Cosa Resources Announces Commencement of Drilling at the 100% Owned Ursa Uranium Project, Athabasca Basin, Saskatchewan

Highlights

• Drilling at the Kodiak target area will follow-up a significant zone of sandstone alteration and structure with geochemical enrichment intersected by 2024 drill hole UR24-03
• Drilling at the Grizzly target area will evaluate the down-dip extension of strongly anomalous uranium geochemistry with structure and alteration intersected in multiple historical drill holes
• Optimal targets remain untested at both Kodiak and Grizzly

Keith Bodnarchuk, President and CEO, commented: “With drilling now underway, we are very excited by the strength of this program’s targets. Over the past 12 months the team has progressed Ursa from a high upside and severely underexplored project to one that has been strategically advanced by modern geophysics and is ready for more focused drill testing. Our efforts have produced 10 key target areas including the first follow-up drill targets at Kodiak and Grizzly. We have moved forward from reconnaissance-stage exploration to focusing in on areas displaying key components associated with uranium discoveries. Identifying multiple geologically derived drill targets early in Cosa’s exploration tenure at Ursa is a major testament to the hard work and dedication put forth by the technical team and to the prospectivity of the Ursa Project overall. We will have steady news flow for the remainder of 2024 and remain fully funded to complete our exploration plans into 2025.”

Andy Carmichael, Vice President Exploration, commented: “We have been eager to resume drilling at Ursa since the promising results at Kodiak from our initial drilling campaign this past winter. Since then, the team has been busy interpreting that program’s geochemical results, completing ANT surveys at Ursa and Orion, and continuing to analyze historical work on the Project. These efforts have confirmed the prospectivity of the Kodiak area and upgraded the Grizzly area where historical drilling produced some of the most compelling sandstone geochemistry on the Project. We expect initial ANT results will assist in prioritization of targets along the 27 kilometres of conductive strike length covered by the survey and to help guide follow-up of our winter drill results at Kodiak.”

Diamond Drilling Objectives

Up to 4,000 metres of diamond drilling is planned at Ursa over the coming weeks. The objectives of the program are to follow-up the results of winter drilling at the Kodiak target area, follow-up on compelling geochemistry identified in historical drilling, and complete an initial test of Ambient Noise Tomography (ANT) derived target areas (Figure 1).

At Kodiak, drilling will follow-up on the broad zone of pervasive alteration coincident with faulting and dravitic breccias intersected by UR24-03, the final drill hole of the winter program. Geochemistry from the winter program determined that the sandstone in UR24-03 contains anomalous levels of uranium and uranium pathfinder elements, further upgrading the area and confirming its status as a priority follow-up target for the summer drilling program (Figures 1 and 2). Significantly, UR24-03 contains the highest average uranium content in the basal 40 metres of sandstone of any drill hole completed on the Project to date.

At Grizzly, continued interpretation of winter electromagnetic survey data and historical drilling results has upgraded the target area (Figures 1 and 3). Historical drill hole CR-06 (1996) intersected a 100-metre interval of highly anomalous geochemistry associated with hydrothermal alteration and faulting in the sandstone well above the unconformity. Drill hole CR-15 (2002) was completed to follow-up CR-06 and intersected significant alteration, structure and multiple zones of strongly anomalous geochemistry in the sandstone. CR-15 is interpreted to have overshot the optimal target by up to 100 metres. Although compelling, these results were not followed-up as CR-15 was the final hole completed prior to Cosa acquiring the Project grounds in 2022.

Depending on the results of initial drilling at the Kodiak and the Grizzly target areas, Cosa plans to test at least one target area identified from Ambient Noise Tomography (ANT) surveying. The ANT survey, completed in May and June, covered 27 kilometres of the conductive trend extending northeast and southwest from the Kodiak target area which hosts all historical intersections of weak uranium mineralization on the Property (Figure 1). ANT uses naturally occurring seismic activity to produce a three-dimensional model of seismic velocity in the subsurface which Cosa believes has strong potential to highlight large zones of alteration and structure in the sandstone commonly associated with uranium deposits within the Athabasca Basin. Initial results and models from the ANT survey are due in September.

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About Cosa Resources Corp.

Cosa Resources is a Canadian uranium exploration company operating in northern Saskatchewan. The portfolio comprises roughly 216,000 ha across multiple projects in the Athabasca Basin region, all of which are underexplored, and the majority reside within or adjacent to established uranium corridors.

Cosa’s award-winning management team has a long track record of success in Saskatchewan. In 2022, members of the Cosa team were awarded the AME Colin Spence Award for their previous involvement in discovering IsoEnergy’s Hurricane deposit. Prior to Hurricane, Cosa personnel led teams or had integral roles in the discovery of Denison Mines’ Gryphon deposit and 92 Energy’s Gemini Zone and held key roles in the founding of both NexGen and IsoEnergy.

Cosa’s primary focus through 2024 is initial drilling at our Ursa Project, which captures over 60-kilometres of strike length of the Cable Bay Shear Zone, a regional structural corridor with known mineralization and limited historical drilling. It potentially represents the last remaining eastern Athabasca corridor to not yet yield a major discovery. Modern geophysics completed by Cosa in 2023 identified multiple high-priority target areas characterized by conductive basement stratigraphy beneath or adjacent to broad zones of inferred sandstone alteration – a setting that is typical of most eastern Athabasca uranium deposits. Initial drilling results from Ursa in winter 2024 are positive and include the intersection of a broad zone of alteration with associated structure in the Athabasca sandstone located 250 to 460 metres above the sub-Athabasca unconformity. Follow-up is planned in the second half of 2024.

Qualified Person

The Company’s disclosure of technical or scientific information in this press release has been reviewed and approved by Andy Carmichael, P.Geo., Vice President, Exploration for Cosa. Mr. Carmichael is a Qualified Person as defined under the terms of National Instrument 43-101.

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