Mr. David Cates reports

DENISON REPORTS HIGHLIGHTS FROM WINTER DRILLING ON EASTERN ATHABASCA BASIN EXPLORATION PIPELINE PROJECTS

Denison Mines Corp. has completed the winter 2016 drilling programs on its high-priority exploration pipeline projects, highlighted by the intersection of uranium mineralization and favourable geological settings on several properties.

Apart from Denison's flagship Wheeler River project, the company has an extensive portfolio of uranium exploration projects located in the infrastructure-rich eastern Athabasca basin, covering over 340,000 hectares of ground. The projects are at various stages of exploration and provide a long-term pipeline of potential resource growth opportunities. During the winter 2016 programs, approximately 9,300 metres of diamond drilling were completed in 23 holes on Denison-operated properties -- including Murphy Lake (3,695 metres, 10 holes), Crawford Lake (1,104 metres, two holes), Bell Lake (2,382 metres, four holes), Torwalt Lake (612 metres, two holes), Marten Lake (1,021 metres, four holes) and Moon Lake South (516 metres, one hole). Geophysical surveys are still under way on several properties as planning continues for the development of the summer drilling programs.

Denison's vice-president, exploration, Dale Verran, commented: "While much attention has been given to the results at Wheeler River this winter, we are highly encouraged by the winter results from our high-priority pipeline projects in the eastern Athabasca. Further intersections of mineralization and alteration at Murphy Lake continue to suggest we are dealing with a sizable mineralizing system with deposit potential along strike. At Crawford Lake and Moon Lake South, reconnaissance drilling on the largely untested CR-3 trend yielded exciting mineralized results suggesting potential for future discovery in both the basement rocks and at the unconformity. These results, in addition to those from Marten and Bell Lake, reiterate the potential of Denison's pipeline projects and the team's sound exploration approach."

An additional 8,100 metres of diamond drilling were completed in 31 holes on two non-Denison-operated properties. At Mann Lake, operated by Cameco Corp., a total of 2,800 metres of diamond drilling were completed in four holes. At Wolly, operated by AREVA Resources Canada Inc., a total of 5,300 metres of diamond drilling were completed in 27 holes.

Murphy Lake: mineralized trend extended

Murphy Lake continues to be one of Denison's highest-priority exploration projects. The project is located approximately 30 kilometres from the McClean Lake mill and adjacent to the company's Waterbury Lake project in the northern portion of the eastern Athabasca basin. During the winter 2016 season, Denison completed a diamond drilling program, as well as ground gravity and DC-IP resistivity surveys on the Murphy Lake project (68.8 per cent Denison, 31.2 per cent Eros Resources Corp.). Approximately 3,700 metres were drilled over 10 drill holes during the program. The majority of the drilling was designed to test targets identified along strike and on section of MP-15-03 (a 2015 drill hole which intersected 0.25 per cent triuranium octoxide over six metres in strongly altered sandstones, immediately above the unconformity). Drilling confirmed the continuity of the intense hydrothermal sandstone alteration system, identified in 2015, over a strike length of 850 metres. Weak uranium mineralization was intersected in the sandstone associated with intense hematite and clay alteration in three drill holes: MP-16-08, MP-16-11 and MP-16-17. Drill hole MP-16-08, drilled on section with MP-15-03, identified uranium mineralization associated with a parallel graphitic fault zone approximately 70 metres to the south. Drill holes MP-16-11 and MP-16-17 were both drilled along strike to the west of drill hole MP-15-03 at 200 metres and 100 metres, respectively. The table provides the highlights from drilling on the property to date.

                        MURPHY LAKE 2016 DRILL RESULTS

Drill hole                     From           To         Length(4)      U3O8 
                                 (m)          (m)            (m)          (%)

MP-15-03(2,5)                 270.0        276.0            6.0         0.25
MP-16-08(1)                  275.65       278.55            2.9         0.19(1)
MP-16-11(2)                   267.5        282.0           14.5         0.13
includes(2)                   271.0        272.0            1.0         0.46
and(2)                        277.5        278.0            0.5         0.49
MP-16-17(3)                   259.0        275.0           16.0         0.04
includes(3)                   262.5        263.0            0.5         0.12
and(3)                        268.0        268.5            0.5         0.13

(1) Significant core loss. Result reported as radiometric equivalent uranium
(eU3O8) from a calibrated total gamma downhole probe and composited above a 
cut-off grade of 0.05 per cent eU3O8.
(2) Intersection interval is composited above a cut-off grade of 0.05 per 
cent U3O8.
(3) A cut-off grade has not been applied.
(4) As the drill holes dip steeply to the south and the unconformity 
mineralization is expected to be flat lying, the true thickness of the
mineralization is expected to be approximately 90 per cent of the 
intersection lengths.
(5) Results reported previously in the company's press release dated Oct. 
22, 2015.

An additional 2.2 kilometres of interpreted strike length remain entirely untested both to the east and west of the mineralized zone noted above. Within the current DC-IP resistivity coverage, which extends 0.8 kilometre east and 1.4 kilometres west of the mineralized zone, several priority targets have been identified for drill testing. The ground gravity survey has produced gravity-low targets, in some cases coincident with DC-IP resistivity targets, and has delineated potential areas of unconformity offset to the north of the mineralized zone, which constitutes a further target area.

Crawford Lake and Moon Lake South: mineralization discovered on CR-3 conductive trend

At the Crawford Lake property (100 per cent Denison owned), a two-hole program was designed to test targets on the CR-5 and CR-3 conductive trends, respectively. Previous drilling on the CR-3 conductive trend included one historic hole and one hole drilled by Denison in 2015 (CR-15-24), which intersected strong basement alteration and structure associated with graphite-bearing pelitic gneisses. During the winter 2016 drilling program, drill hole CR-16-26, located approximately 800 metres to the northeast of CR-15-24, extended the strike of the graphite-bearing pelitic gneisses and confirmed further strong basement alteration and structure with associated elevated uranium pathfinder elements.

In January, 2016, Denison entered into an earn-in option agreement with CanAlaska Uranium Ltd. on the Moon Lake property, which is contiguous with Crawford Lake and covers the northeasterly extent of the CR-3 conductive trend. A single drill hole was completed during the winter 2016 program which was designed to test the CR-3 conductive trend on Moon Lake South, immediately north of the southern property boundary with Crawford Lake. The drill hole, MS-16-01, intersected 0.102 per cent triuranium octoxide over 0.5 metre at the unconformity and anomalous uranium in the overlying sandstone. This hole is located approximately 1.5 kilometres northeast from CR-16-26. The Moon Lake South option agreement allows for Denison to acquire an initial 51-per-cent interest in claim S-107558 by completing exploration expenditures of $200,000 and allows for Denison to increase its interest to 75 per cent for a further $500,000. The option agreement includes provisions for the formation of a joint venture and a 2-per-cent net-smelter-return royalty, which will be automatically granted if either party's interest is diluted to below 10 per cent. The NSR royalty may be purchased by the non-diluting party for $500,000.

The drilling results obtained during the winter 2016 drilling program, including extensive basement alteration and structure on Crawford Lake, and uranium mineralization at the unconformity on Moon Lake South, have confirmed the CR-3 conductive trend to be highly prospective. Further drilling is warranted to evaluate this trend for unconformity and basement-hosted uranium mineralization.

Other property highlights

Marten Lake (50 per cent Denison, 50 per cent JOGMEC)

Three of the four holes completed during the winter program, testing DC-IP resistivity targets along a northeast-southwest trend, intersected significant structure and alteration. The westernmost hole encountered a significant reverse fault zone at the sub-Athabasca unconformity with 96 metres of a vertical offset, and associated brecciation and alteration. These features attest to a favourable geological setting for unconformity-related uranium mineralization and suggest follow-up exploration is warranted along this fault zone. Follow-up plans will be finalized upon receipt and interpretation of the geochemical assay and clay alteration data.

Bell Lake -- north (100 per cent Denison)

Of the four drill holes completed during the winter program, two intersected favourable sandstone structure and alteration and one intersected significant structure in the basement. Elevated radioactivity was intersected at or immediately above the sub-Athabasca unconformity in all four drill holes. Drilling was reconnaissance in nature and focused on testing ground electromagnetic targets on widely spaced survey lines. These results, obtained in a new target area with no previous drilling, meet several of the important exploration criteria for unconformity-related uranium mineralization. Interpretation of the results is continuing, and follow-up work will be assessed once geochemical assay and clay alteration data have been received and interpreted.

Mann Lake (30 per cent Denison, 52.5 per cent Cameco and operator, 17.5 per cent AREVA)

During 2014 and 2015, a significant zone of unconformity mineralization was discovered by Cameco along the granite contact fault over a 600-metre strike length, highlighted by 6.7 per cent U3O8 over 3.9 metres in drill hole MN-066-01 (see company press release dated Feb. 4, 2015). The winter 2016 drilling program was focused on testing the underexplored southern extent of the GC fault, which is interpreted to extend approximately 2.4 kilometres to the southern property boundary away from the mineralized zone. Two holes were completed at 1.2 kilometres and 2.1 kilometres, respectively, to the south of the existing zone of mineralization and aimed at the extension of the GC fault. The southernmost hole intersected a significant zone of structural disruption and alteration in the sandstone, and indicated an 80-metre vertical offset of the sub-Athabasca unconformity. A follow-up hole, collared approximately 100 metres to the east on section, intersected encouraging sandstone and up-thrown basement rocks, including quartzite and structured, graphite-rich pelitic gneisses. The results suggest the optimal unconformity target may be located farther to the west, between the two holes completed on the section.

Assay methods and lab

Denison reports its initial exploration results as radiometric equivalent uranium (eU3O8) from a calibrated, total-gamma, downhole probe. Where core recovery permits, all mineralized intersections are sampled and submitted for chemical U3O8 assay at the Saskatchewan Research Council (SRC) geoanalytical laboratories using an ISO/IEC 17025:2005-accredited method for the determination of U3O8 weight percentage. Sample preparation involves crushing and pulverizing of split-core samples to 90 per cent passing minus-106 microns. The resultant pulp is digested using aqua regia and the solution analyzed for U3O8 using ICP-OES.

Qualified person

The disclosure of a scientific or technical nature contained in this news release was prepared by Dale Verran, MSc, PrSciNat, Denison's vice-president, exploration, who is a qualified person in accordance with the requirements of National Instrument 43-101. For a more detailed description of the assay procedures, and the quality assurance program and quality control measures applied by Denison, please see Denison's annual information form dated March 24, 2016, filed under the company's profile on SEDAR.

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