NexGen Drills Most Off-Scale to Date in A3 Shear and Expands Arrow with Extensive Zones of Mineralization Across Key Growth Areas

2017-10-02

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Canada NewsWire

VANCOUVER, Oct. 2, 2017

VANCOUVER, Oct. 2, 2017/CNW/ -NexGen Energy Ltd. ("NexGen" or the "Company") (TSX:NXE, NYSE:NXE)is pleased to report radioactivity results for 22 holes as part of the on-going summer drilling program on our 100% owned, Rook I property, AthabascaBasin, Saskatchewan. An additional diamond drill rig was brought into operation to assess the recently discovered South Arrow zone, which is located 400 m south of the Arrow Deposit.

Eight diamond drill rigs are now active at the Arrow Deposit and South Arrow with infill, step-out and exploration drilling underway. In addition, one sonic drill rig testing subsurface conditions as part of the pre-feasibility geotechnical study has successfully completed its work. Additional geotechnical drilling continues utilizing a diamond drill rig. Initial geotechnical drilling discovered an interval of semi-massive pitchblendemineralization 130 mnorthwest and up-dipfrom the A1 mineral resource domain.

A3 High Grade Domain Infill Drilling

Infill hole AR-17-147c3 intersected 79.5 m of total composite mineralizationincluding 17.35 m of total composite off-scale radioactivity(>10,000 to >61,000 cps) within a 114.5 m section (542.0 to 656.5 m). This intersection is the most extensive off-scale radioactivityintersected in the A3 shear to date (see Figure 1). Infill hole AR-17-147c4 intersected 67.5 m of total composite mineralizationincluding 5.45 m of total composite off-scale radioactivity(>10,000 to >61,000 cps) within a 182.0 m section (588.0 to 770.0 m). Infill hole AR-17-155c2 intersected 41.0 m of total composite mineralizationincluding 5.15 m of total composite off-scale radioactivity(>10,000 to >61,000 cps) within a 100.0 m section (486.5 to 586.5 m).

Expansion in the Southwest and Northeast Gaps

In the resource growth areasof the southwest and northeast gaps, broad zones of mineralization including off-scale radioactivity have been intersectedthroughout (Figure 2).

Step-out hole AR-17-129c5intersected 71.0 m of total composite mineralizationincluding 5.85 m of total composite off-scale radioactivity(>10,000 to >61,000 cps) within a 295.0 m section (616.5 to 911.5 m) in the A2 through A5 shears in the northeast gap. Step-out hole AR-17-156c1intersected 38.0 m of total composite mineralizationincluding 3.0 m of total composite off-scale radioactivity(>10,000 to 30,500 cps) within a 87.0 m section (657.0 to 744.0 m) in the A3 and A4 shears in the southwest gap. Step-out hole AR-17-146c2intersected 36.0 m of total composite mineralizationincluding 2.55 m of total composite off-scale radioactivity(>10,000 to >61,000 cps) within a 121.0 m section (661.5 to 782.5 m) in the A3 and A4 shears in the southwest gap.

Geotechnical Drilling

Geotechnical drilling testing subsurface conditions as part of the pre-feasibility study has intersected uranium mineralization northwest of the A1 shear indicating the potential for additional shears to the northwest (see Figure 3).

Geotechnical hole GAR-17-001 intersected 34.5 m of total composite mineralizationincluding 0.9 m of continuous off-scale radioactivity(>10,000 to 54,000 cps) within a 265.5 m section (272.0 to 537.5 m).

Arrow Activities & Financial

The eight diamond drill rig summer development and exploration program consisting of an expanded 35,000 m of drilling continues to be fully operational. Multiple advanced technical studies including geotechnical drilling, hydrogeological work, environmental and metallurgy are underway. The Company has cash on hand of approximately $185 million.

Longitudinal sections, a cross section view of GAR-17-001, and drill hole locations are shown in Figures 1 to 4.

Garrett Ainsworth, Vice-President, Exploration and Development, commented: "The summer drill program's objectives of increasing indicated mineral resources through infill, and inferred mineral resources through step-outs continue to be achieved. An important characteristic of the basement-hosted Arrow Deposit is its high degree of continuity in grade and thickness, which continues to be observed across the Deposit including in the A3 High Grade Domain where we expect a high conversion of inferred to indicated mineral resources. Expansion is also clearly evident through step-out drilling in the A4 shear, southwest and northeast gaps as well as the potential for a new shear to the northwest of the A1.

Leigh Curyer, Chief Executive Officer, commented: "These latest results which include the most extensive off-scale mineralization seen to date in the A3 shear highlights considerable future drilling is required to determine the full extent of Arrow. Infill drilling continues to demonstrate the intensity of mineralization often increases which is significant from a mine optimization planning perspective. Further, pre-feasibility study programs incorporating advanced engineering and environmental work is in full flight. Together, with the increase in drilling focus on the exciting South Arrow Discovery, NexGen is at an exciting stage of development."

Table 1: Arrow Deposit Drill Hole Data

| Drill Hole | Athabasca Group - Basement Unconformity Depth (m) | Handheld Scintillometer Results (RS-120) | | | | | | | | Hole ID | Azimuth | Dip | Total Depth (m) | From (m) | To (m) | Width (m) | CPS Range | | | AR-17-129c5 | 327 | -70 | 960.50 | N/A | 616.50 | 617.00 | 0.50 | 61000 | | | | | | | 728.50 | 730.00 | 1.50 | 61000 | | | | | | | 766.00 | 774.00 | 8.00 | 61000 | | | | | | | 777.50 | 781.00 | 3.50 | 61000 | | | | | | | 784.50 | 789.50 | 5.00 | 61000 | | | | | | | 938.00 | 938.50 | 0.50 | 600 - 3900 | | | AR-17-146c1 | 327 | -70 | 910.50 | 110.40 | 630.50 | 631.50 | 1.00 | 61000 | | | AR-17-146c3 | 327 | -70 | 993.50 | N/A | 677.00 | 677.50 | 0.50 | 61000 | | | | | | | 572.00 | 573.00 | 1.00 | 61000 | | | | | | | 599.00 | 599.50 | 0.50 | 61000 | | | | | | | 651.50 | 656.50 | 5.00 | 61000 | | | | | | | 655.00 | 660.50 | 5.50 | 61000 | | | | | | | 733.00 | 735.50 | 2.50 | 61000 | | | | | | | 736.50 | 737.50 | 1.00 | 61000 | | | | | | | 584.50 | 586.50 | 2.00 | <500 - 950 | | AR-17-1556c1 | 327 | -70 | 858.5 | N/A | 657.50 | 662.00 | 4.50 | <500 - 12900 | | | | | | | 664.50 | 665.00 | 0.50 | <500 - 1300 | | | | | | | 671.50 | 674.00 | 2.50 | <500 - 21000 | | | | | | | 676.50 | 703.00 | 26.50 | <500 - 30500 | | | | | | | 707.50 | 711.00 | 3.50 | <500 - 3600 | | | | | | | 743.50 | 744.00 | 0.50 | <500 - 560 | | GAR-17-001 | 327 | -70 | 597.1 | 115 | 272.00 | 277.00 | 5.00 | <500 - 1150 | | | | | | | 280.00 | 301.00 | 21.00 | <500 - 2300 | | | | | | | 417.50 | 419.50 | 2.00 | <500 - 700 | | | | | | | 493.50 | 494.00 | 0.50 | <500 - 700 | | | | | | | 531.50 | 537.50 | 6.00 | <500 - 54000 |

Parameters:

Maximum internal dilution 2.00 m downhole All depths and intervals are meters downhole, true thicknesses are yet to be determined. Resource modelling in conjunction with an updated mineral resource estimate is required before true thicknesses can be estimated. "Anomalous" means >500 cps (counts per second) total count gamma readings by gamma scintillometer type RS-120 "Off-scale" means >10,000 cps (counts per second) total count gamma readings by gamma scintillometer type RS-120 Where "Min cps" is <500 cps, this refers to local low radiometric zones within the overall radioactive interval

Arrow Deposit Drilling

AR-17-129c5

Hole AR-17-129c5 was a directional hole that departed its pilot hole at a depth of 471 m. This step-out hole was designed to test the A4 shear approximately 50 m up-dip of AR-17-129c1. Directional drilling was initiated at 486 m. The A3 and A4 shears were both intersected at an inclination of -60°. Basement lithologies were intersected beginning at the top of the hole and consisted largely of semi-pelitic gneiss to granofel and relatively narrow intervals of pelitic gneiss and mylonite (the A3 and A4 shears). Anomalous to strongly anomalous radioactivity was intersected in the A3 and A4 shears in association with stringers, disseminated, foliation, and fracture-controlled mineralization. A total composite mineralization of 71.0 m including 5.85 m of off-scale radioactivity (>10,000 to >61,000 cps) was intersected within a 295.0 m section (616.5 to 911.5 m). In the A3 shear, 49.0 m of composite mineralization including 2.35 m of off-scale radioactivity was intersected. In the A4 shear, 17.0 m of composite mineralization including 3.1 m of off-scale radioactivity was intersected. An additional 1.5 m of composite mineralization was intersected in the A2 shear and 3.5 m of composite mineralization including 0.4 m of off-scale radioactivity was intersected in the A5 shear. The hole was terminated at 960.5 m.

AR-17-129c6

Hole AR-17-129c6 was a directional hole that departed its pilot hole at a depth of 504 m. This step-out hole was designed to test A4 shear 50 m down-dip and northeast of AR-15-57c2. Directional drilling was initiated at 516 m. The A4 shear was intersected at an inclination of -64°. Basement lithologies were intersected beginning at the top of the hole and consisted largely of semi-pelitic gneiss to granofel and relatively narrow intervals of pelitic gneiss and mylonite (the A3 and A4 shears). Anomalous radioactivity was intersected in the A4 shear in association with disseminated and fracture-controlled uranium mineralization. A total composite mineralization of 2.5 m was intersected within a 222.5 m section (595.0 to 817.5 m). In the A4 shear, 2.0 m of composite mineralization was intersected. An additional 0.5 m of mineralization was intersected in the A5 shear. The hole was terminated at 876.5 m.

AR-17-129c7

Hole AR-17-129c7 was a directional hole that departed its pilot hole at a depth of 255 m. This step-out hole was designed to test A4 shear 15 m up-dip and northeast of AR-15-57c3. Directional drilling was initiated at 268 m. The A3 and A4 shears were intersected at an inclination of -64°. Basement lithologies were intersected beginning at the top of the hole and consisted largely of semi-pelitic gneiss to granofel and relatively narrow intervals of pelitic gneiss and mylonite (the A3 and A4 shears).

Anomalous to strongly anomalous radioactivity was intersected in the A3 and A4 shears in association with stringers, disseminated, foliation, and fracture-controlled mineralization. A total composite mineralization of 28.5 m including 1.4 m of off-scale radioactivity (>10,000 to >58,000 cps) was intersected within a 207.0 m section (650.0 to 857.0 m). In the A3 shear, 11.5 m of composite mineralization was intersected. In the A4 shear, 12.5 m of composite mineralization including 1.3 m of off-scale radioactivity was intersected. An additional 4.5 m of composite mineralization was intersected in the A5 shear including 0.1 m of off-scale radioactivity. The hole was terminated at 960.5 m.

AR-17-143c2

Hole AR-17-143c2 was a directional hole that departed pilot hole AR-17-143c1 at a depth of 204 m. This step-out hole was designed to the southwest gap 50 m up-dip of AR-17-143c1. Directional drilling was initiated at 219 m. The A4 shear was intersected at an inclination of -68°. Basement lithologies were intersected beginning at the top of the hole and consisted largely of semi-pelitic and relatively narrow intervals of pelitic gneiss and mylonite (the A4 shear). Anomalous radioactivity was intersected in the A4 shear in association with disseminated uranium mineralization. A total composite mineralization of 0.5 m was intersected in the A4 shear. The hole was terminated at 729.5 m.

AR-17-143c3

Hole AR-17-143c3 was a directional hole that departed pilot hole AR-17-143c2 at a depth of 221 m. This step-out hole was designed to the southwest gap 50 down dip of AR-17-143c1. Directional drilling was initiated at 231 m. The A4 shear was intersected at an inclination of -72°. Basement lithologies were intersected beginning at the top of the hole and consisted largely of semi-pelitic and relatively narrow intervals of pelitic gneiss and mylonite (the A4 and A5 shears). Anomalous radioactivity was intersected in the A4 and A5 shears in association with stringers, disseminated, fracture, and foliation-controlled pitchblende mineralization. A total composite mineralization of 45.0 m including 1.45 m of off-scale radioactivity (>10,000 to >61,000 cps) was intersected within a 276.5 m section (662.0 to 938.5 m). In the A4 shear, 29.5 m of composite mineralization including 0.15 m of off-scale radioactivity was intersected. In the A5 shear, 15.5 m of composite mineralization including 1.3 m of off-scale radioactivity was intersected. The hole was terminated at 974 m.

AR-17-146c1

Hole AR-17-146c1 was a step-out hole collared from surface at an angled orientation (-70°) to the northwest (327° Azimuth). The hole was designed to test the southwest gap 50 m up-dip and northeast of AR-16-103. Directional drilling was initiated at 201 m. The A3 shear was intersected at an inclination of -62°. Basement lithologies were intersected beginning at 110.4 m which consisted largely of semi-pelitic gneiss to granofel and relatively narrow intervals of pelitic gneiss and mylonite (A3 and A4 shears). Athabasca Group sandstones were not intersected. Anomalous to strongly anomalous radioactivity was intersected in the A3 and A4 shears in association with stringers, disseminated, foliation, and fracture-controlled pitchblende mineralization. A total composite mineralization of 38.5 m including 0.5 m of off-scale radioactivity (>10,000 to 45,000 cps) was intersected within a 166.5 m section (630.5 to 797.0 m). In the A3 shear, 36.0 m of composite mineralization including 0.4 m of off-scale radioactivity was intersected. In the A4 shear, 1.0 m of composite mineralization including 0.1 m of off-scale radioactivity was intersected. An additional 1.5 m of composite mineralization was intersected in the A2 shear. The hole was terminated at 910.5 m.

AR-17-146c2

Hole AR-17-146c2 was a directional hole that departed pilot hole AR-17-146c1 at a depth of 331 m. This step-out hole was designed to test the southwest gap 50 m down-dip and northeast of AR-16-103. Directional drilling was initiated at 348 m. The A3 and A4 shears were both intersected at inclinations of -66°. Basement lithologies were intersected beginning at the top of the hole and consisted largely of semi-pelitic gneiss and relatively narrow intervals of pelitic gneiss and mylonite (the A3 and A4 shears). Anomalous to strongly anomalous radioactivity was intersected in the A3 and A4 shears in association with disseminated, fracture, and foliation-controlled pitchblende mineralization. A total composite mineralization of 36.0 m including 2.55 m of off-scale radioactivity (>10,000 to >61,000 cps) was intersected within a 121 m section (661.5 to 782.5 m). In the A3 shear, 28.0 m of composite mineralization including 2.5 m of off-scale radioactivity was intersected. In the A4 shear, 8.0 m of composite mineralization including 0.05 of off-scale radioactivity was intersected. The hole was terminated at 907.0 m.

AR-17-146c3

Hole AR-17-146c3 was a directional hole that departed hole AR-17-146c2 at a depth of 481 m. This step-out hole was designed to test the southwest gap 90 m down-dip and northeast of AR-16-103. Directional drilling was initiated at 496 m. The A3 and A4 shears were both intersected at inclinations of -69°. Basement lithologies were intersected beginning at the top of the hole and consisted largely of semi-pelitic gneiss and relatively narrow intervals of pelitic gneiss and mylonite (the A2 through A4 shears). Anomalous to strongly anomalous radioactivity was intersected in the A2 through the A4 shears in association with disseminated, fracture, and foliation-controlled pitchblende mineralization. A total composite mineralization of 55.0 m including 0.45 m of off-scale radioactivity (>10,000 to 15,000 cps) was intersected within a 287.5 m section (677.0 to 964.5 m). In the A2 shear, 3.5 m of composite mineralization was intersected. In the A3 shear, 44.0 m of composite mineralization including 0.45 m of off-scale radioactivity was intersected. In the A4 shear, 7.5 m of composite mineralization was intersected. The hole was terminated at 993.5 m.

AR-17-147c1

Hole AR-17-147c1 was a directional hole collared from surface at an angled orientation (-70°) to the northwest (327° azimuth). This infill hole was designed to test the A3 shear 30 m down-dip and northeast of AR-17-121c1. Directional drilling was initiated at 201 m. The A3 shear was intersected at an inclination of -65°. Strongly bleached Athabasca Group sandstone was intersected from 123.1 m to the unconformity at 133.9 m. Basement lithologies consisted largely of semi-pelitic gneiss to granofel and relatively narrow intervals of pelitic gneiss and mylonite (A3 and A4 shears). Anomalous to strongly anomalous radioactivity was intersected in the A3 and A4 shears in association with stringers, disseminated, fracture-controlled, foliation-controlled, and semi-massive pitchblende mineralization. A total composite mineralization of 46.0 m including 5.1 m of off-scale radioactivity (>10,000 to >61,000 cps) was intersected within a 153.0 m section (454.0 to 607.0 m). In the A3 shear, 41.0 m of composite mineralization was intersected including 4.3 m of off-scale radioactivity. In the A4 shear, 5.0 m of composite mineralization including 0.8 m of off-scale radioactivity was intersected. The hole was terminated at 621.5 m.

AR-17-147c2

Hole AR-17-147c2 was a directional hole that departed pilot hole AR-17-147c1 at a depth of 432 m. This infill hole was designed to test the A3 shear 25 m below AR-17-147c1. Directional drilling was initiated at 441 m. The A3 shear was intersected at an inclination of -69°. Basement lithologies were intersected beginning at the top of the hole and consisted largely of semi-pelitic gneiss and relatively narrow intervals of pelitic gneiss and mylonite (A3 and A4 shears). Anomalous to strongly anomalous radioactivity was intersected in the A3 and A4 shears in association with stringers, disseminated, fracture-controlled, and semi-massive pitchblende mineralization. A total composite mineralization of 26.5 m including 4.8 m of off-scale radioactivity (>10,000 to 58,000 cps) was intersected within a 176 m section (454.5 to 630.5 m). In the A3 shear, 25.0 m of composite mineralization including 4.6 m of off-scale radioactivity was intersected. In the A4 shear, 1.5 m of composite mineralization including 0.2 m of off-scale radioactivity was intersected. The hole was terminated at 660.5 m.

AR-17-147c3

Hole AR-17-147c3 was a directional hole that departed pilot hole AR-17-147c2 at a depth of 448 m. This infill hole was designed to test the A3 shear 25 m below AR-17-147c2. Directional drilling was initiated at 458 m. The A3 shear was intersected at an inclination of -73°. Basement lithologies were intersected beginning at the top of the hole and consisted largely of semi-pelitic gneiss and relatively narrow intervals of pelitic gneiss and mylonite (A3 and A4 shears). Anomalous to strongly anomalous radioactivity was intersected in the A3 and A4 shears in association with stringers, disseminated, fracture-controlled, foliation-controlled, and semi-massive pitchblende mineralization. A total composite mineralization of 86.5 m including 17.45 m of off-scale radioactivity (>10,000 to >61,000 cps) was intersected within a 202 m section (454.5 to 656.5 m). In the A3 shear, 79.5 m of composite mineralization including 17.35 m of off-scale radioactivity was intersected. In the A4 shear, 7.0 m of composite mineralization including 0.1 m of off-scale radioactivity was intersected. The hole was terminated at 682.5 m.

AR-17-147c4

Hole AR-17-147c4 was a directional hole that departed pilot hole AR-17-147c1 at a depth of 210 m. This infill hole was designed to test the A3 shear 25 m below AR-17-147c3. Directional drilling was initiated at 222 m. The A3 shear was intersected at an inclination of -72°. Basement lithologies were intersected beginning at the top of the hole and consisted largely of semi-pelitic gneiss and relatively narrow intervals of pelitic gneiss and mylonite (the A2 through A4 shears). Anomalous to strongly anomalous radioactivity was intersected in the A2 through A4 shears in association with stringers, disseminated, fracture-controlled, and foliation-controlled pitchblende mineralization. A total composite mineralization of 90.5 m including 5.7 m of off-scale radioactivity (>10,000 to >61,000 cps) was intersected within a 330.5 m section (522.5 to 853.0 m). In the A2 shear, 16.0 m of composite mineralization including 0.15 m of off-scale radioactivity was intersected. In the A3 shear, 67.5 m of composite mineralization including 5.45 m of off-scale radioactivity was intersected. In the A4 shear, 7.0 m of composite mineralization including 0.1 m of off-scale radioactivity was intersected. The hole was terminated at 870.5 m.