Terra Uranium Limited announced the completion of airborne ZTEM and VTEM geophysics, and the commencement of the 2023 winter drilling program at its 100% owned Pasfield and Parker Projects as of 17th Feb. 2023 (Canadian time). 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 reactivated structural zone with known uranium mineralisation but limited exploration as the basin sediment cover is thicker than for the 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 far beyond unconformity 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.

The Company has developed an exploration framework to expedite discovery using proximal pathfinders, which includes a mix of geochemistry and geophysics to de-risk core drilling target selection: Refine ZTEM interpretation for basement conductors; Complete collection VTEM for sandstone alteration and fracturing; Initiate RC drilling along prospective corridors for uranium pathfinder geochemical halos; Plan ground geophysics for drill target definition; Final design of the diamond drill programs will follow completion and interpretation of the RC Drilling and both airborne and ground geophysics programs. Exploration results and plans are reviewed monthly by the board of directors. It will refine the novel framework under which exploration will be conducted, noting that Terra Uranium is the operator of all 100% owned projects and is unencumbered by joint venture mandates. Diamond drilling of the best responding geophysical and geochemical targets will proceed when technically acceptable.

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 5 months since listing on the ASX on 8 September 2022, the Company has now 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 with road and camp construction following the grant of the exploration permits.

Planned works including a very active winter RC drilling campaign, ground geophysics, as well as a summer diamond drilling program are now underway with the RC drilling having commenced. Drilling contractors for the RC drilling have been engaged in a very tight exploration market, mobilised and commenced the first hole on the 17th of February on the southern Parker Project. Drilling is expected to be completed in the by the end of March.

A total of 102 shallow RC holes have been designed to locate uranium geochemical pathfinders along strike of highest conductivity anomalies The drilling program is planned to consist of approximately 56 holes at Pasfield, 26 holes at Parker, and 20 at Hawkrock; to further prioritize its current 100,000 ha portfolio of mineral title and over 100 kilometres of uranium prospective conductive corridors derived from geophysical data collection. Airborne Geophysics is the main tool being used by Terra Uranium at this stage of exploration to target drilling under deep cover. Mineralisation is associated with structures (fluid pathways) in both the basement and into the overlying sandstones.

Geophysical signatures considered favourable for mineralisation include Magnetic lows (demagnetised zone) in the basement due to alteration and EM conductors detected with ZTEM and VTEM related to mineralisation and alteration in both basement and sandstone, and graphitic hosts in basement. VTEM has higher resolution but is limited to about 600m depth penetration, ZTEM can see conductors well beyond 1km below surface. The ZTEM Airborne Geophysics surveys have been completed and preliminary results received.

Multiple strong conductors have been confirmed at both Pasfield and Parker. Processing of final data has commenced and geophysical inversions to follow shortly. These will also be integrated with other geophysical results, including ANT.

The VTEM Airborne Geophysics to better define strong ZTEM results at Pasfield and Parker at shallower depths associated with fracturing and alteration in the sandstones has now been completed. Operations were suspended for Christmas/New Year but have now been completed. HawkRock VTEM survey has also now been completed but processing of the data is at a very early stage.