Namibia

Namibia is a mining friendly jurisdiction, and the uranium mining operators have built excellent infrastructure to support mining activities including a seaport, airport, well-established road network, water and power. In addition, mining accounts for 25% of Namibia’s income.

Madison is committed to top-level mining practices that will surpass country guidelines to minimize environmental impact. Madison’s desert location means the company will not relocate communities, wildlife or destroy large amounts of vegetation.

Madison already holds significant land holding within trucking distance of the Rössing (ML28) and Husab (ML171) mines. Earlier this year, Madison consolidated its various land holdings in the area under the property names Madison North and Madison West with the goal of building upon minable uranium resources by expanding currently known uranium zones and making new discoveries.

Location of ML86A, EPL-8905, other Madison properties and producing mines in the Erongo Uranium Province.

Assets Backing Sales Contract

Madison owns an 85% undivided interest in Exclusive Prospecting Licences (EPL) 8531 and 8115. These licenses are located in the renowned Erongo Uranium Province of Namibia, Africa, where Madison already holds rights to EPL 7011 (85% interest) and has an agreement in place to acquire a 90% interest in ML 86A and acquire a 24% direct interest in Mining Licence 121. Through these Transactions, Madison is looking to consolidate ownership of land holdings in the uranium province with the goal to build upon minable uranium resources by expanding currently known uranium zones and making new discoveries. Namibia is the world’s second-highest uranium-producing country and holds the fifth-largest total uranium resources in the world.

EPL-8531 highlights

Geological and structural setting of EPL-8531.

Airborne radiometric signature and targets (blue outline) over EPL-8531. The white dots represent drillholes over the two different targets.

* As reported in the Madison news release dated September 19, 2022:

“In 2015, drilling over two of the targets totalled 3,720 metres of reverse circulation (RC) drilling from 50 drill holes. Based on this drilling, SRK Consulting (UK) Limited (“SRK”) prepared an initial Mineral Resource Estimate for the intersected uranium mineralization, in accordance with the disclosure standards of JORC. The estimate, dated November 2015, was entitled “MINERAL RESOURCE ESTIMATE, EPLS3524 AND 3624, NAMIBIA.”

SRK derived an Inferred Mineral Resource Estimate of 15.6 Mt grading at 260 ppm U₃O₈ for a contained metal total of 9.0 Mlbs U₃O₈. Madison’s attributable ownership of the resource will amount to 7.65 million pounds (Mlbs) U₃O₈.

The SRK estimate is considered to be a “historical estimate” under National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). It is not considered by the Company to be current and the Company is not treating it as such. A Qualified Person has not done sufficient work to classify the historical estimate as current mineral resources. Madison would need to review and verify the previous drill-hole data and conduct an exploration program to verify the historical estimate as a current mineral resource.”

EPL-8115 highlights

• Located 18 km southwest of the Rössing Uranium Mine
• Relatively under-explored
• Favourable geology (basement rocks intruded by leucogranites), which coincides with airborne radiometric anomalies

ML86A and EPL-8905

Airborne radiometric signature and targets (blue outline) over ML86A and EPL-8905.

ML86A and EPL-8905 together form a contiguous land package of 7.86 km² located approximately 51 km east-northeast of the city of Swakopmund and immediately southwest of the producing Rössing Mine (Figure 1). The two properties cover anomalous prospective radiometric signatures that can be traced from Madison’s EPL-7011 and ML121 (Figure 2). The geological and structural setting of ML86A and EPL-8905 bears a strong resemblance to the Rössing deposit, with uranium-anomalous granites concentrated at the Khan-Rössing and/or Khan-Arandis boundary within the north-northeast trending deformation corridor of the Welwitschia magnetic lineament (Figure 3). ML86A and EPL-8905 thus have significant potential for leucogranite-hosted uranium mineralization.

Geological and structural setting of ML86A and EPL-8905.

ML-121

Figure 1: Location of ML121, EPL-7011 owned by Madison, and uranium producing mines in Namibia’s Erongo Uranium Province

• Mining license in place for dimension stone

ML121, which contains the Charlie Drilling uranium occurrence, is located 46 kilometres (km) east-northeast of the city of Swakopmund spanning an area of approximately 35 km². The mining license covers base and rare metals, dimension stone, industrial minerals, nuclear fuel minerals and precious metals.

ML121 has significant potential for leucogranite-hosted uranium mineralization given that its geological and structural setting bears a strong resemblance to the Rössing deposit, with uranium-bearing granites concentrated at the Khan-Rössing boundary within the north-northeasterly trending deformation corridor of the Welwitschia magnetic lineament (Figure 2).

Historical airborne radiometric surveys over ML121 indicate anomalous prospective radiometric signatures (Figure 3) with the most noteworthy anomalies being related to isoclinal fold noses at the contact of the Khan and Rössing formations. Exploration work to date has focused on the radiometric anomaly in the northwest portions of ML121. The 2.3 km long anomaly was followed up with six (6) diamond drill holes and 59 reverse circulation drill holes. Madison will undertake an independent review and verification of the data to define an NI 43-101 compliant resource.

 Figure 2: Geological and structural setting of ML121

Figure 3: Airborne radiometric signature and targets (blue outline) over ML121. The black dots represent drillholes over the northwestern anomaly.