U308 Project Generating Co. Partners with Neighbor
Research Report

1. Skyharbour Resources Ltd. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$3,000 and US$6,000.
2. As of the date of this article, officers, contractors, shareholders, and/or employees of Streetwise Reports LLC (including members of their household) own securities of  North Shore Resources and Terra Clean.
3. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
4. This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

For additional disclosures, please click here.

Disclosures for Fundamental Research Corp., Skyharbour Resources Ltd., December 1, 2025

Fundamental Research Corp. Equity Rating Scale (ratings are not a recommendation to acquire, dispose of, or take no action regarding a security; the definitions of our ratings are explained below): Buy – Fair value is 12% above the current market price; or risk and reward is favorable Hold – Fair value is between 5% to 12% above the current market price Sell – Fair value is 5% above, or less, than the current market value; or risk and reward is unfavorable Suspended or Rating N/A— Coverage and ratings suspended until more information can be obtained from the company regarding recent events. Fundamental Research Corp. Risk Rating Scale: 1 (Low Risk) - The company operates in an industry where it has a strong position (for example a monopoly, high market share etc.) or operates in a regulated industry. The future outlook is stable or positive for the industry. The company generates positive free cash flow and has a history of profitability. The capital structure is conservative with little or no debt. 2 (Below Average Risk) - The company operates in an industry where the fundamentals and outlook are positive. The industry and company are relatively less sensitive to systematic risk than companies with a Risk Rating of 3. The company has a history of profitability and has demonstrated its ability to generate positive free cash flows (though current free cash flow may be negative due to capital investment). The company’s capital structure is conservative with little to modest use of debt. 3 (Average Risk) - The company operates in an industry that has average sensitivity to systematic risk. The industry may be cyclical. Profits and cash flow are sensitive to economic factors although the company has demonstrated its ability to generate positive earnings and cash flow. Debt use is in line with industry averages, and coverage ratios are sufficient. 4 (Speculative) - The company has little or no history of generating earnings or cash flow. Debt use is higher. These companies may be in start-up mode or in a turnaround situation. These companies should be considered speculative. 5 (Highly Speculative) - The company has no history of generating earnings or cash flow. They may operate in a new industry with new, and unproven products. Products may be at the development stage, testing, or seeking regulatory approval. These companies may run into liquidity issues and may rely on external funding. These stocks are considered highly speculative. Definition of FRC’s Fair Value Estimate – Our fair value estimate is the theoretical value of the company’s equity using widely accepted methods of valuation such as discount cash flow or comparables. IT IS NOT A TARGET PRICE or PREDICTION OF THE FUTURE STOCK PRICE. Disclaimers and Disclosure Analyst Certification: The views expressed in this report accurately reflect the personal views of the analyst, and no part of their compensation was, is, or will be directly or indirectly related to the specific recommendation or views expressed. Any “forward looking statements” are our best estimates and opinions based upon information that is publicly available and that we believe to be correct, but we have not independently verified with respect to truth or correctness. There is no guarantee that our forecasts will materialize. Actual results will likely vary. The analyst and Fundamental Research Corp. “FRC” do not own any shares of the subject company, do not make a market or offer shares for sale of the subject company, and do not have any investment banking business with the subject company. Fees ranging between $25,000 and $35,000 have been paid to FRC by SYH to commission this report, research coverage, and distribution of reports. This fee creates a potential conflict of interest which readers should consider. FRC takes steps to mitigate conflicts including setting fees in advance and utilizing analysts who must abide by CFA Institute Code of Ethics and Standards of Professional Conduct. Additionally, analysts may not trade in any security under coverage. Our full editorial control of all research, timing of release of the reports, and release of liability for negative reports are protected contractually. The issuer has agreed to a minimum coverage term and coverage cannot be unilaterally terminated. Distribution procedure: our reports are distributed first to our web-based subscribers on the date shown on this report then made available to delayed access users through various other channels for a limited time. The distribution of FRC’s ratings are as follows: BUY (71%), HOLD (3%), SELL / SUSPEND (26%). This report contains "forward looking" statements. Forward-looking statements regarding the Company and/or stock’s performance inherently involve risks and uncertainties that could cause actual results to differ from such forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, continued acceptance of the Company's products/services in the marketplace; acceptance in the marketplace of the Company's new product lines/services; competitive factors; new product/service introductions by others; technological changes; dependence on suppliers; systematic market risks and other risks discussed in the Company's periodic report filings, including interim reports, annual reports, and annual information forms filed with the various securities regulators. By making these forward-looking statements, Fundamental Research Corp. and the analyst/author of this report undertakes no obligation to update these statements for revisions or changes after the date of this report. A report initiating coverage will most often be updated quarterly while a report issuing a rating may have no further or less frequent updates because the subject company is likely to be in earlier stages where nothing material may occur quarter to quarter. Fundamental Research Corp DOES NOT MAKE ANY WARRANTIES, EXPRESSED OR IMPLIED, AS TO RESULTS TO BE OBTAINED FROM USING THIS INFORMATION AND MAKES NO EXPRESS OR IMPLIED WARRANTIES OR FITNESS FOR A PARTICULAR USE. ANYONE USING THIS REPORT ASSUMES FULL RESPONSIBILITY FOR WHATEVER RESULTS THEY OBTAIN FROM WHATEVER USE THE INFORMATION WAS PUT TO. ALWAYS TALK TO YOUR FINANCIAL ADVISOR BEFORE YOU INVEST. WHETHER A STOCK SHOULD BE INCLUDED IN A PORTFOLIO DEPENDS ON ONE’S RISK TOLERANCE, OBJECTIVES, SITUATION, RETURN ON OTHER ASSETS, ETC. ONLY YOUR INVESTMENT ADVISOR WHO KNOWS YOUR UNIQUE CIRCUMSTANCES CAN MAKE A PROPER RECOMMENDATION AS TO THE MERIT OF ANY PARTICULAR SECURITY FOR INCLUSION IN YOUR PORTFOLIO. This REPORT is solely for informative purposes and is not a solicitation or an offer to buy or sell any security. It is not intended as being a complete description of the company, industry, securities or developments referred to in the material. Any forecasts contained in this report were independently prepared unless otherwise stated and HAVE NOT BEEN endorsed by the Management of the company which is the subject of this report. Additional information is available upon request. THIS REPORT IS COPYRIGHT. YOU MAY NOT REDISTRIBUTE THIS REPORT WITHOUT OUR PERMISSION. Please give proper credit, including citing Fundamental Research Corp and/or the analyst, when quoting information from this report. The information contained in this report is intended to be viewed only in jurisdictions where it may be legally viewed and is not intended for use by any person or entity in any jurisdiction where such use would be contrary to local regulations or which would require any registration requirement within such jurisdiction.

Skyharbour Resources Ltd. (SYH:TSX.V; SYHBF:OTCQX; SC1P:FSE) secured Denison Mines Corp. (DML:TSX; DNN:NYSE.MKT) as a joint venture (JV) partner to advance its Russell Lake uranium project in Saskatchewan's Athabasca Basin, reported Sid Rajeev, head of research at Fundamental Research Corp. (FRC), in a Dec. 1 research note. FRC raised its fair value target price on Skyharbour by 11% after applying sector multiples to the company's flagship assets.

"We believe the partnership with Denison strengthens Skyharbour's position in the Athabasca Basin, validates Russell Lake and provides funding and operational support," Rajeev wrote.

211% Return Implied

FRC's new fair value target on the Canadian uranium project generator is CA$1.12 per share (CA$1.12/share), previously CA$1.01, noted Rajeev. In comparison, the uranium company was trading at about CA$0.36/share at the time of the head of research's report. From that share price, the return to FRC's new fair value target is 211%.

Skyharbour remains a Buy.

The company has 204 million shares outstanding. Its market cap is CA$74 million (CA$74M). Its 52-week range is CA$0.28–0.50/share.

Details of the Deal

According to its agreement with Skyharbour, Denison, a top-tier uranium company, may acquire a percentage of the Russell Lake claims for up to CA$61.5M, Rajeev explained. This total consideration consists of CA$21.5M in cash plus shares and CA$40M spent on exploration over seven years. (Russell Lake is strategically located between Skyharbour's Moore project and Denison's Wheeler River project.)

"Assuming an average interest of 48% across the claims, the transaction implies a value for the entire project of CA$128M, considerably higher than our June 2025 valuation of CA$88M," Rajeev wrote.

The Russell Lake claims were divided into four joint venture projects: Russell Lake (53,192 hectares [53,192 ha]), Getty East (3,105 ha), Wheeler North (16,409 ha), and Wheeler River Inliers (608 ha), noted the head of research. Together, the quartet comprises a 73,314-ha land package and boasts 35+ kilometers of untested targets.

Specifically, Denison may earn up to a 70% interest in both Wheeler North and Wheeler River Inliers, where it will take the lead. Denison may earn up to a 30% stake in Getty East and up to a 20% interest in Russell Lake, at both of which Skyharbour will remain the operator. The geological teams of both companies collaborate. Skyharbour and Denison have exploration and drilling programs planned for 2026 at Russell Lake, Getty East, and Wheeler River.

Upon completion of the Denison transaction, Skyharbour's balance sheet will be robust with about CA$9.5M in cash. Plus, in-the-money options could generate CA$0.35M.

Updates on Optioned Projects

Skyharbour's project portfolio consists of 37 properties together spanning 616,939 ha in the Athabasca Basin, noted Rajeev. Of this total, 14 projects are under JV or option agreements with 10 partners. These partners continue advancing their projects, such that they collectively completed about 12,000 meters (12,000m) of drilling recently.

Were all of these option agreements executed fully, Skyharbour could get up to CA$42M in cash and shares.

According to FRC, here are the latest developments at some of Skyharbour's JV or optioned projects:

914W: Mustang Energy Corp. (MEC:CSE; MECPF:OTC; 92T:FRA) identified at 914W "a conductive zone consistent with graphitic basement rocks and fault-bound alteration zones, indicating potential for an unconformity type of uranium mineralization," reported Rajeev.

South Falcon East: Results from Terra Clean Energy Corp.'s (TCEC:CSE; TCEFF:OTC; C900:FSE) winter 2025 drill program showed that four of the seven holes hit wide zones of uranium mineralization.

Falcon: North Shore Uranium Ltd. (NSU:TSX.V) completed a prospecting program at Falcon, the results of which are pending. Thus far, the company identified 36 uranium targets there.

South Dufferin: UraEx Resources Inc., a private company, finished a 2,600m maiden drill program there.

Preston: JV partner Orano Canada completed 6,000m of drilling at the project, testing high-priority targets at 200–350m depths.

Uranium Market in Brief

Rajeev pointed out that demand and sentiment for uranium are growing. Signs include the Sprott Physical Uranium Trust (U.U:TSX; SRUUF:OTCMKTS), the world's largest physical uranium fund, having added 74,000,000 pounds of uranium to its holdings in the past 12 months, reflecting a 12% year-over-year rise. Also, the Trump Administration is accelerating approvals in the U.S. nuclear sector. Major tech companies are contracting for long-term supplies of nuclear power to support their artificial intelligence and data center growth.

Yet on the uranium supply side, the supply chain is insecure, especially because Russia controls 35% of global enrichment capacity.

For the past year, uranium prices have stayed the same at about US$76 per pound, noted Rajeev.

Events to Watch For

FRC's head of research wrote that Skyharbour has many potential catalysts ahead between now and the end of next year. One is improving uranium sentiment.

Others are drill data from the 16,000m of drilling recently done at both Russell Lake and Moore, maybe an NI 43-101 mineral resource estimate for Moore, and results of partner-funded exploration efforts. Major drilling next year by Skyharbour and Denison, and the subsequent results could catalyze SYH, as could Skyharbour entering into additional option agreements.