Terra Uranium Limited provided this exploration update following confirmation of the approval of ground exploration for the next 3 years on its 100% owned Athabasca exploration projects from the Saskatchewan Government. The Company holds a 100% interest in 22 claims covering a total of 1,008 km2, forming the HawkRock Project, the Parker Lake Project and the Pasfield Lake Project (together, the Projects), located in the Cable Bay Shear Zone (CBSZ) on the eastern side of the Athabasca Basin, north-eastern Saskatchewan, Canada. The Projects are approximately 80 km to the west of multiple operating large uranium mills, mines and known deposits.

The CBSZ is a major structural zone with known uranium mineralisation but has seen limited exploration as the basin sediment cover is thicker than for known deposits immediately to the east. Methods used to explore include airborne and ground geophysics, including airborne electromagnetics (VTEM, ZTEM), the recently demonstrated ambient noise tomography (ANT) that can penetrate to depth and reverse circulation drilling (RC) for geochemical profiling, to provide the best targets before undertaking costly cored diamond drilling right into the target zones at depth. Drilling contractors for the RC and Diamond Drilling have been engaged in a very tight exploration market.

Final design of the drill programs will follow completion and interpretation of the geophysics programs. A major milestone for Terra Uranium has been reached with the granting of exploration permits for the next 3 years over all of the Company's 100% owned Athabasca Basin projects. In the 4 months since listing on the ASX on 8 September 2022, the Company has completed airborne geophysics, geochemistry, a highly successful trial of ANT passive seismic to map the basement, data analysis and permitting for ground operations. The 2023 exploration program has now commenced road and camp construction following the grant of the exploration permits.

The exploration permits cover new trail and creek crossing construction, base camp, grassroots exploration, ground geophysics, reverse circulation and diamond drilling subject to on-going consultation with all stakeholders and compliance with environmental and social requirements. Two new tenements were acquired at Moss Creek bringing the total 100% owned tenements to just over 1,000 km2. The Moss Creek area covers north-west extensions of basement conductors identified in the ZTEM survey over the original Pasfield Project area and are considered highly prospective Ambient Noise Tomography (ANT) geophysical nodes were placed and retrieved from the field in September 2022 and a seismic velocity model has been completed by industry-leading Fleet Space Technologies.

The ANT method measures seismic velocity, a different type of rock physical property to that measured by gravity, magnetics and electrical methods like ZTEM and VTEM. The combination of these results into an integrated 3D earth model assists in targeting drilling. The trial, in conjunction with Fleet Space Technologies, was focused on mapping the basement unconformity in detail at depths of 800 to 1,000 metres.

This is the first time that this technology, first developed in Australia, has been deployed in the Athabasca Basin. The ANT survey was successful in mapping the basement in detail as well as detecting variations in seismic velocity within both the basement and overlying sandstones that are coincident with conductors identified in both ZTEM and VTEM surveys. It is interpreted that these variations could be related to changes in alteration, structure, or host lithologies related to mineralisation.

The Terra Uranium team is working with Fleet to combine these results with gravity, magnetics and ZTEM and VTEM electrical methods to better target follow-up drilling.