Etango Strategic Financing with Leading Global Integrated Nuclear Utility, CNNC

Bannerman Energy Ltd has executed binding investment and joint venture documentation with CNNC Overseas Limited (CNOL), a subsidiary of China National Nuclear Corporation, for the strategic funding and development of its world-class Etango Uranium Project in Namibia. The transaction involves CNOL investing up to US$321.5 million for a 45% interest in Bannerman's UK subsidiary, which owns 95% of the Etango Project, resulting in effective project ownership of 52.25% Bannerman and 42.75% CNOL.

The financing structure enables debt-free construction of the Etango mine, which management believes maximizes flexibility and significantly reduces construction and ramp-up risks compared to traditional debt financing approaches. Under the arrangement, CNOL will purchase 60% of Etango's uranium production under market-based pricing terms, providing a cornerstone offtake agreement with a Tier-1 customer while preserving Bannerman's exposure to uranium price upside through the remaining 40% of production that will be independently marketed.

The partnership with CNNC brings significant strategic value beyond financing, as CNNC is one of the world's largest uranium consumers with 18 nuclear reactor units under construction or approved. CNNC's existing Namibian operations, including ownership of the Rössing Mine (68.62%) and Langer Heinrich (25%), provide relevant local experience and operational expertise that could deliver technical and economic efficiencies during Etango's construction and operation phases.

Transaction completion is targeted for mid-2026, subject to key conditions including Chinese government approvals, CNUC shareholder approval, and Namibian Competition Commission clearance. The company plans to continue early works programs through H1 2026, with Final Investment Decision expected promptly after transaction completion. This agreement positions Etango as the next major greenfield uranium project globally to enter production, representing the culmination of Bannerman's two-year financing process and removing the final key development hurdle.