TORONTO, Ontario — January 2, 2026 — Leads & Copy — Denison Mines Corp. (TSX: DML; NYSE American: DNN) is ready to make a final investment decision (FID) and begin construction of the Phoenix In-Situ Recovery (ISR) uranium mine, pending final regulatory approvals.
The company announced significant progress in regulatory, engineering, and construction planning throughout 2025, positioning Phoenix in a construction-ready state. The timeline for construction is expected to be two years.
Targeted first production remains on track for mid-2028, provided final regulatory approvals to commence construction are received in Q1’2026. Denison is providing an updated initial capital cost estimate for the Project, based on substantial completion of project engineering and execution of significant procurement activities since 2023.
Denison President & CEO David Cates said that after another year of significant investment and progress, Denison stands ready to make a final investment decision and commence construction of the Phoenix ISR mine proposed for the Wheeler River property.
Cates added that with the recent conclusion of the CNSC public hearing, and receipt of an initial approval to commence construction activities from the Province of Saskatchewan, the company is poised to start 2026 with a series of positive catalysts that will mark the beginning of a new era in the company’s history.
The company said the Project is now ready to become the first new large-scale uranium mine built in Canada since Cigar Lake, with first production expected by mid-2028. Phoenix is positioned to benefit from an anticipated acceleration in uranium demand based on increasingly widespread global adoption of nuclear energy, and to support Canada’s objective to develop sustainable and environmentally responsible mining projects to reinvigorate Canada’s natural resources sector.
The company said that based on its strong balance sheet, and the advanced state of project engineering, construction planning, and procurement activities, it is confident that it will be able to make a positive final investment decision following receipt of final regulatory approvals.
The company noted that while its estimate of initial capital costs has increased modestly from the 2023 Phoenix FS, the Project is now ready for construction, continues to have only a two-year construction schedule, and that the updated costs are the basis for its project Control Budget.
The two-part Canadian Nuclear Safety Commission (CNSC) public hearing, considering Denison’s application for the approval of the Environmental Assessment (EA) and the Licence to Prepare the Site for & Construct a Mine and Mill (the Licence), concluded on December 11, 2025. Denison is awaiting a decision from the CNSC.
In August, Denison announced the Project received Ministerial approval under The Environmental Assessment Act (Saskatchewan).
Denison recently received authorization from the Province of Saskatchewan to conduct certain activities associated with the initial earthworks for the Project, including vegetation removal and site drainage works.
The procurement process for planned 2026 construction contracts is nearly complete with contract awards pending and expected in early 2026. Based on significant construction planning efforts completed to date, it is expected that Denison will achieve a level 4 (detailed task level) construction schedule shortly after contract awards are complete and contractors are onboarded.
Expected shipment dates for all key long lead items are on schedule, including electrical distribution infrastructure consisting of main site transformer, substation high voltage equipment, switchgear, and substation e-house.
Detailed design engineering for the Project is substantially complete with approximately 87% total engineering complete to date, and 92% of primary engineering deliverables issued for construction with remaining engineering, related to the latter phases of project construction, forecasted to be completed by Q2’2026.
Given significant progress with long-lead procurement and the advanced stage of negotiation on several key construction work packages, a Class 2 post-FID capital cost estimate has been prepared to set a project construction cost control budget (Control Budget). This capital cost estimate updates the Class 3 cost estimate (based on 2022 costing) reported in the 2023 feasibility study for Phoenix (the 2023 Phoenix FS). Post-FID initial capital costs for Phoenix are now expected to be $600 million (Updated Capex), which reflects a combination of inflationary adjustments, cost increases, project refinements, and improved estimation precision. The Updated Capex is a 20% increase relative to the 2023 Phoenix FS when adjusted for inflation. The Project is now in a construction ready state and no adjustments to the Updated Capex are expected prior to commencement of construction.
With over $700 million of cash, physical uranium and investments as of September 30, 2025, Denison is in a strong financial position to fund the initial capital requirements of the Project.
Denison is ready to make a FID and commence construction shortly after receiving federal approval of the EA and Licence. If construction commences by the end of Q1’2026, the Project timeline will remain on track for targeted first production by mid-2028.
Approximately 75% of equipment and materials costs are supported by committed contracts or bid evaluations in progress, and approximately 50% of construction costs are supported by bids under evaluation or in final contract negotiation.
After accounting for increases in inflation, cost increases, and project refinements, the Company now estimates the total post-FID initial capital estimate for the Project to be approximately $600 million at a Class 2 cost estimate level of precision. When adjusting for inflation, updated initial capital costs have increased by 20% relative to the 2023 Phoenix FS.
The updated capital cost estimate includes $65 million in contingency funds and owners’ reserves, which represents approximately 12.5% of direct and indirect Project costs.
A notable refinement to the 2023 Phoenix FS is the planned installation of large diameter wells throughout the Phase 1 mining area to enable each well to act as an injection or recovery well. The 2023 Phoenix FS was based on approximately half of the wells in Phase 1 being large diameter and the other half being smaller diameter wells for injection only. While this modification increases initial capital costs, it is expected to improve the operational flexibility of the wellfield, optimize rates of recoveries, and support achievement of the 2023 Phoenix FS production targets.
The Updated Capex assumes a FID is made at the end of February 2026 and excludes approximately $53 million in pre-FID expenditures expected to be incurred after November 30, 2025 for milestone payments against long-lead procurement commitments, and for the detailed design engineering and construction planning expected to be completed pre-FID. Inclusive of approximately $47 million in pre-FID expenditures estimated to have been incurred up until November 30, 2025, Denison expects to incur a total of approximately $100 million in pre-FID expenditures since the completion of the 2023 Phoenix FS, which compares to $67.4 million in pre-FID expenditures estimated in the 2023 Phoenix FS.
Construction of the Project is still planned to be completed during an approximate 24-month construction period. If the Project receives all necessary approvals to commence construction by the end of the first quarter of 2026, Denison would be able to initiate construction as planned and maintain its target of achieving first production by mid-2028.
The projected base-case adjusted after-tax NPV for the Project remains effectively the same, as the increase in initial post-FID capital costs is offset by a modest improvement in the uranium price assumptions since mid-2023.
Based on the Updated Capex, the Project’s sensitivity to the uranium price has been updated. Since the 2023 Phoenix FS, expected uranium spot prices have increased slightly, whereas long-term uranium prices, which are intended to represent the pricing for base-escalated long-term contracts in today’s dollars, have increased over 50% to US$86.00/lb U3O8 compared to US$56.00/lb U3O8 at the time of announcing the 2023 Phoenix FS.
Wheeler River is the largest undeveloped uranium project in the infrastructure-rich eastern portion of the Athabasca Basin region, in northern Saskatchewan. The project is host to the high-grade Phoenix and Gryphon uranium deposits, discovered by Denison in 2008 and 2014, respectively, and is a joint venture between Denison (90% and operator) and JCU (Canada) Exploration Company Limited (JCU, 10%).
Denison is a leading uranium mining, development, and exploration company with interests focused in the Athabasca Basin region of northern Saskatchewan, Canada. In addition to Denison’s effective 95% interest in its flagship Wheeler River Project, Denison’s interests in Saskatchewan include a 22.5% ownership interest in the McClean Lake Joint Venture (MLJV), which includes unmined uranium deposits and the McClean Lake uranium mill, plus a 25.17% interest in the Midwest Joint Venture Midwest Main and Midwest A deposits, and a 70.55% interest in the Tthe Heldeth Túé (THT) and Huskie deposits on the Waterbury Lake Property.
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Source: Denison Mines Corp.
