Purepoint Uranium : Q2 2022 MDA

Management's Discussion and Analysis for the quarter ended June 30, 2022

Dated: August 29, 2022

Q2 2022 Report		1

Management's Discussion and Analysis

For the quarter ended June 30, 2022

The following discussion and analysis is management's assessment of the results and financial condition of Purepoint Uranium Group Inc. ("Purepoint" or the "Company") and should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2021, together with the related notes contained therein. The Company's most recent filings are available on the SEDAR website. The date of this management's discussion and analysis is August 29, 2022.

The interim financial statements for the three- and six-month periods ended June 30, 2022 and 2021 are prepared in accordance with International Accounting Standard ("IAS") 34 under International Financial Reporting Standards ("IFRS").

Forward looking statements

Certain information included in this discussion may constitute forward-looking statements. Forward-looking statements are based on current expectations and various risks and uncertainties. These risks and uncertainties could cause or contribute to actual results that are materially different than those expressed or implied. The Company disclaims any obligation or intention to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

Business of Purepoint

Purepoint maintains a focused objective of locating uranium deposits in the Athabasca Basin in Northern Saskatchewan. Purepoint currently maintains 12 properties located in the Athabasca Basin. The Company entered into joint venture agreements and operates one of these projects with Cameco Corporation and Orano Canada Inc. (formerly AREVA Resources Canada Inc.), one of these projects with Cameco Corporation, while the other ten projects remain 100% owned. Saskatchewan's Athabasca Basin now provides approximately 25% of the world's uranium production credited primarily to that region's unusually high ore grade deposits.

The 2022 operating plan is discussed under Exploration Activities.

Selected quarterly information

The following selected information is derived from the audited annual and unaudited quarterly financial statements.

	Quarter	Quarter	Quarter	Quarter	Quarter	Quarter	Quarter	Quarter
	ended	ended	ended	ended	ended	ended	ended	ended
	June 30,	March 31,	December	September	June 30,	March 31,	December	September
	2022	2022	31, 2021	30, 2021	2021	2021	31, 2020	30, 2020
Net loss	(910,701)	(1,614,139)	(2,603,900)	(597,940)	(2,538,776)	(381,161)	(313,906)	(170,729)
Net loss per	(0.00)	(0.00)	(0.01)	(0.00)	(0.01)	(0.00)	(0.00)	(0.00)
share
Total assets	5,107,311	2,881,222	4,596,639	4,793,045	5,426,110	2,123,774	2,518,243	370,320

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Management's Discussion and Analysis

For the quarter ended June 30, 2022

Results of operations

The Company's operations during the three- and six-month periods ended June 30, 2022 produced

1. net loss of $910,701 and $2,524,432 (2021 - $2,538,776 and $2,919,936). The primary operational activity continues to be the exploration of the Company's projects. The expenditures and levels of activity relating to the Company's projects are described in greater detail below following a brief discussion of significant changes in expense line items.

Exploration and evaluation expenditures for the three- and six-month periods ended June 30, 2022 amounted to $121,635 and $1,564,498 (2021 - $1,275,700 and $1,606,334. Decrease is a result of timing difference as expenses related to airborne surveys of various properties are temporarily recorded as deposits.

Exploration salaries and benefits for the three- and six-month periods ended June 30, 2022 amounted to $148,534 and $294,659 (2021 - $149,439 and $276,252).

Share based payments in the amount of $376,912 (2021 - $931,524) have been recognized during the three- and six-month periods ended June 30, 2022. On May 13, 2022 the Company granted 6,350,000 stock options at an exercise price of $0.07 per option, vesting immediately. On May 13, 2021 the Company granted 8,400,000 stock options at an exercise price of $0.13 per option, vesting immediately. Fair value assigned to new grants was expensed in the same period when granted.

Investor relations increased by $72,341 and $143,166 compared to the three- and six-month periods ended June 30, 2021 and is attributable to the retaining of a new investor relations firm and generally higher marketing activities after securing a US OTCQB Listing.

Professional fees increased by $28,513 and $61,654 compared to the three- and six-month periods ended June 30, 2021 and is attributable to increased legal fees related to informal discussions with prospective business partners as well as potential land use agreements with local communities in 2022.

Other expenses were comparable to the same period in 2021.

Operator fees and other expense recoveries with respect to joint projects for the three- and six- month periods ended June 30, 2022 amounted to $44,657 and $51,108 (2021 - $24,848 and $228,289). The decrease is primarily due to a reduction in joint project operational activities overall, specifically drilling at Hook Lake Property which historically has occurred in the first quarter of the year.

Cash flows

Cash flows used in operating activities

Cash used in operating activities was $3,060,334 during the six-month period ended June 30, 2022 compared to $2,058,789 in the same period in 2021. This was predominantly the result of the increased drilling activities on the Company's own properties Red Willow and Henday Lake.

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Management's Discussion and Analysis

For the quarter ended June 30, 2022

Cash flows provided by financing activities

Cash flows provided by financing activities was $3,179,985 during the six-month period ended June 30, 2022 compared to $4,844,073 in the same period in 2021 and it comes mainly from the private placement financings in April 2022 and in April 2021.

Cash flows used in investing activities

The Company did not have any cash flows from investing activities during the six-month period ended June 30, 2022 and 2021 as the money raised in private placements was regularly spent for operating activities during these periods.

Exploration Review

Exploration and evaluation expenditures

The Company incurred $121,635 and $1,564,498 (2021 - $1,275,700 and $1,606,334) in exploration and evaluation expenditures on its properties during the three- and six-month periods ended June 30, 2022, as follows:

			2022				2021
		Three months		Six months		Three months		Six months
Red Willow Property	$	85,820	$	1,519,516	$	897,408	$	898,328
Hook Lake Property		23,334		23,381		15,261		287,145
Smart Lake Property		1,883		1,883		-		-
Turnor Lake Property		-		250		520		520
Umfreville Property		5,299		5,299		352,837		361,697
Henday Lake Property		5,299		14,169		-		-
Other Properties		-		-		9,674		58,644

Recent Highlights

With the recovery of the uranium price in late 2020, the Company raised approximately $11.8 million through private placements in the last 24 months. Furthermore, in 2022, the Company's Hook Lake joint venture partners requested the Company to conduct additional geophysics on the Hook Lake Property with a small budget of $170,000 which has made funding available for initial explorative drilling at some of its other properties that have been inactive for many years.

Exploration activities during the six-month period ended June 30, 2022 included:

1. A winter drill program carried out at the Red Willow project:

• The 2022 Red Willow drill program was designed to expand the Company's Osprey discovery where initial drilling identified basement-hosted uranium mineralization highlighted by RW-19 that intersected 0.19% U3O8 over 4.0 metres and included 3.03% U3O8 over 0.1 metre
• 12 holes were completed this winter totaling 2,088 metres at the Osprey Zone
• Nine of the twelve holes encountered anomalous radioactivity at a shallow depth from

surface across a distance of 1.2 kilometres (.75 miles)

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Management's Discussion and Analysis

For the quarter ended June 30, 2022

• The highest levels of radioactivity were seen in holes OSP22-04,OSP22-06,OSP22-12 and OSP22-13 which returned peak radiation levels of 8,830 cps, 33,070 cps, 6,367 cps and 8,002 cps respectively. Assays are pending
• The electromagnetic conductor that represents the graphitic unit hosting mineralization continues for an additional kilometre north of the completed drilling and nearly one kilometre to the south

2. In April 2022 the Company announced its exploration plans for the remainder of 2022, specifically:

• Drilling at Red Willow will resume in September following up on the last program's final hole OSP22-15 which encountered numerous structures with hematite alteration and silicification representing a highly prospective setting for uranium deposition.
• Time allowing, the Company expects to complete the Fall drill season in early November at Turnor Lake, testing numerous initial targets including the Serin Zone that resides on trend with IsoEnergy's Hurricane deposit.
• Fall drilling will utilize helicopter support as many of the primary targets (and access) at both Red Willow and Turnor Lake reside in wet, marshy areas. Drilling will focus on priority follow-up and some first pass targets. More extensive drilling will follow next winter.
• On May 4, 2022, the Company filed an updated National Instrument 43-101 compliant technical report on its flagship Hook Lake Joint Venture project (https://purepoint.ca/projects/hook-lake/- "Technical Report on the Hook Lake Project, Northern Saskatchewan, Canada April 19, 2022").
• In June, Purepoint will carry out a deep sensing ZTEM airborne geophysical survey over the Hook Lake, Carter Corridor to further refine drill targets in anticipation of a follow-up drill program.
• An airborne gravity survey is planned over June and July over the Carson Lake and Russell South projects. These surveys have proven valuable in identifying alteration zones that can refine drill targets when viewed in tandem with existing historic work.
• In August, an airborne electromagnetic (EM) survey will be conducted over the MillKey, JebRaven, MidBear and CollinEagle projects (collectively referred to the Tabbernor Projects). The survey will help identify structural splays off of the North/South trending Tabbernor structure as well as associated graphitic conductor targets in the area.

Exploration Activities

2021 Winter Exploration Program at Hook Lake

On January 28, 2021 Purepoint announced the commencement of its 2021 diamond drill program on the Saber Zone at Hook Lake. The completion of the program was announced on March 30, 2021 and on May 11th, 2021 Purepoint released the results of that program.

Highlights:

• Three diamond holes were completed and one hole was lost for a total of 2,556 metres of drilling.
• Drill holes HK21-117A and 118, drilled in the vicinity of previous hole HK20-115, encountered wide intervals of strong to intense silicification beginning at the unconformity and the targeted electromagnetic (EM) conductors for both holes were explained by graphitic shear zones.

www.purepoint.ca		5