interest in the Millennium project (Cameco Corporation 69.901%), a 33.8123% interest in the Kiggavik project (Orano Canada Inc. 66.1877%), and a 34.4508% interest in the Christie Lake project (UEX 65.5492%).
  
  
   
• Completed the sale of shares and warrants of GoviEx Uranium Limited ('GoviEx) for proceeds of up to $41,600,000
  
  
  
  In October, the Company sold, by private agreement, 32,500,000 common shares of GoviEx, held by Denison for investment purposes, and 32,500,000 common share purchase warrants, entitling the holder of the warrant to acquire one additional common share of GoviEx owned by Denison at an exercise price of $0.80 for a term of up to 18 months. Denison received gross proceeds of $15,600,000 on the sale of the shares and warrants and continues to hold 32,644,000 common shares of GoviEx. If the GoviEx warrants are exercised in full, Denison will receive further gross proceeds of $26,000,000 and will transfer a further 32,500,000 GoviEx common shares to the warrant holders.
  
  
   
  • Recorded significant mark-to-market fair value gains on the Company's long-term investments in uranium 
    
    
    
    During the nine months ending September 30, 2021, the Company acquired 2,400,000 pounds of uranium at a weighted average cost of $36.59 (US$29.62) per pound U3O8 to be held as a long-term investment. Due to significant activity in the uranium spot market in the third quarter, the spot price appreciated from US$32.10 per pound U3O8 to US$43.00 per pound U3O8 resulting in mark-to-market gains for the three months ended September 30, 2021 of $36,138,000 on these uranium investments.