Quarterly Operating Update

Yellow Cake, a specialist Group operating in the uranium sector, holding physical uranium (“U₃O₈”) for the long term and engaged in uranium-related commercial activities, is pleased to report its performance for the quarter ended 30 September 2026 (the “Quarter”).

Highlights

Market Highlights

The uranium spot price ended the Quarter at US$89.50/lb, compared with US$84.85/lb at 30 June 2026, an increase of 5.5% over the Quarter. Near-term prices strengthened during July and August before easing slightly during September.

The UxC “3-year Forward Price”, “5-year Forward Price” and “Long-Term Price” ended the Quarter at US$104.00/lb, US$111.00/lb and US$96.00/lb, respectively. These prices represent increases of 3.0%, 2.8% and 2.1%, respectively, since June month-end.

The uranium market remains focused on long-term contracting and reported contracting activity remains below replacement levels. Security of supply concerns are encouraging utilities to secure future uranium requirements. The Company expects further utility contracting, coupled with security-of-supply concerns, to continue to support long-term uranium prices.

Yellow Cake Highlights

As at 30 September 2026, Yellow Cake held 24,374,996 lb of U₃O₈ in storage in Canada and France.

During the Quarter, Yellow Cake’s uranium holdings increased from 23,214,230 lb of U₃O₈ to 24,374,996 lb of U₃O₈ following the delivery, on 11 August 2026, of 1,160,766 lb of U₃O₈ from JSC National Atomic Company Kazatomprom (“Kazatomprom”) at the Orano storage facility in France.

The delivery was pursuant to Yellow Cake’s previously announced exercise of its 2026 uranium purchase option under its agreement with Kazatomprom (the “Framework Agreement”), to purchase 1,160,766 lb of U₃O₈ at a price of US$86.15/lb for a total consideration of US$100.0 million.

On 15 June 2026, Yellow Cake commenced a share buyback programme to purchase up to US$10 million of the Company’s ordinary shares (the “Programme”).

During the Quarter, Yellow Cake purchased a further 467,976 ordinary shares under the Programme and completed the Programme on 10 July 2026.

Under the Programme, Yellow Cake purchased a total of 1,363,976 ordinary shares at a volume-weighted average price of 544.41 pence per share for an aggregate consideration of approximately US$10 million, excluding fees and taxes. Following completion and transfer of the purchased shares into treasury, the Company had 257,243,467 ordinary shares in issue, of which 5,948,259 were held in treasury, and 251,295,208 ordinary shares carrying voting rights.

The value of Yellow Cake’s uranium holdings increased by 10.8% over the Quarter, from US$1,969.7 million as at 30 June 2026 to US$2,181.6 million as at 30 September 2026, reflecting the additional 1,160,766 lb of U₃O₈ delivered during the Quarter and the change in the uranium spot price from US$84.85/lb to US$89.50/lb.[1],[2]

Estimated net asset value per share increased by 5.0% over the Quarter from £6.34 per share as at 30 June 2026 to £6.66 per share as at 30 September 2026. The increase primarily reflects the higher uranium spot price, with a modest contribution from the accretive share buyback, partly offset by foreign exchange movements.[3],[4]

Yellow Cake’s estimated net asset value on 26 October 2026 was £6.65 per share or US$2,231.8 million, based on 24.37 million lb of U₃O₈ valued at a daily spot price of US$89.85/lb and cash and other net current assets of US$41.7 million as at 30 September 2026.[5],[6]

Andre Liebenberg, CEO of Yellow Cake, said:

“The third quarter of 2026 highlighted the continued strength of the uranium market and Yellow Cake’s market position, with spot prices rising 5.5% to US$89.50/lb and longer-term price indicators advancing across the board. While utilities remain focused on security of supply, long-term contracting continues to lag below annual replacement levels, providing strong underlying support for future pricing as utilities return to address uncovered requirements. Long-term fundamentals continue to build momentum, particularly with accelerating progress in SMRs and ‘micro-reactors’, highlighted by the US NRC construction permit for TVA’s Clinch River project and US military deployment plans. New mine developments in Saskatchewan are expected to add supply later this decade, but further investment in production will be needed to meet projected demand growth.

“Against this backdrop, Yellow Cake has shown another period of strategic progress. Following the delivery of 1.16 million pounds of uranium from Kazatomprom in August under our 2026 purchase option, our total physical holdings increased to 24.37 million pounds. The value of our uranium inventory rose 10.8% to US$2.2 billion, while our estimated NAV per share increased by 5%, primarily reflecting higher uranium prices, with a modest contribution from the accretive share buyback programme completed in July.

“The Board continues to closely monitor the disparity between our share price and Net Asset Value. While broader equity market dynamics have influenced our trading valuation, the Board is actively evaluating capital allocation options, including share buybacks, to address this disparity and unlock value, provided such measures do not negatively impact the underlying uranium spot market. We remain committed to taking appropriate steps to restore alignment between our market capitalisation and underlying NAV.

“The long-term fundamentals of the nuclear fuel cycle have never been more compelling. As global energy demand accelerates, spurred by data centre expansions, AI infrastructure and decarbonisation, secure physical uranium supply is increasingly strategic. Yellow Cake remains well-positioned to offer shareholders direct, liquid exposure to an intensifying uranium growth cycle.”

Uranium Market Developments and Outlook

Spot Market

The uranium spot price increased from US$84.85/lb on 30 June 2026 to US$86.45/lb on 31 July 2026, an increase of 1.9%. It rose by a further 3.6% to US$89.60/lb on 31 August 2026, before declining by US$0.10/lb to US$89.50/lb at the end of the Quarter.[7]

Spot transaction volume for the nine months ended 30 September 2026 was approximately 39.5 million lb, around 5% below the 41.7 million lb reported for the comparable period in 2025.[8],[9]

Longer Term Uranium Market

During July, all three longer-term price indicators remained stable: the 3-year Forward Price was US$101.00/lb, the 5-year Forward Price was US$108.00/lb and the Long-Term Price was US$94.00/lb.

During August, the 3-year Forward Price increased to US$104.00/lb, the 5-year Forward Price to US$111.00/lb and the Long-Term Price to US$96.00/lb. All three longer-term price indicators remained stable during September.[10]

The U.S. Energy Information Administration (“USEIA”) distributed the latest version of the Uranium Marketing Annual Report which documents data as of 31 December 2025 for U.S. nuclear utilities as well as suppliers active in the domestic nuclear fuel market. Uranium purchases by U.S. utilities declined during 2025 to 46.9 million lb from the 2024 aggregate of 55.9 million lb while the weighted-average uranium price paid increased from US$52.71/lb (2024) to US$58.46/lb. Canadian uranium remained the largest supply source at 15.2 million lb followed closely by Kazakhstan (13.3 million lb), and Australia (7.1 million lb). Uzbekistan ranked fourth (3.3 million lb). Commercial uranium inventories held by utilities totalled 118.3 million lb, an increase of 3.1 million lb from 2024 while supplier stockpiles aggregated 51.7 million lb, 10.9 million lb greater than 2024.[11]

Nuclear Generation and Uranium Demand

The Chinese government approved the development of eight additional nuclear reactors during a State Council executive meeting held 31 July. The latest nuclear reactor construction projects include three pairs of Hualong One (HPR1000) reactors at Jinqimen, Taipingling and Zhuanghe, and two Guohe One (CAP1400) units at the Laiyang site.[12]

South Korea is assessing an additional 38.4 GW of electricity generation capacity to meet 260 TWh of additional annual electricity demand by 2041, equivalent to 43.6% of total domestic power generation in 2025. During a policy forum for the 12th Basic Plan for Electricity Supply & Demand, the Korea Energy Economics Institute (“KEEI”) highlighted the rapidly increasing electricity needs of AI data centres (18.4 GW) and semiconductor industrial complexes (20 GW) as leading demand growth factors. KEEI recommended operating life extensions for nine reactors reaching the end of their current operating lives by 2030, as well as the construction of two additional reactors.[13]

Russia initiated site preparation for the Kola II nuclear power reactors following the granting of site license by the Russian regulator, Rostekhnadzor. The current plan would incorporate four units of the VVER-S design (600 MWe) with the initial two being built between 2027 and 2037. These units would replace smaller VVER-440 reactors which would be reaching their end of operating life.[14]

Russia reported that under that country’s 2024 General Plan for the Location of Nuclear Power Facilities by 2042 a total of 38 new reactors are to be built including GW-scale, VVER-600 medium-sized units as well as small modular reactors with the share of nuclear generation rising from 20% to 25% by 2045. Currently Russia is constructing 28 reactors in nine countries (India, China, Türkiye, Egypt, Iran, Bangladesh, Hungary, Uzbekistan and Kazakhstan).[15]

Prime Minister Mikhail Mishustin announced that Russia is moving forward with agreements to construct a small modular reactor in Myanmar. Stating that the project would become “a new symbol of Russian-Myanmar friendship,” the two countries signed an intergovernmental agreement in March 2025 on cooperation in constructing the SMR.[16]

The U.S. Army announced the selection of five microreactor developers to support the deployment of nuclear power at five Department of War facilities. The “Janus Program” established by the Trump Administration is funded at US$2.2 billion and aims for the operation of an Army-regulated nuclear reactor at a domestic military installation no later than 30 September 2028. The five microreactor developers chosen by the Army are: Antares Nuclear (Fort Bragg, North Carolina); BWXT Advanced Technologies (Fort Campbell, Kentucky); General Atomics Electromagnetic Systems (Fort Hood, Texas); Radiant Industries (Fort Benning, Georgia), and Westinghouse Government Services (Fort Drum, New York).[17]

On 26 August, Japan’s Green Transformation (“GX”) Implementation Council, chaired by Prime Minister Takaichi Sanae, adopted a new policy package designed to strengthen the resilience of the country’s energy supply and demand structure in the face of recent developments in the Middle East. The policy package (Policy Package for Wide Energy and Resources Resilience through GX) “focuses on two main pillars: fundamentally improving the stability of fossil fuel procurement, and expanding investment to accelerate the energy transition, increase energy supply capacity and improve efficiency.” Regarding the role of nuclear energy, the package calls for the maximum use of nuclear power with safety as a fundamental prerequisite while envisioning the projected replacement of two to five reactors in the 2040s and 11 to 14 reactors in the 2050s.[18]

The restart of Taiwan Power Company’s Maanshan Nuclear Power Plant continued to progress as the country’s Nuclear Safety Commission completed a review of the initial restart proposal. The Taiwanese government has revised its nuclear policy which called for the shut-down of reactors when the facility reached the end of its 40-year operating license. Maanshan was taken out of service in 2025 but could return to operations as early as 2028.[19]

Thailand’s draft Power Development Plan 2026 (“PDP2026”) includes an initial 300 MWe SMR, targeted to enter service in 2037, in the common development programme across its alternative electricity supply scenarios. The draft plan remains subject to revision following public consultation and to approval by the National Energy Policy Council and Cabinet. A reactor technology and site have not yet been selected.[20]

The Electricity Generating Authority of Thailand announced an agreement with the US Trade and Development Agency for a feasibility study on the deployment of US small modular reactor technologies in Thailand. The US funded study will assess potential reactor sites, costs and regulatory requirements needed to support the plan to develop SMRs with a total generating capacity of 600 MWe. The study will consider reactor designs made by GE-Hitachi, Holtec, Kairos Power, NuScale, TerraPower, Westinghouse, and X-Energy.[21]

Türkiye’s Energy and Natural Resources Minister, Alparslan Bayraktar, announced that, in response to growing electricity demand especially from data centres, the country is exploring alternatives to introduce small modular reactors in Türkiye’s expanding nuclear power program. SMR operation could commence in the early 2030s. The country’s current commercial nuclear power program calls for 12 conventional large reactors and 5,000 MWe of SMR capacity by 2050.[22]

India’s largest power producer, NTPC Ltd., is reportedly considering up to 50 GWe of nuclear generating capacity by 2047, compared with its previously disclosed target of 30 GWe. This would represent one-half of India’s 100 GWe nuclear capacity goal. The state-owned power producer is evaluating international nuclear technologies and considering cost-plus models for future projects. The 50 GWe figure is a longer-term ambition discussed with financial analysts, rather than a formally announced revision to NTPC’s target.[23]

India’s Committee on Public Undertakings released its report on securing the requisite uranium to support India’s announced national program of reaching 100 GWe of nuclear power by 2047. While the Department of Atomic Energy (“DAE”) has assured the parliamentary committee that Uranium Corporation of India Ltd (“UCIL”) will double domestic uranium output by 2036 through expanding capacity at existing production facilities as well as building additional production sites in three locations within India, the committee expressed its concerns regarding the timeline for that expansion plan stating that Nuclear Power Corporation of India Ltd’s (“NPCIL”) reactor development is front-loaded and “Any delay in the commissioning of these mining clusters will prolong the strategic sensitivity of relying on imported fuel lines.”[24]

On 29 September, the US Nuclear Regulatory Commission (“USNRC”) issued a construction permit to the Tennessee Valley Authority (“TVA”) for its planned GE Vernova Hitachi BWRX-300 small modular reactor at the Clinch River site. TVA became the first US utility permitted to build the BWRX-300 design. TVA continues to pursue cost-sharing arrangements to limit exposure to first-of-a-kind development costs. TVA submitted its application in May 2025; the USNRC completed its review in approximately 14 months after formally beginning the process in July 2025. The permit authorises construction, but fuel loading and operation would require a separate operating licence.[25]

The World Nuclear Association (“WNA”) initiated its “World Nuclear Investment Guide” which is aimed at addressing the massive capital requirements of the commercial nuclear power sector through 2050 when worldwide installed nuclear generating capacity could reach 1,446 GWe (as compared to current capacity of 403 GWe). Annual investment throughout the entire nuclear sector needs to triple to USD250 billion totalling USD 6.0 trillion between now and 2050. The guide states that there are six conditions needed “to make nuclear a mainstream asset class: institutional support; business standardization; priceable risk and reward; market remuneration frameworks; supply chain capacity and maturity; transformational mechanisms.”[26]

Energy Connects reports that Bloomberg NEF released the conclusions of its report that global nuclear power will increase by 44% over the next decade driven by rising demand from industry, data centres and electrification of homes as climate change targets call for increased carbon-free generation from reactors. Furthermore, “rising social acceptance of nuclear power is pushing utilities and governments around the world to reconsider policies that have hindered development.” Major contributors to the gain in nuclear generation are expected to be China and India.[27]

The International Atomic Energy Agency (“IAEA”) annual nuclear power capacity forecast increased for the sixth year in a row. The IAEA annual report “Energy, Electricity and Nuclear Power Estimates for the Period up to 2060,” projects, in its high case, that worldwide nuclear power capacity could expand from the end-of-year 2025 level of 377.1 GWe (413 reactors) reaching 1045 GWe by 2050 (compared to 992 GWe projected in 2025) before increasing to 1284 GWe by 2060 (approximately 3.4 times the 2025 level). Under the low case assumptions, global nuclear power capacity expands to 696 GWe by 2060, nearly twice the 2025 level. In the high case, small modular reactors provide 28% of all new nuclear capacity added by 2060 while under the low case SMR capacity expansion represents 23% of new capacity.[28]

Uranium Production and Nuclear Fuel Supply

Cameco’s 2026 second-quarter results, released on 31 July, reported a decline in total Canadian uranium production on a 100% basis at McArthur River/Key Lake and Cigar Lake to 6.2 million lb (McArthur River/Key Lake: 3.3 million lb; Cigar Lake: 2.9 million lb), from 7.7 million lb in the comparable period of 2025. McArthur River/Key Lake operations were temporarily disrupted by the partial collapse of the Smoothstone River bridge on their principal supply route, while Cigar Lake underwent planned maintenance during the second quarter. No planned shutdown was scheduled for McArthur River in 2026; maintenance at the Key Lake mill was planned for the third quarter. Total Canadian uranium production on a 100% basis for the first six months of 2026 was 16.2 million lb, almost 7% below the 2025 total of 17.4 million lb. Cameco’s annual production guidance of 19.5 to 21.5 million lb is stated on an attributable basis (Cameco’s share).[29]

Kazatomprom reported its 2Q2026 operational and financial results. Total uranium production (100% basis) reached 18.6 million lb, an increase of 8% over 2Q2025 (17.2 million lb) which brought the aggregate uranium output for the year to 34.6 million lb (2025 – 31.8 million lb). The world’s largest producer of uranium maintained its earlier guidance for CY2026 output of 27,500-29,000tU (71.5-75.4 million lb).[30]

Denison Mines announced the commencement of full-scale construction of the Phoenix in-situ recovery (“ISR”) uranium mine in the eastern Athabasca Basin of northern Saskatchewan. The first-of-a-kind ISR uranium mine in the Athabasca Basin has estimated total capital expenditure of approximately C$700 million, comprising approximately C$100 million before the final investment decision and C$600 million after it. First production is targeted for 2028, with almost 40 million lb of U₃O₈ expected over the first five years and an expected mine life of 10 years.[31]

Subsequent to the initiation of site construction activities in June 2026, NexGen Energy Ltd. announced the official ground-breaking of the Rook I underground uranium mine in the Athabasca Basin of Saskatchewan. The facility is expected to take four years to complete construction with a total capital expenditure of C$2.2 billion with the capacity to produce up to 30 million lb U₃O₈/year.[32]

The OECD Nuclear Energy Agency (“NEA”) and the International Atomic Energy Agency released the latest version of their biennial assessment of global uranium resources, production and demand. The report generally known as the “Red Book” encapsulates data provided by a broad spectrum of countries with uranium resources and related activities. Reported domestic uranium exploration and mine development expenditure reached US$965 million in 2024, an increase of 32% from the 2022 level of US$731 million. Aggregate global Total Identified Resources, consisting of Reasonably Assured Resources (“RAR”) and Inferred Resources recoverable <US$260/kgU (US$100/lb U₃O₈) totalled 8.10 million tU, an increase of 2.1% compared to 7.93 million tU in 2023. The geographic distribution of RAR resources as of January 1, 2025, showed Australia retaining the number one position followed by Canada, Kazakhstan, Niger and Namibia. The report concluded that production from existing and committed mines, assuming operation near stated capacity, could meet low-demand requirements through 2032, but would be insufficient under the high-demand scenario. It emphasised the importance of developing new production facilities and continuing exploration, alongside contributions from secondary supplies. It also highlighted the substantial investment and technical expertise required to bring these resources into production, the geopolitical, technical, legal and regulatory challenges involved, and the importance of sustained strong market conditions in supporting that investment.[33]

Market Outlook

Uranium spot prices rose during the Quarter despite lower trading volumes, while the outlook for nuclear generation continued to strengthen. Progress on SMRs included the USNRC granting a construction permit for TVA’s BWRX-300 at Clinch River. The U.S. Army advanced plans to deploy micro-reactors at domestic facilities, while the United States and South Korea discussed proposals for up to eight large reactors as part of their investment negotiations.[34]

New uranium mine construction in Saskatchewan’s Athabasca Basin is expected to add supply later this decade. Further investment in production will be needed to meet projected demand growth.

The uranium market remains focused on long-term contracting, although reported contracting activity remains below replacement levels. Security of supply concerns are encouraging utilities to secure future uranium requirements. The Company expects further utility contracting to support long-term uranium prices.

Net Asset Value

Yellow Cake’s estimated net asset value at 30 September 2026 was £6.66 per share or US$2,223.3 million, consisting of 24.37 million lb of U₃O₈ valued at a daily spot price of US$89.50/lb and cash and other net current assets of US$41.7 million.[35] ,[36]

Yellow Cake Estimated Net Asset Value as at 30 September 2026

Units

Investment in Uranium

Yellow Cake’s estimated net asset value on 26 October 2026 was £6.65 per share or US$2,231.8 million, based on 24.37 million lb of U₃O₈ valued at a daily spot price of US$89.85/lb and cash and other net current assets of US$41.7 million as at 30 September 2026.[39]

Yellow Cake Estimated Net Asset Value as at 26 October 2026

Units

Investment in Uranium