NexGen More Than Doubles Mineralized Strike Length From 215 to 470 Meters at the Arrow Discovery


July 7, 2014

NexGen Energy Ltd. (TSX-V: NXE) ("NexGen" or the "Company") is pleased to announce initial results from the summer 2014 drilling program from the 100% owned portion of the Rook I property, Athabasca Basin, Saskatchewan.

Highlights:
  • Increased mineralized strike length of the Arrow Discovery from 215 m at the end of the winter 2014 drill program to presently 470 m and remains open in all directions.
  • RK-14-37 intersected 78.05 m total composite mineralization including 8.1 m off-scale radioactivity (>10,000 cps) within a 227.8 m section (378.0 to 605.8 m).
  • RK-14-31 intersected 125.8 m total composite mineralization including 0.6 m off-scale radioactivity (>10,000 cps) within a 430.7 m section (221.4 to 652.1 m).
  • All six initial drill holes from the summer 2014 program at the Arrow Discovery have intersected visible uranium mineralization.
  • Strong dravite clay alteration halo identified more than 200 m away from known uranium mineralization, which indicates robust strength of mineralizing system at Arrow.
During the summer program to date, a total of 4,324.2 m have been drilled at Arrow in six holes, as of June 29, 2014 (Fig 1, Tables 1 and 2). Five drill holes have been completed (RK-14-31, -34, -35, -37, and -39), one was abandoned at depth (RK-14-32), and one is in progress (AR-14-15). Visible uranium mineralization observed as discrete flecks, blebs, veins and semi-massive accumulations continues in all holes drilled to date at Arrow, and the latest drilling indicates that the favourable host unit, graphitic mylonite, appears to broaden along strike at drill hole RK-14-37. Five of the six holes at Arrow were down hole gamma probed (holes RK-14-31, -34, -35, -37, and -39; Figs 2-6), as RK-14-32 was lost before target depth was reached and probing was not possible. Core from all holes has been examined by detailed spectrometer, and results are presented in Tables 3-8.

An additional 1,349.2 m of drilling in 4 holes have been completed on regional targets on the Rook I property, which is also reported in this news release.

Garrett Ainsworth, NexGen's Vice-President, Exploration and Development, commented "The significant extension of mineralized strike length to 470 m, and continuity of uranium mineralization at Arrow validates NexGen's exploration strategy of drilling to confirm the strike and dip extent of this newly discovered uranium zone. The appearance of thicker intervals of mineralized graphitic pelite and mylonite from this latest batch of drill results is extremely encouraging."

Leigh Curyer, CEO commented, "The Arrow Discovery is developing into a significant find based on all 14 drill holes hitting mineralization, and it is apparent that there is much left to be delineated in all directions. My hat goes off to the technical team in the field for their efficient and successful results. Our initial drilling at Arrow has identified potentially high impact drill targets that will be tested shortly."

ARROW DISCOVERY DRILLING

Hole RK-14-31 was drilled to infill the mineralized area between holes RK-14-29 and -30. Hole -31 intersected dominantly semipelitic gneiss with intervals of graphitic pelitic gneiss and mylonite. Occasional pegmatite injections were observed throughout the semipelitic gneiss, graphitic pelitic gneiss and mylonite units. Strong visible mineralization occurs as flecks, blebs, clots, and veins of pitchblende. Weak to strong clay, chlorite, and hematite alteration were observed variably within and haloing the mineralization. Thirty-three discrete radiometrically anomalous zones totaling 125.8 m were intersected including 0.60 m off-scale (>10,000 cps). The hand-held spectrometer (RS-125) results in Table 3.

Hole RK-14-32 was drilled to intersect the down-dip mineralized zone below hole RK-14-30. The hole was abandoned due to drilling problems at 659.2 m, which was before the down-dip mineralized zone targeted. Semipelitic gneiss was the dominate unit in hole -32, as the favourable graphitic mylonite unit was not reached. However, three radiometrically anomalous zones totaling 3.45 m were intersected. Due to technical difficulties this hole was not probed. Hand-held spectrometer results from the drill core recovered are shown in Table 4.

Hole RK-14-34 was drilled to infill the mineralized area between holes RK-14-30 and -31. Hole -34 intersected dominantly semipelitic gneiss with intervals of graphitic pelitic gneiss and mylonite; all intruded by minor pegmatite. Strong mineralization and alteration features were similar to hole -31. Twenty-five discrete radiometrically anomalous zones totaling 100.2 m were intersected including 0.70 m off-scale (>10,000 cps). The hand-held spectrometer results in Table 5.

Hole RK-14-35 was a 205 m step out to the southwest along strike from hole RK-14-30, and 470 m from hole RK-14-24. Hole -35 intersected dominantly semipelitic gneiss with intervals of graphitic pelitic gneiss and mylonite; all intruded by minor pegmatite. Strong mineralization and alteration features were similar to hole -31. Five discrete radiometrically anomalous zones totaling 6.17 m were intersected including 0.30 m off-scale (>10,000 cps). The hand-held spectrometer results in Table 6.

Hole RK-14-37 was drilled to infill the mineralized area between holes RK-14-30 and -35. Hole -37 intersected dominantly semipelitic gneiss with wide intervals of graphitic pelitic gneiss and mylonite; all intruded by minor pegmatite. Strong visible mineralization occurs as flecks, blebs, clots, veins, and semi-massive intervals of pitchblende. Wormhole style mineralization was observed, which has been described from reported mineralization at Patterson Lake South (PLS) and Roughrider. Moderate to strong clay, chlorite, and hematite alteration were observed throughout the mineralization. Seventeen discrete radiometrically anomalous zones totaling 78.05 m were intersected including 8.10 m off-scale (>10,000 cps). The hand-held spectrometer results in Table 7. Pitchblende mineralization from hole -37 is shown in Figs 2-3.

Hole RK-14-39 was drilled from the same collar as hole -35 at a shallower angle to intersect shallower mineralization. Hole -39 intersected dominantly semipelitic gneiss with intervals of graphitic pelitic gneiss and mylonite; all intruded by minor pegmatite. Strong mineralization and alteration features were similar to hole -31. Two discrete radiometrically anomalous zones were intersected totaling 1.60m, including 0.35 m off-scale (>10,000 cps). The hand-held spectrometer results in Table 8.

Drill hole numbering at Arrow has been altered after completion of RK-14-39. All 14 holes that have been drilled at Arrow have been mineralized to date giving rise to a significant mineralized zone, and the hole numbering system has now been changed, where the next hole (currently in progress) becomes AR-14-15. This system will continue to avoid future confusion. Other Rook prospects will continue to be designated as RK-14-xx until warranting their own individual numbering system. Hole AR-14-15 has been planned as a "scissor" hole to holes RK-14-28, -30, -32 to further investigate the structural controls of mineralization at Arrow.

REGIONAL DRILLING

Regional exploration continued investigating outlying prospects at Dagger (hole RK-14-33; total 413.2 m) and Area B (holes RK-14-36, -38, and -40; total 936.0 m).

Drill hole RK-14-33 intersected a semipelitic gneiss hanging wall above a promising sequence of pelitic gneiss with weak to moderate graphitic intervals that is intercalated with minor units of diorite, quartzite, and semipelitic gneiss. Intermittent weak to moderate clay, hematite, and chlorite alteration was observed throughout, however, no anomalous radioactivity was detected.

Drill holes RK-14-36 and -38 did not intersect the targeted conductors or anomalous radioactivity, however, hole -38 encountered a Devonian sandstone unit, which is often spatially associated with mineralization at PLS. Discrete dravitic clays were observed through the basement rocks in hole -38. Drill hole RK-14-40 intersected a strong conductor observed as weak to strong accumulations of graphite in pelitic gneiss from 83.5 to 103.6 m. Weak to strong hematite and chlorite alteration persisted throughout the basement rocks in hole -40, however, no anomalous radioactivity was detected.

Preparations have been made for regional drilling to continue at Area K (Dennis Lake).


Figure 1: Arrow, drill hole locations (gravity background)


Table 1: Summer 2014 Drill holes, Arrow prospect, Rook 1
77 NXE table 1

Table 2: Radioactively anomalous* zones in RK-14-31, -32, -34, -35, -37, & -39
77 NXE table 2

Parameters:
  • All depths and intervals are meters downhole
  • * "Anomalous" means min 5 cm at >500 cps (counts per second) total count gamma readings by gamma spectrometer type RS-125 at 0.25 cm minimum thickness
  • # "Off-scale" means >10,000 cps (counts per second) total count gamma readings by gamma spectrometer type RS-125
  • Where "Min cps" is <500 cps, this refers to local low radiometric zones within the overall radioactive anomalous interval
  • Probe results from the 2GHF-1000 and 2PGA-1000 probes are not directly comparable (different scales are used)

Figure 2: Arrow: pitchblende mineralization within graphitic & dravitic shear in RK-14-37, 522-525 m downhole



Figure 3: Arrow: pitchblende mineralization within graphitic shear in RK-14-37, 570-573 m downhole


Table 3: Arrow RK-14-31 core spectrometer results


Table 4: Arrow RK-14-32 core spectrometer results


Table 5: Arrow RK-14-34 core spectrometer results


Table 6: Arrow RK-14-35 core spectrometer results


Table 7: Arrow RK-14-37 core spectrometer results


Table 8: Arrow RK-14-39 core spectrometer results


Parameters:
  • Minimum thickness 0.25m downhole
  • Maximum internal dilution 2.00 m downhole
  • All depths and intervals are metres downhole
  • * "Anomalous" means min 5 cm at >500 cps (counts per second) total count gamma readings by gamma spectrometer type RS-125 at 0.25 cm minimum thickness
  • # "Off-scale" means >10,000 cps (counts per second) total count gamma readings by gamma spectrometer type RS-125
  • Where "Min cps" is <500 cps, this refers to local low radiometric zones within the overall radioactive interval
  • Probe results from the Mt. Sopris 2GHF-1000 and 2PGA-1000 probes are not directly comparable (different scales are used)
Natural gamma radiation in drill core reported in this news release was measured in counts per second (cps) using a Radiation Solutions Inc. RS-125 gamma-ray spectrometer, a Mt. Sopris 2GHF-1000 triple natural gamma probe, and a Mt. Sopris 2PGA-1000 natural gamma probe. The reader is cautioned that total count gamma readings may not be directly or uniformly related to uranium grades of the rock sample measured; they should be used only as a preliminary indication of the presence of radioactive minerals. All intersections are downhole. Core interval measurements and true thicknesses are yet to be determined

About NexGen

NexGen is a British Columbia corporation with a focus on the acquisition, exploration and development of Canadian uranium projects. NexGen has a highly experienced team of exploration professionals with a track record in the discovery of unconformity-style uranium deposits in Canada.

NexGen owns a portfolio of highly prospective uranium exploration assets in the Athabasca Basin, Saskatchewan, Canada, including a 100% interest in Rook 1, location of the Arrow Discovery, immediately adjacent to the northeast of the Fission/Alpha Patterson Lake South Discovery, and an option to earn a 70% interest in the Radio Project, immediately adjacent to Rio Tinto's Roughrider Deposit.

The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43- 101 and reviewed on behalf of Nexgen Energy Ltd., by Garrett Ainsworth, P.Geo., Vice President -- Exploration & Development, a qualified person.

Leigh Curyer, Chief Executive Officer
NexGen Energy Ltd.

+1 604 428 4112
lcuryer@nexgenenergy.ca
www.nexgenenergy.ca

For further information, please contact:

Kin Communications?
Tel: 604 684 6730?
Toll free: 1 866 684 6730?
Email: NXE@kincommunications.com
Website: http://www.nexgenenergy.ca

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Forward-Looking Information

This news release contains "forward-looking information" within the meaning of applicable Canadian securities laws. Generally, but not always, forward looking information is identifiable by the use of words such as "will" and planned" and similar expressions. Forward-looking information is based on the then current expectations, beliefs, assumptions, estimates and forecasts about the Company's business and the industry and markets in which it operates. Such information is not a guarantee of future performance and undue reliance should not be placed on forward-looking information. Assumptions and factors underlying the Company's expectations regarding forward-looking information contained herein include, among others: that general business and economic conditions will not change in a material adverse manner; that financing will be available if and when needed on reasonable terms; that the Company's current exploration activities can be achieved and that its other corporate activities will proceed as expected; that third party contractors, equipment and supplies and governmental and other approvals required to conduct the Company's planned exploration activities will be available on reasonable terms and in a timely manner.

Although the assumptions made by the Company in providing forward looking information are considered reasonable by management at the time the forward-looking information is given, there can be no assurance that such assumptions will prove to be accurate. Forward-looking information also involves known and unknown risks and uncertainties and other factors, which may cause actual events or results in future periods to differ materially from any projections of future events or results expressed or implied by such forward-looking information, including, among others: risks related to the availability of financing on commercially reasonable terms and the expected use of the proceeds; changes in the market; potential downturns in economic conditions; industry conditions; actual results of exploration activities being different than anticipated; changes in exploration programs based upon results of exploration; future prices of metal; availability of third party contractors; availability of equipment and supplies; failure of equipment to operate as anticipated; accidents, effects of weather and other natural phenomena and other risks associated with the mineral exploration industry; environmental risks; changes in laws and regulations; community relations; and delays in obtaining governmental or other approvals or financing. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated, estimated or intended. NexGen undertakes no obligation to update or reissue forward-looking information as a result of new information or events except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking information.