Nexgen Energy Ltd (NXGEF)

[masslanding]

NexGen Energy drills 74 m of 10.28% U3O8 at Rook I

2016-06-06 06:44 ET - News Release

Mr. Leigh Curyer reports

NEXGEN ENERGY LTD. - HOLE AR-16-76C3 RETURNS 50.0 M AT 15.05% U3O8 INCLUDING 11.5 M AT 49.53% U3O8

NexGen Energy Ltd. has released assay results for four angled holes from its highly successful winter 2016 drilling program on the 100-per-cent-owned Rook I property, Athabasca basin, Saskatchewan.

Drilling in the A2 shear at the Arrow Deposit continues to deliver strong assay results. Drill hole AR-16-76c3 which was drilled 58 m up-dip and southwest from hole AR-15-44b (56.5 m at 11.55% U3O8 - see News Release dated June 15, 2015) has intersected 74.0 m at 10.28% U 3 O 8 in the higher grade A2 sub-zone (the "Sub-Zone"). This intercept, which represents a continuous grade x thickness ("GT") of 761 also includes 50.0 m at 15.05% U 3 O 8, 11.5 m at 49.53% U 3 O 8 and 0.5 m at 80.00% U 3 O 8 . Also in the Sub-Zone, drill hole AR-16-78c1 intersected 37.5 m at 12.94% U 3 O 8 and was drilled 69 m up-dip and northeast of hole AR-15-44b.

The Sub-Zone is defined by extensive intersections of dense accumulations of massive to semi-massive pitchblende, and is currently outlined by 22 drill holes. Assay results from four drill holes in the Sub-Zone remain pending.

Highlights:

A2 Sub-Zone

- AR-16-76c3 (58 m up-dip and southwest from AR-15-44b) intersected 74.0 m at 10.28% U 3 O 8 (470.5 to 544.5 m) including 50.0 m at 15.05% U 3 O 8 (494.5 to 544.5 m) and 0.5 m at 80.00% U 3 O 8 (515.5 to 516.0 m). - AR-16-78c1 (69 m up-dip and northeast of AR-15-44b) intersected 37.5 m at 12.94% U 3 O 8 (443.0 to 480.5 m) including 17.0 m at 20.25% U 3 O 8 (443.5 to 460.5 m) and 4.0 m at 59.38% U 3 O 8 (451.5 to 455.5 m).

Arrow, Activities & Financial

-The land-based and basement hosted Arrow Deposit currently covers an area of 865 m by 280 m with a vertical extent of mineralization commencing from 100 m to 920 m, and remains open in most directions and at depth. -The spring 2016 program comprising 7,500 m of drilling continues with three drill rigs active. Concurrently, preparations are underway for a large summer drill program to begin in mid-June. -The Company remains on track for release of an updated NI 43-101 resource estimate on the Arrow Deposit due in the second half of 2016. -The Company will have cash on hand of $100M upon closing of the previously announced financing with CEF Holdings.

A three-dimensional view of the A2 Sub-Zone, drill hole locations and a close-up of the A2 long section are shown in Figures 1 to 3. Assay results are presented in Table 2.

Garrett Ainsworth, Vice-President, Exploration and Development, commented: "The A2 high grade domain is demonstrating strong grade and thickness continuity of massive to semi-massive uranium mineralization, evident with these two highly ranked GT's at Arrow a considerable distance apart. Delineation drilling at Arrow continues to impress."

Leigh Curyer, Chief Executive Officer, commented: "The drill assay results reported herein continue to exceed our expectations. The spring program is progressing well with currently four assays pending in the Sub-Zone and 23 in total at Arrow. Drilling for the balance of spring will continue to focus at Arrow and at the new 180m southwest extension where early indications have been very encouraging. Preparations for the summer program are well advanced which will focus on continued Arrow delineation and extensions, the 180m southwest extension as well as high priority regional targets along the Patterson Corridor on Rook I."

Arrow Zone Assay Results Hole ID From To Interval U3O8 Grade x thickness (m) (m) (m) (%) AR-16-74c3 449.50 454.50 5.00 0.03 0.15 515.50 516.00 0.50 0.04 0.02 521.50 523.00 1.50 0.04 0.06 552.00 554.00 2.00 0.23 0.46 565.50 566.50 1.00 0.20 0.20 569.50 571.50 2.00 0.91 1.82 574.00 580.50 6.50 1.85 12.03 587.50 590.00 2.50 0.30 0.75 592.50 606.00 13.50 0.63 8.51 613.50 620.50 7.00 0.02 0.14 633.50 634.50 1.00 0.06 0.06 653.00 653.50 0.50 0.02 0.01 AR-16-76c2 434.50 437.00 2.50 0.30 0.75 472.50 475.50 3.00 0.23 0.68 479.00 481.00 2.00 0.02 0.03 483.50 506.00 22.50 0.38 8.48 510.50 541.00 30.50 2.70 82.22 587.00 596.00 9.00 0.12 1.08 598.50 603.00 4.50 0.05 0.22 AR-16-76c3 470.50 544.50 74.00 10.28 760.72 494.50 544.50 50.00 15.05 510.50 525.50 15.00 41.26 514.00 518.00 4.00 67.05 514.00 525.50 11.50 49.53 515.50 516.00 0.50 80.00 586.00 587.50 1.50 0.03 0.05 594.50 595.50 1.00 0.04 0.04 AR-16-78c1 396.00 440.50 44.50 0.14 6.23 443.00 480.50 37.50 12.94 485.25 443.50 460.50 17.00 20.25 451.50 455.50 4.00 59.38 485.50 491.50 6.00 0.06 0.36

Composite parameters:

-Minimum thickness 0.5 m downhole -Cutoff grade 0.01% U3O8 -Maximum internal dilution 2.00 m downhole -U3O8 analyzed by ICP-OES at SRC Laboratories, Saskatoon, Saskatchewan -All depths and intervals are meters downhole, true thicknesses are yet to be determined

Split core samples were taken systematically, and intervals were submitted to SRC Geoanalytical Laboratories (an SCC ISO/IEC 17025: 2005 Accredited Facility) of Saskatoon for analysis. All samples were analyzed using ICP-MS for trace elements on partial and total digestions, ICP-OES for major and minor elements on a total digestion, and fusion solution of boron by ICP-OES. Mineralized samples were analyzed for U3O8 by ICP-OES and selected samples for gold by fire assay.

All assay batches reported herein are subjected to and have passed rigorous internal QA/QC protocols that include, but are not limited to, the blind insertion of standard reference materials, blank materials and field duplicates into the sample stream at both random and systematic intervals.

The technical information in this news release has been approved by Garrett Ainsworth, P.Geo., Vice President - Exploration & Development, a qualified person for the purposes of National Instrument 43-101 - Standards of Disclosure for Mineral Projects. Mr. Ainsworth reviewed the data disclosed in this news release, including the sampling, analytical and test data underlying the information contained in this news release. Mr. Ainsworth has verified that the results are accurate by reviewing the official assay certificates provided to the Company.