AIM Release

Admission to trading on AIM and First Day of Dealings Yellow Cake, a specialist company operating in the uranium sector with a view to hold long term physical uranium ( "U3O8"), is pleased to announce that its ordinary shares have today been admitted to trading on the AIM market of the London Stock Exchange under the ticker YCA ("Admission") and ISIN JE00BF50RG45.

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Yellow Cake was created and incorporated by Bacchus Capital Advisers ("Bacchus Capital") to offer shareholders exposure to the uranium price, without the risks associated with investment in companies that explore for, develop, mine or otherwise process uranium. Additionally, the Company intends to use its expertise in order to exploit a range of expected opportunities connected with owning U3O8; including the trading of U3O8, optimisation of logistics associated with the trading of U3O8, generating revenue from the lending of U3O8, and uranium-based financing initiatives such as commodity streaming and royalties.

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Admission details:

• In conjunction with the Admission, the Company has successfully raised gross proceeds of approximately £151 million (c. US$200 million) through an oversubscribed placing and subscription of approximately 76 million ordinary shares (the "Offering" together with the Admission, the "IPO") with the placing taking place at a price of 200 pence per share (the "Issue Price").

• On Admission, the Company will have 76.2 million ordinary shares in issue.

• The Company will utilise the proceeds of the IPO to purchase approximately 8.1 million pounds of U3O8 at a price of US$21.01 per pound under its contract with Kazatomprom (the "Contract Purchase Price"), one of the world's largest, and, understood to be, one of the lowest cost producers of uranium.

• This acquisition represents one quarter of Kazatomprom's annual production (2016 marketed production, prior to Kazatomprom's recently announced production cuts as reported by the World Nuclear Association) and approximately 5% of 2016 global marketed production.

• Yellow Cake is pleased to note that the spot price is approximately US$22.55 per pound, and is approximately 7.5% higher than the Contract Purchase price, as reported by the Ux Consulting Company, LLC ("UxC") on 25 June 2018.

• In addition to establishing Yellow Cake, Bacchus Capital acted as IPO adviser. Numis Securities Limited ("Numis") is acting as Nominated Adviser and Joint Broker to the Company in respect of the IPO. Joh. Berenberg, Gossler & Co. KG, London Branch ("Berenberg") is acting as Joint Broker to the Company in respect of the IPO. Olivetree Financial Limited and Scott Harris UK Ltd acted as Selling Agents

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Andre Liebenberg, CEO of Yellow Cake, said: "We are delighted with the outcome of this offering and the strong support from investors for Yellow Cake. Due to an exceptional set of circumstances, uranium is one of the few commodities yet to recover from the recent commodities bear market and we believe that uranium is currently fundamentally and structurally mispriced.

 

Yellow Cake's long-term supply contract with Kazatomprom has allowed us to secure a highly significant and strategic position in physical uranium, at a competitive price, and to offer that exposure to a potential resurgence in the uranium price to investors, while avoiding direct exposure to exploration, development, mining and processing risk.

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I would like to welcome our new shareholders to Yellow Cake."

 

Peter Bacchus, Chairman & Chief Executive of Bacchus Capital, said: "The highly successful initial public offering of Yellow Cake demonstrates the depth and breadth of interest emerging in uranium as a commodity, and reflects the U.K. market's continued strong support for the natural resources sector where an opportunity presented is on-theme, clearly articulated and compelling in nature. Andre and his highly credentialed team will be outstanding stewards of the business and I wish them every success."