NexGen Returns 26.5 m at 20.27% U3O8 including 10.0 m at 51.40% U3O8 in Best Scissor Hole to Date at Arrow

VANCOUVER, Nov. 8, 2016 /CNW/ - NexGen Energy Ltd. ("NexGen" or the "Company") (TSX:NXE, OTCQX:NXGEF) is pleased to report assay results for 14 holes from our highly successful summer drilling program on our 100% owned, Rook I property, Athabasca Basin, Saskatchewan.

Assays continue to confirm that holes drilled at the Arrow Deposit are strongly mineralized both inside and outside the A2 High Grade Domain as well as in other shears at Arrow including the A1 (see Figure 1). Of key importance, scissor hole AR-16-98c2 returned 73.5 m at 7.59% U3O8 including 26.5 m at 20.27% U3O8 and 10.0 m at 51.40% U3O8 both inside and outside the A2 High Grade Domain. This represents a continuous grade x thickness ("GT" in U3O8 x meters) of 558 which is the best interval drilled in any scissor hole (azimuth from southeast to northwest) at Arrow to date. Additionally, hole AR-16-96c2 returned 57.5 m at 4.17% U3O8 including 10.0 m at 15.73% U3O8 which was also intersected inside and outside of the A2 High Grade Domain.

In the A1 shear, hole AR-16-98c1 returned 21.0 m at 4.17% U3O8 including 5.0 m at 10.97% U3O8. The mineralized domains in the A1 shear remain largely undrilled over a strike length of at least 360 m. This represents a priority area for potential future resource growth.

In addition, the first assay results from the area between the Arrow Deposit grade shells, and the mineralized area 180 m to the southwest, have shown that strong, broad uranium concentrations are present. In this area, hole AR-16-97 returned 18.0 m at 2.64% U3O8 including 6.0 m at 5.89% U3O8. Mineralization extends from the Arrow Deposit 43-101 Inferred Mineral Resource to the southwest for at least 240 m where it remains open in all directions.

Highlights:

A2 Sub-Zone

• Scissor hole AR-16-98c2 (70 m up-dip from AR-15-44b) intersected 73.5 m at 7.59% U3O8 (454.0 to 527.5 m) including 55.0 m at 10.12% U3O8 (471.0 to 526.0 m), 26.5 m at 20.27% U3O8 (501.0 to 527.7 m) and 10.0 m at 51.40% U3O8 (502.0 to 512.0 m).
  
  
• Hole AR-16-96c2 (75 m down-dip and northeast from AR-15-44b) intersected 57.5 m at 4.17% U3O8 (551.5 to 609.0 m) including 10.0 m at 15.73% U3O8 (591.0 to 601.0 m).

A1 Shear

• Scissor hole AR-16-98c1 (16 m southwest from AR-16-84c1) intersected 21.0 m at 4.17% U3O8 (666.0 to 687.0 m) including 5.0 m at 10.97% U3O8 (678.0 to 683.0 m).

Southwest Arrow

• Hole AR-16-97 (145 m down-dip and northeast from AR-16-90c3) intersected 18.0 m at 2.64% U3O8 (750.5 to 768.5 m) including 6.0 m at 5.89% U3O8 (753.0 to 759.0 m).

Table 1: Higher Grade A2 Sub-Zone Drill Hole Comparison

Arrow, Activities & Financial

• The summer 2016 drilling program is nearing completion and the winter program will commence early 2017.
  
  
• The Company has cash on hand of approximately $75 million.

A three-dimensional view of the A2 High Grade Domain, long sections of the A1 and A2 shears, a schematic long section of the Arrow gap, and a plan map are shown in Figures 1 to 5. Table 2 shows complete assay results.

Garrett Ainsworth, Vice-President, Exploration and Development, commented: "These latest drill assay results confirm and surpass expectations from previously released radioactivity results, and show significant high grade uranium intervals inside and outside of the maiden inferred resource modelled grade shell domains.  Drill hole AR-16-98c2 has returned the highest GT to date for a scissor hole, and has contributed to increased confidence of the A2 High Grade Domain contacts, while also demonstrating the sub-vertical nature of mineralization at Arrow.

Leigh Curyer, Chief Executive Officer, commented: "These multiple strong assays from the A2 High Grade Domain, the A1 shear, as well as the extension area southwest of Arrow to the 180 m Area, highlights significant drilling is required at Arrow before the true extent of mineralization can be determined.  Planning for winter 2017 is already well underway and will commence prior to the release of an updated resource estimate in H1 2017."

Composite parameters:

• Minimum thickness 0.5 m downhole
• Cutoff grade 0.01% U3O8
• Maximum internal dilution 2.00 m downhole
• U3O8 analyzed by ICP-OES at SRC Laboratories, Saskatoon, Saskatchewan
• All depths and intervals are meters downhole, true thicknesses are yet to be determined

Split core samples were taken systematically, and intervals were submitted to SRC Geoanalytical Laboratories (an SCC ISO/IEC 17025: 2005 Accredited Facility) of Saskatoon for analysis. All samples were analyzed using ICP-MS for trace elements on partial and total digestions, ICP-OES for major and minor elements on a total digestion, and fusion solution of boron by ICP-OES. Mineralized samples were analyzed for U3O8 by ICP-OES and selected samples for gold by fire assay.

All assay batches reported herein are subjected to and have passed rigorous internal QA/QC protocols that include, but are not limited to, the blind  insertion of standard reference materials, blank materials and field duplicates into the sample stream at both random and systematic intervals.

Technical Information

All scientific and technical information in this news release has been prepared by or reviewed and approved by Mr. Garrett Ainsworth, P.Geo., Vice President – Exploration & Development for NexGen. Mr. Ainsworth is a qualified person for the purposes of National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"), and has verified the sampling, analytical, and test data underlying the information or opinions contained herein by reviewing original data certificates and monitoring all of the data collection protocols.

For details of the Rook I Project including the quality assurance program and quality control measures applied and key assumptions, parameters and methods used to estimate the mineral resource set forth above please refer to the technical report entitled "Technical Report on the Rook 1 Property, Saskatchewan, Canada" dated effective April 13, 2016 (the "Rook 1 Technical Report") prepared by Mark B. Mathisen and David Ross, each of whom is a "qualified person" under NI 43-101. The Rook I Technical Report is available for review under the Company's profile on SEDAR at www.sedar.com.

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 uranium industry professionals with a successful track record in the discovery of uranium deposits and in developing projects through discovery to production.

NexGen owns a portfolio of highly prospective uranium exploration assets in the Athabasca Basin, Saskatchewan, Canada, including a 100% interest in Rook I, location of the Arrow Discovery in February 2014 and Bow Discovery in March 2015. The Arrow Deposit's maiden Inferred mineral resource estimate is 201.9 M lbs U3O8 contained in 3.48 M tonnes grading 2.63% U3O8.

This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation.  "Forward-looking information" includes, but is not limited to, statements with respect to the activities, events or developments that the Company expects or anticipates will or may occur in the future, including, without limitation, the proposed use of proceeds and planned exploration activities. Generally, but not always, forward-looking information and statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or the negative connotation thereof or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative connation thereof.

Such forward-looking information and statements are based on numerous assumptions, including among others, that the results of planned exploration activities are as anticipated, the price of uranium, the anticipated cost of planned exploration activities, that general business and economic conditions will not change in a material adverse manner, that financing will be available if and when needed and on reasonable terms, and 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 or making forward-looking statements are considered reasonable by management at the time, there can be no assurance that such assumptions will prove to be accurate.

Forward-looking information and statements also involve 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 or statements, including, among others: negative operating cash flow and dependence on third party financing, uncertainty of additional financing, no known mineral reserves or resources, pending assay results may not be consistent with preliminary results, discretion in the use of proceeds, alternative sources of energy, aboriginal title and consultation issues, reliance on key management and other personnel, potential downturns in economic conditions, actual results of exploration activities being different than anticipated, changes in exploration programs based upon results, 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.

Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information or implied by forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking statements or information.  The Company 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.

SOURCE NexGen Energy Ltd.