2017: Year of Acquisition and Preparation


Dear Friends and Stakeholders of GoviEx Uranium Inc. (“GoviEx” or the “Company”),
As the holiday season comes to a close, we have taken time to reflect on the events that
affected GoviEx during 2017 and to share our vision for the future.

Commodity Price
The nine year bear market which took spot down from approximately US$140/lb U3O8 in 2007 seems to have turned the corner and has slowly begun to turn upwards. After an initial surge, gains in the spot uranium price remained relatively muted during 2017, trading between $20 and $21/lb U3O8 for most of the year, as inventories and excess supply weighed heavily on the price. However, the year ended with announcements of significant production cuts by major uranium producers, with an approximately one-million-pound-U3O8-per-annum production cut at AREVA’s Somair Project in Niger, followed by Cameco’s announcement to suspend production at its McArthur River Mine, the world’s largest producing uranium mine, for at least 10 months starting this month, which is expected to be a cut of approximately 15-18 million pounds of U3O8 in 2018. Kazatomprom then followed up with another production cut of approximately
28.6 million pounds of U3O8 over the next three years, adding to the 10% cut it announced at the end of 2016.

Nuclear Revival
Nuclear reactor demand, which represents the primary end use for uranium, is forecast by theWorld Nuclear Association to increase steadily to 2030 and beyond. There are estimated to be 60 reactors under construction and another 164 reactors planned to be constructed worldwide, with China leading the movement. Japan also is restarting reactors and continues to target nuclear energy as 20% of the nation’s total energy generation. Along with forecast increased demand for uranium, the announced production cuts from the major producers, as well as the uranium price being currently below the price required to incentivize new production, the Ux Consulting Company has changed their uranium market forecast from one of supply surplus to supply deficit in 2018.

Company Developments
GoviEx has one of the largest total, publicly-held, uranium Mineral Resources bases amongst its peer group and two mine-permitted projects. GoviEx has been preparing for the forecasted improvement in the condition of the uranium market by focusing on consolidating land positions accretive to our existing mine-permitted projects and reviewing technology options with the target of improving the economic potential of our projects in order to be in a better position to advance our mine-permitted projects towards a potential production decision once uranium prices increase.

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